GIDC: D=Develop or Destroy

This first appeared in The Herald

The Goa Industrial Development Corporation is in the news for the wrong reasons. The units in the industrial estates were informed through a press statement that henceforth their lease rents will be increased. This unilateral decision has irked the industry. The lease rent is sought to be increased despite valid lease deeds which already specify the amount of lease rent due from each lease holder. This move is unethical and unprofessional.

Professionalism is the last attribute GIDC strives for, this is very difficult for the employees to be professional because the position of Chairman is usually a political appointee and thus decisions are usually taken arbitrarily from a political point of view. Politicians as usually wield authority but almost no responsibility.

Another arbitrary decision which defies all logic is the rate for raw water supplied in Verna. To reduce the dependence on bore well water by industries, CM Parrikar ensured that a 20 MLD storage facility was set up in the industrial estate. Since the laying of pipes to supply the stored raw water was delayed by GIDC, it was agreed that the Association would organise tankers and GIDC would charge RS 10/- per M3. A year later, the association gets a notice stating that the actual rate is 25/M3 applicable from day 1. They also issued a circular doubling the water charges with immediate effect without any corresponding change by the PWD. The GIDC gets water from the PWD and supplies the same to industry. Just doing this GIDC loses 2 crores a year . No one has ever looked at ways of reducing or plugging this loss.

This sudden urge to top up the coffers of GIDC comes from a dire need to find funds to pay salaries.The GIDC is looking at means which actually threaten the future of industry, a raise of 2000% in some case and an average of 300%. This increase is hardly reasonable.

Why has GIDC which at one time was sitting on piles of cash that they used to give money to other Corporations viz Kadamba, SAG and even for the Quepem Road . The reason is not hard to find. It is poor decision making and worse abdication of duty by employees tasked with the job of safeguarding the interests of GIDC.

The biggest expenditure is maintenance of infrastructure viz roads etc. The GIDC board had take a decision that before a contractor was paid finally, a certificate of completion would be taken from the respective industrial estate association. From 2015 on wards there was rush of road contracts issued and not one on them has any completion certificate, so technically all are illegal. The Government should audit each contract in terms of scope of work, when was Board approval taken and for how much, any enhancement given and why. This is the major areas where GIDC funds are wasted.

The salary bill is reportedly 25 crores. How did this bill come up? There is a complaint in the CVC that the 6^th pay commission increase has been erroneously applied thus causing a huge loss to the exchequer. A staffing agency, Shudha Facility Management Services, has been employed to recruit and staff GIDC offices across the industrial estates, this is not housekeeping staff but field managers. Is this right? The authorities should find out why the Corporation is using such a service when it is a well known fact that such employees get lower than assured salaries despite signing for higher amounts. Why is the Corporation not hiring on contract directly, instead of paying taxes on this service too?

The cash strapped GIDC has now put in place a farewell gift of 10000/- per employee who superannuates. Should not farewells be a private affair, why this largess and why start something not present in any other Government Corporation.

Given the political pressures over the years, employees have all decided it is better to be quiet than sorry. An employee who was heavily involved in the GIDC scams pre 2012 and was put to pasture is back and close to the top. Apparently he knew all the loop holes that could be converted into plots. This gives a wrong impression to other employees and finally no work gets done.

Thus lease rents or sub lease changes are not collected. The field managers do not report subleases not registered or plots not utilised for fear of ruffling feathers, and so there are huge arrears on lease and sub lease rentals.

The last areas that one can look at for want of space to write is wrong calculations of amounts due. The classic case is that of the 50000 sqm plot sold by Babu as Chairman of GIDC where atleast 2 crores is due as short lease and wrong interest charged. Till date nothing is done. Another case which begs a CBI inquiry is the transfer of the Meta strips plot. Against GIDC rules it was transferred to a logistic company. The lease deed signed without GIDC receiving the transfer fees, but against a bank guarantee which is nowhere stipulated in the rules. The transfer charges are wrongly calculated and the figure reported is 26 crores. The best part of this illegal deal is why Canara Bank which had released advertisement taking possession of the property allowed GIDC to transfer the same without an NOC from Canara Bank. This is clearly a case of collusion by GIDC officials to defraud the bank, else why have a system of obtaining an NOC before transfer?

Hence, inefficiencies of GIDC if transferred to industrial units will have a detrimental effect. It is time GIDC pulled up its socks and professionalised its systems so that it is truly a development body for industry in the State.