Goa Inc has mixed feelings about review of IPB projects

When Chief Minister, Manohar Parrikar said approvals granted by the Investment Promotion Board (IPB) were in principle and not final, it set the proverbial cat amongst the pigeons. The CM made the statement when there was a hue and cry over the Vani Agro Pvt Ltd at Sanguem to which he replied it was on hold. He went on to clarify the IPB did not consider approvals to projects that dealt with building on agriculture or khazan or CRZ land, unless there was necessary clearance under CRZ and that in-principle approvals were granted considering only the investment aspect.

This has caused some consternation and generated much comment in the State’s corporate circles. Some in support, others expressing consternation and then there are those who chose a more nuanced approach. 

Nitin Kunkolienkar, president, MAIT and one who was part of the IPB Board that cleared projects with the earlier CM, Laxmikant Parsekar heading the organisation said “The CM made a categorical statement. 12 projects out of 151 will be reviewed. 90 projects are on track and being completed. Some tourism projects where land conversion was the issue is being referred to consultants for a review of the impact assessment. However there is no obstacle. Only 12 projects will be critically evaluated.”

Mr Kunkolienkar went on to say that 10 parties had backed out and the rest 80-90 were near completion. He felt it was a very good step and it sent out a signal the CM and the IPB were serious in implementing genuine projects. He also said that now the political equations had changed and those who had opposed projects were now in the government and projects like Vani Agro would have to be relooked. Sentiments, he said, had to be respected. Proposals, he said, were approved based on the submission of the promoters. Now since time had lapsed since the proposal was first submitted and the objections raised, this evaluation would give everyone an opportunity to evaluate the changes if any that have been made in the plan.

Mr Kunkolienkar said the IPB from 2012-14 was in a very difficult position. The then CM, Parsekar was very pushy but the bureaucrats were not enthused. They were not motivated and the IPB lacked facilitation from other departments. To add to that the CEO came on board and later fell sick. Except for one person he said internally, there was no proper support to evaluate the projects.

Another businessman who has conducted business in the State for over 25 years said this decision by the CM was a retrograde and regressive step. It was sending out a clear message that investors need not look at Goa and if projects cleared by IPB were stuck then it was poor state of affairs. 

Sandeep Bhandare, President GCCI said investors liked stability and if a certain direction was chosen as the way forward it was important that it be maintained. He however added that a review in itself was not a bad idea. He said “It does not mean that nothing can be reviewed. If there are gross violations then yes an opportunity should be given to people to explain themselves and then course correction should be done but importantly within a time frame.” 

Atreya Sawant, president, CII, Goa Chapter said “industry will be happy about the review of projects as it will help industrialists to sort the issues that are still pending with various departments. This review will help the industry to expedite the process of various permissions which one has to take from various departments as IPB will track the status of approvals which is expected to be time bound.”

A young gun who has been on the business landscape of the State for a few years and who did not want to come on record said the decision by the CM was good but the follow up had to be fast. Decisions, he said, had to be made quickly. He said “Please understand Goa does not stand anywhere in terms of job creation. Nationally we are known as the place to go and relax on the beach and no one thinks of Goa as a place to set up industry. The CM has the drive, I hope things move fast.”

Another businessman who is in the know said it was important that when a decision to hold back a project would be taken it should not reek of political vendetta. The CM‘s credibility he said was at stake. In Goa, he said, tourism was just about the beach. In other places it was about handicrafts, local dance, yoga etc. The Goan tourism industry he said had not tapped even 5% of its potential. Most tourism officials he said were tourists themselves, travelling to different parts of the world enjoying themselves. Speaking of the IPB he said based on his understanding no new projects were cleared in the three meetings with review of projects being the primary goal. Nothing had been approved as yet and the CM had put everything on hold. Reviews and clearance had to be simultaneous and in 7 months not one new project had been considered. People who were speculators had to stopped. The IPB he said had approved projects which did not meet even 1% of the State’s needs. There were larger issues like a complete overhaul of the education system which could produce personnel who could be employed in the State. Otherwise, he said, low paying jobs would only be suitable like baking on working on ships which was also slowly winding down. A sound supply chain infrastructure had to be also in place. 

A very sane sentiment.