THIRUVANANTHAPURAM: Various labour laws will apply to the Special Economic Zones (SEZ) in Kerala, says the policy approved by the Cabinet here on Monday. The policy stipulates that 70 per cent of the land in an SEZ will have to be used for industrial purposes. Residential accommodation could be provided only to employees of the zone and could not be sold to outsiders. The Panchayat Raj Act will apply to the zones and no exemptions will be granted. Paddy fields will not be allowed to be reclaimed for SEZs. The government will not acquire land for private parties to set up SEZs. However, they could use land acquired by government agencies for developing industrial parks. Entrepreneurs facing cases relating to excess land under the Land Reforms Act will not be recommended for SEZ status. Industrial units in SEZs will get no exemption from electricity duty. However, they will get exemption from taxes levied under the Kerala General Sales Tax Act, including Value Added Tax, for 10 years. Exemption from Section 5B of the Industrial Disputes Act, provided for in the Central law on SEZs, will not apply in Kerala. The provisions of the Contract Labour Regulation and Abolition Act and Single Window Clearance Act will be applicable. Chief Minister V.S. Achuthanandan, who briefed presspersons on Cabinet decisions, said the applications for SEZ status which were recommended by the official committee headed by Chief Secretary P.J. Thomas would be forwarded to the Centre for approval subject to the terms of the policy. The promoters would have to sign an agreement subscribing to the terms and conditions before starting work on their projects. The Chief Minister said SEZs would get exemption from no laws dealing with the rights of employees and workers such as the Provident Fund Act, Factories Act, Gratuity Act and other labour, labour welfare and trade union laws. Mr. Achuthanandan said that SEZs needing large areas of land were not practical in the State because of high population density. Only proposals that suited the situation in Kerala would be approved. The Central policy allowed 50 per cent of the land to be used for purposes such as housing, hotel, trade, recreation and road. The State