Tuesday, April 10, 2007

SEZ – to be or not to be ( Part 1 )

The recent row over SEZs have little to do with real concern for the poor farmers . As they say “its all part of a game – a political game”. A quick look at the pros and cons of the SEZ dilemma that India is facing today -

  • Drawbacks

a) the compulsory land grabbings means lower selling cost for lands for the farmers. These low priced land acquired for “public good” exchanges hands into government agencies , real estate developers and then to private industrial institutions and in this journey, their prices multiply several folds. Undoubtedly somebody in this process makes huge profits. Its just a matter of common sense to understand how much of the cut in profit the farmers might get .

b) With all the investment benefits , tax holidays , import duty cuts and service, sales, center and state tax benefits, think who really makes the biggest benefit ? ( And how will the government (ultimately the public ) ever make a ROI ? ) ( Don’t tell me the increased FDI will eventually work out !! )

  • Why are SEZs needed ?

a) We draw the example from the land policies / government acquisitions and the policies on SEZs in China which have resulted in very rapid progress and development , thrusting China to the super power status . Even after the 234 proposed SEZs come into being , it will take up only 0.1% of the farmlands .

b) These would attract ( mind the word – attract ) an investment worth Rs.300,000 crores and generate 4 million jobs.

With other factors which still need to be thought about and discussed – ( to be covered in a later part ) –have you made up your mind yet ? What is your stand today towards the SEZ ?? Go for it or go against it ?

No comments:

"Florentino is so in love with Fermina that he eats gardenias and drinks cologne so that he can know her taste. He becomes drunk on the cologne, and his mother finds him the next morning, in a puddle of his vomit, in a cove of the bay where drowning victims are known to wash ashore" - Love in the time of Cholera