New SEZs Not Likely To Have Golf Courses, Amusement Parks

The government is looking at coming out with new rules for housing and recreational activities in upcoming SEZs. Large-scale recreational activities, such as construction of golf courses and amusement parks, may not get approval in new SEZs. Also, only 25% of the approved housing may be allowed during the initial phase, with the remaining construction being permitted in phases depending upon the progress made by the SEZ developer. The changes are likely to be incorporated in the rules for setting up SEZs, a government official said. The rural development ministry is also in favour of the proposal as it would limit land requirement for projects. Due to widespread farmer unrest and violence, the government wants to tread cautiously while allocating land for SEZs. According to the proposal, setting up of golf courses or other recreational facilities with large land requirement may be included in a negative list of activities permitted in a SEZ. The entire land acquisition for SEZs would also be undertaken by limiting the minimum area of land for core functions and a small portion for allied functions. The changes may also require an SEZ promoter to construct just 25% of the approved housing for the project in the first phase. The approval for the remaining construction may be given in three phases depending upon the development of the SEZ. The changes are likely to be included to restrict land requirement for non-core functions. The proposed authority would first vet land requirements suggested by a SEZ developer before forwarding it for approvals. Non-core activities, such as setting up recreational facilities, may be axed at this stage.