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Article

19 May 2015

Author:
Prachi Salve, India Spend

Land-Acquisition Warnings From India’s Special Zones

there is strong evidence that past acquisition of land by the government has gone awry. A 2012-13 report issued by the Comptroller and Audit General of India (CAG), the auditor of the central government, revealed...No more than 62% of land—much of it acquired from farmers—for Special Economic Zones (SEZs) has been used for its intended purpose: to boost manufacturing, exports and jobs...Most SEZs are populated with information technology (IT) and IT-related companies, while manufacturing accounts for only 9% of all SEZ projects...SEZs fell short of their job, investment and exports targets by wide margins. For instance, they generated less than 8% of the jobs expected..The report, in conclusion, said “The SEZ policy and procedures need to be integrated with the sectoral and state policies with the involvement of the unique advantageous points therein.”

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