Friday, January 25, 2008

ASSOCHAM asks Centre, states to set up SEZs in troubled areas

24 Jan 2008, 2121 hrs IST,PTI

MUMBAI: Industry body ASSOCHAM has suggested that Central government and state governments should develop SEZs in trouble-torn and Naxal-hit areas of the country where problems like insurgency and youth unrest exists.

ASSOCHAM President Venugopal Dhoot, in a letter addressed to the central and state governments said: "SEZs could be used as a tool to address issues like insurgency."

It suggested that Special Economic Zones should be set up in areas like Assam, Chambal valley and Naxal-hit Telangana, Jharkhand and West Bengal.

ASSOCHAM letter has pointed out that problems like insurgency and youth unrest exist in areas which have not seen the light of economic development.

"Both the central and state governments should take the initiative to invite developers for setting up SEZ projects in insurgency-prone areas," ASSOCHAM said.

The chamber said the government should go out of the way in giving incentives to attract companies for setting up SEZs in these areas.

"We should not analyse returns in the short term and be concerned about the long term prospects that these projects bring on board," the letter said.

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