Is SEZ really a boon for the farmers?

the ruling coalition with its partners, farmers with their state governments and activists against what they call, “people unfriendly” projects that can spin out of control by marginalizing a huge section of poor people. In the last few weeks there has been a lot of political posturing, differences of opinion and stance on the SEZ, as it becomes a hot potato
 
As Indian growth rates manage to keep its head high above stormy waters, the idea to many seem as one way of boosting the economy, setting up of new infrastructure, helping ancillary units sprout and creating millions of jobs
 
The idea of setting up Special Economic Zones was mooted in March 2000 as specially demarcated growth centers, to boost exports. It would have special laws protecting it, did not have to pay customs duties on machinery or goods it imported or bought locally.
 
It would have liberal laws as far as labor and foreign investment was concerned. Apart from attractive tax and duty exemptions, it would be allowed to distribute its own gas, power and water. It was touted to have its unique style of governance. In short, be economic drivers.
 
When it was spelt out, it seemed good as its advocates kept pointing to China that attracted $30 billion in Shenzen, just one of its SEZ’s.
 
The investment here was more than what all the SEZ’s in India were projected to get. Another SEZ doing extremely well was Pudong, near Shanghai changing the entire skyline. Observers say China attracts nearly $45 billion per year in foreign direct investment compared to India's figures of $2 billion annually as it has used its huge SEZ's to boost its economy. India hoped to replicate it.
 
The SEZ’s sounded like an unique idea when it was described as being swank with its own malls, restaurants, flyovers, hospitals, golf courses, luxury apartments, recreation centers and even airports or jetties that would jostle to become among the best in the world. The Commerce Ministry says it is a great real estate opportunity for commercial complexes, offices, malls, golf courses and so on.
 
But SEZ’s need land to build such a massive infrastructure. All the contiguous land that is easily available and connected to the mainland is productive, fertile, agricultural land
 
Both the centre and the states are eager to acquire this land as they see it as the only way to put up what they think will soon be their economic drivers.
 
The Union Ministry of Commerce and Industries are in a great hurry to see it happen as visualize the zones will revive growth and investment.
 
Commerce Ministry officials are trying to push it as fast as they can saying that it will stimulate investments of over Rs. 1,00,000 crore, create over five lakh jobs and also bring in net revenue of Rs. 44,000 crore.
 
rough plan is that 40 per cent of the SEZ will be set aside for greenery, sewage and water treatment, 25 per cent for real estate development and the rest 35 per cent for developing the SEZ.
 
But all this does not sound like good news for the Finance Ministry. It has real apprehensions: SEZ’s are estimated to end up with the Finance Ministry losing revenue to the tune of over Rs. 1,00,000 crore annually once the zones are up and running. With its huge fiscal deficit, India can hardly afford the loss
 
The Reserve Bank of India has in fact told banks that they should not treat SEZ’s as infrastructure projects but as real estate development activity.
 
The primary issue is the widespread apprehension that the SEZ’s will be hijacked by developers who will with government help, corner huge swathes of rich, agricultural land with a measly compensation handed over to farmers which will not have any resettlement and rehabilitation policy.
 
Many of them are IT related software parks and technology hubs. The argument put forward by critics is that there is no need for a SEZ for IT as they would have done well anyway as India has an edge and has solid human resource that is growing by the day
 
This has prompted the Commerce Secretary, Gopal Pillai, to say that the government will now go slow on approval for IT SEZ’s. As many as 148 IT SEZ’s has been granted approval and another 70 are likely to be okayed as they have been cleared in principle.
 
This may not be music to IT ears. The SEZ was a perfect dream for them as the existing Income Tax Act allows them tax sops only for another four years.
 
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