The seven formally approved special economic zones (SEZs) in Goa, including three notified ones, are likely to be scrapped.
Earlier, Commerce Ministry officials had said the notified zones could not be scrapped. But, now it seems, a way is being worked out. Government sources said that in the first half of July, Commerce Minister Kamal Nath, Goa Chief Minister Digamber Kamat, officials from the commerce ministry and the Goa government, as well as representatives of the Goa SEZ developers met in New Delhi to find a way out of the logjam.
The Goa government and the Ministry of Commerce and Industry have been at loggerheads over scrapping of the three notified zones of Meditab, K Raheja Corporation and Peninsula Pharma, as the former had said that the tax-free industrial enclaves could not be denotified.
| SEZs IN GOA | |||
| Developer | Area | Sector | Status |
| Meditab Specialties Pvt Ltd | 123.20 | Pharma | Notified |
| K Raheja Corp | 105.91 | Services | Notified |
| Peninsula Pharma Research Centre Pvt Ltd | 20.36 | Biotech | Notified |
| Planetview Mercantile Company Ltd | 13.28 | Gems and Jewellery | Formal approval |
| Inox Mercantile Company Pvt Ltd | 48.48 | Biotech | Formal approval |
| Panchbhoomi Infrastructure Pvt Ltd | 18.50 | IT | Formal approval |
| Paradigm Logistics Pvt Ltd | 40.25 | ITES | Formal approval |
| Source: Commerce and Industry Ministry | |||
“It was decided that the Goa government will talk to the developers of these zones on issues related to compensation. After finalising the details and the compensation mechanism, the zone developers will approach the commerce ministry and apply for taking back their applications. This will pave the way for the scrapping of the zones,” said a government official.
The compensation package could involve giving land and other incentives to the zone developers in other locations in Goa for developing non-SEZ industrial units.
The developers of the zones have already pumped in money to develop the infrastructure. Sources said the three notified zones had already invested over Rs 500 crore.
“The compensation package has been worked out in such a way that the land will revert to the Goa government. When a SEZ does not have land, it becomes null and void,” the official added.
The Goa government had recommended the commerce ministry to scrap all SEZs in the state after widespread political opposition against the zones.
The government also directed the notified zones to stop work.
“The Goa government has a majority by just one vote. The SEZs in the state cannot function as it is a sensitive political matter. Hence, the Goa government wants the zones scrapped,” officials added.
The Goa Industrial Development Corporation has already issued showcause notices to the seven SEZ promoters on revocation of lands allotted to them. On their part, the SEZ developers have approached the Mumbai High Court.
