CPI(M) to press govt to stop SEZ misuse

Finding resentment against special economic zones (SEZs) in many parts of the country, including within its own organisation, the CPI(M) has decided to press the UPA government to change the SEZ Act to stop its misuse.

West Bengal Chief Minister and Politburo member Buddhadeb Bhattacharjee today said: "The SEZ Act in its present form is totally unacceptable. The government has allowed almost 400 SEZs. This is complete madness." The CPI(M)-led Left Front had supported the legislation in 2005.

After another round of review of SEZs at the 19th Party Congress, the party has decided to demand a sector-wise ban on SEZs. "All industries don't require SEZs. Only the sectors in need of advanced technology or where exports are to be encouraged should have SEZs," he said.

The CPI(M) wants the Centre to follow China. "China has allowed only six SEZs. We have to identify the sectors which require SEZs. Amusement parks or entertainment sector don't need SEZs," Bhattacharjee said.

The CPI(M) also raked up its demand that the land-use pattern of an SEZ should give priority to industrial processing instead of the real estate business. "In an SEZ, at least 50 per cent land should be for processing or industrial use, 25 per cent for infrastructure and the rest for real estate," he said.

"How much land we can afford has to depend on the nature of the industry. For example, in information technology, 25-30 acres is enough. But for the manufacturing sector, you need to give more land," Bhattacharjee added.

The debate on SEZs had generated a lot of heat even in the Party Congress.

The Maharashtra unit of the CPI(M) wanted that SEZs should be banned. However, Prakash Karat and Bhattacharjee backed SEZs and only eight votes went in favour of banning SEZs completely.