The need for development, for industrial development along with agricultural growth is necessary for future advance of India.
The issue of industrialisation and acquisition of land for SEZ and non-SEZ industrial project has caused fierce controversy in the country. In certain states the controversy has come to boiling point due to indiscriminate acquisition of land by state governments without formulating any proper rehabilitation policy for affected people.
The situation reached to such a boiling point due to unbridled approval of the SEZs by the Union government and rat race among the states to hand over maximum land to corporate houses without following the rules proper rehabilitation policy for affected people and without being transparent.
The National Council of the CPI totally reject the concept that
establishment of SEZs is the only and necessary way to
industrialisation. Neither it is inevitable. The National Council is of
the firm opinion that the number of SEZs have to be limited to bare
minimum and the SEZ Act need to be amended accordingly. There has to be
a cap on number of SEZ in each state,
The National Executive of our party adopted the following resolution in its September session. The NC endorses this position:
"The National Executive of the CPI expresses its deep concern and voices its opposition to creation of hundreds of SEZs and the large-scale acquisition of agricultural land in the name of 'public interest', that is going on.
By now it is reported that nearly 300 such zones have been approved and already about 1,34,000 hectares of land have been acquired for 67 such SEZs. There are ominous reports that the government has lifted the cap of 300 on creating such SEZs and is going in for unlimited numbers.
Industries within the SEZs will be exempt from all forms of taxes, cess and duties, industry transaction tax on securities and service tax, electricity duty, central tax etc. Income from export will be totally exempted from Income Tax for a period of five years. And for another five years the exemption will be 50%. According to the IMF Chief Economist the loss of revenue to the public exchequer will be of the order of Rs. 1,75,000 crores. This will in turn inevitably lead to cuts in the budgetary provisions, which benefit the poor. This is an incredible example of ensuring super profit for the corporate houses at the cost of public exchequer, the farmers and the poor. And what is amazing is that the Governments are acting as the agents of these corporate houses, in creating them.
The SEZs will also be exempt from al labour laws. The State Government are required to notify the SEZs as public utilities for the purpose of application of the Industrial Disputes Act.
These fenced off "Tax Exempt" and "labour law exempt" enclaves will be "Deemed Foreign Territory" for our own citizenry and only the dictates of the SEZ authority will apply.
A new breed of 'Manasabdars' and 'Zamindars' are being created by government under legalised framework of the SEZ Act and a misinterpretation for the Land Acquisition Act. Everywhere brutal coercion against the poor people and farmers are being resorted to by the state to help the business houses.
The Agricultural land that is being offered is many times more than what is required for the actual undertaking. Thus new real estate owners are coming up who will provide houses and amenities only for the rich and make huge earnings for themselves. This is veritable loot sanctioned by the Government.
The so-called employment generated will be only a fraction of those who are displaced from their livelihood.
The SEZs will also bring about a large-scale imbalance in development of regions.
The CPI therefore demands that there be an immediate halt to this process, that a high level commission be set up for examining the issues involved and for ensuring that the rights and interests of the affected people especially the farmers are protected and that suitable amendments to the Land Acquisition Act be recommended and the whole concept behind the SEZ Act be re-examined."
As the issue of land acquisition is not merely question of compensation to the dispossessed farmers. It involves livelihood for many more people, rural economy, habitation and even cultural identity of villages. Hence any decision on industrial project and land acquisition has to be dealt with caution. The process should be totally transparent and decisions must be taken only after full consultation with the constituent parties of coalition governments and after taking the people into confidence. Without clinching the issues in the co-ordinating mechanisms of the coalition governments no Administrative measures should be initiated for finalising the agreements with corporate houses and for acquiring the land. Simultaneously, it should be our task to protect unity and cohesion of the Left as well as the unity and interests of the toiling people is protected.
The NC of the CPI fully endorses the position taken by the four Left parties on question of land acquisition in their note to the UPA government. The basic component of Left's position are:
1- No transfer of land ownership to private developers. All efforts should be made to locate and identity the barren, fallow and waste land for setting up industries. States should help to develop infrastructure in such areas.
2- Appropriate ceiling on land area under a SEZ developed by private developer and bigger SEZ to be built by the Public Sector. The current pattern of usage of land in SEZ need to be thoroughly reversed to curb the chances of building Mafias and real estate dealers' mischief.
3- Limiting acquisition of agricultural land. Acquisition of Multi croplands should not be indiscriminate and be avoided to extent possible.
4- Framing national rehabilitation policy, amending Land Acquisition Act. SEZ should not be allowed to become foreign land. All laws including labour laws be applicable in such zones.
5- Framing a model compensation and rehabilitation policy that should cover all affected people apart from the land-owning farmers,
6- Before opting for agriculture land for industrialisation all possibilities of recycling land blocked in closed units be explored.
In the garb of industrialisation and economic developments attempts are being made to smuggle in the FDI in the retail sector. The NC of the CPI is totally opposed to FDI in retail sector either directly or through joint venture. It also opposes attempts to monopolise the retail trade by Corporate Houses.
The National Council of the CPI respects the sentiments of the people threatened by eviction from their land for industrialisation and will extend help and support to them where land acquisition is under taken without putting in place satisfactory rehabilitation packages and evolving consensus among the political forces involved.
The National Executive of our party adopted the following resolution in its September session. The NC endorses this position:
"The National Executive of the CPI expresses its deep concern and voices its opposition to creation of hundreds of SEZs and the large-scale acquisition of agricultural land in the name of 'public interest', that is going on.
By now it is reported that nearly 300 such zones have been approved and already about 1,34,000 hectares of land have been acquired for 67 such SEZs. There are ominous reports that the government has lifted the cap of 300 on creating such SEZs and is going in for unlimited numbers.
Industries within the SEZs will be exempt from all forms of taxes, cess and duties, industry transaction tax on securities and service tax, electricity duty, central tax etc. Income from export will be totally exempted from Income Tax for a period of five years. And for another five years the exemption will be 50%. According to the IMF Chief Economist the loss of revenue to the public exchequer will be of the order of Rs. 1,75,000 crores. This will in turn inevitably lead to cuts in the budgetary provisions, which benefit the poor. This is an incredible example of ensuring super profit for the corporate houses at the cost of public exchequer, the farmers and the poor. And what is amazing is that the Governments are acting as the agents of these corporate houses, in creating them.
The SEZs will also be exempt from al labour laws. The State Government are required to notify the SEZs as public utilities for the purpose of application of the Industrial Disputes Act.
These fenced off "Tax Exempt" and "labour law exempt" enclaves will be "Deemed Foreign Territory" for our own citizenry and only the dictates of the SEZ authority will apply.
A new breed of 'Manasabdars' and 'Zamindars' are being created by government under legalised framework of the SEZ Act and a misinterpretation for the Land Acquisition Act. Everywhere brutal coercion against the poor people and farmers are being resorted to by the state to help the business houses.
The Agricultural land that is being offered is many times more than what is required for the actual undertaking. Thus new real estate owners are coming up who will provide houses and amenities only for the rich and make huge earnings for themselves. This is veritable loot sanctioned by the Government.
The so-called employment generated will be only a fraction of those who are displaced from their livelihood.
The SEZs will also bring about a large-scale imbalance in development of regions.
The CPI therefore demands that there be an immediate halt to this process, that a high level commission be set up for examining the issues involved and for ensuring that the rights and interests of the affected people especially the farmers are protected and that suitable amendments to the Land Acquisition Act be recommended and the whole concept behind the SEZ Act be re-examined."
As the issue of land acquisition is not merely question of compensation to the dispossessed farmers. It involves livelihood for many more people, rural economy, habitation and even cultural identity of villages. Hence any decision on industrial project and land acquisition has to be dealt with caution. The process should be totally transparent and decisions must be taken only after full consultation with the constituent parties of coalition governments and after taking the people into confidence. Without clinching the issues in the co-ordinating mechanisms of the coalition governments no Administrative measures should be initiated for finalising the agreements with corporate houses and for acquiring the land. Simultaneously, it should be our task to protect unity and cohesion of the Left as well as the unity and interests of the toiling people is protected.
The NC of the CPI fully endorses the position taken by the four Left parties on question of land acquisition in their note to the UPA government. The basic component of Left's position are:
1- No transfer of land ownership to private developers. All efforts should be made to locate and identity the barren, fallow and waste land for setting up industries. States should help to develop infrastructure in such areas.
2- Appropriate ceiling on land area under a SEZ developed by private developer and bigger SEZ to be built by the Public Sector. The current pattern of usage of land in SEZ need to be thoroughly reversed to curb the chances of building Mafias and real estate dealers' mischief.
3- Limiting acquisition of agricultural land. Acquisition of Multi croplands should not be indiscriminate and be avoided to extent possible.
4- Framing national rehabilitation policy, amending Land Acquisition Act. SEZ should not be allowed to become foreign land. All laws including labour laws be applicable in such zones.
5- Framing a model compensation and rehabilitation policy that should cover all affected people apart from the land-owning farmers,
6- Before opting for agriculture land for industrialisation all possibilities of recycling land blocked in closed units be explored.
In the garb of industrialisation and economic developments attempts are being made to smuggle in the FDI in the retail sector. The NC of the CPI is totally opposed to FDI in retail sector either directly or through joint venture. It also opposes attempts to monopolise the retail trade by Corporate Houses.
The National Council of the CPI respects the sentiments of the people threatened by eviction from their land for industrialisation and will extend help and support to them where land acquisition is under taken without putting in place satisfactory rehabilitation packages and evolving consensus among the political forces involved.
