Industry going, going, gone? (Herald)

Industry going, going, gone? July 20, 2013 GLENN COSTA PANJIM: There have been no proposals to set up large-scale industries in the state for 2013-14 till date and Goa has seen only two new large-scale industries (investment of Rs 10 crore and more) being approved in the year 2012-13, official figures show. Large-scale industries are the employment generators and with the expansion scenario not being too rosy either, the industrial scenario is bleak, industrialists complain and officials admit. The feeling is things have come to a standstill on the industrial front. Lack of suitable land is the main problem, say industrialists, a complaint echoed by officials in the state even as they point out that huge chunks of land are blocked in the SEZ (special economic zone) imbroglio. Industrialists also point to erratic power supply, lack of water and other infrastructure that the state ~ though a very small one by standards of other states like Gujarat and Maharashtra ~ faces. At the policy level, the lethargy is evident as everything is moving along at a leisurely pace even though the government is making claims about the huge numbers that are unemployed due to mining ban. Though the state government via a notification decided to review and restructure the existing Goa Industrial Policy-2003 and has constituted a task force committee (TFC) to formulate the draft of the New Industrial/Investment Policy-2013, the committee is to hold deliberations with various stakeholders. It was supposed to submit a draft policy within a month from the date of notification, which was March 25, 2013. The policy is still not out and work on the draft is “in progress”, Herald was told upon inquiry. Electricity Department officials, on condition of anonymity, admit that there is a shortfall in electricity, especially during peak hours, as residential usage increases between 7 pm and 10 pm. According to officials, around 65 per cent of power that comes to the state is used by industry, which is less than the actual industrial need. However, industry manages despite power shortfall through the better part of the day but faces definite power shortage challenges during domestic peak usage hours viz in the evening. There is also the problem with power supply being erratic and fluctuating, forcing many large industries to use generators for hours together, increasing the cost of production by quite a bit. Water too is a problem though the government claims to be in a position to increase water to at least the Verna Industrial Estate in the immediate future. “When a person makes an investment, he looks at profitability. Goa has no raw materials. It is a value addition destination. I need some incentives or waiver of entry tax. Give me some benefits,” says Mangurish Pai Raiker, immediate past president, Goa Chamber of Commerce and Industry, admitting that there have been no industries coming into Goa for the past couple of years. “The problem most industries face is with power supply. Additionally there is no proper water supply. Roads are a mess and there is no proper garbage collection in the Verna industrial estate,” alleges Surendra Furtado, small-scale industrialist and politician. Pai Raikar also agrees on the infrastructure point though he puts the prime reason for industries not coming to Goa on lack of land and infrastructure. “There is no suitable land. Infrastructure is not in order. Power, water are not in order,” he says, adding that in case the scenario does not change then technically qualified students will have to leave the state for employment. Industries Department general manager, Srinet Kotwale, admits that there is truth in this observation. “We will incorporate all suggestions in the new industrial policy to try and solve problems,” says Kotwale, trying to make the point that the government is serious about improving the present dismal scene. “There are no incentives that will attract new industries to the State. The government has announced so many schemes, but these take forever to actually reach the businessmen,” complains another industrialist. http://www.heraldgoa.in/News/Main%20Page%20News/Industry-going-going-gone/77156.html