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In defence of security

New Delhi, June 22: The defence ministry wants foreign participation in SEZs in sensitive sectors to be examined carefully.

It is also opposed to projects within a 10km belt along the western and eastern borders of the country.

In a presentation before the parliamentary standing committee on commerce, the ministry said SEZs in the border regions would affect military activities. SEZs within 10-50kms of the border should be cleared after ascertaining the requirements of the military.

The ministry’s proposal, if accepted, will automatically rule out SEZs in many parts of Bengal, which has a long border with Bangladesh.

Infotech zones have also come under the scanner, with the ministry suggesting they be evenly spread out to prevent radar interference and other communication problems. Some 148 of the 237 zones cleared are in infotech.

This is the first time that objections to SEZs have been raised on grounds of security.

So far, the finance ministry and the RBI have expressed concern over the possibility of SEZs being used as tax shelters.

A proposal has also been made for a minimum distance of 10-20 kilometres between SEZs and defence facilities such as airfields, communication installations and ammunition dumps. The bone of contention is over foreign participation in sensitive sectors and investments from countries that are viewed as security threat.

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