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Goans divided over free port zone

Sandesh Prabhudesai in Panaji

Goan industrialists want to make the state a centre for offshore banking in the country, while setting up the free port. But the Union government seems to be having second thoughts, probably because other states are also lobbying for the offshore banking it.

Will the idea of free port come true in Goa, the first choice of the Rounaq Singh committee set up by the Centre ? The question also arises because of the stiff opposition the proposal is facing from the local environmentalists, academicians, and non-governmental organisations.

When Dr Ashok Prasad, professor at the Indian Institute of Foreign Trade, New Delhi, disclosed the four different models of free port centres is having in mind, he clearly hinted that Goa is not being considered for financial free port.

"Given your available infrastructure, you should either go in for a free port in the hospitality sector or in ship maintenance," he had earlier told a seminar held in Goa to debate on the issue.

Dattaraj Salgaoncar, president, Goa Chamber of Commerce and Industry, had retorted: "Don't simply impose anything on us. Offshore banking is a right model for Goa."

Since several other states are lobbying to have the free port in their respective territories, Salgaoncar however admits that Goa should act fast.

While preparing a feasibility report for Goan model of free port, he has also assured local environmentalists and academicians to consider all the valid suggestions.

But Chief Minister Pratapsing Rane expects even more than that. Besides the offshore banking, he also suggests a Free Trade zone in Goa. "With all the modern infrastructural facilities planned for a next decade, Goa will be a hub of trade and commerce in next century", he claims.

"Goa definitely has the potential to be first to go global," admits V A Pai Palondikar, director of Indian Centre for Policy Research, and Goan by origin. "Goa can have a modern and financially and technologically advanced port, on the lines of the Singapore model," he adds.

But the kind of model is not the only concern. Confusion still prevails among the environmentalists and academicians in Goa on what impact would a free port have on Goa's social and cultural environment.

"There is no worry if only part of the state is made the free port," states Palondikar, but asserts that the free port authority should be accountable to the state government.

Industrialist Jitendra Deshprabhu, however, is strongly promoting the whole of Goa as a free port zone, since Goa is a city-state and environmentally suitable.

"No doubt the necessary environment exists here for a free port. But it should be primarily in the interest of Goa, taking its environmental impact into consideration," opines General Sunith Rodricks, the former chief of army staff, who took initiative in organising the seminar.

Prof Joe D'Souza of the Goa University insists on calculating the social cost in the cost-benefit analysis of the free port. He pointed to the environmental degradation of the state, and said this occurred because mining and tourism activities were promoted without assessing the impact.

Roland Martins, who is fighting against the ill-effects of tourism, has demanded an opinion poll on the issue, akin to the one Goa in 1967 to decide on its merger with Maharashtra. He also points out that the tourism master plan, which is under consideration, would clash with the idea of free port.

Equally worried is Dr Nandkumar Kamat, an environmental researcher. "If Goa decides to have a free port without considering the sentiments of a cross-section of the society, then urban guerrillas will emerge with arms to fight the free port," he warns.

EARLIER REPORT:
India may go in for 4 free ports