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eGoM to reconsider SEZ land ceiling limit
 
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January 29, 2008 09:51 IST

An empowered group of ministers (eGoM) will consider early next month whether it can relax the 5000 hectare land ceiling for SEZs - a move that, if approved, will benefit major players like Adani, Reliance Industries [Get Quote] and DLF.

The commerce ministry has placed the proposal for relaxation of the ceiling for multi-product SEZs before the eGoM, headed by External Affairs Minister Pranab Mukherjee, scheduled to meet in New Delhi on February 4, according to sources.

Adani, Reliance Industries, DLF, Omaxe and Singapore-based Ascendas Group had plans to set up mega multi-product SEZs, with some of them having infrastructure like ports and air-cargo complexes.

The eGoM had, in April last year, imposed a ceiling of 5000 hectare for setting up SEZs following widespread protests against land acquisition.

The commerce ministry has now come out with a fresh proposal for reversal of last year's policy, citing the Resettlement and Rehabilitation Policy and amendments to the Land Acquisition Act 1894, which protect interests of land owners and others displaced by the SEZs.

The ministry is pitching for big developers who want to take advantage of the economies of scale with in-built infrastructure like ports and cargo complexes. These advantages may not accrue if there is a cap on land that can be acquired for such projects.


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