The Hindu Business Line : Lok Sabha passes SEZ Bill

THE Lok Sabha today passed the Special Economic Zones Bill, 2005 after adopting an official amendment to drop the Bill's provision in granting flexibility in labour laws by the States in the proposed Central Act. The original Act in any case had no direct Central role in laying down labour policy in the SEZs.

The Left parties had been demanding scrapping of the Clause 50 of the Bill. The Central legislation proposed that the States may take suitable steps to grant exemption from labour laws applicable in the special economic zones. Hence, the Government moved an amendment to the SEZ Act, 2005 by dropping this clause.

Officials in the Commerce Ministry told Business Line that labour being a State subject, the Centre was only suggesting in the Central Act to make use of grant of exemption by embedding it in the Central Act since the country as a whole has no flexible labour policy. Now with the apprehensions voiced by the Left parties that the clause would be misused by States willing to attract foreign investment, the Government assuaged their apprehensions by moving an amendment to drop this clause.

However, the Left parties also sought an amendment in the Bill to ensure that State Governments would not be bypassed while setting up SEZs in their respective areas as the proposed Bill provides for the Union Government to set up SEZs anywhere in the country without the concurrence of the State Governments.

However, the Commerce and Industry Minister, Mr Kamal Nath, while responding to this concern after a brief discussion on the Bill said that the Centre would consult and collaborate with State Governments when it intends to set up such SEZs.

When CPI (M) member Mr Basudev Acharya asked if the Government would incorporate this amendment to the Bill as it comes up for discussion in the next few days, the Minister assured the member that the Government would build in necessary provisions while framing the rules under the Bill.

In the absence of the main Opposition party - the BJP, the discussion on the SEZ Bill was brief with members from Treasury Benches supporting it while the Left Parties of the CPI and CPI (M) voicing qualified support for what they described as the attempt to give "undue concessions to attract foreign capital and denial of the rights of labour."

Responding to the criticism, the Minister said that the salient features of the SEZ Act 2005 is to attract investment, both domestic and foreign, and to ensure employment generation since export activities hold the potential for job creation.

He assured the members that there would be no violation of labour laws in the SEZs. He said the SEZ Act, which would generate adequate employment potentials and boosting the country's exports besides attracting foreign investment, creates a new avenue through legislative process.

The Bill was passed by voice vote.

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