Terming as a 'knee-jerk reaction' the decision to cap the size of Special Economic Zones, Mukesh Ambani-promoted Reliance Industries on Wednesday said it would take up the matter of lifting the ceiling of 5,000 hectare with the government.
"The cap on size of SEZ does not exist in any other country. This is one of the vital issues that would be taken up with the government," Anand Jain, who heads Reliance's SEZ group and is chairman of Mumbai SEZ, told PTI.
On April 5, the Empowered Group of Ministers put a cap on size for SEZ to 5,000 hectares after land acquisition in Nandigram, West Bengal turned violent killing 14 persons in police firing.
The government's change in SEZ land policy is 'knee-jerk reaction,' Jain said. The land cap would affect Reliance's plan because its SEZ in Maharashtra is spread over 10,000 hectare in 45 villages with a projected investment of Rs 35,000 crore (Rs 350 billion).
The company's SEZ in Haryana would also be affected by the new rule. Reliance reaffirmed its earlier stand of one job per family and Rs 25 per lakh (Rs 2.5 million) per hectare.
Jain pointed out that agriculture in the proposed area of SEZ was uneconomical. Most cropland was fit to grow low-yield paddy, he said.
Reliance does not plan to approach the court for removal of cap on land acquisition unlike a few SEZ promoters who have threatened legal course.
"This is not a final 'no.' This is a policy that is evolving," Jain said.
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