Date:22/03/2008 URL: http://www.thehindu.com/2008/03/22/stories/2008032254960100.htm

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Chandy seeks policy on SEZs

Special Correspondent

Says ceiling norms applicable to all current industrial investment proposals

Flays government delay in forwarding applications
Says no cap on investments by government agencies

Oommen Chandy says he is cautious in making remarks

Thiruvananthapuram: Leader of the Opposition Oommen Chandy has urged the State government to formulate a clear cut policy relating to special economic zones (SEZs) in view of the ceiling on land holdings under the Kerala Land Reforms Act.

Mr. Chandy told The Hindu that land ceiling norms would be applicable to all the current industrial investment proposals.

According to the Kerala Land Reforms Act, an individual or corporate body could hold land to the extent of 15 acres.

The usual practice was for the government to grant exemption to the promoters later on a case to case basis.

This procedure was adopted in the case of the Goshree development project, when developed lands were auctioned off, and the Smart City project.

The Industry Secretary had raised the issue by mooting a change in the Kerala Land Reforms Act, he said in reply to a question.

In the case of the HMT land, even if one were to accept the government’s contention that HMT had the right to sell the land, the exemption given to the public sector company cannot be transferred to Blue Star Realtors, which purchased 70 acres from HMT.

The Opposition was demanding the take over of 55 acres declaring it excess land under the KLRA. It staged a walkout in the Assembly the other day in support of the demand.

Mr. Chandy criticised the State government for its delay in forwarding to the Centre applications from various promoters seeking SEZ status for their investments.

The then LDF Opposition had raised a hue and cry over a clause in the Smart City agreement seeking to put a cap on government participation in similar investment projects for five years.

Mr. Chandy said that there was no cap on investments by government agencies and the clause related only to government investments in equity etc.

The current Smart City proposal did not have a cap, but the government’s delay in recommending SEZ status to the other ventures gave a different colour to the issue.

Mr. Chandy at the same time asserted that the government stand on providing recognition to the Smart City project was correct.

He indicated that he was cautious in making remarks because it might have adverse impact on industrial investments.