Goa Chamber of Commerce & Industry (GCCI)

GST still has many grey areas which need to be clarified. The land is excluded from GST under Schedule III. Land and building are state subjects and are therefore subjected to stamp duty. However, order No. 4/2018 dated 25th January 2018 states that development rights are payable by the developer on behalf of the unregistered landowner. Additional developmental cost leads to indirectly taxing land. This affects the cash flow and credit flow costs and related issues for the real estate builder/ developer. This naturally shoots up the cost of the dwellings. Development rights are part and parcel of the land rights. Land includes benefits arising out of the land. GCCI has therefore urged that no GST be levied on development rights. We have proposed that in schedule III the term ‘land’ should include rights of Land and the transfer of such land rights should include benefits arising from the `land`.

Efficient traffic management is an important part of any transport system. This also includes safety and adherence to traffic regulations. The ratio of traffic police to vehicles in Goa is a mere 1: 2428, it is difficult, if not impossible, to ensure compliance with traffic regulations. The new Traffic Sentinel Scheme has not only motivated the general public to participate in the traffic management system of the state but also empowered them to highlight irregularities and violations of traffic rules and most importantly, given them the ability to ensure implementation. From the statistics made available to the Chamber, despite the number of 2 wheelers having gone up by a whopping 68.95% in 2018, the number of deaths due to accidents has come down for the first time in a decade in 2018 since the Traffic Sentinel Scheme has been launched. Industry and citizens, in general, should welcome any initiatives which improve efficiency and better the lives of citizens.

The Chamber has once again taken up the issue of the mining-affected people. The Debt Relief Scheme introduced by the state government was specifically for the barge, mining machinery, and truck owners who had availed the loans from financial institutions to acquire the assets and were unable to clear their dues leading to their loan accounts turning NPAs. Though many borrowers took advantage of this scheme and had cleared their loan accounts, a few have as yet been unable to do so. Though the intent is to pay, however, with virtually no business, the borrowers would require some more time to mobilize the funds. GUCCI has therefore requested the Chief Minister to further extend the scheme for another six months.

A new avenue of export from Goa airport and seaport has come up. A few exporters have proposed the export of livestock (goats) from Goa mainly to Middle East countries and the volume is quite substantial. This is going to happen for the first time in Goa. The exporters have taken all requisite permissions for export but have got stuck as there is no Quarantine Officer for livestock posted at Goa. GCCI has extended its complete support to the exporters who are exploring a hitherto unexplored avenue of exports. We have taken up the matter with the concerned authorities for posting a Quarantine officer in Goa.

Logistics is another sector we have been stressing about. The cold chain has experienced phenomenal growth in the last few years. The growth has doubled almost every five years. However, logistics, in general, is a highly fragmented and unorganized market. There are serious deficiencies in skilled manpower. If the largest family-owned businesses in logistics have to scale up, an infusion of professionalism is required. With technology coming into play in every aspect, adequately trained operational, supervisory, middle, and senior management persons are required to gear up to take on challenges. Therefore other than investment in infrastructure, investment in manpower is required. That includes resources for training and development. The central government has started the Logistics Skills Council. The logistics sector with the help of the Logistics Skills Council and Goa University, should map out the skill requirements for Goa’s logistics industry and design a special curriculum taking into account the new challenges and skill requirements. With a port, airport, and rail connectivity, it is time for Goa to be ready to face the challenge to take logistics to the next level.

Sandip Bhandare