Govt scraps 8 Goa SEZs

First reversal after last year's protests in the state. As many as eight Special Economic Zones (SEZs) proposals in Goa were scrapped at one stroke by the inter-ministerial Board of Approvals, which met here today. The Board also decided to ask 12 developers in the state why their zones should not be cancelled. This is the first incident of a reversal of a Central policy, following a strong anti-SEZ movement in Goa last year that had threatened to bring down the Digambar Kamat-led Congress government. SEZs are underwritten by a central law passed by Parliament in 2005 that permits special taxation and other fiscal benefits to the developers and the units inside these zones. The Goa government, on December 31, 2007, had recommended that the Centre scrap all the zones in the state following widespread public protests. Anti-SEZ protesters had argued that the zones will put extra pressure on the already fragile infrastructure in the state and lead to a dilution of the Goan identity. Their argument was that "outsiders' would flood Goa in search of SEZ jobs that the locals will not be able to fill. This cancellation is the first time in history that ethnic issues have led to reversal of central industrial policy. Formally approved zones that are facing withdrawal of status include Inox Mercantile Company's 48-hectare Biotech zone in Verna, Panchbhoomi Infrastructure Pvt Ltd's 18.5-hectare infotech zone in North Goa and a 48-hectare Infotech zone of Paradigm Logistics in Verna. "We are following the principle of natural justice and are sending showcause notices to 12 formally approved zones. Proposals that were sent by the state and were yet to be considered by the Board of Approvals will be treated as withdrawn,' said Commerce Secretary Gopal Krishna Pillai, who heads the board. Three controversial SEZs in Goa