Centre issues show-cause to Goa SEZ developers
The government has decided to issue show-cause notices to developers of 12 approved special economic zones (SEZs) in Goa asking them why the approval granted to them should not be withdrawn.
By TNN |
NEW DELHI: The government has decided to issue show-cause notices to developers of 12 approved special economic zones (SEZs) in Goa asking them why the approval granted to them should not be withdrawn. The move is in line with the ���principle of natural justice��� which has to be followed before revoking government approval, commerce secretary GK Pillai said on Monday.
A decision on denotifying the three SEZs in Goa, however, has been deferred by the Board of Approvals. The Centre will soon initiate discussions with the Goa government on the fate of these three SEZs. The eight other proposals that had earlier been forwarded by the state but were yet to be taken up by the BoA would be treated as ���withdrawn���.
Goa government had decided on December 31, 2007, to scrap all SEZs in the state as there were widespread political protests against the zones. While it would not be difficult for the Centre to cancel the approvals of the 12 formally- and in-principally-cleared zones, denotifying the three zones which had been notified would be fraught with legal and financial consequences.
According to government sources, the law ministry has suggested that in the case of denotification, adequate compensation should be paid to the SEZs. The three notified SEZs include pharma major Cipla���s Meidtab Specialities, Raheja���s IT/ITeS SEZ and Peninsula Pharma���s biotech SEZ.
Cipla has already invested in the project.
The BoA gave formal approval to 10 SEZ projects and in-principally cleared two others. Addressing the meeting, Mr Pillai, who is also the BoA chairman, said formal approvals had been granted for setting up of 439 SEZs, of which 201 had been notified.
Over Rs 67,347 crore have been invested in the notified SEZs which have provided direct employment to 97,478 people.
A decision on denotifying the three SEZs in Goa, however, has been deferred by the Board of Approvals. The Centre will soon initiate discussions with the Goa government on the fate of these three SEZs. The eight other proposals that had earlier been forwarded by the state but were yet to be taken up by the BoA would be treated as ���withdrawn���.
Goa government had decided on December 31, 2007, to scrap all SEZs in the state as there were widespread political protests against the zones. While it would not be difficult for the Centre to cancel the approvals of the 12 formally- and in-principally-cleared zones, denotifying the three zones which had been notified would be fraught with legal and financial consequences.
According to government sources, the law ministry has suggested that in the case of denotification, adequate compensation should be paid to the SEZs. The three notified SEZs include pharma major Cipla���s Meidtab Specialities, Raheja���s IT/ITeS SEZ and Peninsula Pharma���s biotech SEZ.
Cipla has already invested in the project.
The BoA gave formal approval to 10 SEZ projects and in-principally cleared two others. Addressing the meeting, Mr Pillai, who is also the BoA chairman, said formal approvals had been granted for setting up of 439 SEZs, of which 201 had been notified.
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Over Rs 67,347 crore have been invested in the notified SEZs which have provided direct employment to 97,478 people.
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