Plan panel says no SEZ incentives
The Planning Commission has backed the RBI by saying that it is not in favour of incentives for SEZs.
By TNN |
NEW DELHI: The Planning Commission has come out in support of the Reserve Bank of India by saying that it is not in favour of concessional finance for SEZ projects.
Planning Commission deputy chairman Montek Singh Ahluwalia said on Wednesday that he endorsed the RBI's directive to banks to treat lending to SEZs at par with real estate.
He also said that the chief ministers would have to take decisions on allocating agricultural land for SEZs, keeping in view the fairness of land price.
Mr Ahluwalia's comments are sure to add to the controversy surrounding the SEZ policy. Commerce & industry minister Kamal Nath has sought the Prime Minister's intervention against an RBI directive to banks to treat SEZs at par with real estate projects for lending purposes.
On reforms, Mr Ahluwalia came out in support of finance minister P Chidambaram, saying the Eleventh Five Year Plan target of 9% economic growth would not be possible if 'political space' was not given to state governments to push through liberalisation.
While speaking at a conference here, he reasoned that it was difficult to reach an agreement in a coalition government and pointed out that every effort must be made to create a consensus among various parties.
Mr Chidambaram had come out with a similar appeal in the wake of differences within the UPA and the Left’s opposition to crucial financial sector reform proposals. Investment in science and technology has been given greater emphasis in the revised version of the Approach Paper to the Eleventh Five Year Plan, Mr Ahluwalia said.
The paper had been criticised by top science officials as being weak and confusing. The Planning Commission has also stressed the importance of investing in higher education so that Indian institutions of higher education compare with the best of the world.
Planning Commission deputy chairman Montek Singh Ahluwalia said on Wednesday that he endorsed the RBI's directive to banks to treat lending to SEZs at par with real estate.
He also said that the chief ministers would have to take decisions on allocating agricultural land for SEZs, keeping in view the fairness of land price.
Mr Ahluwalia's comments are sure to add to the controversy surrounding the SEZ policy. Commerce & industry minister Kamal Nath has sought the Prime Minister's intervention against an RBI directive to banks to treat SEZs at par with real estate projects for lending purposes.
On reforms, Mr Ahluwalia came out in support of finance minister P Chidambaram, saying the Eleventh Five Year Plan target of 9% economic growth would not be possible if 'political space' was not given to state governments to push through liberalisation.
While speaking at a conference here, he reasoned that it was difficult to reach an agreement in a coalition government and pointed out that every effort must be made to create a consensus among various parties.
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Mr Chidambaram had come out with a similar appeal in the wake of differences within the UPA and the Left’s opposition to crucial financial sector reform proposals. Investment in science and technology has been given greater emphasis in the revised version of the Approach Paper to the Eleventh Five Year Plan, Mr Ahluwalia said.
The paper had been criticised by top science officials as being weak and confusing. The Planning Commission has also stressed the importance of investing in higher education so that Indian institutions of higher education compare with the best of the world.
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