The government is considering bringing in changes to the controversial SEZ act. CNBC-TV 18 learns the government may incoporate new provisions to disallow SEZ developers from taking on ownership of land acquired through state governments.
Land woes for corporates keen on setting up Special Economic Zones could continue for some more time. Thats because the government is considering changes to the SEZ Act. High level sources in the government say that the Empowered Group of Ministers could specify unambiguous provisions in the Act regarding usage of land for SEZs.
The EGoM is likely to specify that ownership for land acquired by state govts for SEZs not be transferred to the developer. Instead, land could be leased out to the developer on a long term basis with adequate provisions provided for extensions in the lease deed.
Thats not all. Sources say the govt may also make it mandatory for developers to seek state govt approval to purchase single crop agricultural land. The Board of Approvals for Special Economic Zones could also be asked not to give approvals for SEZs if the project is not backed by the respective state government. The Commerce Ministry has already issued a circular to state govts advising them not to acquire land for Special Economic Zones or other industrial projects.
The govt may ban multi crop land for SEZs under the revised act. Sources say the issue of capping the number of SEZs could also be revisited by the EGoM when it meets next.
CNBC-TV18 also learns that the notification to cap the size of an SEZ at 5000 hectares will be issued shortly. The GoM on SEZs had decided this earlier but the board of approvals has to clarify this on a case to case basis in the absence of a notification .
Apart from the Mahamumbai SEZ, there are at least 3 other SEZs for whom size is now a problem. DLF's SEZ in Gurgaon with an area of 8097 hectares, Omaxe's Alwar SEZ with an area of 6070 hectares, and RIL'S Jhajjhar SEZ in Haryana which is almost 10000 hectares.
Land woes for corporates keen on setting up Special Economic Zones could continue for some more time. Thats because the government is considering changes to the SEZ Act. High level sources in the government say that the Empowered Group of Ministers could specify unambiguous provisions in the Act regarding usage of land for SEZs.
The EGoM is likely to specify that ownership for land acquired by state govts for SEZs not be transferred to the developer. Instead, land could be leased out to the developer on a long term basis with adequate provisions provided for extensions in the lease deed.
Thats not all. Sources say the govt may also make it mandatory for developers to seek state govt approval to purchase single crop agricultural land. The Board of Approvals for Special Economic Zones could also be asked not to give approvals for SEZs if the project is not backed by the respective state government. The Commerce Ministry has already issued a circular to state govts advising them not to acquire land for Special Economic Zones or other industrial projects.
The govt may ban multi crop land for SEZs under the revised act. Sources say the issue of capping the number of SEZs could also be revisited by the EGoM when it meets next.
CNBC-TV18 also learns that the notification to cap the size of an SEZ at 5000 hectares will be issued shortly. The GoM on SEZs had decided this earlier but the board of approvals has to clarify this on a case to case basis in the absence of a notification .
Apart from the Mahamumbai SEZ, there are at least 3 other SEZs for whom size is now a problem. DLF's SEZ in Gurgaon with an area of 8097 hectares, Omaxe's Alwar SEZ with an area of 6070 hectares, and RIL'S Jhajjhar SEZ in Haryana which is almost 10000 hectares.
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