India to 'consult' on zone policy

The industrial zones policy has provoked real anger

The Indian government has said it will "refine" its policy of buying up land for industrial development after recent violence over the controversial plan. See original article

The move comes days after police killed 14 people in West Bengal after protests against government plans to buy up land there to create special economic zones.

Home Minister Shivraj Patil said he would talk to the state government and local groups about possible changes.

Critics say the zones force people off the land and are increasing poverty.

Farmers are also unhappy about the amount of compensation they are being offered for their land in return for its compulsory purchase.

Consultation

Despite last week's violence - the most serious since the Indian Parliament voted to approve the policy in 2005 - ministers said the zones were still a fundamental pillar of their economic strategy.

If the policy has to be refined, there is no difficulty in refining the policy Shivraj Patil, Indian home minister

"We will use force where it is necessary and we will bring about economic development where it is necessary," Mr Patil said.

But he also acknowledged concerns about the policy, which have led the West Bengal government to suspend all proposals for new projects in the state.

"If the policy has to be refined, there is no difficulty in refining the policy in consultation with the state government and with the people, who are involved with this kind of activities.

"Anything that is necessary to do to help the people who are losing the land [and] their industry and to help the people who require employment."

Bloodshed

The fatal shootings took place in Nandigram, a village 75 miles south of Calcutta (Kolkata).

Nandigram is the proposed location of a major chemical facility which would involve 10,000 acres of agricultural land being developed by a private consortium.

The Indian government suspended plans for several zones earlier this year after protests in West Bengal turned violent, resulting in 11 deaths.

The latest bloodshed led to a one-day strike in West Bengal on Friday.

Offering tax breaks to foreign firms to invest in new infrastructure, ministers see zones as a cornerstone of their industrial policy.

More than a dozen such areas have already been completed and a further 150 have been approved.

But the policy has attracted criticism across the political spectrum, with Sonia Gandhi, president of the ruling Congress Party, among those expressing concerns at the speed of its implementation and its impact on the rural economy.