Use of prime agricultural land should be avoided while establishing Special Economic Zones (SEZs), the second Administrative Reforms Commission (ARC) has recommended. It has also suggested that the number of SEZs itself be limited, with a “larger minimum size with locations preferably in backward areas so that they act as nuclei for economic growth”. The commission has also called for “reconsideration” of the extremely liberal tax holidays provided to exporters and developers.

In its seventh report — Capacity Building for Conflict Resolution — the commission has recommended negotiations as an “important mode” of tackling Left wing extremism even as the Government strengthens the capacity of security forces to act effectively. The report deals with a host of other issues, including those related to Scheduled Castes and Scheduled Tribes and inter-state river disputes.

“The recently-announced National Policy on Rehabilitation of project-affected persons should be implemented forthwith for all the ongoing projects as well as those in the pipeline,” commission chairperson M Veerapa Moily said after presenting the report to Prime Minister Manmohan Singh.

On SEZs, an issue that has generated considerable debate, the ARC feels enterprises promoted by farmers themselves should be encouraged.

The report says livelihood of the displaced should be a “major concern” of the SEZ policy; it wants clear allocation of social responsibility of rehabilitation to the entrepreneurs in the SEZ regulations and “re-examination” of the existing ratio between processing and non-processing activities to maximise the proportion of land being put to productive use.

On administration in the affected areas, it has called for revitalisation of the system of periodic official inspections and review of organisational performances. “It must be recognised that a major reason for such practices falling in disuse in disturbed areas is the apprehension of senior functionaries about their personal safety while on tour,” the report noted.

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