An executive from one of the big four consulting firms, who did not wish to be named, said that in most cases after a developer gets an in-principle approval, the states help them by acquiring land through their industrial development corporations. “They, however, impose onerous responsibilities in terms of employment generation for local people, compensation for land acquired and resettlement of affected people,” he said.

But in April last year, following huge controversies, the EGoM decided that no SEZ approvals would be granted if land belonging to even one individual was compulsorily acquired after April 4, 2007, even if it formed a minuscule fraction of the total area.

Smaller states including Kerala were the most affected since almost all IT-ITES SEZ proposals involved some land acquisition. So much so that Kerala Chief Minister V.S. Achutanandan wrote to the Prime Minister in April this year requesting a major dilution on land acquisition rules. He wanted the government to let Kerala acquire land compulsorily if the developer procures even 30 per cent of the total area required. His proposal will also be discussed by the EGoM in its meeting on August 7.