Kerala comes out with SEZ policy

Thiruvananthapuram: The Kerala Government has come out with a policy setting the norms and regulations for establishing special economic zones (SEZs) in the State.

The policy, announced by the Chief Minister, Mr V.S. Achuthanandan, at the media briefing after a Cabinet meeting is binding on all SEZs that have been approved by the Centre and those seeking approval in future.

Outlining the policy, the Chief Minister said that the population density in Kerala is higher than in other States, which made SEZs needing large tracts of land non-feasible in the State. The approval for SEZs will be given only after taking this fact into account.

The Government will not allow filling up of paddy fields for purpose of setting up the zones. Also, private investors will not be permitted to acquire land for the zones, but can apply for space in the land being acquired by government agencies for setting up industrial parks.

SEZs will not be exempted from paying electricity duty. Also, labour and trade union laws, Provident Fund laws, Factories Act and Gratuity Act, among others, will be applicable to SEZs.

The condition in the Central policy that the zones will be exempted from Chapter 5B of the Industrial Disputes Act will not be applicable to the zones in the State. The policy stipulates that 70 per cent of the land earmarked for SEZs should be utilised for industrial purpose, while the remaining land can be used for allied facilities such as residential apartments, hotels, recreation space and roads.

The residential apartments should be exclusively for employees in the zones and not be sold to outsiders.

The zones will come under the Panchayat Raj Act and nobody will be given exemption from Section 200 of the Act. The Single Window Clearance Act will be applicable to the zones.