Special Economic Zone: a hard reality

Special Economic Zone a dream concept in India and we have been expecting that this concept would boost employment, export and push the economy. All these expectations will end when we come across anti-SEZs protests and bloody battle. The recent, Singur row arises and the impact is huge o the investment scenario and more on life of the people associated with the project. These incidents are the live examples of Special Economic Zone realities in India. However, industrialists are still interested go ahead with their on-going investment projects despite such incidents in India. But the reality of SEZs and land acquisition row would be a big blow for the country in the view of investments and industrial promotional activities.

A Special Economic Zone (SEZ) is an especially demarcated area of land, owned and operated by a private company, which is deemed to be foreign territory for the purpose of trade, duties and tariffs. SEZs will enjoy exemptions from customs duties, income tax, sales tax, service tax. After the passing of the SEZ Act by the Parliament in June 2005, the law came into effect in February 2006, though some states, like Gujarat, had passed provincial SEZ legislation in 2004 itself.

According to a report, there are less than 400 SEZs around the world. In India the government is planning that many in one country alone. In a comparison with China over the SEZ strategies, as per this reference, there are 400 to 500 SEZ in India while China has only seven in number. The SEZ process was started in 1980 in China while 1991 in India. The result of the SEZ in China was very successful while, it is unsuccessful in India. The land acquisition battle and unrest are some the big reasons behind. Anti-SEZs protests are seen everywhere in India, some of the case came to limelight are Kashipur, Gopalpur and Kalinganagar in Orissa and Singur and Nandigram in West Bengal. However, the reality is the protest and attack on innocent people over the anti-SEZs could not be justified. It seems that the objective of achieving economic prosperity through SEZs is losing its ground day by day in India.