Maharashtra SEZ Bill hits a snag

The Centre has rejected the Maharashtra government's plea to grant exemption from the provisions of the Bombay Shops and Establishments (BSE) Act in Special Economic Zones (SEZ).As a result, now, there will be restrictions on the working hours according to the provisions of the act.When the proposal for SEZ was introduced, government officials expected that the government would grant complete exemption, particularly from the provisions of the labour laws and BSE Act, to attract foreign as well as domestic investments.A policy was introduced in 2000 for setting up SEZs with a view to provide an internationally competitive and hassle-free environment for exports. Maharashtra was the first state to take a lead. Even the responses to the state was quite encouraging, as the Centre approved 123 industrial proposals, which will require nearly 55,000 hectares of land. The proposals were supposed to attract an investment of Rs 1,34,777 crore and provide jobs to 56,42,041.In 2006, the state submitted the Maharashtra Special Economic Zones and Designated Areas Bill to the Centre for approval. A week ago, the Centre did grant permission to introduce the bill, but with a rider to remove the BSE Act exemption part. As there has already been a delay of more than two years, the state is now considering to promulgate an ordinance for the new SEZ rules, minus the exemption of the BSE Act provisions, in consultation with the governor.Elaborating the contention, he said, if there was no law, then the state would not be able to grant promised concessions—in Octroi, stamp duty or sales tax—to entrepreneurs. Significantly, at least five states, Uttar Pradesh, Madhya Pradesh, Karnataka, Andhra Pradesh and Gujarat, have already implemented the SEZ Act, without consulting the Centre.