Developers to lobby PM on SEZs

The Union government's bar on state governments acquiring land for special economic zones has prompted corporate India to seek the prime minister's intervention.

"We are planning to meet Prime Minister Manmohan Singh to tell him how difficult it would be for us to deal with thousands of landowners directly. It will delay all SEZ development plans," Videocon Chairman Venugopal Dhoot told Business Standard on Monday.

As the president of Assocham, Dhoot has asked Confederation of Indian Industry and Ficci to join him in requesting the prime minister to reconsider the move to ban states from acquiring land.

On Thursday, an empowered group of ministers capped the size of SEZs at 5,000 hectares (12,360 acres) and banned state governments from using the Land Acquisition Act 1894 to acquire farmers' land. On the same day, the central government cleared 83 new SEZ proposals.

Dhoot said corporate India is ready to pay the market price of land to its owners provided it is acquired by the state.

Corporate insiders, however, say it would be difficult for the government to come up with any relief for trade and industry till the Uttar Pradesh elections are over by May-end.

He pointed out that government bodies like the Maharashtra Industrial Development Corporation (MIDC) or West Bengal Industrial Development Corporation are acquiring land for setting up various industrial projects.

"So, what's wrong with SEZs?" Dhoot asked, adding, "This ban comes at a time when Indian companies are getting land from governments across the world to set up industrial projects. Even in our case, the Italian government is arranging for land to set up our liquid crystal display project," he added.

Videocon had announced that it would set up a SEZ in West Bengal and two SEZs in Maharashtra, at Aurangabad (5,000 acres) and Pune (2,500 acres).

Dhoot, who is in touch with other SEZ developers, says the mood among the Indian businessmen is gloomy. "We are ready to double compensation or job offers, but let's not stop the development of the country," he said.