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The policy framework of Special Economic Zones (SEZs) is getting tweaked to meet the aspirations of all stake-holders. One of the latest regulations on the anvil pertains to land acquisitions. Upon hue and cry from various sectors and segments for giving
the lands / allotting the lands to the Corporate Houses / Land Mafias in the guise of SEZ Act, the Government has overhauled its policy on the SEZs, making large multi-product SEZs virtually impossible. As per the new norms, the size of a SEZ cannot exceed 12,500 acres, when earlier there was a lower limit of multi-product SEZs which can be formed on 2,500 acres of land with no limit to the upper. It has also been decided that the state government can no longer acquire land for the SEZs for the private developers.

For industrialization, land is needed; however, those who are losing their land must be compensated properly. A proper compensation implies at least compensations for lost home, lost assets, lost professions and lost regular income. Thus, those who have lost home and land must receive from the government a new home or apartment, value of the land taking into account the possible appreciations over the next decade, and a new job or regular monthly payments to compensate for the loss of income. There is no promise of a new job or regular monthly income or a new house. There are no provisions for lost education for the children of the farmers. Thus, the declared compensations are highly inadequate. That is the source of the dispute.

There is a second argument as well from the point of view of overall economic policy. Industrialization, just for the sake of it, is not justified. It is essential to look at the costs and benefits of setting up an industry. Thus, it is essential to ask whether we really need this type of economic growth and industrialization where the people would not gain much. Where would the evicted farmers of India go to have any alternative employment? It is not possible for the evicted farmers from India today to go to USA, Canada, Australia and New Zealand, to kill the white farmers and take over their land. Thus, this absurd logic given by some, that it is natural to expect evictions from fertile land if a country wants to built industries, has no meaning.

For large-scale industries, private and public, very strict environmental and land-use planning regimes are needed so that fertile land cannot be destroyed or hazardous industries cannot pollute the environment, atmosphere, land and water system. The government should set-up a land-use planning agency to identify areas unsuitable for agriculture, pay proper compensation and arrange rehabilitation of the existing farmers, before industries would be allowed there. At the same time, the government should try to expand the areas of land suitable for farming by extending irrigation system and by creating embankments for all major rivers to stop erosion of agricultural land.

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Dr. Gursharan Singh Kainth started his career as Lecturer at Post Graduate Dept. of Economics, Government College, Gurdaspur, and later at Khalsa College; Amritsar, specializes in Quantitative & Development Economics. Has the distinction of serving Punjab Agricultural Univ, Ludhiana, for more than 2 decades and remained Director-Principal of Saint Soldier Management & Technical Institute, Jalandhar. Currently, heading GAD Institute of Development Studies, Amritsar, a self-financed research institute. Has been honoured with various awards, including Guru Draunacharya Samman, Vijay Rattan Award, etc.
Article posted on January 17, 2009.