The committee, headed by BJP leader Murli Manohar Joshi, in its report recommended reducing the maximum land area for multi-product SEZs to 2000 hectares if cultivable land is acquired for setting up these zones.
Earlier, an empowered Group of Ministers had fixed 5,000 hectares as the land ceiling for multi-product SEZs.
"All land for SEZs should be taken on lease by developers. There should not be transfer of ownership," the Parliamentary Committee said in its 83rd report on functioning of SEZs.
So far, the Board of Approval in the commerce ministry has formally approved 341 SEZ proposals, 170 in-principle and notified 128 others.