Lok Sabha Question No. 5937 (UNSTARRED), answered on 2017-04-10
Subject: Land Acquired for SEZs
Ministry: COMMERCE AND INDUSTRY
Asked by: HARISH CHANDRA MEENA, MOHANBHAI KALYANJIBHAI KUNDARIYA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 5937 TO BE ANSWERED ON 10 th  APRIL, 2017

## LAND ACQUIRED FOR SEZs

## 5937.   SHRI HARISH MEENA: SHRI KUNDARIYA MOHAN BHAI KALYANJI BHAI:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the total area of land acquired for development of Special Economic Zones (SEZs) in the country including Rajasthan during the last three years, State/UT-wise;
- (b) the details of the purpose to acquire these lands under SEZs and whether the said purposes are accomplished and if so, the details thereof;
- (c) whether the land acquired under SEZs has been given to private companies instead of  setting  up  Government  industries  and  if  so,  the  details  thereof  and  the  reasons therefor;
- (d) the details of lands which are lying vacant/unutilized along with the action taken for proper utilization of these vacant/ unutilized lands under SEZs;
- (e) whether the non-profit organisations working for the welfare of farmers has accused corporates of using land allotted to them for SEZ purpose to get loans from banks by mortgaging the land as collateral guarantee; and
- (f) if  so,  the  details  thereof  along  with  the  action  proposed  to  be  taken  by  the Government against such corporates and redeem the land and return it the same to the farmers?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

(a) to (c): Land is a State subject.  Land for development of Special Economic Zones (SEZs)  is  acquired  as  per  the  policy  and  procedures  of  the  respective  State  Governments. The Board of Approval for SEZs only considers the proposal for setting of new SEZs by the entrepreneur which have been duly recommended by the State Government concerned. The SEZ scheme is primarily private investment driven.

(d): Out  of  total  notified  area  of  44,177.69  hectares  in  respect  of  349  notified  SEZs (including 7 Central Government SEZs and 11 State/Private Sector SEZs), 27029.77 hectares are lying vacant in these SEZs as on 31.01.2016.  The vacant land is primarily with private sector or State Public Sector Units (PSU) developers. The development of land and allotment to  units  by  the  developers  is  done  based  on  the  demand  and  market  conditions.  The Government, on the basis of inputs/suggestions received from stakeholders on the policy and operational framework of the SEZ Scheme, periodically reviews the policy and operational framework  of  SEZs  and  takes  necessary  measures  so  as  to  facilitate  speedy  and  effective implementation of SEZ policy. At present 210 SEZs are operational.

(e) and (f): In this regard Writ Petition (Civil) Number 1044 of 2016 has been filed before Supreme Court by SEZ Farmers Protection Welfare Association.  A reply has been filed by the Government. There is no restriction in SEZ Act for mortgaging land for raising loan from Banks.

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