SEZ -boon or bane?

[deepakraam]

Today there was much talk on the Special Economic zones(SEZ).But some people of the country are vehemently protesting the Govt's plan of mooting the SEZ at the cost of agricultural land

Is the concept of SEZ a boon or a bane?

[ruvi_143]

In India, 25% of a SEZ is used for industrial and business purposes, and 75% for real estate and commercial complexes. SEZs will benefit only real estate and property developers since merely 25% of the land has to be used for industries or manufacturing.

Loss of revenue due to tax incentives and exemption of duties.
Exploitation of workers coz of lack of labour laws.

[ruvi_143]

ADV
'
HELPS IN REDUCING TRANSACTION COSTS
SIMPLIFIES PROCEDURES AND GIVES FISCAL CONCESSIONS- The fiscal concessions include full exemption from income tax for the SEZ units for five years and 50 per cent concession for the next five years and exemption from customs and excise duty from all imported inputs to SEZ developers as well as units located in them. They are not required to pay even the minimum alternate tax.

[ruvi_143]

"SPECIAL ECONOMIC ZONES OR SPECIAL EXPENSES ZONE"

:SugarwareZ-254:

[ruvi_143]

The zones are too small--as little as 100 hectares. For some special kinds of industries (software, bio-tech, gems and jewellery), that minimum size has been reduced to 10 hectares--which is little more than the size of an industrial plot. Providing quality infrastructure in such a small area can have no real meaning.

This could lead to tax scams. Whats is the commerce ministry up2?
Aint there enough tax loopholes in the country that it needs 1 more!!!
What the hell is the prime minister doing????
On top of this the commerce ministry has decided to increase the nos. of SEZs to 300 from 150...........What the f##k is wrong??!!!!!???

[samar]

Are the original landowners adequately compensated ?
both for loss of an asset [land]
& loss of income from the asset [farm produce].

Govt. will be forcibly acquiring land at low prices
for the benefit of the SEZ developers.

Why are SEZs not being developed in the
Interiors away from the Metros / Mini-metros.

[bonddonraj]

india moving towards 9-10% gdp...yet the agiculture has dropped to 2.4% -punjab no longer an agriculture prominanat state ..farmers commiting suicides.....all this alarming issues and on the other hand snatching land from farmers .....!!! india is really in trouble.........i feel somewhere it is ambani -tata etc big fishes game and nothing else.......

[bonddonraj]

A growth rate of 9.4 per cent in 2006-07 is great news, but the challenge lies in keeping it going. There is always a risk of its coming unstuck if agriculture continues to remain a laggard - it grew by just 2.7 per cent in the previous fiscal. Some economists argue that since agriculture contributes just 18.5 per cent of India's gross domestic product, its slow growth will not act as a drag on the entire economy. They are mistaken.

Rural India still accounts for 60 per cent of the country's population, and can vote governments out of power if it perceives that growth is not helping people at large. That could upset policy momentum and business sentiment. Besides, the participation of a large number of people in the market would stabilise industrial demand over time, creating the right climate for investment. While there has been no dearth of suggestions on how to lift agriculture by the bootstraps, there is one problem that deserves overriding priority - Rs 58,000 crore of fruit, vegetables, pulses and grains, or a third of total food produce, is wasted each year for want of storage and marketing facilities. Of the produce that survives, very little is processed, compared to the situation in Malaysia, the Philippines, Brazil and Thailand. It is here that the entry of organised retail can make a huge difference.

It would lead to the creation of large, efficient cold storages, which, in turn, could transform the character of the food processing industry by enabling it to deal in large volumes. At present, food processing is dominated by the small-scale sector, which is not equipped to deal either in volumes or variety of produce. In the absence of storage systems, these units do not operate round the year; yet, it is remarkable that this sector employs about 1.5 million people.

It is often overlooked that the Indian agriculture sector is almost totally private. However, it belongs to the realm of the unorganised sector and as such lacks both capital and organisational skills to maximise returns. What is needed is to create a mutually beneficial synthesis between organised private capital as represented by, say, ITC or Wal-Mart and the amorphous agrarian sector.

The government should play its legitimate role as an honest broker to help both parties work out an advantageous deal for all concerned. This could be done by ensuring that there are no job losses, that food prices are both remunerative and stable, and the small agriculturist is saved from suicidal debt

[arvinmondal0407]

Only time can say. If there are loopholes in the functioning of SEZ's and not properly regulated...its a BANE....

[sandycursed]

SEZ can be a boon if they are strategically placed.government shud sanction only barren land for construction of sez. and it is better to make large sezs than small ones in every state to please the state government.though the government has a lot to lose in terms of revenue this is one source of employment.

[sona45452000]

according to me sez is boon as it will cure the regional imbalances in out country. it happens that certain region of our country r fully developed while others r undeveloped.by declaring sez in undeveloped region v can make that region developed.

[sona45452000]

no doubt big business tycoons are taking advantage of it. but it will prove profitable for the development of our country

[amarsinh]

SEZ is good for country if Politics dont come in between and cultivated land is excluded form it..

[vanitakaushik]

I believe the opposition towards the promotion of SEZ is more of a political gimmick rather than a true sympathetic feeling toards farmers.With thr development of SEZ it si going to add to the Nation's well being.

[kiranbafna]

If they are designed properly then they r alwayz boon.....or-else bane like other projects inititated by govt

[cpswain]

boon yaar.4 a rapid economic growth n inviting more funds we have 2 go 4 it.abt destroying agri lands,we hav 2 make compromies.

[anu shukla]

hey there
the topic is very interesting...
so my views:

SEZ is an option which was supposed to be fr the poor upliftment but has proven to be the richer's upliftment!!!
very well pt made as they shud be actually alloted barren land then agricultural land...
rajasthan has many acres of barren lands!!
abt tax evasion..we shud try out smthing gud!! till nw hw many industrialist are actually paying the tax honestly?..last week tehre was a report as there is nt a single industrialist in list of top 10 tax payers...so there shud be alternates fr that !! SEZ can't be taken as excuse!!!
wat i feel is differentail taxation cud be the solution..dn't let SEZ be tax free..make them pay but let them pay according to their paying capacity..
i guess it shud wrk!!
anu

[redrose_dr]

boon for sure....

[namrata.redekar]

Here I discuss only land acquisition for SEZs – and only for those areas where the ecological consequences and disruptions are tolerable. Equally importantly, local owners of land – whether peasants or tribals – should be freely willing to part with it if offered better economic prospects. Everything else is morally and politically incompatible with an environmental democracy. In other words, none of what follows even enters the pale of discussion if the police or thugs hired through land mafias are used (by governments or corporations) to force people out of their lands – as has happened at Nandigram or is being attempted in places like Jhajjar or Jagatsinghpur.

If SEZs are not shorthand for landgrab…

Why isn’t land being leased from farming and tribal communities by corporations or governments, rather than being bought (or simply taken over forcibly) by them? After all, strictly speaking corporations only need use, not ownership of the land.

The idea came from Jat peasants in Jhajjar, Haryana, where Reliance Industries is trying to acquire no less than 25,000 acres of farmland for one of their two giant SEZs in the country. “SEZ agar bane bhi toh malkiyat hamari honi chahiye” (even if the SEZ is built we must have the ownership),

the modern township of Magarpatta near Pune, built on 400 acres of what used to be farmland till recently – where farmers have been willing to dramatically change their way of life and allow use of their land for the price of a royalty earned in perpetuity (for landowning farmers and their progeny) from the developer. They live in comfortable housing in the township, have been awarded supply contracts of various kinds and their per capita income has increased significantly. All this while their land is on rent to software companies, shopping malls, schools and hospitals. Farmers also have the right to cultivate land which will not be used for some years to come.

It is not a perfect arrangement. For instance, one wonders what has happened to landless farm workers who were employed by the farmers earlier. Have they found equivalent or better employment in the township?

One can also take issue with the fact that fertile agricultural land has been diverted towards industrial use, when there is so much wasteland in the country. At a time when food prices are rising on account of shortfalls in supply and there is some doubt about the long-term food security of the country, one can justifiably criticize the adoption of approaches like Magarpatta’s.

It may be argued in response that a free, democratic society ought to leave the decision about land-use (below a certain quantum) in the hands of the owner. Isn’t it the case however, that millions of farmers across India have begun finding agriculture a poor economic proposition (and have often been driven towards debt and even suicide in the hundreds of thousands) only during the last decade and a half, thanks to hostile World Bank/IMF/WTO-friendly state policies towards agriculture – which have raised input costs for farmers, even as they are having to compete with subsidized grain from the West without the aid of support prices guaranteed by the government? (Free trade as Washington understands and wants it.) For instance, companies like Monsanto are slowly taking full control of India’s seed supply (and costs), thanks to World Bank pressure (often exercised subtly through such institutions as the National Seed Corporation). And public investment in agriculture has fallen sharply under pressure from the IMF to curb public spending (though it doesn’t complain about defence expenditure rising by a shocking 60% during the last four years alone!).

The argument is difficult to knock down. Yet, in a world of third-best solutions, one has to acknowledge that even if it has led to the creation of yet another gated community, what Magarpatta symbolizes is certainly among the more amicable resolutions of land issues in present-day India.

An arrangement like Magarpatta also ensures, especially if land rights are made non-transferable, that no real estate speculation – by Indian or overseas finance capital – can come about. This addresses a major area of concern for critics of the SEZ policy.

[shri]

boon if properly implemented in d country , thts seems impossoble cos of political scenario

[sanjeevkpandey]

SEZ r double edged sword it can wound u if it is not handled with care..as the protests allover the country showing it...thaugh it has potential to promote industrialization n generate employment...but at wt extent it is not clear..even govt keeps on changing its estimates

at this point of time industrial growth is gud ..wt is neeeded is some investment in agriculture..so if some SEZ related with agricultural investment r established it wll really b boon for indian economy

[yk_srk]

SEZ’s boon or bane?
Well I guess one must be thorough with concept of sez, their merits, and demerits before discussing whether sez are boon or bane.
Sez are notified areas which is treated as deemed foreign territory, sez are usually export oriented, and hence contribute to valuable foreign exchange, sez are developed b individual developers, which offers world class infrastructure and other facilities, apart from the govt. support. As India progress and continues its upward march, it is essential that new employment opportunities are generated accordingly. Sez provide such opportunities, it is estimated that a multi project sez in an area of 100 hectares can generate up to 1 lakh direct jobs, and 15 lakhs indirect employment opportunities.
now if we look at the other side, there are some problems also, the first and biggest being the involvement of state in acquiring land, and compensation of farmers and other land owners whose lands are being acquired. State mechanism brings with it the corruption and babudom, however now after the review of sez policy, government has excused itself from the acquisition of land and compensation for land owners, now this is a 2 party affair, the developer and the land owner.
However the size of sez which will be coming in future has been reduced to 5000 hectares maximum. I had gone thru the earlier posts, and somewhere it was mentioned that there is a minimum limit of 10 hectares, as far as I m in touch lastly it was revised to 5000 hectares upper limit, there isn’t any minimum limit. Please correct me if I m wrong.
Now if we compare it to other countries, like china which till now has only 5 sez but the size of sez in china is enormous, for example the shenghai city in china is a sez. Now compare that to 5000 hectare, which will not be sufficient to hold a minuscule proportion of industries operating in shanghai. So there are some bottlenecks to be tackled.
Now the question of boon or bane, if India is to maintain its current GDP rate then SEZ’s are here to stay, because no matter what, agriculture can not generate greater income per head as compared to a fully developed SEZ. However it must be ensured that SEZ are not approved on agricultural land, if this happens then we will be tackling one problem while creating another problem. Thus sez should come on wastelands and developer must ensure that adequate compensation are handed over to land owners, apart from the other guidelines issued time to time by the government

[sanjeevkpandey]

compensation packege is the major cause of voices being raise against SEZs ..if the farmers r not compensated well hw u expect tham to give up thr land..in this aspact new packege developed by Jindal steel is loudable it took proper care of the affected ppl..if such packege is offered ppl will be ready to think about givig the land

[koonzy]

time will say it alll..special economic zones..or special expenses zone

[RAHUL2021]

Its is boon...if the issue is not politicalised,,,,

[rajunair]

It can be a boon if done in a proper manner

1. give proper compensation 2 farmers
2. make farmers stake holder.
3. provide education 2 the farmers family
4.provide emplyoment opps
5. choose land that is not fertile

[thexstuff]

Apart from the big picture of SEZ, another issue that's more worrisome is the land acquisition process. Protests against any land acquisition have been seen in West Bengal and now Maharashtra.The government has to keep itself off from taking the onus to arrange lands for big industrial houses.It already has a lot in its plate. The entry of vested interests leads to further politicisation of matter. So, let the private industries themslves talk to farmers and convince them for land prices and compensation.

[ashooprince]

i think sez is boon for indian economy

[sony2007]

SEZ Zones must be alotted only to Companies with turnover less than 30 Crores annually. If a company exists in SEZ with more than 30 Cr. Turnover then it should be pulled out of the zone. This must be the rules applied. Now the scene is like the Bigger giants are conquering SEZ and leasing it out to small players. This must change.

[jitu.vaishnav]

SEZ is in calcuta by TATA is good because it is comming with the new 1 lakh car for development.

[jitu.vaishnav]

SEZ plan of RIL wheather a BOON or BANE

[jitu.vaishnav]

DOES the SEZ is beneficial for Community which is poor or Does it is a way to earn big profit

[yateeshwahaal]

definitely a boon, for customers get the best, and there are improvements in terms of quality, delivery, service etc. At the end of the day those who pull up their socks and get out of the lethargy that has set in would survive, for the world is not for the losers who refuse to walk without clutches.

[anurag87]

plz help me out this query regarding 2 sez
sez and its different types, benefits derived from sez, india & china comparison in sez

[saurabh1702]

SEZs are a bane.... SEZ who? ;)

[namrataya]

SEZ can only be a boon if-----
1. Government checks upon the fertility of the land...means give only non-cultivable land.....thgh mentioned in ur regulations....easy to get cultivable land...
2.Have a special task force to address the farmer issues in SEZ....see tht they get their rgts...
3. Encourage n reserve some portion of land specially for new undertakings.....whch is nt happening......as 20%cap of old undrtnk can b brgt frwd....n aftr some yrs u can close dwn ur old unit to expand the SEZ unit......

And still many loopholes in ur TAX system.....

[bappadityab]

SEZ ... is a twin edged sword ... which has the potential to generate development ! but often in our endeavour to encourage industrial development we manage to forget the agricultural sector ... Most of the SEZ concentrates on this model of one sided growth n development !!

One should not be blind to the reparcations of the development of SEZ on the farmers and peasants !! With land being their sole source of income and livelihood taken away from dem ... de are forced to take up alternative modes of livelihood that often changes the socio-economic balance in the locality.

Often in our search to faster development and economic growth ... we forget the notion of sustainable development ... which means not only a development which will sustain the future generations but also a model of development which collectively encompasses all walks of life !!

[varunkohli.jim]

each and every thing like a coin has two aspects....
what i think in this topic is negative more than positive....
cauz government when chooses a zone as special economic zone...... companies as usual wants to go there....
and due to this other zones get affected as a point of infrastructure benefits...

i may be wrong but i wanna know how...