SEZ Policy: Govt open to review
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30/04/2008
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Tribune (New Delhi)
Facing widespread criticism from the Opposition as well as the supporting Left parties on the SEZ issue, the government today clarified that it was open to reviewing the Special Economic Zone Act once the number of SEZs in the country crossed the figure of 100. The government also ruled out FDI in retail sector, an area that has come under flak from traders and political parties. It added that it would not subscribe to any agreement on WTO unless "India got what it wanted on special products' and farmers and interest of economically vulnerable countries were safeguarded. Putting to rest fears raised by Rajya Sabha members during a discussion on the working of his ministry, commerce and industry minister Kamal Nath specified that the government was open to reviewing the Act governing SEZs in the country if it was felt that the act required a revision. Defending the SEZ policy, Nath said it was an employment and economic activity generation scheme that had so far provided jobs to more than 1.76 lakh persons across the country. He said during 2008-09, exports under SEZs were expected to be Rs 1,24,000 crore. Citing a report by the Indian Council for Research on International Economic Relations on revenue loss due to SEZ, he said India was estimated to generate net revenue gain of Rs 8,800 crore. Meanwhile, Nath also said the government was not considering any FDI proposals in the retail sector. "About 97 per cent of the retail is under unorganised sector and we don't want to disturb them. There is no proposal on FDI in retail sector,' he said.