NEW DELHI: The Communist Party of India (Marxist) on Friday said the changes in the Special Economic Zones (SEZ) policy were "totally inadequate" and fell far short of what was required.

In a statement here, the Polit Bureau said if the Government went ahead with SEZs in the present form, the matter would have to be taken up in Parliament for amendments to the SEZ Act and Rules.

The empowered Group of Ministers (eGoM) left the "exorbitant and unjustified" tax concessions intact. Consequently, the Government would lose thousands of crores in revenue. The "iniquitous tax bonanza" was one of the basic problems with the SEZ Act and Rules. Without revising these concessions, the SEZ concept would not find acceptance.

Proliferation

Also, the eGoM had not looked at proliferation of SEZs. Pointing out that there was an urgent need to review the type of industries to be set up and apply sector-wise caps, the Polit Bureau said even allowing a maximum of 5,000 hectares (1,25,000 acres) for multiproduct SEZs was "uncalled for."

The minimum size of 1,000 hectares (2,500 acres) for multiproduct SEZs was not lowered; it should be only 400 hectares (1,000 acres) with a ceiling of 2,000 hectares (5,000 acres).

The party disagreed with non-involvement of the State Governments in land acquisition, particularly for larger SEZs. Allowing the corporates to buy large tracts would put small farmers, tenants and agricultural workers at the mercy of land sharks.

Private entities would be able to own, rather than lease, thousands of acres, subverting land ceiling as well as town planning laws. State intervention was necessary to ensure that farmers got a fair price if their land was bought. In the absence of any change in the Land Acquisition Act and a legally enforceable rehabilitation policy, licence to corporates to buy land on a large scale would be harmful.

Await panel report

Accusing the eGoM of ignoring the comprehensive suggestions made by the Left parties, the CPI (M) said the United Progressive Alliance Government should realise that political parties across the board had come out against the present SEZ Act and Rules. As the Parliamentary Standing Committee on Commerce was studying the issue, the Government should await its recommendations and re-examine the matter rather than taking piecemeal decisions.

"Advantage land mafia"

The Revolutionary Socialist Party, which has been demanding that the SEZ Act be scrapped, said the changes would encourage the land mafia. Its MP Abani Roy said private entities would have to depend on the mafia to acquire land, which in turn would lead to law and order problems.

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