How the FICCI is asking for 50% land to be Aquired

(Dr. krishan Bir Chaudhary)

How the FICCI is asking for 50% land of small and marginal farmers to be aquired by the government for the corporate for their REAL - ESTATE and SHOPING MALLS' business . Already government has given tax exemptions to the all corporate in the name of SEZ's.

The salient features of the Indian SEZ:- Unlike most of the international instances where zones are primarily developed by governments, the Indian SEZ policy provides for development of these zones in the government, private or joint sector. This is meant to offer equal opportunities to both Indian and international private developers.

(1)- 100 per cent FDI is permitted for all investments in SEZs, except for activities included in the negative list.

(2)- SEZ units are required to be positive net foreign-exchange earners and are not subject to any minimum value addition norms or export obligations.

(3)- Goods flowing into the SEZ area from a domestic tariff area (DTA) are treated as exports, while goods coming from the SEZ into a DTA are treated as imports. In addition to the duty exemptions, the units in the Indian SEZs do not have to pay any income tax for the first five years and only pay half their tax liability for the next two. SEZ developers also enjoy a 10-year “tax holiday”. The size of an SEZ varies depending on the nature of the SEZ. At least 50 per cent of the area of multi-product or sector-specific SEZs must be used for export purposes. The rest can include malls, hotels, educational institutions, etc.

(4)- Facilities in the SEZ may retain 100 per cent foreign-exchange receipts in Exchange.

(5)- 100 per cent FDI is permitted for SEZ franchisees in providing basic telephone services in SEZs.

(6)- No cap on foreign investment for small-scale-sector reserved items which are otherwise restricted.

(7)- Exemption from industrial licensing requirements for items reserved for the small-scale-industries sector.

(8)- No import license requirements.

(9)- Exemption from customs duties on the import of capital goods, raw materials, consumables, spares, etc.

(10)- Exemption from Central Excise duties on procurement of capital goods, raw materials, consumable spares, etc. from the domestic market.

(11)- No routine examinations by Customs for export and import cargo.

(12)- Facility to realize and repatriate export proceeds within 12 months.

(13)- Profits allowed to be repatriated without any dividend-balancing requirement.

(14)- Exemption from Central Sales Tax and Service Tax.

The incentives for developers of SEZs include:- Exemption from duties on import/procurement of goods for the development, operation and maintenance of SEZs. Income tax exemption for a block of 10 years in 15 years., Exemption from Service Tax, FDI to develop townships within SEZs with residential, educational, health-care and recreational facilities permitted on a case-by-case basis.

Then why the corporates wants to forcibly grab the agricultural land of farmers ? The agriculture is not a business it's a way of life of 70% population of the country.



(Editorial : Kisan Ki Awaaz Magazine)