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GOVT SCRAPS SEZS

NT Staff Reporter

Panaji, Dec 31 Virtually giving into the demands of the Congress party, alliance partners and all those opposed to special economic zones, the Congress-led alliance government today decided to scrap them, stating that they were not feasible in the present form.

Addressing a press conference late in the evening, the Chief Minister, Mr Digambar Kamat said that after deep thought and discussions the state government has decided “to do away” with the SEZs in the present form and urge the Union commerce ministry to take necessary steps in that direction.

The Home Minister, Mr Ravi Naik, the South Goa Member of Lok Sabha and Goa pradesh Congress committee, Mr Francisco Sardinha and the Chief Secretary, Mr J P Singh were present during the press conference.

The Chief Minister also said the government would write to the Centre urging it not to process eight recommended SEZs -- that had been kept on the hold -- besides requesting it not to notify the four others approved ones, as the powers were vested in it (Centre). He further said the state would also urge the Centre to denotify the three notified SEZs.

Mr Kamat also stated that as promised he held consultations with the cabinet committee on infrastructure, with the party officials and alliance partners -- the Nationalist Congress Party and the Save Goa Front – and all others concerned before arriving at the decision to do away with the SEZs.

He said the Congress party panel on SEZs had also in its interim report submitted today had strongly recommended that they should be scrapped as they were not in the interests of the state. It has also recommended abolition of SEZ policy – 2006 of the Goa government in existing form.

Stating that different views emerged during the course of discussions on SEZs with various parties, the Chief Minister said the government would deliberate on them later.

Among the views expressed during deliberations were that SEZs could be allowed to be set up on private lands, while some recommended smaller SEZs, he said adding that the government would deliberate on them at a later stage.

He also said that there was another recommendation that the government should enact a law to prevent sale of land to the outsiders on lines with the one existing in Uttaranchal and Himachal Pradesh and the government would study the matter before taking a decision on the issue. Another recommendation made by the party was not to acquire land for private entrepreneurs, he added.

Replying to a question whether his cabinet has approved the government decision, he said that there was no need to go before the cabinet, as the decision to approve the SEZs was not taken in the cabinet earlier. He, however, said the cabinet on June15, 2006, had approved the SEZ policy and that it would be thoroughly debated in due course of time.

The SEZ study committee set up by the Goa pradesh Congress committee has, in its interim report, has stated that special economic zones were not in the interest of the state and that the government should not go ahead with them, even as it has recommended scrapping of SEZ policy – 2006 of the state government.

The five-member committee headed by Mr Subhash Shirodkar has in its report stated that SEZs in present form were detrimental to the development of the state and would choke the economic structure and put undue strain infrastructure. The committee has also stated that SEZs would require large chunks of land, and permitting them in the light of scarcity of land in the state was not advisable. It has also said that promotion of SEZs would give back-door entry to the real estate sharks, which in turn would hamper the activities of the genuine real estate developers in Goa and adversely affect state’s socio-economic indicators.

The committee has expressed fears that in absence of labour force in the state there would be influx of around 5 lakh non-Goans if SEZs were permitted in the present form. This would create stress on accommodation. It has also stated that the state government would have no control over the recruitment by the promoters of SEZs. The Goans would not get benefit of SEZs, it has said.

The huge influx of people from outside would submerge the identity of Goans, if the SEZs were permitted states the Congress panel report adding that it would lead to destruction of social fabric of the state, besides creating social and law and order problem in Goa.

The Congress panel has also said the state government should have made a detailed study of the available and potential human resources in Goa before implementing the SEZ policy, which it has concluded was not in the interests of Goa and Goans.