To achieve high production targets, Government is now focusing on Special Economic Zones (SEZ) without considering its negative impacts.
Recently, Government has decided to increase number of SEZs, wherein Government will provide various tax-holidays to the companies which set up units in SEZs.
However, Government fails to notice that it will curtail its source of incomes.
Many industrialists have opposed this move as Government is selling valuable lands at meager prices to set up SEZs.
Government claims that these SEZs will help in attracting foreign investment of $5 billion by 2007 and will generate 1.5 million jobs.
Several industrialists and Ministry of Finance fear that Government will lose around Rs1790 billion by providing tax-holidays and other benefits to the industrialists.
Those units which are to be set up in proposed SEZs will ruin small & medium sector industries.
Farmers whose lands have been acquired by Government at lower prices will be agitated when the prices of land will soar after SEZs start functioning.
Many industrialists suggested that Government should set up industrial clusters instead of SEZ as Government does not have to lose income by providing tax-holidays and other benefits given in SEZs.
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