Goa government says no to SEZs

December 31 2007 was a significant day for the people of Goa in their agitation against the establishment of Special Economic Zones (SEZs) in the state. Following sustained mass public protests over months, and the serious possibility of bandhs all over Goa during the Christmas and New Year season, the state government announced its decision to scrap all SEZ projects in the state. The government decided to withdraw its recommendation to the Centre pertaining to all 15 SEZ projects, of which three were already notified and four were approved but were awaiting notification.

This development in Goa has given a positive fillip to the struggles against SEZs that are going on in several states. Through these struggles people have clearly opposed the attempts of the state to seize land from peasants and community land and transfer them to big corporate profiteers. People are increasingly seeing that all promises that SEZs will lead to economic growth and expanding opportunities for livelihood are empty; likewise all promises to "compensate" them for loss of land and livelihood. People are more and more seeing through all the myths sought to be created about SEZs and have understood them for what they are — a way to benefit big companies and land grabbers at the expense of the masses of the people.

The Goa protests and the subsequent move of the state government of Goa to scrap all SEZ projects in the state has thrown the bourgeoisie into crisis. To forcibly impose SEZs on the people of this state could result in confrontation of the Central state with the people which would bring uncalled for negative publicity in India as well as internationally. On the other hand, to withdraw the SEZs would also send a negative signal to investors from India and abroad that the SEZs are not the safe havens that the Central Government has made them out to be.

The Commerce Minister Kamal Nath has assured the state that "the Centre does not want to thrust SEZs on states and can review such cases in Goa". He has however added a rider that the Centre is waiting for written reasons from the Goa government for scrapping the different SEZ projects On the other hand, the Commerce Secretary, Gopal Pillai has declared that "there is no provision under law (for states) to recommend de-notification. They (the states) have no locus standi to withdraw the notifications to the SEZs", as post-notification these have become "legal entities.'' He also pointed out that the concerned SEZ developers – Peninsula Pharma Research Centre, Meditab Specialities and K Raheja Corporation – had already invested about Rs.500 crore in projects in Goa.

Special Economic Zone proposals go through a three-stage process. The SEZ proposals are first considered for in-principle approval based on the merits of the application, followed by a formal approval and finally a notification. All approvals are accorded by a Board of Approvals (BoA) constituted by the Commerce Ministry under the Special Economic Zone Rules (2006). The State Governments are required under the scheme to offer specified facilities and concessions for promotion of units in SEZs.

The SEZ Act of 2005 has been precisely formulated in such a way that the big bourgeoisie of India as well as foreign imperialists can safely invest in safe havens in different parts of India, wherein they will be provided special concessions to make maximum profits. The Central state would guarantee these so that changes in central and state governments would not affect the profits of these capitalists. Giving in to Goa’s decision will mean that parliament will have to amend the SEZ Act, 2005, to allow de-notification. This exposes the real nature of the Centre-state relations, where the Centre holds the final say and can over-ride a decision of the state government on an issue that affects the livelihood of millions and the economy of the state.

This event clearly reflects the struggle that has been building up over SEZs. The big bourgeoisie wants to use its control over the central state and over the state governments to take over the land, the natural resources of the people at throwaway prices, using state repression when necessary to achieve its goal. This is being challenged by the people all over the country. In response to the initial round of opposition, the Prime Minister had declared that SEZs are here to stay. But the people have refused to accept this and the latest outcome of their struggle has shown that the bourgeoisie's plans can be defeated.