The Hindu Business Line : `An ideal destination for SEZ'

"GOA is best suited for a Special Economic Zone (SEZ)", Mr P. Chidambaram, Union Minister for Finance, had said during his brief visit to Goa before the May by-elections to the State Assembly that brought to power the Congress-led Government in the State.

"If the Government has the will, then it could set up the SEZ in six months with the helpof the Centre," Mr Chidambaram said.

The SEZ, experts say, will tackle several issues that a tiny State like Goa is encountering in the new VAT regime that has done away with most of the fiscal incentives and concessions, including sales tax and income tax holidays. Tax exemption, concessions, incentives etc, will be taken care of if an SEZ is set up. The zone 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. There will be 100 per cent exemption in taxes for five years, 50 per cent the next five years and more if the profits are ploughed back, say financial experts.

Mr Nitin Kuncolienkar, President of Goa Chamber of Commerce and Industry (GCCI), was prompt to endorse the idea of SEZ. He agrees that tax incentives and concessions are not long-term solutions and no right-minded investor should be over-dependent on them.

Goa, he emphasised, was one of the best States in the country with several positive indicators for attracting investors. What is needed is a good dose of infrastructure development in areas such as container facilities, connectivity to port, airport with adequate cargo facility, etc.

"Incentives will be there today and gone tomorrow; what we need is a sustained long-term planning for attracting investment," says the State Industries Minister, Mr Luizinho Faleiro, as he embarks on his mission to educate people about the desirability and various aspects of SEZ.

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