LDF Govt in Kerala announces SEZ policy

THIRUVANANTHAPURAM: Resolving strains in the ruling coalition, the LDF government in Kerala today announced its policy on Special Economic Zones ensuring labourers' rights and other state-specific safeguards.

The policy based on 13 specific conditions, announced by Chief Minister V S Achuthanandan after a cabinet meeting today, differed from the Central pattern on application of the Industrial Dispute Act.

As a sop to investors, the government has offered sales tax concessions for a period of 10 years but they would not be exempted from electricity duty.

Also, the government or its agencies would not involve in acquiring and handing over the land to private entrepreneurs coming forward to set up SEZs.

Based on the policy framework, 10 pending SEZ proposals examined and approved by the committee headed by chief secretary were forwarded to the Centre for follow up.

Unlike central government norms which allows utilisation of acquired land for industrial and other purposes in 50:50 ratio, the state-specific clause will insist on using 70 per cent of the total area for industrial purposes while the rest could be used for allied purposes like construction of residential buildings, roads and recreation facilities.

As a safeguard against realtors grabbing lands under the pretext of SEZs, the buildings under SEZs will not be rented or sold to outsiders. Considering the state's population, SEZ proposals requiring vast areas would not be approved and paddy fields would not be permitted to be acquired.