Scrapyard owners warm up to relocation plan

MAPUSA
In what could come as a boost to the government’s proposed plan to relocate scrapyards to designated Industrial Development Corporation (IDC) areas, scrapyard owners in North Goa have expressed willingness to shift, viewing the move as an opportunity to secure much-needed land and bring greater legitimacy to their businesses.
For a State where land is scarce and finding suitable space to store and sort scrap has become an increasingly difficult proposition, the proposed relocation appears to have found favour among smaller operators.
However, while the idea has received a positive response, questions remain over the availability of adequate land, rental costs and the infrastructure that the government will provide at the proposed sites.
“It’s a good idea. We are ready to shift to the space provided by the government. It will be good for us,” said Siraj Siddiqui, a scrapyard owner operating from Karaswada.
Opportunity to formalise, expand
Pointing to the difficulty of finding land in Goa, Siddiqui said the government's proposal could address one of the biggest challenges faced by scrapyard operators. He said he had been keen to expand his business, but the lack of adequate space had prevented him from doing so.
Siddiqui also admitted that he had been operating his business informally without a licence. However, he pointed out that he possessed a GST registration and filed his annual income tax returns.
For Khaar Sharif, who operates a scrapyard at Peddem, the relocation proposal offers an opportunity to bring an otherwise largely unregulated sector under a formal system. “We are aware that there are many scrapyards which are operating illegally and have not registered with the government. Once the scrapyards are identified and shifted to a particular IDC area, the scrapyard owner will be forced to register his business,” Sharif said.
Sharif, who has been in the scrapyard business for the past 20 years, said he had been operating without any major difficulty but nevertheless welcomed the government's proposal. “We are ready to shift. If the government is giving us land, then well and good,” he said.
Practical concerns
However, the enthusiasm is accompanied by some practical concerns, particularly among operators who require large tracts of land to run their businesses. Rizwan Saeed, who operates a sizeable scrapyard at Colvale, said his business occupies nearly 2,000 square metres and questioned whether the government would be able to provide comparable space to larger operators.
“We are operating on an area of nearly 2,000 square metres of land and there are quite a few of us who run the business on large tracts of land. Will the government be able to provide us such a large piece of land?” he asked.
Saeed said the financial implications of the proposed relocation also needed to be spelt out. He wondered how much rent the operators would have to pay and whether the designated sites would have essential facilities such as electricity and water.
Keeping it viable
The response from the scrapyard owners suggests that resistance to relocation may not necessarily be the biggest hurdle facing the government. Rather, the success of the proposed exercise could depend on whether it can offer viable, affordable and adequately equipped premises to operators of different scales.
While the smaller players see the proposal as an opportunity to overcome the persistent shortage of land, larger operators want assurances that relocation will not translate into higher operating costs or inadequate space.
The government will therefore have to strike a balance between regulating the sector and ensuring that the proposed shift does not make the business economically unviable.