Special Economic Zones in India: Location and Land Utilisation.

The study examines the issue of land utilisation in Special Economic Zones (SEZs) in India. As per the government, over half of the land is lying vacant in SEZs. The related issues of low proportion of functional SEZs, de-notification of notified SEZs, and notification of few new SEZs co-exist. The government has also proposed to bring a new SEZ law. The effectiveness of new law with respect to land utilisation will be known when it will come into force. The need is to understand the current level of utilisation and that too in spatial terms. In the near absence of state wise analysis, the study investigates levels of land utilisation in SEZs at the state level. The analysis is also carried out with respect to sectors and promoters (private and government). The factors in terms of accessibility and land quality have also been assessed. In general, results indicate similar levels of utilisation across different categories of analysis. At an all India level, the utilisation of SEZ land is about 37 per cent. Within processing area around 45 per cent land is lying vacant. SEZs are not found to be affected by locational disadvantage in terms of accessibility and land quality. The paper raises the question relating to the need for new SEZs when established ones show low levels of utilisation. The setting up of new SEZ units in already existing SEZs and linking incentives and conditions to quantum of exports, investment achieved, and location of SEZs in unproductive lands are the best possible strategy to ensure land utilisation. [ABSTRACT FROM AUTHOR]