BUSINESS

Pressure on govt, Maran latest to slam SEZ freeze

By BS Reporter in New Delhi
March 14, 2007 09:55 IST

As pressure builds on the empowered group of ministers led by External Affairs Minister Pranab Mukherjee to take an early decision on the contentious special economic zone issue, it was today Information Technology Minister Dayanidhi Maran's turn to slam the freeze on SEZ approvals.

Following violent protests over land acquisition in West Bengal and Uttar Pradesh, the Centre had decided to put on hold all SEZ notifications and approvals till a national relief and rehabilitation policy was formulated.

Speaking to reporters on the sidelines of a seminar on 'Saving Doha and Delivering on Development' here on Thursday, Maran urged the Centre to clear proposals "at least where companies have their own land."

He added that companies like Nokia and Flextronics, which wish to set up ancillary units in Tamil Nadu to manufacture keypads and other parts, were adversely affected by the freeze. "There are at least ten pending proposals for setting up of ancillary units which are yet to be cleared," he said.

The prime minister and the EGoM have also received strongly-worded missives from the chief ministers of Tamil Nadu, Andhra Pradesh, Karnataka and Gujarat over the last few weeks urging the de-freezing of SEZ approvals.

The delay in clearing SEZ proposals could dissuade investors and had already thrown a spanner in the works of several firms who had invested in equipment, they argued.

The EGoM's decision is likely to impact 173 SEZs, including 63 SEZs which have been notified by the government.

The prime minister has reportedly asked the EGoM, expected to meet in two weeks time, to take a decision on the issue soon.
BS Reporter in New Delhi
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