The Hindu Business Line : Maharashtra to go slow on land takeover for SEZs

Policy rethink
Reliance SEZ faces opposition from local farmers in Raigad
Of 220 SEZs approved by Centre, 48 are located in Maharashtra
Govt in favour of converting landowners into equity stakeholders

Mumbai , Sept 26

The Maharashtra Government has decided to go easy on acquiring agriculture land for setting up SEZs in the State.

Mr Patangrao Kadam, Minister for Co-operation, Rehabilitation and Relief Work, said on Tuesday that the State Government has promised to strike a balance between farmers' interest and industrial development.

Panel meeting

He was addressing newspersons after chairing a meeting of the State Government's Cabinet Sub-Committee on SEZs.

The sub-committee has been set up to decide on the compensation to be paid for purchase of land and to ensure economic rehabilitation of displaced farmers.

The Reliance group led by Mr Mukesh Ambani, which is setting up two SEZs in the State, made a presentation to the cabinet sub-committee.

Reason for revisit

According to observers, the revisit by the State Government follows the opposition faced by the Reliance SEZ from local farmers and the cautious stance adopted by the Congress recently.

Out of the 220 SEZs approved by the Union Government, 48 are located in Maharashtra.

The Reliance SEZ in Raigad district will be spread over 10,000 hectares, with the project cost being put at Rs 30,000 crore.

Equity plan

Sources said that the Government favours the idea of converting local landowners into equity stakeholders in the project. They could also be allotted industrial or commercial space in the SEZ by way of compensation, which would be over and above the monetary sums paid.

Mr Kadam said that the committee, while discussing the modalities of compensation, also considered returning 12.5 per cent of the developed land to the project-affected landowners at concessional rates. In addition, there could be a minimum allowance based on the farm incomes of the landowners and jobs for the local youth.

Talks with Reliance

"Our talks with Reliance are at a primary stage and no decisions have been taken," he added.

Mr Kadam also said that revenue authorities of the State would carry out a socio-economic survey of all the villages and families affected by the SEZs.

Small villages would not be relocated, he added.

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