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DLF rethinks its SEZ in Punjab

The proposed SEZ has run into trouble following fresh guidelines from Centre and altered stance of the state govt.

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CHANDIGARH: The SEZ proposed to be set up in Punjab by DLF has run into trouble following fresh guidelines from the Centre and subsequently altered stance of the state government. Chief Minister Amarinder Singh has said the state government would not disturb farmers to set up mega projects.

Though the Centre has approved the SEZ in Amritsar, DLF may find the going tough without full support from the state government. Earlier, the government had promised to help DLF buy land for the SEZ at concessional rates.

Now DLF may be required to pay farmers the market price for the land. It had proposed to acquire 1,232 acres of land. Farmers organised rail roko agitations in protest.

DLF manager SK Bansal said the company might review the project if its cost escalates. He said without assistance from the government, DLF could not acquire land for project. He did not rule out the possibility of the project being shelved as the company had not yet made any investment.

The Reliance Industries Ltd (RIL), however, has announced its intention to go ahead with its Rs2200 crore farm-to-fork project even if the state government were to backtrack on its commitment to provide land at discounted rates.

Senior company managers told chief secretary KR Lakhanpal last week that RIL would like to implement the project on its own bearing the market costs. The government has so far provided more than 1,500 acres of land owned by the Punjab State Industries and Exports Corporations (PSIEC), besides assuring RIL that panchayat land would be made available on lease.

The Centre’s move not to allow SEZs on prime farm land puts a question mark not only over the other two SEZs in Punjab, but also other mega projects worth Rs80,000 crores.

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