The resettlement and rehabilitation policy, recommended by a group of ministers will have a positive impact on the 183 proposed special economic zones that are yet to acquire land but have received approval in principle.

Another 264 SEZs, the majority of which have not acquired land and are yet to be considered, will also benefit.

This is because a key recommendation of the GoM is that states be allowed to acquire up to 30 per cent land for private sector industrial projects to meet contiguity norms, but only when the private developer has acquired the rest.

This marks a jump from an earlier proposal restricting acquisition by the state to10 per cent and will allow state governments to help SEZ promoters acquire larger chunks of land at better prices.

"The recommendations will have a prospective impact," Commerce Minister Kamal Nath, a member of the GoM, said on the sidelines of a textile summit. "The conditions of the proposed R&R policy that apply to other land acquisitions will also apply to SEZs," Nath added.

The GoM has also suggested a one-time package for those who lose land plus a premium of up to 60 per cent on the market value of the land.

Analysts say the GoM recommendations are good news for SEZ developers. "Now, projects will not be held to ransom if some landowners refuse to sell their land. A one-time settlement will benefit developers, but it remains to be seen how the recommendations translate into black and white," said Deepak Dhanak, senior manager, PricewaterhouseCoopers.

"The 70:30 formula is a step in the right direction. The next question is when we will see the policy being implemented," said Ajay Nijhawan, chairman of an association of SEZ developers.

The Cabinet is expected to consider the proposals on September 6. Commerce ministry officials maintain the developers already buy land without state intervention.

"There are at least 40 different models that are being used by developers to procure land since states have restricted their ability to acquire land for SEZs," an official said.

India's great rush for SEZs