SEZs, Mopa airport must for Goa's economic growth:GCCI

Panaji, Dec 3: The Goa Chamber of Commerce and Industry (GCCI) is of the view that the proposed international airport at Mopa on the Maharashtra-Goa border and Special Economic Zones (SEZs) can act as the engine of economic growth in the tiny state.

Even though the Mopa Airport project ran into controversy creating a North-South divide in the coastal state while SEZ policies have come in for review in many states, the GCCI feels that they could prove to be growth catalysts that could change the face of Goa.

In an interview to UNI, GCCI president Nitin Kunkoliencar said the Chambers have recently published a 'Goa Infrastructure Report' discussing various issues pertaining to the agenda of the state's economic growth and development. The report has discussed various aspects of the state's problems and steps to be taken to address the issues.

According to the report, SEZs in Goa could focus on food processing industries bio-technology, pharmaceuticals, garments, jewellery, diamond polishing and IT hardware industry.

Mr Kunkoliencar said the land acquisition has been put in abeyance given the politically sensitive nature of the airport controversy. The assembly elections are scheduled to be held early next year.

He says that the North-South divide over the Mopa aiport is ridiculous and added that the GCCI will push for implementation of the project. ''We at the Chambers do not subscribe to the view that the Southern parts of the state will suffer if an international airport comes up at Mopa. Do the critics want to say that due to the present airport at Dabolim in South Goa, there was no development in the North,'' he asked.

''In fact, many more hotels have come up in the North and there has been employment to the local people,'' he added.

Goa needs a second international airport because in the next seven years the tourist traffic is likely to grow in leaps and bounds. It is imperative that the Dabolim International Airport be expanded and modernized to international standards on an emergency basis to meet the requirements for at least the next seven to eight years. There is high possibility that Goa's tourism, Industrial and Commercial growth many be seriously hampered if the current constraints and limitations regarding the present airport are not addressed immediately, he said.

Mr Kunkoliencar said the GCCI report on Infrastructure states that the Mopa Airport in Pernem Taluka of North Goa can be built on BOOT basis. If the specifications and bid formalities are completed by the end of 2006-07, the new airport along with associated infrastructure like roads, power, water supply could be functional by 2014.

The report states that besides Goa, the catchment area of the new airport will include some districts of neighbouring states of Maharashtra and Karnataka, for both local inhabitants and visitors travel.

He said if the Mopa airport construction is delayed, Maharashtra's proposal for an international airport in Sindhudurg district may go ahead and Goa would lose on revenue heavily.

According to the Goa Infrastructure Report, the location of Mopa Airport will provide service to the South Maharashtra districts of Sangli, Sindhudurg, Ratnagiri and Kolhapur. The new airport is very close to the border with Maharashtra and access to Moopa will be much convenient than access to Mumbai. Sindhudurg is situated on the shores of Arabian Sea and it has a tourism potential for the future.

Together, these four districts of Maharashtra represent an additional population base of about 8.7 million.

Similarly, Belgaum, Uttar Kannada and Dharwad districts in Karnataka which cater to a population of about 7.2 million will also benefit due to the Mopa airport.

Besides passenger air traffic, the cargo forecast in the catchment area, as a producer of perishable produce and other time sensitive goods, presents a significant opportunity. There is also a possibility that Mumbai airport congestion will be a serious limiting factor for that airpoirt and this many drive the traffic towards Mopa.

Similarly, with unprecendented growth of air traffic and proliferation of domestic airlines in India, the Mopa airport can act as a regional passenger hub or even as an engineering and parking hub for some of the new airlines in place of Mumbai or Bangalore, the report suggests.

Mr Kunkoliencar said port based SEZs have been success stories oversees. ''Goa has a natural port and the need of the hour is to change the focus and outlook from mineral ore to container facilities. Coastal tourism is not the only driver of economic growth. ''There should be a shift,'' he added.

Criticising the opponents of Goa's development plans, Mr Kunkoliencar said they should first get to the root cause of unskilled labour in the state. ''They should first work towards improving the education system. As many as 60 per cent of the schools are in pathetic condition,'' he added.

According to him, the GCCI's demands were SEZs should consist of non-polluting industries. ''We can have IT, biotech, gems and jewellery, among others non-polluting and non-labourious industries,'' he said.

Referring to the fear on influx of migrants with development, he retorted, ''havent Goans migrated to other cities like Mumbai and Bangalore. Can anybody stop Indians from living anywhere in the country. If we do not get labour, are Goans prepared to do the work?'' he asked.

According to the GCCI report, PriceWaterhouseCooper has conducted a preliminary study and recommended Pernem and Verna as proabable sites of SEZs. Verna is close to the existing airport and Marmagoa port while Pernem is an underdeveloped area which could get a fillip of industrialisation once the SEZ takes off.

In Verna, a range of non-polluting industries mainly pharma and electronic industry is already in operation.

The report says expanding infrastructure, focusing on skill building and simplifying procedures will be major elements of developing growth engines.

Apart from IT and tourism, the report says that agriculture and horticulture, fisheries and aquaculture will drive the economic future of Goa.

Responding to a question on the continuance of International Flm Festival (IFFI) in Goa, he said the festival is growing gradually in the state and those who feel threatened by its growing popularity are criticising it.

''In fact, the insecurity in their minds is a testimony that the IFFI has succeeded in Goa,'' he added.

UNI