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Goa as a free port?

Sandesh Prabhudesai in Panaji

The idea of India having its own free port is still alive. In fact, it is likely to take effect even if the Indian currency is made fully convertible. What, however, needs to be decided is the exact pattern it would follow and the way country’s democratic system would tackle its implications once the Inter-Ministerial Committee appointed by the Union commerce ministry submits its report shortly.

The report submitted by the Raunaq Singh Committee has been pending with the central government for five years, giving the distinct impression that the proposal has been shelved in view of the steps being taken towards full convertibility.

However, Union Commerce Secretary P P Prabhu insisted the central government is seized of the idea. "It's not shelved," he told a gathering of exporters at a seminar held in Goa last week. "Duties will stay even after convertibility, while all kind of hindrances including the customs and excise duties as well as port levies would be exempted in the free port economy," he added.

The committee is finalising the proposal, he said, and studying what implications a free port authority would have on the existing administrative, legal, and financial set up and is preparing concrete proposals to tackle the situation.

The union ministry has made it clear that it an Indian free port will not like Singapore. Only activities such as warehousing and storage, minor processing, simple assembly and labelling, packing and repackaging, etc, solely for export purposes will be allowed.

Goa remains concerned about the proposal. It figures first on the Raunaq Singh Committee report as the most suitable location due to its environment and also because it was a free port during the Portuguese regime. In fact, the state government has given its consent in principle, pending concrete proposals and a public debate on the issue.

However, Goan ex-freedom fighters, environmental groups and the church have opposed the idea. Prabhu prefers to remain silent on the issue, stating that the decision would be taken only after the committee submits its report. He has also assured a nation-wide debate on the proposal before finalising the proposal.