The Centre decided on Monday to give a hearing to the developers of 12 approved Special Economic Zones in Goa, whose government had recommended scrapping of these zones following public protests.

The union government would separately initiate discussions with the Goa government on the fate of three already notified SEZs, said Commerce Secretary G K Pillai, who also heads the board of approval that grants permission for setting up these zones.

He also said that SEZ proposals that had earlier been forwarded by the state but are yet to come before the BoA would be treated as 'withdrawn.'

"(As regards) all the formal and in-principle approval given to SEZs in Goa, the BOA will issue show-cause notices to them (developers) in the light of the recommendation of the state government following the principle of natural justice," the commerce secretary said. 

Show-cause notices would be served to developers of 12 approved SEZs -- those that had received formal and in-principle approval but not notified -- asking why the permission granted to them should not be cancelled, Pillai said.

The Goa government had on December 31 recommended to the Centre for scrapping these zones, following widespread public protests.

Although the Centre had initially maintained that there was no provision in the SEZ Act to denotify these zones, Commerce and Industry Minister Kamal Nath had subsequently said that they could review the Act.

Meanwhile, sources said the Law Ministry has recommended addressing the issue of compensation to SEZ developers in the event of permission being withdrawn. The Centre is expected to also discuss this issue with Goa separately.

India's great rush for SEZs