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Friday, August 22, 2008

Land deals for SEZs only through talks...

Close on the heels of Maharashtra Cabinet’s decision to allot 100 hectares of land to Videocon Group’s Rs 8,000-crore fab unit in Navi Mumbai, the chief minister Vilasrao Deshmukh on Friday said the land acquisition for upcoming special economic zones (SEZ) in the state will be done only through negotiations. The government will be a facilitator in the land acquisition process.

However, he called upon the SEZ developers to provide attractive package and land price to the landowners and farmers and select project sites preferably in the backward Marathwada and Vidarbha regions. Deshmukh hastened to add that the state in its proposed new industrial and investment policy and the SEZ Law will incorporate various incentives for the promotion of more and more SEZs in Marathwada and Vidarbha regions.

Meanwhile, MIDC has launched its plan to acquire as many as 1 lakh acres of land across the state. Of the one lakh acres, 70,000 acres will be for the industrial purpose while the balance 30,000 acres for SEZs. MIDC, to avoid Nandigram or Singur incidents, has launched the land acquisition by simultaneously releasing a comprehensive rehabilitation policy for project affected persons (PAPs).

Deshmukh also mentioned about the opposition from various quarters for the land acquisition for SEZ projects and thus reiterated that the land acquisition will be carried out through mutual understanding and negotiations. He asserted that the developers identifying their project sites in Marathwada and Vidarbha may not face such opposition, as there are no constraints in the availability of land.

The chief minister was speaking at the international seminar on SEZ organised by Maharashtra Economic Development Council. He informed that the Centre has approved 131 SEZs so far in the state and of which 35 are already notified. State-run Maharashtra Industrial Development Corporation (MIDC) is developing nearly 21 SEZs while the rest is developed either by private sector or in joint venture.

“The state SEZ Law provides slew of incentives to the project developers, which includes exemption in stamp duty, VAT and electricity duty. The developers will be provided a deemed licence status for the electricity distribution.” He assured that the government will continue to be a facilitator for a hassle free development of SEZ projects. He however, advised the SEZ project developers to carve out a comprehensive rehabilitation package for the farmers and landowners. Infact, he also asked the developers to replicate the rehabilitation package prepared by MIDC.

MIDC chief executive officer Rajiv Jalota admitted that the land acquisition has really become quite difficult compared what MIDC had done until 2000. “Due to rising people’s expectations mainly because of private sector projects coming in the vicinity and also elsewhere, MIDC is confronted with a lot of opposition. At times, PAPs are also demanding high price for their lands. MIDC is quite clear that land acquisition and further industrial development will not be possible unless genuine concerns of PAPs are addressed and thus its in the process of creation of a separate unit which will focus on issues of rehabilitation,” he added....

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