The Goa government today decided to withdraw its Special Economic Zone (SEZ) policy, reasserting its strong resistance for setting up tax-free industrial enclaves in the state.

"We have decided to withdraw SEZ policy 2006," Goa Chief Minister Digamber Kamat told reporters after the state cabinet meeting this evening.

The Chief Minister said that the state has always reiterated their anti-SEZ stand as they were opposed by the public at large.

He said that the state has not given any thought for compensating the SEZ developers although the money paid by them in purchasing land would be reimbursed to them.

The state government had notified SEZ rules 2006 on February 10, 2006 allowing the setting up of SEZs in the public, private, joint sector or by the state governments.

The policy had said that these SEZs were to be deemed foreign territory for tariff and trade operations.

The concept of SEZ is expected to bring large dividends to the state in terms of economic and industrial development and the generation of new employment opportunities.

The SEZs are expected to be engines for economic growth, it had added.