PANJIM: He has been in the civil contracting space for the last ten years. Santosh Savio George, proprietor of Mother Mary Constructions spoke to the Herald about the construction business and the problems faced by it. Excerpts of the interview.
HERALD: How did you get into the construction space?
SANTOSH SAVIO GEORGE: Well, my father has been a contractor for the Public Works Department, Government of Goa for over 40 years under the banner of C K George & Sons. In 2004, when I decided to get into business he supported me in branching out into the construction space in the open market. I started with a single JCB excavator.
HERALD: How has the journey been so far?
SSG: The initial couple of years were tough as I was new in the field, but gradually it got better. The demand then for earthmoving machinery in the open market was good. The period from 2007 to 2011 was the best years for construction in Goa. It dream run however came to an abrupt end when in 2011 the mining ban came into effect. All idle machinery from the mining sector entered the open market at ridiculously low rates and my business dropped more than 60 per cent.
HERALD: You had all the equipment. Did you consider entering the mining industry?
SSG: In 2004, the mining industry was already saturated with contractors supplying machinery and trucks. On the other hand, the open market was just opening up and had just a handful of players. So I decided to carve a niche in the open market.
HERALD: So, how are you sustaining post 2011?
SSG: The situation is quite bad. Since the ban on mining, the money from the system has dried up. The state economy is in a very bad shape. To make matters worse, tourism, the other major industry in Goa has also experienced a drastic drop this year. All this has had an adverse impact on the construction business. Some builders are stuck with unsold inventory others are reluctant in taking up new ones. So the work to the likes of us has reduced by a great deal.
The costs for us however remain the same. My outgoing in salaries for drivers and operators is about Rs 2 lakh a month. Loan outgoing is another Rs 2 lakh a month. The situation for me personally is not so bad as my relationship with builders over the years has been strong. I also take up road construction work in gated complexes including hot mixing and this helps me tide over. But still I have to be bailed out by my parent company from time to time during slack months.
HERALD: How long do you think it will take for a turnaround in the economy of the State?
SSG: I think the lull will continue for at least another year. I expect situation to improve in two years.
HERALD: What can the government do to improve the situation for the industry?
SSG: The government should restart mining on a priority basis; make greater effort at improving number and quality of tourists; simplify procedures for doing business and introduce single window clearance in a time bound manner.
