| Issue 24 Vol I, September 30, 2006 | Archive |
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Capitalists sharks as land grabbers
India's Foreign Trade Policy announced:
By March 31, 2005 there were eight functional SEZs with 811 units in them including private sector. The Government had a lead role in the setting up of free SEZ. Special windows were created under existing rules but there was no definite enactment by way of Central or State Act. In June, 2005 the central government enacted Special Economic Zone Act, 2005. The States followed by enacting their own laws. Special Economic Zone (SEZ) is a geographically demarcated piece of land where all the units which are set up get specific privileges. SEZ Act, 2005 travels beyond its scope conceived in 2000 Foreign Trade Policy. It gives a long hand to the developer and allows him to travel afar the original idea. The developer has been given a right to identify an area of his choice and the extent of the area he may wish to acquire. After identifying the area of his choice he is simply to provide particulars of the same along with the names of the persons owning the land the proof of their ownership. The state government then notifies the specifically identified area in the state as a SEZ with freedom to include such further area as may be required to be part of it and any goods or services exported out of or imported into or procured from the domestic tariff area (i.e. rest of India) by a unit in a special economic zone or a developer shall subject to such terms, conditions and limitations as may be prescribed be exempt from the payment of taxes, duties or cess under all enactments specified in the schedule. SEZ can be multi product sector specific/Port/Airport/Service, sector specific/ IT/gems and jewelry and free trade and warehousing zone. The land is acquired under the provisions of the Land Acquisition Act for public purpose and can be for any private company. Earlier the land for private company could be acquired if needed for a public purpose but by an amendment in 1984, acquisition for a company was specifically added to the section. The questions which are matter of concern relating to acquisition for SEZ are how much land should be acquired. should it be the wish or discretion of the developer to identify any area may be 100,00 or one lakh acres whereas the rules specify the minimum land area which is required for the setting up of the SEZ such as for a multi product SEZ 1000 hectares, for sector specific/Port/Airport services 100 hectares and for trade and warehousing zone 40 acres. The attempt of the private developers is to identify area size of their choice. Secondly, the fate of oustees from such lands and the non-agriculturists living in villages dependent upon agriculture land directly or indirectly is nobody's concern. Thirdly, the price to be paid to the landowner is as per government records and not the market price. The sale deeds executed by private parties are at much lower than the actual price. Acquisition Collectors and the courts calculate the compensation on the basis of the registered sale deeds. Prime agricultural land is being tipped for creation of SEZs. The purpose for which the land is being acquired in the name of the Special Economic Zone travel much more beyond the original conception of promoting export, foreign trade and industrial production. These are, in fact, Special Real Estate Zones and reek with corruption. Although the law provides in the case of an acquisition for a company that the company should first make an effort to purchase land from the landowners directly. In the event such effort having failed, the collector certifying by a report that purchase of land by mutual negotiation by the company of original prices has failed, the process of acquisition u/s 4 of the Act can to start. This is subject to the objections by the landowners u/s 5A. All these provisions are being ignored. There is hue and cry in whole of India and voices of resentment and retaliations by the oustees are gathering a momentum force the authorities to have a second thought of it. The concept of economic zones originally intended to be on China's pattern has deviated from significantly. Public sector in China also had at one time gone slow, damp and uneconomical, leading to a thought process, to close it down, a reversal of ideology not to be digested without a pinch of salt. It would have been better to provide an incentive to the farmers by taking their land on lease, giving some return against it instead of acquiring the land absolutely. Joginder Singh Toor, Advocate, jogindersingh_toor@yahoo.com |
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Farmers and Trade Unions Challenge SEZ near Mumbai OVER 50,000 farmers from the Pen-Panvel tehsils of Raigad district in Maharashtra, near Mumbai, called for the do away with the Special Economic Zones (SEZ) by the Government of India, in a massive rally on September 21 (Thursday) and condemned the nexus between the corporate company reliance and the Maharashtra government. On the same day, over 25 trade unions in Pune area opposed the 'anti-farmer and anti-labour SEZ policy and projects. “It is pure and simple land-grab by the rich corporate powers, builders and real estate owners in the name of export and economic activity'. According to Sanjay Sangvai, Sampat Kale and Ulka Mahajan, “the rally from Kharghar near Panvel to Konkan Bhavan in CBD-Belapur was organized by various farmers' organizations in Raigad district, including the Peasants and Workers' Party, Pen Panchkroshi Shetkari Bachao Parishad, Anti-SEZ People's Struggle Committee of Maharashtra and others. The unprecedented rally, held in the neighbourhood of the 'financial capital of India ', in which the farmers gave a warning in no uncertain terms against usurping their lands. They opposed the acquisition of their lands, and the tax concessions of billions of rupees and winding of the laws of land for the sake of corporate powers. Comrade Sitaram Yechury, the General Secretary of the Communist Party of India (Marxist), listed down the ill-effects and demanded 'rethinking' of the SEZ Act on various counts. However, the farmers and other villagers rejected outright the SEZ and its politically strong corporate-promoter, the Reliance Company of Mukesh Ambani. Ambani brothers are darling of Government and the ruling elites in India, including the Ministers, Chief Ministers and even the Prime Minister along with all the political parties of this country are eager to placate the corporate czar. No wonder the Ambanis are offered 25,000 acres in Haryana, 3000 acres in Uttar Pradesh, about 1,000 hectares in W. Bengal and about 12,000 hectares in Maharashtra.” In the rally the people poured their scorn on the Reliance Company in choicest abusive words and demanded throwing out the Company from area. The villagers ire was not without reason, as had to undergo the continuous attempts to divide their villages, incite dissensions, feuds in the communities and thus disturb the harmonious relations within the area by the paid agents of the Reliance Company, to make the people to give away the land. It was evident that despite the attempts by the agents of the company, the people were steadfast in their resolve and were not afraid to come out to speak. In Akurdi, an industrial suburb near Pune, over 25 trade unions held a day-long meeting to protest against the SEZ and demanded to the state government and the corporate giants to stop all the activities of land acquisition or setting up of their units. The workers came heavily down upon the non-application of labour laws in the SEZ areas. “It is the contempt of the Indian Sovereignty, Indian laws and rights of farmers and workers along with the large land-grant by the government for the corporates. It is the extension of the neo-liberal Globalization' contended the senior leader of Communist Party of India (CPI) Mr. Govindrao Pansare. Pimpri-Chinchwad Municipal Corporation Employees' Union, Bajaj Auto Employees' Union, CITU, AITUC and TUCC along with various trade unions of various industrial units supported the resistance to the SEZs. Meanwhile, various representatives of people's organizations and prominent person’s janded out a memorandum to the Union Ministry of Industries and demanded repeal of the SEZ Act "in the light of the undemocratic nature of its conceptualisation, adoption and severe implications it has on marginalised groups." They alleged that the SEZ policy tilted heavily in favour of corporate houses by providing tax holidays, minimum environmental regulations and no labour laws. The delegation included Rajender Sachar of People's Union of Civil Liberties, noted journalist, Kuldip Nayar, jurist Prashant Bhushan, Rajendra Ravi of NAPM, Rifat Mumtaz of National Centre of Advocacy Studies, Kanchi Kohli of Kalpavriksha and others. Reflecting similar views, CPI national executive adopted a resolution demanding a halt to the creation of SEZs, re-examination of the SEZ Act and amendments to the Land Acquisition Act. It said, "These fenced off tax exempt and labour laws exempt enclaves will be deemed foreign territory for our own citizenry and only the dictates of the SEZ foreign authority will apply," the resolution said. "This is veritable loot sanctioned by the government.” |
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IN
March, 2000 the then Union Commerce and Industry Minister Late Murosoli
Maran visits China to get first hand information about the functioning of
the Special Economic Zones. This leads to the announcement of Special
Economic Zones in India through the Annual Export Import (EXIM) Policy in
March 2000.