CREDAI
Track2Realty: Strongly opposing the country’s first ever SEZ exit policy formulated by the Maharashtra Government, CREDAI has expressed fear that the move will cause urban chaos rather than solving any.
CREDAI National President Lalit Kumar Jain wonders 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” says 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 says.
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 adds.
He laments 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? At best the policy will benefit few influential industrialists,” he asserts.
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.
Internationally, it is a well recognized fact that FAR ort FSI below 5 is just disastrous. Considering the area to be left for infrastructure like roads and open areas, the net FSI will come to around 2 to 2.5 which is quite acceptable as opposed to destruction of green areas, he added.
