GIDC to hand over 2 lakh sqm to Goa Shipyard for Rs 81 crore

Panaji: The Goa Industrial Development Corporation (GIDC) cleared the allotment of 2 lakh sqm of industrial land at Sancoale to Goa Shipyard Limited (GSL), a defence PSU, for around Rs 81.5 crore.

The land will be sold at a concessional rate of Rs 4,000 per sqm, compared to the prevailing auction base price of Rs 5,700 per sqm, resulting in a notional revenue loss of about Rs 34.6 crore to the exchequer.The land premium will be payable in a single instalment. At the auction rate, the same parcel would have fetched Rs 116.1 crore.GIDC chairperson Aleixo Reginaldo Lourenco said on Thursday that the decision was taken during the corporation’s 398th board meeting.

“We have imposed conditions for this allotment — 50% employment for locals, 50% procurement through MSMEs, and the setting up of a skilling institute under CSR. These are necessary because we have had bad experiences regarding jobs for Goans,” he said.The land parcel was originally notified for a special economic zone (SEZ), but was repossessed by GIDC. Under the rules, repossessed SEZ land is to be auctioned. However, officials said that given the strategic importance of GSL, the board accorded specific approval for direct allotment in national interest.

The decision follows a series of deliberations. In July 2024, the GIDC board gave in-principle approval to allot 80,000sqm at Verna industrial estate to GSL subject to commitments on local employment, skill development, and MSME procurement. GSL later sought land at Sancoale instead, citing operational and logistical advantages.The matter was revisited this July but deferred after concerns were raised over possible risks of landslides due to dredging activities by GSL and the corporation’s poor track record in providing jobs to locals. GSL subsequently confirmed its acceptance of the conditions but sought relaxation within the framework of its procurement guidelines.In addition to concessional pricing, GSL requested GIDC to build an approach road to the site, which could involve further expenditure.