08.25.06
SEZ Caps: Central and State governments stands against each other
SEZ Caps: Central and State governments stands against each other.
So the SEZ war is on between the Central and the State Governments. PRESSURE is building on the central government from states for removal of the ceiling on SEZs by the empowered group of ministers (eGoM). The EGoM, which is meeting on Wednesday to review the cap, has to take the crucial decision on whether to maintain the cap at the original level, increase it, or do away with it.
State Ministers, Sharad Pawar, TJayanidhi Maran, Naveen Patnaik have been writing to the Central Government for this issue. They have asked the Government that the SEZ proposals for Maharashtra cannot be accommodated if the ceiling is not removed leading to loss of potential investment. With the commerce department formally approving 46 new SEZ proposals on Tuesday, the limit of 150 imposed by the EGoM has been exhausted, which has brought the State Ministries to react against the EGoM. The Orissa CM pointed out that his state, which had become an important investment destination for minerals and metals, IT and IT-enabled services, would lose out if the SEZ cap was not removed. He said Orissa was not as fast as many other states in getting sanctions and there should be fair and equal opportunities for all states in the sanctioning process.
Investment in India » SEZ: Is it Export promotion or Real Estate Promotion: says RBI said,
August 31, 2006 at 11:40 pm
[…] Now the SEZ fever has disturbed the (Reserve Bank of India) RBI too. The RBI has said that the SEZ policy 2005 sees to be more focused on the Real Estate promotion rather that Export promotion. In the recent reports, the RBI has said that “the tax breaks for the SEZ are only justifiable only if they establish forward or backward linkage with the domestic economy”. […]