Monday’s State Cabinet decision to allow private companies to develop Special Economic Zones in the State on land measuring above 100 acres and above, is expected to partially address the issue of land acquisition for industrial areas which continues to dog the government. According to sources in the Department of Commerce and Industries, the decision was taken keeping in mind the recurring public outcry against acquisition of agricultural land for industries.

Certain conditions in the policy draft sum up the revamped government strategy on SEZs. They say that the approval for the project would not mean that the government could be held responsible for any conflict or dispute on the right to the land.

The message is clear: The government would rather be an overseer than actual partner in the acquisition process.

While the Department claims that the response from investors to Karnataka’s offers as an investment destination has been tremendous over the past four or five years, the deadlocks over land acquisition - that’s entrusted to the Karnataka Industrial Area Development Board - have hit the progress road map considerably.

Changed stance
With the new formula the government expects to win more support from the farmers and also formalises the government’s recent change of stance with regard to SEZs: from a policy of acquiring land by itself to a policy wherein the developers have to deal with the farmers directly.

As per the new formula, the acquired land will not be handed over to KIADB. If the project doesn’t come under development plans of Bangalore Development Authority or any other local authority, the developer will have to get an approval by earmarking the area as “industrial”.

The developers will also have to get the layout plan approved by KIADB and get approvals from the Karnataka State Pollution Control Board and Department for Environment.

SOPS ON OFFER
The move to return 20 per cent of developed land for every acre acquired for industrial areas, also comes as a sop to reduce resistance to land acquisition. Though the move entails cash compensation, the government hopes that most farmers would prefer developed land to money.

“Another factor that could lure the land-losers is that the conditions for developing their share of the land are relaxed.” a senior KIADB official said. The official said the rationale behind excluding SEZs and Single Unit Complexes from the new land-sharing model was that there was no “compulsion” involved in acquisition of land for SEZs and SUCs, because developers were directly dealing with the land-owners.