Date:05/04/2007 URL: http://www.thehindu.com/2007/04/05/stories/2007040512370400.htm

Karnataka - Bangalore

Government accused of favouring developers

Staff Reporter

Subramanya Naidu

BANGALORE: A question relating to Special Economic Zones (SEZs) during question hour in the Council on Wednesday led the Opposition members to accuse the Government of giving away land to real estate developers from outside the State at throwaway prices.

It began when the Industries Minister Katta Subramanya Naidu told Arvind Limbavali (BJP) that 29 SEZs for the State had been granted formal approval by the Union Government, while 16 other SEZs had been given "in-principle" approval. The Government was developing five SEZs through the KIADB — three in Hassan and one each in Shimoga and Mangalore, he said. Mr. Limbavali and M.P. Nadagouda and Basavaraj Bommai (JD-U) said the State Government was using KIADB to promote SEZs in Bangalore and other cities that were already choked with development projects. Soon, they were joined by Congress members who took Mr. Naidu to task for the clearances given by the high-level committee headed by the Chief Minister for projects that were nothing more than real estate development. "Why don't you sanction SEZs in places like Bagalkot, Belgaum, or Davangere?" Dr. Nadagouda asked.

Leader of the Opposition H.K. Patil said the high-level committee had recently cleared projects granting 1,400 acres in Sarjapur to developers from Mumbai, and another 1,000 acres to a company that was barely two days old.