1. The State of Goa, traditionally a rural economy with a strong mining base, has been transformed into a fast-growing industrial center since liberation. The number of Small-Scale, Cottage & Tiny Industrial Units have crossed the 6000 mark. The number of Medium & Large-Scale units rose from a mere 46 units in 1961 to 147 as of today. The industries encompass 50 sub-sectors with a thrust in pharmaceuticals, electrical and automobile accessories. This has been possible due to tremendous strides the State has taken to achieve all round development since its liberation. 

2. The Quick Estimates of the Net State Domestic Product (NSDP) at constant prices (base year 1993-94) for the year 1999-2000 is Rs. 2,74,163lakhs. The NSDP at current prices (inflation factor included) is Rs. 4, 20,254 lakhs. The growth rate over the period from the base year 1993-1994 to the year 1999-2000 is 10.16%. 

3. The Social Infrastructure Indicators of the State compare with some of the most developed countries in South East Asia making the State a natural destination for industrial investment. In fact Goa has been placed at number 2 position in the Overall Composite Ranking of 18 States of India, in a study conducted by the Rajiv Gandhi Institute for Contemporary Studies (RGICS) on behalf of confederation of Indian Industry, in September, 2000.

 4. The aim of the Government of Goa is to encourage the Industry and also to work towards all around development of the State to push up the ranking of the State. One of the many means to encourage Industry are the incentives and subsidies promised. In the present scenario with the WTO statutes in force and QRS having been removed with effect from April 01, 2001, the scheme of subsidies etc. would be counter-productive in the long run. However, the Government of Goa is committed to keeping the promises made in the past to the industry with regard to subsidies. Between February 1996 to November 2000 Government of Goa had sanctioned subsidy in 373 cases amounting to Rs. 21.48 crores. However, no amount was disbursed in any of the cases. It was only in November 2000 that Government of Goa decided to clear the pending cases of subsidies. Since huge backlog of Rs. 21.48 crores had piled up, it was decided to clear these cases in phases. Government made provisions of Rs. 3 crores in November 2000 itself and 213 cases out of 373 were cleared and subsidy was disbl1rsed. Budgetary provision of Rs. 7  crores has been done for the current financial year for disbursement of subsidy. The Government has already approved the disbursement of 58 cases amounting to Rs. 2.78 crores and the same is being disbursed shortly. Remaining amount of Rs. 4.22 crores will be disbursed to the sanctioned cases at the earliest and positively before 31-10 -2001. All pending subsidies will be cleared by March 2002.

5. Objectives: The Government of Goa is committed to become a facilitator andcreate an investor friendly climate to promote the following types of industries:-

(a) Non Polluting Industries

(b) Export Oriented Industries

(c) IT & Biotech Industries

(d) Knowledge-Based & High-Tech Industries

(e) R & D Integration Centres.

 6. Approach: Government of Goa' s approach for achievement of the above objectives is as follows:-

(a) Fast clearance of Investments through "Administrative Reforms".

(b) Creation and strengthening of infrastructure in terms of Industrial Parks,  Industrial Estates, Roads, Power, Water, Communications, IT Enabled Services etc. The Government of Goa is committed to providing of additional amenities in the existing and proposed Industrial Estates. The efforts of the Government would be supplemented by  privatization wherever feasible.

(c) Strengthening of Human Resource Base.

(d) Commitment to Provision of Fiscal Incentives available.

(e) Introduction of New Subsidy Schemes.

(f) Reviving Sick Industries, as per policy guidelines.

(g) Promotion of Cottage Industries in Rural Areas Villages.

 7. Initiatives: The specific initiatives taken. by the Government of Goa discussed above will go a long way to ensure the continued industrialization process of Goa. The details of each of the initiatives are as follows:-

 ( a) Administrative Reforms :

(i) In pursuance of Government of India policies on liberalization and advice from consultants, a 'Single Window System' for grant of  approvals as a formality will be in position. A 'Composite Application Form' would be introduced/prescribed, this will obviate the need for the entrepreneurs to apply separately to each of the relevant departments. This initiative is being undertaken with a singular purpose of making the State, Industry friendly.

(ii) An officer of the Directorate of Industries would be identified for forwarding specific applications to the concerned departments and following up upon its processing. If need be, a cell would be created for the speedy clearance of pending applications.

(iii) Wherever deemed provisions exist in local enactments, they shall be activated in the event of the concerned office failing to complete the documentation within the stipulated time. The Director of Industries & Mines 'would be authorized to issue NOC/License/Permission under the deemed provisions. Where no-time limits are prescribed for grant of NOC/License/permission, the time frame would be prescribed by administrative orders and the Director of Industries & Mines would be authorized to issue the NOC/License/Permission on the expiry of the time limit in the event the concerned office fails to complete the documentation.

(iv) The terms of reference and scope of the High-power Co-ordination Committee (HPCC) which gives approval for setting up Large and Medium Scale Industries is being enhanced. The HPCC would also monitor the progress in providing the necessary facilities for infrastructure to various industries/industrial estates.

(v) The industrial estates have been brought outside the purview of 'Local Municipalities and Village Panchayats'  through a notification. The industries located therein, will henceforth have to deal only with the authorities of the Industries Department in respect of all the matters.

(vi) Sales tax laws have been amended to discontinue furnishing of Continuation Certificate and Certificate that the industry is not high polluting for claiming sales tax based incentives.

(vii) In respect of Software Companies and IT Enabled Services, thefollowing reforms are being put in place:-

(aa) Exemption from obtaining NOC from Pollution Control Board.

( ab ) Zonal Regulations will be relaxed for permitting Software Companies and IT Enabled Service  Providers/and they would be allowed to set up their Units in industrial, commercial, residential and mofussal areas as long as they are located in exclusive buildings.

(ac) FAR relaxation for building outside Municipal limits in the various IT parks and Hi-Tech Habitats to be established by Government or its agencies.

( ad) Amendment to Labour Laws to enable IT Software and rr Enabled Services to run three shifts and employ ladies in all the shifts will be carried out.

( ae ) Software companies and IT Enabled Service Providers would be permitted 'Self-Certification' for Government requirements on various regulations.

( af) Proposal to exempt IT Parks/Habitats established by Governmentor its agencies from the purview of 'Local Municipalities and Village  Panchayats' is being made on the same lines as for other industrial estates. Necessary notification would be issued after the establishment of these IT Parks/Habitats.

(b) Creation & Strengthening of Infrastructure :

(i) Industrial Parks: The Government of Goa proposes to set up the infrastructure for the following facilities:-

(aa) Bio-Tech Parks

(ab) Information City

(ac) Special Economic Zone/Export Promotion Parks.

(ad) Apparel Parks

(ae) Hi-Tech Habitats for IT industries at Dona Paula where 70 acres of land have been earmarked. Dedicated Large Bandwidth CoImnunication, Incubation Centre and Centralised Common Facilities would be provided.

(af) Cyber City would be set up within the SEZ where World Class

Centre, Hospitality Facilities and Entertainment Centre, IT Enabled Services and Processing Studios would be set up. The City to be located in Mandrem-Morjim would be linked to the airport by MRTS.

(ii) Industrial Estates: As on date, there are 18 Industrial Estates providing the necessary infrastructure facilities to industries located therein. Six more estates are being set up. Infrastructure and amenities like Effluent Treatment, Garbage Disposal etc. would be strengthened in the existing and proposed industrial estates. In particular, Fire Fighting arrangements will be established/ strengthened in desolate industrial areas/nearby townships close to these desolate industrial areas so as to complement and supplement the task of fire fighting either in the nearby townships or the nearby industrial areas. This modus operandi is being attempted in order to save on duplication of effort.

(iii) Roads:

( aa) Goa has a high density of road network at 1955 kms .per thousand square kms. of area and 6214 kms. per lakh population. The national average is 730 kms. per thousand square kms. and 2847 kms. per lakh population.

(ab) A four-lane expressway is under construction connecting Verna Industrial Estate with the International Airport at Vasco and Port at Mormugoa.

(ac) The long-term plan of the Government is to link all Industrial Estates to National Highways with wide roads to facilitate free Intrastate movement of container traffic.

(iv) Power: 

(aa) The State of Goa received the power allotted by NTPC from the center generating station in the Western and Southern Regions and wheeled through National as also neighbouring state grids. Presently, a total of 407 MW of power is allotted but only about 200 MW is being drawn. Private generation of 48 MW is also available. Further setting up of 2 x 315 MVA, 400/220 KV Station alongwith Double Circuit National grid connection is expected to be completed in next 15 months. From year 2003 onwards, 500 MW of power would become available against a total projected demand of 322 MW by the end of 2005. The State is therefore surplus in power.

( ab ) Power would be supplied on priority basis to Software Companies and IT Enabled Service Providers.

( ac ) The Government of Goa will continue to encourage industrial units to set up captive power plants as hithertofore. Massive upgradation program to improve the quality of power by reducing transmission losses and strengthening the distribution system is underway and is expected to be executed in next two years at cost of approximately 200 crores.

( ad) Goa Govenunent has already declared freezing (for increase) of Industrial Power tariff till 2004. It is also projected that if the current trend continues, the Govenunent may even reduce the tariff.

(v) Water:

(a) As against a total projected demand of 338 MLD by 2011, the total capacity available on completion of ongoing and contemplated schemes in Goa would be 650 MLD by the year 2003. The industrial estates would be provided with adequate water supplies. A masterplan would be prepared to implement the work in a fixed time frame.

(b) Water tariff rationalization is being done and the same will be brought to a reasonable tariff.

(vi) Communications: The entire State of Goa is covered by optical fibre network. Work on laying DWDM is being taken up. Presently, 8-MB Bandwidth is available and with three months notice, any Bandwidth would be provided. M/s.Reliance Industries are covering the State of Goa in the Tetra Net Services being undertaken by them throughout the country. Consequently, connectivity will be strengthened.

(vii) IT Services: The Government of Goa has embarked on an aggressive policy of introducing E-Govemance in the State within three years. The computerization of offices on a Web Based Approach is being undertaken. Consequently, services provided by the Government would be IT Enabled and accessible from any village within three years.

(viii) Hostel/Transport Facilities: The Government proposes to give subsidies to the extent of 75% for the infrastructure required to build a hostel for workers in any of the industrial areas. The construction and running of the hostel facility will be the responsibility of the respective industrial associations. Dedicated transport services from city to the industrial areas to mitigate the commuting problem of workers during the night hours on preplanned schedules is being set up.

(c) Strengthening of HRD Base: The literacy rate in Goa exceeds 83%. Goa has a broad network of Education and Technical Institutions. 43 Colleges are affiliated to the Goa University and 8 schools of Professional and Technical Education exist, In order to ensure that the education system provides the necessary skills etc., outdated courses in the technical Institutions have been discontinued and new courses included. IT education has been introduced in the schools to cover 100% Schools by 2003. Students from 9th standard onwards now would be receiving computer education. Further, a massive training programme for Government employees in computer operations has been launched by the Government and it is expected to cover all the employees by 2002.

(d) Fiscal Incentives Available:

(i) The interest of the beneficiaries who have availed the benefits of Sales Tax exemption will be protected by the Government through appropriate measures.

(ii) Income tax holiday for industrial units set up before March 31, 2002.

( iii) Remittances of 50 percent of stamp duty payable by SSI units is available .IT industry has been given graded exemption from stamp duty 100% before April 2002, 75% upto April 2003 and 50% upto April 2005. The rebate would be available for acquiring premises for establishing IT software and IT Enabled Services in IT Parks, Habitats Hi-Tech Industrial areas established by the Government or Government Approved Parks having minimum facilities like dedicated connectivity, adequate backup power and minimum parking space.

(iv) 15% price difference is available to registered SSI units on purchases made by Government departments.

(v) Equity participation to IT industries considered for feasible and viable projects.

(vi) There shall be No Entry Tax after introduction of the VAT based Sales Tax as the legislation of Entry Tax expires on 31-3-2002.

(e) New Subsidy Scheme:

(i) Government of Goa proposes to replace the existing State Investment Subsidy Scheme by New Subsidy Scheme. The new subsidy scheme will be based on the backwardness of the area and will have employment linkage. The New Subsidy Scheme @ 25% will be will be applicable for units below Rs. 100 lakhs in capital investment. In order to enforce the new subsidy schemes, the State of Goa is divided into three categories i.e. Backward, Less Developed and Developed Areas. The Talukas of Satari, Sanguem, Pemem, Ouepem and Canacona are notified as Backward Talukas whereas the Talukas of Bicholim, Bardez  and Tiswadi are notified as Less Developed Talukas. Under the new subsidy scheme, industrially backward areas of the State will be entitled for 100% subsidy, less developed Talukas like Bicholim, Bardez and Tiswadi will be entitled for 50% subsidy.

(ii) In addition to the new investment subsidy, the Government will also formulate a scheme of interest subsidy wherein maximum benefits available for the industrial units will be Rs. 5 lakhs per annum for a period of five years. The interest subsidy scheme will be applicable to those units availing loan facilities from EDC/MSFC/Nationalised Banks/Scheduled Co-operative Banks .

(iii) The existing State Investment Subsidy will remain in force upto March 31, 2002 and entrepreneurs will be given choice of option for either  New Subsidy Schemes or existing ones till March 31, 2001 after which existing schemes will be discontinued.

(f) Revival of Sick Industries: In addition to the channel available to sick SSI units through SLIIC, the Government of Goa is in process of finalizing guidelines to revive sick industrial units.

(g) Promotion of Cottage Industries in Rural Areas/Villages: The Government reiterates its commitment to promote Rural and Village Industries for generating employment in non-farm sector. GHRSSIDC would take a more aggressive role in marketing of Handicrafts by establishing linkages with the Directorate of Industries and Mines which runs 40 production-cum-training centers in various crafts. It is proposed to give a thrust by embarking on an aggressive marketing policy to promote export of traditional Handicrafts.

(h) An industries in non-polluting sector with investment above Rs. 100 crores and minimum employment of 500 would be treated as core projects. All core projects will have special incentive packages for fast execution of the projects.

8. Conclusion: Goa with its extraordinary Social Infrastructure Indicators, beautiful landscape and salubrious climate is already a well known destination for tourism. The aim of the Industrial Policy is to make Goa also the most preferred destination for setting up Industries. Apart from the requirement of improving the infrastructure on a continuous basis for the industries presently functioning in the various industrial estates in Goa, there is also a requirement to improve the infrastructure to a level, which would seem very attractive to global industrial powers and major players. This can be achieved with dedicated planning and a major step towards privatization of infrastructure, which in itself will solve many problems of the Government such as Finance for creation of World Class Infrastructure. It is well known that the expertise and technical capability of the Government departments are already overloaded to look after the present population of Goa and thus we require major participation from the private sector.

9. Constant endeavour to encourage the existing industries to produce more and continuous efforts to bring in new industries and new investment will ensure that the revenue collection of the Government of Goa would automatically go up and thus the need to simplify the procedures for industrialization and de-centralize the existing controls to ensure minim~ required checks and balances.

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