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Special Economic Zone

&

Land Pooling/Acquiring

CASE STUDYCASE STUDY

Chandika P. Bhatta, PhD

Executive Director

Special Economic Zone Authority

CASE STUDYCASE STUDY

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Brief About Special Economic Zone Authority (SEZA)

1. Ministry: Ministry of Industry

2. Project establishment: 2060 BS

3. Development Committee: 2069 BS ]

4. Special Economic Zone Authority: 2073 BS

5. Objectives:

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• Prepare legal documents about SEZ

• Study, investigate about SEZ

• SEZ construction, operation and management

6. Management:

• SEZ board under the chairmanship of Secretary

of MOI and other 16 members

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Special Economic Zone Authority - Head Office

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Concept of SEZ

SEZ

Specially designed modern industrial zone

Excellent services/facilities:-

• one stop services

• financial benefits

•facilities (Banking, insurance, courier, post office,

security, hospital, recreation, sports, fire stations etc.)

• special Labor law

world class infrastructures:-

• Standard plots for indsutry

•road networks

• electricity

• Water supply

• ETP, drainage system

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Procedure of SEZ establishment

Declare SEZ

Area identification

Pre-feasibility study

(Availability of land, excess roadExport route, utilities

etc.)

NoDrop project

Land acquisition (pooling??)

Yes

Feasibility study

(Technical, Financial,

environment etc.)

Yes

Drop project

SEZ construction/ operation

Yes

No

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Location of SEZ in Nepal

Land pooling completed

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Site of Bhairahawa SEZ

Total Area: 52 Bigha

Privately owned land pooling

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8Main Entrance

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Administrative & Service Building

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Block-A

Block-B

Block-D

Simara SEZ (GPZ)

• Total area - 843 Bigha

• Belongs to Birgunj Sugar Mill

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Block-C

Block-D

Block-E

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Site Location of Panchkhal SEZ

• Location:- Panchkhal

Municipality

• Land area :- 50 ha

• Ownership: Community • Ownership: Community

forest

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SEZ in Other Location• Land pooling – As yet

to be done

• Issues:

i. Lack of budget

ii. Less priority of

Government

iii. High land price

iv. Difficult

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iv. Difficult

procedure for

ownership

transfer

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Land pooling of Govt. land

• Lack of coordination among ministries & departments

• Delay response from concerned Departments

• If the land belongs to ministry of forest land conservation, problem of acquisiton and deforestation

Major Problems in Land pooling

• Difficult to trace the boundaries

• Encroachment of Govt. land and difficult to solve it

• Case in court about the encroachment

• Problem from squatter

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Land Pooling of Private Land• No clear methods to fix the price of the land (personal

discretion power)

• Expect high price from land owner than the prevailing rate

• Reluctance of the owner to accept the set compensationwithin stipulated time

Major Problems in Land pooling

within stipulated time

• Bhairahawa SEZ is almost completed but still compensationwork is remained

• The actual price of land is much higher than the Govt. ratefixed by land registration office, which creates problem innegotiation

• Delayed in the compensation distribution

• Resettlement of the land owner

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Land pooling would be effective if there is

• Only one authority for land pooling

• Better coordination

• set procedures for land pooling system

• Strong administration for compensation distribution

Better Land Pooling System

distribution

• Clear concept to fix the land price

• Some additional benefit for the affected people

• Timely distribution of compensation

• Resettlement policy

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wGojfb Û

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wGojfb ÛTHANK YOU!