The document provides an overview of Special Economic Zones (SEZs) in India. It discusses that SEZs aim to generate employment and economic growth through tax incentives for businesses located in designated zones. However, many SEZ projects in India have faced significant protests over land acquisition issues, with farmers arguing their land was taken below market value. While SEZs can provide benefits, the document notes India's 2005 SEZ policy and amendments have been criticized for lacking compensation for land owners and consideration of social impacts. It concludes that for SEZs to succeed, local communities must be made stakeholders in national progress.

1. SEZ INDIA
(A Policy Review)

2. Contents
SEZ India: Ambiguity, Conflict & Protest
INTRODUCTION
OVERVIEW OF SEZ IN INDIA
SALIENT FEATURES OF SEZ, 2005
CRITICAL ISSUES WITH SEZ,2005
CONCLUSION

3. INTRODUCTION
Meaning
A Special Economic Zone (SEZ) is a geographical delimited area
administered by a single body, offering a certain incentive regime to
businesses which physically locate within the zone.
These policy enclaves are instruments to realize micro, macro and
political objectives include employment generation, spurt in economic
growth and implementing regional economic development strategies
reliable infrastructure and training for unskilled workers.

4. SEZ India: Ambiguity, Conflict & Protest
• The Nandi gram SEZ Project a joint venture between State
owned West Bengal Industrial Development Corporation and
Indonesia’s Salim Group to build a major chemical hub
encountered significant resistance from local villagers argued
that land had been forcibly acquired by the government at
below market rates.
• In 2008, Tata Motors the largest passenger and commercial
vehicle manufacturer called off their Singur (West Bengal)
lowest priced car manufacturing project on the back of
widespread protests from local farmers who alleged that land
had been acquired by the state government under
questionable circumstance.

5. SEZ India: Ambiguity, Conflict & Protest
• There is an estimation that more than 200 SEZ projects were
involved in land acquisition disputes as of August 2008.
• Large scale protest of farmers almost any part of India as
• Allegation of land prices below market rate,
• Forceful acquisition of land
• Keeping in mind the SEZ advantages at Social, Economic and
political front, it is imperative to review the INDIA SEZ, 2005
Policy its Amendment and scope of revival.

6. EVOLUTION OF SEZ
SEZ made their debut in 1979-80 when China embarked on their SEZ
experiment. This concept turned out to be the most successful.
Since 1960, India has seen the emergence of several initiatives to boost exports
having mixed experience. Notable amongst these are:
Export Processing Zone (EPZ Scheme), Export Oriented Units (EOU)
Software Technology park (STP), Electronic Hardware Technology Park (EHTP)
Export Promotion Capital Goods (EPCG), Advance Licensing and Deemed
Exports,
Free Trade Zone (FTZ)
The Special Economic Zone Act, 2005 get notified in 2006 introduced after
Realizing the China’s success story of SPZ.

7. SPECIAL ECONOMIC ZONE
AROUND THE WORLD
SEZ Introduced in Argentina and Uruguay during 1920, but the rapid
development of free trade zones across the world dated from the late
1960;
China is often considered the greatest SEZ success. In part as a result of
its successful SEZ, China’s GDP and exports grew at annual rate of 10
percent and 11 percent respectively, during 1980.
However, SEZs failed experiences have been observed in the Dominique
Republic Egypt, Ghana, Guatemala, Senegal and Tunisia.
Overall the effectiveness of SEZs have been the fiercely debated subject
for the last 50 years. Some feel as successful while others as creating new
benefit for the country and as draining government resources.

8. OVERVIEW OF SEZ IN INDIA
Approval of SEZ Units
Prior to the enactment of SEZ Act, 2005, there
were 19 SEZ across India. The government has
now approved 581 SEZ with a further 154 with
in-principal approvals. 171 of these SEZ are
operational today.
Multi Company Share (%) in SEZ
The IT enabled services capture nearly 61%
share of SEZ, while the biotech, pharm, textiles
sector and multi-product SEZ have less than 10%
shares.
Exports
The Ministry of Commerce and Industry
claimed that the value of exports from
functioning SEZ increased from 138
billion rupees in 2003-04 to 2207 billion
rupees by the end of financial year
2009-10 which is almost 5 percent of
GDP of India.
Leading states in SEZ establishment
The “In-Principal Approval granted under the SEZ Act,
2005” out of total 49 projects the leading states are
Maharashtra:16, Gujarat: 7, Andhra Pradesh: 6.
Other states like Uttar Pradesh, Madhya Pradesh and
Rajasthan have only 1 project each.

9. SALIENT FEATURES OF SEZ, 2005
Creation of
SEZ
• The Act states to generate additional economic
activity, promote exports of goods and services,
create employment opportunities and develop
infrastructure all while maintaining the ‘sovereignty
and integrity’ of India.
• SEZ are also called “tax havens”. There is exemption from
custom tariff, Central excise duty, 100% Income tax
exemption on export income for the first 5 years and 50%
Tax Exemption, for the next 5 years is offered. Time bound Exemption
from Custom duty, Central Excise duty and Income tax
Finance and
exemption.
Banking

10. SALIENT FEATURES OF SEZ, 2005
• This ACT provides single window clearance of
necessary approvals to the companies like including
environmental, construction and employment
Single Window
clearance.
Clearance
SEZ-DTA
Trade
• SEZ ACT states that goods going into the SEZ from
DTA will be treated as exports goods from the SEZ
into the DTA as import. SEZ, firms enjoy exempt
import duties also lead to large scale smuggling
from SEZ India to non-SEZ India.

11. SALIENT FEATURES OF SEZ, 2005
Law
Enforcement
Amendments
• Cases will be heard at court appointed by the State
Government and the Chief justice of India.
Meanwhile, in case there is any inconsistency of this
law with other laws than this act would have an
overriding effect over others.
• In order to address the problem of aggregating
large tracts of uncultivable land for setting up SEZ,
the Aug’13 amendment the minimum land area
requirement in various categories has been reduced
by half.

12. CRITICAL ISSUES WITH SEZ,2005
Private
Property in
India
Land
Acquisition by
Government
Implementing
Eminent
Domain in
India
Reforming
Land
Acquisition

13. CRITICAL ISSUES WITH SEZ,2005
Private
Property in
India
• The Indian constitution made an explicit commitments to
protect private property. SEZ developers facing hurdles in
acquiring land through private party however there are few
examples of successful Land transition like The Mahindra
World City.
• Land acquisition by Government for “Public Purpose” has
been challenged in countries like USA and Britain. The
dissenting opinion argue that there should be some kind of
Land
guarantee to generate incidental benefit instead of just
Acquisition by
saying public purpose.
Government

14. CRITICAL ISSUES WITH SEZ,2005
• There is no mechanism for price fixing of land as compensation to
the farmers/landowners. Farmers lack proper will of land as its
inherited from one generation to next. And finally, notice period
Implementing
of 48 hours is very short in the country like India.
Eminent Domain
in India
• Indian government brought significant changes. First, provision to
compensate to land owners and dependents, second payment
must be made within one year, third social impact assessment,
fourth for speedy redress civil courts were replaced by a judicial
Reforming Land
body at the state and national level.
Acquisition

15. CONCLUSION

The promotion of national exports and employment generation
are the two main expected achievements from this Act, has been
fail to impress.

Meanwhile, Gujarat shares 44 percent of total SEZ export in 201011, which is 3158 billion rupees. It again signals that SEZ is
preforming at the facilitated region, instead of the region where
infrastructure is need to develop.

The Land Amendment bill of 2007, lack to state the
comprehensive land use planning process, the difficulty of
establishing property rights and the lack of any provision to
arrive as “Just compensation” for the owners of the land.

This resulted in huge public protest at a Nandigram, Singur and
other part of India.

In fact, the people need to be made stakeholders in the progress
of the nation.

16. THANK YOU