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)
1
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.
2
National Agriculture Policy 2000
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”
3
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
nonagricultural purposes.
4
Some of States through their
SLUBs have issued instructions
and executive orders regarding
diversion of agricultural land for
non-agricultural purposes.
5
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 nonagricultural purposes and for
programmes like the Special
Economic Zone.
6
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.
7
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.
8
It is in our national interest that
agriculture and industry both
prosper
in
a
mutually
reinforcing manner.
9
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.
10
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.
11
Contd…
Contd…
• 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 nonagricultural 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.
12
Contd…
Contd…
• 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.
13
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.
15
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
16
WHY SPECIAL ECONOMIC
ZONES?
The stated purpose of creating
SPECIAL ECONOMIC ZONEs
across India is “the promotion of
exports”.
17
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.
18
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.
19
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.
20
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.”)
21
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).
22
Contd…
• 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.
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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
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the area will be effected.
Thank you
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