The ‘guardian’ of the 22 industrial estates in Goa, the Goa Industrial Development Corporation (GIDC) is now facing the heat as many industrial estates are up in arms against the recent hike in land lease and water tariff.
Industry is calling GIDC’s move ‘Illegal and arbitrary with no timeline’ and are now contemplating to take GIDC to court.
Many industrialists said that in the first week of April, GIDC changed the rates without consulting anyone and the lease rates were fixed at Rs 8 up to 2000 square meters and Rs 8 up to 2000 sqm and then Rs 16 for the plot from 2001 to 5000 sqm and from 5001 to 10,000 it was Rs 24 per sqm and 10001 and above Rs 32 per sqm. In many cases in the legal agreement the lease rent is fixed for 30 years or 99 years.
Speaking to the Herald the president of the Thivim Industrial Estate, S P Vernekar said, “Close-by Maharashtra in order to encourage industries are charging a mere Re 1 per square meter while we pay Rs 8. There is no ease of doing business. It is in fact very disheartening and discouraging for the industry as a whole. The shed in our leased land which we use to store our raw materials or finished products, are not being allowed to be used as a storage space. Where do we keep our product?”
Mr Vernekar added that, “We have been asked by the Goa government to encourage employment of Goans and that we are doing, but where is the business? We hardly get any help from government as far as our marketing is concerned. We pay House Tax and Infrastructure Tax but there is hardly any development in our industrial estate. Even the roads and electricity are not maintained well.”
Damodar Kochkar, president of the Verna Industry Association said, “They (GIDC) are also charging us house tax and infrastructure tax. Where is that money going? Why is there no maintenance if House Tax is being charged? We have been asked not to draw power on certain days and time why can they not do it with Murmagao and other areas where there are hotels and ports? Why only us? We are seriously contemplating of taking help of the court as the there is no ease of doing business. We have to run from electricity department to PWD to other departments.”
President of the Kundaim Industrial Estate Industries Association, Kiran Shirsat said, “Kundaim Industrial Estate is facing a major problem of ownership of land lease renewal as the land belongs to the government and it has been leased out to the GIDC for thirty years, which has lapsed since 2014. The renewal of the lease has not seen the light of the day. All industry, about 450 units, set up in this 12 lakh square meter area are now in limbo as they themselves as sub lease has legally ceased to hold land. The problem will start germinating soon as this land is not regularised as the due date of renewal is already over.”
Mr Shirsat added that, “Before charging the new lease rent, I feel that GIDC should first regularise the land in Kundaim Industrial Estate. We are being charged House Tax and Infrastructure Tax but we hardly get to see any development work done here.”
The president of the Goa State Industries Association, Raj Kumar Kamat said, “Since the lease rents are utilised for maintenance and upkeep of industrial estates there should be a proper system for judicious use of these funds in collaboration with the industrial estates. Unlike land prices maintenance costs can be better defined and therefore the lease rents should be defined on per square meter basis for long term and not on ad hoc or arbitrary basis.”
According to several presidents of the various industrial estates, several letters have been written to the government and GIDC asking for solutions but there were no response.
