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GCCI against real
estate in SEZ
Vasudev Pagi
20 November 2007
The Goa Chamber of Commerce and Industry has vehemently opposed
real estate development in the Special Economic Zone, while
demanding review of the SEZ policy of the state government.
Nitin Kunkolienkar, the GCCI president, has also demanded
that all the ongoing SEZ works in the government's IDC land
be put on hold till the Task Force on regional plan submits
its report.
The GCCI, the premier body of the industrialists of Goa,
had a brainstorming session on the SEZ recently and has now
released a detailed document on the issue.
The meeting, while welcoming the ministerial sub-committee
to review the SEZ policy, has however demanded a review committee,
which will hear all the cross sections of the society.
The GCCI has also announced its plan to hold a workshop on
the issue, involving all the stakeholders as well as NGOs,
to arrive at a logical conclusion.
The document released by the GCCI stated that following views
emerged at the meeting:
- GCCI as the apex body of trade and industry in Goa is committed
to the economic development of the State and welfare of its
citizens.
- The Chamber's thrust has always been on the economic development
of the State which would bring in prosperity, inclusive growth
and enhance the quality of life of the citizens in the State.
- The Chamber has always believed that; a) The Economic Development
should precede growth and b) The thrust of the State should
be on economic activity rather than mere financial activity.
- GCCI has advocated the economic development in the State
in a sustainable manner within the framework of available
infrastructure, protecting the environment and providing gainful
employment to the available skill sets within the State.
- It may be noted that Goa has failed to attract any major
industrial investment in the last 4 to 5 years. This failure
can be attributed to the end of tax holiday regime which coincided
with the most attractive package of incentives given to North
Eastern States like Himachal Pradesh, Uttaranchal and Jammu
& Kashmir. This has not only resulted in depriving the
State of any new investment but there was also flight of capital
from Goa to these States. Thus Goa lost on opportunities and
the pace of industrial development compared to other states
like Gujarat, Karnataka & Andhra Pradesh was very poor.
These states are very aggressively campaigning for investments.
- As per the Economic Survey of Goa 2006 - 2007, the population
in the State in the age group between 10 - 20 is 2,45,000
who have / will enter the job market in next few years. Presently
there are already 1,00,000 unemployed youth in the State,
hence there will be 2,35,000 youth for whom jobs will have
to be created and they will require employment or carrier
opportunities.The Government on its own will not be in a position
to provide employment to these youths. Hence these youths
have no alternative but to look for jobs and carrier opportunities
outside the State of Goa. Chamber is deeply concerned about
this issue.
- GCCI is of the view that only planned industrial development
can generate well paid jobs for the Goans. Under the circumstances,
the Chamber felt that one of the possible ways to attract
good investments for growth of industrial sector and address
the issue of unemployment in Goa was through properly developed
and industry specific SEZs.
- It should be noted that relevant information and the Project
Reports on the proposed SEZs are not made available to the
Chamber till date inspite of repeated follow up.. From the
very few details which were made available three days back,
it appears that a proper impact assessment needs to be undertaken
before approvals are granted by the Government.
- GCCI is of the view that the State should have a cautious
approach while developing the SEZs in Goa, exercising the
following precautions
a. Given the limited availability of land, SEZs should be
only industry specific.
b. The industries allowed to be set up should be environment
friendly.
c. The industries should employ locally available skill sets
so that the Goans get maximum employment opportunities.
d. The SEZs should not put additional pressure on the already
strained local infrastructure like water, power, roads etc.
e. The total number of SEZs should be restricted after studying
aspects of employment opportunities vis-à-vis stress
on the social infrastructure.
f. Land provided for SEZs if not developed within the time
frame should revert back to the Government.
g. The chamber does not support commercial real estate development
in the Non processing area of the SEZ.
10. The Chamber would like to clarify that it was not consulted
by the Government while formulating the State SEZ Policy.
11. The Chamber also recommends that all the SEZs coming up
in the area made available by Goa IDC be put on hold until
the Task Force gives its assessment regarding the impact on
the existing infrastructure in the State, its ecology, its
demography, its socio-cultural heritage and economic growth.
12. In August, 2006 the Chamber had prepared a infrastructure
report on Goa detailing the infrastructural requirements of
the State. We recommend that the Government urgently address
the infrastructural deficiencies faced by the existing industries
in Goa before any approvals for SEZs are accorded.
13. The Chamber apprehends that without a sound policy, the
SEZ route may be used by some unscrupulous parties to create
land banks for speculative purposes, thereby depriving genuine
Goan entrepreneurs land for establishing or expanding their
industrial units.
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