Vikram SinghBalakishore

SEZ Act and Rules

SEZ Scheme – April 2000SEZ Act 2005SEZ Rules Feb’2006( First Amendment)

March 2007 – Second Amendment

October 2007- Third Amendment

SEZ Controversies and Flaws Land Acquisition

Agriculture land acquisition

Land acquisition with force- Land grabbing

Compensation to the farmers- Land acquisition act 1894

Wide spread riots: Nandigram

SEZ Controversies and Flaws cond…

Loss in revenues to the government Finance ministry estimates 100000

cr of loss until 2009-10 Tax sops to already developed

industries- IT

One job to the farmer family if eligible candidate is there

SEZ Controversies and Flaws cond…

25% area for processing

35% area for processing

50% area for processing

Rest of land – REZ?SEZs in few states-

TN,AP,UP,MH,GU,OR and HY

Regional imbalances

North east region

Comparison with China SEZs

Proposed Changes to improve the SEZ policy in India

Need of safety nets for the deprived farmers

Fertile/arable land should not be touched upon

New Compensation model for farmers

Just like cooperative setups have been through the equity shares, similar concept can be developed to setting up SEZs by sharing the profits to farmers

Improvements

Minimum area requirement for processing is 50%

Existing plants with old machinery cannot be moved to SEZ – New machinery is must

Everything is not tax free in SEZ No Govt. involvement in land acquisition

( 10 to 30%)New resettlement and rehabilitation policy

Thanks..