CREDAI National President Lalit Kumar Jain has wondered as to how the integrated industrial township policy will be successful where the SEZ concept to promote industries with a plethora of concessions has failed.
"It is for the centre and state together that facilitated SEZ, to ponder over the failure of SEZ and take corrective measures to ensure that its aims and objectives are met" said Mr. Jain.
He welcomed the Maharashtra Government's endeavour to create employment through the proposed industrial zones, but was apprehensive of its end results.
"It is heartening to note that state government is trying to give some incentives to generate higher employment. The new Industrial policy is welcome in that sense. However the policy on conversion of SEZ seems to be going nowhere. Government needs to understand as to why and how SEZs have failed," he said.
Though there could be many faults at the central government, the State government should on its part try to work out solutions to make SEZ s viable and attractive.
"We have to realize the fact that even the so-called Integrated Industrial Parks will not be successful if SEZ have failed even to take off, despite the concessions granted to them, leave alone achieving desired results," he pointed out.
He lamented that certain politicians have sought to raise a controversy that the SEZ exit policy would unduly benefit developers.
"It is rather surprising that for petty political gains some people lose wisdom. In SEZ regime, industries enjoy benefits of both direct and indirect taxation, apart from provision for 50% non-processing units, all with just one-rupee-surplus-export formula which is not allowed under the integrated industrial township plan. IN such a scenario, why would any developer with any business sense will g in for the township plan," he explained and said: "At best the policy will benefit few influential industrialists."
It is necessary that policy makers understand that every industrial or commercial activity needs to be supported by residential infrastructure either within or near the business activity. Globally accepted ball park ration for Industrial activity- to-residential are: Heavy Industry 1:3, Small and medium scale Industry 1:5 and Information Technology 1:9.
Experience in India so far clearly shows that the industry zones will face the danger of mushrooming growth of slums if adequate shelter is not provided.
Mr Jain pointed out that the solution lies in providing innovative housing solutions like increased FAR or FSI, rather than forcing conversion of agricultural lands for housing as is happening in SEZ exit policy. Most of the SEZ land is agricultural, he said.
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