Goa which is known for its blue waters and golden sands throughout the world, has become an industrially developing state. Known for its high-literacy rate, knowledge of English and pleasant environment, the state has developed into a pharma hub. The VAT regime, however, dismantled the fiscal incentives and concessions for the trade in general. Goa till then was a sought-after paradise of holiday hunters with the liberal tax holidays of the state and the centre.
According to Nitin Kunkolienkar, president Goa Chamber of Commerce and Industry, though VAT has affected to the trade and industry to some extent, pharmaceutical units of the state have not suffered much of the impact, ``as Goa is neither producing raw materials required by pharma industry, nor selling the finished drugs in the state''.
Most of the pharma companies not involved in direct sales within the state get EoUs status. The Goan government has extended the tax holiday status to the old pharmaceutical units. Most of the MNCs are having processing units in Goa and work on loan licensing agreement. That means raw material are sourced from outside and the finished dosage forms go to the international destinations. Hence the VAT has not created much of a problem for the pharmaceutical industry, Kunkolienkar said.
A research report presented by a leading consultancy firm- Pyramid Finance Ltd, says: "Goa has exhibited a brilliant aptitude towards attracting pharmaceutical investments. With less than 20 companies in this sector in 1991, there are today over 50 companies in this sector generating a total revenue of over Rs 1,900 crore, constituting roughly 7.2 per cent of the total drug production in the country."
Goa has made big strides in the industrial sector, thanks to the fact that the Central Government laid the industrial base in the early-1970s, liberally showering investment and capital subsidy on Goa declaring it to be an industrially backward district. Goa was a union territory then. A strong foundation was laid for the industries by setting up the Goa Economic Development Corporation (EDC) - the apex financing body - that also worked as a promoting body to attract joint ventures. Goa has over 6,700 small-scale industrial units and about 150 medium and large-scale units employing over one-lakh persons.
The Goa Daman and Diu Industrial Development Corporation (GDDIDC) was established by the Government of Goa, Daman & Diu in February 1966 under the provisions of Goa, Daman and Diu Industrial Development Act, 1965 with the aims and objectives of securing and assisting in the rapid and orderly establishment of industries. One of the important activities of the corporation is setting up of industrial estates.
`'At Goa Industrial Development Corporation (Goa IDC), we have been gearing up industry for the last three and half decades and have tried to maintain a balance between business, leisure and the environment ,''said a spokesman of IDC.
Twenty-two industrial estates including couple of pharma estates have been established so far and IDC is in the process of setting up many more industrial parks, he added.