MD: GIDC not cash-strapped



Reacting to allegations from industry of the Goa Industrial Development Corporation (GIDC) being cash-strapped, its managing director Narayan Gad on Tuesday said that GIDC is earning revenue from transfer and sub-lease fees and from cost-saving measures implemented recently.

He said that about 90 applications for transfer and sub-lease have been cleared in the last three months after the new Transfer and Sub-lease Regulations 2018 was notified in February 2018. Speaking to ‘The Navhind Times’, Gad said that with regular income coming in from approvals of transfer and sub-leases, the charge that GIDC has no revenue source is not true.

He said that other than transfer and sub-lease fees, the Corporation also made a windfall gain of Rs 10 crore on account of a loan recovery from the Kadamba Transport Corporation (KTC). “The loan to KTC was made about 10 years ago and full recovery of it was received in May 2018,” said Gad.

He added that GIDC also made substantial saving in its monthly water bill by plugging leakages in the pipelines supplying water within industrial estates. “While previously we faced a loss of Rs 1.5 crore in our water bill, currently we are in surplus of Rs 80 lakh for the year ended March 2018,” added Gad.

He said that the Corporation also made savings by clearing up the bushes in industrial estates. “Previously we tendered the job to a contractor but presently we undertook the work ourselves and saved about Rs 70 lakh,” said Gad.

He added that GIDC is in a major drive to increase revenue by cost-cutting and earning through penalties on account of illegal construction and alteration in factory buildings.

In April 2018, GIDC had revised the lease rates on industrial plots and issued demand notices to unit owners for higher lease rents. The move was criticised heavily by industry which said that GIDC is “cash strapped” and needs to reduce expenditure to earn revenues instead of increasing the lease rent.

The decision to revise the lease rate was subsequently deferred. Gad said that the purpose of revision was to rationalise lease rates and bring about uniform rates between plots in various industrial estates. He said that with 2,700 units and different lease rates for industrial plots, it became difficult “to enforce.”

A GIDC board meeting is scheduled on Wednesday with a large agenda covering several crucial issues.

Categories: Business
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