Bengal CM Feels The Need For Fresh Look At SEZ Policy

New Delhi: West Bengal Chief Minister Buddhadeb Bhattacharjee strongly feels that the policy on the zones needs to be reviewed. He has called for a need to limit the number of sectors eligible for setting up Special Economic Zones (SEZs). Speaking at the National Development Council meeting held here, Bhattacharjee said that Industry groups to be covered under the scheme should be identified in the first instance instead of extending it to all and sundry.

At present, there is no limitation on any industrial sector to set up the tax free zones. The government has formally approved 232 SEZs. In addition, 172 have received in-principle approvals. Bhattacharjee''s statement comes against the backdrop of widespread unrest in West Bengal over land acquisition for industrial projects. Significantly, the state has 16 formally approved SEZs while an equal number have got in-principle approvals. Bhattacharjee also vouched for upper limit on the area of SEZs. Currently, there is a 5,000 hectare cap on the maximum area of the zones.

Recently, speaking at the India Economic Summit, Commerce Secretary Gopal Pillai had said that the maximum area on the SEZs could be relaxed according to implementation of the new Relief and Rehabilitation policy and the amended Land Acquisition Act. The CM also called for proper demarcation of processing and non-processing areas within a zone. The present SEZ Rules mandate 50 per cent of the area to be used as processing zone.