SOCIO POLITICAL AND LEGAL ASPECT OF BUSINESS

Special Economic Zone and its Impact on the Society

Angshuman Sarkar Mangesh Dharwad Rahul Murkya Vidit Mehta 12125006 12125026 12125037 12125053

Introduction
Designated areas in countries that possess special economic

regulations duty free, treated as foreign territories Economic laws in SEZs are more liberal than the countrys typical economic laws Also these regulations tend to contain measures that are conducive to Foreign Direct Investment (FDI) Conducting business in a SEZ usually means that a company will receive tax incentives and the opportunity to pay lower tariffs SEZs include Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial Parks or Industrial Estates (IE), Free Ports, Free Economic Zones, and urban Enterprise Zones

Introduction
India first in Asia to recognize effectiveness of EPZ model Established Asias first EPZ set up in Kandla in 1965 Special Economic Zone(SEZs) policy announced in April 2000 Till 2006, SEZs functioned under provision of the Foreign

Trade Policy The Special Economic Zone Act was passed in parliament in 2005 and came into effect on 10 February, 2006 Main objective of the SEZ Act are:
Generation of additional economic activity

promotion of exports of goods and services

promotion of investment from domestic and foreign sources creation of employment opportunities development of infrastructure facilities

Main Focus
Analysing SEZs from the view point of all stake holders viz.

Corporate, governments and society Pros and cons of SEZs with respect to society Perceived benefits versus actual benefits to the society
Eg. NTPC Does the benefits that corporation receive out of SEZs, trickle down to

society

Major problem associated with SEZs is deterioration of

agriculture lands examples of Nandigram, Hinjewadi etc.

Methodology
Primary method followed by taking the first hand experience of

our team members who have worked in SEZ zones

Secondary methods by taking the information about SEZ over

the internet, magazines, news articles etc.

By visiting SEZ sites and speaking to people whose land has

been acquired for converting them into SEZ zones

Shankarpur, Manbhawna and Kanhwapur of Unnao district

Findings
Generally the benefits that corporations get, do not trickle down

to the society Farmer movements and uprising to deal with issues:

Bhumi Uchhed Pratirodh Committee (Nandigram) Krishak Mukti Sangram Samiti (KMSS), Assam, etc

In many of disputes arising with due to SEZs Two of the stake

holders viz. Government and corporations usually form an alliance against the third stake holders i.e. Society E.g. Nandigram, Human development and poverty of inhabitants in the SEZ Tax losses to government

Findings
SEZ controversies & related farmer movements and agitation

has also changed the political scenario

E.g. West Bengal political scene changed after the Nandigram incident Mamata Banerjee - Ma Mati Manush

Primary objective of SEZs to attract FDI is beaten many companies relocate to benefit tax concessions giant corporations gobble up mind-boggling quantities of agricultural and urban land
E.g. Tata acquiring more than 100 bighas of land in 1 particular rural belt in

Assam

Future Work
To gain more primary data we would be visiting Shankarpur,

Manbhawna and Kanhwapur of Unnao district

Interact with the people who are inhabiting in the region Find out the compensation package offered to them, relocation policies

and other such benefits being offered by the government / corporations

More in-depth research on other controversial SEZs such as

Nandigram, through not just online resource, but also by interacting personally with people who have been witnesses of such disputes Try to analyze few recommendation on how the process of acquiring land can be changed so that it is beneficial for all the stakeholders

THANK YOU