Left in the cold, Moily takes back SEZ statement

Congress Working Committee member N Veerappa Moily has retracted his reported statement against Special Economic Zone and described SEZ as a 8220;paradigm shift8221; in Indian development after the party high command pulled him up for indiscretion.

Congress Working Committee CWC member N Veerappa Moily has retracted his reported statement against Special Economic Zone SEZ and described SEZ as a 8220;paradigm shift8221; in Indian development after the party high command pulled him up for indiscretion.

A letter written by Moily had found its way to newspapers as an 8220;internal party document,8221; forcing the party to repeat its now well-known position. In the reported letter Moily had railed against SEZs and warned of severe political fallout for the SEZ policy of the government. Though Moily did not deny writing it, he claimed it was a 8220;personal letter,8221; refusing to disclose whom it was addressed to.

Congress spokesperson Jayanti Natarajan said the 8220;party8217;s position on SEZ is clear,8221; and 8220;nobody has been asked to prepare any note on this issue.8221; 8220;The party has not sought or received any reports on this issue. Party8217;s stand is clear that SEZs should not be coming at the cost of farmers,8221; she said.

An EGoM chaired by Pranab Mukherjee is holding consultations with various players to iron out differences that have emerged over land acquisition, compensation and tax rebates connected to setting up of SEZs. A Congress delegation comprising AICC general-secretaries Digvijay Singh, Ashok Gehlot and Moily had met members of EoGM to convey party8217;s position in December 2006.

The Congress position on SEZ, formulated during a conclave of chief ministers in Nainital in September 2006, had three elements: 1 fertile land should be acquired only when extremely necessary and for reasons of contiguity; 2 compensation to farmers should be commensurate with future appreciation in the acquired land; and 3 the displaced community must be absorbed into the new economy generated by the SEZ.

The party was then responding to snowballing resistance to land acquisition in different parts of the country. Digvijay Singh and Jairam Ramesh were the think tank for this.

Other issues, which subsequently became serious debate and not settled so far are: 1 the tax rebates available to SEZs; 2 demands for amendments in the SEZ Act to specify land usage; and 3 demand for amendment in the land acquisition Act and for an active role of Central government in rehabilitation of the displaced. These demands have come from different quarters including the Left and within the Congress.

Story continues below this ad

A senior Cabinet minister of Congress said all these issues were being discussed at various levels and 8220;there will be some changes,8221; indicating the strong possibility of amending the SEZ Act itself.

Meanwhile, the Congress manifestos in three states going to polls are unlikely to talk about the SEZ issue, said a CWC member. On Monday, the manifesto committee of the party approved manifestos for Punjab, Uttarakhand and Manipur 8212; all Congress-ruled states. Punjab has four and Uttarakhand has three SEZs in pipeline.