Business Environment Project

8/2/2019 Business Environment Project

1/19

Business Environment Project:

Caselets on SEZ ( SpecialEconomic Zones)

Abhinaba Bhattacharya

Arpit Pangasa

Ankit Sharma

Faiz Ahmed

Gaurav Mittal

Gunjan Godwani


2/19

Political effects of SEZs

Nandigram located East Midnapore.

Proposal to setup chemical hub with Salim Group.

Acquisition of 14,000 acres of land in 29 villages

Inadequate compensation & loss of livelihood. Thousands to be rendered

homeless.

Conflict with Bhumi Ucched Pratirodh (BUPC)

14 Mar, 2007 Operation with 3000 policemen

Singur

Govt. failure to acquire 997 acres of fertile land.

Opposition led by Mamta Banerjee, Medha Patkar, Arundhati Roy and others.

Section 144 applied but shot down.

Tatas to leave Singur for Sanand in Oct. 2008


3/19

Gujarat the new home

* Tata invited by Modi. Factory to be setup in Sanand.

* End of brand buddha. Rise of Vikas Purush Modi.

* Gujarat success SEZ exports rise to 1.26 lakh crores (37%)

Physical exports from SEZ rose from 82,385 crores to 1.13 lakh

crores (38%)


4/19

THE CORRUPT PRACTICES CREEPING ON LAND ACQUISITION:

The land acquisition Act 1894 has been invaded with

corrupt practices as there are no proper guidelines for

making pre acquisition assessments of suitability of land.

Large areas of fertile lands are brought under acquisition

notifications without proper pre-acquisition surveys and

intimations. Acquisitions sometimes even done with the

mind set of targetting political rivals.

They are made without estimating properly the burden on

public money and the depth of public interest involved in

it.


5/19

*KIADB (Karnataka Industrial Areas Development Board) is

under severe scanner because the allegations that landallottees from KIADB have took the land more than whatis required by them and they are selling off the land inturn as realtors, making excess profits.

*the BDA act (Bangalore Development Authority). Similarprocedures are involved in these two acts, withpreliminary notifications as the first step and finalnotification as the next step.

*However, KIADB act and Land acquisition act gives hearingin the middle of the above two steps, to the land ownersregarding their objections. But BDA does not give suchoral hearing opportunity. Thus, objections were notproperly considered in correct perspective.
http://www.google.co.in/url?q=http://www.kiadb.in/&sa=U&ei=dPpdT_XiLousrAe2r7SIDA&ved=0CBMQFjAA&usg=AFQjCNFsSLoJcPGLPKivcOJocgXKoQgogghttp://www.google.co.in/url?q=http://www.kiadb.in/&sa=U&ei=dPpdT_XiLousrAe2r7SIDA&ved=0CBMQFjAA&usg=AFQjCNFsSLoJcPGLPKivcOJocgXKoQgogghttp://www.google.co.in/url?q=http://www.kiadb.in/&sa=U&ei=dPpdT_XiLousrAe2r7SIDA&ved=0CBMQFjAA&usg=AFQjCNFsSLoJcPGLPKivcOJocgXKoQgogghttp://www.google.co.in/url?q=http://www.kiadb.in/&sa=U&ei=dPpdT_XiLousrAe2r7SIDA&ved=0CBMQFjAA&usg=AFQjCNFsSLoJcPGLPKivcOJocgXKoQgogghttp://www.google.co.in/url?q=http://www.kiadb.in/&sa=U&ei=dPpdT_XiLousrAe2r7SIDA&ved=0CBMQFjAA&usg=AFQjCNFsSLoJcPGLPKivcOJocgXKoQgogghttp://www.google.co.in/url?q=http://www.kiadb.in/&sa=U&ei=dPpdT_XiLousrAe2r7SIDA&ved=0CBMQFjAA&usg=AFQjCNFsSLoJcPGLPKivcOJocgXKoQgogghttp://www.google.co.in/url?q=http://www.kiadb.in/&sa=U&ei=dPpdT_XiLousrAe2r7SIDA&ved=0CBMQFjAA&usg=AFQjCNFsSLoJcPGLPKivcOJocgXKoQgogghttp://www.google.co.in/url?q=http://www.kiadb.in/&sa=U&ei=dPpdT_XiLousrAe2r7SIDA&ved=0CBMQFjAA&usg=AFQjCNFsSLoJcPGLPKivcOJocgXKoQgogghttp://www.google.co.in/url?q=http://www.kiadb.in/&sa=U&ei=dPpdT_XiLousrAe2r7SIDA&ved=0CBMQFjAA&usg=AFQjCNFsSLoJcPGLPKivcOJocgXKoQgogghttp://www.google.co.in/url?q=http://www.kiadb.in/&sa=U&ei=dPpdT_XiLousrAe2r7SIDA&ved=0CBMQFjAA&usg=AFQjCNFsSLoJcPGLPKivcOJocgXKoQgogg


6/19

*The violation of the principles of natural justice on

account of omission to communicate the reasons by

administrative authority is liable to be challengedbefore courts.

*The Government passed an order on 1-6-1995

authorising the BDA to permit Group Housing

Projects to be undertaken by landowners in

association with developers/institutions.

*Once the approval is given, necessary exemption

would also be granted under the provisions of the

Karnataka Land Reforms Act, 1961.


7/19

Thus, in this aspect, the litigation changes have to be in-

depth. Legal aspects needed in Karnataka to ease out the

Land Acquisition:-

*Special judicial courts for land acquisition to be established

for hearing objections to the acquisitions.

*Proper pre-planning and survey to be conducted regarding

the proposed project and land feasibility.

*Environmental considerations to be legally considered.

*Displaced agricultural labour force to be rehabilitated.

*Compensation payment and procedure to be


8/19

SEZs AND THE SOCIAL IMPACT

PROS & CONS OF THE SEZs

SOCIAL BENEFITS


9/19

* We have already discussed the political and legal impacts of SEZs

in India and seen how the issue of Land Acquisition and

exploitation of the farmers strike at the core of the arguments

which are in favor of SEZs. But let us analyze some social benefitsor the lack of it which India has accrued, courtesy the SEZs.

* According to an article in the January issue of The Economic

Times, the total jobs generated through SEZs was 7,32,839. But

according to an article by Mr.Siddharth Singh (Oct. 16, 2011) inInternational Politics, Energy and Culture website, the takeoverof the land of the farmers because of SEZs led to a decline in the

output of the food-grains and people who were working in the

agricultural sector.

* SEZs have also done good for the women who, according to anarticle in Oct 5, 2007 issue of The Financial Express by Ms.

Anandita Singh, constituted 40% of the working population in SEZsin India.


10/19

*A critical issue on the labour front is that all SEZs are

classified as Public Utility Service which meansthat many labour laws lose their importance like

employees have to inform 14 days before going on astrike and employers can also modify the regulations

and rules of the contractual points for any services

anytime and thus the bargaining power of the

employee, esp. labour is highly diminished.


11/19

CONTRIBUTION OF SEZs TO THE INDIAN ECONOMY


12/19

Value of SEZ Exports & Percentage Share of these exports

to the Total Exports in India

A total of 130 SEZs are exporting out of which 75 are IT/ITES, 16 multi-

product and 39 sector specific. An interesting fact is that when global

recession was affecting the economies of every nation including India,

growth in SEZ exports was 121 percent as compared to a meagre 0.6

percent growth in total exports from India.Fiscal year Value in crores Growth (%)

2003-04 13,854 39

2004-05 18,314 32.2

2005-06 22,840 24.7

2006-07 34,615 51.6

2007-08 66,638 92.5

2008-09 99,689 49.6

2009-10 2,20,711 121.4

2010-11 (Apr-Dec) 2,23,132 -


13/19

The Graph below depicts the Percentage share of SEZ exports to the

Total Exports over the years 2003-04 to 2010-11 (April-December). It can be

seen that the percentage share of SEZ exports has been increasing steadily

over these years.

4.7 4.9 5 6.1 10.2

11.9

26.1

29.7

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(Apr-Dec)

Share of SEZ Exports in Total Exports


14/19

According to Green Tapism - A report of theEnvironment Impact Assessment Notification2006, a book brought out by the Group, depicts

the nationwide agitations regarding theGovernments approach to SEZs and also houses

the different voices across the country

continuing to echo the need to walk away

from the SEZ mindset.


15/19

The need for a careful scrutiny of the

environmental and social impacts ofSEZs has never been on sounder footing.

Indias SEZ policy is set to undergo a

comprehensive re-think in the coming

days and, hopefully, the full

environmental and social impacts ofsuch zones will be recognised and

appropriately regulated.


16/19

*The new E.I.A. (Environmental Impact Assessment Act)

notification presents such zones with a large number of

loopholes to escape the environment clearance process.

*In the past, the Commerce Ministry paid scant attention to the

environmental or social impacts of SEZs. The evolving criteria

have, so far, reflected a scant regard for environmental, healthand social concerns.


17/19

*As per an article by Ramachandra Bhatia in Economical

and Political weekly magazine, Dakshina Karnataka with itsrich natural resources was being targeted as one of the

proposed location for SEZs, neglecting the environmental

implications.


18/19

*Similar instance of Environment hinderances have been witnessed

in Trichy , Tamil Nadu ,under TIDCO Project . TIDCO has proposed

to develop a Special Economic Zone in Pennakonam South,

Pennakonam North and Thirumanthurai Villages of Kunnam Taluk

and Peraiyur & Eraiyur Villages of Veppanthattai Taluk in

Perambalur District over an area of 2604.13 acres.

*Need for Environmental Clearance from the Ministry of

Environment and Forest, Government of India, New Delhi, as perthe EIA Notification 2006 has been in the limelight.


19/19

*Thank

you..!!!

Documents

Business Environment Project