The 'Sunburn 2012', an electronic dance music festival is scheduled to be held from December 27-29 in Goa.
Parrikar said he will also suspend the police officials, if they are found not to be taking action against the use or sale of narcotics.
He also said that the CCTV cameras installed to monitor movement of the participants at the festival would be under police control.
"Police might not man it, but whenever we ask for the footage, the organisers will have to give the access," he added.
'Sunburn' has been given permission in-principle, he said, adding that the state government's committee will give a formal approval to it after going through the guidelines.
The chief minister had on Saturday announced that the event would be made smoke-free and a tab would be kept on sale and consumption of drugs during the fest.