Over 10% double-cropped land can't be acquired for SEZs

In the midst of farmers' protests against land acquisition, the government today said an SEZ could not meet over 10% of its site requirement from the double-cropped land.

In a written answer in the Lok Sabha, Minister of State for Commerce and Industry Jyotiraditya Scindia said that though land is a state subject, any proposal for special economic zones (SEZs) violating the norms will not be granted approval by the Centre.

"If perforce a portion of double-cropped agricultural land has to be acquired to meet minimum area requirement especially for multi-product SEZs, the same should not exceed 10% of the total land required for the SEZ," he said.

While the condition, imposed by a Group of Ministers, has been in force since April 2007, the government reiterated it today in Parliament in reply to a question whether agriculture land has been diverted for SEZs.

Scindia said that 82.3% of the land for 381 SEZs notified by the Commerce Ministry is barren, waste, dry or industrial.

Only 15% of the land acquired for the notified SEZs is single-cropped and just 2.7% of the acquisition was in regard to the double-cropped sites.

Land acquisition has become a major challenge for the industry in the last few years in the wake of farmers' agitation in several states like Uttar Pradesh, West Bengal, Maharashtra and Haryana.

On changes in the SEZ policy, Scindia said government has been receiving reports of shifting units from one SEZ to another.

"It has been decided by the Board of approval that in principle there is no objection for such shifting. However, all proposals...Must be placed before the Board for its consideration and decision on merits," he said.

Up to July 30, 2011, an investment of Rs 2,12,914 crore has been made in SEZs which generated direct employment for 7,14,412 persons.

In 2010-11, exports worth Rs 3,15,868 crore have been made from these zones, he added.