The Hindu Business Line : SEZs in China

Apart from reasons elaborated in `SEZs: Govt must re-do the homework' (Business Line, December 6), a few other policies have been instrumental for the success of SEZs in China. One main reason is that the land belongs to the state. In China, the SEZs are large, multi-product-oriented and concentrated mainly on the manufacturing sector. Major fiscal sops were not a part of the policy and labour laws were amended to give enough authority to the employer to terminate the services of incompetent workers.

Surprisingly, in India, the Commerce and Finance Ministries have serious differences of opinion on the policy itself. The number of applicants has been large, as they see it as real-estate investment. The concentration of the approved SEZs is mainly in the South and in the progressive States; there are no takers for the North-Eastern region. Unless the Government revamps the SEZ policy, it may well turn out to be the mother of all scams.

A. E. Charles

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