The Hindu Business Line : Land acquisition dogs setting up of SEZs

Yet only 12 of them have been notified. Adding the 16 SEZs that existed prior to the promulgation of the Special Economic Zones Act, there are only 28 notified SEZs in the country.

Land acquisition seems to be the biggest problem in creating SEZs. There are countless examples of the niggling problems that crop up while a company sets out to acquire land for a SEZ. In one instance, bang in the middle of a proposed SEZ was a patch of land whose owner could not be traced.

"A large number of people who have got formal approval are yet to come for notification with full land details," said Mr G.K. Pillai, Special Secretary, Ministry of Commerce, at an Open House here last week.

This point came up also in a recent conference organised by the Confederation of Indian Industry in Chennai. The Chief Minister of Andhra Pradesh, Dr Y.S. Rajasekhara Reddy, spoke at length of the problems in acquiring land. Land acquisition problems crop up while creating any kind of infrastructure, but more so in the case of SEZs because of the huge size of land required.

The situation is disconcerting because there is a tremendous interest in the Indian industry in setting up SEZs.

"We never anticipated this kind of response from the industry," Mr Pillai said. "The response has overwhelmed the Government." He said that although the Government, acting through a Group of Ministers, had said that approvals would be given for 150 SEZs, over time, the GoM was sure to raise the limit.

However, the delays in notifying the SEZs have perhaps a favourable fallout — it gives time for the Government to gear up to creating the administrative infrastructure for the SEZs. Each SEZ will have a customs office. Mr Pillai said that putting the administrative structure in place was a challenge.

More Stories on : Infrastructure | Real Estate & Construction

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
New `low' forecast as monsoon holds strong

Novel scheme for Mumbai taxi drivers

Himachal: Tax incentives lure corporate majors

TRAI mulls 1900 Mhz band for CDMA 3G services

Land acquisition dogs setting up of SEZs

NTPC-Reliance row referred to DGH

Polaris Soft ties with Citigroup vibrant

Home loan rates: Just grin and bear!

It's cautious optimism, but liquidity holds the key

Talent crunch may dim KPO sector prospects