Aug 10, 2008
Pics: Dayananda Kukkaje
Mangalore Special Economic Zone (MSEZ) is a special purpose vehicle set up to develop a multi product SEZ, the first such project being developed on the coastline of Karnataka. I Srinivas Nagesh Prasad, IAS, is the Managing Director and CEO of Mangalore Special Economic Zone Limited (MSEZL) the Rs. 50,000 crore of investment project. Though controversies never cease to surround this project Prasad is upbeat about the positive aspects of the project and its benefits to this region. In a free-wheeling chat with Daijiworld, Prasad spoke at length about the oft-repeated controversies plaguing this multi product project.
Q. What is the present status of Mangalore SEZ?
About 1800 acres of land is presently in our possession and we have begun basic preparations of providing roads to give access to industries coming within the SEZ. Another 2000 acres of land for the project is under various stages of acquisition.
Q: What are the projects coming up in Mangalore SEZ?
Petrochemical Industries and Down Stream Petrochemical industries such as Polystyrene, Phenol, Linear Alkyl Benzene Propylene Oxide are part of Phase I of the project. The second phase includes Pharmaceuticals, IT/ITES, Textile, Garment and other general industries.
Q: In what way MSEZ project will be helpful to Mangalore?
SEZ project would provide an impetus to economic activity in this region. It would also open up huge employment opportunities for the people apart from providing scope for technical skill development. SEZ would enable optimum utilization of the available resources in addition to improving infrastructure facilities. It would pave the way for the overall development of the region.
Q: SEZ is planed in 3985 acres of land. Does the project actually require so much land?
When we did the land survey we assessed what would be the requirement for setting up a multi product SEZ, with provision for setting up large industries that can generate maximum employment. In addition, in a larger area we will be able to provide additional infrastructure in a decent way without much burden on the existing infrastructure. In the 3985 acres 33% of the land would be earmarked for green belt and another 15% would go for providing common facilities. What is available for processing and non-processing area for actual commercial use will be only about 50% of the land. Within this we have to accommodate both industrial and commercial units.
Q. Will the Project Displaced Families (PDF’s) given priority when it comes to providing jobs?
A. We have a commitment under the R & R Policy to give 1 job per family for PDF’s and we will abide by it. PDF’s have the option of opting for cash compensation or a job though we will be happy to provide jobs. In addition MSEZL is providing intensive training courses to PDF members as we are interested in improving the economic status of the people and substantially upgrading their skills. We are not interested in just paying lip service but are genuinely concerned about the welfare of the displaced people and we are willing to spend liberally in imparting training to them. Instead of training them in short courses we have focused on providing skill developing long term courses like 3 year special engineering course in KPT.
Q. What is going to be the recruitment policy of MSEZL?
We have made it mandatory for all the units coming up in MSEZ to provide priority to PDF’s,, he people of the district and to the people of the state. Individual companies will recruit their employees directly and MSEZL would play a facilitating role by interacting with the various units.

Q: MSEZL says the Rehabilitation and Resettlement (R & R) package it offers is one of the best in the country. Can you substantiate it?
In many R & R packages the PDF’s are given only 1 alternative site but MSEZL gives minimum of 3 sites and sometimes even more depending on the number of members above 18 such as unmarried daughters, widowed daughters or daughter-in-laws, handicapped members etc. We have developed a very comprehensive R & R colony with all amenities like road network, underground drainage system, schools, hospitals, markets, anganwadi, fair price shops etc. We are giving particular importance to relocate places of worship by paying the entire cost of reconstructing and other ceremonial costs also will be borne by us.
No other R & R package provides for such intensive training programmes as planned by MSEZL. 230 students are undergoing training in KPT so far and another 110 have joined for the 3 year course there. We have got in touch with many institutions with regard to the training programme. We have also been very pro-active in working out a package for providing block rates instead of piecemeal approach of calculation for structural and horticultural properties to avoid delay and unnecessary paper work. Moreover the R & R package is evolved only after a continuous dialogue with the members of displaced families.
Q: Why has there been such a lot of hue and cry from environmentalists for the project?
While protecting environment is an important concern which all of us need to share there have been certain negative opinion amongst some of the environmental groups due to lack of understanding of the project. Perhaps being a company with government involvement we have probably not been very successful in handling the issue by making available adequate information in the public domain in the earlier part of the project. This has led to certain misgivings and there has been lot of negative information against the project. To make information available in public domain we are soon planning to launch our website where we will be placing all these issues in public domain.
Q: There are allegations that environment clearance certificate is obtained by bribing officials. Any Comment?
I completely deny these allegations. Environment clearance has been given after studying the project threadbare by the environment committee comprising 12 members. On two occasions committee members visited the SEZ site and interacted with the NGO’s and only after due deliberations and several conditions having been laid down environment clearance was given. Casting aspersions on the integrity of MSEZL is unwanted and uncalled for.
Q: What is going to be the impact on environment by implementing this project?
Essentially with the commissioning of mega projects there would be certain impact on environment in terms of air emissions, water, noise, soil pollution etc. Our efforts are directed to take adequate mitigation measures so that these impacts are within the permissible limits.
Q What steps have been taken to minimize the environmental impact?
A. We have taken adequate care to safeguard the environment by setting aside 33% of the project site for developing green belt. Ministry of Environment and Forests (MoEF) has done a detailed study of the project and before giving clearance they have laid down certain conditions for MSEZL to strictly comply with. We are confident that we will not exceed any of the limits imposed by the Karnataka State Pollution Control Board. We have also ensured that wherever natural gas is available we will be able to convert to clearer fuels which will substantially reduce the emission levels.
Abiding by the issues raised by MoEF and KDPCB we have given up 1000 acres of land where there has been substantial agricultural activity and another 1000 acres of land for CREZ. As per Environment Impact Assessment the emission impact is limited to 15-20 kms of the site. Hence there is no impact on the eco-sensitive Western Ghats which are located about 40 kms from the SEZ site.
Q. It is believed that environmentalists are not per se against the SEZ but fear SEZ may pave the way for the deadly PCPIR project?
A. Going by media report it appears that people are extremely concerned about PCPIR and not as much worried about SEZ. We have assured time and again that in the additional land which is currently under acquisition for MSEZ we have no intention to put propose PCPIR. We have conveyed the feelings of the people and urged the government to reconsider its decision on PCPIR.

Q. Can you elaborate on the MOU reached between MSEZ and Dr Mohan Alva?
A. MSEZ is interested in preserving the environment uniqueness of this region and as part of our efforts to have maximum green area we want to plant as many local plants and trees as possible. We want to conserve important medicinal plants and we have got in touch with Dr Mohan Alva who is exceedingly involved in this activity. We have entered into a MOU by which Dr Alva will lend his expert advice in this regard and our company will bear the cost involved in setting up the herbal garden.
Q. Is it also true that MSEZL has sought the services of Dinesh Nayak Vitla of Sasyashyamala fame?
A. We have requested Dinesh Nayak Vitla to lend his services in setting up a full-fledged bio-diversity garden in the green belt area of MSEZ. Instead of planting any kind of trees we would like to put up local endemic plant species and we have requested Dinesh Nayak advice us in this regard.
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