He rejected criticism that the policy was pro-realtors, but maintained the government was open to changes if the need arises.
The policy, unveiled early this week, introduced the concept of Integrated Industrial Areas (IIAs). This provision allows developers of denotified SEZ projects to utilise 40% of the land in their possession for residential and commercial purposes. As much as 27,000 hectares will be available for IIAs under the new scheme.
However, the government can't do anything if developers back out of a special economic zone (SEZ) despite new provisions, Chavan told reporters here last night.
The policy has a "human face" and aims to improve the living style and standards of industrial workers with walk-to-work concept, Chavan said.
"So far we only talked about job creation, which was just a number. Workers continue to live in sub-human conditions in the slums around industrial estates as nobody bothered about facilities for them.
"In a paradigm shift, the new policy will encourage creation of standard social infrastructure along with industrial estates. It will help in improving the lifestyle of workers as well middle-level management," he said.
Chavan said the social infrastructure included all types of urban amenities. It can be anything – from a club house to a crematorium - that can be used by workers and others residing in the vicinity of industrial estates.