Tuesday, July 14, 2009

Stalin Proposes Solution for Nationality Question

No, not that Stalin -- M.K. Stalin, Deputy Chief Minister of Tamil Nadu and likely successor to the current Chief Minister, Mr Karunanidhi. And the 'Nationality Question' in this case is not what to do with the Ukranians and others, but how to accommodate the specialized infrastructure and other needs of investors from a range of nations. The idea is to build country-specific SEZs for firms from particular nationalities.

Orders have been issued for the development of country-specific industrial parks for Japan, Korea, Finland, Germany and France. Each industrial park will be spread over 100 acres and will be developed by the State Industries Promotion Corp of Tamil Nadu (Sipcot)

This would allow the SEZs to cater to not only the sectoral focus of each country's investors, but also, presumably the requirements for social amenities (schools, shops, etc) tailored to each country's cultural background.

Whether such an approach will be perceived as parcelling out Indian territory to foreign entities, or whether it will meet with less resistance (because the new policy approach is also combined with an effort to ensure that the new SEZs are spread more widely across the state), remains to be seen.

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