Left sizzles over grant of land to Posco’s SEZ

NEW DELHI: With the government sanctioning land for South Korean steel giant Posco’s SEZ at Orissa’s Jagatsingur, the issue has reappeared on the Left’s radar. The CPI on Friday accused the government of “surrendering” to the demands of the MNC and said it would, along with other political parties, resist Posco’s moves.

An angry CPI said Posco was being given a “tax-exempted and labour law-free SEZ haven in the name of SEZ” when the SEZ policy, in its present form, was still being debated in the country. The Left parties are preparing a note seeking changes in the SEZ Act, which include a review of the tax exemptions, increase in proportion of land allocated for industrial production, cap on extent of land alloted and adequate compensation for farmers as well as agricultural labour.

The Left’s demand for proper compensation for displaced farmers has found support within the UPA government with agriculture minister Sharad Pawar advocating a compensation policy ensuring adequate return to farmers for giving up land holding rights in favour of upcoming SEZ projects. “Farmers should get a proper price for parting with their land holding rights,” Mr Pawar told reporters on Friday. He said his ministry’s stand on acquiring agricultural land for SEZs had been conveyed to the commerce ministry.

The minister said the process of acquiring land for SEZ should be carried forward only after the farmer gives his consent on terms and conditions. He cited the case of a commercial project in New Bombay, where the state government had even monetarily compensated land to title holders and land holders were given 12.5% of developed land.

Mr Pawar and the Left have an ally in UPA chairperson Sonia Gandhi who has expressed concern about agricultural land being put to other use. “Despite all the objections raised against the way the SEZs were being created and the specific references about agricultural land and the livelihood of farmers made by Ms Sonia Gandhi, the commerce ministry is going merrily ahead with sanctioning scores of SEZs every week,” the CPI central secretariat said in a statement.

Pointing out that the Board of Approval has sanctioned at least 18 SEZs including the controversial POSCO steel project at Jagatsinghpur, the party recalled that the Orissa government has already handed over more than 1,100 acre of agricultural land to Posco for Rs 25,000 per acre falling within the fertile delta region of Mahanadi.

“Besides, Posco’s hunger is not satisfied with only this. It wants to grab several thousand more acres in the vicinity and even the seat coast for constructing a harbor of its own adjacent to the Paradip Port which it will affect adversely,” the party said. The CPI alleged that Posco’s aim was to lease several iron ore mines at other places to drain the state’s iron ore resources.