Clearance for Goa SEZs may be revoked

NEW DELHI: The board of approval (BoA) for SEZs, in its meeting on Monday, is likely to cancel the formal and in-principle approvals given to 11 SEZs in Goa which have not been notified. The move, government officials say, will send a positive signal to the people of Goa about the Centre���s intention of discontinuing with SEZs in Goa. The decision on the three notified SEZs could get postponed. The BoA will also take up five fresh proposals for setting up SEZs in other parts of the country.

Speaking to ET, commerce ministry officials said the Centre intended to convince the Goa government and the people that it would not force SEZs on the state. ���If we cancel the formal and in-principle approvals given to projects, it will make it easier for the state to convince people that the SEZ policy was not going to continue in Goa. The decision on the three SEZs, which have already been notified, then could be taken after due deliberation,��� an official said.

The three notified SEZs in Goa include pharma major Cipla���s Meidtab Specialities, Raheja���s IT/ITeS SEZ and Peninsula Pharma���s bio-tech SEZ. Cipla had already invested Rs 130 crore in its SEZ and had committed investments of Rs 500 crore. The Goa government had decided on December 31, 2007, to scrap all SEZs in the state as there were widespread protests against the zones initiated by BJP and later espoused by the Congress and NCP. BoA has sought the view of the law ministry on the issue of denotification of the three notified SEZs. The law ministry���s suggestions are also likely to be discussed in the meeting.

Sources said there are just five new proposals for setting up SEZs which would be taken up by the board. ���The fear that the BoA will be flooded with applications in the absence of a ceiling on the number of SEZs is unfounded,��� the official said. The BoA has, till date, given formal approval to 439 proposals, of which 200 have been notified.