GTA suggests utilizing 10% of funds for companies’ survival rather than designing IT Park and more
Goa Technology Association is the only representative body of the Technology companies in Goa. The GTA which was founded in April 2017 has gathered momentum in their quest for creating serious business for Tech companies in Goa. The body represents ESDM, Tech, BPOs and IOT companies.
The GTA has nearly 70 companies as its members and it’s not been an easy task for GTA, IT companies or startups during the ongoing COVID 19 crisis coupled with the lockdown.
The Association held it’s third Annual General Meeting (AGM) online calling, “2019 as a wonderful year for GTA and thought to make 2020 grand.”
GTA has expressed its surprise over the state’s government’s move to come out with a new startup policy stating that some startups are yet to benefit out of the existing policy, while the existing Goa IT Policy has not been fully implemented.
Further, the GTA has clearly stated that instead of spending money on designing of an IT Park, at least 10 per cent could help the companies survive.
The Association’s President Mangirish Salelkar has suggested that the government continue with the existing policies which were drafted along with inputs from former chief Minister Manohar Parrikar. Salelkar said, “GTA has not been invited to be part of any drafting committee and we need to understand the need to revamp the policy. While The IT policy is not fully implemented, many startups in the State are yet to be benefitted from the startup policy.”
GTA has further stated that they supported the IT Park in the past, but given the pandemic and its economic effects, the need of the hour is to speed up the disbursement to IT or startups instead of approving crores of money to design consultants for the project consultation of the IT Park. “If even 10 per cent of that amount was to be disbursed to the existing IT or startup companies and to improve the infrastructure and last-mile connectivity in the state, we would have been in a position to create so many jobs and add to the economy of the State. In another forum, it was discussed that there will be a new Telecom Policy. No concrete news or updates received on that so far.”
Salelkar has gone on to state that their agenda is not against any decision-makers of the government. “They should not ignore the only IT association connected with all the IT and startup companies in the State. We expect complete support on the issues faced and brought up by us multiple times.”
He further added that the Work from Home (WFH) was a completely new phenomenon and a total nightmare for many of the companies. He mentioned that some companies had to deliver desktops and laptops to their team members in order to work from home. Some of the team members live in villages across Goa and not all have access to internet facilities.
“The COVID situation left all of us in shock. Many industries were hit very badly. Everyone felt that IT is the best industry and while it initially felt like that, the ripple effect caused us to get directly or indirectly affected. Every week we are evaluating our business plans and most of it has gone for a toss as things are still unpredictable.”
Salelkar added that startups who provide IT services to hospitality and travel industries took the worst hit as tourism came to a complete halt during the pandemic. The change in H-1B visa rules in the US has also added to the woes of the Industry as several Goans in the IT sector have returned back home.
Salelkar said, “During the ongoing pandemic, GTA donated a sum of Rs one lakh towards Chief Minister’s Relief Fund as well to help the Government in tackling COVID-19 issue. As a President of the Association, I have been actively interacting with the members who have been hit and wanted guidance from me or the association to handle these difficulties. During the renewal process, we thought of deferring the renewals by three months, as some are struggling with finances, and have chosen to take a backseat this year”
Given the issues plaguing IT companies, Salelkar had requested the IT department to utilize the funds earmarked for the IT Park to sustain startups and IT companies which have been affected by the COVID 19 and the subsequent economic crisis.
GTA members said that communication and productivity have taken a hit due to poor internet connectivity and despite raising these issues with the Government, telecom companies and internet service providers, the problem still persists.
The GTA conducted a survey in April 2020 this year which gave them complete insight into the companies that have been affected. Some of these companies were expecting some aid from the government for their business continuity and this survey was later presented to the Chief Minister and IT Minister.
Salelkar pointed out that the industry had sought support from the Chief Minister and Minister for IT, Jennifer Monserrate, but despite assurances, nothing much has been done to change the ground reality.
Government insists that the new Startup Policy has followed a consultative approach with stakeholders
The Department of Information and Technology (DoIT), has replied to Goa’s IT and startup stakeholders claim to be in the dark about the Goa Startup Policy 2020.
The DoIT stated that the government has adopted a “consultative and participatory approach” while preparing the revamped policy.
Information Technology Minister Jennifer Monserrate, who heads the Department, said that the Startup Promotion Cell (SPC) held consultations with government departments, the Department for Promotion of Industry and Internal Trade (DPIIT) and startup ecosystem stakeholders.
InfoTech Minister Jennifer Monserrate said that the Startup Promotion Cell (SPC) held consultations with government departments, the DPIIT and startup ecosystem stakeholders
A department official stated that the SPC had been conducting online surveys and consultations for over a month; with all startup ecosystem stakeholders and detailed feedback and policy inputs of 105 had been received.
Currently, 88 startups have been certified by the SPC and of these, Startup India and DPIIT have recognized 69 startups. The SPC estimates around 50 startups in Goa and 12 incubators cum co-working spaces.
The statements come after the Goa Technology Association questioned the government’s move to revise the existing startup policy where several startups have failed to benefit from the startup schemes. Officials said that the “growing conjecture and speculation” about Goa Startup Policy 2020 had to be addressed.
The Goa Startup Policy 2017 offered 14 incentives and the SPC has received 77 applications from startups for these schemes. Of these 77 applications, 68 startups applied for just three schemes, while nine applications were for five schemes. The remaining six schemes got no takers, the Department said.
The Goa Startup Policy 2017 expires in September this year.
The IT department also said that the Goa Startup Policy 2020 is being designed with a post COVID-19 world in mind. “The SPC and DoIT have an open door policy, encouraging and welcoming all ecosystem stakeholders and request they too adorn the same constructive and participative approach,” said the Department
