The New Industrial Policy: Goa

This first appeared in the Heraldo dated 24 Jun 2022

 

The Government of Goa, has announced a new industrial policy. When compared to the previous policies on first reading it appears to be comprehensive and addresses all the pain points of industry, especially for those who wish to start enterprise in Goa.

 

It could be the first time Human Capital, Reliable Power, Water, Internet and Waste management are highlighted and part of one policy document in an integrated manner.

 

The way to hell they say is paved with good intentions, so we will have to wait for the final policy directions. This policy has many interconnections with other departments. For eg: land use comes under the regional plan and that is the domain of the TCP department. In the past, decisions by the Industrial Promotion Board (IPB) which will now become a very important part of implementation of the single window system (SWS)  were not accepted by power department. Therefore when the details are out, these links will have to be closed by notifications making the decisions binding on other departments.

 

One aspect that stands out is the fact that the Government has realised that it is the front line that needs to be trained to change their attitude to business and businessmen. While the Centre and State have been pushing reforms and wanting the environment to be investor friendly. It finally comes down to the dealing hand who handles the applications and who does not bother and thinks nothing of asking the investor to come tomorrow. We all know that tomorrow never comes but the front end employee loses nothing and gets his salary anyway at the end of the month. Training will help the employee understand the importance of revenue and job generation through investment and more importantly he will drive the Governments vision expressed very well in this document.

 

The vision is to build trust and collaboration, infuse transparency and predictability to achieve the all important goal of prosperity and SABKA VIKAS. These are very encouraging words and signals a shift in thinking at the policy level. This vision statement itself marks a departure from the normal, and now looks at every investor as a partner with Government.  “Sabka Vikas”, can only be achieved by revenue generation, and business is the main revenue generator, This revenue can power all the social empowerment schemes like free water or electricity.

 

The policy also makes GIDC the sole authority for handling allocation of land. This is as it should be, when IPB was also allotting 40% of available land there was a tussle between the organisations. On one occasion a piece of land was reduced from 3000 sqm to 2999 sqm after the first advertisement was released by GIDC because they realised 3000sqm comes under the purview of IPB to allot.

 

Allotting a plot, only after advertising is a good way to increase transparency. Manufacturing or MSME is not a focus area, proposals related to them have been floated. One, revival of sick and closed units.  The situation is complex, many of the closed units have dues with ESIC/PF/PWD and Electricity Dept. Often deals to transfer fall through because the “No Dues” certificate takes time or is disputed.  The plot then continues to be unused, a big loss to the exchequer. Hence finding a solution to the departments dues is imperative and must be time bound.

 

The Government has promised to incentivise an “Anchor” unit to invest once policy is finalised.  Industry organizations can leverage their connections, GSIA organised a meeting with the TATA group and CII also has such connections. Once an Anchor unit is identified, smaller plots must be made around it to facilitate ancillary MSME units.

 

On the lines of Micro Industrial Units, can GIDC be tasked with using a plot to create “plug and play” spaces (Galas in popular parlance), small spaces like you have in many parts of Mumbai, where entrepreneurs immediately, start operations without having to get a plot, build etc.  Welding, machine shop, electrical repairs etc are some examples of what can be started locally and in a  small area.

 

Revival of self governance of industrial estates, is a welcome step.  GIDC rules mandate a satisfaction certificate from the Estate Association which is bypassed at present. If implemented well it can ensure proper use of funds and quality control. Stakeholders cannot complain, having approved the work.

 

While subsidies have been out of style for a while, close on the heels of the central Production Linked Incentive (PLI) Scheme, Goa is now launching its own. This is linked to increasing capital cost or adding employees, both difficult to ascertain and not necessarily contributing to increased revenue. It would be simpler to give an incentive based on increased GST contribution, year on year. If your GST contribution increases above say a base threshold of 15% annually, the business would be entitled to a 2-5% of all incremental contributions. Very easy to track and will be fair and transparent too.

 

The last but not the least is Ease of Doing Business. The policy promises to make “Single Window System” concept a reality.  The thrust will be more online applications, a common form which will be used by all departments, rather than one form for each. The best is enforcement of time lines, will it be deeming clauses? We have to wait and watch. There is work to be done.

 

Well begun is half done. The Government has indicated the direction and the intent, we do hope they will be able  to cross the hurdles and covert the draft into a workable policy that will ensure SABKA VIKAS.  

  

Public Funds Down The Drain

This first appeared in the Heraldo dated Jun 2021

 

The recent fiasco at Orlim, where a protection wall is in shambles because of many reasons. Design, given that is built in the fields and the area would be prone to water logging. Quality of work, one end which does not appear to be damaged, does not inspire confidence. Possibly it would have got covered with the tiles. Responsibility, is anyone responsible? Is it only the contractor/consultant, are these projects where public money is spent not supervised by the Government agency tasked with getting the job done.

 

It is the GSIDC, who clarified that a consultant has been appointed and the problem is either adequate weep holes designed were not provided or blocked. At this stage issuing a clarification and not knowing the exact status, i.e. were weep holes provided as per design? Yes or No. If they got blocked in the first rain they were not adequately designed for sure.

 

The local MLA was quick to say that the contractor will be made to repair the wall at his cost. Small consolation, since the contractor is not blacklisted, he will be compensated subsequently. What about the consultant, if the weep holes were inadequate or not provided, who inspected and approved. Inspectors may turn a blind eye but nature is unforgiving.

 

Look at the new highway under construction across Goa. The fact that a section of the Atal Sethu bridge has multiple problems within a year of commissioning, speaks volumes of the quality. Wonder what will be in store as the years go by. The bridge was closed from one side and repaired or rather band-aid applied. This too has failed. The contractor in this case is one of India’s leading construction companies. The road surface on the bridge has developed potholes and the second rains has just begun, what does one expect after a few years, who will be responsible for its maintenance if at the start it needs so much rework.

 

Unfortunately, we have got used to this shoddy work and substandard materials. It is normal and expected. We build drains where the sides collapse and the cement concrete covers turn to powder leaving gaping holes, ugly and dangerous iron bars protruding, endangering life and limb. Take the contract, execute and forget it, how did it get approved in the inspection, are concrete samples taken and tested. Are reports made?

 

Recently, the Government invested heavily on ventilators, we were assured that they cost more because they are better than the ones supplied under PM Cares Fund. However the reality is different. They do not work, they are to be kept on and are noisy, or else the battery dies. Where is the quality check? Who is monitoring these machines and if they are not as per specification, why are they not replaced by the manufacturer? Is there a system where actual users can feedback their grievances so that the decision makers can take cognizance and act against errant suppliers? The Health Minister correctly asked for a judicial review but this has been not vetoed by the Government in court.

 

On the beaches of South Goa, dust bins have been installed, they have the embossed logo of some random institution, “KCIC”. Why? Is it that the supplier had excess bins or they were rejected by that customer and now sold to GWMC? Who signed the inspection note for these bins. If they were donated then, it is ok, if the government paid for them, then it is a question of public money. Was this part of the deal, wrong logo so price discounted, not possible in a tender system as the option will not exist.

 

Why is it that we the citizens have absolutely no redressal when it comes to wastage of public funds. Why is it that we have to accept shoddy work which endangers our life and limb and have no way to bring it to the notice of the authorities who are actually supposed to know in the first place. Actually they are not just supposed to know, they are supposed to ensure that the work done or material supplied is perfect.

 

What are the solutions to improve this pathetic State of affairs. One, the Government can put the specifications that are ordered online so everyone knows what is to be delivered. Two, the inspections reports which are approved by the inspectors should be also put up online against the specifications. This way citizens will know what was ordered and what was delivered. The transparency will help to ensure proper delivery of service. Importantly, while the work is being executed, people can observe and notify the authorities if there is something amiss. QR codes can be posted at the work site which will give direct access to person responsible for that work. Technology can be leveraged.

 

Three, put the name and contact no of the person signing the order, who can be informed if the service or goods are not performing up to the mark. In the case of ventilators, the patients relative could have complained, because the medical staff on duty may be scared to do so, and hence it will go unnoticed. In the case of a drain cover crumbling, the concerned official may be sitting in the HQ at Panaji and the drain would have collapsed in Davorlim.

 

The Government will do well to review this ordering and execution for public projects so that it ensures public money is not sent down the drain anymore.

Potholes, leave GOD out of it.

This 1st appeared in the Herald dt Sept 2018

Recently the PWD Minister blamed the rains for the potholes in the roads, or in many cases roads among the potholes. God sends rain so indirectly he was blaming God for his department ineffectiveness. If what he said was true, we know that as far as Goa is concerned every square inch of land gets rain pouring on it. So, logically there should not be a pothole free road at the end of every monsoon.

Yet to the Citizens good fortune there are roads unaffected by the entire season of rain, for example one can drive on the Margao Panaji Highway and except for the areas where the 8 Lane bridge work is on going most of the road is pretty pothole free. The four lane Airport road, built by Border Roads Organisation, a pleasure to drive on and the Sonsoddo Macazana road untouched for a decade imagine the savings from well built roads like this. Surely the Gods are not partial. They do not look down and say we will spare this road or that. There is another explanation.

The explanation is simple and should have been given by the PWD’s technical people. Pot holes have a direct relations to road engineering and material used. This seemingly simple fact is ignored when we hear the powers that be say, once it stops raining we will repair the potholes. They do under urgency clauses where the specification is cover the pothole and nothing else, so the pothole promptly appears the next time at the slightest hint of rain.They have now released Rs 10 crores for filling potholes. How does one estimate material required, surely something is being filled and it is not potholes for sure.

Road engineering is a highly specialised topic and takes into account many factors, most important is the load which would vary with the speed and braking. Related to the factors selected under load, the materials would have to be chosen, including thickness of the asphalt. Water is Enemy No1 of Asphalt, rain water or any water flowing over the road, drainage assumes a key significance.

Lets take example of the ARLEM circle and compare it with the COLVA circle. Both fairly close to each other so rainfall on both over the now ending rainy season would be similar if not equal. Yet the Colva circle was thankfully not worse for wear where as the Arlem circle resembled the moons surface, it could have been worse but for two or three touch ups done (read money poured into potholes).

Why would it happen? Load, the heavy trucks going through the Arlem circle are a lot more that what passes through the Colva circle, heavy 20/40 foot container trucks either heading to South India from the Port or Belgaum since they cannot use the Zuari bridge. The turning circle is not optimum and hence these trucks pull up the tamac as they have to turn on a point. So load is an issue and the asphalt is not able to handle it

The Colva circle never has much water accumulated except for the spot in front of the Colva exit where the road was dug to repair a pipeline. That is clearly the point where a major pothole has formed. The Arlem circle on the other hand has no such luck, the moment it rains water collects all around the Circle.

The black top seals and ensures no water enters the top layer. Road digging by sewerage or Reliance damage this seal coat. Then untrained contractors hired by these agencies do a careless half baked job of repairing the dug out portions. They do not bother with compaction or ensuring proper seal coat. With the first sign of water this becomes the starting point of the pothole. Arlem Circle has a Reliance Tower and a sewerage line passing next to it. This one example clearly shows the effect of road engineering and the fact that repairs are done by unskilled contractors leading to huge potholes and draining the exchequer.

Check the new concrete road in front of the Bambolim cross, it is supper bumpy. Imagine what will happen when the speed on that stretch increases once  the road opens, who has certified it today as fit for use? You can check the roads you use and post pictures on social media to highlight these issues.

The last factor that effects road quality is greed. Everyone looks at the PWD roads division as a money spinner and thus it is an “in demand” portfolio. This can only be curbed by insisting on multiyear guarantees for roads. General public will have no issue who makes money if they have a good porthole free road to ride on.

The lessons that can be learned is that road contractors must be held responsible for the roads they build, say three years guarantee and if any potholes develop they must repair the same free of cost. They must also write their name prominently besides the road they build.

It is a well known fact that in order to meet the lowest tender prices compromises are made in specifications which are glossed over when preparing the measuring sheets. Hence, tender specifications must be easily available so that in case of failure, it can be easily checked by any independent body. Eg: thickness of asphalt layer or water logging.

Any agency digging up the roads must ask PWD for permission and pay an amount sufficient to repair the road using proper road contractors, preferably the same contractor who built the road in the first place so there is no possibility of a blame game.

The effect of the heavy rains was plain to see and human errors and greed have made Gods rain a pain.