India to see new economic zones

India hopes the new zones will boost trade

India's government has lifted a freeze on the acquisition of land to set up Special Economic Zones (SEZ).

A temporary ban was imposed in January after widespread protests by farmers who said they were not being properly compensated for lost farmland.

Commerce Minister Kamal Nath, announcing the new plan, said land would no longer be acquired by state governments, but by developers.

The idea of tax-free zones stems from China, as a way to promote trade.

There will now be a limit of 5,000 hectares for each zone.

The initiative has inspired huge interest among would-be developers but has also prompted resistance from rural communities.

Recent government moves to clear land for a petrochemical centre in West Bengal led to conflicts killing 14. Other regions also saw protests.

Farming in India is the mainstay of some two thirds of the population.

On the other hand, increasing trade is deemed a way to encourage industrialisation and increase India's economic base.

Venugopal Dhoot, president of the Associated Chambers of Commerce and Industry, said allowing more such economic areas "would accelerate economic activities for increased production and exports".

The government said permission would be given for 83 SEZs. A further 162 such areas which already have preliminary permission would be looked into.

Another potential 140 new zones would also be examined.

Following the recent protests in the West Bengal's village of Nandigram and elsewhere, Commerce Minister Kamal Nath said no state could oblige farmers to sell their land.