Energised by money coming in from the sale of industrial plots, the Goa Industrial Development Corporation (Goa-IDC) is active once again in supporting the state’s industrial growth. The corporation has framed a new policy for land allotment, proposed fresh projects, and brought in technology for improved services, among others. Here GIDC managing director Pravimal Abhishek speaks to Shoma Patnaik on the corporation’s strategy of being at the forefront in the industrial economy. He says measures being taken to improve industrial estates will surely show results in the coming years.
GIDC has initiated various reforms since 2023. The decision to auction plots is a bold move. Would you say it is the corporation’s biggest reform till date?
One of the most important reforms of GIDC is in governance where the corporation has bridged the gap between the government and citizens. The IDC Connect programme has given a huge boost to the confidence of industries. They are reassured that somebody is here to listen to them and redress their grievances, and that we are very serious about it. Gaining industry confidence has helped GIDC set a vision of being financially strong, improving ease of doing business, and enhancing the level of public service delivery. Towards financial independence, the corporation was previously almost in Rs 30-40 crore of debt. Today it is able to fund its own infrastructure needs. The financial stability is achieved by introducing a simplified, transparent auction process. It is a third-party auction. Hardly 5 per cent of industrial land is under auction, but the capital raised helps us provide infrastructure to all industrial estates. It is a strategy called value capture financing. By capturing value from the prime plots of the industrial estates, we are able to use it to provide services or infrastructure in all industrial estates.
Industry continues to complain of inadequate ease of doing business.
The 2023 IDC regulations have significantly enhanced EoDB (ease of doing business), as they have improved investor confidence to come to Goa. They have opened up new sectors such as logistics and warehousing. Some of the provisions of the plot allotment regulations are very progressive in comparison with other states, like special transfer. It gives a clear cut framework to deal with corporate restructuring cases such as mergers and acquisitions, which were not dealt with earlier.
What about the GIDC Open Portal, which has received modest response so far?
The IDC Open Portal is now being used by 1,803 industries and the rest are in the process of getting on-boarded. The state has around 3,041 manufacturing units in all the industrial estates, of which nearly 300 are non-functional or sick. The process of digitalisation is always a challenging exercise. For instance, in the case of the Corlim industrial estate, which was founded way back in 1966, tracing out the lease deed, the allotment letter, the NOC from the panchayat which is over 50 years old, is tough. It is a time-taking process and there are no shortcuts to it. But despite the obstacles, GIDC is doing it. In some of the old units from the 70s and 80s, the occupancy certificate is not present in our file and neither with the panchayat. With 68 per cent of manufacturing units digitalised as of now, the response to the portal cannot be said to be modest. Industries can also testify that the portal has actually improved their EoDB. The portal is already working. Industries that had applied for transfer cannot believe that the transfer order has come online.
The focus is on land sale and not on inviting investors to the state. Investors who had shown interest in GIDC events are nowhere in the picture.
The GIDC works hand-in-hand with the Goa Investment Promotion Board (IPB), which is the investment facilitator of the state. GIDC had organised the Invest Goa event in 2024. We will not be doing it every year because the state does not have that much land to make available to investors. It could be a bi-annual event, with the next Invest Goa scheduled in 2026. In the January 2024 event, TVS Logistics had shown interest in setting up a logistics project. The company was shown land in various places, but they were focused only on the Verna industrial estate, where land available is only through the auction process. The company was unsuccessful in the auction. Likewise, Rasna, which had also participated in the investor event, was shown the auction plots. GIDC cannot give special concession to a particular investor. Goa is a premium destination in terms of manufacturing because it comes with so many advantages. It is time outside industry recognise the qualities of the state and pays the right (land) price. There are industries which are acknowledging Goa’s premium status. Italian company EuroStampa participated in the auction process, took up land in Verna estate and started the facility in 18 months.
The concerns are on GIDC’s long-term financial stability when there will be no more
income coming in from auction of plots.
The GIDC’s financial stability can be achieved either by a continuous supply of revenue or by cutting down on expenditure. Previously, the road works in industrial estates had potholes coming up within a year, resulting in recurring expenditure. The corporation has now decided to put an end to the expenditure on road works by taking up white topping of the estate roads. The roads have a life of 30-35 years and are long lasting. Secondly, the plan is to cut down on water expenditure by setting up a water treatment facility in Verna. The facility will take raw water, process it, and supply it to units instead of GIDC buying treated water at higher cost from the PWD. Regarding the auction income—the fund flow from auctions does not come in immediately. Around 20 per cent of the money is received now and the remaining 80 per cent in instalments over the years. A long-term financial analysis of the corporation has been carried out, and if some of the recurring expenditure on infrastructure can be curtailed, then GIDC has a very positive and healthy future.
Your infrastructure expenditure is slowing down in the last two years. Why is this so?
The infrastructure expenditure cannot be growing all the years. It has to plateau at some time. Our focus presently is on completing all the initiated projects and taking up new projects based on their need. Some of our new projects include the automation of the entire water supply system in Kundaim industrial estate, namely from the pumping of water to the end-user supply. The plan is to install smart water meters in the estate for IoT-based billing. Based on the project’s success, it will be extended to all industrial estates. The proposal is to replace existing water pumps and bring in smart watering system. It will result in huge savings. Kundaim will also receive CCTV cameras in various locations for the safety of working women and also to check illegal parking.
The focus is on the top three industrial estates. Where do Panchawadi and Latambarcem stand in GIDC’s future plans?
There is no question of step-motherly treatment. Everybody is treated the same. White topping of roads has been taken up in Margao industrial estate. In Latambarcem, 18 plots are allotted and 19 plots in Panchawadi. The timeline provided to start operations for plot allottees is four years. Whatever seeds we are sowing will show results in the coming years.
