SEZs in dire straits
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Bhubaneswar:12/April/2007
The Big Brothers are in for trouble.
Posco, Vedanta, Hindalco and Saraf Group’s proposed Special Economic Zones (SEZ)s are in dire straits.
With the Empowered Group of Ministers (EGOM) decision to ask state governments to withdraw from land acquisition process for these SEZs are likely to create hurdle.
The Centre ’s decision, that land acquired/allotted by the states after February 1, 2006 will not be allowed to be used in SEZs has come as a big stumble block for the SEZ, which are approved in principle, said a senior official.
EGOM effected the biggest change with the insistence that private players, rather than the state, should acquire the land for SEZ.
This would shield landowners from the state's unique power under the Land Acquisition Act to alienate an individual's property rights and forcibly acquire land for a 'public purpose', said Prafulla Samantara of Lok Abhiyan.
This power, called the exercise of eminent domain in law, has been officially questioned for the first time in country's history.
The new rule would place sellers and buyers on an even keel — given the difference between market prices and last recorded prices in government records — and go a long way towards ensuring that SEZs do not create a large army of losers.
Development must create win-win situations, in order for it to be able to sustain itself; SEZ players should work actively at making the displaced stakeholders in the project, said an anlyst.
On Ground Zero the public sector undertaking Industrial Infrastructure Development Corporation of Orissa (IDCO) is in the various stages of completing land acquisition procedure.
With the new caveats in place, the Posco which needs 3956 acres of land in Kujanga tahsil for its multi-product SEZ containing $12 billion steel project and ancillary industries will have to take agitating farmers into confidence before acquiring land by self.
Similar is the situation in case of Vedanta Alumina, who has received in principle approval for sector specific SEZ of aluminum and captive power plant at Jharsuguda with an investment of Rs.5742 crore.
Hindalco Industries face similar situation for its in principle approved sector specific SEZ of aluminum and captive power plant having project cost of Rs.3909 crore at Lapanga in Sambalpur.
Sector specific in principle approved SEZ of Beach Sand Mineral (Ilemenite to Tatanium Sponge) at Chhatrapur in Ganjam promoted by Saraf Group faces piquant situation with the paradigm shift in policy.
In all these cases IDCO is involved in acquiring land and now the PSU will have to withdraw in view of the EGOM’s ‘no acquisition by states’ dictat may make these four SEZs impossible, admit officials.
The Big Brothers are in for trouble.
Posco, Vedanta, Hindalco and Saraf Group’s proposed Special Economic Zones (SEZ)s are in dire straits.
With the Empowered Group of Ministers (EGOM) decision to ask state governments to withdraw from land acquisition process for these SEZs are likely to create hurdle.
The Centre ’s decision, that land acquired/allotted by the states after February 1, 2006 will not be allowed to be used in SEZs has come as a big stumble block for the SEZ, which are approved in principle, said a senior official.
EGOM effected the biggest change with the insistence that private players, rather than the state, should acquire the land for SEZ.
This would shield landowners from the state's unique power under the Land Acquisition Act to alienate an individual's property rights and forcibly acquire land for a 'public purpose', said Prafulla Samantara of Lok Abhiyan.
This power, called the exercise of eminent domain in law, has been officially questioned for the first time in country's history.
The new rule would place sellers and buyers on an even keel — given the difference between market prices and last recorded prices in government records — and go a long way towards ensuring that SEZs do not create a large army of losers.
Development must create win-win situations, in order for it to be able to sustain itself; SEZ players should work actively at making the displaced stakeholders in the project, said an anlyst.
On Ground Zero the public sector undertaking Industrial Infrastructure Development Corporation of Orissa (IDCO) is in the various stages of completing land acquisition procedure.
With the new caveats in place, the Posco which needs 3956 acres of land in Kujanga tahsil for its multi-product SEZ containing $12 billion steel project and ancillary industries will have to take agitating farmers into confidence before acquiring land by self.
Similar is the situation in case of Vedanta Alumina, who has received in principle approval for sector specific SEZ of aluminum and captive power plant at Jharsuguda with an investment of Rs.5742 crore.
Hindalco Industries face similar situation for its in principle approved sector specific SEZ of aluminum and captive power plant having project cost of Rs.3909 crore at Lapanga in Sambalpur.
Sector specific in principle approved SEZ of Beach Sand Mineral (Ilemenite to Tatanium Sponge) at Chhatrapur in Ganjam promoted by Saraf Group faces piquant situation with the paradigm shift in policy.
In all these cases IDCO is involved in acquiring land and now the PSU will have to withdraw in view of the EGOM’s ‘no acquisition by states’ dictat may make these four SEZs impossible, admit officials.
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