The Hindu : National : Reforms commission for changes in SEZ policy

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Tuesday, Mar 18, 2008
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Reforms commission for changes in SEZ policy

Sandeep Joshi

NEW DELHI: The Administrative Reforms Commission (ARC) has favoured sweeping changes in policy regarding the setting up of special economic zones (SEZ). These include not using prime agricultural land for the purpose and limiting the number of economic zones.

In its latest report, the ARC has also dealt with the sensitive issues of inter-state water disputes, problems of the north-east and judicial reforms.

The ARC’s seventh report titled “Capacity Building for Conflict Resolution,” submitted to Prime Minister Manmohan Singh, states that extremely liberal tax holidays provided both to export units and developers require reconsideration. Besides asking to avoid use of prime agriculture land for setting up of SEZs and limiting their number, the Commission has said they should come up more in backward areas.

Environmental norms

The ARC, headed by Veerappa Moily, states that the proportion of land that is permitted to be used by the promoters of SEZs for non-processing activities should be kept to the minimum and the government should encourage SEZs promoted by the farmers.

There should be a strict adherence to environmental regulations, it adds.

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