Even though Mohun Bagan have entered the ISL after a merger with ATK, the Goan insists that East Bengal's presence in the ISL will just spice up the rivalry between the traditional giants of Kolkata football.
"The ISL is now the number one league of the country and everyone wants to be there. Everyone wants the big piece of cake and that is where the rivalry of Mohun Bagan and East Bengal will continue," Colaco told Goal.
"When Mohun Bagan got into the ISL, East Bengal also had to get there. They (East Bengal) approached Mamata Banerjee's government to get it (possible ISL spot)," he added as the Red and Golds recently roped in Shree Cement Limited as their investors before picking up the ISL bid.
"The rivalry is great but it is not going to be ATK and somebody else but Mohun Bagan and East Bengal and people love that. There is not going to be a crowd bigger than the one you get for a Mohun Bagan vs East Bengal match in Kolkata," he exclaimed.
Colaco, who has coached East Bengal for around two seasons between 2013 and 2015, touched upon his derby memories.
"You can lose to anyone but you cannot afford to lose the (Kolkata) derby. People start coming to the stadium from the morning of the game. I have experienced it first hand and I am proud that I never lost against Mohun Bagan," said Colaco who has never lost a Kolkata derby as East Bengal coach.
The former Dempo coach is currently happy with life in Goa as technical director of Sesa Football Academy.
"I enjoyed the best of my coaching career and now I thank the directors of Sesa for my role over here. I get offers like the one from Peerless (Kolkata) and Ozone FC (Bengaluru) but I have grown very fond of my grandchild to leave Goa now," he concluded.