MahaConnect The Business Newsletter
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1 Government of Maharashtra MahaConnect The Business Newsletter 57 th Edition - January 2015 From The Government of Maharashtra-MIDC
2 Contents 1 Management s view 2 Government initiatives 3 Infrastructure development 4 Maharashtra key updates 1
3 Management s view
4 Management's view Dear Readers, As you are aware, Maharashtra is the most preferred investment destination in India. The state s attractiveness emanates from various factors, such as its geographical location, long coastline which facilitates trade and commerce, availability of finance, skilled labour, favorable policy and regulatory environment, and expanding infrastructure, among others. Last month, the Government of Maharashtra (GoM) announced measures for easing doing business in the state, particularly with respect to reducing the number of approvals. Continuing with its reform agenda, this month as well the state government announced few more measures. Therefore, this month s issue particularly focuses on the state government s initiatives for ensuring a remarkable investment experience for the investor community. In addition, the state government is also expending efforts for expanding its infrastructure, taking in cognizance their need for uninterrupted power supply, good connectivity and logistics the must haves for thriving industries. In addition to the above, this month s edition of MahaConnect also brings to you key updates from the state covers a broad spectrum of areas such as ease of doing business, stance on river policy, promotion of SEZs and investment opportunities presented by the state s infrastructure sector. Continuing with our endeavour of keeping you updated of the latest developments in the state, we bring to you this month s Mahaconnect and hope that you would find it informative. To ensure an enriching experience for our readers, we look forward to your valuable suggestions and feedback, as always. We urge you to write to us at mahaconnect@midcindia.org and visit our website for further details and investment opportunities. Bhushan Gagrani (IAS) Chief Executive Officer Maharashtra Industrial Development Corporation Government of Maharashtra 3
5 Government initiatives
6 Government initiatives Government of Maharashtra proposes changes in labour laws State launches Make in Maharashtra campaign The Government of Maharashtra (GoM) has proposed to make amendments to the Industrial Disputes Act. The amendment may come in the form of exempting establishments (employing less than 300 employees) to obtain government permission before closure. GoM is of the view that the law in its present form has placed an artificial limit and that it increases contract labour. If the proposal is accepted, ~95 percent of the industrial units established in the state would be able to close units Without prior government Permission. In order to promote industrial production and support Government of India s Make in India campaign, the GoM launched the Make in Maharashtra campaign. Through this campaign the state government aims at attracting an investment of INR 5 lakh crore and generate 20 lakh jobs in the next five years. To ensure effective implementation of the same, the state government has been undertaking several measures such as formation of two independent high powered committees to oversee implementation; efforts at reducing the number of permissions required to setup industries to 25 from 76 at present; sector-wise development to provide the necessary facilities and development of new industrial areas. 5
7 Government initiatives State unlocks more agricultural land for industrial use GoM launches Transforming MMR initiative The government is considering increasing the floor space index (FSI) for industries in agricultural zones by 150 percent to 0.5 from 0.2 at present. FSI is the ratio of built-up area to total plot area. In addition, the state government has launched the process of removing restrictions imposed on the use of agricultural land for industrial use by the Bombay Tenancy and Agriculture Lands Act, In order to attract higher investment in the state, the GoM has launched an initiative to transform Mumbai Metropolitan Region (MMR) into a commercial, financial and entertainment hub. The initiative known as MumbaiNext aims at generating US$50 billion in income, its estimated potential. To this end, the state government has tied up with Mumbai First, a private organisation that supports policy development for improving Mumbai s living conditions. 6
8 Infrastructure development
9 Road to growth Infrastructure development Project 1: Delhi-Mumbai Industrial Corridor (DMIC) Description: DMIC is state sponsored Industrial Development project of Government of Project 3 India, which focuses on majorly the expansion of Infrastructure and Industrial smart cities including industrial clusters and rail, road, port, air connectivity. Nearly 150 km either side from Dedicated Freight Corridor (DFC) covers DMIC - ~18% of DMIC Project Influence Area Year 5 (PIA) is in Maharashtra. Project 3 During phase I, Shendra Bidkin Mega Industrial Park in Aurangabad, Dighi Port Industrial Area in Raigad, Business District Centre in Aurangabad and Multi Modal Logistic Park in Karmad near Aurangabad are planned. First phase of each project will be of 10 years. Project 2 Phase II will have Mega Industrial park in Dhule, Greenfield Mega City in Ahmednagar and Nashik Sinner investment region in Nashik. Year 3 Project cost: Phase I will be approx. US$ 3 billion Location: Mumbai, Navi Mumbai, Thane, Nashik, Pune, Aurangabad, Ahmednagar, Dhule, Nandurbar and Raigad Approval: Phase 1 plan approved in principle Year 1 Project 1 Year 1 Project status: Project is in Phase 1 and about 4,000 hectares of land will be acquired for Shendra Bidkin Mega Industrial Park. Land acquisition is in progress for about 2,000 hectares of land in the Dighi Port Industrial Area 8
10 Road to growth Infrastructure development Project 2: Japanese Investment Zone - Supa Project 3 Description: The Project intends to augment investments by Japanese Companies in the State of Maharashtra. Multi product Industrial Park will be set up on the contiguous land of 500 acres at Supa Parner Industrial Area in Ahmednagar District. Project 3 Year 5 Implementing agency: MIDC Project 2 Project cost: US$ 25 million (towards Industrial Park Development) Location: Ahmednagar Year 3 Project status: RfP is published for Selection of Developer from Japan Project 1 Year 1 Year 1 9
11 Road to growth Infrastructure development Project 3: Mumbai Coastal Road Project 3 Description: An ambitious 34 km coastal road from Mumbai's Nariman Point to Kandivali in the western suburbs to decongest western suburb traffic. Implementing agency: To be decided Project 3 Year 5 Project cost: ~US$ 1.3 billion Project 2 Location: Western Costal Stretch of Mumbai City Approval: Project has received in-principle approval from Union Ministry of Environment Year 3 Project status: Project report is ready and waiting for environment clearance Project 1 Year 1 Year 1 10
12 Maharashtra Key updates
13 The World Economic Forum, 2015 The Honorable Chief Minister of Maharashtra - Shri. Devendra Fadnavis - was nominated by the Honorable Prime Minister of India to participate at the annual summit held is Davos-Klosters, Switzerland from Wednesday 20 - Saturday 23 January The idea was to further promote the Make in India campaign launched by the Government of India and seek investments into Maharashtra. Overall, the event and the state participation went off successfully, with several key addresses delivered by the state and government-to-business meetings held with diverse set of companies that evinced interest in investing in the state. In addition, the GoM also discussed its various initiatives under progress that have been announced to ease doing business in the state and ensure a remarkable investor experience. 12
14 Government of Maharashtra and UKIBC sign MoU for Ease of Doing Business Government of Maharashtra and United Kingdom trade facilitation body UK India Business Council (UKIBC) have signed a formal Memorandum of Understanding (MoU) on Ease of Doing Business at UKIBC office launch at Mumbai on 12 January British Minister for Trade and Investment Lord Livingston along with Maharashtra Minister for Industries, Mr Subhash Desai inaugurated Mumbai s new UK India Business Centre at Bandra Kurla Complex. The two Ministers jointly launch of the Centre and welcomed the strong and growing industrial and commercial partnership between the two countries. Mr Bhushan Gagrani, CEO, MIDC said: In order to improve India s ranking in World Bank s Ease of Doing Business Index the Industry department in Maharashtra is not only revamping the business procedures but also working with other government departments to make sure there is a single line of command and faster clearances. We are also in the process to fix responsibility for things to be delivered and reduce the number of days required to start business. Mr Richard Heald, CEO, UKIBC said: MoU between UKIBC and MIDC is an important initiative towards making India a more prosperous and competitive economy and a significant step in this direction will contribute considerably in making it easier for the foreign businesses to invest in India especially in Mumbai. It is a unique time in the history of two nations to work together and boost competitiveness by bringing leaders from different spheres together to make a positive and lasting impact towards improving ease of doing business together. We are indeed very delighted to be able to contribute to this significantly. 13
15 Pravasi Bhartiya Divas Pravasi Bharatiya Divas (PBD) is celebrated on 9th January every year to mark the contribution of overseas Indian community in the development of India. This year the 13 th Pravasi Bharatiya Divas had been celebrated from 7 th January to 9 th January at Gandhinagar, Gujarat. Chief Minister, Mr. Devendra Fadnavis assured everyone present that there are a number of different sectors in the state, from which the industrialists can choose and complete support will be given by state administration. He also said that infrastructure projects worth Rs.1 lakh crore were coming up in Maharashtra and would create lots of opportunities. This includes Navi Mumbai International Airport, Nagpur multi-cargo hub and other such projects. MIDC participated in Pravasi Bharatiya Divas to promote State of Maharashtra and clear doubt about industrial investment in Maharashtra under guidance of Mr. Anand Rayate (Jt. CEO), Mr. Vishwanath Rajale (Technical Advisor) and Mr. Ashok Patil RO, Kolhapur. MIDC promotion Stall was well attended by visitors from all part of the world and shown their interest to associate with Maharashtra in near future. 14
16 SEZ roadshow MIDC in association with Export Promotion Council of India at Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) hosted SEZ Roadshow on 29 th December Chief Guest of the event was Mr. NPS Monga, Zonal Development Commissioner of Union Ministry of Commerce and Industry. During his address to city-based industrialists at MCCIA he said 15 new services will be made available online, which will assist entrepreneurs to get faster and speedy redressal of their proposals and other applications. Mr. Moonga also indicated that Ministry of Commerce and Industries is committed to boost exports from Special Economic Zones (SEZs) and that can be done only by improving ease of doing business and making it actually a single window clearance system and proposed 15 new online services is a part of such initiative only. Shri N.P.S. Monga Development Commissioner, SEEPZ-SEZ During the event, MIDC showcased their facilities available at Hinjewadi, Shendra, Kesurdi and Phaltan SEZs and expressed commitment to facilitate investors and entrepreneurs in all possible ways. Avinash Dhakne, Deputy CEO, MIDC informed investors that MIDC is well committed and ready to support industries and entrepreneurs who wish to set up units in SEZ. He urged the business community to come with ideas to MIDC and as a State industrial development authority, MIDC will facilitate all the things. PC Nambiar, Chairman EPCES indicated that long-pending demand of the SEZ Developers i.e. allowing use of non-processing area by users from outside SEZ has been heard by Ministry of Commerce & Industry along with Ministry of Revenue and soon a notification about such dual utilization of social infrastructure in non-processing area will be issued by concerned officials. He also reiterate the commitment of EPCES that they are trying hard to revamp SEZs by making presentation across country and suggesting various policy measures and changes to the Central Government and State Government, which will help in getting investors confidence back to the SEZs. Event was well attended by more than 100 members from business communities in and around Pune, Aurangabad, Phaltan and Satara. Shri P.C. Nambiar Chairman, EPCES 15
17 Government of Maharashtra scraps RRZ Policy Maharashtra RRZ (River Regulation Zone) policy had been introduced in the year 2000, under Section 5 of the Environment Protection Act to regulate industrial activity near river banks. According to the policy, areas within two kilometers of high flood lines on either side of the basin are to be treated as no-development zones. On 20 January 2015, government has decided to scrap the RRZ policy. A new policy would be framed in conformity of the national policy. The state government feels that the policy has created a deadlock in the state s industrial growth by preventing the industrial units to come up on riverbanks. The industry department was flooded with requests to abolish the policy. The department then wrote to the environment ministry which further sought an opinion from the law and judiciary department. Removal of RRZ policy has opened roads for projects worth Rs. 7,000 Crores. 16
18 For feedback, write to us at: Contact us: Maharashtra Industrial Development Corporation Udyog Sarathi Mahakali Caves Road, Andheri (E) Mumbai Phone: /54/73 Fax:
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