A study on Special Economic Zone implicated land acquisition and utilisation

Abstract

This paper examines the dimensions of land acquisition with respect to establishment of economic zones across India. The enactment of SEZ Act 2005 allows the Government to transfer the land acquired for public purpose under Land Acquisition Act to the private companies for development. For private firms land turning in to most significant incentive for being part of SEZ scheme and profit maximisation. It has been observed that large part of acquired land ends up in the hands of the real estate companies rather than intended productive sectors of industry and infrastructure. Land is the principal source of livelihood in an agrarian economy. Forcible acquisition and transfer of land to corporates leads to large scale unemployment and displacement especially when large part of tract remains unutilised. It raises many questions on objective and process of establishment of SEZs. The absence of land use the policy is primarily culprit for faulty diversion of land agriculture along with underutilisation of available land. The extreme nature of these SEZs needs to be analysed through proper policy making.