Land for Industrialization

Land for Industrialization

A 2,300-acre land parcel has been identified for acquisition by the State Industries Promotion Corp. of Tamil Nadu Ltd, or Sipcot, a government-owned entity. But Sipcot is now facing problems with some villagers protesting the proposed acquisition. Purchasing land for industrialization is not a problem limited to Tamil Nadu and in this respect there have been protests by farmers across the country in the past couple of years against setting up of industries on farm land.

The current dispute concerns land in nine villages of Tiruvannamalai and Kancheepuram Districts, at which place land owners are still protesting even as Sipcot has started surveys marking the land for acquisition. The nine villages are Chellaperumbulimedu, Kunnavakkam, Ayinjalpattu, Perumbulimedu, Mangal, Akoor, Karanai, Ukkamperumbakkam and Mathur.

An excellent article regarding SEZs and compulsory land purchase for industrialization was posted in the New Indian Express on January 24th, 2009 -- it states:

"Special economic zones are touted as the new engines of growth, but they are also where the law seems to be suspended.

. . . . . The village of Mathur (150 acres) in Tamil Nadu is in mourning. Under a colourful pandal, over blaring loudspeakers, local leaders are organising a Black Pongal. Nearly three-fourths of ten villages in this neighbourhood will be swallowed up by a 2,300 acre SEZ, but none of the panchayat members were consulted. All ten presidents sent their written objections to the collector. Nothing came of it."

To read the whole article go to this link here

Land Acquisition

India lifted a freeze on land clearance for scores of economic zones imposed after protests and promised there would be no forcible land acquisition for projects and also that a limit on the size of special economic zones would also be imposed. The size limitation will apply to all special economic zones (SEZs) including those which have already been notified.

Central Government yesterday said special economic zones that have evoked violent protests in several parts of India, particularly from farmers, are here to stay but limited their size to a maximum of 5,000 hectares (one hectare 2.47 acres).

Ministers who recently met to clear pending SEZ proposals, have stated that SEZs will in future be treated like public utilities. Which means that States need not intervene to acquire land and leave the decision to sell agricultural land for SEZ to the discretion of the farmers and owners of the land.

Central Government has so far received a total of 234 SEZ proposals with formal approvals, of which 63 have been notified and 83 were cleared yesterday for notification.

The above will undoubtedly be cheering news to Lotus Footwear Enterprises who are currently trying to set up a 275-acre footwear SEZ in Tiruvannamalai District.