Govt limits cap for SEZs to 5k hectare
The govt asked Kandla Port Trust to set up the SEZ on 5,000 hectare land, in line with the cap fixed by EGoM.
By Sidhartha, TNN |
NEW DELHI: In a move that could dampen the spirits of those hoping for a review of the 5,000 hectare ceiling on special economic zones, the board of approvals (BoA) has rejected a proposal from government-run Kandla Port Trust to set up an SEZ spread over 6,100 hectare in Gujarat.
Instead, it has asked Kandla Port Trust to develop the SEZ on 5,000 hectare land, in line with the cap fixed by the empowered group of ministers (EGoM) headed by Pranab Mukherjee in April this year.
The decision has already been communicated to the port authorities who are not pleased with the move. The shipping ministry and Kandla Port Trust are of the opinion that the land has been lying with the port for years and, unlike with other developers, there is no fresh acquisition.
The commerce ministry, which administers the SEZ policy, and the shipping ministry are now expected to approach the EGoM to seek a clarification on how the land ceiling should be applied. Based on the ministerial panel's decision, the BoA will fix a policy which will decide if the cap holds good for all SEZs or only for those that acquire land after a stipulated date.
But Kandla's experience sets the precedent for the likes of Reliance Industries and DLF which have planned the country's largest SEZs. The Mukesh Ambani group intends to set up the Maha Mumbai SEZ and Reliance Haryana SEZ that would be spread over 10,000 hectare each, while DLF's proposed zone in Gurgaon, Haryana, is intended to cover 8,097 hectare. Omaxe too has plans to build an SEZ on over 6,000 hectare land in Alwar.
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On Tuesday, Reliance got a go-ahead from the BoA to start work on 440 hectare land in Haryana. While the company is hopeful of not just acquiring 10,000 hectare as it had originally planned but also of getting the government green signal for the multi-product zone, sources in the government said there was no move to relax the 5,000 hectare ceiling at the moment. "Reliance or anyone else who has a permission to set up an SEZ can start construction once they have land and the necessary approvals. But we do intend to ask them to stop expanding the zone the moment they reach 5,000 hectare," an official said.
While officials at Kandla may not be pleased with the BoA decision, it does help the port trust start work since it ends months of uncertainty. The port trust's proposal was first held up since the home ministry wanted to put it through a security check.
From www.timesofindia.com
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