eGoM meeting on SEZs cancelled

A meeting of the empowered group of ministers on SEZs, which was scheduled in New Delhi for Monday to review the 5,000 hectare land ceiling on the tax-free zones, has been cancelled.

The meeting of the eGoM, headed by External Affairs Minister Pranab Mukherjee, was believed to have on its agenda the proposal to review the land ceiling that was imposed last year in the wake of widespread protests over land acquisition.

A commerce ministry spokesperson cited no reason for the cancellation of the meeting.

The 5,000 hectare threshold had come as a setback to the mega SEZs plans of Reliance Industries, DLF, Adani, Omaxe and Ascendas, which wanted to set up multi-product SEZs with in-house infrastructure facilities like ports.

Other issues which could have figured in the discussions included the inter-ministerial differences on tax benefits to developers of the SEZs.

The government has so far notified 193 SEZs and given formal approval to 404 zones.

India's great rush for SEZs