The Hindu Business Line : SEZ policy

I agree with the views expressed by the author in the article "Simmering discontent over SEZs"(Business line, March 31.) Conceptually, the SEZ policy aims to attract investment and develop a particular identified area, which is backward.

The major objectives are attracting investments, augmenting production, increasing exports and creating job opportunities for the people of that area.

China has succeeded in using the SEZ concept for fulfilling these objectives. But in India, developers, politicians and individuals with political clout are taking the SEZ route for their own latent agenda.

If SEZs are to become the real instruments of development of backward areas, this must not be allowed. There should be a thorough overhaul of the SEZ policy instead of piece-meal plugging of loopholes. The revamped policy must allow SEZs only in backward areas and concessions and incentives must be mimimal without entailing large revenue loss for the government.

The revised policy must prohibit shifting of activity from another area. Allotment of fertile and cultivable land must also be prohibited. There must be a ban on developers and builders setting up SEZs .

In almost all SEZ locations, property prices have increased five-fold and this increase is not natural. The modified policy must aim at correcting these loopholes and serve the objective of attracting huge investments.

K. K. Ammannaya

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