Perils of SEZs ministry raises security concerns
the Union home ministry recently expressed fears over national security in connection with the establishment of special economic zones (sezs) near border areas. It is especially concerned about security near ports and docks. The Union finance and agricultural ministries too had earlier expressed different concerns regarding sezs.
The early ones to come under the scanner are Shyam Burlap Co Ltd's multi-product sez in Kamrup district of Assam and Tata's Gopalpur sez, West Bengal. Their approvals are still on hold. The home ministry scrutiny has caused delays in the issue of visas to Chinese workers coming to work at the Apache sez in Andhra Pradesh. However, visas may be issued for 1,800 Chinese workers for a Reliance Industries gas pipeline project from Kakinada in Andhra Pradesh to Hazira in Gujarat.
Of the specific industries in sezs, the gems and jewellery and the pharmaceutical sectors are the ministry's target. The fome came under scrutiny because of fears of smuggling of precious metals and stones. On the other hand, in the pharmaceuticals sector, only companies involved with dna-related work will be scrutinised according to guidelines laid down by the home ministry.
While home is sticking to its guns, the commerce ministry is not too happy with the delays caused by clearances. It has suggested that instead of delaying sezs by such restrictions on the basis of location, the development commissioner of each sez should be given the mandate to scrutinise units when they apply. The commerce ministry fears that such restrictions will impede the pace of industrial development they are projecting through sezs.
