eGoM retains land ceiling on SEZs
The government decided against any policy changes on politically sensitive issues such as removing the land ceiling and relaxing the ban on compulsory land acquisition for SEZs by states.
By ET Bureau |
NEW DELHI: Unwilling to upset the special economic zone (SEZ) applecart months before general elections, the government on Thursday decided against any policy changes on politically sensitive issues such as removing the land ceiling and relaxing the ban on compulsory land acquisition for SEZs by states. The empowered group of ministers (eGoM) on SEZs, headed by external affairs minister Pranab Mukherjee, also did not take a decision on the finance ministry proposal of imposing at 12.5% minimum alternate tax on SEZ units.
���There is no policy change. What was there will continue,��� commerce minister Kamal Nath told reporters. He said the eGoM only took up operational issues without tinkering with the policy.
A number of SEZ developers including Omaxe and Reliance Industries had requested the government to consider lifting the ceiling of 5,000 hectares on multi-product SEZs. The eGoM was supposed to examine the requests and take a decision. Similarly, a decision was also expected on the Kerala government���s request of allowing the state to acquire land for building SEZs owned by the government.
The SEZ law bans forcible acquisition of land. Even if one land owner refuses to sell his/her land, developers have to change their plans by excluding that portion of land. The ban was placed following violent protests in various parts of the country ��� like Nandigram in West Bengal and Maha Mumbai in Maharashtra ��� against forcible acquisition of land.
���Until the land rehabilitation policy is approved by government, we will not take a decision on land acquisition,��� he said.
���There is no policy change. What was there will continue,��� commerce minister Kamal Nath told reporters. He said the eGoM only took up operational issues without tinkering with the policy.
A number of SEZ developers including Omaxe and Reliance Industries had requested the government to consider lifting the ceiling of 5,000 hectares on multi-product SEZs. The eGoM was supposed to examine the requests and take a decision. Similarly, a decision was also expected on the Kerala government���s request of allowing the state to acquire land for building SEZs owned by the government.
The SEZ law bans forcible acquisition of land. Even if one land owner refuses to sell his/her land, developers have to change their plans by excluding that portion of land. The ban was placed following violent protests in various parts of the country ��� like Nandigram in West Bengal and Maha Mumbai in Maharashtra ��� against forcible acquisition of land.
���Until the land rehabilitation policy is approved by government, we will not take a decision on land acquisition,��� he said.
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Sources said since both the issues had political implications, the eGoM decided against taking a decision on it. The proposal to impose MAT of 12.5% on SEZ units ��� put forward by the finance ministry ��� was also kept in limbo. Since the SEZ Act promises units tax relief on to developers, the commerce department had argued imposition of tax at this point would amount to betrayal of investors��� trust.Download
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