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Nath tells Pranab: need to meet to rethink SEZ freeze

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  • In the face of complaints from several states and several SEZ players that the Government’s indecision is costing them time and money — when there are no land-acquisition issues to settle — Union Commerce Minister Kamal Nath has asked for a meeting with External Affairs Minister Pranab Mukherjee to suggest that the 235 already-approved SEZs be notified. Mukherjee heads the empowered Group of Ministers (EGoM) on the issue.

    And that the Rehabilitation Ministry be brought into the loop to look into land acquisition on a case-to-case basis before further approvals. Government sources told The Indian Express that Nath spoke at length to Mukherjee on January 31 from London and sought an urgent meeting before the External Affairs Minister leaves for his trip to Iran on February 6.

    It is understood that Nath, who returns to India tomorrow, impressed upon Mukherjee that like all industries, SEZs also required land and urged him to let the Rehabilitation Ministry look into acquisition aspects.

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    With the Budget session later this month, the EGoM is expected to meet early March.

    Meanwhile, sending a clear signal that despite the political noise all around, the SEZ policy is on track, the Board of Approvals, under Commerce Secretary G K Pillai, met today after two postponements (January 10 and 19) and accorded “co-developer status” to five key private entities clearing the way for them to begin operations.

    Those given this status include Motorola and the $60-billion electronics hardware major Foxconn in the Tamil Nadu Small Industries Corporation (SIPCOT) SEZ at Sriperumbudur in Tamil Nadu; Singapore-based Ascendas for the Mahindra World City SEZ in Chennai; Petronet LNG for Cochin Port Trust; Leela Lace Holdings for the Info-city SEZ in Kochi and DLF Assets Private Limited for the DLF Info City in Chennai.

    While these come under the already 63 notified SEZs, 41 developers, including those mentioned above, were authorized to begin operations by the Board.

    The Commerce Ministry also got a boost from state government representatives and SEZ developers, who appeared before the Parliamentary Standing Committee headed by Murli Manohar Joshi on Thursday. The Standing Committee is touring SEZs in Jhajjar in Haryana and in Gujarat for “first-hand experience” next week.

    Representatives from Haryana, Maharashtra, Gujarat, Andhra Pradesh, West Bengal and Tamil Nadu met the Standing Committee and are said to have come out in favour of SEZs saying they were facing no land-acquisition problems in their states. Developers like Reliance, DLF, Wipro and Hyderabad Gems and Jewellery also voiced support in their deposition before the committee.

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