New Delhi, Aug. 6: The empowered group of ministers on special economic zones could review some contentious clauses in the policy for such zones at a meeting scheduled tomorrow.

Some of the proposals that may be part of the agenda are relaxing the 5000-hectare ceiling, allowing state governments to acquire some land and imposing a minimum alternate tax on units in the zone.

The empowered group is headed by external affairs minister Pranab Mukherjee.

According to Ajay Nijhawan, convenor of the SEZ Developers Panel, “If the ceiling is increased, some of the developers will benefit. Moreover, state governments should be allowed to partially acquire land for contiguity.”

Nijhawan, who is also the vice-president of Reliance Haryana SEZ Ltd, opposed the move to impose a minimum alternate tax. “The government should not take away the incentives that it has already given. Such a move would hamper the pace of development.”

The meeting comes more than a year after the government imposed the 5000-hectare cap following violent protests at Nandigram and allegations that fertile farm land were being used for SEZs.

The land cap has affected several large projects, including those of Reliance Industries, Omaxe and DLF.

Land acquisition has also got stuck because states have been barred from carrying out compulsory acquisition.

The ministers will discuss whether states can acquire up to 30 per cent of the land in cases where developers have acquired the majority 70 per cent.

“The average market price paid by the developers to acquire the land should be paid by the government to those who are not willing to sell to developers. The SEZs cannot come up without the government stepping in for contiguity,” said Navin M. Raheja, chief managing director, Raheja Developers.

Some developers claim that as many as 90 per cent of SEZs, or 135 zones, with in-principle approval are stuck because of the inability of promoters to acquire land. The Kerala government had even written to the Centre to let it acquire land.

The matter is pending with the empowered group of ministers.

Another vexed issue is a finance ministry proposal to levy a minimum alternate tax (MAT) on units in the zones.

The commerce ministry is opposing the move because it will be a breach of promise made to investors.

“If incentives are withdrawn by the government it will be going back on a commitment, as developers have made huge investments calculating all the reliefs,” Raheja said.