October 11, 2008

Centre may allow states to acquire 50% land for SEZ

Exim News Service reported that union government is considering a proposal to allow states to intervene and acquire land on behalf of special economic zone developers to the extent of 50% of the total land, as long as the SEZ developer manages to purchase the remaining 50%.

The concerned state will, however, need to convince the centre that the SEZ is absolutely necessary for the economic development of the state. In special cases, the state governments could intervene in backward areas of the state, where a SEZ could help create employment and economic activity.

It may be noted that in April 2007, land acquisition by state governments on behalf of private developers of SEZs was banned. However, now the government is reviewing whether exceptions can be made nationally to promote economic activity in the backward regions.