Constitution of HPCC which gives approval for setting up of new large scale industrial units, expansion of the existing units, etc.

Dear Member,

Department of Industries, Trade & Commerce has informed vide letter no. No. 15/DITC/HPCC/MISC/07/Vol.1/128 dated 09/01/2009 has informed regarding “Concurrence of Directorate of Industries, Trade and Commerce, Panaji,while granting services to Industrial Enterprises”.

As you are aware that in order to expedite clearances to Large Enterprises from various statutory authorities the State Government has constituted the High Powered Co-ordination Committee (HPCC) which gives approval for setting up of new large scale industrial units, expansion of the existing units, increase in production capacity/power load etc.

Also consequent to the implementation of the Micro, Small & Medium Enterprises Development Act, 2006 which came into force w.e.f .02/10/06 envisages that any person who intends to establish a Micro, Small or Medium Enterprises are required to file applications for acknowledgment of Entrepreneur Memorandum Part-I (E.M. Part I)with the Directorate of Industries Trade and Commerce, Panaji which in turn issues an acknowledgment after allotting an Entrepreneur Memorandum Number. The said E.M. Part –I is valid fro 2 years from the date of issue and during which the concerned applicant unit needs to obtain all the requisite permissions, NOC’s etc. form all the statutory authorities before the unit commences production and subsequently needs to obtain an acknowledgment of Entrepreneur Memorandum Part- II (E.M. Part – II) from Directorate of Industries, Trade and Commerce once gone into commercial production.

However, various instances has come to the notice of this Directorate/HPCC/ Government that a number of Industrial Units/ Enterprises set up the their operations by obtaining either a plot from GIDC, power connection from Electricity Department, water connection from PWD, consent to operate/ establish from GSPCB, etc and approaches to Directorate of Industries, Trade and Commerce, Panaji, only for regularization of their units. Also these units are able to increase their production capacity, shifting of location, modification, expansion, diversification etc. by obtaining necessary facilities/Services/NOC’s / Permission etc. from statutory authorities and without prior consent/ approval of this Directorate/HPCC/ Government which is mandatory.

This practice itself defeats the basic purpose of constitution of High Powered Co-ordination Committee and an acknowledgment of EM’s which inturn lead to rampant changes by Industrial Enterprises without prior approval of Government wherever required. This also leads to non-availability of requisite statistics of enterprises operation in the State of Goa.

Now, therefore, the following measures are hereby suggested:-

(1)All the statutory authorities should insist upon E.M.Part – I /NOC of Directorate of Industries, Trade and Commerce, Panaji form all the applicant units who intends to set up new micro, small or medium enterprises/unit or request for any changes in their existing unit in the State of Goa, such as increase in power load, water connection, allotment of plot in the Industrial Estate, consent to establish etc. The Electricity Department may issue only temporary power connection during validity period of E.M. Part – I. Similarly temporary power connection during validity period of E.M. Part- I. Similarly Goa State Pollution Control Board may issue consent to establish only for a initial period of 2 years during validity of E.M. Part – I in case of Micro, Small, and Medium Enterprises.

(2) All the statutory authorities shall insist upon HPCC approval/ NOC of Directorate of Industries, Trade and Commerce, Panaji from the applicant unit who intends to set up Large Enterprise or intend to make any changes in the existing units such as increase in production capacity, request for additional plot, power load, water connection, consent to establish, request for loan/ subsidy etc.

Any consent given without adhering to the above instructions would be considered as illegal and would be at the risk of the issuing authority.

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