With the aim of bringing in new investments and giving a fillip for the Ease of Doing Business (EoDB) within the State, the Goa Industrial Development Corporation (GIDC) has notified new norms and regulations
The new norms and regulations by the Goa Industrial Development Corporation (GIDC) have been reformed so that matters regarding the allotment, sub-lease and transfer of industrial plots are simplified across the State. The ‘marking system’ for allotting plots that has been introduced provides extra points and advantages to women entrepreneurs, local entrepreneurs, startups, and patent holders.
Manguirish Pai Raiker, former President of Goa Chamber of Commerce and Industry (GCCI), says “These simplified norms will help the small and medium entrepreneurs. Today, time is the essence and coupled with transparent and clean dealings with an online approach will help more units to achieve reality status. Next generation entrepreneurs will come forward with investment, innovative processes, employment generation, as well as bring buoyancy to the economy.”
“These simplified norms will help the small and medium entrepreneurs. Today, time is the essence and coupled with transparent and clean dealings with an online approach will help more units to achieve reality status. Next generation entrepreneurs will come forward with investment, innovative processes, employment generation, as well as bring buoyancy to the economy”
MANGUIRISH PAI RAIKER
Former President of Goa Chamber of Commerce and Industry (GCCI)
He further stated that, “I agree with the fact that locals and women entrepreneurs will find it easy to deal with the Corporation and will be able to set up the unit with ease and comfort. There are many vacant plots as well as idle units which have turned sick within the industrial estates. The Corporation needs to take an aggressive stand in these cases and create a platform for new entrepreneurs to take over the premises and start a new business. The existing sick units will see a new beginning with a win-win situation for both the new and old entrepreneurs.”
Pravimal Abhishek, Managing Director (MD) of GIDC, explained that one of the biggest changes is the liberalisation of the transfer and sub-lease process. He further added that there are five regulations that are being consolidated and made into one single document and that by stepping into the shoes of an investor − going through so many documents and getting clarity is extremely complicated.
“The process of allotment of new plots have become streamlined, defined and timelines have been set, as well. Furthermore, the amendments will attract new investments because it facilitates the transfer and sub-lease of plots. In one stroke, this will reduce the problem of non-availability of industrial land in Goa”
YATIN KAKODKAR
Apex Packing Products Pvt Ltd
“The existing transfer regulations require only substantial construction to be done, but the definition is vague and transfer is not seen as a means of exiting the business.Ease of exit is very important for ease of doing business, and by transferring the plot an investor can exit the business,” Abhishek elaborated.
The GIDC new regulations includes no fee to be charged for plot transfer or sub-lease of a plot, a lowered penal interest rate (8%) for lease rent in matters concerning late payments, a standard format that applicants need to sign for the lease deed, commercial and retail outlets will be permitted to set up within industrial estates, excluding establishments such as bars and gambling houses that have been categorised in the GIDC’s negative list. In addition, projects of the government including hospitals, electricity sub-stations, water treatment and solid waste treatment plants, will be allocated plots classified as utility.
“I am extremely delighted that finally the long awaited GIDC (allotment, transfer and sublease) regulations 2023 has been notified. It was a long pending demand of industries to establish proper ease of doing business in the State. GIDC affairs was one of the main hurdles”
DAMODAR KOCHKAR
Owner, Ultratech Automotive Pvt. Ltd
Moreover, the Managing Director also informed that with the transfer fee being removed, GIDC will lose an estimate of Rs.6 crore each year and that the amount will be augmented by means of industrial and commercial plots auctions. The GIDC Board and Investment Promotion Board will allocate the plots and will follow-through the process of an auction, however industries that fall under the red category will not be approved for plot applications.
Abhishek also explained that there are two categories under enterprise and that is industrial and commercial and that 90% and 10% of the plots will be reserved for industrial and commercial projects like shopping complexes, respectively.
After every two years, industrial units will have to submit a certified third-party report that authorises their commercial operations as per the recent regulations. This will put a big check on irregularities; and if the report has not been submitted then it will call for a field inspection followed by an inquiry, after which action will be taken, Abhishek informed.
“The existing transfer regulations require only substantial construction to be done, but the definition is vague and transfer is not seen as a means of exiting the business.Ease of exit is very important for ease of doing business, and by transferring the plot an investor can exit the business”
PRAVIMAL ABHISHEK
Managing Director, GIDC
Speaking on GIDC’s new notification, Yatin Kakodkar, owner of Apex Packing Products Pvt Ltd stated that, “The process of allotment of new plots have become streamlined, defined and timelines have been set, as well. Furthermore, the amendments will attract new investments because it facilitates the transfer and sub-lease of plots. In one stroke, this will reduce the problem of non-availability of industrial land in Goa. Mobility of land has got an unexpected boost, which will aid the exit and entry of industrial investors. Transfer fee has been rationalised and made more reasonable. Penal interest for late payment of dues has been reduced from an outrageous 11% to a more practical 8%.”
“The time allowed to start commercial operations has been increased from 3 years to 4 years, which is investor-friendly. The regulations are also innovative and progressive to the extent that they give an industry status to warehousing, logistics, cold chain facilities and IT enterprises, and allow for Special PurposeVehicle (SPV) to become an investor. Other departments in the Government of Goa should take cue from the good governance that is visible in GIDC and undertake similar reforms and improvements in their functioning,” Kakodkar expressed. Damodar Kochkar, owner of Ultratech Automotive Pvt. Ltd, commented on the notification saying that, “I am extremely delighted that finally the long awaited GIDC (allotment, transfer and sublease) regulations 2023 has been notified. It was a long pending demand of industries to establish proper Ease of Doing Business (EoDB) in the State. GIDC affairs was one of the main hurdles.
Even after releasing the new industry’s policy to boost industrial growth in the State two years ago, necessary amendments to the Acts and regulations were not done. This notification released by the current Government of Goa will certainly set a path for a new era of EoDB in Goa”
