Is SEZ really a boon for the farmers?

punitparwal

the ruling coalition with its partners, farmers with their state governments and activists against what they call, “people unfriendly” projects that can spin out of control by marginalizing a huge section of poor people. In the last few weeks there has been a lot of political posturing, differences of opinion and stance on the SEZ, as it becomes a hot potato

punitparwal

As Indian growth rates manage to keep its head high above stormy waters, the idea to many seem as one way of boosting the economy, setting up of new infrastructure, helping ancillary units sprout and creating millions of jobs

punitparwal

The idea of setting up Special Economic Zones was mooted in March 2000 as specially demarcated growth centers, to boost exports. It would have special laws protecting it, did not have to pay customs duties on machinery or goods it imported or bought locally.

punitparwal

It would be treated as a foreign territory doing business with various partners abroad

punitparwal

It would have liberal laws as far as labor and foreign investment was concerned. Apart from attractive tax and duty exemptions, it would be allowed to distribute its own gas, power and water. It was touted to have its unique style of governance. In short, be economic drivers.

punitparwal

When it was spelt out, it seemed good as its advocates kept pointing to China that attracted $30 billion in Shenzen, just one of its SEZ’s.

punitparwal

The investment here was more than what all the SEZ’s in India were projected to get. Another SEZ doing extremely well was Pudong, near Shanghai changing the entire skyline. Observers say China attracts nearly $45 billion per year in foreign direct investment compared to India's figures of $2 billion annually as it has used its huge SEZ's to boost its economy. India hoped to replicate it.

punitparwal

The SEZ’s sounded like an unique idea when it was described as being swank with its own malls, restaurants, flyovers, hospitals, golf courses, luxury apartments, recreation centers and even airports or jetties that would jostle to become among the best in the world. The Commerce Ministry says it is a great real estate opportunity for commercial complexes, offices, malls, golf courses and so on.

punitparwal

But SEZ’s need land to build such a massive infrastructure. All the contiguous land that is easily available and connected to the mainland is productive, fertile, agricultural land

punitparwal

Both the centre and the states are eager to acquire this land as they see it as the only way to put up what they think will soon be their economic drivers.