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CPM wants SEZ Act changed

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BS Reporter New Delhi
The CPI(M) today sought "urgent changes" in the Special Economic Zone Act and Rules to include a cap on maximum area of an SEZ, review of tax exemptions, and proper compensation to farmers as well as agricultural workers.
 
The party demanded that approval of state governments should be mandatory for SEZs. At the end of a three-day meeting of the Central Committee, party General Secretary Prakash Karat said they would take up the issue at the UPA-Left Coordination Committee meeting, expected next month.
 
The party said the Centre must accept the West Bengal government's proposal that 50 per cent of the SEZ land be used for industrial purposes and 25 per cent for infrastructure.
 
Supporting the finance ministry's "strong case" against SEZs, the party demanded that tax sops for the zones be pruned "drastically" as they would lead to heavy loss of revenue.
 
The party also opposed denial of contracts to Chinese companies. "Why is there such an old mindset? Former Defence Minister had called China potention Enemy No 1. I do not think the Congress also thinks so. Why is that Chinese companies are being prevented from participating in infrastructure development projects?" Karat said.
 
Asked for comment on Congress President Sonia Gandhi's statement on SEZs, Karat said it was "good" that she had expressed concern over the displacement of farmers.
 
Asked about the "dichotomy" between the Left stance on the type of land to be given for SEZs and that being given for a car manufacturing plant at Singur in West Bengal, Karat said bulk of the land in Singur was not multi-crop. The land given for two SEZs near Haldia was not very fertile, he said.

 

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First Published: Sep 27 2006 | 12:00 AM IST

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