The primary objective of promoting SEZs was to facilitate exports and subsequently to attract Foreign Direct Investment (FDI), thus enabling Indian entrepreneurs to operate under international conditions. However, it is now becoming clear that, what ever be the goal, SEZs will be like the return of East India Company with ABSOLUTE authority, NIL taxation, and ATTRACTIVE subsidies.
SEZs are allowed to enjoy 15 year tax holiday - 100% for the first 5 years, 50 % for the next 5 years and up to 50% for the next 5 years subject to the creation of reserves on export profits available to units. SEZs are also showered with too many exemptions! They are exempted from Customs duty on goods imported into SEZs and exported out of SEZs; exempted from Excise duty on goods brought from Domestic Traffic Area (DTA) to SEZs; Exempted from Service Tax, Security Transaction Tax, Central Sales Tax, Local Sales Tax, exempted from VAT & MAT, including Exemption from Dividend Distribution Tax (DDT). SEZs are also exempted from public hearing under Environment Impact Assessment Notification and have exemption from port restriction under Drugs & Cosmetics Rules. As per SEZ Act of 2005 Every State is required to provide basic facilities such as Water and electricity as is required by SEZs with full exemptions in electricity duty and tax on sales of electricity for self generated and purchased power and to allow generation, transmission and distribution of power within SEZ Therefore, the CMs statement that the state will not provide the SEZ units with water and electricity is unlearned and irresponsible statement. Impact on Aam Admi Such rapid promotions and establishment of SEZs raises many vital issues: - A) Violation against existing legislations: The SEZ Act violates the rights of local self governments like the Gram Panchayat (local self government at village level) and it violates the 73rd constitutional amendment, as the SEZs are exempt from town planning and supervision by municipality. The SEZ Act negates existing legislation like the Industrial Disputes Act 1947 under the facade of the SEZ being a public utility service hence the labor force will be highly vulnerable with no union and no power. B) Inadequate compensation: Land records are woefully inadequate, and fail to list people who have cultivated the land for decades. More than 25,000 people have been already displaced due to SEZs. C) Negative impact in the Long Run: The Indian Finance Ministry has expressed concerns that in the long run all exporters would shift their base to these designated enclaves, robbing the government of 1.75 trillion rupees (US$38 billion) in tax revenue. SEZs promote a new form of colonization creating an oasis of development amid vast deserts of undeveloped rural and urban areas. Surrendering National Sovereignty to foreign interests where no local law of the land is applicable, as SEZs are deemed foreign territories. Severe environmental damage to the unique ecosystems as no environmental clearance is required to set up SEZs. SEZs will be ruled by the all powerful SEZ Commissioner with absolute authority and no accountability to either state or central government which will give rise to Military Rule and Corruption. Take TEN Can Goa government, Chief Minister, President of Goa Congress and or Sympathizers of Congress Party answer the following questions to the entire satisfaction of Goans with legally justifiable explanations with supporting data! 1. Proposed SEZs in Goa are for promotion of private companies and yet Goa government claims it as Public Purpose Policy. What are the bases for such claims? And as per Act and Rules does Goa Government have any control or say once SEZ is commissioned? 2. Who has done the reliability studies on Impact assessment/s, Benefit Cost ratio and assured Generation of Employment on the proposed SEZs? If done, why are the studies not published for Aam Admis knowledge? 3. Environment is a right of every citizen guaranteed by Constitution of India under article 51. SEZs with industries, infrastructure or even real estate development are bound to have environmental impacts such as impacts on water, drainage, land (with reclamation, pollution or even demographic changes). Who has done this study on the proposed / cleared SEZs in Goa? 4. SEZs will have serious social and economic impact on the people and communities whose land is being acquired for the same. The principle of eminent domain is misused along with the British regime's act, the Land Acquisition Act (1894), with such draconian act. Even in spite of this should people of Goa feel proud of people's sovereignty in Goa? Or should they feel ashamed? 5. What benefits Goa will get from proposed SEZs when SEZs are unjustifiably exempted from most of the taxes and favored with whooping subsidies? 6. The SEZ project, the policies and the plans are antidemocratic and anti constitutional and yet Goa government is pacifying Goans saying SEZs are for development of Goa - Whose development is Goa government talking about? 7. The National Rehabilitation Policy, Environment Rights guaranteed by Constitution of India, Amendments to 73rd and 74th Constitution of India, and Public Interest Policies are all put to stake in formation of SEZs and still how can government appeal Goans to encourage SEZs in the name of Development? 8. What is the type of work force that will be required in the proposed SEZs of Goa? Has Goa government any data on such requirements? Has Goa government trained Goan youths in that direction? Or are these SEZs meant to provide livelihood only to youths from outside Goa? 9. Has Goa government taken any initiatives to cope up with the additional requirements of essentials like water and electricity? Even without SEZ Goa is deficit in water and electricity requirements! 10. What guaranties and undertakings have Goa government taken from promoters of SEZs to ensure that Goan will get at least 70 - 80 % of jobs AT ALL THE LEVELS OF COMPANYS ORGANOGRAM in the proposed SEZs. Conclusively, in the absence of True Public Purpose Policy on SEZ, Goans must fight with truly United Goan Spirit irrespective of which political party one belongs for a complete revocation of SEZ implementation in Goa. Whichever way the Goa Government may implement this Act and whatever be the size of the SEZs, the people of Goa must not accept this Corporate Land-grab which will drain away our resources into Corporate Coffers and mortgage our rights to brutal Corporate Power. SEZ is another fraud of Congress Government like that did with Regional Plan. Best regards, Dr. U. G. Barad