The seven business proposals cleared by the Industrial Promotion Board (IPB) are expected to bring in investment worth Rs 464 crore and create about 929 jobs. The companies to be set up are diverse and include brewing, tourism, pharma and IT. Of these, the largest chunk of investment will come from Cipla, which already has a huge presence in the state. The company proposes to invest Rs 345 crore and create 249 jobs. Himachal Futuristic Communications will invest Rs 39 crore and create about 400 jobs. Cipla already has four pharma units in the state which employ around 4,300 people. It now proposed to increase its footprint. In June the board had cleared six proposals with an investment of Rs 979 crore and a job potential of 1,661.
The green signal given by the IPB is something to cheer about, but the real party will begin when all related clearances are obtained, land is allocated and production begins. In this respect the IPB is a recommendatory body and does not act as a single window for clearance. The board plays an active role in ensuring that the company gets all the clearances, but the final go-ahead is still dependent on other departments which have to act in tandem to put industrial growth on a steady path. The board has also recommended changes in labour laws to allow women to work on the night shift, but there were few takers for it on account of transport costs.
Although industrial growth has been moving at a steady pace, there are areas which need more attention like the information technology and electronic manufacturing sectors. Chief Minister Laxmikant Parsekar has made establishment of the electronic manufacturing cluster at Tuem and IT park at Chimbel a top priority for his government because these sectors produce high value goods and services which would widen the tax base and bring value to the State. Goa already has an IT policy in place and has announced concessions for units willing to set up base in Tuem. There is opposition to both these projects which will have to be resolved.
Although industrial growth in the State has been progressing at a stead pace, the aim of drawing big players in the IT sector is yet to be realised. This failure has prompted many to label Goa as the State that missed the IT bus. However, despite this tag, home-grown units (about 200) have started making a mark and the demand from those in the sector is for a review of the policy to include smaller units.
Another unfinished business is special economic zones. About 38 lakh sq meters of land is lying unutilised as it is locked in litigation. The High Court of Bombay at Goa had endorsed cancellation of allotment of land to seven promoters, but the matter is pending before the Supreme Court. SEZs are history in the State but until the matter is cleared by the apex court the land is useless. The State needs to act on all fronts to remain ahead of the growth curve and diversify to prevent shocks like the ban on mining from derailing the economy.
