PANJIM: Goa Chamber of Commerce and Industry (GCCI) on Tuesday bust the government’s boast of attracting investment of Rs 14,000 crore when it said that a few mega units in the State are contemplating shutting down, due to an unhealthy environment.
In a major setback to BJP-led government’s dream of making the State an ‘industrial cum investment hub’, GCCI in its pre-budget memorandum slammed the government for the unhealthy environment for industrial growth in the State claiming that in the last couple of years a large number of industrial units have closed down.
GCCI President Narayan Bandekar has placed on record that in the last few years industrial units, including Aminatit, Aparant Steel, Mandovi Pellets, Metastrips, and others have closed down. “We also have feelers from a few large units that their managements are contemplating shutting units in Goa and shifting operations out of the State. This does not augur well for the State,” he said.
“In industry there is already a feeling that the government is not sensitive to its demands and that without any sense of priorities, is indulging in unnecessary capital expenditure, spending funds in broadening and cementing existing roads, constructing bridges and highways without people’s demand,” Bandekar stated.
GCCI said that according to the World Bank’s Ease of Doing Business Survey 2015 Goa is ranked 19th amongst Indian States. “This is also acting as a deterrent to industrial investments in the State,” the GCCI President added.
Stating that despite the industrial sector being the largest contributor of tax and non-tax revenue to the State, GCCI claimed that nothing much has been done to look into the demands and grievances of the sector. The chamber has suggested formation of a task force to assess problems of the industry.
“Three to five member task force under the chairmanship of the chief minister or chief secretary should be set up to assess the problems faced by the existing units in the State and also to check the possibilities of reviving the closed units,” Bandekar demanded.
GCCI said industry in Goa is also highly taxed with a lot of tax distortions and disparities. “In order to provide relief to the manufacturing sector, the State will have to curtail wasteful revenue expenditure, stops non-remunerative capital investment and put in place better management of tax collection,” the chamber demanded.
