Embargo on new farm export zones likely

In order to revive the agri export zones scheme, the commerce and industry ministry has decided to impose an embargo on fresh creation of such zones.

It has also decided to shortlist a few AEZs among the 60 already approved for implementing a two-year action plan aimed at making them model AEZs.

Senior government officials said following intensive consultations with the agriculture ministry, the commerce ministry was also considering having a separate budget head to provide funding for the AEZ scheme.

It had been agreed that new AEZs would be sanctioned only after careful scrutiny and deliberation, taking into account factors such as project report, commitment of resources by the state government and the track record of AEZs in the particular state. "There will be a self-imposed embargo on new AEZs unless there are strong and compelling reasons," an official said.

A recent evaluation of AEZs undertaken by the commerce ministry concluded that there was little proactive push by the states, the Centre and agencies to further their ends. The problem of absence of ownership for AEZs was compounded by the fact that there was no nodal agency to coordinate with other implementing agencies and monitor their performance.

The study pointed out that one of the factors for the lack of interest among states regarding AEZs was that the scheme was not a standard one under which funds or financial resources were allocated to the states.

Officials said in order to improve coordination and monitoring at the Centre, there would be an apex committee co-chaired by secretaries of commerce and agriculture, which would also provide linkage between states and the Centre. In addition to the apex committee, there would be a central coordination committee.

At the level of states, there would be a state-level coordination committee and monitoring committee chaired by the chief secretary.