industrial goa: active attributes & passive preparedness · 2018-02-07 · industrial goa:...
TRANSCRIPT
Dr. Manoj S. Kamat
PhD (Finance) IIT Bombay, Post Doctoral Fellow (Economic Policy)
Industrial Goa: Active
Attributes & Passive
Preparedness
• More than 100 year old
• Most-busy event calendar
• One of the Vibrant Chambers
in this part of the country
• Represent and liaise with
SME's, Corporate
Organisations and
Government bodies.
• Knowledge Chamber:
Support services, business
networking, & Policy inputs
Projected GDP Growth Rates for Select Upcoming Economies
0
2
4
6
8
2005-10 2010-15 2015-20 2020-25 2025-30 2030-35 2035-40 2040-45 2045-50
GD
P G
row
th R
ate
(%
)
Brazil China India Russia
India has been ranked superior to other major countries by many
prominent surveys…
AT Kearney placed India among the top three in its FDI confidence
index…
India is expected to outperform its rivals in the BRIC, in terms of GDP
growth rates, from 2015 onwards…
India Emerges as a Major Economy in the World
GOA
Brand Goa
• A flourishing Trading Culture and Major Port
• Quality Infrastructure
• Friendly People in a Healthy Environment
• Smart Alternative for the Smart Investor
• Extensive Support Systems
Goa provides the best of both the worlds. Be it Business or Pleasure, Goa has a lot to offer a prudent businessman as well as the fun-loving
traveler…..
Stable Financial Indicators
• The economic growth of Goa is around 8.9% in 2011-12
• The per capita income growth in is 9.3% compared to 6.2%
in the same years
• Tertiary Sector accounted for 52% of the GSDP followed by
secondary sector with 38 % and primary sector with 10%
• The per capita income of Goa State during each year of the
period 2011-12 is Rs. 1,95,301,572 and is higher than the
national level (Rs. 53,331) by more than three folds
• The total bank deposits stood at whooping Rs. 43,000 crore
• Tax Revenue:
+ 400 crores
• Non tax revenue (Power & Water):
+ 100 crores
• Central Assistance
+ 100 crores
• Additional Debt
+ 600 crore (Total debt 6614 crore)
The Glorious Past
Decisive Mandate for Governance
“Best Governed State”
Progressive Economic Outlook
Best Demographic Parameters
GOA: Core Competencies
• Rich State in India with highest per capita income of almost three times that of the
average for the country (Economic Survey 2011)
• Best Ranked State for its Infrastructure (Eleventh Finance Commission)
• Ranked Top for the best quality of life in India (National Commission on Population).
• Ranked Top among the medium population density states as per (IFC-RICS
Sustainability Competitiveness Report 2011 for Indian States)
Ranked fourth in terms of overall human development (India HD report Report
2011)
• Among the top three in terms of Economic Competitiveness (Economic Freedom
Scores of the State of India 2011)
• Ranked Top among the Indian states to have 100 per cent rural electrification.
• Ranked Top among the few states in the country to have 100 per cent automatic
telephone systems.
• Major Exporter of iron-ore to Asian economies, and sea-food to the US, Japan and
the European countries.
• Most urbanized state after Delhi
• Ranked Top among Indian states with the best banking network
• Ranked Top among Indian states in terms of households in Goa owning a 2
wheeler and /or a car
GOA: Competitive Strengths
Vision for New IP’13
• New IP 2013, should sustain the growth
momentum
• Recognition of Goa as a peaceful, friendly,
knowledge centric and enlightened Investment
destination.
• The main thrust of economic growth with
industrialisation in Goa must be to foster
sustainability by balancing development of
industry, protecting environment and natural
resources.
Proposed Mission for New IP’13
New IP 2013, should facilitate economic
development in such a way that
Accelerates Industrial Development
Ensures balanced Regional Growth
Protects Environment
Create sustainable employment for the locals
Without vitiating the socio-economic climate
by unbridled inward migration
Proposed Objectives of IP 13
• Showcase the potential of Goa’s openness to
Investments in the identified thrust areas by
displaying its strengths, progressive stand,
initiatives, investor culture and economic
vibrancy of the State to promote it as a
preferred Investment destination.
• Document the policy initiatives, facilities and
incentives initiated by Goa to make it a
competitive and investor friendly destination.
Suggested Thrust Areas
IP 2003
• Outlived IP 03 with re-notification in 2008
was extended up to 2014
• Non attractive no longer meets the
challenges of attracting investment into the
state
• Unimplemented schemes: small plots,
reservations ?
• Non-transparency
• Gold Jewellery Promotion Board ???
• Stringent conditions: no eligible applicants for
the incentive for consumption of local raw
material, interest subsidy and women
entrepreneur schemes
• Investment Facilitation Counter: Non-existing
• Single window for indiscriminate delays !
• Power & water tariff ?
• Non-maintenance of Industrial estates
• New IE’s lack basic infrastructure
• Employment for the locals was never made an
issue
• No Hard-selling !
• Bureaucracy, Red-tapism
EM 1 and EM 2
• 2011-12, 409 entrepreneurs have filed EM
part-1, with proposed investment of 98
crores
• Out of the above, 67 entrepreneurs
filled EM-part II, with investment only
of 37 crore
• Less than 16%
Large Scale Industries
• HPCC cleared /approved proposals for
21 Large scale units
• Out of the above, LSI units in Goa
have only increased by 5
• Taluka-wise distribution:
4 in Mormugao, 1 in Ponda and 1 in
Bardez
FDI to State
• The percent share of FDI inflows in
received by Goa compared to all the
States in India has never ever been above
1.5%
• Current Figures: Goa’s relative
share has decreased from 0.65%
(169 US$ Mln) to 0.10% (38 US$ Mln)
from 2009-10 in the year 2010-12.
Data from RBI
Employment
• 7505 SSI’s, 21 Industrial estates and
189 large scale units, are estimated to
employ only around 50,000 people !
• Unplanned Industrialization
Employment for the locals was never made an
issue
Unprecedented inward migration
Regional (Taluka-wise) Disparity
Efficiency of Industrial
Estates
Smart Incentive Scheme
• Incentives based on EMPLOYMENT
Corlim, Margao, Tuem, Tivim
• Incentives based on LOCATION
Pissurlem, Cancona, Honda, Mapusa, Colvale
• Cluster-based Industry
Sanguem, Betul, Shiroda
• Model Industrial Estates
Verna, Kundaim, Cacoda
Strengthen Agriculture
• Strengthen Horticulture Mission.
• Extensively encourage Pisciculture, floriculture, Tissue
culture, Mushroom cultivation and processing
• Support Agrobased, food processing industry including
fisheries
• Set up Professional Advisory Services which would
facilitate and expedite commercial value addition to agro-
based products
Special Packages
• Allocation for Entrepreneur Education.
• Special Incentive for those units using green
technology, and following environmental certification
• Moratorium on further allowing rolling mills, fish-meal
plant, sponge plants, tobacco and liquor manufacturing
• 50% plots for Goans in industries set up in estates to
setup non-polluting units, also reservation to
Women/SC/ST
• Capital scheme for revival old sick units and for
technology up gradation of existing units
Reform Industrial Estates
• Make Verna IE as a model estate with state-of-the-art
infrastructure, followed by other existing industrial estates
in a phased manner.
• The new IE’s should only have smaller plots
• Things need to be done to free the almost forty lakhs of
sqmts of land locked up in the SEZ dispute.
• Identify the vacant, unutilised or underutilised plots
• Those units who have been allotted plots (legally and
illegally) to either start their business activity within a one
year time frame or else surrender their plots
• Allot time-line to the sick units, occupying plots/sheds in
Industrial estates to revive them within a time-frame
Attention to MSME’s
• Revival package to sick MSME’s already located in IE’s
• Special privilege to ‘Micro Enterprises’ whose investment in
Plant & Machinery is up to Rs.25 lacs, irrespective of the
location of the unit and be exempted from obtaining license
from Municipality, Panchayat and NOC from Health Department.
• Set up Venture Capital Funding and Preferential treatment
from MSME’s in government purchases
• Bring as many MSMEs under green or orange category and
consider further rationalisation of fee structure for MSMEs for
them.
• All MSMEs under green and orange category with green
technology / environmental certifications, pollution control
certification should be valid for at least 10 years with provision
of onetime payment of fees rather than having to pay fees
every 2 years.
Go an Extra Mile • Resolve the issue of non-transfer of the industrial estates in
Daman and Diu to the local administrations as the state
government is not getting any financial benefit as of now
from the industrial estates in Daman, instead the GIDC
has to incur expenditure and also incur losses.
• Set up a Committee to offer tailor designed package of
incentives to cater to infrastructural requirements (power,
water, land, etc.) for LSI established in the thrust areas.
• Offer Special Preferential Treatment to entrepreneurs
based on factors such as type of project, employment
potential for locals, revenue generation for State and
overall impact of the industry on the socio-economic
progress of Goa.
CLUSTER-INDUTRY Approach
Knowledge Hub: at Dharbandora Goa is an ideal
destination to create education hubs. Salubrious
climate, peaceful state, good health facilities, and
well connected to other cities.
Logistics Hub: near Sancoale which can be
integrated with the Mormugao Port, the Airport,
Container Freight Station at Verna and the Railway
Container Yard, all located within a radius of 10
km.
Air Cargo & Cold Chain : near Pedne / Bicholim
will play a major role in the retailing business as
faster movement of goods and perishables like fish,
fruit, flowers and vegetables is what the retailing
industry needs.
Fish farming and Diary Business : at Salcette
and Sattari , respectively. It is a billion dollar
industry
CLUSTER-INDUTRY Approach
Food Processing: at Mapusa and Betul
Mankurad Mango, kokam, cashew, dried fish,
feni (now having a GI recognition) are a local
produce having a great export potential.
Hydel and Solar and based Energy: at
Sanguem
The Film, Media and Entertainment
near Cancona industry is another area
of untapped potential. It is necessary to
bring in global investment for facilitation
of infrastructure and leisure development
projects.
Adventure Tourism at Sanvordem
• Notify Industry-Clusters is suggested
areas, as discussed earlier
• Special Package to Solar/Hydel/Gas
based Power generation Plants / Captive
Plants
• Single Point Clearances for Large Units
in thrust areas
• Investment Facilitation Mechanism with
Deemed Acceptance Clause
Leading from the Front
• Industry has expectations from Parrikar’s astute and
technically strong administration
• The mining embroil this year took a continuous toll on CM’s
creativity, mood and zeal
• CM has firmly stood by its commitment to constitute the
Task Force for drafting the New IP 13
• Goa-IDC Allotment Regulations, 2012 notified
• New set of transfer regulations that provide for norms for
transfer, sub-lease, and surrender are being notified
• What we need now is a comprehensive investment
policy as a precursor to build up investor confidence…
GOA – for Business &
Pleasure
Dr. Manoj S. Kamat
PhD (Finance) IIT Bombay, Post Doctoral Fellow (Economic Policy)