Recently a large number of unarmed poor farmers were slained to death by West Bengal police and CPM cadre in Nandigram, West
Bengal. May it be Dadri or Mumbai; attempts have been made to crush farmer movements by the government keeping aside the democratic norms. Question arises why democratically elected governments of this country are doing so. A simple answer is declared commitment of the government to establish foreign
territories on Indian soil in the name of Special Economic Zones. According to foreign trade policy (2004-09), ‘SEZ is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations, duties and tarrifs’. The Andhra Pradesh industries and Commerce department defines SEZ as ‘specifically delineated enclaves treated as foreign territory for the purposes of industrial services and trade operations with relaxation in customs duties and more liberal regime in respect of other levies, foreign investment and other transaction.’ If we read different policy directions and government orders with other provisions on SEZ, very horrifying situation emerges. According to the policy declared by resolution No. SEZ 2001/152/IND-2 the government of Maharashtra ensured ‘the government will take necessary steps to declare SEZ’s as industrial townships functioning as self-governing autonomous municipal bodies.’ It is clear that SEZ will be an autonomous self-governing territory where SEZ developer will rule and there will be no role of democratically elected government. What will happen to integrity and sovereignty of the nation when such foreign territories are established? At the time of independence there were about 600 provinces ruled by rajwaras, which were merged with Union of India and sovereign government was established with great efforts. Now rajwaras are created in the name of SEZ.
Governments arguments in favour of SEZ There is a great need to establish infrastructural amenities for economic development of the country. No country can develop without infrastructural amenities of international standards. There is also a need to increase exports from the country.SEZ developers and units established in SEZ have been granted various exemptions including exemptions from state and local taxes, tax on electricity, exemption from income tax for ten years, exemption from import duty, exemption from service tax etc. They have also been ensured availability of water and electricity. Relaxation has also been granted in the environmental laws.
Government, farmer and labour at loss It may be noted that though Indian and foreigner SEZ developers may gain from various exemptions given by the government, the nation will incur heavy loss in revenue. Government has itself conceded that it will incur a total revenue loss of 93,900 crores in revenue in the next four years and it will continue. Land
acquisition spree is continuing unabated by different industrial houses, who are acquiring land at any cost. Government machinery is also helping them in this acquisition by either acquiring itself or facilitating them in land acquisition. Our honourable minister of commerce claims that in the next five years there will be 5 lakhs employment opportunities due to SEZs. But he conveniently ignores the loss of employment of farmers and landless labours working in the land being acquired for the purpose of SEZs.
Lack of rehabilitation policy While making such an ambitious plan on SEZ, policy makers conveniently ignored the issue of displacement and loss of employment by lakhs of people due to this policy. Rehabilitation and employment provisions have to be a part of any such policy.
Regional imbalances Townships being developed in the name of SEZ with different kind of relaxations and facilities will attract industries and businesses from different other parts of the country. This phenomenon will not only lead to loss of revenue but also will cause regional imbalances.
Endangered Food Security The area chosen by the SEZ developers has mostly highly fertile soil, where two or more than two crops are grown. Due to the acquisition of land from such areas, food grain production is likely to get adversely affected. Lakhs of hectare of such land has either been acquired or has been notified. Arable land is being forcibly reduced in the process. Honourable President of India has also shown his concern over constantly declining arable land which is likely to go down from 135 lakh hectares at present to 95 lakh hectares by 2010. Crores of our farmers are facing the danger of loosing their livelihood in the process.
Environmental and other laws being bypassed by SEZ These specially created foreign territories have not only been provided with various exemptions from taxes, they are also been encouraged to bypass the law of the land. It may be noted that labour laws have evolved with time with the objective of welfare and protection of labour. Inapplicability of labour laws would no doubt lead to exploitation of labour.
Luxury centers in SEZ Though various exemptions have given for the developers and units in SEZ, only 25 percent of land is needed to be used as processing zone. Rest 75 percent of the land can be used for residential, retailing, hospitals, hotels, education institutions, multiplexes etc. We can say that such luxury centers in SEZ are being created at the cost of farmers by grabbing their land and thereby snatching their employment, food security, integrity and sovereignty of the nation and such centers will further widen the gap between the rich and the poor, haves and have nots.