It’s easy to have a good time in Goa when you’re on holiday. There’s a red carpet laid out for you from the time you set foot into the state. But, in the case of businesses that wish to set up shop, it’s just the opposite. Goa now ranks 19 across the 29 states of India with regards to the ease of doing business. This is despite the fact that the ruling BJP government has attempted to make things easier for businesses in the state.
In 2014, the state government disclosed the creation of the investment promotion board and an investment policy. This was aimed at speeding up processes and shortening the turnaround time for approvals. In his 2012 budget speech, on coming to power in Goa after two terms of Congress rule, the then Chief Minister Manohar Parrikar stated that a single window system would be implemented for non-polluting industries in an aim to bring more white collar jobs to the state.
But the reality now, three years later, is quite different. There have been measures taken to streamline processes by the BJP government. But that is clearly not enough. In some cases in Goa, companies had to jump through hoops to get water and electrical power.
Goa competes with states like Gujarat, Maharashtra and even Karnataka for both blue collar and white collar jobs. All these states have one thing that Goa does not have “ special economic zones (SEZs). In an SEZ companies are offered a tax holiday and high quality infrastructure. In industrial areas permissions are granted promptly, after speedy checks by pollution control and other regulatory bodies.
Goa has a history of issues with SEZs. The last attempt to start seven zones led to a massive public outcry from 2006 to 2008 and the projects were scrapped. The issue is currently with the Supreme Court. The government needs to iron out the wrinkles here.
Most companies claim that the biggest issue in Goa’s industrial estates is land related approvals. With projects like the SEZs and any other developmental projects in villages across Goa, there is the inevitable protest over the process of land acquisition and pollution control. However, within industrial estates, this should not be the case. Government departments are out of sync, which is another big issue. The need to work in tandem is paramount as is the need for the introduction of technology. Most companies in India are efficiently digitized. It’s only fair that industrial and regulatory bodies follow this path too. Digitisation will certainly reduce the time for approvals by more than half by negating human intervention.
The BJP has worked to make government departments more efficient over the past two years or so. But without technology, efficiency will never be optimum. Without efficiency, the turnaround time for approvals will never be quick. Without all of this, Goa will lose the race against other states, to bring businesses here and help provide jobs for locals. Having SEZs will boost the state’s appeal, but even without them, Goa has the potential to fill up its industrial estates with companies from all verticals, with an emphasis on non-polluting ones. The proposed IT park at Chimbel could turn out to be a flagship project in this regard. But, without streamlining processes and providing great infrastructure, Goa will fall further behind.
