The government suspended land clearances for special economic zones (SEZs) last month following clashes between protesting farmers and the police who were sent to clear land for a petrochemical hub in the Marxist ruled eastern West Bengal state.

Fourteen people were killed when police opened fire in Nandigram, a village 120 kilometres (75 miles) south of West Bengal state capital Kolkata.

"We are not stopping any (SEZ) process," Commerce Minister Kamal Nath said.

But following the protests at Nandigram and other proposed SEZ sites, Nath told reporters "no state can compulsorily acquire land from farmers" and said the onus had now shifted onto the developers.

Instead of the government acquiring land, promoters would have to approach landowners and acquire property at commercial rates.

The government said permission would be now be given for 83 SEZs and India's Board of Approvals will consider 162 SEZs which already have initial approval, along with 140 new applications.

Approval would be given to applications where there was no land dispute, the government said. 63 SEZs have already received final clearance.

The SEZ scheme to give foreign firms Chinese-style tax-free enclaves to push industrialisation has met with massive protests from landowners.

Nath also announced a cap of 5,000 hectares (12,350 acres) for SEZs.

The farmers' protests have sparked a debate over whether farmland should be used for industry in India, where some two-thirds of the billion-plus population live off agriculture.