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SEZ: To Be or Not to Be

by Amarendra Kishore

Feb. 2, 2007

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SEZ is a word which is much a fashion these days in economic, political and even social circles. Every business house wants to develop one for them, every state as many of them , and every person dreams of one near him. If this is the case, why our own state government is not trying to have even a single SEZ for them?

If we go by examples of other states, it looks like there is no way to survive in this world of competition without having SEZs. But, is this the case - as we all know our economy has come a long way and we are being recognized as a world economic power without having a single SEZ. Even the way industry is acquiring hundreds of acres of fertile land from the farmers in the name of economic development is very surprising. When 70 percent of our population still depends on land taking away fertile farm-lands this way for SEZ will do no favour but harm to our economy and environment the most. Then does it means, our state government is working in favour of farmers and in the larger interest of the state?

Probably not, SEZ is a good idea as far as it just means providing a common space and administration for industry to flourish in a manner never happened before. But it could be done without taking away in some ethical manner as well, which will be acceptable to everyone. For this, we can go for the bigger version of these SEZs - product SEZ, where a whole region or state will work as SEZ, proving a full setup for growth of one Industry. In these SEZ everybody will be get their share of fruit of development not just few people. Our state need this type product SEZ at most, we can go for agricultural, industrial and service products like - sugar, dairy, textile, tourism, education, medicine. These product SEZ will concentrate on the whole range of activity related to one product, in this way involving people from every walk of life. This concept goes well with PPP - public, private participation - as well. So, the option is very clear for our state government, go for their own way to set up product SEZs, and not the SEZs the whole country is talking about. As we need prosperity of everyone not for a bunch of people.

Hope the government will work on this concept and make our state the front-runner the way it once was.

 

Comments:
SEZ is an extreme concept. It can only be successfully implemented where extreme right or left are ruling such as Gujarat or West Bengal or in states with extreme identity crisis where language can generate more passion than caste. In Bihar it will be difficult to implement. On the contrary Bihar Government should try to declare whole of Bihar as SEZ, yes whole of Bihar should be declared as SEZ and let industry pay the market rate for Land but government should offer better tax rebates than existing extreme model of SEZ. I am very happy that Bihar Government is against the present model of SEZ. Product SEZ is also a very bad idea; in fact SEZ in itself is a bad idea. SEZ discourages budding entrepreneurship because it only helps well established business. Moreover if SEZ is in Darbhanga then who will take care of Jamui and if Darbhanga becomes part of Mithilanchal (New state) then what is left for Bihar? Haven’t we learned from Jharkhand separation that one fine evening Bihar became without even a single factory worth naming. Say no to SEZ or let whole of Bihar be declared as SEZ! Looking at the present situation of complete absence of industrialisation in Bihar, Bihar Government should continue the demand special status for Bihar from Federal Government at Delhi so that there is enough tax rebates for investors to invest in Bihar. Jharkhand division of was a very bad idea and compensation to Bihar is still due. - Shiv Shankar Sharma - Feb. 3, 2007

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