He said as land is a state subject under the constitution, the commerce ministry has written to state governments they should not get into land acquisition for private players.
Nath added that he totally agreed with Gandhi that no good farm land should be diverted for industrial purposes. "Wherever possible, SEZs should come up only on wasteland or on not very good farm land," he said.
Congress president Sonia Gandi had warned last week, at a meeting with Chief Ministers of Congress-ruled states in Nainital, against diversion of farm land for non-agriculture uses. She also said farmers must be "properly compensated" when their land is purchased and advised the industry to make farmers a stakeholder in the projects.