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Special Economic Zone and Its Impact on

Land Resources in India

 

Dr. Suraj Bhan

Former Additional Commissioner

Ministry of Agriculture, Govt. of India

President, Soil Conservation Society of India (SCSI)

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This challenging task is feasible first by increasing the area of land in agriculture and secondly by enhancing the level of production from presently available lands on sustainable basis.

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National Land Use Policy will seek to promote “technically sound, economically viable, environmentally non-degrading and socially acceptable use of country’s national resources – land, water and genetic endowment to promote sustainable development of agriculture. Measures will be taken to contain biotic pressure on land and to control indiscriminate diversion of agricultural lands for non-agricultural purposes”

National Agriculture Policy 2000

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As per Seventh Schedule of the Constitution of India, Land and Water falls under the purview of State Government, therefore, it is for the States to bring about suitable legislation regarding regulation of conversion of agricultural land for non- agricultural purposes.

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Some of States through their SLUBs have issued instructions and executive orders regarding diversion of agricultural land for non-agricultural purposes.

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National Commission on Farmers under the Chairmanship of Dr. M. S. Swaminathan in its final report in October, 2006 “Serving Farmers And Saving Farming”, has observed that the “prime farmland must be conserved for agriculture and should not be diverted for non-agricultural purposes and for programmes like the Special Economic Zone.

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Such special programmes should be assigned wastelands and/or land affected by salinity and other abiotic stresses that reduce the biological potential of land for the purpose of farming.

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Every State should constitute a Land Zonation Team consisting of soil scientists, agronomists and remote sensing specialists to earmark soils with a low biological potential for farming such as wastelands, lands affected by salinity, acidity, etc., for industrial activities and construction.

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It is in our national interest that agriculture and industry both prosper in a mutually reinforcing manner.

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The Ministry of Agriculture is main user of land, and diversion of agricultural land has direct impact on overall food grain production. The land acquisition and management including the matter relating to wastelands is being dealt by MoRD.

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The comments/observations of Ministry of Agriculture on the concerned points of ‘the Land Acquisition (Amendment) Bill 2007’ and ‘the Rehabilitation and Resettlement Bill, 2007’

• India has about 18% of world’s population and 15% of livestock to be supported only from 2% of the world’s geographical area.

• Per capita availability of cultivable land has declined from 0.27 ha. in 1982 to 0.18 ha. in 2003.

Contd…

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• About 60 per cent of the country’s population depend on agriculture for their livelihood even though the share of agriculture in the GDP has sharply declined.

• Diversification of agricultural land to non-agricultural activities can adversely affect food security, livelihood and general wellbeing of those dependent on agriculture not only farmers but also agricultural labourers many of whom are poor.

Contd…

Contd…

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• National Agricultural Policy of 2000, the National Commission on Farmers which submitted its report in October, 2006 and the Regional Plan, 2021 of the National Capital Region strongly advocate preservation and conservation of farm land for agriculture.

• Land which is uncultivable may be utilized for industrial and non-agricultural purposes.

Contd…

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Special Economic Zone (SPECIAL ECONOMIC ZONE) act 2005 was passed by parliament in May 2005 which received presidential ascent on the 23 June 2005. After extensive consultations, the Special Economic Zone Act 2005, supported by specific economic zone rules came into effect on 10 February 2006.

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The main objectives of the Special Economic Zone act are:• Generation of additional economic activities.• Promotion of export of goods and services.• Promotion on investment from domestic and foreign

sources.• Creation of employ under opportunities.• Development of infrastructure facility.• The Special Economic Zone Act 2005 envisage key role for

the State Government an export promotion and creation of related infrastructure.

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WHAT IS A SPECIAL ECONOMIC ZONE?

A Special Economic Zone (SPECIAL ECONOMIC ZONE) is an especially demarcated area of land, owned and operated by a private company

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WHY SPECIAL ECONOMIC ZONES?

The stated purpose of creating SPECIAL ECONOMIC ZONEs across India is “the promotion of exports”.

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How Many SPECIAL ECONOMIC ZONEs?• 237 SPECIAL ECONOMIC ZONEs in 19 states (occupying

86,107 hectares) have been approved by the Central government.

• 63 of these SPECIAL ECONOMIC ZONEs have already been notified.

• 23 SPECIAL ECONOMIC ZONEs are operational, 18 in IT sector.

• Ultimately 500 SPECIAL ECONOMIC ZONEs.• Total amount of land to be acquired across India: 150,000

hectares (the area of National Capital Region). This land – predominantly agricultural and typically multi cropped – is capable of producing close to 1 million tons of food grains.

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Displacement and Loss of Livelihoods

Estimates show that close to 114,000 farming households (each household on an average comprising five members) and an additional 82,000 farm worker families who are dependent upon these farms for their livelihoods, will be displaced. In other words, at least 10 lakh (1,000,000) people who primarily depend upon agriculture for their survival will face eviction. Experts calculate that the total loss of income to the farming and the farm worker families is at least Rs. 212 crores a year.

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WILL SPECIAL ECONOMIC ZONES CREATE JOBS?

SPECIAL ECONOMIC ZONEs will attract modern industry and services in order to succeed. To that extent they are unlikely to generate too many jobs.

The government does not provide information on jobs lost, only on jobs created.

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The government does not provide information on jobs lost, only on

jobs created.

Finance Minister P. Chidambaram wrote to Cabinet colleagues saying: “SPECIAL ECONOMIC ZONEs per se will distort land, capital, and labour cost, which will encourage relocation or shifting of industries in clever ways that can’t be stopped. This will be further aggravated by the proliferation of a large number of SPECIAL ECONOMIC ZONEs in and around metros.”)

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SPECIAL ECONOMIC ZONES: LEGAL VIOLATIONS

• The following are the main legal violations because of the SPECIAL ECONOMIC ZONE Act, 2005:

• It violates the letter and spirit of the Indian Constitution.

• It infringes the fundamental rights of the citizen guaranteed in Part III of the Constitution.

• Relaxation/inapplicability of many labor laws (including under the Industrial Disputes Act, Contract Labor Act, Factories Act, Minimum Wages Act, Trade Union Act).

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• Environment (Protection) Act is inapplicable to SPECIAL ECONOMIC ZONEs. No environmental clearance needed.

• Violates Panchayat Raj Act (1996) for local self government.

• Violates laws granting rights and control to Adivasi communities over their land.

• Violates many international conventions on human rights.

Contd…

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Impact of the Special Economic Zone• Affluent of the industry will deteriorate physical condition of

soil.• The chemical affluents from the industries will also effect the

bio-resources.• The sub-surface and under ground water quality will be

impaired, because of heavy metals etc., through the contaminated water from the surface.

• The fertile land will become unproductive for the agriculture.• The environment will be affected by such pollution.• The land value will be decreased.• The Socio-economic conditions of the people in the area will

be effected.

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Thank you