In January 2012, Siemens announced the start of operationsat two greenfield factories in India with an investment of Rs 200 crores, withequipment similar to their award winning factory in Berlin. The Goa factories would produce products forpower distribution of industries, utilities and power plants. The EnergyAutomation factory will be the first such factory outside Europe and third inthe Siemens World, after Germany and United Kingdom.
They had everything in place and assumed that the minorissue of power supply would be taken care of by the Goa government. For a overa year their files were stuck in the state secretariat.
The CII chairman Anil Kher himself recounts an incident.“Mahindra & Mahindra wanted to start an R&D company here which wouldhave given employment to around 200 youths. For three years the stategovernment sat on the file. Finally they moved out,” Kher said.
So what’s the moral of business in Goa. Companies thatinvest or want to are made to rethink their move or even pull out and others don’t invest because of the climatehere.
Speaking to The Goan Nitin Kuncolienker former president GoaChamber of Commerce and Industry said, “ The industrial policy post VAT wasvery complicated due to which companies moved out of the State. Firstly on theaccount of VAT reduction many of the companies who were supplying to theprincipal companies migrated from the State.”
He also blamed the Industrial Development Corporation formuch of the mess.“The whole IDC needs to be restructured. There is politics andhuge negativity within the organization. IDC is a developmental organizationbut there is no development taking place. The officials are corrupt or theyplay safe as a result everything is at a standstill,” Kuncolienker said.
According to Manguirish Pai Raiker, the present President ofGCCI, the recent investors meet had received good response and many investorshad planned to set shop in Goa. “Now most of them have changed their mind.Chief Minister had given assurance that by September 30 an industrial policywould be in place but till date nothing has happened,” Raiker said.
CII president Kheradds “A major issue in Goa is land which is not available. Even power isanother issue. The state should provide enough land and uninterrupted power toindustries. The industry now does not look for subsidies but for betterinfrastructure,” Kher added.
Currently though they have a far bigger problems. Preventingindustries and capital from moving out and then getting new capital in.
