103rd Meeting of Board of Directors held on 7th July 2006.

MINUTES OF THE 103rd MEETING OF THE BOARD Of DIRECTORS OF GHRSSIDC HELD ON 7thJuly, 2006' at 11.00 A.M. AT HOTEL MANDOVI, PANAJI
 
The following members were present
     
1) Mrs. Victoria R. Fernandes, MLA Chairperson
     
2) Shri Savio De Souza Director
     
3) Shri Keshav K. Kamat Director
     
4) Shri Girish Chodankar Director
     
5) Shri Nilesh S. Pednekar Director
     
6) Shri Venkatesh A. Dessai Director
     
7) Shri Prasad R. Naik Dessai Director
     
8) Shri Manuel Vaz Director
     
9) Secretary (Industries) Director
     
10) Shri Nikhil U. Desai Managing Director
     
 
Item No.1: Leave of Absence
 
Shri William Gonsalves, Director & Shri Dinesh Nair, Director remained absent The board was of the opinion that un-communicated absence should not be regularized in future meetings
 
Item No.2: Confirmation of the Minutes of the 102nd Board Meeting
 
M.D. read out the Action taken report of the 102nd Board Meeting of the Corporation and after further deliberations / discussions the Board suggested changes in the respective agenda and the minutes were confirmed with the following changes/suggestions therein.

Item No.3 & 4
 
M.D. informed the Board that these were separate agenda items placed in the current Board Meeting for discussion and necessary action.
 
Item No.8
 
All the Board Members were of the view that instead of appointing the staff at Agra & New Delhi on contract basis, the emporia should be managed on Franchise basis and the detailed modalities have to be worked out. It was further resolved that the Corporation should take up the matter with the Government of Goa to allot suitable place in the newly constructed Goa Sadan to permanently display Goan Handicrafts / products. The Board authorized the Managing Director to take necessary action in the matter.
 
Item No.10
 
This matter was discussed extensively among the Board members and it was brought to the notice of the Board by the M.D. that the Electricity Department had floated a tender for procurement of, RCC Poles in the absence of the Rate Contract with the Corporation. He mentioned that in order to ensure the financial well being of the Corporation it was important that additional items were included under Rate Contract / Preferential Purchase Scheme. Secretary Industries informed that the matter could be discussed in the meeting of the next Rate Contract Committee.
 
Item No.11
 
M.D. informed the Board that he had not perused the concerned file regarding office renovation and therefore he requested for some time to study the matter.
 
Any Other Item
 
The matter was again discussed and it was decided to withhold and cancel the earlier applications under DDSRY and invite fresh applications. However, those who applied for the new forms may be allowed to attach the old documents, such as birth certificate, valid no objection certificates, etc. which are lying with the Corporation, and no fresh documents will be asked from the applicants, in order to ensure that no undue hardships are caused to the applicants.
 

It was decided that this matter should be brought to the notice of the Government and necessary changes could be incorporated in the scheme. It was further decided that new applicants should attach the NOC from the Competent Authority for erection of their kiosk at a particular place at the time of submission of forms so that allotment process can be completed faster.
 
Item NO.3 : To confirm and ratify the appointment of Shri Nikhil U. Desai as Managing Director of the Corporation
 
The Board noted the Agenda Item and passed the following resolution.
 
RESOLUTION NO. 1007
 
"Resolved that the appointment of Shri Nikhil U. Desai as Managing of the Company vide Order No.6/2/2002/Per [Part] dated 15/05/06 be and is hereby confirmed and ratified."
 
"It is also resolved further that the powers delegated to the Managing Director of the Company vide Board Resolution passed from time to time, be exercised by Shri Nikhil U. Desai in his capacity as Managing Director of the Company."
 
"Resolved further that Form NO.32 as required under the Companies Act, 1956 be filed with the Registrar of Companies regarding the change in the Board of the Corporation."
 
"Resolved further that Managing Director be and is hereby authorized to take further necessary action in the matter,"
 
Item NO.4: To consider the increase in authorized Capital of the Company from Rs. 4 Crores to Rs.8 Crores and consequent alteration of Memorandum and Articles of Association of the Company.
 
M.D read out the agenda note on item no.4 and explained in detail the objective of the concerned proposal to the Board and after discussion the Board approved the agenda item as per the resolution below.
 
RESOLUTION NO.1008
 
"Resolved that the proposal to increase the authorized Share Capital of the Company from Rs.4. Crores to Rs. 8 Crores be and is herby approved."
 

Resolved further that the alteration to the Memorandum of Association of the Company towards the increase in the Authorised Share Capital of the Company be and are hereby approved
 
"Further resolved that the Managing Director of the Company be and is hereby authorized to conyey.an extra-ordinary general body meeting for obtaining the approval of the general body for increasing the authorized capital and consequent alteration of the authorized share capital be and is hereby approved."
 
"Resolved further that an amount of Rs. 4.4998700 Crores may be released by the State Government as contribution towards the share capital of the GHRSSIDC with immediate effect."
 
"Resolved that the Managing Director of the Company be and is hereby authorized to take further necessary action in the above matter."
 
Item NO.5
 
Request for re-appropriation in the Budget provision provided by the State Government
 
M.D. explained in detail the requirement of funds for the implementation of the scheme through Grant in Aid since the Corporation through its own funds cannot incur the expenditure of such schemes. M.D. proposed that the matter has to be taken up with the Government of Goa for re¬appropriation in the Budget provision in order to re-appropriate the amount of Rs.140.00 Iakhs as Grant; in Aid out of the budget provision of Rs.590.00 Iakhs towards investment. After brief discussion, the Board authorized M.D. to take up the matter with the Govt. of Goa requesting them to re-appropriate the Budget and allocate the funds to the following schemes under Grant in Aid. The re-appropriation of the Budget may be taken up as per the following pattern of assistance under the respective schemes to be implemented by the GHRSSIDC.
 
(i)
Training Scheme for Artisans and unemployed youth.
Rs.25.00 Iakh
     
(ii)
Scheme of Marketing Support., Documentation and setting up of Websites
Rs.30.00 lakhs
     

(iii)
Organising of annual Aparant Maand(1 in the North Goa and in the South Goa for promotion of Goan Handicrafts & providing incentives to Goan Artisans
Rs.25.00 lakhs
     
(iv) Contribution towards Subsidy Component of the Mahila Swayam Rojgar Yojana Scheme Rs.10.00 lakhs
     
(v) Participation in various trade Fairs , Handicrafts promotion /Crafts mela /Exhibitions in Delhi, Mumbai, Hyderabad, & Abroad Rs.25.00 lakhs
     
(vi) Subsidy Scheme for artisans manufacturing Clay Idols Rs. 25.00 lakhs
     
 
Total :
Rs.140.00 lakhs
 
After discussion, the Board approved the agenda items as per the resolution below
 
RESOLUTION No.1009
 
"Resolved that the formulation of the scheme and the allocation of Grant in Aid to the following schemes be and is hereby approved."
 
"Further resolved that the Coorporation may work out the following schemes and the same shall be put up before the Board for final approval.
 
(i)
Training Scheme for Artisans and unemployed youth.
Rs.25.00 Iakhs
     
(ii)
Scheme of Marketing Support., Documentation and setting up of Websites
Rs.30.00 lakhs
     
(iii)
Organising of annual Aparant Maand (1 in the North Goa and in the South Goa )for promotion of Goan Handicrafts & providing incentives to Goan Artisans
Rs.25.00 lakhs
     
(iv) Contribution towards Subsidy Component of the Mahila Swayam Rojgar Yojana Scheme Rs.10.00 lakhs
     

(v) Participation in various trade Fairs , Handicrafts promotion /Crafts mela /Exhibitions in Delhi, Mumbai, Hyderabad, & Abroad Rs.25.00 lakhs
     
(vi) Subsidy Scheme for artisans manufacturing Clay Idols Rs. 25.00 lakhs
     
 
Total :
Rs.140.00 lakhs
     
"Resolved that the Managing Director of the Company be and is hereby authorized to take further necessary action in the matter."
 
Item No.6 : Mahila Swayam Rojgar Yojana
 
As approved in the last Board meeting, the matter came up for discussion. Chairperson informed the members that the scheme intended to generate opportunities to the unemployed women from rural and urban areas. She felt that the GHRSSIDC should provide marketing support to sell their products in the open market. After an elaborate discussion, it was resolved that the name of the scheme may be changed from Gramin Mahila Swayam Rojgar Yojana to Mahila Swayam Rozgar Yojana thereby deleting the word "Gramin" . M.D. informed that the scheme should be reworked and the same should be implemented through Lead Bank as it was observed that often recoveries of loan installments was difficult and a lot of time and effort is wasted in ensuring recoveries of the loan amount. Mr. Girish Chodankar submitted that it was his personal experience that Banks often hesitate to advance loans and create many difficulties to the borrower. M.D. assured that the Corporation will actively c00rdinate with the Banks in order to resolve such issues so that the beneficiaries are not adversely affected.
 
The Board further authorized the M.D. to make necessary changes in the scheme by consulting the Lead Bank Manager and to submit the redrafted scheme for approval of the Chairperson after which the matter could be submitted to the Govt. of Goa for approval of the scheme. It was further resolved that the scheme may be continued for the next five financial years and Rs.10.00 lakhs may be provided by the State Government towards Grants in Aid for covering the subsidy component of the scheme, for the financial 2006-07.
 

Item No7: Ban on Plaster of Paris Ganesh Idols
 
M.D read out the agenda note on item no.7 and explained in detail the objective of the concerned proposal to the Board. Secretary (Industries) informed the Board that he has already instructed the Collector, North & South Goa to implement the ban on the Plaster of Paris Ganesh Idols. M.D. informed that a Notification may be issued by the State Government under the relevant act so that in case any aggrieved party approaches the Court of Law, then there should not be any adverse judgment against the Government.
 
After discussing the matter the Board passed the following resolution
 
RESOLUTION No.1010
 
Resolved that the State Government may enforce the ban. on manufacture / trading of Plaster of Paris Ganesh Idols during the forthcoming Ganesh Chaturthi Festival in order to prevent the environmental damage and also to preserve the interest of Clay idols manufacturing artisans.
 
Mr. Girish Chodankar proposed that the GHRSSIDC should implement a scheme to provide I subsidy to local artisans manufacturing clay Ganesh idols. He also submitted that such a scheme could'also be extended for artisans manufacturing similar type of religious clay idols. The Board unanimously approved this proposal and passed the following resolution.
 
"Resolved that a scheme may be formulated by the GHRSSIDC for providing subsidy to the artisans manufacturing clay idols intended to be utilized for religious purposes, in order to encourage this traditional art form.
 
It was further resolved that the State Govt. may provide Rs.25.00 lakhs as Grants in Aid to the Corporation for meeting the subsidy component of the scheme.
 
It was also resolved that the M.D. be authorized to work out a suitable scheme and to obtain the approval of the Chairperson so that the scheme could be forwarded to the State Govt. for approval."
 
It was also decided to call an immediate meeting of the Ganesh Idols manufacturers to obtain their suggestions in order to enable the Corporation to work out the modalities of the proposed subsidy scheme.
 

Item No.8 : Shifting of Leather Training and Production Centre at Davorlim, Salcete.
 
M.D read out the agenda note on item no.8 and explained in detail the objective of the concerned proposal to the Board. The Board discussed the proposal and recommended that the Corporation should take active steps to train unemployed youth in the trade of making leather articles. This would help in generating self employment opportunities for the Goan youth. The Board therefore unanimously resolved to shift the leather training and production Centre at Davorlim in the Salcete Taluka and decided to request The Inspectorate of Factories and Boilers to over haul the machinery and to bear the cost for shifting the same to the proposed premises at Davorlim and further authorized the Managing Director to take necessary action in the matter. The Board also resolved that the cost of training should be reimbursed completely to the Corporation by the State Govt. as Grants in Aid and directed the M.D. to work out a suitable training scheme and to put the same before the Board for approval.
 
Item No.9 : Enhancement of service charges payable by Govt. departments from 1% to 3%
 
M .D read out the agenda note on item no.9 and explained in detail the objective of the proposal to the Board. The Board noted the aienda and peed the following resolution;
 
RESOLUTION NO:1011
 
"Resolved that the service charges payable by the State Govt departments for various articles supplied by GHRSSIDC under Preferential Purchase Scheme may be enhanced from the existing 1 % to 3%."
 
"Resolved further that the Managing Director be and is hereby authorized to take necessary action in the matter."
 
Item No.10
Addition to Stores Items for supply to Govt. of Goa under Preferential Purchase Scheme not produced by SSI Units but dealt by Distributors / Dealers
 
M.D read out the agenda note on item no.10 and explained in detail the objective of the concerned proposal to the Board.
 

The Board noted the agenda item and after deliberations and discussions the Board felt that the Corporation should be designated as the Central; Store Procurement Agency for procuring various items to all the Govt. Departments/semi 'Govt. Institutions/ Autonomous Bodies. The Board felt that this will enable the Corporation to be economically self-reliant. The Board also approved the inclusion of additional stores items from authorized Distributors / Dealers and which are not produced by the SSI Units and also not covered under the Preferential Purchase Scheme, for supply to Govt. departments. Further, the Board authorized M.D. to make a list of the proposed items to be supplied and to work out further modalities in the matter.
 
Item No.11
 
Closure of Steel Yard at Kakoda
 
M.D read out the agenda note on item no.11 and explained in detail the objective of the concerned proposal to the Board. M.D. informed that the Kakoda yard is incurring losses and hence proposed that the steel yard operations at Kakoda may be closed. Mr. Girish Chodankar requested the Board to allot a small space in the existing yard for sale of produce of the local horticulturists. After brief discussion, it was decided as follows
 
(i) That the Kakoda yard may be closed down immediately.
   
(ii)
That the existing shed in the yard to be renovated and will be used as a place for imparting Handicrafts training in different crafts.
   
(iii)
That the surrendering of land to GIDC may be kept in abeyance till further decision is taken in the matter.
   
(iv)
That a suitable place / land may be allotted in the Kakoda Yard to Horticulture Corporation of Goa Govt. after obtaining the permission from GIDC.
   
(v)
The Board further authorized M.D. of the Corporation to take necessary action in the matter.
 

Item.NO.12 : Establishment of Common Facility Centre at Davorlim, Salcete, Goa for training Rural Artisans
 
M.D read out the agenda note on item no.12 and explained in detail the objective of the concerned proposal to the Board. The Board noted the agenda item and approved the establishment of Common Facility Centre at Davorlim, Salcete, Goa for training Rural Artisans and State Govt. should provide the necessary financial assistance in establishing the Common facility Centre
 
Item' No;13 : Decision regarding Heena Brand Pa ad / Vermicelli making machine
 
M.D read out the agenda note on item no.13 and explained in detail the objective of the concerned proposal to the Board. He informed that presently the Papad / Vermicilli Machine was, lying idle and that it was necessary to put it to use with immediate effect. It was submitted by Shri Keshav Kamat, Director that he will explore the possibility of engaging some Self Help Groups to take up the production of Papad / Vermicilli and will make use of the machine in an effective manner so that the rent payable for the premises could be compensated and employment opportunities could be generated for the unemployed youth of the locality
 
Item No.14 Finalizing and approving of placing of work order for beautification of Traffic Island along NH in front of Sai Service, Porvorim on M/s. Jay gee Constructions, Merces
 
M.D read oat the agenda note on item no.14 and explained in detail the objective of the concerned proposal to the Board. He explained that in order to beautify the traffic island at Porvorim, estimates were called from the empanelled architect Mr. Siddha Sardessai along with design'. The Architect submitted the estimate of Rs.1.20 lakhs. Accordingly, sealed tenders were invited by advertising in local daily. The same were opened on 23.6.06. The below mentioned parties quoted the rates
 
1) M/s. A. Ponnuraj, Merces, Goa Rs.1,79,457.00
     
2) M/s. Jay Gee Constructions Rs.1,76,475.00
 

However, on verification, it was noticed that the lowest rate of Jay Gee Construction of Rs.1,76, 475.001 was higher by 46.66% than the estimated cost of Rs..1.20 Iakhs. MD further explained that the lowest tenderer, M/s Jay Gee Constructions were called for negotiations on 29.6.06. The representative of Jay Gee Constructions stated that the estimates have been based on the current GSR 'rates and the rates in this CSR are not based on existing market rate for amount of steel, river pebbles etc. Further she stated that these rates have shown a steep rise in past 5/6 months. Therefore she was of the opinion that the rates quoted by hen are very reasonable. However, M. D. submitted that these rates were not acceptable and requested to reduce the rates. Ms. Vanita Kumar agreed to give discount of 10% on the quoted rates. Accordingly, the matter was forwarded to Mr. Sidle Sadness, Architect for his opinion and justification of rates of the party, which is higher than the estimated rates to the extent of 36.6%. Mr. Sidle Sadness, Architect, vide his letter dated 29.6.06 stated that the rates of the panty are based on the prevailing market rate as of date and it is absolutely fine to award the contract of the said project to the contractor. He therefore justified the cost reasonability of rates.
 
Thus the amount is higher than the estimated amount by 32.33% (well over 10%)
 
The power to grant relaxation for the same and to accept the rates quoted by the lowest party lies with the Board of Directors.
 
He informed that the matter is being placed before the Board of Directors for granting approval to the above proposal. The Board felt that construction of the traffic circle would give good publicity to the corporation and hence the said work must be carried out. The Board also felt that it was a fact that the rates of cement and other materials had indeed shown a rise and hence the rate of tender quoted by M/s Jay gee Constructions for Rs.1,58, 827/- was considered and approved as per the following resolution.
 
RESOLUTION NO.1012
 
"Resolved that the tender of M/s Jay Gee Constructions for Rs.1,58,827/- for the beautification of Traffic Island along N.H. in front of Sai Service, Porvorim be and is hereby approved.”
 
"Resolved further that M.D. be and is hereby authorized to take further necessary action in the matter."
 

Any Other Item
 
1)   The Board discussed the additional items and decided as follows
     
  (i)
As informed by M.D., a suitable VRS scheme was approved in principle and M.D. was directed to formulate a suitable scheme and to submit the same to the Board for approval.
     
  (ii)
That the 3 emporia at the Tourist Hostel, Panaji, DIM and Calangute may be given to eligible private parties for running the same. The modalities should be worked out and submitted to the Board for approval.
     
     
   
The meeting ended with a vote of thanks to the Chair.