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Power crisis halts Goa's industrial development

Goa will not be able to exploit the tax holiday -- till 2000 -- granted by the Bharatiya Janata Party-led coalition because of its crippling power crisis.

Taking the blame for the sorry state of affairs is the Congress government's directionless industrial policy. So also the haphazard power connections given to over 50 power guzzlers in the state despite power shortage.

The tourist state produces only 210 MW even as the demand has zoomed up to 303 MW.

The big power consumers themselves consume 220 MW, resulting in low voltage, load shedding and unannounced shutdowns.

The situation would have been even worse if the Goa high court had not intervened. It has banned new connections, exempting domestic consumer and public utility services.

Meanwhile, Power Minister Mauvin Godinho has landed himself in a controversy for granting excess power to the big consumers and diverting subsidy to these units.

Due to public pressure, however, the cabinet has disapproved Godinho's action.

The white paper, published by Godinho, stated that the state would need at least 324 MW by 2000.

However, the white paper projection ignores the possible industrial development in the state.

The International Finance Corporation states that Goa would need 379 MW by 2000.

It is, however, doubtful whether any private firm could meet the deficit in just two years, when the tax holiday ends.

The 25 per cent power subsidy -- another attraction for industries -- has also been discontinued since April.

"Industries would come only if there is no power crisis in the state," admits state Industries Director Sangay Shenga.

Over 960 industries, including around 25 multinational units, were set up in the state -- attracting an investment of Rs 9.29 billion -- following the five-year tax holiday granted by then finance minister Manmohan Singh in April 1993.

However, currently, industrial development has come to a grinding halt due to the power crisis.