PANJIM: The state legislature passed the Goa Investment Policy in 2014 in an attempt to add fizz to an economy that was as dynamic as the Indian football team. Proposals have been whetted and some passed, but have the problems that bedevil the State ie land, water and power, been sorted out
The investment plan had talked of attracting investments to the tune of Rs 25,000 crore and generating 50,000 jobs by providing land to industries interested in setting up base. The now renamed Goa Industrial Development Corporation (Goa IDC), had set up 20 industrial estates across Goa. These estates house around 1620 operating industrial units over a utilized area of around 10 million sqm of land, as one might have guessed is a precious commodity.
LAND
The Government has plans for the expansion of eight existing industrial estates in the talukas of Salcette, Mormugao, Canacona, Pernem, Bardez, Tiswadi, Ponda and Bicholim. The Government proposes to setup new industrial estates in Latambarcem (Bicholim), Carambolim (Tiswadi), Shiroda (Ponda), Sacordem (Dharbandora) and Poinguinim (Canacona). The Government is in the process of acquiring land for these new industrial estates/expansion of existing industrial estates, while working towards releasing the land given to SEZ’s which are currently under litigation.
It is also to be noted that the IPB has already cleared 62 proposals committing investment of Rs 5200 crore, some of which will take over two years to materialise.
Land which is required for these projects remains a very sensitive subject. Numerous community lead protests have erupted on the landscape over a period of time. From the airport to the defence expo there have been protests.
Senior executive and VP of MAIT, Nitin Kunkolienkar said the recent decision by the government to reduce the open space between plants from 15% to 7.5% was welcome. He felt the land that was presently not being used should be taken back but felt it would take time. The IDC, Mr Kunkolienkar felt, should have created a land bank. That he felt was a very important function which was ignored. This resulted in people buying when IDC started awarding land. This was the general behaviour since the feeling was that there would not be any free land available. He went on to say the government was presently deducting 5% as surrender charges when one wanted to return the plot of land. This was a disincentive. An incentive like a removal of this fee would be a win for everyone. The IDC would earn more revenue by selling the plot of land to a new buyer and the existing owner would get some compensation.
He felt the transfer of unutilised plots should be allowed by keeping transfer fee of 50% of the differential premium. This will be a win-win situation for everyone he felt. IDCs norm he felt had to be eased which was presently creating blockages. Subleasing guidelines have to be relaxed. Today IDC charges 6% as subleasing charges which was not fair. He felt it was important to make it fair and open. Plug and play facility has to be created to make life easy.
POWER
Like land, electricity is a very important component. Its absence or even the quality of power can make or break a project. As per the information provided in the policy the Government of Goa will provide 24×7 quality power to the industries. Special emphasis is being laid to minimize unscheduled power interruptions as well as to increase the availability of power to the State.
Currently, Goa has an allocation of approximately 460 MW from NTPC stations, 28 MW from NPCIL. A small quantum of power (approx 47 MU) is procured from co-generation plants in Goa while around 16 MW of power is the allocation from a gas-based IPP in Goa. The private IPP also supplies power linked to around 16 MW of capacity directly to industry. In 2012-13, Goa required approximately 3550 MUs of power. Based on a targeted GSDP growth rate of 12%, the requirement of power is expected to grow by around 5% year-on-year.
To improve the reliability and availability of power, the Government is undertaking several initiatives. A separation of transformers for industrial and domestic use is under implementation.
Now let’s look at the situation on the ground. Blaize Costabir believes that the situation has improved. Costabir said “Before Reliance we suffered frequent power outages but now that is not the case. Now the problem is giving power to new connections. Where is that infrastructure coming up?”
Power he said was available but the quality of power was not as good as Reliance. The government, he said was improving but taking slow steps. In Verna, where he operates several of the companies have made arrangements to ensure they have a continuous supply of electricity. Almost everyone has a generator. During the time when Reliance was supplying power, the companies had no need for UPS, voltage stabilizers though the cost of electricity was exorbitant. Now however all the above mentioned appliances is a necessity in most of the units.
Mr Costabir pointed out that with Chhattisgarh not moving with the coal blocs disbanded, everything was in limbo. New connections, he said were not easy to get and the government had to make plans since there was nothing at present.
Senior officials at a major pharma company based in Verna expressed their frustration at the reluctance of the electricity department to provide details of power outages. The official said “We invariably learn of proposed disruptions in the supply of electricity from the media. We have to plan our activity in case of such eventualities. Till date we have not received any communication.”
The wild fluctuation in voltage at Verna sub-station meant that equipment could blow up.
WATER
Finally water in an important component in the entire mix, it is an important requirement for the pharma industry which has a huge presence in the state.
Goa IDC aims to provide potable water to industries in the industrial estates through a common treatment facility.
The Government of Goa proposes to lay special emphasis on rainwater harvesting by industries, especially those on plateaus, to ensure sustainable development in the state. Rain water harvesting will be mandated for all industries.
The manner in which this matter is being handled can be illustrated by the example of Verna. The industry requires 10 million litres a day but gets 1 million litres. The rest is accessed from private water suppliers who in turn are getting the water from ground water sources. This was resulting in clashes with residents of the local village for treated water. There is no shortage of untreated water which goes back to the sea.
One of the suggestions made is that untreated water be sent to industrial estates and this water be treated by a water treatment plant. The bureaucracy however does work in strange ways. In Verna the GIDC released tenders for treatment of raw water distribution network. However while asking for costing of providing raw water rising main and distribution network, the dept forgot about the distribution network. If one felt such haphazard planning was a one off it came up again when the department released a tender for the construction of pump house for raw water treatment plant and forgot about the pump.
That is in essence the state of affairs in Goa.
