Biz@Blaise: Land A Scare Resource

Recently a government official mentioned that a search was on for 450 odd acres of land for the proposed NIT. This requirement was getting to be very difficult to meet because the conditions were stringent, even the area earlier ear marked for the proposed sports city was not good enough.

The question is, who decides how much land is required for a particular project and do these people factor in the area that they are looking at. The fact that IIT Mumbai has 1000 acres or that BITS Goa is built on something similar forms the basis of such indents for land? Is availability not a factor, can Goa and and other State we looked at in the same way?

The land given to IIT in the early 60's was in an area in Mumbai where at that time no one would have believed was habitable. If you pass by IIT Mumbai, you will see low rise housing occupying what is now prime property. Surely if IIT Mumbai was being set up today, it would have been done with a much smaller piece of land but with the same standard of excellence. Infact across the road from IIT, Hirandani's have built tall buildings housing many more people in less land compared to the IIT. BITS Goa, developed the new campus keeping in mind the fact that the land had been left vacant for so long it was a sitting target for acquisition. Magarpatta township in Pune, is an example of win win acquisition, it is teeming with housing, schools and offices, it occupies 450 acres.

So if we need to set up an institute of excellence, will 50 acres or even less not be sufficient. The max no of students would be 5000 at the peak, assuming a teacher student ratio of 1:20, another 1000, another 1000 for support, giving a total of 7000 people housed in 50 acres. The numbers are on the higher side but even then it allows sufficient space. Some top institutes around the world will boast of being built on a much smaller footprint. So those planning the NIT should factor in Goa's paucity of land and come up with innovative designs that will require less land and still enable it to be a center par excellence. That way there will be less or no resistance from locals.

The continued acquisition of land for industry is causing angst among land owners. There is no doubt that land is required for industry. One possibility is that far sighted planners are acquiring and keeping lands for future industry. However this is not the case, the acquisition is for setting up industry today. This despite the fact that there are already acquired and allotted lands lying unused. Should utilising these vacant unused factories or buildings be a priority. The acquired land in industrial estates is allotted at concessional rates to entrepreneurs to start industry which will in turn employ people gainfully and contribute to the tax kitty which in turn will help development. Keeping them locked is not helping the objective.

Therefore the GIDC which is the nodal agency should consider ways and means to make these unit operational. One way would be to consider applying a non operational tax on all closed units so that they are forced to either restart or transfer in favour of someone who has an idea and wants the space. After all a closed unit is a white elephant, it neither contributes to the exchequer nor employs anyone. Under the watch of the previous Government, because the focus was on individual rather than the State, all industrial land was usurped by traders and utilised to store cement or steel and even tiles. Cost of land in the cities was far higher than even the unofficial price in industrial estates. In Margao for example if a sq mt was 20000/- + in the Verna Industrial Estate the unofficial price was just 4000/sqm. Cheap, if one was looking for godown space, but expensive if one was thinking of setting up a factory. The net result we have a corporate office, godowns by the dozen and even a bungalow in the industrial estate.

Maybe it is time to reconsider what we are acquiring land for, rather than say for only manufacturing we should also include services, IT/ITES financial services, where a single building will accommodate many more employees and contribute more tax revenues. This would be more efficient use of scarce goan land.

For Goa and goans, land is a scarce resource and should be treated that way. Every effort has to be made to get maximum value using minimum land. We always wish and look at Singapore as a model to be emulated. Singapore's educational institutions are now being recognised around the world and they do not have 450 acres each. The industrial activity in Singapore is something to be talked about and it coexists happily with the services industry. It is time our political setup began to think more in terms of Goa and not “self or party” Its time people start asking how development can be achieved using limited resources efficiently. If this happens, Goa will be a better land.

Biz@blaise: Make In India, who benefits

Recent a senior member of the village of Verna which is next to  the largest industrial estate in Goa, stated that the village gets no benefits as even the youth are not getting employment in the industrial estate. With “Make in India” fast becoming a mantra and every State government falling over themselves to attract investors, this issue needs to be looked at quickly; else resulting agitations will have their effect.

Being closely involved with Verna Industrial Estate and also having my origins in the Verna Village, there is an excuse to comment on the situation. I do not agree with my fellow villager. The village is benefiting from the existence of the industrial estate, what is debatable is the kind of benefit they are deriving. However it appears tgey have made a choice. Even turning a blind eye to the happenings is a choice.

Years ago, the Association office bearers were summoned by the Governor of Goa. Goa was then under Governors rule and a few concerned villagers had complained that the industry was affecting the demographic makeup and also having a negative influence on the villagers. The employees of the companies located in the estate were residing in the village and as such beginning to outnumber the local population. They also felt that since there were only men, they were getting involved with the local girls and cases of cheating were reported.

The situation from their point of view has worsened and the causes which at that time were raised as solutions were not and remain unaddressed.

Industry by nature needs manpower. They do not look at where a person resides or is from before giving the job, they look for ability and willingness to do the job. The employee on the other hand prefers a job closer to home. If his home is far away he moves closer to his place of work to avoid commuting. That is why in Goa a lot of ancestral homes are empty in the village as the owners prefer to stay in the city close to schools and workplace.

The employees today come from other States, they get jobs in the Industrial estate and they go to the nearby areas and look for accommodation. For the residents of the nearby areas in this case Verna Village it offets an easy source of income, renting. As demand increases, almost every household begins to first rent the spare rooms inside their house and then build rooms in the open space in the compound to increase the capacity. Some encroach on available  open space and build there.

None of these rooms have adequate sanitation, electricity or water provisions and usually all of them flout the panchayat rules and building laws. As is expected, the occupants work hard in the factory and come and pay the rent to the landlord who I assume is still local. The landlord, earns his money without moving a muscle. If he worked eight hours in a day in the factory he would earn less. Given this situation, can we say that the benefit of the industrial estate in not coming to the local.

The local then argues but these outsiders work for very cheap rates. Assume that this is true. Who is aiding this action, the local? How? They make the cost of the room cheap by adding more rooms, reducing the space and not providing facilities. Then since staying is cheap the employee can accept a lower salary. If the accommodation was not available nearby he would have to go farther away and they the job is not so lucrative as transport cost kicks in.

Assume, that all building bye laws were followed, and then the amount of rooms available would definitely be reduced. The cost would increase as the landlord would have to provide sanitation importantly, FSI would have to be maintained, taxes would have to be paid to the panchayat etc., naturally the employee would then demand a higher salary from his employer. This higher rate may be more acceptable to the local living in the area. If you see the type of outsiders living in Verna, they are mostly working class with no great skill sets, so that means either the locals do not want that job or have a better alternative, currently it is renting.

The other issue that gets raised is social interaction. Having invited the men to stay in your house or compound and then not expecting a social interaction between the men and local women is akin to what Hillary Clinton said to Pakistan leadership, you cannot keep a snake in the backyard and expect it to bite only the neighbours. They are many instances of the women folk eloping and later being robbed and abandoned in the State the male worker originated from. There could also be some happy endings too.

Open defecation causes another major concern. Again if the building bye laws are followed, a toilet within the premises would be a must. If a landlord keeps more tenants, correspondingly more toilets would be needed. Is the panchayat looking at these aspects, are the locals demanding this from the panchayat? Or is it easier to go hammer and tongs at the industrial estate and create and us versus them syndrome and gain brownie points. Why is no one asking what is done with the funds collected from the taxes paid by the industry to the panchayat. Does that money not help develop the village? Penalising people if they defecate in the open or dump garbage is closing the stable door after the horse has bolted. Why not enforce the requirement of toilets?

The situation needs to be addressed quickly across Goa, with the Government working hard to make Goa an aspirational investment destination.