As land bank dries, IPB hits brakes on new biz proposals

Panaji: The Goa Industrial Development Corporation (GIDC) set aside 40% of its industrial land for projects approved by the Goa Investment Promotion Board (IPB). That quota is nearly exhausted, prompting serious concerns over the future availability of plots for new investors who approach IPB.

While industrial land is still available in the state, big-ticket investors who knock on Goa IPB’s single-window want prime industrial land at Verna, Pilerne, Tuem, Latambarcem and a few other industrial estates. With this drying up, IPB officials have seen two new trends.

Shrewd investors are directly approaching the GIDC for land through the auction route, where they are willing to pay a slight premium for the plot and then approach IPB for assistance with regulatory compliances.

“Land is used up in each industrial estate and IDC land is available through auctions, so the number of proposals coming before Goa IPB will naturally start dwindling,” said Goa State Industries Association president Anirudh Dempo.

When Goa IPB held its first meetings in 2015, the board cleared 62 proposals committing investment of Rs 5,200 crore. That number was halved to 31 projects in 2023 and once again slashed by 50% in 2024 with only 15 projects getting the in-principle approval.

“In the first few years, these numbers were buoyant but that will no longer happen. IPB’s quota is almost over. IPB route will be more viable for those entrepreneurs who have their own land,” said Dempo, who is also part of the GIDC board and the Goa IPB board.

Simultaneously, the IPB has started clearing proposals where the investment proposal is coming up on private land as seen recently with resorts and private universities. The project promoters then ask the IPB to declare the land as an investment promotion area.

“The issue of land availability is a concern and this will come up for discussion at the next IPB meeting,” said an official. “GIDC’s regulations will have to be tweaked if more land has to be unlocked.”

According to the Goa-IDC allotment regulations, 40% of the notified industrial area shall be earmarked for allotment to special projects with a minimum area requirement of more than 3,000sqm as per the directions of the IPB.

The GIDC, which is pursuing a digital thrust, is also in the process of reorganising and reassessing its land bank across the state, said IPB officials.

“Somewhere along the line, the investors who come are strangulated. Investors are smart and they have no time to waste. Corrective measures need to be taken because jobs have to be created and only the industry can do it,” said Goa state council chairman Manguirish Pai Raiker.