New Delhi, Oct 19 (IANS) The Left parties Thursday submitted a note to the United Progressive Alliance (UPA) government seeking a review of the Special Economic Zone (SEZ) policy and initiate necessary corrective steps.
'Several provisions made in the SEZ rules have raised concerns of misuse of the SEZ Act for creating a speculative real estate bubble instead of building industrial infrastructure,' the note said.
'The UPA government should therefore initiate a review of the SEZ Act at the earliest with a view of making appropriate amendments,' it said.
Asking the UPA government to learn from the Chinese model where the state retains ownership of land in SEZS, the Left parties have demanded that there should be no transfer of land ownership to the private developer.
'Private developers should only be allowed to take land on lease or build the infrastructure on a build-operate-transfer (BOT) basis,' the note said.
'Some of the proposed SEZs involve huge tracts of land, over 10,000 hectares in some cases. If private entities are allowed to own such huge tracts of land, it would amount to the reestablishment of the zamindari system 60 years after independence which is totally unacceptable,' it added.
On the issue of compensation to those whose land is acquired for setting up SEZs, the Left parties have asked the government to award compensation in line with market prices taking into account the expectation of future land development.
The note has been submitted jointly by the Communist Party of India-Marxist, Communist Party of India, Revolutionary Socialist Party and All India Forward Bloc.