SEZ: Staggered Economic Zone?
The largest proposed SEZ near Mumbai, consisting of 10,000 hectares of land, at an estimated cost of Rs. 40,000 crore, might become the largest ever success for farmers, as the Supreme Court has given a ruling which has put the project in jeopardy.
THE SUPREME Court (SC) has taken a firm stance against the development of what could be India’s largest free trade zone. The SC seemed to support the farmers unanimously against the Mumbai Special Economic Zone (MSEZ). Failure to acquire land is the biggest impediment for this project, which is promoted by Mukesh Ambani.
MSEZ is a consolidated 10,000 hectare area in Raigad, close to both, Mumbai-Pune Expressway, as well as the International airport. However, the bench, headed by Justice B. Sudarshan Reddy, was less than impressed, and consequently less interested, especially by the fact that the land could not be acquired by negotiating with farmers despite two extensions of deadlines since the project got the nod in 2005.
Now, MSEZ has only between June 9 and July 26 to wrap it all up – a close to impossible task. A plea for a stay order on the acquisition was made which could give more time to MSEZ, but was outrightly rejected by the Supreme Court. Earlier, even the Bombay High Court interim order had refused a similar stay order.
Not adhering to the deadlines could mean a dead end for the project, as the Land Acquisition Act of 1894 is invoked now. According to the Act, transfer of ownership must essentially occur within three years, otherwise the process elapses. Also, the state has no liability to engage in the unpopular acquisition, leaving the industry to deal individually with the villagers. But the offer of MSEZ isn’t finding any takers.
Spearheaded by NGOs like the Anti-Globalisation Front, the paddy cultivators of these 45 villages aren’t budging; they have successfully retained 80 per cent of the area of MSEZ. The only acquired land is in two remote and separated districts of Uran and Pen, which doesn’t suffice anyway. Until at least 90 per cent land is acquired, MSEZ can’t get full approval from the government board.
Thus, the farmers might actually turn out powerful enough to oust the giant conglomerate. MSEZ, already demanding a Rs. 40,000 crore investment, could turn even more costly, owing to confrontations, if they are not totally scrapped.
Apparently, Mukesh Ambani can still rest with the Navi Mumbai SEZ that he is developing, for Raigad is simply a Staggered Economic Zone right now!
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