SEZ policy

To boost up the FDI in India and with a view to provide internationally competitive and hassle free environment for export, Indian government had introduced SEZs in India on lines of SEZs in China, where it had been a good success (Shenzhen).SEZs are the geographical area which is treated as the privileged area provided with incentives in taxes and other favorable conditions to bolster the exports and industrialization. The SEZ units may be set up for trading, export, manufacturing, reconditioning and repair and for services activities. There are around 14 SEZs established in India which are either multipurpose or specific SEZ. These are established either in partnership with public or private sectors or state govt. With announcement of SEZ policy in 2005 around 150 more units have been given go ahead. According to a survey these SEZs may create around 5 lacs more jobs and may attract the FDI in tune of 6 billion USD.Besides there benefits SEZs have been a matter of contention due to vague acquisition policy and inadequate compensation payed to the land owners. After the Nandi gram incidence, in which 12 protestors have been killed and several injured, the Govt. is under pressure to relook the policy. We should not forget that unlike China we are world's largest Democracy and what is successful in China may not be the same story here. If a SEZ boosts FDI why don't we convert whole India into a SEZ. Nandi gram incidence is a caveat for Govt. There had been statements in both favour and against of SEZs, after the unfortunate Nandi gram incidence as Mr. Narayan Murthy, chief mentor said "we should not acquire the lands of farmers without their will " and Mr Kamal Nath said "Govt. is committed for SEZs" , but the UPA govt and their left allies are in constant pressure of relook on the policy. Hitherto flourishing SEZs announcements are now feeling a halt for time being and the SEZ cannot be set up without taking landowners into confidence which seems to be hard nut to crack as voices against SEZ are raising now from other parts of the country like Kerala too after WB.

8.2/10 AMIT