Date:19/09/2008 URL: http://www.thehindu.com/2008/09/19/stories/2008091950210100.htm

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Exemption on SEZ norms unlikely

N.J. Nair

State wants 70%
of the area for
industrial purposes
21 applications awaiting clearance from State

THIRUVANANTHAPURAM: The Centre is unlikely to approve the State government’s request for granting exemption on the norms for setting up Special Economic Zones (SEZs) in the State.

Official sources told The Hindu that the Centre had elicited the views of the State government while framing the Special Economic Zones Act, 2005. But the previous government had failed to respond in time. Subsequently, the LDF government had sought some exemptions in 2007 considering the unique features of the State, but these have not been granted, sources said.

As per the existing norms, the allocated land for setting up the zones should be equally divided for industrial and residential purposes. The Industries Department had put forth a proposal to the Centre to fix the limit at 70 per cent and 30 per cent.

The State government had also sought an exemption in the condition that multi-product zones could be set up on a minimum of 2,500 acres of land and product-specific zones on 250 acres. The department had sought restriction of these conditions to 1,000 acres and 100 acres respectively, given the density of population and scarcity of land in the State. The Centre is understood to have ignored all the requests since it was submitted after framing of the rules, sources said.

As many as 21 applications are awaiting the clearance of the State government.