Monday, March 10, 2008

SEZ + Labor Migration - A concern

Last month, the Board of Approvals withdrew applications for setting up 8 SEZs in Goa, while the 12 SEZs that had previously received formal/in-principal approval in Goa have been given show-cause notices. The reversal of central policy is the first instance of its kind, and follows widespread protests over the influx of labor migration and the strain on infrastructure facilities. In addition, the fate of 3 SEZs that have already been notified also hangs in balance until the centre completes formal talks with the Goa government. The 3 notified SEZs include Cipla’s Meidtab Specialities, Raheja’s IT/ITeS SEZ and Peninsula Pharma’s biotech SEZ.

SEZs have courted much controversy since the SEZ Act 2005, supported by the SEZ Rules that came into effect in Feb 2006. Protests (notably in Nandigram in W Bengal), have primarily been on
account of protests due to land-rehabilitation policy and resulted in several amendments related to size, processing area, forex earnings and the role of state.

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