Goa to set up two SEZs

The Goa government is planning to apply for establishing special economic zones (SEZ) under a new Act passed by the parliament in May. The move comes in the wake of a suggestion made by the Union finance minister P Chidambaram during his recent visit to the state.

The Congress-led Pratapsingh Rane government is proposing to establish SEZ in both north and south Goa. "The government is contemplating an SEZ at Verna in south Goa and another in north Goa," says Luizinho Faleiro, industry minister of the state.

According to him, Verna is located advantageously as it is close to an airport, sea port, railway head and a four-lane highway. The government is in the process of identifying land in north Goa near the proposed Mopa International Airport.

On SEZ facilities, Faleiro said that it will have tax exemption, concessions, incentives and other benefits. "SEZ is like an enclave where foreign investments will come in for production of goods and services, which would cater to the domestic as well as foreign markets," he asserted.

The industry minister further elaborated that the enterprises in the SEZ will get 100 per cent tax exemption for the first five years, 50 per cent for the next five years and more if the profits are ploughed back.

Faleiro said that the type of industries in the SEZ will be finalised taking into account the type of educated manpower available in the state.

He added, "Goa is facing an alarming problem of technically qualified unemployed persons."

He said that the employment rate in the state will go up with the coming of SEZs. Goa has a literacy rate of 82 per cent.

The Goa Chamber of Commerce and Industry is at present in the process of preparing a blueprint for the SEZ, which would be handed over to the state government shortly.

The government has already received a report on SEZ guidelines and schemes from the ministry of commerce and industry and accordingly working its way towards introducing SEZ in Goa.