Sustainable Development and SEZs

Abstract- “Industrialization is a must for development….It can’t be attained only by agriculture. You will not be able to show me one developed country that has reached their focusing solely agriculture. If Tata factory can’t come up in Singur, it will be bad news for West Bengal’s development. Concerned parties should try to resolve the matter through talks

The Stockholm Declaration of the UN embodied this shift in thinking, stating that “man ...... bears a solemn responsibility to protect and improve the environment for present and future generations” and subsequently asserts that “the natural resources of the earth .... must be safeguarded for the benefit of present and future generations through careful planning and management”.

The traditional concept that development and ecology are opposed to each of other has not been acceptable. Sustainable Development is considered as the answer to resolve the conflict between development and industrialization.  There have been several development initiatives including the Special Economic Zone (SEZ) policy in India. But, the industrialization initiatives must be in consonance with the sustainable development. An attempt is made to analyze the SEZ policy and sustainable development with special reference to the Kakinada Special Economic Zone Private Limited East Godavari District of Andhra Pradesh India.

Sustainable Development

Prologue

Sustainable development refers to adequate use of natural resources today without any wastage, such that there is enough left for our future generations.  In October 1982, the UN General Assembly adopted the World Charter for Nature and Principles of Sustainable Development. The Agreement expressly recognized the principle of sustainable development, defined as using living resources in a manner that 'does not exceed their natural capacity for regeneration' and using 'natural resources in a manner which ensures the preservation of the species and ecosystems for the benefit of future generations'. The Bruntland report on 'Common Future' also endorsed the view by stating 'humanity's ability to ensure that [development] meets the need of the present generation without compromising the ability of future generations to meet their needs.'  In M. C. Mehta v. Union of India (Taj trapezium case), the Taj Mahal was protected from nearby industries by shifting them to the outskirts of the city and 'yellowing' of the Taj was prevented. The decision was taken by the court based on principles of sustainable development. In another case N.D. Jayal v. Union of India, 7 the court linked sustainable development with 'Right to life'. It noted that principles of sustainable development should be made an integral part of the right to life under Article 21 of the Constitution. The doctrine of “sustainable development” is all about balancing of rights.

The SEZ Act, 2005

The Commerce and Industries Minister of India had visited the SEZs in China in the late 1990s. Consequently, Export -Import Policy 2000 was announced during April 2000 introducing the concept of SEZ. The policy was to provide an internationally competitive and hassle free environment for exports in SEZs. The Special Economic Zones Act, 2005 (The SEZ Act) enacted in 2005 was brought into force on 10th February, 2006 along with the SEZ Rules, 2006.

The main objective of the SEZ Act is to promote exports. It provides for the establishment, development and management of the SEZs.

The prime objectives of the SEZ Act are:

(a) generation of additional economic activity

(b) promotion of exports of goods and services;

(c) promotion of investment from domestic and foreign sources;

(d) creation of employment opportunities;

(e) development of infrastructure facilities.

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