Goa scraps SEZ policy, at last

HERALD REPORTER, PANJIM, JUNE 15
Finally, the controversial Special Economic Zone (SEZ) policy 2006 is scrapped. Interestingly, the Cabinet decision on this comes one-and-a-half year after the Goa Government officially said ‘No’ to SEZs in Goa.
“The Cabinet today has decided to withdraw SEZ policy 2006”, Chief Minister Digambar Kamat announced at a post-Cabinet press conference here.Kamat, who was accompanied by Home Minister Ravi Naik, claimed that his Government would continue its opposition to setting up SEZs in the State as they were opposed by the public at large. He said that the State has not given any thought for compensating the SEZ developers although the money paid by them in purchasing land would be reimbursed.
While the 15 approved SEZs have been scrapped, the Government is still nagged with the issue of three SEZs developers -- Meditab Specialities, Peninsula Pharma Research Centre and K Raheja — which were notified. It may be recalled that during Pratapsing Rane-Government in 2006, Goa Industrial Development Corporation (GIDC) allotted huge tracts of land to several companies, for setting up 18 SEZs in Goa. Some allotments were made by GIDC even before the Goa SEZ Policy was notified.
SEZ Virodhi Manch as well as Goa’s Movement Against SEZ were formed and with citizens’ overwhelming support, an agitation was started against SEZs. BJP belatedly joined the bandwagon and made it an election issue in a big way but ultimately failed to be the single largest party in the 2007 assembly election. Denials notwithstanding, BJP was in favour of two SEZs until anti-SEZ protests intensified when it changed its stand.
NO SEZ: A couple of months after the new Government of Digambar Kamat was installed, the anti-SEZ agitation was intensified. Ultimately, respecting the sentiments of the people, Digambar Kamat took a decision to scrap SEZs in Goa on January 1, 2008 – as New Year’s gift to the people of the State. It is still considered to be the boldest decision taken by Kamat as he went against the interests of many of his ministerial colleagues and senior leaders of Congress party.

PROPOSAL: Since January 2008, SEZ Virodhi Manch and GMAS among others had been demanding scrapping of the Goa SEZ Policy, 2006. In this backdrop, the Industries Department put up a note to the Government last year, for scrapping the SEZ Policy, it had drafted three years ago. But the proposal, for reasons unknown, was kept pending for months.
DENOTIFY: Union commerce ministry’s Board of Approval is yet to denotify these SEZs despite several communications from the State Government opposing these industrial enclaves. Asked whether the withdrawal will help the denotification of the three SEZs, Kamat said “I don’t know.” “You are free to make your own assumptions I don’t want to say anything”, he said adding, “I again reiterate that my Government is doing everything to see that the SEZs are denotified”.
Incidentally, the chief minister, during his recent visit to New Delhi, is learnt to have pursued the demand for denotifying the three SEZs, with the Prime Minister Dr Manmohan Singh, and other central leaders including Union Minister for Commerce Anand Sharma