SEZ policy to come under CPM, Congress scanners

UPA government's policy on Special Economic Zone (SEZ) is set to come under close scrutiny in the coming days with the CPI(M) preparing a note to discuss it with Prime Minister Manmohan Singh and the Congress planning to discuss its impact on agriculture at the Congress chief ministers' conclave at Nainital next week.

CPI(M) general secretary Prakash Karat told Business Standard on Friday that the note on the SEZ being prepared by his party would be taken up with the government shortly.

"There has to be a ceiling on the land being allotted for SEZs. You cannot give 10,000 or 25,000 acres of land for an SEZ. Besides, the issue of wholesale tax exemptions has to be re-visited," he said.

The Left is likely to raise the issue at the UPA-Left coodination committee meeting to be held later this month.

CPI(M) Politburo, which met in Kolkata early this week, had decided to build a political consensus to bring changes in the SEZ Act to the effect that there is an increased cap on the use of SEZ land for real estate purposes.

The party wants the government to bring amendments in the Act so that at least 50 per cent of such land is reserved for industrial purposes. It is also opposed to the provision regarding setting up of international financial centres.

Senior Congress leaders have been raising the issue of inadequate compensation being given to farmers whose land is acquired by state governments. Many Congress MPs have gone public questioning the SEZ policy on the grounds that it is turning out to be a real estate business.

"Besides, one has to see its impact on agriculture, which is already facing a crisis," said an AICC general secretary.