October 20, 2007
MEMORANDUM TO CHIEF MINISTER, GOVERNMENT OF GOA
IMMEDIATE WITHDRAWAL OF SEZ POLICY
Throughout the length and breadth of the country, the Central Government's
SEZ policy has generated much controversy and apprehension giving rise to
strong public outcry and aggressive protests from the "aam aadmi". These
disquieting circumstances should have rung warning bells for the Government
of Goa in regard to ushering in the SEZ policy for our little state. In any
case, effective governance would normally require that all projects be
announced only after analysis and delivery of a painstaking, in-depth
feasibility report that would take into account local conditions, the impact
and repercussions of the project on the land, the community, and in this
case, its impact on the existing infrastructure and its employment potential
for the local Goan populace. These basics of good governance however, seem
to have been blithely ignored by the Congress Government, who have, with
unseemly haste, plunged headlong into the imposition and implementation of
the SEZ policy, without any serious application of mind and study of the
viability and suitability of this controversial policy as regards Goa,
especially since it involves such massive tracts of land acquired from the
people and comunidades. While the SEZ policy might be attractive for states
like Bihar and Uttar Pradesh, with large tracts of land at their disposal
and an abundance of cheap labour, it is incomprehensible why the state
Government should inflict such a policy on a state like Goa, with limited
land holdings and which in fact suffers from a serious shortage of labour as
can be seen from the vast numbers of migrants who have rushed in to fill the
lacuna.
Ostensibly, the tax benefits and largesse showered on SEZs is for the
purpose of involving private enterprise in development of infrastructure.
However, if this infrastructure is developed in isolated and tiny conclaves,
the SEZs will only succeed in straining existing infrastructure rather than
improving it, worsening the existing power and water shortage and increasing
traffic congestion. Our once pristine villages will turn into urban slums
as is already happening thanks to the Goa Government's unregulated planning
and failure to implement rules and regulations. And for all this, SEZ
developers will be rewarded with unwarranted tax breaks.
Fifteen SEZs are earmarked for Goa, involving a total land area of 100 lakh
square metres, The estimated power requirements will be 350 MW, while they
would demand 400 lakh litres of water per day. Within 5 years, tiny Goa will
be struggling to cope up with an estimated influx of 3,12,000 out of state
workers that the SEZs will call for. Given the fact that Goa has
appromixately 0.13% of the national population and just 0.11% of the total
land area in the country, it is highly unwarranted, unjustified and
inequitable that Goa has to support 3.3% of the total SEZs in the entire
country.
The track record of preceding state Governments as well as the present one
in regard to waste management, water and power supply, road infrastructure
etc. has been dismal to say the least. Yet, without a qualm, the Government
of Goa has arbitrarily imposed a policy which will have massive
ramifications on the state in terms of infrastructure, without even
informing the public as to how it plans to deal with the greatly increased
demands that will be generated by the proposed SEZs on our already strained
and collapsing infrastructure.
Government of Goa's Implementation of SEZs in Verna, Salcete, Goa
Five SEZs have been earmarked for Verna. All five have been already
allotted to developers. The large number of irregularities and adhocism in
the implementation of these SEZs, seems to give more than sufficient cause
for grave apprehension as to the real motives behind the rushed and hurried
implementation of SEZs in Goa.
On making an in-depth study of the five SEZs being carved out in the village
of Verna/Loutolim, Salcete taluka, we wish to bring the following facts to
your attention.
Villagers from the villages of Verna, Loutolim and Nagoa, along with the
respective comunidades had written to the then Industries Minister Luizinho
Faleiro, registering their strong protests against the acquisition of land
and indeed the very concept of SEZs in their respective villages. In
addition the gram sabhas of these villages also passed resolutions to the
same effect. Yet the SEZs have been thrust on these villages, against the
wishes of the "aam aadmi", on land originally acquired by GIDC for expansion
of the Verna Industrial Estate (Phase IV), for industrial use, invoking
urgency clause, citing "for public purpose". Since the SEZs have been
handed over to private enterprise, where land use will also encompass
residential and commercial purposes, there is absolutely no question of
"public purpose". In addition the land has not been declared as Special
Economic Zone by the Central Board, nor has the Government taken any
resolution to change the purpose of acquisition. The said land has also not
been marked as SEZ in Regional Plan 2001. Needless to say, the land has not
been acquired for purpose of setting up SEZ, nor any change of purpose of
acquisition notified. Therefore, the Board has committed serious
illegalities in allocating this land as SEZs.
The callousness and adhocism of the GIDC's functioning can be seen from the
fact that just four out of twelve members of the GIDC Board were present at
the meeting where the decision to hand over huge tracts of land admeasuring
18,77,273 square metres in addition to 5 lakh square metres given in the
shape of internal roads and open spaces to SEZ developers was taken, without
even going through the motions of advertising the availability of industrial
plots in the local newspapers after planning, so as to create awareness
amongst the various entrepreneurs interested in availing of the industrial
plots to set up self employing S.S.I. in the Verna Industrial Estate.
The four members of the GIDC Board, namely Chandrakant Kavlekar, MLA &
Chairman, GIDC, Aleixo Sequeira, Minister of Power, Government of Goa, &
Member, GIDC Boad, Nitin Kunkolienkar, Member, GIDC Board & President, Goa
Chamber of Commerce & Industry and A. V. Palekar, Managing Director, GIDC,
who took this critical decision that will indisputably have serious
ramifications on the quality of life of the surrounding villages, were
definitely not technically educated or qualified to do so. In the absence of
an Impact Assessment Report and Social Audit, you will appreciate that these
individuals have taken this crucial decision without any consideration as to
its impact on the surrounding area and the people. This decision on
inflicting SEZs on Verna was taken on April 19th, 2006, just seven days
after the applications were handed in on April 12th, 2006, incidentally all
without inward stamps or company seals, without even permitting sufficient
time to study feasibility reports from the competent authorities or
receiving the mandatory Project Report from the applicant Companies.
Interestingly, one of the applicant companies, namely Planetview Mercantile
Pvt. Ltd., was not even registered on the date of allotment. You will
appreciate that according to GIDC rules, GIDC is not permitted to entertain
unregistered companies. The Board has also exceeded its jurisdiction, going
beyond the scope of its powers, by waiving off Transfer fees, sub-lease fees
etc. in the Board meeting held on April 19th, 2006, without even a request
for the said waiver by the applicants.
The Board has also arbitarily handed over all open spaces and internal roads
totally admeasuring over 5,00,000 sq. metres to the said companies free of
cost, initially, and then subsequently at Board Meeting 295 imposing a rate
of just Rs.100 per square metre to be changed and used as per their master
plan and for their exclusive use.
Although the Board passed a resolution at its 285th meeting in February
2006, fixing the minimum rate for industrial plots to be allotted at
Rs.750/- per square metre for Phase I, IA, II, IIA, & III of the Verna
Industrial Estate, interestingly, they did not fix a rate for Phase IV of
the Verna Industrial Estate. As the sequence of events shows, in April 2006,
land in Phase IV (which was acquired much after the above phases) was
allotted to SEZ developers at an inexplicable rate of just Rs.600/- per
square metre, much lower than the rate fixed for land acquired in earlier
years .
As per the SEZ Act, companies have to first identify land to set up the SEZ
unit, after which they must approach the Central Board for approval. After
obtaining approval, they may apply for allotment of land. In this case
however, the applicant companies have first got the land allotted in their
names and then subsequently approached the Central Board for approval, in
total violation of the SEZ Act.
Again, according to the Government Resolution on SEZs, "Water Supply (ii)
The SEZ authority (Special Economic Zone Authority constituted under
sub-section (i) of Section 13 of SEZ Act) shall ensure the provision of
adequate water supply within the SEZ zones for SEZ units". Yet, in the case
of Verna, the agreement contravenes this provision in the SEZ Act by stating
that developers of SEZs have to make their own provision for water. As a
consequence, these companies have freely commenced sinking of innumerable
bore wells in the allotted land, thereby depleting the ground water table
and reducing the flow of age old springs in the locality, which have been
maintained and used by generations of villagers for purposes of obtaining
potable water, irrigation etc. This has already seriously impacted the
quality of life of the villagers.
You will appreciate that GIDC itself is a development
authority/corporation. Therefore, on what basis can it be permitted to hand
over two thirds of land acquired by it for industrial purposes, "for public
purpose" to other private developers in the form of SEZs?
Incidentally, the total lack of respect for procedures by the GIDC Board can
be seen from the fact that a letter from Atul Ruia Enterprises Pvt. Ltd.
Dated April 17th, 2006, requesting 50 lakh square metres of land to be
acquired for an SEZ in Pernem and a letter from Aleixo Sequeira, MLA,
Loutolim constituency, dated 17th April 2006 and endorsed by the then Chief
Minister on April 18th, 2006, requesting 50,000 square metres of land in
Loutolim to be handed over to the Collector, both letters incidentally,
without inward stamps, was on the agenda discussed and resolved at a GIDC
Board meeting held on April 19th, 2006.
SEZs or Real Estate Projects?
The Congress Government's actual commitment to the interests of the "aam
aadmi" can be seen from the fact that while the "aam aadmi" is permitted a
Floor Area Ratio of just 80% in rural areas, a Floor Area Ratio of 150% has
been granted to SEZs for all sectors, including residential areas by Town
Planning, on the request of GIDC. Incidentally, it might be relevant for
you to note that M/s. K. Raheja Corp. Pvt. Ltd. , who are purely real
estate developers, are circulating a brochure all over the country,
promoting their Verna SEZ as a real estate project (copy of brochure
enclosed for your perusal). It is therefore, apparent that the SEZ policy in
Goa is being used merely as a ploy to sell off large chunks of Goa to real
estate lobbies. After Regional Plan 2011, undoubtedly, the SEZ policy is
proving to be the largest land grab scam in the state.
SEZ was conceptualized for export promotion, in states having an abundance
of cheap labour and barren land. Goa being a tiny state, has neither.
Therefore the people of Goa do not see the rationale and justification of
your Government inflicting this policy upon the State.
The PMAS also disagrees with your statement that the "state government
cannot go against the permissions given by the Centre for SEZs in Goa". We'd
like to refresh your memory that you were prepared to contest a public
notice by a Central Government Agency, namely Mormugao Port Trust, regarding
jurisdiction over Goa's coastal waters, which was notified twenty years ago,
and yet seemingly, have no reservations whatsoever, in handing over valuable
land assets of Goa to private parties, in the shape of SEZs which are in
fact, autonomous islands, a "state within a state" where the Government
loses jurisdiction, and for this, the Goa Government and the hapless village
panchayats do not even benefit through revenue. Why should the "aam aadmi"
of Goa carry this unbearable burden to fulfil the profit motives of vested
interests and real estate developers and in the process strain Goan
infrastructure by creating employment for the hordes of migrants from
undeveloped states of the rest of the country.
SEZ is a life changing policy for Goans, affecting their demography,
environment, infrastructure and even identity. As Chief Minister, you have
been elected by the Goans to look after their interest and not to fulfil the
compulsions of the Centre or to condone the negligence of previous state
Governments. The Goan "aam aadmi" has said a resounding NO to SEZs through
their gram sabha resolutions and the South Goa Zilla Panchayat
resolution.Therefore, you have to contest any policy thrust upon Goa by the
Centre which goes against the interests of the people you have promised to
serve.
We feel that you are a Chief Minister responsive to the people's wishes. We
therefore appeal to you to kindly
stay all ongoing SEZ activity in Goa, revoke allocation of all land granted
for SEZs in Goa & withdraw the SEZ policy for Goa immediately
Initiate a CID/CBI inquiry into the alleged frauds in handing over large
tracts of Goan land in Phase IV of the Verna Industrial Estate to so called
SEZ developers
failing which, we will be compelled to proceed to the next step in our plan
of action.
Looking forward to your prompt action in the matter,
Yours truly,
For PEOPLE'S MOVEMENT AGAINST SEZS
Charles Fernandes,
Convenor
Encl:
1. Letter from :Voice of Villagers" to Industries Minister
2. Copy of Gram Sabha resolutions of VPs of Nagoa, Verna & Loutolim
Copies to :
1. The Prime Minister of India, Dr. Manmohan Singh
2. The President of the AICC, Ms. Sonia Gandhi
3. Leader of the Opposition, Goa Legislative Assembly
4. Chief Secretary, Government of Goa
5. Managing Director, GIDC
6.Goa Bachao Abhiyan
7. Council for Social Justice & Peace
