Manufacturing downturn, poor biz attitude a worrying sign for state

Panaji: While the state aims to project itself as a key hub for manufacturing and exports, the closure of at least 327 industrial units over the last few decades is a worrying sign. Aside from this, 141 manufacturing units that were allotted industrial plots failed to use the land, suggesting concerns about the viability of the commercial plans.

Data shared by the directorate of industries, trade, and commerce shows that these 468 companies are sitting on the land allotted by Goa Industrial Development Corporation but have failed to set up a manufacturing facility, or the production facility remains shut down.

The department’s data also shows that while GIDC allotted 179 plots to entrepreneurs since 2022, during the same period, the Goa investment promotion board, which was supposed to aggressively attract investments into Goa, succeeded in approving just 57 projects. The plots allotted by the GIDC generated approximately Rs 2013 crore as investment and created 7,178 jobs.

In contrast, of the 57 projects approved by the IPB, just two units were set up, and 21 jobs were created for locals.

“For new investments, IPB is actually a necessity, but as we can see, they are sitting idle as they don’t have the vision and the capability. An industrialist who has the capability and link with the rest of the country needs to lead the IPB. You need to show the investors the way to Goa,” said Manguirish Pai Raiker, chairman, Goa state council, Assocham.

The GIDC board approved the exit support scheme in June 2024 for 423 industrial units and plots that were either shut or unutilised in the state.

“There was lukewarm response to the scheme. A majority of them now say that they want to utilise the plots,” said GIDC managing director Pravimal Abhishek. About 80 applications have been received under the exit support scheme.

A significant number of sick industrial units are at the Cuncolim and Kundaim industrial estates, which account for 123 companies of the 327 industrial units that shut down operations over the last decade.

“At Corlim, almost 70% of the units are closed, and the remaining are converting to warehousing,” said Raiker.

“We are either asking them to use their plot or transfer through the exit support scheme, or obviously be ready for eviction,” Abhishek said.

Raiker said that compared to IPB’s lethargic approach, GIDC has taken positive steps to improve investor sentiment. “They have come up with the transfer policy for the sick units. All the sick units were given a free hand to find a buyer, but unfortunately, there is very poor response. The underlying factor could be that nobody wants to start a new unit in Goa. Entrepreneurship is lacking in the new generation,” said Raiker.

Some industrial estates lack basic infrastructure such as roads, water supply, and power supply, a key factor behind the hesitation of investors.