SEZ land allotments raise a stink

Questions over proposed changes in land use are piling up, even as the commerce ministry and Maharashtra government are rushing to give in-principle approvals and conditional no-objection certificates to special economic zone (SEZ) developers.

Among the proposals that have received provisional approval are SEZs on tribal land and ecologically sensitive coastal areas.

Former BJP MP Kirit Somaiya, who recently shot off letters to the Maharashtra government and commerce ministry seeking information under the Right To Information Act, said, "I have found 87 cases of violations in allotment of SEZs, from approvals granted for land that falls under the coastal regulation zone and tribal land, which don't even meet the minimum land criteria, being given approvals."

Somaiya added, "Worldwide, there are only 393 SEZs but the government has approved as many as 467 SEZs till date, in just 6-7 months."

Take the example of the 1000 hectare Gorai SEZ proposed by the Essel Group. The group's application was received by the state government on 14.3.2006 and was taken up by the commerce ministry's board of approval (BOA) three days later at it meeting on 17.3.2006. The project was given an in-principle approval on 13.6.2006, following a conditional state government recommendation on June 9, 2006.

The state government in its reply to Somaiya noted that the party was "...yet to give information particularly (on) ownership of land, details, zoning, etc., for processing the case for formal approval." It, however, issued a conditional No Objection Certificate on 9.6.2006 and that the proposal was "yet to be recommended".

In another case, Somaiya claimed that the ministry has approved of a SEZ in scheduled tribal lands in Maharashtra. A proposal by Diwan Investment Pvt Ltd (name subsequently changed to Privilege Power and Infrastructure).

In its application September 2005 application the company had applied for a multiproduct SEZ of 1011 acres in Maharashtra. Here too the government of Maharashtra said the project was yet to be recommended as details of land ownership were not clear.

Union commerce ministry officials were not available for comment. An official spokesperson said a response may be available only next week on account of the ongoing holiday season.

A senior state government official explained that the no objection certificate issued to the Essel group was pending the availability of details such as land ownership.

He said that if any part of the proposed zone was found to be on the recreation and tourism zone or covered under the CRZ , then the NOC would automatically be revoked. This, he said, would also apply to the proposal by Diwan Investment / Privilege Power.

Explaining the government's stand, a senior state industry department official said, "The in-principle approvals by the BOA and the conditional NOC by us are essentially enabling procedures. These are merely to allow the developer to sign an agreement for the sale of the land pending final government approvals. The Centre has issued a letter to us that we may do so in the interest of the state. Also, we tend to fast track these proposals as we do not want any projects from our state to suffer because we had not issued a recommendation or clearance. But the developer still comes under the purview of all applicable laws."

Another case is that of Pune-based Kumar Builders. The company had applied for a SEZ status for its 49.1 hectare development coming up near Pune.

Initially, the Maharashtra Industrial Development Corporation had expressed reservations and the state government's screening committee had decided not to support the proposal. However, the builder later submitted clarifications on the basis of which the state is reconsidering the proposal.

While Somaiya contends that the ministry rushed the case through despite MIDC's reservations, the state government official said the case was taken up for reconsideration only after receiving the developer's clarifications on the objections raised.

Lalit Jain, chairman, Kumar Builders, said, "Will respond tomorrow."

In another case, the Hiranandani Builders had applied for an IT SEZ in Powai. While Somaiya said the government had permitted the SEZ in a no development zone (NDZ), the state government official explained that under the state rules for NDZs, IT parks with low FSI was allowed as IT is considered a non-polluting industry.

He explained that although the industry department had approved the proposal, the developer would have got the Urban Development department's approval before getting a final nod.