7.Mamata Banerje What policy she will have now?

The first economic policy statement made by a senior member of the UPA (excluding the PM), was not by Finance Minister Pranab Mukherjee.

It was by his regional ally Mamata Banerjee.

She railed against the Special Economic Zones policy even as she took charge of the Ministry of Railways in Kolkata.

So let's do a quick review of where we stand on SEZs.

The SEZs Act was notified in February, 2006. And while approvals have been granted for 568 SEZ, 315 have been notified. In other words, these are in different stages of operations.

About 2.53 lakh persons extra jobs were created by these SEZs. And Commerce Ministry estimates, that twice as many jobs were created outside the SEZs in ancilliary units.

Exports from the SEZs have increased from Rs 66638 crore in 2007-08 to Rs 90416 crore in 2008-09. This is a growth of 36%.

Now the Commerce Ministry statement says. “These figures establish beyond doubt that the response to the SEZ policy of the Central Government has been overwhelming and the scheme has been able to achieve the envisaged objectives.” (There are more details on the government’s Public Information Bureau site: http://pib.nic.in.)

Ok, so we agree with the figures even if we don’t accept the statement in its entirety. There are serious issues about the way in which the land is being acquired. Not just for SEZs, but also most new industrial projects.

But this does not take away from the fair start of the SEZs. Sure, they can do better, and the government has to fine tune the process.

Do we really need an economic minister to rant against the SEZs?

Would Ms Banerjee like to personally inform the 5 lakh who have found jobs because of the SEZs, that their livelihood is not justified. Even though the Parliament of India okayed the creation of SEZs.

While we celebrate the formation of the UPA government, remember that the Congress carries left leaning allies in its government. And that Congress itself prides itself as a socialist party.

The Congress is a Reluctant Reformer. Not an instinctive one.

Expect more support from the Congress for Mamata's anti-industry, "pro-poor" moves.

This time the Left will be cheering from outside, and not jeering from inside.

Let's hope Dr.Singh is in Control - God Bless INDIA.