State Industrial Profile of Goa

Prepared under Action Plan 2000-2001

Foreword

Selected Economic Indicators of Goa & All India

Important Economic Activities of The State

Financial Institutions And Banking Facilities

Development in the Services Rendered by S.E.S.I.

Development Services Rendered by State Government

Availability of Material Resources and Industrial Growth.

Scope for Development of Primary Sectors like Agriculture, Fishing, Farming etc. and its likely impact on growth of small scale industries.

Scope for New Industries

Notification 


 

FOREWORD

 Small Industries Service Institute, Margao-Goa was assigned preparation of State Industrial Profile under the Action Plan Activities for the year 2000-2001. The State Industrial Profile has been prepared after collecting, collating and compiling all relevant information and data, which have been duly analysed and incorporated in the profile. The Profile contains such information as Present Status of Industries in the SSI Sector and its growth over the years, Industrial Infrastructure Facilities, Concessions and Incentives offered to Small Scale Industries from the Central Govt., and the Govt. of Goa, Forest, Mineral, Marine, Livestock Resources etc., Role and performance of State and Central Govt., Agencies including Financial Institutions and Banks, Scope for new industries etc and the draft New Industrial Policy of the Govt., of Goa. The Profile provides vivid information on these areas. Entrepreneurs, Developmental agencies and Policy Making Bodies shall find the Profile informative and useful.

I would like to place on record the hard and dedicated effort put by Shri Shivanand F. Bachagundi, SIPO(EI), in preparing this Profile.

 

Sd/-

R K SARKAR

Director

Margao

12-06-2001


 Selected Economic Indicators of Goa & All India (1991 census)

 

 

Goa

All India

Area (‘000 sq kms)

3.7

3287.0

Population (lakhs)

11.7

8463

Density of population

316

274

Percentage of urban population

41

25.7

Decennial growth rate of population

16.08

23.85

Proportion of Scheduled Caste population to total population

2.08

16.48

Proportion of Scheduled Tribe population to total population

0.03

8.08

Percentage of Agri., workers & labourers to total population

23.94

64.81

Livestock per thousand population

301

631

General Literacy rate

79.5

47.7

Birth rate

14.3

28.7

Death rate

6.5

9.3

Natural Growth rate

0.78

1.94

Per Capita Income at current prices (1994-95)

14,736

8,237

At 1980-81 prices

5,341

2,401

Per Capita deposits of scheduled banks

10,617

2,008

 

 I. INTRODUCTION

 A. Geographical & Physigoraphic feature, etc.

  Goa, the 25th state of the Union of India with a geographical area of 3702 sq. kms, is one of the smallest states of the Indian union. The state lies along the Western Coast (Konkan Coast) 600 kms., South of Bombay and 300 kms., north of Mangalore. The state is bounded on the north by the river Teracol, which separates it from Sindhudurg district of Maharashtra State; in the east and south by Belgaum and Utthar Kannada districts of Karnataka State respectively; and in the west by Arabian SEa.

The physiographic characteristics are rich and varied consisting of verdant hills, forests, coconut groves and rich fields. The soil in general is laterite.

  1. Climate

The climate of Goa State is warm and humid. During June-September months heavy rainfall is received from the southwest monsoon which ranges between 3000 mm to 3400 mm. The temperature ranges from 220C during summer months

C. Administrative set up

For administrative convenience, the state is divided into two districts viz. North Goa and South Goa, each under the administrative control of District Collector. The districts are further divided into 11 talukas i.e. 6 under North Goa district and 5 under South Goa district for the sake of revenue administration, each headed by a Mamlatdar. For developmental purposes, the state of Goa is divided into 10 community development blocks each headed by a Block Development Officer. There are 185 village panchayats in the state.

D. Demographic Features

The state of Goa with a geographical area of 3702 sq. kms has a population of 11,68,622 as per 1991 census. Out of this, 5,93,563 are males and 5,75,059 are females. Sex ratio has been found 964 females for 1000 males. Density of population of the state is 316. The overall Literacy rate is 79.96%. Literacy among males is 85,48% and 68.20% among females. As per State Government estimate for the year 1997-98, the male literacy is 83.6% where as the corresponding figure for the females is 67.09%. Goa is second only to Kerala as far as literacy rate is concerned. Decennial (1981-91) growth rate of population of the state is 16.86%, which is one of the lowest among all the states. The number of main workers is about 3.82 lakhs, which is 32.72% of the total population, whereas marginal workers account for 29,264 i.e. 2.5% of the total workforce. Cultivators account for 14.7% and agricultural labourers account for 9.20% of the total work force. Household industry is 3.38% while a substantial portion of labour force i.e. 72.65% is engaged in manufacturing, construction, mining, transport & communication, plantation, livestock, fishing etc.

 

II. IMPORTANT ECONOMIC ACTIVITIES OF THE STATE

A. Agriculture

By employing about 21% of the total work force, agriculture is one of the dominant economic activities of the state. As per the state Govt. estimates for 1999-2000, out of the total reporting area of 361113 hectares, 171456 hectares i.e. 40% of the area is under cultivation of various crops. Paddy, coconut, cashewnut, cereals, millets, jawar, areca nuts, sugarcane, etc. are the important crops of the state. Contribution of agriculture along with live stock to the Net Domestic Product (NDP) of the state, as per the Economic Survey 2001 conducted by the State Govt. is only 15%. The decline in contribution from primary sector is attributed to static agricultural production decline in fish catch, falling output from forest sector etc. Goa State is heavily depending on neighbouring states for food grain, cereals, vegetables, etc.

The Salaulim dam provides irrigation to a command area of 11,749 hectares in south Goa. Anjunem irrigation project provides irrigation facilities to 2100 hectares. The Tillari dam under construction, as joint venture between the State of Goa and the State of Maharashtra is expected to irrigate 16,978 hectares of land in North Goa.

 

B. Mining & Quarrying

The state of Goa is rich in mineral resources like iron ore, ferro manganese, and manganese. The mines were allotted by a Portugal decree. These were later cancelled and converted into leases in 1987. The total area leased out for mining is 31810 hectares and an area of 8172.66 hectares is in operation. The iron ore deposits of the state are estimated to be about 1982.5 million tons as on March 1997. The annual iron ore production of the state is about 17.62 million tons and accounts for more than one third of the country’s production of this material. Export of iron ore brings valuable foreign exchange to the tune of Rs. 915.82 crores (1997-98) per year to the country. As per estimates of 1999. 153.60 lakh tons of iron ore, is exported. While export of other minerals is not much, say, 0.15 lakh tons of Manganese ore (1997), 0.58 lakh tons of ferro manganese and 0.80 lakh tons of pallets. It also provides employment to large number of work force. The production of ferro manganese as on March 1998 and that of Bauxite is 28,000 tons is reported to be 20178 tons.

C. Manufacturing

The state of Goa has made great strides in manufacturing sector. Due to the availability of infrastructure facilities at a cheaper cost, disciplined and educated labour force and liberal incentives and concessions offered by state and Central Governments, a number of entrepreneurs from within and outside the state have established large, medium and small scale units in the state. There are about 100 large and medium scale units and 949 registered small-scale units in Goa as on March 2000 producing a variety of products. The value of production of industrial sector is estimated to be about Rs.60,000 lakhs. Employment in this sector is more than 40000. The contribution of manufacturing sector is estimated to be 25% to the NDP, as per the Economic Survey Report, 2000-20001.

D. Fishing

Fishing is an important economic activity of the state. The state of Goa being located in the West Coast of India has a coastline extending over 100 kms. and inland waterways of another 250 kms rich in marine wealth. Prawns, the valuable foreign exchange earner, mackerels, sardines, etc. are available in plenty in Goa coast. The total fish catch for the year 1998-99 has been estimated by the state Government at 60075 M. tons valued at Rs. 7,860 lakhs. The corresponding figure for inland fish catch is 3304 tons and Rs. 1156 lakhs respectively. A few more small-scale units based on fisheries resources like salt curing of mackerels, fish meal, fish oils, dehydration of fishes etc. may be considered for the state.

E. Forestry

The state of Goa is endowed with rich forests. 1224.38 sq. kms or 29% of the total geographical area of the state is under forests. State Government has banned cutting trees and prohibited poaching in forests as a measure to conserve forests. Wood based industries are not encouraged in this state. There are 483 registered small-scale units manufacturing various wood based products as on March 2000.

 

F. Transport & Communication

Goa is perhaps one of the few states in the country where the tertiary sector has developed faster than primary and secondary sectors. The state has well-developed transport and communication facilities. Roadways are comparatively well developed throughout the state with proper linkages. National Highway No. 17 linking Cochin and Bombay passes through the state connecting major towns. The recently commissioned Konkan Railway connecting Bombay to Mangalore traverses the entire length of the state, which is considered as a blessing to the state especially to the growth of trade & industry. The Rajadhani Express between Trivandrum and Delhi via Goa has also started with a frequency of twice in a week. The meter gauge rail between Castlerock to Mormugao-a distance of 79 kms has already converted to broad gauge. Train services have been resumed on this track, with a daily train to Delhi form Vasco and another train to Vijaywada from Vasco, twice in a week. Direct train service from Goa to Bangalore is expected to resume by the end of July 2001. The important rivers Mandovi, Zuari, Sal and Chapora are navigable and provide a network of inland waterways. There are regular air services to Delhi, Bombay, Bangalore, and Cochine by Indian Airlines and other private airlines. Goa’s Dabolim Airport happens to be one of the few destinations in India, where International Charters flights and AIR India and Indian Airlines International flights are allowed to land. Transport and communication including trade, tourism, Hotels and restauant etc. are very important for the state economy which is evident from the fact that contribution to the regional income from this sector is estimated to be more than 20%.

Banking, insurance real estate, ownership of dwelling, public administration and other services account for about 25% of the total regional income of the state.

The Economic Survey 2000-2001 states that the tertiary sector has registered a growth rate of over 10% during the period from 1993-94 to 1999-2000. This growth is mainly due to contribution from trade, hotels & restaurants, banking and insurance sector.

G. Tourism

Tourism is one of the important economic activities of Goa State. Construction of Hotels, motels, restaurants, operation of tourist coaches, etc. are eligible for concession finance and other incentives. Goa can boast of some of the beautiful beaches of South East Asia. Beaches, temples, churches, and wild life sanctuaries are famous tourist spots and attract a number of Indian as well as foreign tourists. The demand for declaration of tourism as an industry if implemented will further boost the tourist inflow into Goa resulting in more income to the state as well as enhanced employment opportunities.

 

III. FINANCIAL INSTITUTIONS AND BANKING FACILITIES

Banking facilities are very well developed in the state of Goa. There are 286 branches of various scheduled banks, as on 31st March 1998, in the state with a deposit of Rs. 62031531 thousands. A sizeable number of 117 branches are there in the cooperative sector. On an average, there is a bank branch for every 3301 persons as per the provisional estimation for the year 1996-97. Credit ratio to the total deposits (C/D ratio) is 31%. The main reason for low C:D ratio is deposits form the NRIs. If deposits from NRIs are excluded, the C:D ratio would shot up to 50%.

Advances to industries by commercial and private banks is to the tune of Rs. 180,47,797 thousand during the year 1999-2000. The share of cooperative banks out of total advances to industries is to the extent of Rs. 975,05,798 thousands for the year 1999-2000.

Further, Economic Development Corporation, Khadi & Village Industry Board, Maharashtra State Finance Corporation supplement the efforts of commercial/cooperative banks in financing various sectors of the economy. Tiny & Cottage sector units are also financed under government sponsored schemes like PMRY, SGSY, RDA etc.

Further, Goa state SC/ST/OBC Finance & Development Corporation and Goa State Social Welfare Board also finance for business, service & industry ventures through their financing schemes aimed at specific target groups.

 

IV. AN OVERVIEW OF THE DEVELOPMENT OF SMALL INDUSTRIES

After liberation and with the introduction of planned economic development, the state has made rapid strides in the field of small industry development. An overview of the growth in the number of registered small-scale units in Goa since 1974 is given in the following table.

Years

No. of S.S. Units registered

Employment (persons)

Investment

(Rs. lakhs)

Prior to 1974

686

4811

1202.633

1974-78

388

3110

869.25

1978-81

373

2655

536.66

1981-86

1145

8881

1227.62

1986-88

679

3200

1247.58

1988-90

653

3479

2110.13

1990-91

196

1192

472.76

1991-92

224

1131

929.05

1992-93

214

1213

993.02

1993-94

229

1246

1273.00

1994-95

208

1124

975.46

1995-96

123

1094

1204.31

1996-97

160

336

2322.20

1997-98

210

2262

2653.36

1998-99

277

2698

3491.55

1999-200

184

1365

2350.49

Total

5949

40797

24259.07

Source-Direct orated of Industries & Mines, Panaji.

It is seen from the above table that since 1974 the growth of small-scale units in the state is phenomenal. Number of small-scale units more than trebled during 1981-90 period. Product wise details of small-scale units established in Goa State as on 31-3-98 are given in the following table on the next page.

Sl. No.

Product Group

North Goa

South Goa

Total

1.

Food products

700

400

1100

2.

Beverages & Tobacco products

210

169

379

3.

Jute, Hemp & Mesta Textile

4

5

9

4.

Textile Products & Garments

135

67

202

5.

Wood Products & Wooden Furniture, Fixture

303

180

483

6.

Paper Products including Printin/publishing

310

187

497

7.

Leather & Leather Products

18

6

24

8.

Rubber, Plastic, Petroleum and coal products

271

171

442

9.

Chemical Products (except petroleum and coal products)

247

123

370

10.

Non Metallic Minerals

196

202

398

11.

Basic Metal & Alloys

75

48

123

12.

Metal Products & parts (except m/c. & transport. eqpt.)

528

349

877

13.

Machinery, Tools & Parts (except electl. M/c.)

32

24

56

14.

Electrical Machinery & Apparatus & Supplier Parts

238

129

367

15.

Transport Equipment & Parts

34

61

95

16.

Other Mfg. Industries

75

36

111

17.

Repair/Services

254

162

416

Total

     

Source-Direct orated of Industries & Mines, Panaji.

It can be seen from the above table that 5949 small-scale units manufacturing various products have been established in Goa state as on 31-3-2000. Among the product groups, units manufacturing food products are predominant group with 1100 units. The next dominant group is metal products and parts wherein 877 units have come up. Paper, Paper products including printing with 497 units & Wood & wood products also with 483 units occupy the third and fourth place respectively. There are 442 units in the category of rubber and plastic products, 398 units are engaged in nonmetallic minerals and 370 units in chemical & allied products. 367 units have come up in the line of electrical equipment and appliances, electronic products, etc.

Investment in machinery & equipment of the small-scale sector is about 25,000 lakhs employment generated by this sector in this state is about 40,000. There is no cluster growth of industries in the state of Goa.

 The Real Picture:

As per the above tables, total number of registered SSI units is nearly 6000. It does not mean that all these registered units are functioning. The Directorate of Industries and Mines, Govt. of Goa, in association with the Goa Small Industries Association, has brought out a Directory of functioning SSI units in the State of Goa. As per the Directory, the total number operating SSI units as at the end of March 1997 was 3,211. During the year 1997-98, 210 units were registered, in 1998-99, 277 units were registered and in the year 1999-2000, 184 units have been registered. If we presume that the units registered during the preceding three years (i.e., 1997-98, 1998-99 & 1999-2000) are functioning, the total number of registered functioning units comes to 3882. The following table gives an idea of registered functioning units, product-wise:

 

Sl.No.

Product Group

Units at

31-3-97

Units regd. During

Total at 31-3-2000

1997-98

1998-99

19992000

1.

Food products

634

18

45

23

720

2.

Beverages & Tobacco products

181

11

15

14

221

3.

Jute, Hemp & Mesta Textile

1

1

Nil

Nil

2

4.

Textile Products & Garments

80

6

6

7

99

5.

Wood Products & Wooden Furniture, Fixture

252

14

13

15

295

6.

Paper Products including Printin/publishing

328

18

27

15

388

7.

Leather & Leather Products

Nil

Nil

Nil

Nil

Nil

8.

Rubber, Plastic, Petroleum and coal products

260

13

23

12

308

9.

Chemical Products (except petroleum and coal products)

159

23

21

14

217

10.

Non Metallic Minerals

174

17

31

14

236

11.

Basic Metal & Alloys

103

3

14

11

131

12.

Metal Products & parts (except m/c. & transport. eqpt.)

458

30

35

27

550

13.

Machinery, Tools & Parts (except electl. M/c.)

22

1

Nil

9

32

14.

Electrical Machinery & Apparatus & Supplier Parts

114

21

32

12

179

15.

Transport Equipment & Parts

33

6

4

4

47

16.

Other Mfg. Industries

117

2

2

2

123

17.

Repair/Services

295

26

9

5

335

Total

3211

210

277

184

3882

 

From the above table, it evident that there are 697 units in the Food Products range. Metal products and parts with 550 units occupy the second place. There are 383 units manufacturing paper products including printing and publishing. However, in both the cases, i.e., number of units registered and the number of functioning units, food processing units are leading the table, emphasizing the development of food based industries in the State.

The table throws light on the closure and sickness of SSI units also. Out of almost 6,000 units registered with the Directorate of Industries, more than 2,000 units are non-operative. It means that these units have been closed down their operations or have become sick. Sickness of industries results in building up of capital investment made in fixed assets, which blocks availability of funds for investment for other ventures. Following table gives an idea of sickness in SSI sector:

Particulars

As at the end of September 2000

No. of units

Amount outstanding (Rs. in lakhs)

Total No. of sick units

220

1497.90

Units viable

37

422.18

Units non-viable

182

1055.98

Units on which decision is yet to be taken

1

19.74

Of viable, units put under the nursing prog.

8

118.19

Others

29

303.99

Source: Rural Planning & Credit Department, RBI, Mumbai

For the above table it is clear that even though about 2,200 registered units are inoperative, no of units identified by financial institutions/approached by the units is only 220, leaving a big question mark about the remaining units. As pr the above table, even in case of 182 units found to be nonviable, an amount of Rs.1055.98 is blocked.

 

V. DEVELOPMENT IN THE SERVICES RENDERED BY S.I.S.I.

An office of the Small Industries Service Institute was set up in Goa in the year 1962 in order to render techno-economic and managerial consultancy services to the entrepreneurs of the Goa state. A common facility workshop in general engineering attached to the above office is located in the premises of S.I.S.I., Quepem Road, Opp. Konkan Rly. Stn., Margao.

The services of S.I.S.I. can be broadly classified into 4 viz. (I) Technical consultancy, (ii) Economic Investigation, (iii) Industrial Management & Training, and (iv) Marketing & related services. Various services under technical consultancy are given below:

    1. Guidance in setting up small scale industries
    2. Preparation of Project Profiles
    3. Techno Economic Feasibility Reports
    4. Appraisal Reports to Banks
    5. Information on machinery, raw materials, process etc. and its source of supply.
    6. Preparation of plant guides, modernisation guides, technology transfer documents etc.
    7. Inplant study reports.
    8. Assessment of capacity of units using controlled raw materials and fuels
    9. Seminars, Workshops, Clinics, Awareness Programme and studies on modernisation, technology upgradation, quality control, ISO-9000, BIS certification, pollution control, Energy conservation etc.

Certain services like Techno Economic Feasibility reports, in-plant study reports, assessment reports etc. are chargeable at moderate rates.

Work-shop Facilities:

A general engineering workshop renders common facility services in various engineering trades like turning, milling, drilling, grinding, power hacksaw, shaping etc. Recently under its modernisation programme the workshop has acquired CNC EMD-Wire cut machine. The workshop undertakes job works from small-scale untis.

In addition, following Skill Development Programmes are conducted in the workshop:

    1. Fitters Trade
    2. Machine shop Practice

Industrial Management & Training:

a) Entrepreneurship Development Programmes (EDP) of one month duration are conducted by the IMTA Division. Some of the trades on which product oriented EDPs conducted are:

    1. Beautician
    2. Screen Printing
    3. Dress Designing and Fashion Designing
    4. Fruit & Vegetable Processing/Preservation
    5. Manufacture of Bakery items
    6. TV/Audio/Video Repairing/servicing

b) Motivational Campaigns

c) Short Term Management Training Programme for small scale entrepreneurs in the following areas:

    1. Marketing and sales management
    2. Financial management
    3. Industrial legislation
    4. Production Planning and Control
    5. Packaging
    6. Export

 

d) Implementation of prime Minister’s Rozgar Yojna

Training for PMRY beneficiaries.

Economic Investigation Services:

a) Economic information to set up small scale industries

b) Market information

c) Industrial Potential Survey Reports

d) Industry Survey Reports

e) Sick Unit Study Reports

f) Statistical Information

g) Census/Sample survey of small scale industries

h) Directory of small scale units

i) State Industrial Profile

 

Ancillary Development/marketing & Extension Services

a) Buyer seller Meet

b) Exhibition of Ancillary products/Ancillary seminars

c) Directory of Ancillary products

d) Single point registration with NSIC

e) Dissemination of market information regarding DGS&D tender bulletins

f) Information regarding trade fairs in India and abroad

g) Sub-contracting Exchange

 

SENET User Centre

The Institute is connected to Small Enterprises information and Resource Centre Network through dial up networking. Through this user network, one can access information on technologies, Govt., policies, export import data etc, through in house data base. The SENET also has access to international data banks, Internet and data sharing arrangements with the most of the national level scientific, research & financial organisations.

 

VI. DEVELOPMENT SERVICES RENDERED BY STATE GOVERNMENT

 A. Directorate of Industries & Mines.

 Directorate of Industries & Mines, Panaji was formed in Goa in the year 1963 as an apex body to frame polices and to implement the same pertaining to the overall industrial development of state. Disbursement of investment subsidy, margin money loan, financial assistance under state aid to industries, allotments of scarce and controlled raw material quota, import of capital goods and raw materials etc. are looked after by the Directorate. The Directorate has opened a branch office at Margao to look after the interest of South Goa district.

 

B. District Industries Centre

 District Industries Centre, Goa was established in the year 1982. Even after the division of state into two districts, one DIC continues to cater to the interest of both the districts. Issue of provisional & permanent registration certificates, rehabilitation of sick SSI units, extension services, training of entrepreneurs, implementation of PMRY Scheme etc are undertaken by DIC Goa. The details of PMRY Scheme are given below for the year 1999-2000.

Target

No.of applications received

No. of applications recommended

Sanctioned

Disbursed

Applications rejected/

returned

Applications pending

No.

Amount

(Rs.’000)

No.

Amount

(Rs. ‘000)

600

766

800*

470

44723

365

34463

232

98

* Includes applications carried forward from the previous year

Source: SBI, Lead Bank,

State Finance Corporations:

Two State Finance Corporations are functioning in the State of Goa. Maharashtra State Finance Corporation (MSFC) has a regional office in Panaji and, the Govt., of Goa has set up Economic Development Corporation (MSFC) has a regional office in Panaji and, the Govt., of Goa has set up Economic Development Corporation (EDC), Ltd., in the year 1973. FDC and MSFC extend financial assistance to medium scale, small scale, tiny and cottage sector industries, hotel projects, transport operators, fishing trawlers, etc. through a number of schemes suiting to different category of entrepreneurs like composite loan scheme, single window scheme, educated unemployed scheme, Technocrat assistance Scheme, soft loan scheme to electronic units, assistance for modernisation of small & medium industries, rehabilitation of sick units, seed capital scheme etc.

The physical performance of MSFC and EDC are given below for the year 1999-2000.

Advances by EDC

Sanctioned

Disbursed

No. of cases

Amount (Rs. in lakhs)

No. of cases

Amount (Rs. in lakhs)

2358

19776.62

NA

13085.88

 

Advances by EDC to Industries (1998-99):

Sanctioned

Disbursed

No. of cases

Amount (Rs. in lakhs)

No. of cases

Amount (Rs. in lakhs)

243

12,635.30

NA

8,326.51

 

D. Goa Industrial Development Corporation

Goa Industrial Development Corporation (GIDC) was established by Goa State Government primarily to construct Industrial Estates and to develop industrial plots and industrial areas. So far GIDC has developed 18 industrial estates, constructed more than 700 industrial sheds and developed about 1500 industrial plots. There is at least one industrial estate in all the talukas of the state. Further, a growth centre under integrated infrastructural Development Scheme is under implementation in pernem Taluka in the North Goa district.

Following table gives the estate-wise details of plots, sheds, allotment and availability of plots and sheds, as at the end of March 2000.

S.No.

Name of the Estate

No. of developed plots

No. of developed sheds

No. of plots allotted

No. of sheds allotted

Availability of plots

Availability of sheds

Existing rate per sq. mtr (in Rs)

1

Corlim

81

76

81

76

-

--

--

2

Margao-Phase-I Phase-II

23

99

23

99

--

--

--

3

Sancole

248

92

164

92

--

--

175

4

Mapusa

16

30

16

30

--

--

175

5

Tivim

63

89

63

89

--

--

--

6

Bicholim

73

72

73

72

--

--

--

7

Honda

30

31

26

31

4

--

--

8

Bethora

83

41

83

41

--

--

--

9

Kundaim

342

72

327

72

15*

--

150/-

10

Canacona

58

28

58

28

--

--

--

11

Tuem

62

22

45

22

17

--

--

12

Kakoda-Phase-I

Phase-II

Phase-III

39

3

66

45

--

--

39

3

--

45

--

--

--

--

--

--

--

66

--

--

400/-

13

Verna

396

6

--

6

346

--

375/-

14

Cuncolim

200

6

186

6

14

--

--

15

Pilerne

125

--

125

--

--

--

225/-

16

Marcaim

129

--

99

--

25

--

225/-

17

Colvale

28

--

7

--

21

--

--

18

Piisurlem

168

--

5

--

163

--

--

Source: GIDC, Panaji & respective field offices in the Indl. Estates

* Available plot cannot be used due to HPCL plant

 

E. Goa Handicrafts Rural & Small Scale Industries Development Corporation (GHRSSIDC)

GHRSSIDC was set up in November 1980 to assist small scale units in meeting their requirements of scarce and controlled raw materials and providing marketing support. GHRSSIDC manages a product cum Training Centre for artisan and craftsman also. Following are the activities and performance of GHRSSIDC.

1. Procurement & distribution of scarce raw material such as iron & steel, plastic, Zinc, lead etc, through its network of godowns located at Margao, Bicholim, Corlim and kakoda Steel Stock Yard. During 1-4-99 to 31-12-99, the corporation has supplies raw materials worth Rs. 5,769 MTs valued at Rs. 1,292 lakhs.

2. To render marketing assistance to SSI units by participating in tender marketing and supply items like furniture, polythene bags, RCC pipes etc to Govt. departments and Semi Govt./Autonomous bodies. During 1-4-99 to 31-12-99, the Corporation has supplied items worth Rs.74 lakhs, under this Scheme.

3. To run sales counters and handicrafts emphoria for the products of handicraft items at Panaji, Vasco, Margao, Calangute, Dabolim Airport & Craft Complex, Panaji. The Corporation has sold handicrafts worth Rs. 24.28 lakhs during 1-4-99 to 31-12-99.

4. To supply goods/items under preferential puchase Scheme

5. To organize and participate in Exhibitions and Fairs.

 

F. Khadi & Village Industries Board & Commission

An office each of the KVIB and KVIC are functioning in Goa in order to extend consultancy, financial and marketing support to the industries manufacturing a number of products classified under KVIC.

The physical performance of Margin Money Scheme of KVIB and KVIC for the year 1999-2000 is given in the following table:

KVIB Scheme:

No. of Applications sponsored

Sanctioned

Disbursed

Applications Rejected

Applications Pending

No

Amount

(Rs. lakhs)

No

Amount

(Rs. lakhs)

57

48

7,698

44

6,320

3

6

 

KVIC Scheme:

No. of Applications sponsored

Sanctioned

Disbursed

Applications Rejected

Applications Pending

No

Amount

(Rs. lakhs)

No

Amount

(Rs. lakhs)

79

75

12,617

73

12,212

0

4

 

 

G. National Small Industries Corporation Ltd.

A branch office of the National Small Industries Corporation Ltd. Has been functioning in Goa since 1988. NSIC supplies plant & machinery to small-scale units on hire purchase/lease and assists them in marketing through single point registration. NISC also provides raw material assistance, discounting supply bills, provide working capital finance, export development finance, training & technical assistance in prototype development. Performance of NSIC for the year 1999-2000, is given the following table:

Name of the Scheme

Performance during 1999-2000 (Rs. Lakhs)

Raw material assistance

267.28

Bill Discounting

197.17

Internal marketing

20.65

Total

485.65

No. of units regd. Under GPCC

2*

* 32 units have been registered under Govt. Purchase Programme so far.

 

H. Tool Room & Training Centre

A tool room has been established at Kundaim industrial estate under United Nations Development Progrmme offering training facilities in tool & Die making as well as common facility services in tool & die making to the industrial untis.

 I. ET & DC

Electronic Test & development Centre under Dept. of Electronics Govt. of India is functioning at Pilerne Indl. Estate offering testing facilities and training of manpower required for electronic industry. ETDC conducts training programmes also on topics like ISO 9000, Total quality management etc.

 J. Small Industry Development Bank of India

Small Industry Development Bank of India has been assigned the task of being the main purveyor of term finance to small-scale sector in the country. Small scale industrial units, artisans. Village and cottage industrial units in the tiny sector and small road transport operators are extended financial assistance mainly by way of refinance through primary lending institutions (PLIs), viz., State Finance Corporations (SFCs), State Industrial Development Corporations/State Industrial Investment Corporations (SIDCs/SIICs) and Banks. Term loans extended by eligible PLIs to small scale industrial projects, irrespective of the location and form of organisation, are eligible for refinance assistance from SIDBI.

A branch office of SIDBI is functioning at Panaji promotion, financing and development of industries in the small scale sector and for coordinating the functions of other institutions engaged in the similar activities.

Scheme wise sanction and disbursement from SIDBI, Panaji for the financial year 1999-2000 is given in the following table:

Amount Rs. in lakhs

Scheme

Sanction

Disbursement

Refinance

151.37

108.24

LOC in lieu of refinance

4287.03

4233.99

DDS (Equipment)

24.74

18.12

Short Term Loan

2000.00

2000.00

Project Related Financing

0.00

98.51

TDMF

15.00

0.00

Pre-Shipment Credit (PCFC)

429.35

604.65

Post Shipment Credit (FBF)

475.91

656.17

National Equity Fund

79.71

56.10

Assistance under promotional and Development

3.87

3.82

Total

7466.98

7778.8

Source: SIDBI, Panaji

K. Electric Power Supply

The regular and uninterrupted electric power supply is the basis of a strong infrastructure necessary for industrialisation. In the absence of any power generating stations, the state depends on the neighbouring states of Karnataka and Maharastra and National grid for its power requirements. Goa receives power from four main grids i.e. northern, southern, southern, western and eastern. Power is supplied to the state from Korba and Vidyachal NTPC stations. Power is distributed in the state through four major substations located at Porvorim, Ponda, Verna and Xeldm. Though Goa has been allotted 394 MW, due to the distribution constraints, the state has been using only 210 MW. Power breakdown and low voltage problems are the order of the day. The total power requirement of the State is estimated to be 300 MW, thus falling short of 90 MW.

However, the commissioning of the Reliance Salgaonkar Power Project Company Ltd (RSPCL), Goa’s first private power generating plant, helped the state to increase its power capability by another 40 MW, from 210 MW to 250 MW. The plant was commissioned on 5-7-1999 at Sancole.

 Captive Power Policy:

The Govt. of Goa, in the month of September 2000 notified the Group Captive Power Generation Policy with immediate effect, which would remain in force upto March 2002. The policy is brought into effect with the objective to further the industrial development. The power plants set up under the policy would normally not have a capacity f more than 25 MW and in case of Group Captive generating plant the capacity would not be allowed to exceed 75 MW.

The foundation stone for the Rs.182 Crore-400 KV- Kolhapur- mapusa transmission System, was laid down in the month of September 2000, which is scheduled to be completed within three years. This sub-station facilitates direct touch point from the central Power Grid to Goa. This will in turn improve the current scenario of low voltage and erratic electricity supply. The direct touch point from central power grid through this sub-station would enhance power transfer capacity up to 600 MW.

 

VII. Availability of material resources and Industrial Growth

Goa is endowed with important natural resources like fertile agricultural lands suitable for cultivation of paddy, maize, Jowar, bajra pulses, sugar cane, garden crops like coconut, cashew, arecanut, mangoes, jackfruits, bananas, pineapples etc. Forests, mineral resources like iron ore, manganese, ferro manganese, navigable rivers and long coastline rich in marine wealth and a natural harbour and clean and serene beaches which attract a large number of tourists from both within the country and abroad are the other important material resources. A brief analysis of the above resources will be helpful in identifying suitable products for selling up of Industrial Ventures under S.S. Sector by utilising these resources.

 (i) Agriculture

As stated elsewhere in the report agriculture is one of the important activities of the people of the state. 24% of the total work force is engaged in agricultural activities. 171453 hectares i.e. 39% of the total reporting area of 361113 hectares is under cultivation of different crops.

Paddy cultivation occupies the predominant position, which is cultivated to the extent of 56,713 hectares (99-2000) which works out to be 33% of the total cropped area followed by cashew which is cultivated in 53,292 hectares (99-2000) i.e. 37%. Cereals, millets and other pulses are cultivated in 11,427 hectares i.e. 10% of the total cropped area. 24780 hectares i.e. 17% of the cropped area is under coconut cultivation. Arecanul, sugarcane and vegetables are also cultivated in the state, though to a smaller extent. Mango is cultivated in 4,050 hectares, pineapple in 300 hectares and vegetables in 7550 hectares.

The production details of various agricultural crops in the year 1999-2000 are given in the table below:

1. Paddy

2,08,876 Tons

2. Ragi

1,070 Tons

3. Maize

800 Tons

4. Pulses

9,008 Tons

5. Ground nut

2,280 Tons

6. Sugar cane

68,440 Tons

7. Cashew nuts

17,274 Tons

8. Coconut

121.58 Million Nuts

9. Arecanut

1880 Tons

10. Mango

10,000 Tons

11. Banana

14,500 Tons

12. Pineapple

4500 Tons

13. Vegetables

70,000 Tons

14. Other fruits

66,000 Tons

Source: Directorate of Agriculture, Panaji

It is observed that agricultural production in the case of most of the important crops in the state is stagnating over the past 4-5 years. There has also not been any serious attempt to bring more and more area under cultivation. The state is deficient even in the case of paddy, which is predominant in terms of area under cultivation. 75% of the coconut production is consumed locally for domestic purposes and 25% is either sent to Bombay and other parts of Maharashtra state or used for coconut oil extraction. Coconut shell and husk is used as fuel. There is scope for setting up a couple of units for coconut shell powder, desiccated coconut, bottling of tender coconut water, refined coconut oil etc.

Cashew apple is utilized for processing ‘Cashew Feni’ by cottage/ small scale units and cashew nuts are used for processing kernels of sent to Mangalore. There is potential demand for cashew apple feni in neighbouring states and if permitted to market outside Goa, more units can be set up in this state in this line of manufacture. Few more units could be set up in cashew nut processing also for which there is good demand internally, as well as for export purposes.

Mangoes and pineapples are the two important horticultural crops, which are mostly consumed locally, and a small portion is marketed outside the state. A few units for the manufacture of Jam, Jelly, Squashes etc. out of Mango and pineapple may be considered in the state. Sugarcane production has been taken up recently and local production is not even sufficient to cater to the requirement of the only sugar factory in the state and it is reported that supplies from the neighbouring states meet 50% of the cane requirement of this factory.

Though agricultural sector provides livelihood to 24% of the total work force, its contribution together with livestock to the regional income of the state is only 15%. Thus agricultural sector is still at a subsistence level and not much surplus is created for industrial exploitation.

 

ii) Mineral resources

The state of Goa is rich in mineral resources like iron ore, ferro manganese and manganese. The iron ore deposits are concentrated in the northern and central parts in the talukas of Bicholim and Satari which is estimated to be about 150 million tons (50-60% Fe content) of lumpy ore and 250 million tones (60% Fe content) of powdery ore. The annual iron ore production of the state during 97-98 is 17.62 million tons and accounts for more than one third of the country’s production of iron ore. Excepting a very small part used for pelletisation, the entire production of iron ore is exported to various countries. Production of ferro manganese accounts for 20,178 tons during the year 1997-98. During the year 1999-2000, 15.14 mn. Tons of iron ore and 0.14 mn. Tons of manganese ore was exported.

 

iii) Fisheries

The state of Goa being located in the western coast of India has a coastline extending over 100 kms. and inland waterways of another 250 kms. rich in marine resources. Marine products like prawns and sardines in addition to other varieties are available in plenty in the Goa coastline. Huge shoals of mackerels and sardines regularly visit the shores of Goa and yield bumper catch. These two types of fish account for about 70% of the total catch in the state. Catfish, seer fish, scianeoides etc. are the other important varieties found in Goa. Annual marine fish-catch in Goa is estimated to be 60,075 tons valued at Rs.7,860 lakhs for the year 1999. The inland fish catch is estimated to be 3304 tons valued at Rs.1,156 lakhs for the corresponding year.

Item-wise export of marine products from Goa during 1999-2000 is given in the following table.

Item

Quantity (Tons)

Value (Rs. crores)

Fr. Shrimp

90

3.07

Fr. Squid

368

3.23

Fr. Cattle fish

1656

8.74

Fr. Fish

7544

21.51

Total

9658

36.55

 

In order to increase the fish production, mechanisation has been introduced on a large scale and at present (97-98) there are 1056 mechanised fishing trawlers operating in the region. Besides there are 250 purseiners, 1850 canoes fitted with outboard motors and about 1500 non mechanized trawlers are engaged in fishing in Goa.

The fishing activity has also given a big boost to a number of caning, freezing and other fish processing units in the state. There is scope for setting up of about half a dozen more units in this line mainly to cater to the rising export demand from western European and American nations. A couple of fish oil extraction as well as fish meal manufacturing units can also be set up in the state by utilising the rich fisheries resources.

 iv) Forest Resources

The state of Goa is endowed with rich forests. As per the recent cadastral survey records available with the land survey department, the area covered under forests is 1052594 hectares, which accounts for about 29% of the total geographical area of the state. Forest areas are confined to the western ghat foothills in the talukas of Sanguem, Satari, Canacona and Quepem and to a lesser extent in the Talukas of Ponda, Pernem and Bicholim. A considerable portion of the forests was subjected to severe damages due to excess cutting and illegal felling of trees.

With the setting up of an independent forest department in 1963, development measures like planting of faster growing species like teak, eucalyptus, bamboo and other species having indl. applications and development of forest roads were taken up. When the forest estates which are now in the conservation stage are fully grown up for exploitation, quite a number of forest based industries could be set up. The Forest resources presently available do not give much scope for developing industries based on these. So far about 5,204 hectares were brought under eucalyptus, more than 9,500 hectares under teak, about 12000 hectares under cashew and 851 hectares under rubber and 768 hectares under casurina plantations. Income form forest produce for the year 1999-2000 is Rs.18,79,421.

 

v) Animal Husbandry

Prior to liberation, meat, milk and milk products were being imported from Portugal. After the liberation of this territory, a separate directorate of Animal Husbandry and Veterinary Services was established and various developmental programmes aimed at rise in milk production, poultry and piggery, provision of overall health care etc. was taken up in a systematic manner. As per the State Govt. estimates, the livestock population consists of 99,568 cattle, 44,674 buffaloes, 89,852 pigs and 76,216 other animals. The livestock population of the state is small in relation to the area and still major part of the state’s requirement of milk and milk products is being met by the Belgaum district of Karnataka State. The cattle development programmes has been intensified to improve production of milk through upgrading and cross breeding to cater to the ever increasing demand for milk and other dairy products. The scheme of Anand pattern of dairy development was initiated in 1963-64 when one pilot pasteurisation plant was established with a capacity to pasteurize 2000 litres of milk. A modern dairy plant was also set up in Curti, Ponda, present capacity of the plant is 75,000 litres a day. The plant is also has the installed capacity to produce 50 MTs of cattle feed per day. A Government poultry farm is functioning at Ela near old Goa in the state with the main objective of providing qualitative. Chicks to the farmers. A marketing organisation has also been set up to provide remunerative market for eggs and poultry produced by the farmer. A piggery farm is functioning at Curti, Ponda to produce qualitative pigs for distribution to farmers for breeding purposes. A slaughter house known as "The Goa Meat Complex" has also been set up at Usgao in Ponda taluka, with an installed capacity to slaughter about 45,000 animals per year. But actually, 84 animals have been slaughtered during 1999-2000. It is seen from the above that resources under animal husbandry is yet to be developed and chances for industries based on the above are not much in the state of Goa.

 VIII. Scope for development of primary sectors like agriculture, fishing, farming etc. and its likely impact on growth of small scale industries.

It is seen from the foregoing columns that primary-producing sectors like agriculture, dairy farming etc. are not much developed in the state of Goa and not much surplus is created for industrial exploitation. It is evident from the fact that Goa is heavily depending upon neighbouring states for rice and the food grains, fruit and vegetables, milk and meat products etc. However, it is revealed during the study that there exists very good scope for development of agriculture, dairy farming etc. To site an example, only 39% of the total reporting area is under cultivation and cultivable waste-land account for 55683 hectares. Further only 36,613 hectares of land is brought under irrigation by means of artificial irrigation facilities. This shows, there is very good scope for bringing more area under cultivation of various crops as well as providing irrigation facilities to large chunk of the area presently under single crop cultivation by constructing dams, canals, bunds, etc. and thereby increase the agricultural production considerably. The Selaulim dam, will be irrigating about 11,749 hectares of land. Tillari Dam, a joint venture of the govt. of Maharashtra and Govt. of Goa will facilitate irrigation for command area of 16,978 hectaries, after its completion. At present, 75% of the work is reported to be completed. Another irrigation project at Anjunem is completed and will be irrigating 2100 hectares of land. A noteworthy increase in the production of prominent agricultural crops like paddy, coconut, ragi, areacanut and horticultural crops etc. will create surplus materials and there will be scope for more industrial units based on the Same. Rice milling, rice/flour mills, instant food mixes based on rice, rice bran oil extraction, cattle feed, paper/cardboard manufacturing units based on rice husk, and paddy straw etc. are some of the products having scope for development under S.S. Sector based on paddy and its by products.

Coconut products are having quite a lot of industrial applications. Once there is sufficient surplus in coconuts and allied products, a number of manufacturing activities like-coconut oil extraction, refining and bottling of coconut water, manufacture of desiccated coconut, defatted coconut gratings, coconut shell powder, activated carbon out of coconut shell, coir defibering, rubberized coir mattresses, handicraft products out of coconut shell and phenol formaldehyde moulding powder etc- can be taken up in the state. Significant rise in horticultural products will give a boost to fruit and vegetable processing, industries such as manufacture of jams, jelly’s syrups, squashes, pickles, chutneys, dehydrated fruits and vegetables, oils and oleoresins from spices, ground species etc. Arecanut processing is a traditional industry employing a number of rural labourers where there is large production of arecanuts. Sufficient production of ragi will stimulate a few units for extracting malt from ragi.

Growth of agricultural sector will also encourage other related industries like mixed fertilizers, insecticides and pesticides formulation, agricultural implements, agro service centres, etc. directly and trade and transportation indirectly.

Dairy farming is one sector, which requires urgent attention of the authorities. The state is deficient in the production of most of the dairy products and depends on the neighbouring states of Maharashtra and Karnataka. As against the daily requirement of about two lakh litres of milk, the actual supply has been to the tune of about 75,000 litres/day and rest of the quantity is being procured from neighbouring states. Expansion of dairy farming will provide employment opportunities to quite a large number of rural folk and it is an additional income for underemployed agricultural labourers and marginal farmers. A few units in the line of milk chilling, meat processing, pasteurisation and bottling, ice-cream, cattle feed, manufacture of butter, ghee, and milk powder, flavoured milk in bottles, yogurt etc. could be encouraged if sufficient milk is made available in the state.

Prawn culture is an area having very good potential for development. The Khazan lands i.e. the low lying lands of both sides of the important rivers are suitable for prawn culture and a few model farms are already in existence. Besides providing continuous supply of raw materials to the fish processing industry engaged in exports, this also provides employment opportunities to under employed agricultural labourers especially women. Considering the potential for large-scale prawn culture and the success of experimental farms, this area should be given serious thought by the authorities.

 

II. Economic facilities- Industrial Policy of Goa State and Incentives & Concessions to Indl. Sector.

The industrial policy of Goa aims to harness the human resources of the state, improve the quality of life of the citizens and preserve the pollution free environment of Goa. It aims to provide an efficient system of approvals wherever needed and give thrust to export oriented industries while encouraging foreign investments in the state. There is tremendous scope for promoting tourism and service sectors and there is a constant effort to upgrade educational institutions to synergise with the increased sophistication in industrial growth.

The selective approach to new industrial approval is the salient feature of the industrial policy of the state. The setting up of large and medium industries requires approval of high power coordination committee headed by the chief minister. The committee examines the type of unit proposed to be set up from the viewpoint of environment and the existing infrastructure. This simplifies the process considerably and entrepreneurs need not pursue their goals with several departments. Power intensive units are not encouraged in the state. As far as S.S. units are concerned, provisional registration is issued within 24 hrs. on receipt of applications and permanent registration is given once the unit starts production. Cottage Industries, i.e. Industries with investment of less than Rs.50,000 in plant and machinery and using less than 5hp Electric power are exempted from obtaining licenses from Municipality, Panchayat and NOC from health department.

The objective of new industrial policy of the government of Goa is to encourage setting up of industries, which are non-polluting and employment oriented. With the libralisation of economy, the new thrust areas in industrial growth are electronics & pharmaceuticals. In order to encourage setting up electronic industries, Goa State government has set up an electronic city in Verna Indl. Estate. Agrobase, food processing including fisheries, electronics, soft ware development, tele-communication, biotechnology, light engineering goods, wood carving, automotive parts etc. and industries having scope for backward and forward linkages and ancillarisation are encouraged. More thrust is given for tourism-based industries and service industries. Pisciculture, floriculture, Tissue culture, mushroom cultivation & processing etc. are also being encouraged. Medium and large industries are encouraged in villages and rural areas with a view to achieve dispersal of industries and to reduce unemployment in rural areas. All the 18 industrial estates are located in rural areas and classified as rural industrial estates.

As per the new industrial policy, major thrust is given for infrastructure development. Goa Industrial Development Corporation has so far developed 18 industrial estates constructed more than 700 industrial sheds and developed about 1500 industrial plots. There is at least one industrial estate in all the talukas of the state. Two state financial corporations, i.e. Economic Development Corporation of Goa Ltd. and Maharashtra State Financial Corporation Ltd. are functioning in Goa extending term loan assistance to S.S. entrepreneurs through a number of schemes. Goa Industrial Development Corporation is engaged in the development of infrastructure facilities. GHRSSIDC Ltd. caters to the raw material as well as marketing needs of the S.S. units of the state. KVIB is also functioning in the state extending financial assistance to village and cottage industries.

Almost all the national level industrial promotional agencies like SIDBI, SISI, NSIC, KVIC, IFCI, IDBI & ETDC are functioning in the state of Goa. Goa has an UNDP assisted tool room and training centre. Further the state has a network of about 400 branches of various commercial banks and cooperative banks supplementing the efforts of EDC and MSFC in extending financial assistance to trade, industry, tourism & service sectors.

In the new liberalized environment, a new thrust is being given to encourage private sector investment in infrastructure projects like roads, ports, power and water. A 40 MW power-generating plant has been set up in Sancole in the private sector and the plant has started generating power. The Govt. has also given permission for industrial units to have their own captive and group captive generating plants. The following are the package of incentives offered to industries as per the new industrial policy.

The sales tax exemption facility available to the new small-scale and large scale units. Sales tax exemption facility is thus available for a period of 10 years the Govt. has also announced the introduction of the Scheme for units enjoying sales tax to collect and retain 20% of sales tax as subsidy and 50% of sales tax collected as interest free loan.

Subsidy is offered to small-scale units @ 25% of the total fixed capital investment limited to a maximum of Rs. 25 lakhs. Electricity and water will be supplied to small scale units at concessional rates.

The State Government is remitting 50% of the stamp duty paid under stamp duty act 1889 in respect of bonds or mortgage deeds executed in favour of EDC, MSFC and scheduled commercial banks and lease deed documents in respect of allotment of plots and sheds by GDDIDC.

Price preference at the rate of 15% on the purchases made by the Government Departments is available to the registered small-scale units with effect from June 1970. However, this policy has not been benefited the local SSI units because the local SSI units are depending on raw material from outside the state and have to pay 8% over and above as Central Sales Tax and transportation. Thus, the local SSI units are at a disadvantage compared to the units registered outside the state. In order to boost and encourage the small scale sector in the state, the cabinet has approved the bill making the Govt. Departments, Semi Govt., undertakings & Autonomous bodies to purchase 20 products ranging from stationery, textiles, text books, electrical goods, cement, bricks, electric pipies, PVC pipes, half round pipes, wooden and steel furniture and others from local small scale industries. Hence froth, the Govt. Departments, Semi Govt. undertakings & autonomous bodies will make their purchase locally after clearance from "Rate Contract Committee".

Ready build industrial shed and plots on rental as well as on hire purchase basis are made available by GDDIDC to prospective SSI entrepreneurs as well as woment entrepreneurs on preferential basis.

Goa Industrial Development Corporation is offering subsidy to the extent of 50% of the cost of preparation of feasibility studies prepared by Government industrial consultancy organisation. The Directorate of Industries and Mines gives loans under state aid to industries act.

The Industries & Mines department also gives bridge loan to the extent of 50% of margin.

Subsidy upto 50% of the cost of generating sets (limited to a maximum of Rs. 1.00 lakhs) purchased by small scale units is given by the State Government.

 Incentives by Central Government:-

New units are totally exempted from payment of Income tax for the first 5 years. This facility is available for the units getting permanent registration certificate from the Directorate of Industries up to 2002 March. Income tax concession is also available to all registered S.S. units on 20% of the pretax profit under section 80HH of Income tax act.

The Small Industry Development Bank of India provides concessional financial assistance to small scale industries through its scheme of refinance loan granted by scheduled commercial banks, Economic Development Corporation and Maharashtra State Financial Corporation to the extent of 80% of laons sanctioned by financial institutions.

Seed capital or margin money loan scheme is also operated by Small Industries Development Bank of India through EDC and MSFC to the extent of 20% of the cost of the project depending upon the merit of each case.

Government of India gives 15% price preference to S.S.Units on the purchase made from them. DGS & D registered units are provided with tender forms free of cost and are exempted from payment of EMD.

Non Resident Indians can import capital goods and raw materials without indigenous clearance and other formalities.

With a view to give fillip to production in the small-scale sector, certain products are totally exempted from payment of excise duty and partial relaxation has been made for a number of products. The policy is being reviewed from time to time.

 New Industrial Policy of Goa 1999:

The new industrial policy of Goa under the consideration of the Govt. Following are the goals and objectives of the new policy, as envisaged in the draft policy.

  • To promote industrial growth in the State to meet the employment needs of the people.
  • To preserve the environment and at promote pollution free and sustainable industrial growth.
  • To ensure balanced growth of different areas.
  • To improve entrepreneurial skills of the citizens to enable them to meet the demands of highly skilled manpower needed by industries.
  • To provide an efficient system of approvals wherever needed, to facilitate speedy industrial growth so that cost and time over runs are avoided.
  • To promote integration of rural/urban interface to ensure balanced growth.
  • To promote equal opportunities for women both as entrepreneurs and skilled workers.
  • To promote growth recognising and eminent position of tourism industry in the State.
  • To encourage continuos upgradation of institutions in the State to synergise with the increased sophistication in industrial growth.
  • To promote the infrastructure so that so that industry can function in a highly competitive environment.
  • To promote only those industries which can be sustained in the ecologically fragile environment of the Konkan Coast & the Western Ghats which comprise the state of Goa.
  • To concentrate on promoting the following type of industries-IT, Electronics, Food Processing, Pharmaceuticals, Light engineering including Electricals and Biotechnology.

 

Environment and Pollution Control under the new policy

In order to maintain clean environment there is a State Pollution Control Board. The Board scruitinises every industrial proposal from the point of minimising environmental pollution due to liquid effluent, solid waste and gaseous emissions likely to be generated by the proposed ventures. The Board’s Clearance soon after getting provisional registration and before taking any step to install the plant, and in the second stage consent of the Board is needed before commencement of production. The new policy proposes to publish guidelines for maintaining pollution free environment, which will be made available to all concerned.

Industries have been classified into three categories namely Red, Green and Orange. Industries in Red category will not be given registration and they are banned. Industries in the Orange category would be allowed after taking all aspects of consideration as to their impact on environment and potential for growth. Industries in the Green category will be allowed to set up separately.

 

IX. SCOPE FOR NEW INDUSTRIES

Goa state being very small in size, the availability of resources is very much limited. Available resources are efficiently utilized and the scope for demand based industries are not considerable due to various constraints like non availability of raw materials, competition in the market etc. As per the new industrial policy of Goa State Government, industries, which are non-polluting, employment oriented and having scope of ancillarisation will be encouraged. Agro based, food processing, fish processing, electronics, software development, telecommunication, biotechnology, manufacture of light engineering goods, pisciculture, tissue culture, mushroom cultivation & processing, wood carving, export based products and industries having backward forward linkages will be given preference.

The concept of ancillary industries is rather new in the industrial scenario of Goa State. No small-scale unit has come up in Goa State of catering to the requirements exclusively of any large or medium scale unit. However, a few large units set up recently like Goa Electricals & fans Ltd., Bethora; Automobile Corporation of Goa Ltd., Sattari; Crompton Greaves, CIBA India Ltd., Goa Auto Accessories Ltd, Goa Shipyard Ltd., IFB Industries Ltd., MRF Tyres, Usgao, Zuari Agrochemicals, Zuarinagar, Pharmaceutical & Food Processing units in large/medium scale etc. are instrumental in promoting a number of small scale ancillary units for the manufacture of pressure die cast items, machined components, sub assemblies, pressed and fabricated components, castings, metal finishing, packaging, etc.

Packaging is another area having potential for development. A number of large, medium and small scale pharmaceutical, cosmetics & toiletries, IMFL, beer and food processing units are located in this state. Paper board cartons, aluminum foil slitting and printing, printed polypropylene pouches, plastic containers, blister packing materials, corrugated paper board boxes, laminated and wax coated cartons, printed labels, plastic box strappings, pilfer proof caps etc. are some of the products bought out by the large units in the above line.

A comprehensive list of products having scope for development in Goa state is given in Annexure-I. However, it is to be noted that, the concept of identifying the thrust industries has changed. Earlier, taking into consideration the availability of raw materials, technology and local demand, the demand for the product to be produced would have been determined. Now, with the advancement of technology almost everything is produced and available in the market. Further, with opening up of the Indian economy even though a particular product is not produced locally, it is available in the market without any difficulty. Therefore, the thrust is to be given as to how the product is going to be qualitative and cost effective. The items in the list are, therefore, only suggestive and illustrative.

 

Products having scope for development in Goa State

 

  1. Auto Leaf Springs
  2. Fire Extinguisher
  3. Auto Control Cables
  4. Mushroom Cultivation & Processing
  5. De-hydration of Fruits & Vegetables
  6. Automatic Candle making unit
  7. Paper Napkins, Facial Tissue Napkins & Toilet Rolls
  8. Synthetic floating in fishing industry
  9. Self Tapping Screws
  10. Disposable Syringes
  11. Coconut water
  12. Refined coconut oil
  13. Desiccated coconut powder
  14. Coconut Shell Powder
  15. Mineral water
  16. Fish Canning
  17. Uninterrupted Power Supply
  18. Paper Board Cartoons
  19. Crown Corks
  20. Roasted & Salted Cashew nuts
  21. Insulating varnishes out of CNSL
  22. Anticorrosive Paints out of CNSL
  23. Ayurvedic medicines
  24. Iodised salt
  25. Readymade Garments for Exprot
  26. Disposable plastic cups/glasses/plates
  27. Printed Polypropylene Pouches/films
  28. LLDPe films/bags
  29. Plastic egg-trays
  30. Acrylic moulded glow sign boards
  31. FRP Doors/Partitions
  32. Glycerol Monostearate
  33. Granite/marble stone polishing
  34. Aluminum furniture
  35. Fabrication of Bakery Machinery
  36. Luggage carriers for scooters/motor cycles
  37. Offset printing press
  38. Electronic components like condensers, capacitors, resistors etc
  39. Electronic mouse for computers
  40. EPABX
  41. Process Control Instruments
  42. Air conditioners
  43. Remote control switches
  44. Voltage Stabiliser
  45. PVC insulated copper wires
  46. Assembly of deep freezers and cooling equipments
  47. Medical electronic equipments
  48. Panel Board Assembly
  49. Electronic power generators
  50. Baking oven
  51. Glass bottles
  52. Electric fan components like Regulator assembly, Fan kit assembly etc
  53. Pilfer proof caps
  54. Terminal Board
  55. Precision machining
  56. Nylon moulded industrial components
  57. Heat treatment facility
  58. Aluminum Foils/pouches
  59. Pressure Die casting
  60. Mechanised Boats
  61. Computer Furniture
  62. Glazed ceramic tiles
  63. Cake mixture
  64. Coconut/Cashew feni
  65. Ground and processed spices
  66. Noodles
  67. Prawn/Shrimp farming
  68. Vinegar
  69. Yoghurt
  70. Gold plating on metallic Optical frames
  71. Plastic moulded luggage
  72. Wire Enamels
  73. Detergent Powder/Cake
  74. Dry Cell Battery
  75. Electro Cardiogram Paper (ECG Paper)
  76. Mosquito Repellant mats
  77. Leaf cups/Plates (laminated)
  78. Particle Boards
  79. Refining of used lubricating oil
  80. Roto-moulded Plastic Water Storage Tanks
  81. Aluminum Fabrication
  82. Automobile Water Pumps
  83. Fuel Injection Equipments
  84. Solar Cooker
  85. Audio Cassettes
  86. Electronic Calculators
  87. TV Booster Amplifiers
  88. Video Cassettes
  89. Computer Key Board
  90. Electronic weighing scales
  91. Loud speakers
  92. Automatic Electric Iron Cordless
  93. Electric Mixers/Grinders
  94. Electrical Motors
  95. Table fan
  96. Tube light fittings, chokes
  97. Phenyl
  98. Toilet articles like shaving cream, after shave lotion
  99. Pickles
  100. Tomato ketch up

 Auto Leaf Springs:

Demand of automobile leaf spring is directly linked with the production of vehicles. Leaf springs are required both as original equipment and as replacement part. The rate of replacement parts depends upon road conditions and load pressure on various vehicles. The demand for auto leaf springs, as original equipment, is increasing steadily with the increase in the production of automobiles.

The Leaf Spring is a very important component of an automobile. It is of semi-elliptical shape and it is connecting link between under frame and the chassis. A leaf spring is generally of 7 to 21 leaves including the main leaf or mother plate. Length of the main plat varies from 750 mm to 1250 mm and that of the smallest plate measures about 150 mm. The width varies from 37.5 mm to 76.5 mm and its thickness from 6 mm to 11 mm. The main leaf is formed into eyes at the ends to support the shakle pins whereas the other leaves are flat and are arranged in descending order of length to provide proper spring action. The leaves are bolted together in the middle by a centre bolt and clamps are fitted at suitable intervals to hold the leaves in proper position. The manufacturing process is simple and machinery is available indigenously. The item is exclusively reserved for production in the SSI sector.

 Fire Extinguisher:

As the name itself suggests Fire extinguishers are used to extinguish the fire and thereby by averting major fire accidents, which may result in loss of human life and property. Fire extinguishers are used especially in big hotels, textile mills, godowns, oil refineries etc. Now-days, fire extinguishers are extensively used in any big enterprises like Govt. office Complexes, Cinema Halls, Factories, Airports, Railway Stations, Hospitals, Petrol Bunks etc.

The end product is mostly a sheet-fabricated item. The basic raw materials used are CR Sheets of gauge ranging from 18 to 22 SWG. The sheets are cut into sizes length and width in the guillotine or hand shearing machine. Then, it is rolled in the sheet-rolling machine in cylindrical form, according to the capacity needed. Then the brass fittings are fixed, pressure tested, painted and kept for dispatch. The containers have to be filled/refilled with chemicals, which are Ozone friendly. Earlier, the cylinders were used to be filled with chemicals like CO2, foam etc. Now, these are found to have the effect of depleting the Ozone layer. For information regarding, use of ozone friendly substances in the manufacture of fire extinguishers, entrepreneurs can contact the nearest SISI or branch SISI.

Auto Control Cables:

Auto Control Cables are among the most frequently replaced parts of the two and three wheelers. These are flexible link motions and assist in starting, acceleration and controlling the vehicle. The auto control cables connect the clutch and gear controls in the handles/hand grips of the vehicle to the clutch housing, wheel brakes and the gearbox. The control cable consists of a closed spiral spring coated with plastic with an inner core of standard steel wire. The cable is provided at cither end with suitable lugs to fit into the specific part to which it is to be connected. Auto control cables come in different lengths with varieties of lug shapes and ferrules at the ends depending on the type and brand of vehicle on which it is to be used. The number of wires on the inner core also may vary depending on the type and brand of vehicle for which it has been manufactured. Due to steep increase in the production of two/three wheelers demand for auto control cables is increasing more than proportionately, since these are used as replacement parts.

 Mushroom Cultivation and Processing:

Mushroom is a distinct vegetable. People, all over the world have become aware of the nutrient values of mushroom, and hence the demand for mushroom, and hence the demand for mushroom domestically as well as for export market is expanding. Mushrooms are mainly of three varieties viz., Oyster mushroom, paddy straw mushroom and white button mushroom. Oyster variety of mushrooms can be grown on a wide variety of inexpensive subtracts containing lignin and cellulose. The climate of Goa is considered to be best suited for the growth of mushroom. Paddy straw mushrooms are grown on the paddy straw. Button mushrooms are cultivated over quality compost at a temperature of 15 to 17mdegrees centigrade. Processing of mushrooms involves preservation, pickling, dehydration and canning. The technology available with the Central Food Technological Research Institute (CFTRI), Mysore. In the State of Goa the Directorate of Horticulture organises camps and imparts training on mushroom cultivation.

 Automatic Candle making Unit:

Even in the era of electric illumination, light from the candle is having its own importance and religious significance. Candles are used for illumination purposes in festivals like Diwali and religious rituals in churches and also in festivals like Christmas. People use candles of different shapes as decoration pieces as well. Artistic and designer candles, in spite of their high cost, find use in clubs, big hotels and restaurants, bungalows, birth day and other parties etc. Due to frequent power failures, candles are used fir lighting purposes too. In the state of Goa demand for candles is enormous for many reasons like existence of a large Christian population, churches, star hotels etc. Although there are a number of units in this product line, especially in the unorganized sector, mechanised unit in small scale/Tiny Scale will definitely have good prospects.

Paper Napkins, facial Tissue Napkins and Toilet Rolls:

 

Paper napkins and facial tissues are physical form of the basic material paper and fall in the category of light weight sanitary tissues. Paper napkins have become increasingly popular with the catering industry due to its manifold usage and special qualities. These include high absorption, hygienic and lightweight characteristics. Facial tissue paper though recently introduced in the Indian market has fast become popular due its lightness, absorbent and hygienic characteristics. Toilet paper rolls and sheets are becoming increasingly popular with the sanitary industry due to various advantage and convenience it offers and also due to westernisation.

 

Synthetic floating in fishing Industry:

Floating agent is used by fishermen throughout the water surface with indicators. For fishermen, floating agent serves two purposes-first it is used to spread the net throughout the surface and second it is used as an indicator. Floating agent can be made either from the available natural soft wood or from synthetic plastic. Since availability of wood is costly and synthetic plastic is lightweight and durable as it resists water, use of synthetic floating agent is increasing. In Goa fishing is an important economic activity. Goa has a coastline of 100 Kms and inland water ways of another 250 Mks, rich marine resources. The marine fish catch is over 60,000 Mts valued at Rs.7,860 lakhs. Inland fish catch is estimated to be about 3,300 MTs valued Rs.1,156 lakhs. Hence, the industry will be having a good market if good quality of floating agents are manufactured.

 Dehydration & Canning of Fruits and Vegetables:

De hydration of fruits and vegetables is done with a view to preserve surplus perishable foods. Although much of the food produced all over the world is consumed in its fresh form, with the increasing urbansiation continuous effort to provide a regular supply of food is increasing steadily. Dehydrated vegetables are used as processed raw material in wide range of food processing industries. There is a vast scope to develop this industry by integrating production with processing and marketing. The growth of this industry will not only benefit the grower but also earn valuable foreign exchange as there is growing export. Market for this products from this industry. The State of Goa, although is not self sufficient in fruits and vegetables, it has the advantage of being in the close vicinity of major fruit and vegetable markets such as Pune, Belgaum, Hubli etc. These products are available at through away prices due to seasonal surplus and their perishable character. Few units can be set up in this line by procuring the raw material form nearby markets.

 Disposable Syringes:

Disposable syringes are made of plastic and used in the field of medical science. Due to their availability in sterilized condition, ready to use and cost effectiveness, disposable syringes are fast replacing the age-old glass syringes. Moreover, the horror of AIDS worldwide has almost dispensed with the reuse of syringes and there has been a phenomenal growth in the demand for disposable syringes. Since there is not unit in the state of Goa in this line, vast scope exists for the new industries to come up.

Self Tapping Screws:

Self tapping screws are known as industrial fasteners having different type shape of heads, lengths and diameters. These are mostly manufactured from HB wire. The product is hardened, tempered and electroplated. These are used for fastening of two or more sheet metal part. Self tapping screw is headed and externally threaded, possessing capabilities which permit it to insert into the hole and forming its own thread, when being lightened. One end of the screw is enlarged in shape and size and other end is small and taper.

This item is being used for fastening two or more sheet metal parts in bus body building, rail coach building and steel furniture etc.

 


 

 

Notification 

Govt. of India

Ministry of SSI & ARI

 

 

C-16012/20/2000-EI-720 12-6-2001

 

Shri. CS Prasad (EES),

Assistant Development Commissioner & Economic Adviser

O/o the DC(SSI),

Nirman Bhavan

New Delhi.

Sub: State Industrial Profile of Goa prepared under Action Plan Activities 2000-2001 Forwarding of

Sir,

This Institute prepared the State Industrial Profile of Goa under the Action Plan Activities 2000-2001. A copy of the same is sent herewith for your kind perusal.

 

Yours faithfully,

Sd/-

RK Sarker

Director