Goa's Costly Land Acquisition Yields No Results for Six Years
The Comptroller and Auditor General of India has exposed a significant waste of public money in Goa. A parcel of land acquired by the state government for Rs 70.45 crore to expand the Shiroda Industrial Estate has remained completely unutilised for over six years. This revelation comes from a recent CAG audit report that scrutinises the government's actions.
Ignored Warnings Led to Massive Financial Drain
The CAG report details how the government proceeded with the acquisition despite strong objections from its own agencies. The Goa Industrial Development Corporation repeatedly warned that the compensation amount was exorbitantly high. GIDC cautioned that such a high cost would make plots unviable for entrepreneurs.
Even the Directorate of Trade, Industries and Commerce expressed reluctance about the acquisition. Both agencies clearly indicated that the proposed premium would be prohibitive. The government disregarded these concerns and moved forward with the purchase in February 2018.
The Mathematics Behind the Failed Acquisition
GIDC performed detailed calculations that should have stopped the acquisition. The corporation determined that acquiring the land at the award price would require charging about Rs 10,530 per square meter for developed plots.
This amount represented approximately five times the prevailing highest premium at Verna Industrial Estate, which stood at Rs 2,310 per square meter. GIDC stated bluntly that there would be no takers for plots at Shiroda Industrial Estate at such inflated prices.
The flawed process began in May 2013 when GIDC initially proposed acquiring 1.9 lakh square meters at Shiroda in Ponda. The purpose was expanding the existing industrial estate. However, when the Rs 70.4 crore cost became apparent, GIDC immediately raised red flags.
Persistent Inaction Despite Clear Warnings
In July 2017, both GIDC and DITC formally asked the cabinet to drop the acquisition proposal. The government ignored this recommendation and completed the acquisition several months later. Since that acquisition in February 2018, the land has remained completely undeveloped.
The CAG report notes with concern that no new industries have been established on this land. More importantly, the massive investment of Rs 70.4 crore has generated zero employment opportunities for Goans.
Current Status Remains Unresolved
As recently as November 2023, GIDC sought directions from the government regarding utilisation of the idle land. This matter remains unresolved to this day. The land continues to lie vacant, representing a substantial waste of public resources.
The CAG summarised the situation clearly in its report. "The acquisition of land for industrial purposes with an exorbitantly higher premium of Rs 70.4 crore, despite the reluctance expressed by both the GIDC and the DITC, resulted in the idling of the land for the last six years, defeating the purpose of land acquisitions," the audit stated.
This case highlights how ignoring expert advice and proceeding with questionable acquisitions can lead to significant financial losses for the state. The people of Goa have seen Rs 70.45 crore of their money spent on land that has produced absolutely no economic benefit for six consecutive years.
