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| SPECIAL REPORTS |
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| Gao government in quandary over de-notification of SEZs |
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| With a new government in the center along with a new Minister for Commerce and Industry (MoCI), Anand Sharma, the Congress government of Goa has intensified its request for the de-notification of Special Economic Zones (SEZs) in the state, a matter which has been hanging fire for the past over two years, after massive public agitation against the zones threatened to destabilize the State government.
Goa Chief Minister Digamber has met Kamat Anand Sharma and discussed the issue of the three approved and notified SEZs, which the state government wants the Centre to de-notify at the earliest.
The MoCI had approved about 12 SEZs and had notified three SEZs which had been alloted land by the State Government, but following widespread protests in the state, the MoCI had cancelled the approval of the 12 projects but it had no provision to can a de-notified SEZ.
The three notified SEZ developers, K Raheja, Cipla‘s Meditab Specialties and Peninsula Research & Development Centre have filed a petition in the Goa Bench of Bombay High Court against the Goa government for having cancelled the allotment by Goa Industrial Development Corporation (GIDC) for the Zones.
GIDC had acquired about 3.8 million square meters of land in 2001 from the locals and handed them to the three SEZs for development. Post notification the three SEZs have already invested close to Rs 500 crore but had to suspend their work since the land allotment had been cancelled without any compensation or notification.
The MoCI has already communicated to the State government that there was no provision in the SEZ Act to de-notify, a already notified SEZ and the matter would hang fire unless a change in the act was made.
AS per the act the only way a SEZ can suspend work is when the promoter themselves apply to the MoCI for surrendering their projects along with a convincing case for the same.
The developers have filed a case in the Bombay High Court against the for issuing show cause notice to them seeking to take back the allotted lands.
Kamat has been putting pressure on the MoCI to scarp the notified SEZs, but without any provision in the Act there would he nothing that the government can do about it, however it had sought the opinion of Ministry of Law to suggest some remedies in view of widespread public out cry.
The Law Ministry has recommended addressing the issue of compensation directly with the SEZ developers, who can then consider withdrawing their projects voluntarily.
The new Minister of MoCI has reportedly repeated the same solution with Kamat, but the CM has to discuss the matter in with his other cabinet collogues and the main opposition before presenting the proposal in the assembly after which a communication with the developers can be initiated |
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