SEZs in Goa face landing trouble

PANAJI: Goa wants to develop special economic zones (SEZs), but does not know how to acquire land for them. The tiny coastal state, which wants to emulate the success of Bangalore and Hyderabad in IT, has sought permission to establish 15 economic zones, mainly catering to IT and ITES sectors. The Centre has already given in-principle approval for seven of them, but the state is yet to answer the crucial question: Who will acquire land for the economic zones?

Land is hard to come by in Goa. Nearly 40% of the state’s land fall under forest zones and, hence, cannot be used for commercial purpose. The land available for development is bound by strict rules framed during the Portuguese rule. Approval from all living family members is mandatory for purchase/sale of ancestral property in the state. This makes any land deal a complicated process. And the state may not be of help here.

State government officials say that the government’s role is only to get approval for the projects from the Centre. “Private developers will have to acquire land on their own. Our role is more of a facilitator,” said VK Jha, the state industry secretary.

The state has already allotted land for a few projects, but it is “yet to take final decision” on land acquisition for the other SEZs. Says AV Palekar, MD, Goa Industrial Development Corporation, the nodal agency for developing industries in Goa: “We have given land that was already with us to establish four SEZs. But, for the remaining ones, I don’t know what will be the procedure; our department will not be handling it.”

While the state is yet to formulate an SEZ policy, there are many who are opposing creating such zones. The state government now finds itself caught in a crossfire, between the industries and locals who fear losing their livelihood. Chief secretary JP Singh said the government was formulating a policy and will finalise once the Centre’s stand on land acquisition becomes clear.

Meanwhile, work has begun on the projects that have been allotted land, including Cipla’s Meditab Specialties’ Rs 500-crore worth pharma zone. The public-private partnership with Mumbai-based real estate major K Raheja Corp will develop two SEZs at Verna Industrial Estate for IT and ITES sector, while Peninsula Pharma Research Centre will develop an R&D centre and biotech park.

These SEZs, once operational, are expected to boost Goa’s trade and industry. Industrialists, however, fear that a lack of clarity in the government’s stand on developing SEZs is hampering Goa’s chances of becoming an export hub.

The fragile political situation in the state, which has seen 16 chief ministers in the past 20 years, is only adding to the confusion of investors. One plus point is that chief minister Digambar Kamat seems to be very enthusiastic about the SEZs. “I’m very impressed with the SEZs in Bangalore, and want to have a similar one here,” he said.