Developers want fair land pricing
Leading SEZ developers want a fair pricing formula from state governments for buying land from the owners for their proposed projects.
By Sutanuka Ghosal, TNN |
KOLKATA: Leading SEZ developers want a fair pricing formula from state governments for buying land from the owners for their proposed projects. The move comes in the wake of the new rehabilitation and resettlement (R&R) policy that says the state government will acquire 30% of the requisite land, provided the SEZ developer has acquired a majority 70% from land owners.
Talking to ET, Export Promotion Council for Export-Oriented Units & SEZs (EPCES) convenor Ajay Nijhawan said, “Land is a state issue. Initially, the state government should earmark requisite land for a project, be it an SEZ or any large industrial project.
The state government should help the SEZ developer determine the price so that he can buy land directly from landowners. If he fails to acquire land, the state government should step in.”
“This process will enable the market price of land to emerge. This rate, along with the government determined price, should provide the best price at which the balance land may be acquired by the government. Most developers feel the land acquisition rates paid by the government should equal the market price,” he added.
The SEZ developers feel the first issue pertains to determination of the price at which state governments acquire land. For land acquisitions, state governments notify several sections of the Land Acquisition Act. Under Section 4, the state declares its intent to acquire land. Under Section 5(A), it invites objections to such acquisition, and under Section 6, it determines the area to be acquired and the compensation to be offered.
Incidentally, the Board of Approval has given formal approvals to 366 SEZs and in-principle approval to 176 SEZs. The land requirment for 366 SEZs which have eceived formal approval is 490 square km and nearly 1571 square km for the SEZs which have received in-principle approvals.
The SEZ developers also feel that state governments should immediately pass necessary legislation pertaining to SEZs. Mr Nijhawan pointed out, “While the central government has enacted the SEZ Act of 2005 and the SEZ Rules of 2006, the states too need to pass their own State SEZ Acts. We plan to take up the issue with the respective state governments.”
Till date only Gujarat, Haryana and West Bengal have enacted their State SEZ Acts. Only when the states pass their own SEZ Acts will several provisions become operational, including exemptions granted to industrial establishments under existing central Acts.
Some of the issues that would be sorted out with the passing of State SEZ Acts and associated regulations include the establishment of a committee at the state level for clearing SEZ proposals.
Talking to ET, Export Promotion Council for Export-Oriented Units & SEZs (EPCES) convenor Ajay Nijhawan said, “Land is a state issue. Initially, the state government should earmark requisite land for a project, be it an SEZ or any large industrial project.
The state government should help the SEZ developer determine the price so that he can buy land directly from landowners. If he fails to acquire land, the state government should step in.”
“This process will enable the market price of land to emerge. This rate, along with the government determined price, should provide the best price at which the balance land may be acquired by the government. Most developers feel the land acquisition rates paid by the government should equal the market price,” he added.
The SEZ developers feel the first issue pertains to determination of the price at which state governments acquire land. For land acquisitions, state governments notify several sections of the Land Acquisition Act. Under Section 4, the state declares its intent to acquire land. Under Section 5(A), it invites objections to such acquisition, and under Section 6, it determines the area to be acquired and the compensation to be offered.
Incidentally, the Board of Approval has given formal approvals to 366 SEZs and in-principle approval to 176 SEZs. The land requirment for 366 SEZs which have eceived formal approval is 490 square km and nearly 1571 square km for the SEZs which have received in-principle approvals.
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The SEZ developers also feel that state governments should immediately pass necessary legislation pertaining to SEZs. Mr Nijhawan pointed out, “While the central government has enacted the SEZ Act of 2005 and the SEZ Rules of 2006, the states too need to pass their own State SEZ Acts. We plan to take up the issue with the respective state governments.”
Till date only Gujarat, Haryana and West Bengal have enacted their State SEZ Acts. Only when the states pass their own SEZ Acts will several provisions become operational, including exemptions granted to industrial establishments under existing central Acts.
Some of the issues that would be sorted out with the passing of State SEZ Acts and associated regulations include the establishment of a committee at the state level for clearing SEZ proposals.
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