Kakinada Special Economic Zone, AP, India

Description

Government of Andhra Pradesh had taken initiative to promote about 115 Special Economic Zones (SEZs) in the state. Kakinada Special Economic Zone (KSEZ) is among one of these SEZs. It is located about 15 KM North of Kakinada deep water port in East Godavari District of Andhra Pradesh state [1]. The proposed KSE will include industrial cluster of many industries and a deep-water port for importing and exporting petroleum, biotech, agricultural and other products [2].

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Basic Data
NameKakinada Special Economic Zone, AP, India
CountryIndia
ProvinceAndhra Pradesh
SiteKakinada
Accuracy of LocationMEDIUM regional level
Source of Conflict
Type of Conflict (1st level)Industrial and Utilities conflicts
Type of Conflict (2nd level)Land acquisition conflicts
Other
Specific CommoditiesLand
Project Details and Actors
Project DetailsThe port-based multi-product SEZ was conceptualized in 2005. For this purpose about more than 10,500 acres of land has been acquired. The estimated investment in the project is about Rs 40,000 crore for the establishment of industries like oil refineries, power plants, garments and machinery manufacturing units. The goal of Kakinada SEZ is to attract foreign investment [2].

A special purpose vehicle (SPV) has been incorporated to implement the project. KSPL, ONGC and IL&FS and many other companies are the stakeholders in the SPV. The project has got an in-principle approval from the Government of India. The SEZ will have an exclusive Rs 2,000-crore deep-water port for importing and exporting petroleum, biotech, agricultural and other products. The port facility will be used by companies that set up their units in the KSEZ [1]
Project Area (in hectares)4,047
Level of Investment (in USD)6,646,856,995 (40,000 crore)
Type of PopulationRural
Start Date2005
Company Names or State EnterprisesKakinada SEZ Pvt. Ltd from India - India
Oil and Natural Gas Corporation Limited (ONGC) from India - Share holder
Kakinada Sea Ports Limited (KSPL) from India - Share holders
IL&FS Cluster Development Initiative Limited (IL&FS) from India - Share Holders
Relevant government actorsGovernment of India

Government of Andhra Pradesh

The Comptroller and Auditor General of India (CAG)
Environmental justice organisations and other supportersLocal Villagers

Telegu Desham Party (TDP)

Communist Party of India

Toxics Watch Alliance
The Conflict and the Mobilization
Intensity of Conflict (at highest level)HIGH (widespread, mass mobilization, violence, arrests, etc...)
When did the mobilization beginIn REACTION to the implementation (during construction or operation)
Groups MobilizingFarmers
Local ejos
Landless peasants
Local government/political parties
Neighbours/citizens/communities
Forms of MobilizationBlockades
Development of alternative proposals
Involvement of national and international NGOs
Land occupation
Official complaint letters and petitions
Public campaigns
Street protest/marches
Property damage/arson
Strikes
Threats to use arms
Impacts
Environmental ImpactsPotential: Food insecurity (crop damage), Loss of landscape/aesthetic degradation, Deforestation and loss of vegetation cover, Groundwater pollution or depletion
Socio-economic ImpactsVisible: Displacement, Loss of livelihood, Militarization and increased police presence, Violations of human rights, Land dispossession
Potential: Increase in violence and crime, Specific impacts on women, Loss of landscape/sense of place
Outcome
Project StatusProposed (exploration phase)
Pathways for conflict outcome / responseCompensation
Corruption
Criminalization of activists
Repression
Strengthening of participation
Environmental improvements, rehabilitation/restoration of area
Under negotiation
Violent targeting of activists
Land demarcation
Development of AlternativesDifferent political parties including the Telegu Desham Party (TDP) who was in opposition at that time of agitations was strongly against the project. TDP decided to support the farmers’ cause and fight against the forcible acquisition of lands from them in the name of SEZs and industrialization. They promised that If TDP is voted to power they will cancel all illegal land deals and return the cultivable lands to the farmers [1, 2]
Do you consider this as a success?No
Why? Explain briefly.The Controller and Auditor General of India (CAG) had observed that Andhra Pradesh Government is acquiring lands from the farmers but not monitoring the implantations of the projects. Among the 115 projects, only about 37 SEZ's were operational or are in various stage of development [1,2]

Although, the land has been acquired for the SEZ, no major industrial activity has taken place. The land has also been acquired illegally and at very low prices. Farmers are without cultivable lands are finding it difficult to earn their livelihood [1, 4].
Sources and Materials
Legislations

The Special Economic Zones Act, 2005
[click to view]

SEZ Rules incorporating amendments upto July, 2010
[click to view]

Policy Resolution for Promotion of Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs)
[click to view]

References

Documentary "The Walls and the Tiger"
[click to view]

Jamie Cross (2009), From dreams to discontent Educated young men and the politics of work at a Special Economic Zone in Andhra Pradesh Contributions to Indian Sociology 2009 43: 351
[click to view]

Links

[3] About Kakinada SEZ
[click to view]

[1] What is Kakinada SEZ
[click to view]

[2] Kakinada SEZ, storm on the horizon
[click to view]

[4] Anti-special economic zone protest turns violent
[click to view]

Kakinada SEZ
[click to view]

Media Links

Farmers protest against Kakinada SEZ - Tv9 (in Telegu)
[click to view]

Chandrababu supports Kakinada farmers protest against SEZ - Tv9 (in Telegu)
[click to view]

Chandrababu to participate in a dharna in Kakinada in protest against the SEZ (in Telegu)
[click to view]

Other Documents

TDP chief N. Chandrababu Naidu tilling SEZ land in Mulapeta near Kakinada on his birthday Source : http://www.thehindu.com/todays-paper/tp-national/naidu-backs-sezaffected-farmers/article3337853.ece
[click to view]

Meta Information
ContributorSwapan Kumar Patra
Last update15/10/2014
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