M'rashtra moots review of SEZ policy

Asking state government to take the review of special economic zone (SEZ) policy, state planning commission has observed SEZs will lead to an imbalance growth in the state.

Executive chairman of the Maharashtra's planning commission Ratnakar Mahajan released the outline of the targets state wishes to achieve in the 11th plan.

Out of 400 odd SEZs coming up in the country maximum are coming up in Maharashtra. Around 73 SEZs are proposed in the state, out of which 48 have so far received an in-principle approval from the state government.

In this backdrop, a negative comment on SEZs from the state planning commission is going to provide much needed ammunition to opponents of SEZs.

Most of the SEZs are coming up in the golden triangle of Mumbai-Pune-Nashik, which is already better developed area compared to other parts of the state.

With the forthcoming SEZs in these areas, it is no doubt state's industrial growth will be multifold, but it will create further regional imbalance in the state, says the chapter on the SEZ.

It also observes, with industries in SEZs enjoying various tax benefits and relaxation in labour laws, industries from SEZs will have monopolise the exports. This will hamper the growth of industries outside SEZs.

However, most startling observation in the report is, "The country already has foreign exchange reserves of $180 billion and it is finding it difficult to manage it. So, the argument for earning foreign exchange through SEZs does not hold water."

Replying to a barrage of questions from reporters, Mahajan maintained, "Planning commission is a think tank and it is our mandate to give advice to the state government on various socio-economic issues. But it is up to the government, whether to accept or not to accept, our advise".