SEZs against India’s Constitution, says activist Medha Patkar

Infochange

An Empowered Group of Ministers on SEZs recently cleared 83 projects, while asking states not to carry out compulsory land acquisitions. The panel also placed a cap on the maximum land area to be used for the multi-product tax-free zones, at 5,000 hectares


The Indian government’s revised policy on Special Economic Zones (SEZs) violates the spirit of the Constitution of India, says Medha Patkar, India’s foremost people’s rights activist. She terms the new policy “wrong and weak”, saying it is against the interests of farmers.

“The decision on SEZs is against the spirit of the Constitution of India. How much land will be allotted to a single company is not explained by the government,” adds Patkar. “The government has neither barred private players from encroaching on farmland, nor is it performing its due responsibilities. The government is giving false assurances to the victims.”

The Indian government recently ended a two-month freeze on SEZ approvals, breathing new life into plans for large tax-free enclaves that ran into trouble over the controversial acquisition of farmland.

On April 5, an Empowered Group of Ministers (EGoM) on SEZs cleared a further 83 projects, while asking states not to undertake compulsory land acquisitions. The panel also placed a cap on the maximum land area to be used for the multi-product tax-free zones, at 5,000 hectares.

Meanwhile, the much-awaited relief and rehabilitation policy for farmers displaced by land acquisitions for industrial projects and SEZs will soon be taken to the Indian Cabinet. “We have sent the draft of the policy to the law ministry. After it is vetted by them (law ministry), we will take it to the Cabinet in a matter of days,” Union Minister for Rural Development Raghuvansh Prasad Singh told the media on April 10.

Singh indicated that compulsory land acquisition for industrial projects, including Special Economic Zones, would not be allowed “at any cost” in the policy.

While the rural development ministry has been given the key task of formulating the rehabilitation policy, Singh is not part of the EGoM on SEZs.

He did not specify whether or not the 83 SEZs recently cleared by the EGoM would be covered under the impending rehabilitation policy. However, he did indicate that SEZs already in possession of land may not attract the provisions of the new policy. Singh said his ministry “would ensure that the interests of farmers are protected”.

In the course of the last year, the Indian government approved nearly 400 SEZs and received another 304 proposals from various state governments. All but 63 of these projects have been put on hold, pending ministerial review.

The zones, similar to operations in China and intended to boost growth and exports, have been criticised by farmers, non-governmental groups and political parties both within and outside the ruling coalition.

The commerce ministry expects SEZs to draw nearly Rs 600 billion in investment by 2009, and create 890,000 jobs.

The ruling Congress-led United Progressive Alliance coalition had embarked on an ambitious plan to revitalise industry through such zones in its quest for 10% annual economic growth. But its plans came to a grinding halt after thousands of farmers across the country protested against the government’s compulsory land acquisition at some sites, claiming they had not been adequately compensated.

Source: ANI, April 10, 2007
The Hindu, April 10, 2007
www.action2007.com, April 6, 2007