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Cipla's pharma SEZ runs into trouble in Goa

8 Dec, 2007, 0021 hrs IST,Smitha Venkateswaran, TNN
PANAJI: Pharma giant Cipla’s plan to develop an SEZ in Goa received another serious jolt on Friday when the north Goa collector ordered removal of all machinery from the site after villagers stalled work for the second time. Following the incident, Cipla CEO Amar Lulla said the company was considering all options, including shifting the plant out of Goa.

“For now, we have requested the company to stop work. We will meet all concerned parties, including those opposing the SEZ, before taking a final decision,” top official from north Goa collector’s office said.

Earlier in the day, nearly 500 people from neighbouring villages had gathered at the site of Cipla’s upcoming SEZ at Keri in south Goa, demanding the immediate closure of the proposed site. As the things appeared to be getting out of hand, the police intervened and promised the agitators that no work will be allowed to carry out at the site.
“We shall keep an eye to see work does not resume again,” said Franky Monteiro of the People’s Movement against SEZs (PMS), a body fighting against SEZs in the state. Goa Bachao Abhiyan, which was instrumental in the government de-notifying the controversial Regional Plan 2011, has also joined the agitation against SEZs.

Cipla, which has been expanding in a major way in Goa, has invested over Rs 500 crore for developing a pharma SEZ in over 12 lakh sq mt. The investment was made through Cipla’s sister concern Meditab Specialties. Earlier in October this year, the company faced similar large scale protests when villagers stalled the work demanding closure of the proposed project. Cipla is now re-considering their plan.

“Work has been stopped even after we have obtained all legal permissions, we have to review this situation. We might move out of the place, may be even out of Goa,” said Mr Lulla. The company plans to meet chief minister Digambar Kamat later this month before taking a final decision.

Goa had sought permission to develop 15 ‘non-polluting’ SEZs in the state, mainly catering to IT & ITES sectors. The Centre has already granted permission to develop seven SEZs in the state, while permission for the remaining eight are being processed. But now, owing to the public outcry against economic zones, the state government has “put on hold” permissions for the eight SEZs.

The Goa government has also formed a sub-committee to study in detail all aspects of the special economic zones. A final decision on developing SEZs in Goa is likely to be taken by mid-January.

The sub-committee will also carry out an impact assessment study to understand if SEZs are really good for Goa. The committee will interact with the commerce ministry before taking a final decision on establishing such economic zones in Goa, said chief minister Digambar Kamat, who heads the sub-committee.

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