Proposed SEZs in Kerala hit roadblock

India's News.Net
Thursday 21st August, 2008 (IANS)

The Kerala Industries Department's efforts to attract as much as Rs.250 billion ($5.8 billion) fresh investment in different sectors appear to have hit a roadblock Thursday as Chief Minister V.S. Achuthanandan postponed decision on the proposed 21 special economic zone (SEZ) proposals.

'A decision can be taken only after discussing the issue with the party leadership in Delhi. The Left has its own reservations on SEZs,' Achuthanandan told reporters here after the weekly cabinet meeting.

The chief minister's statement came barely a week after the Communist Party of India-Marxist (CPI-M), to which he belongs, urged the state government to speed up decisions on SEZs.

When reporters pointed out his party's stand, Achuthanandan said: 'The state committee of the party can take any decision. But when the Left Democratic Front (LDF) makes a decision, it has to be discussed with all allies.'

Kerala today has one SEZ in Kochi and 13 more projects have got the final clearance. Besides, eight more SEZs are awaiting the central government's nod.

'See, those who get approvals to build SEZs get a lot of benefits. They get discount on all materials in construction. Once completed, they get so much tax benefits. We have to make sure that this benefit is passed on to the state too,' the chief minister said.

The Communist Party of India (CPI), the Revolutionary Socialist Party and the Janata Dal, all are part of the ruling LDF, are not very keen to setting up SEZs in the state.

Meanwhile, the youth wings of the two Communist parties openly sparred over SEZs.

'If the SEZs are given sanction, it would be anti-labour. The hire and fire policy will be there and the labourers will not get any benefits,' P.S. Supal, secretary of the CPI's youth wing All India Youth Federation, told reporters.

However, the CPI-M-backed Democratic Youth Federation of India secretary T.V. Rajesh said: 'Just to get claps we are not going to oppose SEZs. We don't have any blind stand towards them. SEZs will certainly create more jobs,' Rajesh said.

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