Land acquisition continues to play spoilsport in development of special economic zones (SEZs) in various states. The high-level decision-making body on SEZs, Board of Approval (BoA) at its meeting scheduled on August 11 will take up proposals for granting third extension for in-principle approval given to Reliance Haryana SEZ, Suzlon Infrastructure, Chhattisgarh Infrastructure Development Corporation, RNB Infrastructure and SPL Industrial Park.

Besides, BoA will also take up proposals for extension even beyond the expiry date or giving second extension. The SEZ promoters under this category include Indiabulls Builders, Bengal Srei Infrastructure Development Ltd, Uttam Galva Steels and Greater Noida Integrated Warehousing Zone. These developers have sought further extension as they have to acquire land for the proposed SEZs.

Sources told FE that BoA has taken a decision not to give second extension for SEZs for IT/ITES/G&J/biotech/non-conventional energy SEZ with minimum requirement of 10 hectare. For sector-specific SEZs, conditions for grant of first extension will be applicable.

Apart from this, the developer must have 60% land acquisition or possession. In case of multi-product SEZs, conditions for grant of first extension will be applicable. Apart from this, the developer must have 50% land acquisition. The Centre has already made it clear that land acquisition under coercion will not be allowed. Consequent upon the SEZ Rules coming into effect from February 10 2006, formal approval has been granted to 531 SEZ proposals. There are 143 valid in-principle approvals. Out of the 531 formal approvals, 260 SEZs have been notified.

Reliance Haryana had already received two extensions for in-principle approval for setting up of a multi-product SEZ over 10,000 hectare, which was later reduced to 5,000 hectare. So far, 440.71 hectare has been notified and Haryana State Industrial Development Corporation (HSIDC) has transferred 133 hectare to the developer. In addition, the developer has also purchased 486 hectare, which is noncontiguous. Reliance is seeking the support of Haryana government to make the land contiguous.

For Suzlon Infrastructures? hi-tech engineering products and related services on 202 hectare, an approval was granted way back on August 22, 2006. Validity of in-principle approval was extended for two years up to August 21, 2009. The developer is in possession of 81.74 hectare. It has sought one more year to acquire the balance land. The request for third extension to acquire minimum 18.26 hectare will be considered at the August 11 meeting.

Similarly, RNB Infrastructure and SPL Industrial Park, which have received two extensions, still have to acquire land and thus have sought the third extension. RNB Infrastructure is developing textile SEZ on 107.24 hectare in

Tamil Nadu and SPL Industrial Park is developing plastic processing zone on 100 hectare in Maharashtra. Moreover, Indiabulls has argued that acquisition of 1000 hectare of contiguous non-agricultural land for multi product SEZ in Maharashtra?s

Thane district is taking longer time than expected for complete acquisition.

Sources said ? BoA has decided to allow extension of validity of in-principle approval beyond 3 years in case of multi-product SEZs and has directed to take steps to amend the relevant rule to add such provision. Amendment to relevant rules has already been proposed and will be issued shortly. Indiabulls has been granted only one extension so far. For multi-product SEZs, as per proposed amendment, extension can be granted for three years.?