“The government cannot reduce SEZ-related land acquisition to a contract between a landowner and a developer, and yet put a ceiling on the land so acquired,” the report stresses.

On the criticism that SEZs could aggravate regional disparities in economic development, the report concedes that of the 234 formal approvals (at the time), 70 per cent are in six states - Andhra Pradesh, Gujarat, Haryana, Karnataka, Tamil Nadu and Maharashtra.

Except Tamil Nadu, the other states are already significantly industrialised - and the report has suggested that the government should encourage SEZs in places “hitherto underdeveloped” since it “may not be possible to limit the number of SEZs” in the current political economy.