CPI(M) rejects changes

EGOM POLICY ON SEZS

Rejecting the changes suggested by the empowered Group of Ministers in the Special Economic Zones (SEZs) policy, the CPI(M) central leadership indicated today that the Left-ruled states would not go ahead with these zones yet.

The Left party will consult the respective governments in West Bengal, Kerala and Tripura on the EGoM's suggestions and then hold discussions with the UPA government before these three states take a final view on SEZs.

The Left party is particularly unhappy about the refusal to remove tax incentives. It is against allowing the corporate sector to purchase land directly from farmers. It is also not satisfied with the EGoM's suggestions on minimum and maximum ceiling for a multi-product SEZ.

"These changes are not enough. They have not addressed our main concerns," CPI(M) general secretary Prakash Karat told Business Standard.

Asked if the Left-ruled states could go ahead with SEZs after incorporating the EGoM's suggestions, Karat said, "The issue of tax concessions is not something the states can decide. As for other changes, we will have to see. This (changes) came only yesterday. We will discuss (with Left-ruled states) and then take a decision. We will also have to discuss it in Parliament."

"If the government proceeds with the SEZs in the present form, the matter will have to be taken up in Parliament so that the demand for amendments to the SEZ Act and Rules can be dealt with there," CPI(M) Politburo said in a statement.

"The iniquitous tax bonanza was one of the basic problems with the SEZ Act and Rules. Without revising these tax concessions, the SEZ concept will not find acceptance," said the statement.

"The EGoM has also not looked at the proliferation of SEZs. There is an urgent need to review the type of industries to be set up there and apply sector-wise caps on SEZs," said the Politburo.

Moreover, the allowance of maximum of 5,000 hectares for multi-product SEZs is "uncalled for". The minimum size of 1,000 hectares for the multi-product SEZs has also not been lowered.

The CPI (M) is of the firm view that a multi-product SEZ should have a minimum size of only 400 hectares and there should be a ceiling of 2000 hectares.

The CPI (M) does not agree with state governments not being involved in acquisition of land, particularly for those of a larger size. "Allowing corporates to buy large tracts of land for SEZs will put small farmers, tenants and agricultural workers at the mercy of land sharks. Moreover, private entities would be able to own, rather than lease, thousands of acres of land subverting the Land Ceiling as well as Town Planning laws," said the Politburo.

The CPI(M) said that the government should await the recommendations of the Standing Committee on Commerce and re-examine the whole matter rather than taking piecemeal decisions on SEZs.

In Kolkata, veteran CPI(M) leader Jyoti Basu said West Bengal may have some problems in setting up SEZs following the Centre's latest guidelines that states should not go for compulsory land acquisition and limiting them to 5,000 hectares, "We have got the report. We will have some problems. I cannot say anything now," Basu said.

Basu was speaking after a meeting of the party's state secretariat which discussed the Centre's decision.

The CPI(M) patriarch said the feasibility of the Centre's guidelines would be discussed at the Front meeting tomorrow.

On the fate of Indonesian Salim Group's chemical SEZ in West Bengal, he said, "It would be slightly delayed."

"We have already decided to campaign on the need for industrialisation for three months. Some misinformed people are now convinced," he added.

Besides Basu, Chief Minister Buddhadeb Bhattacherjee and CPI(M) state secretary Biman Bose were present at the meeting.