Orissa to use farm land for SEZs

The Orissa government has ruled out complete exclusion of agricultural land in setting up of special economic zones (SEZs) in the state while promising that acquisition of farm land for these projects will be kept to the bare minimum.

"If we will not part with some agricultural land for industrial projects, the process of economic development in Orissa may be affected," said state industry minister Biswabhusan Harichandan.

Replying to members questions in the state assembly today, Harichandan said, the government has decided not to acquire agricultural land for SEZ to the extent possible.

Clarifying on the proposed SEZ of Posco at Paradip, he said, the project involved only 500 acres of agricultural land.

However, the government is looking at various options to reduce it, he observed.

Responding to another query on encouraging SEZs in the non-core high tech sector, he said, the state government will also give preference to the SEZs in the non-steel sector.

The industry minister said, in Orissa till date one SEZ has been notified, while 6 SEZs have received formal and 6 more in-principle approvals from the Board of Approval (BOA) of the Union commerce ministry.

Among the MoU signed companies, one SEZ project on stainless steel and ancillary and downstream industries, to be developed by Jindal Stainless at Duburi, has received formal approval from) of the union government.

Four other MoU signed projects have received the in-principle approval.

They are sector specific SEZ-aluminium with CPP at Lapanga (Sambalpur) to be developed by Hindalco Industries, Sector specific SEZ-aluminium with CPPat Jharsuguda, developed by Vedanta Alumina , Multi-product SEZ at Paradeep, proposed to be developed by Posco India Private Limited and Sector specific SEZ -textile (Choudwar) to be developed by Welspun Group.

Harichandan said, SEZ developers and industries coming within the SEZ area will get the benefit as per the provisions of the Central SEZ Act.