The enormous subsidies given to corporations as part of special economic zones are creating an impact on the economy of the country. According to the RBI, SEZ could aggravate an uneven pattern of development, as they may pull out resources from less developed areas not to mention revenue implications have to be factored in. The Finance Ministry has estimated that SEZs could run up a revenue loss of Rs 1, 75, 000 crore in direct taxes, custom and excise duties over the next five years.
Poor farmers have to fight against gigantic and powerful companies, for instance 'No less than 14,000 hectares of land have been given to Reliance for developing a SEZ in Raigarh near Mumbai. This will displace people of 45 villages and no one is talking about their rehabilitation. This is very clear the Reliance Company managed to create disturbance in the peaceful meeting of hundreds of farmers and the process of presenting objections to the Land Acquisition notices to the officials. The company is nervous about the growing resistance by the farmers for usurping their productive land and therefore trying to use oppressive means.
The villagers now know fully well they are pitted against the formidable adversary - the giant Reliance, which has just obtained 25,000 hectares land for its own SEZ in Haryana, already took the governments in Uttar Pradesh, Gujarat and Maharashtra and even the so called the Left wing government of W. Bengal. It is spreading its wings in textiles, power, contract farming, medicinal herbs, sugar industries and retail stores. They realize that the Company has enormous sway over the political, bureaucratic establishment and the media.
This company has been given the largest SEZ in the 42 villages in Pen-Panvel-Uran area, in the name of the activities like manufacturing, trading, services, processing, logistics, repackaging, warehousing etc.
This is one of the 24 approved SEZs in the state, both by the private parties (13) and the Maharashtra Industrial Development Corporation (MIDC, 11). There are other 17 SEZs that are to be given approval (11 private and 7 MIDC). These SEZs are part of the more than 140 SEZs that are earmarked in almost all the parts of the country. According to the Union government's handout, the SEZ is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purpose of trade operations, duties and tariffs.
In 2000 the Government of India formulated the SEZ policy and in 2005 the SEZ Act was made. It came into force from February 10, 2006. With this one stroke, the corporate powers have cornered exemptions from almost every tax, while getting the services of water supply, electricity, usurping the natural resources, distorting the constitutional sovereignty of the people.
The SEZs are made free from the environmental and labour laws and they are exempted from public hearing under Environment Impact Assessment notification. They have no responsibility to provide employment to the people in and around the area. The reliance had clarified that there would be no scope for the employment for the local people, as most of the jobs will be skilled ones. However, any of the labour laws and regulations will not be applicable to SEZs.
More important is the issue of the large tracts of land - at least 1000 hectares or even 80 hectares to be given to the companies. According to senior trade unionist Gajanan Khatu, "These SEZs would be privatized and autonomous townships. Instead of mere SEZs, they are Special Real Estate Zones. These SEZs can be used for anything from trading, entertainment, hotels, and housing projects." All the large builders like City Parks, K. Rahejas, Hiranandani Builders, DLF, Marathon realty, Pan-India Paryatan, Dewan Investments are given hundreds of hectares.
It is a government sponsored land grab by the rich and powerful. Already serious land related issues of Land Reforms .The government has been allotting large tracts of lands, mostly by acquiring through Land Acquisition Act and passing it on to the private parties .
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