Manufacturing sector in Goa stagnant at around 35%: GCCI

PANJIM: Goa Chamber of industry, while underlining that manufacturing is the most important growth engine that "can sustain continued development of any economy" points out that in Goa the growth of manufacturing sector is stagnating at around 35% of the State GDP.

TEAM HERALD
teamherald@herald-goa.com
PANJIM: Goa Chamber of  industry, while underlining that manufacturing is the  most important  growth  engine  that  “can  sustain   continued  development  of any economy” points out that in Goa the  growth  of  manufacturing  sector  is  stagnating  at  around  35%  of  the  State  GDP.
Surprisingly, for a state that  boasts of  being the top small state in the country and topping in various parameters, there have been no new  and  substantial  investments  seen  in  this sector  in  the  last 5 to 7 years. Consequently, no new job opportunities were being  created and educated  Goan  youth  have  to  go  out  of  state  and  the  country  to  find  jobs.   
The investment policy which envisages creation of 50,000 jobs is due to be notified by end of March.
According to Industries minister Mahadev Naik, from 2012 till January 2014, only 9864 jobs were created in the Industrial sector, while 298 workers lost their jobs. 
Also 23 industries closed down, forcing many to question how the government will achieve that employment figure given that in the past so many years it has not managed to move out from its lethargy and done previous little for industrialization even under the urgent incentive of closure of mining.
As of now the industrial policy which is in force was notified in 2003 and is still in force.
A case in point of the lethargy in the industrial scenario is the unutilised or underutilised plots in the industrial estates.
A task force was constituted by the government on August 24, 2010 to identify unutilised or under-utlised plots and based on the report show cause notices were issued to all allottees of plots.
However, as of February 2014, the government says that “as regards the unutilized/underutilised allotted plots, the Goa Industrial Development Corporation is taking measures to revive/repossess the same on a case to case basis. When asked whether the vacant plots have been reversed or yet to be reversed.
Surprisingly, when asked about the present status of the vacant plots the government says that those allottees who have requested some more time have been given an opportunity to commence construction within a period of 6 months and commence production within one year.
However, for industry, things have not changed much despite a lot of noise about development in the state and the GCCI even in this year’s pre budget presentation has said that still availability  of  suitable  plots  is  an  issue and that 
“Though  Government  has  put  in  place  a  Plot  Allotment  Policy, its  implementation  should  be  expedited.”
“Plot  Transfer  and  Sub-leasing  policy  has  also  been  announced  but  it  should  be  implemented  in  the right  earnest.  Many  transfer  and  sub-leasing  applications  are  pending  for  over  24  months,  holding  up  productive  use  of  plots/sheds. All pending applications should be expeditiously cleared.” 
It also wants the government to devise a scheme  similar  to  NPV  to attract  fresh investments, scrap the high powered committee and  a  new  Investment  Promotion Board  be set  up with this  Investment  Promotion Board  being a Single  Window  clearance  agency  which  will  deal  with  all  processes  and  sanctions,  raising questions about the commitment of this government to development and the efficiency of its administration even as it completes two years at the helm of affairs.   
According to Industries minister Mahadev Naik, from 2012 till January 2014, only 9864 jobs were created in the Industrial sector, while 298 workers lost their jobs. Also 23 industries closed down

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