This may well just be coincidence, but none of the six states to have passed SEZ Acts are in South India. They are Haryana, Gujarat, West Bengal, Maharashtra, Madhya Pradesh, and (just recently, in August 2009) Punjab. Here we have east, north, central, west, just not south. Any reason? It is especially puzzling because the states listed above are for the most part better-off or at least more industrialized states (with the exception of MP), and so are the South Indian states. One would not ordinarily expect the southern States to be fall into a category with (implying shared behaviour with) the likes of Orissa, Bihar, Rajasthan, Chhatisgarh, Jharkhand, and the always imperiled northeastern states. How many non-Southern states will have to pass SEZ Acts before it becomes statistically anomalous that the generally reform oriented states of Karnataka, Tamil Nadu and Andhra Pradesh have not taken legislative action?
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This is an interesting point, that suggests (1) that there may be common governance patterns among South India's states, and (2) that the presence or absence of an SEZ law has very little to do with the actual number of SEZ projects in the state! This line of reflection is worth pursuing ... maybe those studying the South Indian states would like to comment ??
Tamil Nadu has passed an SEZ Act, which was delayed because of differences between centre and state on the powers of the Development Commissioner. Maharashtra's draft SEZ Act, apparently, has been delayed because of differences with the party/government at the centre and the state government over its labour related provisions. Some have suggested that this may also be the case with a proposed AP SEZ act. Karnataka has opted for the more 'flexible' policy over the more 'binding' law. Why Kerala has a policy and not a law is something to find out.
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