The IT policy will be another addition to the Goa government’s series of policies, which it hopes will under line its commitment to growth, investments and jobs. The IT policy, which will be launched today, – a copy of which is with the Herald- is high on intent and purpose, aiming to convert Goa into a high-end animation, Comics and visual effects hub.
The broad picture intent is probably right since there needs to be a forward push towards creating new investment and revenue streams for the government away from mining and tourism, traditional cash cows which are fast on the verge of becoming non-performing assets. However the policy has to be judged not on the extent of the sops offered to investors, but on two key parameters. a) Whether policy is backed by performance in terms of availability of land and power b) the kind of opportunities animation, comics, gaming and visual effects, will offer Goan youth passing out Goa’s colleges, none of whom offer specialized courses to feed this sector.
The aim of every policy in the industrial space has been job creation coupled with investments that companies will bring in. Even if we forget the poor tryst Goa has had with investments, if one looks at the fiasco in the investments in the proposed Special Economic Zones, Goa has to capitalise on the policy by assuring land, power and clearances. The Investment Promotion Board will need to play the lead role in transforming policy to action. The policy states that a Electronic Manufacturing Cluster will be set up in Tuem in Pernem and an IT Park in Chimbel. There needs to be clarity on where the AVGC (Animation, Visual Effects, Gaming and Comics) hub will be set up. Even if that is sorted, the government has to build peripheral and life style infrastructure around this hub. After all companies will be moving in here with highly trained and qualified staff who will need housing, schooling and other logistics. But coming to the core issues, smooth transport links, uninterrupted high quality power and hassle free high speed internet services will have to be delivered and not just promised. Therefore, a hub needs to be created where infrastructure and facilities become shared resources.
The reason why some of these points are being repeated is because the same issues are being raised about the Investment policy. While the Investment Promotion Board is gung ho, the Industries Minister himself has expressed doubt about the real availability of land. The IPB then quickly jumped in –albeit unofficially- saying that minister’s information wasn’t correct. The minister’s statement has still not been challenged, denied or withdrawn. These issues may appear too tiny but go a long way in affecting decisions of investors. On the journey from policy to performance, a negative perception is a deal breaker.
Finally and most importantly, the government must ask itself what its priority is between bringing in investments and creating jobs. While there is no harm in aiming for both, the Goa government has made job creation its main credo. It therefore has to answer how Goan youth will be absorbed in the highly specialized AVGC sector. The sop given of a 10% reimbursement of the salary paid to local employees will hardly be a trigger for specialised companies to recruit Goan staff. The clients of most of these companies will be outside Goa and overseas and there be a very high premium on quality and skills. Goan youth will have to compete on merit and will get no preferential treatment because a gaming hub is in their back yard. The answer lies in equipping Goan youth with skill sets to compete and get jobs on the merit of their skills and not because they live in Goa. There can be a quota for a section of employees who will not need technical skills but be support staff. But those jobs are not paying and a majority of Goan youth do not undertake those jobs.
The reimbursement of stamp duty on lease of land and/or office, CST and entry tax are good sops and so is the reimbursement on payment of electricity duty. However these sops will not be the first drivers. The first drivers will be basic existing infrastructure in and outside the hubs and the speed of delivery of such infrastructure. And as far as jobs are concerned, merit based on training and facilities provided, will alone secure jobs. And while unveiling its IT policy today, the Goa Chief minister should be pragmatic enough to understand that companies are not going to spend hundreds of crores, to be tied down to recruiting locals. Goa needs to offer world class facilities for education and training for this youth to be worthy of being absorbed in AVGC companies. Clearly, this lovely world of animation, games and comics, is serious business.
