To boost the economic growth, Indian government is giving a lot of importance on setting up Special Economic Zones (SEZ) by the private companies. Indian government is offering generous tax breaks to foreign and local companies in SEZs. There is nothing wrong in and hardly anyone objects seriously to this initiative fo the Indian government. However, the bone of contention is about the land acquisitions. Companies need large areas of land to set up SEZs. Since, land is unavailable in the densely populated urban areas; the state governments let the companies to acquire land in the rural areas.
In the rural areas, most people are farmers and they totally depend on the agricultural land for their survival. So, many of the farmers are extremely unhappy when the companies come to acquire their land. Giving them some money hardly benefits them as these people only know farming. So, Indian government should be careful from now about this matter. The best way to satisfy the farmers is to provide generous compensation as well help them to develop their skills for getting a job in the industries.
Related Article
A comparison of China and India w.r.t SEZ policy is available here
http://reliancesez.blogspot.com/2006/10/china-vs-india-sezs-comparison-and.html
Posted by: sezindia | October 6, 2006 4:34 AM | Permalink to Comment