Orissa planning stricter policy for SEZs

The Orissa government proposes to formulate a stringent land use policy for special economic zones (SEZs). The SEZ policy of the state, which is under formulation, will take due care to ensure that double cropped agricultural land, forest land and heavily populated areas were avoided, said Orissa industry minister Biswabhusan Harichandan.

"The interest of the farmers will not be compromised while giving permission for SEZs," he said.

Harichandan said assessment of the land for the SEZs will be based on rigorous industry norms so that extra land is not acquired. Moreover, the land for SEZs will be given on a lease basis and a provision in the policy will be made for resumption of unutilised land.

Replying to a debate in the Assembly today, the industry minister assured the members that their concerns pertaining to SEZs would be examined by the state government.

The Opposition members had earlier demanded passing of a resolution barring the mineral based industry from getting the coveted SEZ status as the state had attracted investment in this sector due to its abundant mineral resoruces.

Harichandan said the state government was following a more rigorous screening procedure than what had been prescribed under the SEZ framework of the Centre and by the Board of Approval (BoA).The recommendations of the state government stipulate that the SEZ projects would be subject to the SEZ policy of the state government.

Proposals without firm pre-development activities such as identification or acquisition of land, pre-feasibility study will not be considered.

Pending the formulation of its own policy, the state government had been following the provisions of the SEZ Act, Rules and other guidelines issued by the Union Ministry of Commerce and industry from time to time.

The state government has so far recommended 14 proposals to the board of approval (BoA).The government's criteria for screening of SEZ proposals include financial capability, relevant experience, track record and reputation of the applicants.

Other aspects like employment generating potential and level of export orientation are also examined. Any project based on local mineral resources, including primary metal industries and petroleum refinery industries, will have to develop and promote downstream industries within SEZs over a minimum area of 100 hectares.

The minister said that the number of SEZs recommended in Orissa was less compared with states like Haryana (48), West Bengal (22), Andhra Pradesh (68), Tamilnadu (46), Karnataka (54) and Maharastra (78).

Orissa has a comprehensive rehabilitation and resettlement policy, which protects the interest of the land owners.

Since the land is acquired through a statutory act, the government is not in a haste, the minister pointed out.

Earlier, some members criticised the policy of the government to accord SEZ status to the mineral based industries. They alleged that within next 10 years the state government may lose about Rs. 25,000 crore on account of this.