Date:25/08/2006 URL: http://www.thehindubusinessline.com/2006/08/25/stories/2006082502291101.htm

Back Zone of war

The Finance Minister, P. Chidambaram, may have lost the SEZ fight, but he has found some support from unexpected quarters.

The FM has been the sole campaigner for a cap on Special Economic Zones in the country since his Ministry sees such zones as massive revenue leakage areas while the Commerce Minister, Kamal Nath, seems to have made it his life's mission to create as many SEZs as possible.

Once the earlier ceiling on the number of SEZs was reached, journalists found easy access to both the Ministries giving their reasons for and against more such zones. Chidambaram finally lost the battle on Wednesday night when the Group of Ministers on this subject decided to do away with any caps, but his dogged fight resulted in the Commerce Ministry putting in some safeguards against misuse of concessions granted to units in such zones.

If there were no takers for Chidambaram's line of thought in the GoM, he found support from the Left parties which have raised a belated cry against SEZs. But how long this support will last is the moot question.

The West Bengal Government is reported to be against the ceiling because big multinational companies have plans for such zones in the State and have missed the bus in the first round.

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