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    ISAS Working Papers

    Long-term studies on trends and issues in South Asia

    82 : Special Economic Zones in India: New Challenges for Governance and Public Policy

    Amitendu Palit

    12 August 2009

    India's Special Economic Zones (SEZs) have been shrouded by controversies. The most contentious debates have been regarding the acquisition of land for these zones. SEZs have highlighted existing ambiguities in the laws on land acquisition as well as the process for determining compensations. In more recent months, financial viabilities of SEZs have been under the scanner with certain zone developers contemplating exits due to poor economic prospects. The SEZ policy is also inviting criticism for having a myopic vision on urban management and constitutional identities of the zones. The paper examines some of the challenges to public policy and governance produced by SEZs