The LDF government’s SEZ policy is a minor victory for Achuthandandan, who had put forward many conditions for SEZs in the private sector. Though his demand for government equity in private SEZs was rejected by the CPM state committee and the politburo, he can find respite from the fact that the land for industrial purpose in SEZs has been raised from 50 per cent to 70 per cent. The official faction in the party favoured 50 per cent of land for industry.

Besides, the Chief Minister also ensured that the issue was discussed in the LDF, when the Pinarayi faction wanted to rush through the SEZ applications. When the official faction declared the SEZ policy in the first week of August, Achuthanandan had challenged it, saying that it was up to the LDF to take a final call on the issue.

While fine-tuning the SEZ policy, CPM snubbed the CPI’s demand for enacting a special legislation or ordinance for protecting the interest of the state and workers in SEZ. However, forcing the CPM to go for a special SEZ policy has saved the CPI from a major embarrassing situation.