* Special
Economic Zones
1. Special
Economic Zone Act, 2005
2. Paliamentary debates passing the SEZ act on 10th May 2005.
3. Group of Ministers to review SEZ (March 8, 2007)
4. Empowered Group of Ministers (EGOM) meetings (22 Jan. & 02
Feb.)
5. Nandigram was more shocking than Jallianwala Bagh (Sumit Sarkar &
Tanika Sarkar)
INSAF e-bulletin 20 Mar.07* Special Economic Zones
_______________________________
1. Special Economic Zone Act, 2005
A policy was
introduced on 1.4.2000 by the NDA government for setting up of Special Economic
Zones in the country with a view to provide an internationally competitive and
hassle free environment for exports. Units may be set up in SEZ for manufacture
of goods and rendering of services. All the import/export operations of the SEZ
units will be on self-certification basis. The units in the Zone have to be a
net foreign exchange earner but they shall not be subjected to any pre-determined
value addition or minimum export performance requirements. Sales in the
Domestic Tariff Area by SEZ units shall be subject to payment of full Custom
Duty and import policy in force. Further Offshore banking units may be set up
in the SEZs.
The policy provided for setting up of SEZ's in the public, private, joint
sector or by State Governments. It was also envisaged that some of the existing
Export Processing Zones would be converted into Special Economic Zones.
Accordingly, the Government has converted Export Processing Zones located at
Kandla and Surat (Gujarat), Cochin (Kerala), Santa Cruz (Mumbai-Maharashtra),
Falta (West Bengal), Madras (Tamil Nadu), Visakhapatnam (Andhra Pradesh) and
Noida (Uttar Pradesh) into a Special Economic Zones. In addition, 3 new
Special Economic Zones approved for establishment at Indore (Madhya Pradesh),
Manikanchan – Salt Lake (Kolkata) and Jaipur have since commended
operations.
The SEZ Act,2005 was In addition, approval has been given for setting up of 42
Special Economic Zones in various parts of the country in the private/joint
sectors or by the State Government.
The act and SEZ rules 2006 can be downloaded from: http://www.sezindia.nic.in
To download the SEZ act, 2005 click:
http://www.sezindia.nic.in/SEZ%20Act,%202005.pdf
To download the SEZ rules, 2006 click:
http://sezindia.nic.in/sez-rules2006.pdf
2. Paliamentary debates passing the SEZ act on 10th May 2005
The Minister of
Commerce & Industry (Mr. Kamal Nath) introduced the draft bill in the Lok
Sabha with the following introduction:
"The Government of India had announced a Special Economic Zone scheme in
April, 2000 with a view to provide an internationally competitive environment
for exports. The objectives of Special Economic Zones include making available
goods and services free of taxes and duties supported by integrated
infrastructure for export production, quick approval mechanisms, and a package
of incentives to attract foreign and domestic investments for promoting
exports.
There are at present 11 functioning Special Economic Zones. In addition,
approvals have been given for setting up of 35 new Special Economic Zones in
the private/joint/State sector.
While the policy relating to the Special Economic Zones is contained in the
Foreign Trade Policy, incentives and other facilities offered to the Special
Economic Zone developer and units are implemented through various notifications
and circulars issued by the concerned Ministries/Departments. The present
system, therefore, does not inspire enough confidence for investors to commit
substantial funds for development of infrastructure. To provide a long-term and
stable policy framework with a minimum regulatory regime and to provide
expeditious single-window clearance facilities, a Central Act for Special
Economic Zones has been found to be necessary in line with international
practice."
During the debate, Rupchand Pal of CPM and Gurudas Dasgupta raised their
criticisms concerning labour laws, exports,foreign investments, etc. But
overall, the bill was unanimously supported by all MPs without any questioning
of land aquisition or apprehension of agricultural land grab by corporates. MPs
from RPI-A, RJD and SP participated in the discussion supporting the bill.
However, not a single MP from BJP participated in the discussion.
Some quotes from the debates:
SHRI RUPCHAND PAL (CPI(M), HOOGHLY, West Bengal): Mr. Speaker, Sir, at the
outset, let me candidly express that barring a few areas of reservation,
broadly I support the Bill.
So, I conditionally support the Bill. We are the people who are looking forward
eagerly as to whether the executive control would have a statutory structure.
This piece of legislation is a welcome move, but the Government should look
into the basic labour interests, the ILO Convention, basic human rights,
fundamental rights etc. I have given some extreme cases and examples and these
are happening in our country also.
I have stated that the Chinese success story is because of certain other
factors which are not being addressed in the Indian situation.
I conclude with my support to this Bill and I believe that the Government or the
hon. Minister will look into the issues and the points raised by me; that he
will sympathetically consider all the points and positively respond so that it
becomes very easy for us to support the Bill.
SHRI K.S. RAO (INC, ELURU, Andhra Pradesh): Sir, I congratulate the hon.
Minister, Shri Kamal Nath, for bringing this legislation, which is called by
our CPI(M) Member, Shri Rupchand Pal, as a path-breaking legislation. It has
not been stated by me, but by Shri Rupchand Pal.
I also feel the same way and I feel proud that in this UPA Government we are
bringing a lot of such legislation. Just now, a legislation, The Right to
Information Bill, has been brought, belongs to the same category. That was a
legislation, which the earlier Government could not bring for five years. This
Government could bring it immediately and this is an essential thing for the
country’s prosperity.
Finally, I do not want to take more of your time and then disappoint you. The
Minister is also interested in seeing that the Bill is passed at the earliest.
I am also interested in this Bill. So, I do not want to take more time.
SHRI GURUDAS DASGUPTA (CPI, PANSKURA, West Bengal): Sir, let me at the
beginning make it very clear that those who are in the Left are not against any
economic step that will bring about rapid economic generation, re-generation or
advance generation. We are not against that. We are also not against any
reasonable step that the Government might take to improve India’s economy. But
all that should have been done is not being done. That is a separate issue.
There should have been many more steps to revive, to improve, to augment the
productive forces without increasing the rate of investment which is today only
24 per cent, without improving the Government investment to bring about rapid
economic growth. This additional step or artificial move that is being made may
not give the desired result. We have serious differences with the economic line
that is being pursued. Let us make it very clear and we do not agree that the prosperity
of Indian economy largely depends on export.
We wish you best, Shri Kamal Nath, but please have caution. Our task is to
caution you to see that while your concessions are made use of, there should be
a monitoring system also and the condition of labour has also to be protected.
We do not oppose the Bill because we do not like to be dubbed as
obstructionists. At the same time, we do not say that it is going to be a
liberalised zone where Indian law will not be operated. We do not believe that
the Government would like foreign capital to build up its own zone, without the
pale of Indian law. If that is done, that will be suicidal for India.
Therefore, with a note of caution, I give my qualified support to the Bill that
has been proposed.
SHRI MADHUSUDAN MISTRY (INC, SABARKANTHA, Gujarat): Sir, I have only two points
to make. I welcome the Bill and hope that it would speed up the process of
economic growth in the country besides generating employment on a larger scale.
I hope that it will generate employment.
PROF. M. RAMADASS (PMK, PONDICHERRY): Sir, I welcome this Bill for various
reasons; most importantly, this Bill is very comprehensive in character. It
encompasses all the procedures that are required to set up Special Economic
Zones -- from the start of one unit, to the operation, maintenance and to the
monitoring of the units under the Special Economic Zones.
Finally the Minister of Commerce & Industry (Mr. Kamal Nath) summed up:
Sir, I think, it is on record that I have assured that the State Governments
shall be consulted. Now, as per the procedure, no amendment has been moved. I
have not moved any amendment. My only submission is, that is an adequate
assurance and it has been recorded in the proceedings of the House. But in the
rules -- after all there will be rules framed -- we will build in provisions –
the hon. Members may have my assurance – which will adequately keep their
concerns in view.
FOR FULL TEXT of the debates:
http://164.100.24.208/debate14/debfile_display.asp
[If the above link does not work, then go to loksabha page (http://loksabha.nic.in/) debates, daily
debates, finally edited debates, session 4, date 10/05/05.]
3. Group of Ministers to review SEZ (March 8, 2007)
PART II
–PROCEEDINGS OTHER THAN QUESTIONS AND ANSWERS, Session 10, Thursday, March 08,
2007
The Prime Minister addresed the Parliament. Quote from his address:
"Sir, some hon. Members, Shri Basu Deb Acharia, for example, have referred
to the Special Economic Zone Policy. As I said, we need to industrialize.
And, if we do need to industrialize, we need to encourage industries, which
will be labour-intensive. If certain incentives have to be given, I think,
those have to be given. We must recognize that today skilled labour as
well as capital are internationally fully mobile. Therefore, our system
of incentive has to be competitive enough to attract more capital
both domestic and foreign. But this does not mean that everything that is
being done is sacrosanct. My colleague, Shri Pranab Mukherjee is heading
a Group of Ministers to review the approach to Special Economic Zone, to find
out if there are any pitfalls in the present Policy framework. It will be
our intention to redress whatever genuine grievances there may be. If we
have made a mistake in enacting the particular Act, we do not stand on any
formality; we will make necessary corrections.
But I would
like to say that the Special Economic Zone controversy has given rise to the
much due longer term debate, that is, with regard to the problems of
rehabilitation and resettlement of the disposed families from the areas which
are taken over for public purposes under the Land Alienation Act. I do
recognize, there is a need for a more humane approach, which takes into account
all those who suffer as a consequence of land having been taken away from them,
and it will be our effort to come up with a more humane Rehabilitation
and Resettlement Policy taking into account their needs."
4. Empowered Group of Ministers (EGOM) meetings (22 Jan. & 02
Feb.)
NEW SEZ
APPROVAL ABEYANCE ONLY TEMPORARY EGOM EXPECTED TO MEET SHORTLY GOVERNMENT
ASSURES INVESTORS
Dept. Of Commerce,
Ministry of Commerce & Industry.
Date : 23 Jan 2007, Location : New Delhi
Apprehensions have been expressed by the SEZ Developers and other stakeholders
regarding the future of investments made by them in relation to the SEZ
projects. The apprehensions are primarily based on media reports highlighting
the decisions of the Empowered Group of Ministers (EGOM) . However, as
highlighted in some of the media reports, the EGOM meeting held on 22nd January
2007 to review the status of SEZ approvals (as per decision taken in 23rd August
2006 EGOM meeting) was inconclusive. It is only pending decision by the EGOM
that the new approvals and notifications have been temporarily held in
abeyance. The EGOM is expected to meet shortly and final decisions would then
be taken on all pending issues.
Source: http://demotemp279.nic.in/pressrelease/pressrelease_detail.asp?id=1931
MEETING OF BOARD OF APPROVALS ON SEZs HELD ISSUES RELATING TO NOTIFIED
SEZs CONSIDERED
Dept. Of Commerce, Ministry of Commerce & Industry.
Date : 02 Feb 2007, Location : New Delhi
A meeting of the Board of Approval was held today under the Chairmanship of
Commerce Secretary, Shri G.K. Pillai, in which proposals relating to grant of
Co-developer status and requests for approval of authorized operations by
Developers and co-developers in respect of some of the 63 notified SEZs were
considered.
The Board of Approval accorded Co-developer status to M/s Motorola India Pvt.
Ltd. and M/s.FOXCONN India Developer Pvt. Ltd. in the SIPCOT SEZ at
Sriperumbadur, Chennai. Authorized operations in respect of these co-developers
were also approved. The Board also granted approval for co-developer status for
proposals from the following:
Three co-developers in the Mahindra World City SEZ in Chennai as follows:
Mahindra Intergrated Township Ltd.
Mahindra Holiday Resorts
M/s.Ascendas Mahindra IT Park Private Ltd.
Petronet LNG Limited as co-developer in Cochin Port Trust
Integrated Warehousing Kandla Project Development Private Limited as
co-developer at FTWZ in Kandla SEZ
Leela Lace Holdings Private Limited as co-developer in Info Park SEZ at Kochi
DLF Assets Private Limited as co-developer in the DLF Info City Developers
(Chennai) Limited -IT/ITES SEZ in Ramapuram, Chennai
The Board of Approvals also cleared requests from notified SEZs for authorized
operations, list of which is annexed.
List of Proposals cleared by BoA on 2nd February 07 for authorized operations
in Notified SEZs
HCL Technologies Ltd. - IT/ITES SEZ at Noida, Uttar Pradesh
Foxconn India Developer Private Limited in the SIPCOT SEZ at Sriperumbudur,
Chennai.
Motorola India Private Limited in the SIPCOT SEZ at Sriperumbudur, Chennai.
Quarkcity India Private Limited IT/ITES SEZ at Mohali, Punjab
Petronet LNG Limited in port based SEZ by Cochin Port Trust
WIPRO Limited IT/ITES SEZ in Pune Maharashtra
DLF Limited IT/ITES SEZ at Silokhera, Haryana
Dahej SEZ - Multiproduct SEZ in Gujarat
M.L. Dalmiya and Co. Ltd - IT/ITES SEZ at Kolkata
Ansal IT City and Parks Limited IT/ITES SEZ at Greater Noida, Uttar Pradesh
Satyam Computers Services Limited - IT/ITES SEZ at Bahadurpally Village, Ranga
Reddy Distirct, Andhra Pradesh
Satyam Computers Services Limited - IT/ITES SEZ at Hitec City, Madhapur,
Hyderabad
Zydus Infrastructure Private Limited - Pharmaceuticals SEZ at Ahmedabad,
Gujarat
Leela Lace Holdings Private Limited, in the Infopark IT/ITES SEZ at Kochi
Kerala
L&T Tech Park Limited, in the Infopark IT/ITES SEZ at Kochi, Kerala
Adarsh Prime Projects Private Limited IT/ITES SEZ in Karnataka
K. Raheja IT Park (Hyderabad) Private Limited IT/ITES SEZ at Ranga Reddy
District, Hyderabad
Coimbatore Hitech Infrastructure Private Limited IT/ITES SEZ at Coimbatore,
Tamil Nadu
Sanghi SEZ Private Limited IT/ITES SEZ at Ranga Reddy District, Andhra Pradesh
MIDC SEZ for Aluminium and Aluminium related industry at Shendre Industrial
Area, District Aurangabad, Maharashtra APIIC IT/ITES SEZ at Madhurwada Village,
Visakhapatnam, Andhra Pradesh
Hetro Infrastructure Private Limited - Pharmaceutical SEZ at Visakhapatnam,
Andhra Pradesh
MIDC Sector specific SEZ for Pharmaceuticals at Krushnor District-Nanded,
Maharashtra
Royal Palms (India) private Lmited - IT/ITES SEZ at Goregaon, Mumbai
MIDC Sector specific SEZ for Agro Products at Latur, District-Latur,
Maharashtra
FAB City SPV (India) Limited - Sector specific SEZ for manufacturing and
developing semiconductor facility at Hyderabad
APIIC IT/ITES SEZ at Kesarapalli Village, Andhra Pradesh
Shriram Properties Limited - IT/ITES SEZ at Chennai, Tamil Nadu
Whitefield Paper Mills Limited, for writing and printing paper mill SEZ at
Godavari District, Andhra Pradesh
M.P. Audyogik Kendra Vikas Nigam (Indore) Limited (Crystal IT Park (SEZ),
Indore.
Source: http://demotemp279.nic.in/pressrelease/pressrelease_detail.asp?id=1888
5.
'Nandigram was more shocking than Jallianwala Bagh'(Times of India,Mar.18)
KOLKATA,IANS:
Returning the highest literary awards bestowed on them by the West Bengal
government, eminent Left historian couple Sumit Sarkar and Tanika Sarkar on
Saturday said Nandigram was more shocking than the Jallianwala Bagh massacre
because it happened in a Left-ruled state.
"Jallianwala massacre happened in colonial India but what happened in
Nandigram is shocking since it happened in a Left-ruled government in
independent India," said Sumit and Tanika Sarkar in an interview.
"Jallianwala Bagh was the outcome of one single man's action (General Dyer
ordered the firing on hundreds of people on April 13, 1919) but here the entire
CPI-M (Communist Party of India-Marxist) machinery and the government were
involved in the killings," they said.
"What happened in Gujarat in 2002 did not amaze us as much because it was
a Bharatiya Janata Party (BJP) government but in a Left-ruled state this is
astounding," Tanika Sarkar said.
The couple returned their Rabindra Puraskars - the highest honorary literary
award given in West Bengal - to register their protest over the killings of 14
people in police firing at Nandigram and decided to donate the award money to
the Nandigram Relief Fund.
"I received Rs.50,000 in 2004 and Sumit received Rs.25,000 in 1998. We are
giving away the money to Nandigram Relief Fund," she said.
"We are shattered. All this has happened and there is not a word of shame
or apology from the CPI-M central committee or state committee," she said.
Sumit Sarkar, former professor of history at Delhi University, is a prominent
Indian social historian who in his "Writing Social History" sought to
combine an empirical study of themes in late-colonial Indian history with an
intervention in current debates about the extent and nature of Western colonial
domination. Tanika Sarkar's work focuses on the intersections of religion,
gender, and politics in both colonial and postcolonial South Asia, in
particular on women and the Hindu Right.
"What happened inside Nandigram that day (March 14) no one knows,"
said the Sarkar couple who were distressed since the controversy in Singur over
takeover of farmland for industry broke out.
"As a lifelong Leftist, I was deeply shocked by recent events in the
countryside of West Bengal. On Dec 31, a group of us went to Singur, spent the
whole day there, visited four out of five most affected villages and three
things became very clear, because of which the West Bengal government's version
cannot be accepted," said Sumit Sarkar.
"One, the land, far from being infertile or mono-cropped, as has been
stated repeatedly, is extremely fertile and multi-cropped. Two, there is no
doubt that the vast bulk of the villagers we met are opposed to the take-over
of land and most are refusing compensation. Three, we found much evidence of force
being employed, particularly on the nights of Sep 25 and Dec 2 last year,"
he said.
"The West Bengal government seems determined to follow a particular path
of development involving major concessions both to big capitalists like the
Tatas and multinationals operating in SEZs (special economic zones). Yet the
strange thing is that these, particularly the latter, are things which Left
parties and groups as well as many others have been repeatedly and vehemently
opposing," he said.
"Is this SEZ model that implies massive displacement and distress really
the only way? If the West Bengal government thinks so, then it also has to
accept that the inevitable consequences are going to be a repetition of
Nandigram across the state," Sarkar said.KOLKATA: Returning the highest
literary awards bestowed on them by the West Bengal government, eminent Left
historian couple Sumit Sarkar and Tanika Sarkar on Saturday said Nandigram was
more shocking than the Jallianwala Bagh massacre because it happened in a
Left-ruled state.
"Jallianwala massacre happened in colonial India but what happened in
Nandigram is shocking since it happened in a Left-ruled government in
independent India," said Sumit and Tanika Sarkar in an interview.
"Jallianwala Bagh was the outcome of one single man's action (General Dyer
ordered the firing on hundreds of people on April 13, 1919) but here the entire
CPI-M (Communist Party of India-Marxist) machinery and the government were
involved in the killings," they said.
"What happened in Gujarat in 2002 did not amaze us as much because it was
a Bharatiya Janata Party (BJP) government but in a Left-ruled state this is
astounding," Tanika Sarkar said.
The couple returned their Rabindra Puraskars - the highest honorary literary
award given in West Bengal - to register their protest over the killings of 14
people in police firing at Nandigram and decided to donate the award money to
the Nandigram Relief Fund.
"I received Rs.50,000 in 2004 and Sumit received Rs.25,000 in 1998. We are
giving away the money to Nandigram Relief Fund," she said.
"We are shattered. All this has happened and there is not a word of shame
or apology from the CPI-M central committee or state committee," she said.
Sumit Sarkar, former professor of history at Delhi University, is a prominent
Indian social historian who in his "Writing Social History" sought to
combine an empirical study of themes in late-colonial Indian history with an
intervention in current debates about the extent and nature of Western colonial
domination. Tanika Sarkar's work focuses on the intersections of religion,
gender, and politics in both colonial and postcolonial South Asia, in
particular on women and the Hindu Right.
"What happened inside Nandigram that day (March 14) no one knows,"
said the Sarkar couple who were distressed since the controversy in Singur over
takeover of farmland for industry broke out.
"As a lifelong Leftist, I was deeply shocked by recent events in the
countryside of West Bengal. On Dec 31, a group of us went to Singur, spent the
whole day there, visited four out of five most affected villages and three
things became very clear, because of which the West Bengal government's version
cannot be accepted," said Sumit Sarkar.
"One, the land, far from being infertile or mono-cropped, as has been
stated repeatedly, is extremely fertile and multi-cropped. Two, there is no
doubt that the vast bulk of the villagers we met are opposed to the take-over
of land and most are refusing compensation. Three, we found much evidence of
force being employed, particularly on the nights of Sep 25 and Dec 2 last
year," he said.
"The West Bengal government seems determined to follow a particular path
of development involving major concessions both to big capitalists like the
Tatas and multinationals operating in SEZs (special economic zones). Yet the
strange thing is that these, particularly the latter, are things which Left
parties and groups as well as many others have been repeatedly and vehemently
opposing," he said.
"Is this SEZ model that implies massive displacement and distress really
the only way? If the West Bengal government thinks so, then it also has to
accept that the inevitable consequences are going to be a repetition of
Nandigram across the state," Sarkar said.
http://timesofindia.indiatimes.com/Nandigram_was_more_shocking_than_Jallianwala/articleshow/1774467.cms
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