CPI demands panel on SEZs

The CPI has demanded from the government to set up a high-level commission to examine the entire concept of the Special Economic Zones (SEZ) in terms of issues like tax exemptions, land acquisition and implementation of labour laws.

In a resolution passed by the CPI national executive, which concluded its two-day meeting here on Tuesday, the Left party said that there should be an "immediate halt" to SEZs.

A high-level commission should be set up to examine the issues involved and to ensure that rights and interests of the affected people, especially farmers, are protected.

"Suitable amendments to the Land Acquisition Act be recommended and the whole concept of the SEZ Act be reexamined," said the resolution.

Addressing a press conference today, CPI General Secretary AB Bardhan said that he along with former Prime Minister VP Singh had submitted a memorandum to President APJ Abdul Kalam on Tuesday urging him to halt the process of SEZ until a high-powered committee examines it.

The resolution said that about 1,34,000 hectares of land had been acquired for 67 SEZs. "There are ominous reports that the government has lifted the cap of 300 on creating such SEZs and is going in for unlimited numbers," it said.

The party said that agricultural land being offered for SEZs was many times more than what was required for the actual undertaking. Employment generation from SEZs will be only a fraction of those who are displaced from their livelihood.

The party cited the IMF Chief Economist as saying that the loss of revenue to the public exchequer due to various exemptions to SEZs would amount to Rs 1,75,000 crore.

"This will in turn inevitably lead to cuts in budgetary provisions, which benefit the poor. This is an incredible example of ensuring super profit for corporate houses at the cost of public exchequer, farmers and the poor," said the CPI adding it objected to non-implementation of labour law in SEZs.