New Delhi, January 2
The Centre today asserted that the state governments have no locus standi to denotify Special Economic Zones (SEZs), though they had the option to seek cancellation of those that are in the pipeline.

“There is no provision under law (for states) to recommend de-notification. They have no locus standi to withdraw the notifications to the SEZs,” commerce secretary Gopal Pillai told newspersons here after the Board of Approvals (BoA) gave nod to 24 fresh SEZ proposals.

The commerce secretary’s assertion came a day after the Goa government had announced scrapping all the SEZs in the state following protests by political parties, including the ruling Congress and the opposition BJP.

The Goa government has received applications for setting up 18 SEZs, out of which seven have been given in-principle approvals, while three SEZs have already been notified.

“Except the three notified zones, there should be no problem (of scrapping) about other projects as the Centre would like to honour the sentiments of the state,” Pillai said.

“Duty-free equipment has also started coming in... How will the state government compensate the developers?” Pillai asked and pointed that the developers may even approach the court against the decision of the Goa government.

“Those (SEZs) notified have become legal entities and cannot be de-notified,” Pillai, who also heads the BoA for SEZs, said.

The three SEZs - Cipla’s Meditab Specialities, Peninsula Pharma Research Centre and K Raheja Corp - have acquired land. At Keri, Cipla’s sister concern Meditab Specialities has invested about Rs 500 crore in its pharma SEZ.

Goa Chief Minister Digambar Kamat had on December 31, 2007, said his government would take up the matter with the Centre to de-notify the three SEZs.

There have been protests against SEZs in several states, including West Bengal, Maharashtra and Haryana, but Goa is the first Congress-ruled state to have gone back on the SEZ policy.