With just 45,000 inhabitants, Panaji is one of the country's smallest and most pleasant state capitals. Although it has been given an Indian name, everyone still uses its Portuguese name: Panjim. Located on the south bank of the Mandovi River, it became the capital of Goa in 1843. The Portuguese viceroys had moved their residence from the outskirts of old Goa to the former palace of Adil Shah in Panjim as early as 1759. Many Portuguese signs can still be seen above stores and cafés, and on administrative buildings. The city has preserved its Portuguese heritage, particularly in the old Fontainhas district: narrow, winding streets, old colonial houses with balconies, red-tiled roofs, azulejos on the doors of the houses. The nearest beach is at Miramar, 3 km along the road to Dona Paula.

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