Vikram Singh Balakishore

SEZ Act and Rules SEZ Scheme – April 2000 SEZ Act 2005 SEZ Rules Feb’2006( First Amendment) March 2007 – Second Amendment October 2007- Third Amendment

SEZ Scheme – April 2000

SEZ Act 2005

SEZ Rules Feb’2006( First Amendment)

March 2007 – Second Amendment

October 2007- Third Amendment

SEZ Controversies and Flaws Land Acquisition Agriculture land acquisition Land acquisition with force- Land grabbing Compensation to the farmers- Land acquisition act 1894 Wide spread riots: Nandigram

Land Acquisition

Agriculture land acquisition

Land acquisition with force- Land grabbing

Compensation to the farmers- Land acquisition act 1894

Wide spread riots: Nandigram

SEZ Controversies and Flaws cond… Loss in revenues to the government Finance ministry estimates 100000 cr of loss until 2009-10 Tax sops to already developed industries- IT One job to the farmer family if eligible candidate is there

Loss in revenues to the government

Finance ministry estimates 100000 cr of loss until 2009-10

Tax sops to already developed industries- IT

One job to the farmer family if eligible candidate is there

SEZ Controversies and Flaws cond… 25% area for processing 35% area for processing 50% area for processing Rest of land – REZ? SEZs in few states- TN,AP,UP,MH,GU,OR and HY Regional imbalances North east region

25% area for processing

35% area for processing

50% area for processing

Rest of land – REZ?

SEZs in few states- TN,AP,UP,MH,GU,OR and HY

Regional imbalances

North east region

Comparison with China SEZs

Proposed Changes to improve the SEZ policy in India Need of safety nets for the deprived farmers Fertile/arable land should not be touched upon

Need of safety nets for the deprived farmers

Fertile/arable land should not be touched upon

New Compensation model for farmers Just like cooperative setups have been through the equity shares, similar concept can be developed to setting up SEZs by sharing the profits to farmers

Just like cooperative setups have been through the equity shares, similar concept can be developed to setting up SEZs by sharing the profits to farmers

Improvements Minimum area requirement for processing is 50% Existing plants with old machinery cannot be moved to SEZ – New machinery is must Everything is not tax free in SEZ No Govt. involvement in land acquisition ( 10 to 30%) New resettlement and rehabilitation policy

Minimum area requirement for processing is 50%

Existing plants with old machinery cannot be moved to SEZ – New machinery is must

Everything is not tax free in SEZ

No Govt. involvement in land acquisition ( 10 to 30%)

New resettlement and rehabilitation policy

Thanks..

Thanks..