Is The Present Sez Policy Appropriate
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Transcript of Is The Present Sez Policy Appropriate
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..