chapter-iv sez in uttar pradesh: a case study...

Chapter-IV: SEZ in Uttar Pradesh: A Case Study of Noida

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CHAPTER-IV

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4. Introduction of SEZ

The concept of SEZs was introduced for the first time in India through the Foreign

Trade Policy of 2000-2001. A SEZ is an especially demarcated area of land, owned

and operated by a private company, which is deemed to be foreign territory for the

purpose of trade, duties and tariffs. The SEZs enjoy exemptions from customs duties,

income tax, sales tax, service tax. A SEZ is a geographical region that has economic

laws that are more liberal than a country’s general economic laws to attract FDI. The

numbers of SEZs continues to expand globally and are viewed as an important policy

instrument to promote industrialization and economic growth and generate own of

employment.1

The SEZ Act, 2005 is expected to foster exports and FDI inflows into India by Public

Private Partnership (PPP) for the development of world-class infrastructure and to

attract private investment (domestic and foreign), boosting economic growth, exports

and employment.2 The Ministry of Commerce and Industry (MoCI) lays down at the

regulations for administering of the SEZs. The policy framework for SEZs has been

supplemented with SEZ Act and the supporting procedures are detailed in SEZ Rules,

2006.

The SEZ is an industrial cluster with assured infrastructure aimed at increasing the

country’s exports,3 where as sustainable development is to “de-couple” economic

growth from adverse effects on the environment and natural resources.4 The

sustainability notions supports and stimulate new innovative initiatives aims at

improving the stock, quality and productivity of the resource base and livelihood

opportunities.5

1 K.N.Ghorude, India‘s Special Economic Zones: Role and Critical Success factors (HimalyaPublishing House, Delhi,2008)

2 Export and Import Directory India’s Finance and Investment guide,htt;://finance.indiamart.com(2007).

3 Partha.Mukhopadhyay, The Promised Land of SEZs, 581 & 582 Seminars, Jan. / Feb. 2008, NewDelhi.

4 “India to Restart Clearing EconomicZones”-yahoo! 7News, 2007.5 N, Lalita. “Sustainable Management of Local Resources”Yojana, (55)33(2011).


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Figure-4.1: India’s Mushrooming Of SEZ.


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The SEZs devastated natural resources and transferred land at cheap rate to real estate

developers in the name of development giving an empty promise to farming

community in India.6 It is indeed true that these "foreign territories" provide

livelihoods to thousands of people but the benefits of SEZs in terms of sustainability

remains euphoria. It is important to remember that SEZs entice investors with the

promise of cheap labour and a peaceful work environment.7 The paper assesses the

socio-economic impact of SEZ on sustainability and resource utilization empirically

in Gautama Buddha Nagar district of Uttar Pradesh.

Figure-4.2: Layout Representation of the Proposed Cities Across Five Locations

Along The Yamuna Expressway

Source: Jaypee group, Annual report 2009-10

6 K.N. Ghorude, India‘s Special Economic Zones: Role and Critical Success factors (HimalyaPublishing House, Delhi, 2008).

7 V.K. Srinivasan & P.S. Sundaram, “SEZ – International Experience and Indian scenario”MediaIndia New Service, Bombay, Jan. 2008


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4.1 Study Area of Gautama Buddha Nagar (Noida)

Figure-4.3: Root map of survey area

4.2 Profile of Study Area: Gautama Buddha Nagar

Gautama Buddha Nagar district consists of four major sub divisions, Dadri, Jewar

Dankor and Bisarkh. District Gautama Buddha Nagar district was formed in 1997 by

taking entire Dadri tehsil,6 villages of Hapur tahsil8 both from Ghaziabad and three

town of Khurja tehsil both from Bulandshehar. Table-I depicts the geographical

setting of district of Gautama Buddha Nagar.

8 The name has been change by new State Government Policy


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Table-4.1: Profile Gautama Buddha Nagar District

blocks Area (Sq Km.) Total-population Male populationFemale

population

Sc

population ST

Senior

Basic

School

Higher

Secondary

School

Total

Literate(%)

Dadri 473.82 6142985 78392 64593 23026 -- 35 15 58223 73.9

Jewar 428.99 135801 73455 62346 34701 -- 40 14 47537 59.7

Bisrakh 318.25 138563 78437 60126 21731 34 97 19 61268

dankor 452.78 183836 99944 83892 37678 -- 35 15 66859

Source: District Statistical Handbook, 2000-01, http://gbnagar.nic.in


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The region in which the Zone lies is located on the western periphery of UP and is

situated on the upper daub of the Ganga and Yamuna which form the eastern

boundaries respectively separating the region from district of Bulandshahar,

Moradabad and Badaun in the east and the state of Haryana and Delhi in the west.9

The location is approx. 30 min drive from Delhi. Major towns such as Delhi, Meerut,

Faridabad ,Aligarh and Mathura falls within the 100 km radius and Jaipur ,Bareilly,

Agra and Gwalior falls within 300 km radius of the SEZ.10 The region is endowed

with adequate water resources. The main source of surface water in the region is

rivers, canals and lakes. The bulk requirement of water in the region is met by rivers

Ganga and Yamuna.11

The quality of water is considered very well. As regards to the ground water resources

85% of the annual precipitation occurs during monsoon months the rainfall ranges

between less than 50 cm in south west of the region to more than 75 cm in the north

and north east parts and about 180 cms near Delhi state. The general water table

ranges between 6 to 15 meters below the ground level. The quality of ground level in

the entire region is good and is used for drinking and irrigation purposes. A high

portion of all most 96% of the cultivable area is under irrigation. The region has

mostly rich and loamy soil which is very fertile.12 Due to the mounting pressure of

population and extensive cultivation, very little has been left of the natural vegetation.

The area has dry deciduous trees and at the major demographic features points

towards the lead in almost all sub heads for Dadri sub district.

The New Okhla Industrial Development Area, which is analogous to the Planning

Area/ Notified Area of Noida city falls entirely within the district of Gautama Buddha

Nagar. It covers 81 revenue villages and a total of about 20,316 hectare of land. It is

located enclose proximity to the metropolitan city of Delhi and lies along the eastern

and southeastern boundaries of the National Capital Territory of Delhi. The area

forms part of the U. P. Sub-region of NCR.

9 J.Cheng & I. Masser, “Urban growth pattern modeling: a case study of Wuhan City” PR China.Landscape and Urban Planning, (62) 99-217.2003

10 M.A. Gomarasca, et. al. “One century of land use changes in the metropolitan area of Milan”(Italy). International Journal of Remote Sensing, 14(2): 211-223 (1993).11K.E. Haynes, F.Y. Phillips & J.W. Mohrfield, “The Entropy: Some Roots of Ambiguity” Socio-Economic Planning Structure, 14: 137-145(1980).

12 Lo, C.P & X. Yang, “Drivers of land-use/land-cover changes and dynamic modeling for theAtlanta, Georgia Metropolitan Area” Photogrammetric Engineering of Remote Sensing, 68(10):1062-1073(2002).


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Figure-4.4: Survey of Villages and Sectors of Noida

Noida is a planned township with an ultimate size of 10,000 small scale industrial

units that provides employment to 41,000 industrial workers and is having an

integrated township for 37500 workers that has already reached a population of

398448 as per Census of 2001.


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Figure-4.5: Rural and Urban Representation of Gautama Buddha Nagar

NSEZ is located in district Ghaziabad of UP within the planned township of Noida,

with draft Master Plan of Noida 2021.13 It is situated between Delhi and greater Noida

which is the most developed part of UP falling within National Capital Region. The

size of the zone has presently been set at 1000 ha.

A SEZ or free trade zone is a cluster of industrial units operating in well-defined area

within the geographical boundary of a country where certain economic activities are

promoted by a set of policy measures that are not generally applicable to the rest of

the country.14

13 Neetha N, Varma UK (2004). Labor, Employment and Gender Issues in EPZs: The Case of NEPZ.Noida:V.V. Giri National Labor Institute

14 (New Okhla Industrial Development Authority (2010)


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the country.14




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the country.14




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Figue-4.6: Population Growth of Area

(Source: A. H. Jamal, “Noida Master Plan” Town & Country Planner, 2021)

Noida NSEZ was set up in 1985 in Noida phase-II on a 310-acre plot of land. NSEZ

has 370 developed plots, nine factory complexes that can accommodate 154 units.

Industrial units comprise software developers, garment manufacturers, jewelers,

manufacturers of electrical goods, etc.15. With the advent of NSEZ, the land

surrounding and the industrial area of SEZ have been transformed into a semi-urban

residential area.16 This has resulted in infrastructural development activities like road

construction, housing, transport activities, etc. in the adjoining areas of SEZs. These

large scale infrastructural development activities in nearby areas of SEZ resulted in air

pollution, water pollution and degradation of natural resources, which are precious for

the growth of a nation.

15 (Noida Special Economic Zone (2010).16 H.C. Honnappa & K.G. Ramakrishna, “SEZs: Some Critical Issues” Southern Economist May

(2009).


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(2009).


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(2009).


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4.3 Socio-Economic Indicators

The socio-economic indicators of Gautama Buddha Nagar provide data on education,

gender, poverty, housing, amenities, employment and other economic indicators. The

socio-economic indicator under the purview of SEZ Act can be briefly outlined as

under:

• To study various socio economic aspects and trends in population in various

planned nodes of Dadri, Dankor, Bisarkh & Jewar, sub district of Gautama

Buddha Nagar.

• To establish benchmarks of progress for SEZ and highlight the directions for

future planning,

• To ascertain economic status of households in terms of household income,

expenditure, ownership status of household assets.

• To understand the transportation profile of the Dadri, Dankor, Bisarkh & Jewar

residents and to ascertain opinion of the household regarding social, cultural,

environmental, health and security aspects.

• To study the status of Women Empowerment in SEZ.17

The main purpose of conducting the periodical survey is to provide the benchmark

progress of SEZ and highlight the direction to which the city of Gautama Buddha

Nagar is moving. The information generated from the household surveys is very

crucial for providing valuable direction for socio- economic profile of settled

population, performance of Gautama Buddha Nagar. Thus the socio-economic impact

is studied broadly taken in areas of under progress educational, social indicators,

economic indicators, employments, housing & amenities, drinking water sanitation,

and health. The table-3.2 represents the socio economic trends of the area of study of

Gautama Buddha Nagar.

17Nomani Zafar Mahfooz & Mohammad Rauf, Engendering Socio-Economic Entitlements and GenderJustice To Women in Special Economic Zone (SEZ) in India, paper presents on the NationalSeminar in Viveka nanada college of Law at Aligarh, 2 & 3rd April 2011.


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Table- 4.2: The Socio-Economic Indicators

StateIndicators

U.P

EDUCATION

State/UT wise LiteracyRate in India 2001

(Census)

Percentage of Literates to Population Aged 7 Years & AboveTotal Male

Female

56.3 68.8 42.2

State/UT wise GrossPrimary Enrolment Ratioin India 2004-05 (Latest)

Gross Primary (6-11 years) Enrolment RatioTotal Boys Girls

107.54 110.63 104.15

Mean Age at Effective

Marriage of Females by

Residence in India and

Bigger States, 2005

(Latest)

Age at effective marriage

Total Rural Urban

<18 18-20 21+All

Ages< 18

18-

2021+

All

Ages< 18 18-20 21+ All Ages

16.218.9 24.3 19.8 16.2 18.9 2 4.2 19.6 16.6 19.2 24.7 21.4


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SOCIAL

INDICATORS

State/UT wise Proportion

of Population below

Poverty Line in India

2004-05 (Latest)

State Specific Poverty

Line

No. (Rs Per

Capita/Month)

No. of Persons (Lakhs)

Percentage of Persons

Rural Urban Rural Urban Combined Rural Urban Combine

365.84 483.26 473.00 117.03 590.03 33.4 30.6 32.8

ECONOMIC

INDICATORS

Per Capita Net State

Domestic Product at

Current Prices 1999-2000

to 2005-06 (Position as on

25.11.2007) In Rupees

Year 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

9405 9541 9781 10435 11250 11941 13262

Employment in the

Organised Sector in India

(Latest)

Total Employment in Thousand

As on 31.3.2004 As on 31.3.2006

Public

Sector

Private

SectorTotal Public Sector Private Sector Total

1641.5 446.5 2088.0 1636.4 449.6 2086.0

Distribution of Population Total Number of Workers Total Number of Workers


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by Workers & Non

Workers in India

2001(Census)

Total Males Females Total Males Females

53983824 40981558 13002266 112214097 43811658 65630286

Distribution of

Households by Type of

Census Houses Occupied

in India 2001 (Census)

Total no of

Households Type of Census Houses

25760601

PermanentSemi-

PermanentTemporary Unclassifiable

13752000 6600491

Total

5406292

Serviceable Nonserviceable

1818

4351684 1054608

Percentage of Households

Having Electricity in India

2001 (Census)

2001

RuralUrban Total

19.84 79.92 31.90

(Source: Based on Census of India, 2001 and analyzed on the basis of field survey)


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4.4 Research Methodology

The theory of sampling has its origin way back in the history of mankind. People took

a portion of a totality, generally called the statistical population, to decide about its

nature. The selected part is generally referred to as a sample. The proper scientific

tools used to obtain a sample from a population are referred to as the sampling

techniques and a specific procedure of selecting a sample is called sampling design.

The collection of a sampling design, selection procedure and the estimation procedure

is referred as the sampling strategy.

4.4.1Stages in Selection of A Sampling

Definite stages of selecting sampling understood by the help of the following diagram

Stages in selection of a sample ,

Define the target population

Select a sampling frame

Determine if probability or non-probability sampling will be chooses

Plan procedures for selecting sampling units

Determine sampling size

Select actual sampling Units

Conduct field work

Name, Number of Village & House Holds


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It has always been quite a difficult work for any researcher to cover the whole

population for the purpose of study hence sample in a capsule from a given population

is used. Thus a sample is a small portion of a specific universe. For selecting

appropriate sample random sampling technique is adopted in conducting present

investigation. In this sampling technique, every individual has an equal probability of

being selected. The total urban area of Gautama Buddha Nagar consists of 300 towns

in which there are 3 Tehsils and 4 blocks. 10% towns out of 15 towns were taken as

sample for this research. The 10% persons were randomly selected from each of the

15 towns. The people who were selected for the sample were divided into six groups

and these groups were again divided into sub groups.

The groups were categorized into 10 sub- groups

1. Name

2. Age

3. Sex

4. Marital Status

5. Education qualification

6. Occupation

7. Income per month

8. Total members in family

9. Status of Property

10. Affected by SEZ Policy

Further all groups were divided into two sub groups. The first group was not divided

into any sub groups after that all are divided in two sub groups. Second groups were

divided into age (a) o-30 year and above 30 year. The fourth groups divided in to

married and unmarried sub groups. The fifth groups were divided into literate and

illiterate sub groups. The sixth were divided into two occupations, agricultural and

others groups. The seventh income group was divided also two sub groups below

Rs70000 p.m. income group and above Rs7000 income p.m. The eighths group i.e.


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total member in the family group was divided into two sub groups. The ninth group

was divided into status of property (a) land owner (b) Lessee. The last one was also

divided into two sub groups affected by SEZ Policy directly and indirectly.

District G.B.Nagar

Tehsils

G.B.Nagar Jewar Dadri

Dankour Jewar Bisarkh

Total no of

villages=149

Total no of villages=104 Total no of

villages=97

For survey 10%

village=15

For survey 10% village=10 For survey 10%

village=10


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4.3: Name of Noida’s villages Total No of Households 10% from each village

S.No Name of Village Total House holds Surveyed Households

(10%)

01 Yakubpur 141 14

02 Shahberi 99 10

03 Akalpur Jagir 1060 106

04 Sector 80 149 15

05 Bhagel 737 73

06 Nagla Charanda 193 19

07 Tatarpur 208 20

08 Bhatta Parsoul 250 25

09 Dhoom Khara 198 20

10 Surajpur 323 32

4.4.2 Sample and Data Collection

Noida is an area under the management of the New Okhla Industrial Development

Authority (also called Noida). Noida came into administrative existence on 17 April

1976 and celebrates 17 April as "Noida Day"18. Abhishek Sinha set it up as a part of

an urbanization thrust during the controversial Emergency period. The city was

created under the UP Industrial Area Development Act. Noida is located in Gautama

Buddha Nagar (G.B.Nagar) district of Uttar Pradesh state. G.B Nagar district with

geographical area of 1442 Sq. Km with headquarters at industrial city of Greater has

three Tehsils and four developmental blocks viz. Bisarkh, Dadri, and Dankaur &

Jewar19. The total population of the district was 1105292 and average population

density was 766 persons per sq. km.20 The district's administrative headquarters are in

the nearby town of Surajpur. However, the district's highest government official, the

District Magistrate (DM), resides in Noida. The city is a part of the Noida-Dadri

Vidhan Sabha constituency and G.B Nagar Lok Sabha constituency. Noida stands at

17th place when it comes to cleanliness in India leaving far behind Gurgaon and

Faridabad NCR who stand at 87th and 237 respectively.21

18 District Statistical Handbook,201019 Census 200120 Chief Treasury officer, Gautama Buddha Nagar21 E-paper. amarujala. http://epaper.amarujala.com


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4.5 Socio-Economic Impact Analysis

The socio economic indicators are expected to allow a systemic approach to the

knowledge of the socio-economic reality of the society and changes in the resources.

Economic indicators are neither easy nor immediate. It often happens that access to

the data necessary for constructing the indicators is very difficult. The methods used

by researchers for data collection never coincide with each other, and some data have

never been compiled.

As GB Nagar communities continue to grow, local officials and community members

are constantly challenged by the need to balance fiscal, social, economic, and

environmental goals. One aspect of this challenge is deciding how much and what

types of new development the community can accommodate without compromising

the day-to-day quality of life for residents. The socio-economic impact assessment is

designed to assist communities in making decisions that promote long-term sustain-

ability, including economic prosperity, a healthy community, and social well-

being. The educational status of the district represents process of empowerment and

tabulated under Table-3.4.

Table-4.4: Educational Institutions Position of the Study Area, Gautama BuddhaNagar

NAME

TOTAL

NO. OF

SCHOOLS

BLOCKSJR.BASIC

SCHOOL

SR.BASIC

SCHOOL

HIGER

SEC.SCHOOL

DEGREE

COLLEGE

JR.BASICSCHOOL

636 Dankor 174 35 15 1

SR.BASICSCHOOL

127 Jewar 122 40 14 0

HIGERSEC.SCHOOL

90 Bisrakh 187 97 19 0

DEGREECOLLEGE

4 Dadri 288 112 17 1

(Source: A Study of Gautama Buddha Nagar, India)


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Figur-4.7: Position of Educational Institution in the Area

The assessment socio-economic impacts require both quantitative and qualitative

measurements of the impact of a proposed SEZ.22 For example, a proposed NSEZ

may increase employment in the community and create demand for more affordable

housing. Both effects are easily quantifiable. Also of importance, however, are the

perceptions of community members about whether the proposed development is

consistent with a commitment to preserving the rural character of the community. The

assessment of community perceptions about development requires the use of land

methods capable of revealing often complex and unpredictable community values.23

This provides an overview of socio-economic impact assessment, including what it is,

why it is important and guidance on how to conduct a socio-economic impact

assessment. During the pre-independence period, the concern for environmental

problems in India was least because of both small size of population and absence of

industrialization.24 The concern for waste management through reuse and recycling

drew attention with accelerating industrialization.

22 Heckman, James.J. (1979) “Sample Selection as a Specification Error” Econométrica 47, 153-161.23 Appu, P.S.(1997) Land Reforms in India: A Survey of Policy, Legislation and Implementation

,New Delhi24 Ring.I.( 1997) Evolutionary Strategies In Environmental Policy, Ecol Econ 1997;23(3)


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Table-4.5: Educational Position of the Study Area, Gautama Buddha Nagar

The Figure-4.5 above indicates ten village’s educational contributions, development of Children and

empowerment.

S.No. VILLAGESSTRONGLY

AGREE

STRONGLY

AGREE

STRONGLY

AGREE

1 Yakubpur 3 4

2 Shahberi 2

3 Akalpur jagir 4 5 3

4 Sector 80 8 2 5

5 Bhagel 26 10 10

6Nagla

Charanda1 8 11

7 Tatarpur 3 1

8 Bhatta Parsoul 1 3 8

9 Dhoom khara 6 2

10 Surajpur 6 3 7

11 Average 7.6667 5.777 5.3

12Standard

Division9.395 2.72845 3.5292


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Figure-4.8: Educational Enhancement by SEZ in Ten Villages

The graphs indicate the village of Bhagel’s high response. The Households says that

SEZ has improved the economic condition of villagers and made a nice contribution

in education and second highest positive answer in the village of Bhatta Parsoul that is

8%.

4.6 SEZ and Land Acquisition

The MoCI has discussed that the SEZs will be coming only on barren lands and single

crop lands. But in practice it has not been so. The policy of SEZ has already acquired

the stigma of land grabbing policy.25 People have already expressed their negative

views over SEZs saying destroying valuable agricultural plots seems especially ill-

conceived, as farmers are not likely to make an easy transition to the jobs on offer at

these SEZs. For getting industrial development sacrifice of agricultural land is non-

permissible.

25. Editor. “ Debate Over SEZ is Good, Better would be an Informed Debate” Express IndiaSeptember 28, 2006.

34

0

5

10

15

20

25

30

STRONGLY AGREE


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8%.








permissible.


4

8

26

1 1

5

2

108

3 32

35

1011

1

8

STRONGLY AGREE STRONGLY AGREE STRONGLY AGREE


170





8%.








permissible.


66

3

8

2

7

STRONGLY AGREE


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Table-4.6: Land Used distribution 2011(approved Plan) and 2021 [hactare]


The SEZ Act lies down that it is to be set up on a minimum 1,000 ha of land or

Traditional lands under multiple uses.26 These lands mostly are agro-biodiversity

farmlands, mangrove belts, wetland and even forest patches. Each of these has a

critical ecological role in maintaining healthy environment besides being having an

inherent link with people’s livelihoods and subsistence.27 Thus, when these lands

metamorphose in to SEZs, the ecological functions and human survival are bound to

be adversely affected.

The Supreme Court has elaborated on the right to adequate housing, shelter and

livelihood as part of the all-encompassing right to life under Article 2128 in the

landmark case of Olga Tellis v. Bombay Municipal Corporation.29

That is why the local people are resisting projects in other parts of country like

Nandigram and Singur in West Bengal, Alibha in Maharashtra, Bhatta Parsol and

Greater Noida in Uttar Pradesh on the grounds of the loss of productive lands in

26 Okushima. Shinichiro & Uchimura. Hiroko, “Economic Reforms and Income Inequality in Urba”China Discussion paper No. 25 in Institute of development Economics (2005).

27 Herbert Jauch, Export Processing Zones and the Quest for Sustainable Development: A SouthAfrican Perspective,14 Environment & Urbanization 108, April 2002

28 Article 14 0f the Indian Constitution read as: Protection of life and personal liberty-No person shallbe deprived of his life or personal liberty except according to procedure established by law.

29 AIR,1985


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hinterland and costal area and on ecological degradation. The large-scale land

acquisitions by the developers lead to displacement of farmers and have serious

implications for food security.30 The developer’s for real estate is directed to take

advantage to tax concessions which ultimately result in to revenue loss. The change in

land acquisition leads to uneven growth aggravating regional inequalities and

environmental sustainability.31

A large majority of those who are displaced due to land acquisition are unable to find

equivalent livelihood or other means of survival. Families are divided and large

numbers are reduced to penury.

Table-4.7: SEZs Benefited and Raised Socio-Economic Status of Local Peoples.

Yakubpur Shahberi Sector-80 Bhagel Nagla Charanda

Strongly Disagree 14.29 20 42.11 13.21

Disagree 21.43 13.33 15.79 23.58

Neither agree nor

Disagree28.57 40 13.33 15.79 33.02

Agree 35.71 30 13.33 21.05 11.32

Strongly agree 0 30 33.33 5.26 18.87

In the above Table-4.7: it indicates the five villages’ socio-economic status. Briefly these villages show

that if the SEZ raised the socio- economic status asked by researcher with the help of questionnaire.

30 Bajaj. Rahul, “SEZ are Turning into Land Scam” The Times of India, 4 May2007.31“Can India Revitalize its Special Economic Zones to Rival Those in China” Asia Pacific Bulletin

February. 2006.


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Figure-4.9: Life Style of Local People

The above graphical representation highlights the percentage in negative view of the

Yakubpur, Shahberi, sector-80, Bhagel and Nagla Charanda village. The 42.11% of

residents of Nagla Charanda says that SEZ has not raised the socio-economic status of

the village. Only 5.6% were found to be in favour. The Shahberi villagers were

neither agree nor disagree against the response of Chhaprula. The other resident

members of the left villages were having a neutralized response against these couple

of villages.

4.6.1 Problem of Unemployment

The study area has been suffering from several problem of unemployment. The

policies of economic liberalization were supposed to create good job opportunities for

the local job seekers. In this area, growth rate of employment is lower than that GDP.

Local experts describe this phenomenon as “jobless growth”.

0

5

10

15

20

25

30

35

40

45

Yakubpur Shahberi Sector-80 Bhagel NaglaCharanda

Strongly Disagree

Disagree

Neither agree nor Disagree

Agree

Strongly agree


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Table-4.8: Employment Statistics in Four Selected Villages.

Have you main sources of income from SEZ

Village Yakubpur Shabari Akalpur Sector 80 Bhagel

Strongly Disagree 7.142857 0 10.53 28.30

Disagree 21.42857 50 20 21.05 36.79

Neither agree nor

Disagree7.142857 30 20 21.05 5.66

Agree 28.57143 20 33.33 26.32 16.98

Strongly agree 35.71429 20 26.67 21.05 12.26

Under the Directive Principle of State Policy enshrined in the Indian Constitution, the

subject of employment generation falls in the State list. State governments have direct

responsibility for providing jobs to the job seeking population. In case of SEZ it might

not be a good opportunity for the local people as the below graph shows its direction.

Significantly, the respondent of village of Shahberi disagree that SEZ are the main

source of employment.


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Figure-4.10: Employment Statistics in Four Selected Villages.

A comparison of the figure above shows that current numbers of both villages. The

50% respondent of Shahberi village disagreed on the question of main source from

SEZ, but Yakubpur 35.71% people satisfied from the SEZ as a main source.

4.6.2 Change in Work Force

An attempt has been made in this section to examine the trends in unemployment

based on survey estimates. Data on main source of income by SEZ, enhancement of

livelihood, providing employment with the villages having sizeable employment in

SEZ are collected by the researcher reveals the following facts of Yakubpur


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Table-4.9: Socio-Economic Impact of SEZ

The establishment ofSEZ has obstructed

on livelihood &agricultural land

(Shabari)

SEZ has providedemployment in

place ofacquisition of

land. (Akalpur)

villagers hassizably employedin SEZ (Bhagel)

Strongly

Disagree10 0 10.53

Disagree 20 33.33 21.05

Neither agree

nor Disagree10 20 21.05

Agree 50 20 26.32

Strongly agree 30 26.67 21.05

Figure-4.11: Main Source of Income, Obstructed On Livelihood, SEZ Has

Provided Employment and Villagers Has Sizably Employed In SEZ

The above circle graph show the disagree response of the Akalpur village that SEZ

not provide jobs for those land acquired for establishment.


177

4.7 Regional Sustainable Development

The protection of the environment and public health interests, as well as to stimulate

sound environmental behavior, balancing the socio-economic, environment, and

cultural systems in particular, is important when considering development

possibilities for future generations and strongly relates to the concept of “sustainable

development”.32

Table-4.10: District, Tehsil and Blocks of Gautama Buddha Nagar (GB Nagar)

Tahsils Blocks

Annual

Ground

Water

Recharge

(InHam)

Net Annual

Groundwater

Availability

(In Ham)

Existing

Gross

Groundwater

(InHam)

Ground

Water

Availability

For

Irrigation

(In Ham

State of

Ground

Water

Storage

( %)

Block

GB

NagarDankaur 17673.36 16789.69 9762.34 933.23

58.14Safe

Jewar Jewar 15509.17 14733.71 9248.54 5424.44 62.77 Safe

DadriBisrakh 9528.38 9051.96 6756.76 2079.39 74.64 Safe

Dadri 20355.50 19337.73 5024.83 14155.37 25.98 Safe

In the process of agricultural production, extensive use of resources and generation of

pollution, the negative impacts on the environment,33 and agricultural production

systems34 puts a question mark on SEZ. The problem of adverse use effects is often

not incorporated in the decision process and leads to imbalances between economic

and environmental systems. These imbalances can be intervened by the economic

system, regulations of ecological laws, rehabilitation of ground water in the economic

decision-making process. These interventions may take place at different spatial

scales at local and regional level seems of utmost necessity. The sustainability means

32 K R Gupta (Ed), (2008) SEZ issues, laws and procedures Vol .I, Atlantic Publisher& Distributor,2008, New Delhi.

33 S.Chatterjee, “The Economics of Special Economic Zones in India: Ground Realities and KeyConsiderations, Department of Business Economics” SSRN, Jan. 11, 2008.

34 “Environmental Matters” World Bank Report,1997


178

that the evolution and development of the future should be based on continuing and

recommendable processes and not on the exploitation and the exhaustion of the

principal or the capital of the living resource base.35 The population growth is a key

factor to be considered in the implementation of sustainable development, which can

only be pursued if population size and growth are in harmony with the changing

productive potential of the ecosystem.

The Table-4.11 indicates the sustainability in the area. There is air emission in the

local society. The villager suffers from the lack of fresh air and abundance of polluted

air.

The table -4.11: Depicts Four Villages View on the Increased Traffic in the Local

Area Due To the SEZ Activities.

SEZ has increased traffic in the local area and resulted in air emissions.

Option of Questions Yakubpur Shabari Akalpur Sector 80

Strongly Disagree 14.28 0 10 26.67

Disagree 21.428 28.57 20 20

Neither agree nor

disagree21.42 28.57 20 6.67

Agree 14.28 7.14 10 20

Strongly agree 28.57 35.71 40 26.67

The table 4.12 the environmental degradation from the local traffic, local people’s

awareness of environment and represents the percentage of the responses of the

selected Households

35 Development (UNCED, 1992) and the resulting Agenda 21


179

Figure-4.12: Air Emission in the Area

Source: Survey conducted by the researcher)

.Figure-4.13: Air Emission Near Four Villages

14.28

35.71

40

26.67

21.428

28.5730

2021.42

28.57

20

26.67

14.28

7.1410

20

0

5

10

15

20

25

30

35

40

45

1 2 3 4

Air Emission in Area

Village 1

Strongly Disagree

Disagree

Neither agree nor Disagree

Agree

Strongly agree


180

The above graph shows the air emission percentage in the research area.

The goal of sustainable development protects biological productivity and maintenance

of genetic diversity. From the economic point of view, the satisfaction of the basic

needs such as poverty, equity enhancement and utility services should be promoted.

The social system which ensures cultural diversity, institutional sustainability, social

justice, and participation is also encompassed in sustainability paradigm.

4.7.1: Social Security

Liberalizing of labour laws under SEZ Act would adversely impact the social security

and livelihoods of this large labour force. This would only worsen the condition of

labour in our country. SEZs are killing one type of livelihood for another type of

livelihood. It is turning the farmland into labourers in a SEZ.

Table-4.12: Socio-Environment Position of the Area

Main sourceof Income

Decrease inLive stocks

Wildlifedecreased

Strongly Disagree 7.142857 28.57143 35.71429Disagree 21.42857 35.71429 35.71429

Neither agree nor Disagree 28.57143 14.28571 28.57143

Agree 7.142857 28.57143Strongly agree 35.71429

Figure-4.14: Socio-Environment Satisfaction of the Local Inhabitant of the StudyArea

0

5

10

15

20

25

30

35

40

StronglyDisagree

Disagree Neitheragree norDisagree

Agree Stronglyagree

Main source of Income

Decrease in Live stocks

Wildlife decresed


181

The above graph depicts the socio-environment aspect of the locality of the selected

villages. The ration of income from SEZ increased, but environmental responses

strongly dissatisfied.

4.7.2 Resource Utilization

The sustainability also entails resource utilization in proper form. The experiences

illustrated that the benefits accruing from SEZs are often short-lived on free market

and liberalization policies as well privatization. Almost all India’s states have offered

lucrative packages to investors for FDI in SEZs. The investors are also allowed to

repatriate their profit freely. The experiences show that all these relaxations lead to

loss of revenues for these states and do not contribute to the long-term economic

development and self-reliance of the nation. A report by the United Nations

Conference on Trade and Development (UNCTAD) confirmed that the replacement

of state interventionist policies by market-led development policies have failed to

yield all-round development for poor countries.36 Policies based on downsizing the

public sector often undermined growth and hampered technological progress.37

SEZs baffle the country’s statistic and metric by short-term spurts but just like

administering steroids it kills slowly the country in any middle to long-term tenure. It

is a capital de-formation on a longer tenure and seems a bad proposition!

At present, the deterioration of both the natural resources and environment generate

environmental pressure, overexploitation of fertile agricultural land,38 exhaustion of

renewable resources such as water, air and forests, and degradation of basic natural

resources. The dominant land utilization systems in India which limit agricultural

productivity and sustainability, calls for policy and institutional reforms overcome

present problems.39

36 S. Acharya, “Essays on Macroeconomic Policy and Growth in India”, Oxford University Press,India,(2006)

37 Bose 200638 E.B. Barbier, “The Concept of Economic Development”Environmental Conservation,

14(2)101(1987)39 G. H. Brundtland, Our Common Future, the World Commission on Environment and

Development, Oxford University Press, Oxford, 383 (1987)


182

Table-4.13: Land Use Externality: Type and Possible Measures

Land Use Externalities

Type Field Possible Measures

Economic Costs

Urban pattern anddensity

Average commuting distance

Density of population

Decrease in agricultural production

EnergyGasoline use per capita

Energy per passenger km

InfrastructureRoad density

Public utilities provision costs

Social CostsCommunitydisruption

Environmental externalities (e.g. noise)

Accessibility to facilities

Environmental CostsDamage to theecosystem

Land taken to the natural environment

Source: H.C. Honnappa & K.G. Ramakrishna, Southern Economist, (2009).

It is a well established fact that to determine the optimum size of farmland parcels

certain technical and economic criteria must be taken into account so that utilization

of modern farm machinery may be possible. The central Reserve Bank of India (RBI)

and even the International Monetary Fund (IMF) warned the Indian government that

tax benefits accorded to industries operating in SEZs would lead to massive resources

crunch and degradation. Thus, if the numbers of SEZs continue to grow, the nation-

state will be losing more potential income and many industries would shift from non-

SEZs to SEZs in order to avoid paying taxes.40 In the neo-liberalism regime, the soft

targets of these reductions are often the social sectors. This will result in the

worsening of the economic conditions of the poor, and would weaken the economic

future of the country in the long-run. In Bhatta Parsol the farmers were protesting on

the land acquisition incident which is living example of politics, law and order in the

U.P. To silence the agitation the UPA government promised to introduce a new Land

acquisition Bill or bring amendment in the Act having provisions for better

compensation and rehabilitation measures.

40 Supra note,33


183

4.7.3 Bhatta and Parsoul Villages

The researcher survey Bhatta & Parsoul villages in Greater Noida on May 19,2011 to

study the unfortunate turn of events on May 7 that led to the deaths of two farmers

(one from each village) and 2 constables of the PAC.

The actual problem of the land acquired by the Mayawati Government lies in the fact

that the land has been acquired at much lower rates and the farmers have not been

properly compensated. This is due to the fact of not having a proper Land acquisition

Act in the constitution.

Main Problem: The land acquired was at very low rates and sold to the government.

The government then sold these acquired land to corporate for development projects

like Yamuna Expressway. These were given at very high rates as compared to the

farmer’s rate. This further led to the corporate houses using these plots of land and

selling them at even higher prices. This entire problem was just because the farmer’s

been not given the market price of the land and had not been properly compensated.

This resulted in the farmer’s agitation and various protests spread all over the region

near Noida and Greater Noida.

Figure-4.15: Side Map & Photos of Disputed Place of Bhatta Parsoul Village

Researcher met several victims of violence, interacted with the men and women and

sees the loss of property of the area.


184

Findings are as follows:

Agitation Against Inadequate Compensation: The farmers of these have been on a

prolonged agitation demanding better compensation for their land. The agitators

include both those whose lands have been acquired as well as those whose lands are

set to be acquired in the coming days. While some farmers have received part or full

payment for their land, researcher met no one who was satisfied with the

compensation. Most wanted an arrangement wherein they could have a stake in the

escalating land value. The farmers were demanding a transparent declaration of land

use by the government since many felt betrayed that the land that was ostensibly

acquired for industrial purposes was now in the hands of real estate developers.

Plight of Families of Killed Farmers: Researcher met Shmt. Omwati, widow of Shri

Rajpal, from Bhatta village, who was killed on the 7th. He is survived by three school

going sons and a married daughter. The family is living in debt incurred during the

daughter’s marriage. Shmt. Omwati complained that the administration did not allow

the family to bring back his body to the village and her son was compelled to perform

the last rites away from his family and home. Shri. Rajbeer from Parsoul village was

also killed on the same day in Police firing but we could not reach his family.

Villagers Shot or Injured: We met Shmt. Raghubir Udayveer whose son Daljeet is

injured and hospitalized. Senior citizen Narender Singh was shot in his right leg on

the 7th but was finding himself at a loss to return to the hospital for treatment in the

absence of male members in the village to escort him. 85 years old Tej Singh Sarma

was beaten with rifle butts, his 15 year old grandson was arrested and beaten up in

police custody for 3 days. School teacher Navratan Sharma’s leg was fractured. Brick

worker Prempal, son of Lakkhi Chandan suffered a broken shoulder but no medical

aid has reached him. School teacher Navratan Sharma’s leg was fractured. The son

and daughter-in-law of Shmt. Nirmala were hospitalized with bullet injuries. 70 years

old Kela Devi’s grandson Kapil was in hospital with bullet injuries. Bhirender Singh,

son of Ikram Singh suffered multiple fractures in his hands and legs. Both the legs and

one hand of schoolteacher Bijender were broken. Suresh, a medical shop owner,

suffered from broken fingers and rib. Praveen was injured on his head and suffered a

cut wound in his stomach.


185

Damage to Pproperty: The Police inevitably damaged all modes of travel like

motorcycles and cars during these raids. Even tractors and wooden carts were not

spared. We found broken doors and broken household goods in many homes. The

shop of Vinod Sharma was looted and his car damaged. Money was snatched from

Shmt. Kanta Devi. Ranbeera and her mentally challenged son were beaten and the car

and motorcycle in their home damaged. The household furniture and small shop of 55

years old widow Shmt. Munni was damaged. The hay stacks in Mukut Lal’s house

were set on fire. The car, tractor and water pump of Shmt. Durga Sharma was

damaged. 20 sacks of wheat were also destroyed. 2 motorcycles, 1 TV, 1 fridge, 1

cooler, 1 inverter, 1 Dish, and furniture were damaged in the home of Shmt.

Dayawati. The motorcycle in the house of Shmt. Anita Choudhary was damaged. 2

motorcycles in the house of Shri Bhopal were damaged and an attempt was made to

set them on fire. The motorcycle in the house of deceased farmer Late Shri Rajpal was

damaged.

Thus, adequate compensation must be paid to the villagers for loss of life and

property. While the law must take its own course in the case of all killed, including

the 2 PAC constables, the effort to take revenge upon all villagers must be discarded

without delay. The investigation must keep in view the entire context of

administrative high handedness.

4.7.4 Food Security of Area

The food gap of the poor is more a question of distribution and is not insurmountable.

The food inflation would affect the nutritional well-being of the population. Both

cereal price and non-food cereal price are negatively associated with the consumption

of food and calories. It is needless to say that from nutritional welfare perspective,

price stability of non-cereal food is as important as that of cereals. With economic

growth and urbanization, the supply source of calories is likely to diversify and non-

cereal food may emerge as a major source of supply.41 India’s record in reducing

malnutrition is disappointing. Nearly 40% of the malnourished children of the world

are in India, although India’s share in the world population is less than 20%.

41 Hiremath B. N., K. V. Raju & Anil Patel (2004). "Farmers' Technology Adoption, FarmManagement and Livelihood System Gujarat". In “In Search of Sustainable Livelihoods:Managing Resources and Change”, Ruedi Baumgartnet & Ruedi Hogger (Editors), pp.94-125,Sage Publications, New Delhi. Hogger, Ruedi (2004)


186

Table-4.14: Food Security Status of Gautama Buddha Nagar

Sub District Dadri

Gautama

Buddha

Nagar

JewarArea

(Sq.Km)14,442.00

Population 692259 259445 250326 Population 1,202,030

UrbanPop.(%) 53.9 7.5 22.7Number of

Tahsils03

Litracy

Rates.(%)73.9 63.2 59.7

Number of

Vikas Khand04

Work

Participation

(%)

31.1 29.8 28.3Number of

Towns09

Main workers

(%)27.6 23.7 22.5

Number of

Villages422

Food Grains Thousand Metric ton 355

Sugar Cane Thousand Metric ton 253

Tilhan Thousand Metric ton 2

Potato Thousand Metric ton 7

(Source: District Statistical Handbook, 2000-01, http://gbnagar.nic.in)

Along with improving their diet, it is necessary to improve the health and educational

status of mothers. India has put in place a number of nutrition intervention

programmes to reduce the incidence of malnutrition but their impact so far seems to

be marginal.42 They need to be scaled up and their governance requires substantial

improvement. What is more, it needs to be recognized that for eradication of

malnutrition one has to go beyond meeting the calorie gap and ensure the provision of

safe drinking water,43 health care facilities and proper environmental hygiene.

42 Region: A Study of NOIDA City, India43 Majumdar, I., (2001). ‘SEZs and Their Workers in India: A Study of the Noida Processing Zone’,

in A.S. Oberoi, A. Sivananthiran and C.S.Venkata Ratnam, et al. (ed.) LaborIssues in ExportProcessing Zones : Role of Social Dialogue, South Asian Multidisciplinary Team and IndianIndustrial Relations Association, ILO, New Delhi.


187

Table-4.15: Food Security is Under Danger Circumstances Due to Establishment

of SEZ

Village name Yakubpur Nagla Charanda Sector-80

Strongly Disagree 21.42857 15.06849 26.31579

Disagree 0 16.43836 10.52632

Neither agree nor Disagree 42.85714 6.849315 10.52632

Agree 14.28571 27.39726 10.52632

Strongly agree 21.42857 34.24658 42.10526

Figure-4.16: Food Security Under Danger Position

The above representation shows area’s reflection on the food security concept. Most

of the people responses for neutral, second highest strongly satisfied that food security

in danger. Industrialization increased the goods and luxurious article and decrees the

food and eatable items.

4.8: Trade and Industry in NSEZ

The national capital of India i.e. Delhi being the nerve center of the country has

emerged as an important international business center. It has the largest cluster of SSI

units (.126 million units) and is a major distributive center for the trade and commerce

for the entire northern region. The place is home to large number of centers of

0

5

10

15

20

25

30

35

40

45

StronglyDisagree

Disagree Neitheragree norDisagree

Agree Stronglyagree

Yakubpur

Nagla Charanda

Sector 80


188

excellence in science and technology and is an important hub for national telecom

network. It is the most well connected city in the country through surface and air. It is

the first choice for setting up of representative offices of international and national

companies and corporate houses seeking foothold in the country. Delhi has more than

35% of catchment population and 53% of its NDP. The 100 kms radius of U.P sub

region has more than 320 large scale industries and about 9500 SSI units employing

0.44 million workers. These industries are mainly concentrated in Noida, Ghaziabad,

Greater Noida and Sikandrabad towns etc. Besides a number of industrial areas and

activities have been taken up for dev. by the UPSIDC like Tronica city, Integrated

agro parks, apparels parks Massori- Gulaothi and Khurja growth centers, export

promotion industrial park at Surajpur and development of 4 industrial corridors within

the catchments of 300 kms of the SEZ Noida.

The state of Uttar Pradesh is the home of not only the traditional industries for which

India is known like brass ware, carpets, perfumes, silk, handlooms and handicraft but

also the modern industries like electronics, automobiles etc. In software UP is the

second largest exporter in the country after Bangalore, exporting software worth 45

billion through 670 companies in 1999-2000. Noida area has developed as a hub of

one activity in the country accounting for bulk of software export from UP. The state

currently has 1942 medium and large size units with investment of around Rs 282

billion. The sub region is one of the most fertile and productive agriculture region in

the whole of UP and has vast potential for food processing industry product exports.

The entire belt near NSEZ is considered to be highly export intensive. The total

exports from the 100 kms radius is estimated close to Rs 153 billion (9% of the

country's export) and approx. Rs 235 billion (14.5% of the country's exports within

300 kms radius). Delhi itself is a major contributor accounting for 59% of the total

exports followed by UP sub region accounting for 29% of the total exports. The main

sectors of the exports are handicraft, carpets, leather, brass ware, Potteries,

agricultural products, ready-made garments, electronic goods, engineering, goods

jewellery, diamonds, drugs/ pharmaceuticals, instruments, transportation equipment,

software and handloom products. More than 40% of the products exported by value in

the region are of air worthy. Imports also constitute a sizable volume. It is estimated


189

that almost similar value products are imported. The main airworthy imports are gold

and silver, electronic goods, professional instruments and transport equipment etc.44

The region is well endowed in all social infrastructures like education, medical, water

supply, Post and Telegraph, communication and road connectivity etc. The region

receives power from the integrated grid of UP power systems and the northern

regional grid. The current power supply is much less than the demand in the region.

Towns and industrial areas of Ghaziabad and Noida have been getting preferential

treatment in respect of power supply.

4.9 Conclusion and Recommendations

In India, agriculture is the single largest source of employment to improve the

standard of living of the poor and to ensure all-round development. The states should

adopt policies which would strengthen the basis of agriculture and would reduce the

inherent structural inequality in agrarian society. The adoption of an apparently easy

path to economic growth, i.e. replacing agriculture with SEZs, is a path of self-

destruction which not only will weaken the agriculture but will also endanger the

sovereignty of the nation in the long run. At Dadri in UP, the Police resorted to firing

and lathi charge to remove anti-SEZ protestors from the land acquired by REGL.

The poor in India has begun to realize that rejecting SEZ will require a systematic

structural change and introduction of true democratic values and principles in

governance. The aspirations of the poor have been expressed in an alternative

development discourse, i.e. food sovereignty. The concept of food security rejects the

trickle-down argument infavour of SEZ-oriented development that is biased and

unjust. The principles of the right to food and the right to feed oneself, i.e. access to

and control over productive resources like land, water, forest, common property

resources, etc. Gender equity, sustainability and cultural diversity are key components

of this model. This concept rejects the attitude of ‘one size fits all’ as promoted by

neoliberalism and respects the diversity and the traditional wisdom of peasant

communities in India. But the SEZ Act provides single window clearance system,

especially violation of the Constitution and law of land. It is the duty of a state, to

ensure that human rights standards are implemented in SEZs. If the government fails,

44 SEZ Act, 2005; Ministry of Law and Justice, New Delhi, June 23, 2005.


190

then the protection of human rights obligations also lie on all other countries to ensure

that their policies do not contribute to violations in other’s land. Thus against the

viability of establishing SEZs in terms of trade, revenue lost and unemployment, the

main issue of displacement of rural population is one of the major concerns in the

recent past. Large tracts of prime agricultural land measuring thousands of acres are

acquired from farmers for developing SEZs. These acquisitions have immense

implications on environment and natural resources of India, and rising unemployment

in rural areas and displaced livelihoods. There is need to have critical look on socio-

economic impacts of SEZ in the interest of sustainability and resource utilization in

Gautama Buddha Nagar.

Recommendations

The SEZ and district industrial area should be subjected to simple labour law

outlining social security payments with appropriate mechanism for compensation

payments in case of retrenchment/layoff.

Employments guarantee Schemes should be implemented for upliftment of

poverty line families. The government employment schemes should have the

objective of increasing the purchasing power of masses.

The government should reform the educational system also. Students must be

trained in such way that they should not wait for government to provide

employment. We need to realize that there must be active involvement of SEZ in

the task of curriculum design and management of these programmes. We need lot

of things to learn from China, where SEZ participates actively in apprentice

training programmes.

SEZ will not create employment for local population but will lead to distress

migration of locals since the jobs created will need education and skill levels

unreachable for most of the people.

The SEZ policy is part of a wider foreign trade strategy designed to encourage local

industries and create jobs. Both goals will find many supporters in India’s many

impoverished and under employment communities. SEZs have helped people in rural


191

areas in increasing their income. They have generated a considerable investment now.

More than 32000 people are employed in the SEZ on a regular wages so far.45

Giving huge chunks of cultivable land for SEZs and other non agriculture projects

will have huge impact on the Nation’s food security. There should be a complete ban

on the use of irrigated double cropped for setting up SEZs. There were several crucial

factors related to agriculture, compensation, housing, administration, security and

trade that have totally been ignored, thus, the land taken from farmers should be on

lease so that they can continue to retain their ownership and get periodical payments

from developers instead of lump-sum payment.

45 A. Arunachalam. Special Economic Zones and Employment in India, Principles, Problems andprospects (Serial Publications ,New Delhi, 2008)

chapter-iv sez in uttar pradesh: a case study...

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