A STUDY OF SPECIAL ECONOMIC ZONE IN PUNE CITY A THESIS SUBMITTED TO TILAK MAHARASTHRA VIDYAPEETH, PUNE FOR THE DEGREE OF DOCTOR OF PHILOSOPHY (PH.D.) IN SOCIOLOGY SUBJECT UNDER THE BOARD OF STUDIES MORAL AND SOCIAL SCIENCES BY MR. AMAR MARUTI DHERE UNDER THE GUIDENCE OF DR. DHANARAJ A. PATIL DECEMBER 2012 CERTIFICATE This is to certify that the thesis entitled “A Study of Special Economic Zone in Pune City” is a genuine and bonafied work prepared by Mr. Amar Maruti Dhere under my guidance and direct supervision. The research report has been submitted to Tilak Maharasthra Vidyapeeth, Pune is fulfillment of the award of the Degree of Doctor of Philosophy. To the best of my knowledge and belief, the matter presented in the thesis has not been submitted earlier for award of degree of Doctor of Philosophy of Tilak Maharasthra Vidyapeeth, Pune. Place: Pune Date: Research Guide i DECLARATION I undersigned hereby declare that the thesis entitled “A Study Of Special Economic Zone In Pune City” is a genuine and bonafied work prepared by myself under guidance of Dr. Dhanraj A. Patil and submitted to Tilak Maharasthra Vidyapeeth, Pune for the award of Doctor of Philosophy Degree. The present research work is original and conclusions drawn there in are based on data collected by myself. To the best of my knowledge and belief, the matter presented in this research has not been submitted to any award of nay Degree wither from Tilak Maharasthra Vidyapeeth, Pune or any other institute or academic organsiations. The list of references for secondary data is attached in the bibliography. Place: Pune Mr. Amar Maruti Dhere, Date: Research Student ii ACKNOWLEDGEMENTS Foremost, I would like to express my sincere gratitude to my advisor Dr. Dhanraj A. Patil for the continuous support of my Ph.D. study and research, for his patience, motivation, enthusiasm and immense knowledge. Along with my guide I extend my thanks to Prof. EN Ashok Kumar Director, School of Social Science, Solapur University for his guidance helped me in all the time of research and writing of this thesis. I could not have imagined having a better advisor and mentors for my Ph.D. study. My thanks to Dr. Vishal Jadhav and Dr. Jagannath Karade (former faculties) from Sociology department, Tilak Maharashtra University, Pune for their kind guidance. With these pal I am thankful to Prof. Jaywant B. Ambekar(Yadav), former head Deptt. of Sociology Shivaji University, Kolhapur, and Prof. R.B. Patil, Deptt. of Sociology Shivaji University, Kolhapur and Dr. Gorakh Pondhe, Deptt. of Environmental Science, PVP College, Loni for suggestions and clarifying the doubts. My special thanks to Dr.(Mrs.) Prachee Javadekar, Director, JECS for constant support and encouragement during research work. I indeed to mention my sincere thanks to Prof.Janardan Pawar, Vice Principal (Science) of Indira College of Commerce and Science, Pune, Dr.(Mrs.) Anjali Kalkar, Vice Principal (Commerce) and Mr. Vijay Rajoupadhya Registrar, Indira College of Commerce and Science, Pune for their unfallen encouragement all the time during research work, without their help this work could not completed in time. My personal gratitude to Dr. Vijay Karekar, Former Dean Social Sciences, Dr. S. Karlekar, Dean Moral and Social Sciences and Mrs. Poornima Wate, Head Ph.D. section of Tilak Maharashtra University, Pune for kind cooperation in every stage of work. I am thankful to all the respondents of Magarpatta City SEZ such as Magar, Tupe, Jagtap, Deokar and Bhirat families and particularly to Mr. Satish Magar without their assistance this research work wouldn’t possible. I thanks to my fellows Prof. Balasaheb Nikam, Prof. Jagannath Barkade, Dr. B.S. Salunkhe, Dr. R.J. Katti, Prof. Prakash Malgave, Prof. Aviansh Shingte, Prof. Suresh iv Patahre, Prof. Mahesh Jagtap, Prof. Prashant Kalshetti, Prof. Shivendu Bhusahan, Prof. Santosh kulkarni, Prof. Nandakumar Shinde, Prof. Vijay More, Prof. Prashant Dhake, Prof. Shantilal Ghalme, Prof. Devan Mahajan, Prof. Clifford Disuza, Prof. Santosh Gujar and Mr. Mangesh Kuman for the stimulating discussions, we were working together and for all the fun we have had in the last four years. The thesis would not have come to a successful completion, without the help I received from the non teaching staff of Indira College of Commerce and Science, Pune. Mr. Prathyaksha Janardanan was kind enough to undertake the editing work and I acknowledge his meticulous work. I owe a lot to my parents Mr. Maruti Dhere and Mrs. Usha Dhere, who encouraged and helped me at every stage of my personal and academic life and longed to see this achievement come true. I am very much obliged to my soul mate and dear wife Mrs.Ashwini who supported and gives confidence me in every possible way to see the completion of this work. I glad to my beloved ten month old naughty son Antriksh who always entertain me during course of restructuring of this research work. I thank to my father-in-law Mr. Krishnadeo Ghule and mother-in-law Mrs.Sharda Ghule and their families for great support ever since I came to Solapur through Mangavedha. I am thankful to my guide’s parents Mr. Annarao Patil and Mrs. Mahadevi Patil, I owe them so much for their care and hospitality during Solapur visits. Last but not least, I would like to pay high regards to all teaching and non-teaching staff of Indira College of Commerce and Science, Pune and SNDT University’s SVT College of Home Science, Mumbai. If I have forgotten anyone, I apologize, I also thank my friends (too many to list here but you know who you are!) for providing support and friendship that I needed. v ABSTARCT OF THE THESIS ON A STUDY OF SPECIAL ECONOMIC ZONE IN PUNE CITY THE PROBLEM India embraced economic reforms and started introducing modern liberalization policies, like Free Trade Area, General Agreement on Tariffs and Trade (GATT), Export Processing Zone, Foreign Direct Investments, Special Economic Zone and so on in 1991. This created debates on economic development and societal transformations in India. However, issues related to Special Economic Zone have created collisions. From the economic point of view, it has been claimed that the policy of SEZ will help to create huge domestic and foreign investments in various sectors. This may help to generate employment and economic development through foreign direct investment. However, questions like resettlement and rehabilitation of affected people, regional disparities, social unrest and public resistance, labor rights, deregulation of many laws have raised serious discussions over SEZ policy in the Indian context (See Aggarwal; 2006&2007:4&1, Palit;2008:47, Arunachalam; 2008:3, Bibhu et al; 2008:12). This debate has raised some pertinent questions regarding SEZ, which needs to be explored. The renowned economist (Dr. Amertya Sen) also advocated conducting empirical studies on the pros and cons of SEZs in India (See A. Sen; 2009:2). Since focus of the study is not directly to address any issues like capability approach, proposed by Dr. Amertya Sen. SEZs have created dramatic transformations in both rural and urban parts of India (See Acharya; 2006:4, Chakraborty;2008:1, Mahendra Kumar et al.;2008:7), which needs to be studied carefully. Furthermore, the SEZ projects in India have generally been criticized by not only the political parties, but also by civil society organisations and development communities. The focal opposition of SEZ projects in India is basically related to its formation, functioning, land rights issues and most importantly the one time fixed financial benefit to the land owners that creates question of sustainability. xv Against this background, in the case of Magarpatta City SEZ Pune, one of the unique features is in its formation, where the land rights have been protected and the land owners have come together and formed their own SEZ, which is an entirely innovative and inclusive concept. The unprecedented and rapid pace of growth of Pune has put tremendous stress on urban infrastructure and general living standards. While the last two decades witnessed the boom of real estate in both residential and IT sector , the surrounding dominantly agricultural lands fell prey to the lure of the quick jump, thus selling off parcels of land in a piecemeal manner, that lead to haphazard growth. The natives (original landowners) were also displaced to other fringe areas. The peripheral growth of Pune quickly succumbed to a disjointed and chaotic development, in which, the development authorities were finding it hard to stop it, whereas suburban areas like Magarpatta and Hadapsar grew rapidly. These processes had created an environment and condition for the making of Magarpatta City SEZ - a model case by the native Magar peasant community. However, Magarpatta City SEZ is distinctive because of many reasons such as, it is developed by participatory actions of the native peasant community and the practices like ecology preservation acts as a model of the gated community. This SEZ has evolved as a path finding model for other developmental projects in the era of post modern economic reforms in India. The development community has also appreciated this model (Mehta; 2009:29, Chiaravalli; 2012:19, Balkrishnan;2013:112, Sami Neha;2012:1, Sami Neha;2013:152). For instance, the former President of India Dr. APJ Abdul Kalam during his visit to Magarpatta City SEZ advocated it (See Neeyati Saha; 2009:1). “the successful project of Magarpatta City SEZ to a model project where the interest of peasant has been protected by giving them equity in the project and training their children for participation in the project execution.” Building of Magarpatta City SEZ on the agricultural land with a view of sharing the gains in the appreciation of land values was the peasant's answer to the xvi challenges posed by these developments.