New Delhi, March 17 (PTI): The administrative reforms commission has asked the government to avoid use of prime farmland for special economic zones and reconsider the liberal tax holidays they get.

The commission’s report, submitted to Prime Minister Manmohan Singh, also said there should be a limit to the number of SEZs, with a large zone located preferably in a backward area. “The extremely liberal tax holidays” provided to them “require reconsideration”, it said.

The proportion of the SEZ land permitted for non-processing purposes should also be kept to a minimum and the government should encourage zones that were promoted by farmers, the report added.