‘Good governance requires consistency’

‘Good governance requires consistency’
Preetu Nair | TNN

Panaji: Upset with the arbitrary behaviour of the state government regarding the SEZ issue, Cipla officials said that the move to scrap the notified SEZs in the state would have an adverse impact on the investment climate in Goa.
“We believe that good governance requires consistency in policy and that once you declare a policy and people have acted on that, it is wrong to reverse it and cause difficulties and losses to investors,” said Amar Lulla chief executive officer of Cipla Ltd., Mumbai.
Reacting to the government’s decision to withdraw the allotment of land and their submission to the high court of Bombay at Goa that the government has lifted the stop work order issued to Meditab Specialities Pvt Ltd, which was setting up a SEZ in Keri, Ponda, Lulla said, “We will have to take steps as are legally advised. This can’t be the end of the road for us, as we have already invested close to Rs 200 crore in the project.”
He said that they had invested in Goa pursuant to the government policy inviting development of SEZs. “The whole purpose was to set up a dedicated SEZ for pharma units. This would have brought substantial investment and employment benefits to Goa.
Further, the units were to be non-polluting and putting no infrastructure burden on the State. The idea was to set up a world class pharma park in Goa,” he said.
Meditab, that was allotted land at Keri, Ponda for setting up a pharma park/SEZ had approached the court stating that the chief secretary of the state, J P Singh had threatened them. They were allotted 12,32,000 sq mts land by Goa Industrial Development Corporation (GIDC) on April 28, 2006 and a year later, on April 10, 2007, the development commissioner, ministry of commerce and industry, GoI notified the area as SEZ for sector-specific pharmaceutical industries.
In May 2007, Meditab allotted two plots of land to Cipla Ltd to set up its units for manufacturing aerosol. Trouble started from November 22, 2007, when people started objecting to the Meditab SEZ project.
Lulla said that many strongly believe that the SEZ movement is a politically motivated movement and is not one which is reflective of the views of the majority of the people of the state.
“The SEZ is clearly in the public interest and the opponents are misinformed and misguided. The Goa government is legally and constitutionally bound to implement the SEZ policy which was a validly notified policy and on the basis of which we have acted and incurred huge costs and liabilities. The attempt by the government to change its stand is unjustified and illegal,” he added.

June 26, 2008, The Times of India, Goa edition