CPI(M) wants Centre to change SEZ Act | india | Hindustan Times
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CPI(M) wants Centre to change SEZ Act

india Updated: Sep 13, 2006 21:55 IST

The CPI(M) on Wednesday asked the Centre to modify the SEZ Act in line with the West Bengal model, where 50 per cent of the space was reserved for industry and processing, 25 per cent for industry-related infrastructure and the balance for real estate development and housing.

Speaking to reporters at the end of two-day Politburo meeting, CPI(M) General Secretary Prakash Karat said that due to opposition by the party, the Centre had formed a group of ministers, which suggested that the size of the processing zone should be increased from 25 per cent to 30 per cent, and the balance for real estate.

He said the party was of the view that this was not sufficient and CPI(M) wanted that 50 per cent of the space must be reserved for industry and processing.

"We want the Centre to change the SEZ act," Karat said.

Karat said that large tracts of land were given to promoters for multi-product SEZs and in those cases land was acquired from farmers without giving them due compensation or provisions for livelihood.

He also said that wholesale tax exemption, which was granted to the SEZs was adversely affecting the government's revenues.

Other features of the act, which included setting up of an international financial centre would also undermine the sovereignty of the country, Karat said.

"We are taking up the matter with other political parties which have expressed similar concern over the provisions of the act," Karat said.