Palash Speaks

Our solidarity to the adivasi of Assam
Palash Biswas
Contact: Palash C Biswas, C/O Mrs Arati Roy, Gosto Kanan, Sodepur, Kolkata- 700110, India. Phone: 91-033-25659551
Email: alashbiswaskl@gmail.com">palashbiswaskl@gmail.com
Dear friends,
The recent incident of last month at Gawahati on the adivasi youths has brought to the notice the plight Jharkhandi adivasi in the North East. Majority of the adivasi population are from the tea gardens and are at present in a miserable condition due to the closer of most of the tea gardens. On the other hand they are known as tea tribe and do not get the Scheduled tribe benefit .The tragedy is that people who migrated to Fiji and Morisus during the same time has become head of that country but here the adivasi did not get reservation in the neighboring state .within their country.
On the above subject we had made a film

CBI slaps 4 cases on Nandigram CPM leaders
Palash Biswas
Contact: Palash C Biswas, C/O Mrs Arati Roy, Gosto Kanan, Sodepur, Kolkata- 700110, India. Phone: 91-033-25659551
Email: alashchandrabiswas@gmail.com">palashchandrabiswas@gmail.com
No information on CRPF withdrawal from Nandigram: Governor
West Bengal Governor Gopalkrishna Gandhi on Tuesday said that he had no information about the CRPF deployed at Nandigram being withdrawn. This was conveyed to a Trinamool Congress delegation, which included Leader of the Opposition Partha Chatterjee, when it called on the governor at Raj Bhavan. The delegation told Gandhi that the presence of the CRPF at Nandigram has given a sense of confidence among villagers and the CPI(M) was creating pressure on the administration to have the central force withdrawn.
"The delegation wanted the CRPF to continue. It urged the Governor to have the Red Cross for relief work in Nandigram," Trinamool Congress legislator Saugata Roy who was part of the delegation told PTI after the meeting.
The Governor, Roy said, had no information about the CRPF being withdrawn.
Earlier, Home Secretary P R Roy had said that the CRPF would remain till February 12 in Nandigram as scheduled.
CPI-ML urges partners to quit Left Front
Accusing the CPI(M) of trying to "uproot" the farmers from their land in Nandigram and Singur, the CPI-M (ML) on Tuesday urged the constituents of the ruling Left Front to quit and join hands with them to form an alternative combine in West Bengal.
"If you think that the government is not run by the Left Front but by the CPI(M) who are responsible for the Nandigram incident, come out of the LF, because Bengal now needs an alternative Left Front," CPI-ML general secretary Dipankar Bhattacharya said.
He was referring to statements by LF partners RSP, CPI and Forward Bloc holding the CPI(M) responsible for the recent incidents in Nandigram.
Addressing the open session of the 8th party Congress of the CPI-ML here, Bhattacharya, who was re-elected General Secretary, said rightists forces could not get space in the state and the Left parties had to provide the alternative.
He said that as long the CPI(M) remained the largest communist party in the country, the Left movement would face a crisis.
Bhattacharya alleged that the CPI(M) no longer had close connection with the masses, but with big corporate houses and the US.
"They (CPI-M) talk about their opposition to the nuclear deal, but allowed the UPA government to hold talks with the IAEA," he said.
The Left Front government, he said, was no different from the UPA or other governments in the country and followed the same economic and industrial policy and "suppressed the people's movement".

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New Delhi: Continuing its probe in the Nandigram massacre of people on March 14, the CBI has registered four fresh cases against local CPI(M) leaders and police officials, for allegedly raping women and holding them hostages.CBI officials said one of the cases relates to the rape of a mother and her two daughters allegedly by the CPI(M) leaders of Nandigram around March 14.
The FIR alleged a local CPM leader, along with his supporters, forced their way into a house in the Nandigram area in a drunken state and raped a woman and her two daughters for two days.
The alleged perpetrators then laid a seige around the house and demanded money from the victims for lifting it.
It was only after the hapless family paid Rs 1000, the seige was lifted, the CBI alleged. Moreover, the local leader had handed over poison as medicine to the daughters who were complaining of medical problems.
Another case pertains to a police official who had not taken cognizance of a victim who alleged rape by hooligans on the intervening night of March 14 and 15.
The two other cases were registered against unnamed people who went on a rape and looting spree on the day of the police firing on March 14. The CBI alleged before the Calcutta HC that the CPI(M) workers were dressed in khaki and had fired at protestors.
The cases were earlier registered by West Bengal police and would now be investigated by the CBI, that is going into March 14 firing incident that left 14 people dead and 70 others injured

The CBI, which has been given two months to give its final report by the High Court, had alleged in its status report that witnesses were being threatened by CPI(M) workers for deposing before the investigating agency. The CBI alleged a witness who had recorded his statement before it was beaten up by Marxist workers.
The CBI report also named some witnesses who claimed before the agency that some CPI(M) workers were seen in police uniform firing at protestors.
In an observation that may cast doubts over the West Bengal police, CBI said there was no evidence available so far that the mob had thrown petrol bombs at the police, when it entered Nandigram on March 14.
The CBI also named some of the witnesses who had also supported the claim of the agency.
The CBI also sought to puncture the claim of the police that only 57 rounds were fired and informed the Calcutta High Court that "the total number of injuries on the bodies of victims indicate that more rounds were fired than the number claimed by the police."
Tata Motors to unveil 'people's car' Jan 10
New Delhi: The "people's car" from the stable of Tata Motors that its chairman Ratan Naval Tata hopes to sell for all of Rs.100,000 ($2,500) will be showcased during the 9th Auto Expo that begins here Jan 9.
"In keeping with the company's tradition of unveiling its new cars at the Auto Expo, the company will present its 'People's Car', which will be unveiled at a special ceremony on Jan 10," the $7.2-billion company said in a statement.
"Although the 'People's Car' will be unveiled at the expo, the commercial launch will take place later in 2008," said the company statement, adding that the expo will see Tata Motors jointly showcasing its automobiles with Fiat.
The company's commercial vehicles business will also display buses made by its joint venture with Marcopolo of Brazil, newly developed multi-axle heavy trucks, pick-up vehicles, applications of panel vans, and new mini-trucks.
The Auto Expo is a biennial event that has been showcasing the Indian automobile and auto-component industry for the past 18 years. It has especially emerged as a platform for the Indian auto industry to feature its latest developments.

CPM terrorising Nandigram witnesses: CBI
New Delhi: CPI(M) cadres are terrorising witnesses in Nandigram, and there are serious discrepancies in hospital records about wounds to the dead and injured, the CBI has told the Calcutta High Court in a confidential report.
The report, seen by the Hindustan Times, appears to confirm allegations against the police and the ruling party in Bengal’s “liberated” war zone.
The CBI, ordered by the court to investigate the death of 14 people in clashes between police and villagers on March 14 this year, submitted the report on Monday. The court gave it two more months to complete the probe. The CBI examined 399 witnesses, including 168 injured, and six alleged rape victims.
Police say the deaths occurred when they tried to enter Nandigram and were attacked by thousands of villagers. But the report said: “(The villagers) categorically stated that the police resorted to firing without giving them a chance to disburse (sic).”
The report added: “Villagers have categorically stated that no announcement was made and police resorted to firing without giving them a chance to run away… the victims all denied having fired on or throwing bombs on the police.”
Police say only 33 rounds were fired, including 20 blanks.
“Some of the persons who were shown to have sustained bullet injuries at the primary health centre… were later reported as undergoing treatment for blunt trauma/injury at the district hospital,” the report said. The nature of injuries registered in different hospitals did not match for 14 dead and 39 of the injured. Three letters sent by the CBI to government doctors remain unanswered.
“The CBI camp office at Nandigram is receiving... calls from witnesses... complaining of threats from CPI(M) supporters,” the report said. “They fear backlash... and torture by CPI(M) people, adversely affecting the investigation....”
The CBI mentioned by name local residents who it said had been threatened for appearing before investigators, or had been beaten up.
CPM frames false charges against CRPF
Statesman News Service
MIDNAPORE, Dec. 18: CPI-M leaders across the state are worried over the CRPF presence in Nandigram as it has boomeranged their game plan letting the BUPC activists bow down to their fold.
But now seeing that the tide is going against them the Marxists are clamouring for their immediate withdrawal from Nandigram to make the deck clear for them.
For this, they have been lodging complaints against the Central forces fabricating charges of excesses on their party workers.
After recapturing Nandigram on 10 November with few hundred ace and veteran goons from Garbeta, Kespur, South 24-Parganas and several other places the red brigade let loose terror and intimidation on BUPC loyalists till the arrival of the CRPF personnel on 18 November.
With the Central forces taking control of the area in their grip fear psychosis began to disappear from the minds of the BUPC activists who have started to retrieve their holds much to the chagrin of the CPI-M.
The Marxists are now caught on the wrong foot as the CRPF personnel have been taking against them which was beyond imagination of the party leaders unlike in the beginning when they had discharged some CPI-M cadres at the intervention of the district police for giving “good” certificates to them.
For this reason, the CPI-M have stepped up vilification campaign against the CRPF. Party’s MLAs and MPs and state committee leaders have been visiting Nandigram from time to time and reporting against the CRPF.
Four party MPs, Mr Tarit Topdar, Mr Moinul Hassan, Mr Amitabha Nandi and Mr Sudhangshu Sil, went round Nandigram last week and submitted a report to the chief minister in this regard after their return.
Earlier, a high profile CPI-M team comprising Mr Shyamal Chakraborty, CITU president and the party MP, Mr Mohammad Selim also visited Nandigram last month and demanded that the CRPF be withdrawn as they were allegedly harassing party weorkers there.
However, the chief minister, Mr Buddhadeb Bhattacharjee, has not made any official comment against the CRPF.
No word of honour for low rank cadres
Shyam Sundar Roy
MIDNAPORE, Dec. 18: CPI-M’s low rank workers of Nandigram and Khejuri have expressed their strong resentment with the party as the cadres who laid down their lives during the Nandigram recapture operation have not been accorded the martyr status.
While Tapan Ghosh and Sukur Ali, 2001 Chhoto Angaria accused, were treated as “assets” of the party and given heroes’ welcome after their release on bail from Contai judicial magistrate’s court. But the five party cadres who were killed in a blast at Sherkhanchowk in Khejuri on 27 October were not given their due honour. The reason being they belonged to the lower ranks of the party.
The embarrassed district CPI-M leaders refused to make any comment in this regard. Half-burnt bodies of Sunil Bar, Bachan Garudas, Srimanta Das, Gourhari Das and Gobinda Singh were exhumed at the directive of the CBI in presence of CRPF officers and the district police over a week ago.
The victims’ were among the 27 CPI-M cadres who were killed during the Nandigram operation. Party leaders claimed that the BUPC activists hurled bombs at a relief camp where they were staying leading to their deaths . However, this story was contradicted by one of the victims, Gourhari Das, who told reporters at the Tamluk district hospital minutes before his death that the blast had occurred when they were manufacturing bombs.
However, the party leaders have finished their duties by publishing their names in the martyrs’ lists, their relatives of the victims regretted

Yechury takes a dig at Advani on Nandigram
Kanwar Yogendra
SHIMLA: The CPI(M) on Tuesday questioned the BJP over its opposition to the tough measures taken by the West Bengal government against the Maoists at Nandigram where they had set up a “liberated zone.”
CPI(M) leader Sitaram Yechury was reacting to the reference made by BJP leader L.K. Advani during his public meetings here.
Addressing media persons here Mr. Yechury said even though the Prime Minister had declared Maoists as one of the biggest threats to the internal security of the country, the BJP continued to oppose the tough measures taken by the West Bengal government in reining them.
He said Home Minister Shivraj Patil had said in Parliament that the violence in the State was due to the Maoists who had barricaded the village and prevented the villagers to return .
The violence that followed in Nandigram was due to them for which the BJP was criticising the CPI(M), he added. Mr. Yechury said 36 CPI(M) cadres were killed in the violence .
However, the situation in the BJP ruled State of Chhattisgarh was far worse where the Maoists controlled half of the State , Mr. Yechury said.
http://www.hindu.com/2007/12/19/stories/2007121956601400.htm
The real issues are graft, price rise and unemployment”
“Advani bent on making Himachal another Gujarat”

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SHIMLA: CPI(M) leader Sitaram Yechury on Monday said the BJP and the Congress were diverting the people’s attention from the real issues of corruption, price rise and unemployment, and confusing them with the pointless outcome of a hard disk or CD expose in the hill State.
Mr. Yechury, campaigning for the party candidate in the capital, said both parties were jointly targeting the Left. The hard disk data, he said, exposed how people close to the CPI(M) were denied jobs by the BJP. But the Congress did nothing on the issue for five years and released the data only on the eve of the present elections to draw political mileage.
Mr. Yechury also criticised the BJP’s comparison of the Nandigram incidents to what happened in Tiananmen Square in Beijing, where troops opened fire on pro-democracy protesters in 1989.
The party also opposed the statements of BJP leader and Leader of the Opposition in the Lok Sabha L.K. Advani, “who was bent on making Himachal another Gujarat.” The nation knew what happened in Gujarat; let Himachal be Himachal and a peaceful State, Mr. Yechury said.
Mr. Yechury took exception to some news reports that the CPI(M) was “extorting” money from industrialists in the Baddi-Nalagarh area of Himachal. While promising to take up the issue with the editor of the regional daily concerned, the CPI(M) also returned a cheque for Rs. 16 lakh to the Tatas, which gave money to all parties for elections. The CPI(M) was against political donations and corporate funding of elections since these bred corruption later, he added.
On the role of the CPI(M) at the Centre and the survival of the UPA government, he said, it was because of the Left that a number of pro-poor decisions — such as the National Rural Employment Guarantee Scheme, forest rights to tribals and not allowing FDI in the retail sector — had been made in the past three years.
The survival of the UPA government depended on its attitude to the India-U.S. nuclear deal. Let it present the outcome of the second round of talks before the UPA-Left coordination committee, he said.

Relook SEZ, proposes Buddha
Palash Biswas
Contact: Palash C Biswas, C/O Mrs Arati Roy, Gosto Kanan, Sodepur, Kolkata- 700110, India. Phone: 91-033-25659551
Email: alashbiswaskl@gmail.com">palashbiswaskl@gmail.com
Thousands vow not to rest till all SEZs are scrapped
NT Staff Reporter

Panaji, Dec 18 On the eve of Goa’s Liberation day, thousands assembled at the Azad Maidan, Panaji under the banner of the Goa’s Movement Against SEZ and vowed on a flaming torch not to rest till the government scraps all SEZs in Goa.
The GMAS convenor Mr Mathany Saldanha appealed to the Chief Minister, Mr Digambar Kamat to announce the scrapping of SEZs tomorrow itself to prevent Goa from going up in flames while other speakers warned that the agitation may turn violent if the SEZs are not scrapped immediately.
Four resolutions, read by former minister Dr Wilfred Mesquita, were passed at the meeting.
“In order that government brings peace, harmony and sustainable development and land use in a transparent manner, we resolve and demand immediate scrapping of SEZ policy in the state of Goa; immediate cancellation and withdrawal of all SEZ applications sent to the Ministry of Commerce and Industry, government of India; as also immediate de-notification of notified SEZs.’’
The second resolution demanded “judicial enquiry in allocation of land and setting up of SEZs, IT habitats, parks and retreats.’’
The third resolution demanded “total updating of employment exchange live register, within a period of one month. And that the government brings out a white paper on the unemployed in Goa with details of their qualifications, age, place of birth and skills. On similar lines, the government should immediately publish a white paper bringing out details of all those who are employed in this state of Goa with respect to all industrial establishments, including tourism, fisheries and agriculture. The same papers should be widely publicised through websites.’’
The last resolution demanded that the “government should not acquire any land from private individuals or communidades except for the purpose of infrastructural projects, all for the benefit of the state of Goa. So also, the government should not acquire any land so as to give the same to private parties for private use either by sale, by lease, contract or otherwise.’’
‘‘We have come together regardless of caste and creed to oppose SEZs in Goa. Our aim is to save Goa for our future generations. The government promise of giving jobs to Goans is a lie. Or else, why are the present industries in Goa employing 90 per cent non-Goans?’’ Mr Saldanha asked.
The Opposition leader, Mr Manohar Parrikar said the SEZ scam involves money of around Rs 300 crore.
“If SEZs are to be scrapped, this money will have to be returned to its promoters, which the chief minister does not have to spine to do,” said Mr Parrikar.
He said Goa’s population that was 5.6-lakh in 1961, has now grown to over 15-lakh.
“Let us freeze this 15-lakh population. We don’t want Goa to become another Mumbai or Bangalore. Let us preserve our uniqueness,’’ he said.
The North Goa Member of Parliament, Mr Sripad Naik also warned that the government would be solely responsible if the anti-SEZ agitation takes an unpleasant turn.
He criticised the Congress government for the poor infrastructure in all sectors and for the worsening law and order situation in Goa.
Some of the prominent speakers included Mandrem MLA, Mr Laximikant Parsenkar; the Mapusa MLA, Mr Francis D’Souza; former Cumbarjua MLA, Ms Nirmala Sawant; the state Shiv Sena president, Mr Upendra Gaonkar, Fr Lino Florinda of the Pilar Society and others.
Relook SEZ, proposes Buddha
New Delhi: Facing all-round attack over Nandigram, West Bengal Chief Minister Buddhadeb Bhattacharjee on Wednesday sought a "fresh look" into the Centre's policy on SEZs, which he felt should be restricted to select industries.
He also wanted the Centre to fix a ceiling on land for a particular type of SEZ and work out the percentage of land area to be compulsorily utilised for industries within that limit.
"The scheme for special economic zones (SEZs) requires a fresh look. Industry groups should be identified in the first instance which are to be covered under the scheme, instead of extending it to all and sundry," he said at a National Development Council meeting.
Bhattacharjee, CPI (M)'s posterboy of industrialisation, was of the view that since the minimum land requirement is prescribed, "there should be an upper ceiling of land as well for a particular type of SEZ."
The Central Government has already fixed a land ceiling of 5,000 hectre for multi-product SEZs following mass protests by farmers in various states.
The Bhattacharjee government in West Bengal landed in trouble after its plan to set up an SEZ in Nandigram triggered violent protests and clashes between CPI (M) cadre and locals in the region.
He reminded the UPA Government of its Common Minimum Programme commitment for transferring centrally sponsored schemes, along with funds, in the state subject to states and favoured a "Sub-Plan" approach for uplift of minorities.
Maoists attack railway project in Bihar
Patna: Suspected Maoists injured over half a dozen workers engaged in a mega railway project in Bihar's Gaya district.
The armed ultras attacked workers of a private construction company on Tuesday, engaged in the construction of a bridge, as part of the Rs.30.3-billion Tailiya-Rajgir rail project.
The injured workers were taken to the Patna Medical College and Hospital for treatment.
According to police, between 300 to 400 Maoist attacked the office of the Patna-based Ravindran construction company engaged in laying new rail lines between Rajgir in Bihar and Tilaiya in Jharkhand, beat up the workers with batons before damaging eight tractors and an earth mover.
Police suspect that the attack was result of failure of the construction company to pay money demanded by the Maoists.
After the attack, police provided security at the construction site and assured all help to officials engaged in the railway project.
Maoist menace has halted many infrastructure projects in rural Bihar, including those in the area of assembly Speaker Uday Narayan Choudhary. "The fear of Maoists has forced contractors to stop work in rural areas of Gaya district after Maoists threatened them," a government engineer in Gaya said.
Last month, Maoists demanded Rs.220 million from the Hyderabad-based company Engineering and Construction Inc. (ECI), which is building roads in Rohtas district. Officials of other companies engaged in road construction across the state have also complained of receiving extortion threats.
Beur jail: Police use force to end Maoist siege
Patna: The police late Tuesday evening used force to break the day-long siege of Patna's high-security Beur jail by Maoist inmates and immediately launched a massive search operation in the cells to seize hidden arms, ammunition and cell phones.
The police had to resort to mild baton charge to disperse the Maoists from the inner core of the Beur jail and send them back to their wards.
Much to the relief of the state government top brass, the siege ended without any violence.
Jail authorities claimed the administration has taken over control of the jail.
Hours after hundreds of angry Maoist inmates took control of a large part of the jail, armed personnel of Bihar Police, Special Task Force and Special Auxiliary Police moved in, ready to use force, if the need arose, in confrontation with the Maoist rebels.
Over 400 police personnel were deployed both inside and outside the jail to end the stalemate.
Earlier, top government and police officials were involved in negotiating with the agitating inmates.
Inspector General (Law and Order) of Bihar Police, Anil Sinha, claimed earlier in the day that the situation was under control in Beur jail.
He downplayed the issue of inmates laying a siege to the inner wing of the jail, saying only 200 Maoist inmates were agitating in support of their demands, including for a probe into the suicide by a Maoist inmate, Nagina Manjhi, a few days ago.
Sources in the district administration said negotiations with the Maoist inmates could not succeed as the rebels demanded a compensation of Rs.2.5 million for Manjhi's kin.
It all started when Maoist inmates attacked police personnel on duty inside the jail, forcing them to flee. The inmates freed two top Maoist leaders, including Ajay Kanu, by breaking open the iron door of the cell where they were lodged.
Kanu was the mastermind behind the 2005 Jehanabad jailbreak when around 300 inmates, including 150 Maoists, escaped. He was later arrested and lodged in Beur jail.
The Maoists also reportedly assaulted some inmates, including a legislator, who tried to pacify them.
Maoists inmates have been staging a protest inside the jail premises for the last few days after Nagina Manjhi, 40, a member of the outlawed Communist Party of India-Maoist (CPI-Maoist), committed suicide Dec 14.
Manjhi was found hanging from the iron gate of the jail infirmary where he was being treated for a minor ailment. Official sources said over 300 Maoists are lodged in Beur jail.
According to jail officials, there are about 2,400 inmates in Beur jail, almost more than double the capacity of the prison.
Maoist inmates have accused jail officials of failing to provide prompt medical help to Manjhi. They began a hunger strike inside the jail Sunday to protest the lack of proper facilities.
After news spread about the uprising, top police officials rushed to the jail from Patna and additional security forces were deployed.
Jails across Bihar were put on high alert Monday, a day after around 300 Maoists escaped from a jail in Dantewada district of Chhattisgarh.
Hundreds of Maoists, including their self-styled commanders, zonal commanders and area commanders are lodged in 56 prisons across the state.

ESC asks govt to make India a repair hub for IT goods
NEW DELHI: Electronics and Computer software Export Promotion Council (ESC) on Tuesday asked the government to create the right fiscal environment for promoting India as a major service hub for repair and refurbishment for IT and Telecom goods.
"Market for repair and refurbishment services world-wide is estimated at over 110 billion dollar. Spiralling cost of repairing in developed countries like the US and Europe is compelling the companies to send goods overseas, where such services are provided at lower prices," ESC said in its presentation to the Finance Ministry as a part of its pre-budget exercise.
However, he said the products, which has been imported for repair and refurbishment should be exported. Such goods should be re-exported after carrying out the required services.
ESC also urged the Finance Ministry to favourably consider the industry appeal to grant tax sops to the IT units irrespective of the location.
"The number of small and medium enterprises in the IT export segment is close to 500. Most of them have the export turnover less than Rs 5 crore. Compelling them to migrate to SEZs to avail tax sops will have many adverse effect, such as increased cost of shifting," it said.
SGPIAG opposes SEZs in state, urges govt to revoke approvals
NT News Service

Margao, Dec 18 Opposing setting up of SEZs in the state, the South Goa Public Interest Action Group (SGPIAG) demanded revocation of the two approvals granted at Kerim and Verna SEZs and withdrawal of all approvals given by the state government to others.
According to SGPIAG the state has a fragile landmass of 3702 km2, of which 1224 kms2 was under forest cover.
Lack of proper educational\vocational\technical and professional policy, since Liberation, has resulted in a mismatch of industries, the group said.
Further, this mismatch has resulted in large scale immigration, thereby changing the demographic composition of the state, which is detrimental to the socio-cultural and traditional ethos of the state, the group claimed.
“Inadequate infrastructure -- power, water, sewerage, mass transportation -- has put severe pressure on the indigenous population of 14 lakh, of which around four lakh are non-Goans,” SGPIAG president, Mr Terence Mazarelo disclosed.
Real estate and housing prices have skyrocketed due to the foreigners and non-Goans investing heavily in land, in the state, Mr Mazarelo claimed.
The group further said that Goa has become a global village with persons of almost all nationalities residing in the state.
“It is too fragile to admit more and to rid the present lot is our top priority,” SGPIAG president said.
SEZs’ benefit from fiscal incentives will cut into the states revenue and would eventually lead to heavy taxation on indigenous population to make up the shortfall, the group claimed.
The land available for infrastructure relating to non-production activity in SEZ will create a city within a village and therefore, will be detrimental to those within the periphery of the SEZ, Mr Mazarello said and recounted how the industrial estates have been out of the purview of Village Panchayat and Municipal Acts and Rules.

Wednesday, December 19, 2007
Good news for SEZ developers, used capital goods to be allowed in SEZs
Dr Suvrokamal Dutta, 17 December 2007, Monday
The present rules prohibit use of old equipment in SEZs was to motivate fresh investment and ensure that units did not misuse the tax breaks. They will be allowed to transfer used plant and machinery of up to 20 per cent of the total capital goods.

GOOD NEWS for Special Economic Zone (SEZ) developers, it has come into the notice of the general public after the government initiative that very soon they will be allowed to transfer used plant and machinery of up to 20 per cent of their total capital goods requirement to SEZ they set up.
If experts are to be believed, this will mark a tremendous relaxation of the terms and conditions that at the present juncture prohibit developers from using second-hand capital goods in SEZs. Early indications are that the rules will be amended in coming days and will offer plenty of SEZ developers to leverage present units outside the zones for equipment, which can assist them in saving a large chunk of time and cost.
The commerce ministry officials say in this regard that the ministry would be sending the proposed change in the rules to the law ministry for its clearance. It is worth mentioning in this regard that the proposal was originally introduced in the Income Tax Act in the 2007-08 Budget.
The main aim of the present rules prohibiting the use of old equipment in SEZs was to motivate fresh investment and ensure that units did not misuse the tax breaks allowed in SEZs by just relocating units.
To counter this scenario, the commerce ministry had modified the SEZ rules last year, prohibiting the use of plant and machinery in SEZs that was previously used in domestic tariff areas.
SEZ industry executives are quite pleased with the government proposal, saying it will bring lots of advantages in the long run, especially to the InfoTech and IT-enabled service and high-end engineering businesses.
Theoretically speaking, plenty of companies are interested in bringing expensive and custom-made equipment, including high-capacity servers and local area networks, to new units in SEZs. In my opinion, there is a genuine requirement in certain sectors to transfer some old equipment to the SEZ units. The pivotal factor here is that the relaxation would not lead to misuse since the permissible percentage of second-hand capital goods is not big.
Thus one can expect good days for the SEZs players here in India in the coming days ahead .There is a lot of expectation for the SEZs lobby in the coming budget of 2008-09 .One strongly hopes the rules are not further relaxed by the commerce ministry at the cost of the poor agricultural farmers.

(The Writer is a renowned Foreign affairs and Economic Expert; Chairman, Global Council for Peace; Convenor, Debating India.)