Industrial estate expansion land lies idle for six years, yields no jobs
PANAJI
A Comptroller and Auditor General (CAG) has flagged a major lapse in land acquisition and industrial planning by the Goa government, pointing out that land acquired at a cost of Rs 70.45 crore for the expansion of Shiroda Industrial Estate has remained idle for nearly six years (till 2023), resulting in no industrial development or employment generation.
As per the CAG report ended March 2023, tabled in the House, the Goa Industrial Development Corporation (GIDC) had initially proposed in May 2013 the acquisition of 1,87,825 square metres of land at Shiroda village, for Phase-II expansion of the industrial estate, citing inadequate space to meet the demand from entrepreneurs. The Directorate of Industries, Trade and Commerce (DITC) processed the proposal, obtained approvals, and the Industries Department requested the Collector, North Goa, to initiate acquisition.
The Land Acquisition Officer (LAO) declared the award in October 2015, fixing compensation at an exceptionally high Rs 70.45 crore. Of the total land, 1,79,939.61 sqm belonged to M/s Vedant Real Estate Developers, while the remaining 7,885.39 sqm was owned by 11 other parties.
However, after the award, GIDC raised a red flag in September 2016, warning the government that the high compensation would translate into unaffordable land premiums, making the plots unattractive to entrepreneurs. “GIDC raised a red-flag with the government regarding the high rate of compensation fixed by the LAO stating that it would result in a high premium for the land and would likely be beyond the reach of the entrepreneurs. Therefore, based on the request of GIDC, the DITC sought government approval to drop the land acquisition proposal,” CAG observed.
CAG observed that the industries department even approved invoking Section 48 of the Land Acquisition Act, 1894, to withdraw from the acquisition, and the matter was placed before the Cabinet in July 2017 to de-notify the land.
However, CAG observed that the proposal was withdrawn by the revenue department, which instead sought a financial impact analysis. GIDC subsequently informed the government in November 2017 that if the land was developed at the awarded cost, the premium would be around Rs 10,530 per sqm – nearly five times higher than the prevailing highest premium of Rs 2,310 per sqm at Verna Industrial Estate-and warned that there would be “no takers” for plots at Shiroda.
Ignoring repeated objections from both GIDC and DITC, the government approved the acquisition in February 2018. Possession of the land was handed over to GIDC in August 2018. “Thus, the acquisition of land for industrial purposes with an exorbitant higher premium of Rs 70.45 crore, despite the reluctance expressed by both the GIDC and the DITC resulted in the idling of the land for the last six years defeating the purpose of land acquisitions,” CAG noted.
While confirming the facts in January 2024, DITC stated that GIDC had sought directions in October 2023 for utilisation of the land, which were forwarded to the industries department in November 2023. CAG said that as of January 2025, the government has not issued any clear directions.
