Change SEZ policy: panel

NEW DELHI: Noting the spate of protests and violence over Special Economic Zones (SEZs), a Parliamentary committee has recommended that no further SEZs should be notified till the SEZ Act and rules made under it have been amended to meet the public concerns with regard to various provisions contained in the Act and rules.

The committee suggested  changes in the policy, from throwing out the Land Acquisition Act to banning good agricultural land for SEZs and a thorough review of fiscal and revenue incentives given to them.

Acquisition of land is being done for various reasons, all of them being labelled as “public purpose”, the panel said. SEZs are the latest addition to the list.

The Land Acquisition Act should be replaced by another law that should inform the affected the purpose of acquisition, its implications for them and the resettlement package that would be offered to them, the committee said.

Unless the purpose for which the land is being acquired involves an overriding national interest like defence/national security, the acquisition should take place with the consent of the affected parties. Further, a National Relief and Rehabilitation Act should be enacted to provide a comprehensive compensation package to those deprived of their lands.

The ownership of an acquired land should not be transferred to the developer. Instead, it should be leased out to the developer on a long-term basis, with provisions of extension duly built into the deed.