New Delhi, July 6: A parliamentary committee has sought an immediate freeze on fresh clearances of special economic zones till the law is changed to protect farmers and other stakeholders.

“No further special economic zones should be notified till the SEZ act and rules have been amended to meet public concerns,” the committee said in its report submitted to Rajya Sabha chairman Bhairon Singh Shekhawat.

The committee headed by Murli Manohar Joshi said undue haste in approving SEZs had contributed to the resistance against the policy.

“There is a need to understand the cause of farmers’ agitation and grievance,” the report said.

Instead of setting a minimum area for an SEZ, it has suggested a maximum area of 2,000 hectares for multi-product SEZs. Joshi also warned if cultivable land was indiscriminately given to SEZs, the country would plunge into a famine-like situation.

“There should preferably be a ban on the use of irrigated double-crop land for setting up SEZs. Waste and barren land should be used,” said Joshi, adding that the directions should be incorporated in the act.

The report also sets limits on the amount of cultivable land that can form a percentage of the special economic zone.

It has also suggested that suitable rules or legislation may be brought to unlock and recycle the land held by some 1,254 sick private sector companies, 31 central PSUs and 41 state PSUs.

The committee also lodged a strong protest against local administration for not allowing members of parliament to meet affected farmers.

A sub-committee visited Jhajjar in Haryana, Hyderabad, Bangalore, Jamnagar and Mumbai to meet farmers. “The committee are pained to note that at some places, the farmers were not allowed to meet MPs.”

Joshi said the government is bound to respond in the form of action taken report in three months. “We will not let the issue rest unless the government satisfies us,” said Joshi.

While the standing committee was examining the entire gamut of issues surrounding SEZs, the government went ahead and has by now sanctioned over 500 zones.

Committee suggested that the land should be taken from farmers on lease so that they not only get lump-sum payment but periodic rentals for sustenance.

Moreover, state governments should set the benchmark price for land and farmers should be paid above that rate. Besides National Relief and Rehabilitation Act and Land Acquisition Act of 1894 should be replaced.

”If the land is on lease, it would revert to the lessor in case SEZ fails or is dissolved for any reason. At least one member of the landowner family should be given employment in SEZ venture,” the standing committee said.

To prevent misuse of land for real estate, at least 50 per cent area should be used for processing activities.

The committee has also recommended that the government's board of approvals for SEZs should not grant any 'in-principle' approvals. Instead applications should be considered only after they had been cleared by state governments.

So far, the board of approval has formally approved 341 SEZ proposals, 170 in-principle and notified 128.