Daijiworld Media Network - Goa (mb)
from special correspondent

Panaji, Jan 1: Succumbing to pressure from anti-SEZ lobby in Goa, chief minister Digambar Kamat on Monday decided to cancel the notification to all the approved special economic zones in the state.

“We are scrapping the SEZ projects in Goa and have asked central government to de-notify the approved economic zones,” said Mr Kamat. Goa has three notified SEZs — a Pharma hub being developed by Cipla’s sister concern Meditab Specialities and two other IT, ITES SEZs being developed by K Raheja Corporation and Peninsula Pharma Research Centre. The state government had also sought permission to set up seven more SEZs, mainly in IT, ITES sectors and allotted over 1,500 acres of land through the Goa Industrial Development Corporation.

However, large scale protest forced the state government to set up an independent agency, Task Force — Regional Plan 2021 (TF-21), to review the ‘viability’ of SEZs in the state. Work at the three approved SEZs was also stopped, prompting Pharma giant Cipla which has invested over Rs 200 crore on the project, to file two petitions against the Goa government, challenging its “verbal order” to stop construction at the SEZ sites.

The company on Monday seemed unwilling to be on confrontationary course. “We have not heard yet from the government, but if this is the case then probably we will have to agree to some monetary settlement. We have spent almost two years on this project,” said Cipla CEO Amar Lulla. The Kamat government is said to be studying legal modalities to reach some sort of compromise with the companies which had made investment to develop SEZs here.

The task force, which was assigned to study developing SEZs in Goa, on Sunday observed that SEZs were not the right mode of development for Goa. “It does not match the talent skills available in Goa and hence will only further burden the existing infrastructure. We do not think it will create any employment in state,” said noted architect and vice-chairman TF-21, Charles Correa.

The issue of developing SEZs in Goa has been under the scanner for many months now with local villagers alleging misappropriations in land sale to real estate majors for setting up malls in state. The matter further gained prominence during the parliamentary by-elections held last November when political parties including ruling Congress and opposition BJP in Goa expressed anti-SEZs views in state. Local Church, known for its dominance over the minority community, had also urged people to protest against SEZs here.

Additional news from agencies:

Even as the Goa government on Monday decided to scrap all 12 exclusive special economic zones (SEZs) in the state and recommended to the Centre the denotification of three zones, the commerce ministry officials warned that the state government would have to deal with the probable “legal” consequences of the decision. 
 
“We will write to the Centre to scrap the eight proposals pending for approval while we will not notify the four (SEZs) that are already approved. About the rest three, we will take up the matter with the Centre to denotify them,” said Chief Minister Digamber Kamat. 
 
The recommendation means that investments worth more than Rs 4,600 crore in seven formally approved zones will not come in. These zones have land in their possession. 
 
“It is for the state government to decide and face consequences. The Board of Approval (for SEZs) gave its nod only after the state government’s recommendations. Some developers have already started construction and may want their money back,” said a commerce ministry official. 
 
Significantly, Goa is the first Congress-ruled state to go back on SEZs. Other states which have seen trouble over SEZs include West Bengal, Maharashtra and Haryana, mainly because land-owners protested against land acquisition for the zones. 
 
In contrast, the protests in Goa are spearheaded by ordinary citizens who fear for the future of a territory that is an idyllic tourist getaway. 
 
“The citizens of Goa, bothered by the infrastructure crunch, took forward the anti-SEZ movement, while in Maharashtra and Haryana, it’s the land-owners who are leading the protests,” said Manshi Asher, a civil activist and an independent researcher on SEZ-related issues. 
 
According to Asher, the genesis of the movement lay in the Goa Regional Plan of 2011, which was criticized widely and led to the resignation of Town and Country Planning Minister Atanasio Monserrate in January 2007. 
 
“Subsequently, Goan citizen groups, which were vocal against the regional plan, focused on SEZs and their impact on infrastructure and environment, which were already under pressure because of tourism and mining,” added Asher. 
 
Over and above, there were concerns on immigration of people from other states, he said.