33 rd Issue. MahaConnect. The Business Newsletter. From Government of Maharashtra -MIDC. Knowledge Partner. Government of Maharashtra
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1 33 rd Issue MahaConnect The Business Newsletter From Government of Maharashtra -MIDC Knowledge Partner 1 Government of Maharashtra
2 Government of Maharashtra Contents Knowledge Partner Editorial Dear Reader, With the dawn of every new year, its always good to have some new year resolutions! MIDC has also taken resolve of keeping up with its tradition of being the most investor friendly IDC and wherever necessary reengineer our processes in order to facilitate our prospective clients. I, on behalf of MIDC wish you a very prosperous and fruitful year ahead. The new year started with the launch of the much anticipated, Industrial Policy In order to consolidate its position of being a leading industrial state, the state government launched this policy with the objectives of achieving manufacturing sector growth rate of per cent per annum; manufacturing sector share of 28 per cent of state GDP, creation of new jobs for 2 million persons and attract investments of INR 5 lakh crore (INR 5 trillion). In this edition, we have a district profile for Akola; a region renowned for its cotton production. Apart from cotton, Akola is also known for its oil, pulses and textile mills. Also, there is an industrial estate profile for Talegaon, special coverage of the eleventh PravasiBhartiya Divas and the Indian Business Leaders Summit in Mumbai. We hope that these articles are informative and help you in giving a perspective for your business strategies. For any feedback or query, please write back to us at mahaconnect@midcindia.org. Also, visit our website Warm Regards, Bhushan Gagrani (IAS) CEO, MIDC. Cover Story of the Month Maharashtra Industrial Policy 2013 Overview The current Maharashtra industrial policy was launched in the year 2006, and has exceeded the policy target. It has achieved a growth rate of 11.8 per cent vis-à-vis policy target of 10 per cent. Also, provided employment of 22 lakhs vis-à-vis policy target of 20 lakhs(mega and Large: 7 lakhs & MSME: 15 lakhs).. Read more on page 3,4 Akola A cotton rich region District Profile for Akola Akolais adistrict in the Indianstateof Maharashtra. The city of Akolais the district headquarters. Akola district forms the central part of Amravati Division. Akola district lies between to degree North Latitude and read more on page 5 Industrial Estate Profile Talegaon Conveniently located at a distance of 143 km from Mumbai, a couple of hours pleasant drive through the Borghatalong the Mumbai Pune express highway makes Talegaon easily accessible from Mumbai. From Pune, it is just 38 kms away..read more on Page 6 Eleventh PravasiBhartiyaDivas 2013 Events A delegation from Maharashtra, led by the Honorable Chief Minister of the state, Sh. Prithviraj Chavan attended the eleventh PravasiBharatiyaDivas convention held in Kochi from 7 to 9 January Read more on page 7. Indian Business Leaders Summit 2013 Events Maharashtra Industrial and Economic Development Association and SME Chamber of India organisedan Annual international event Indian Business Leaders Summit with the theme Global Entrepreneurial Network Read more on page 7 Feedback Your Thoughts. Many thanks for your message of for the latest newsletter which I have read with much interest....read more on page 8 2
3 Maharashtra Industrial Policy 2013 Overview Special Coverage (From Left to Right) Sh. Sachin Ahir -MoS, Industries; Sh. Narayan Rane-Minister of Industries; Sh. Prithiviraj Chavan -Chief Minister; Sh. Manu Kumar Srivastava -Principal Secretary, Industries and Sh. Ashish Kumar Singh, Principal Secretary, CM office Given the experience in the last five years, the GoM have developed the new policy to attract industries to Maharashtra. The objectives of the Industrial Policy, 2013 are: To retain Maharashtra s leadership position in industrial investment within the country To further accelerate investment flow to industrially underdeveloped regions of the state To create more employment opportunities The Policy targets include: To achieve manufacturing sector growth rate of per cent per annum; To achieve manufacturing sector share of 28 per cent of state GDP, To create new jobs for 2 million persons and To attract investments of INR 5 lakh crore (INR 5 trillion) The validity of the Industrial Policy, 2013 is from 1 st April 2013 to 31st March 2018 Some of the major highlights of the policy are: 1. Incentives for Mega Projects Criteria for qualification is based on Investment or employment Further to the threshold limits specified in the earlier industrial policy, a new category of Ultra Mega Projects have been added which includes projects where investment size is greater than INR 1500 crore or employment is greater than 3000 Naxalismaffected areas, i.e. Gadchiroli, Gondia, Chandrapur, Bhandara, Yavatmal and Nanded have been included along with the category of No Industry Districts to boost Industrial development 2. Incentives for Large Projects Industrial Promotion Subsidy o Every year, in areas other than A & B areas, the Industrial Promotion Subsidy payable will be calculated at the rate of 60% to 100% of VAT on local sales + CST payable on eligible finished products. o In areas other than A & B areas, to provide thrust to Food Processing Sector in the State, eligible units will be granted additional 10 per cent incentives and additional 1 year towards Eligibility Period. Energy and water audit o 75 per cent reimbursement of cost of water and energy audit limited to Rs. 1 lakh for water audit and Rs. 2 lakh for energy audit shall be admissible. o 50 per cent cost of capital equipment required for undertaking measures to conserve water and energy, limited to Rs. 5 lakh each will be granted to eligible units in the State. Stamp duty exemption o Eligible large units will be entitled to 100 per cent stamp duty exemption o In A and B areas, Stamp Duty exemption will be offered only to IT and BT units in IT and BT Parks. Eligible Units under PSI 2007 Scheme will also be eligible for stamp duty exemption for their Investment Period Electricity Duty exemption o Eligible new units in C, D, D+, No Industries Districts and Naxalism affected Area will also be entitled to exemption from payment of electricity duty for tenure equal to the eligibility period. Fig 1. Classification of Ultra Mega/Mega projects as per the Industrial Policy Type of unit Mega Industrial Unit Ultra Mega Industrial Unit Taluka/ Area Classification Fixed Capital Investment (in INR Crore) Direct Employment A & B 750 1,500 C 500 1,000 D & D Naxalism affected area and No Industry districts Entire state ,000 Fig 2. Classification of Large projects as per Industrial Policy Taluka/ Area Classification Monetary ceiling as per cent of admissible Fixed Capital Investment* Eligibility Period (years) A - 7 B - 7 C 30 7 D 40 7 (From Left to Right) Sh. Narayan Rane-Minister of Industries and Sh. Prithiviraj Chavan -Chief Minister of Maharashtra addressing the media during the press session Additional incentives will be provided to projects employing minimum twice the threshold number required to qualify as Mega Project at that location Customized Package of Incentives to Mega projects/ultra Mega Projects on case-to-case basis by the High Power Committee under Chief Secretary and higher incentives/ concessions and relaxing of conditions, on a case-to-case basis will be approved by Cabinet Sub Committee under Chairmanship of the Chief Minister Threshold limits for classification of Ultra Mega/Mega projects is are given in Fig.1 o In A and B areas, Electricity Duty exemption will be offered to 100 per cent EOU Large Scale units and IT/BT units for 7 years. Threshold limits for classification of Large projects is given in Fig.2 3. Incentives for MSME Projects For financial sustainability of MSMEs, the State Government, through Package Scheme of Incentives 2013, will provide a basket of fiscal support with the intent to lower cost of finances, and provide aid in the critical initial stage of operations. D No Industry Districts NaxaliteAffected Area
4 Maharashtra Industrial Policy 2013 Overview Special Coverage "The larger goal is to achieve faster economic growth, especially in themanufacturing sector by attracting investment and creating new employment. Manufacturing is expected to grow at 28% by the end of these five years. We are the first state in the country to initiate formation of Ultra-Mega Industrial Projects which will have an investment of more than INR 1,500 crore and will employ more than 3,000 people in each project." said the Honorable Chief Minister Sh. Prithviraj Chavan Fig 3. Threshold limits for classification of MSME projects Taluka/ Area Classification Monetary ceiling as per cent of admissible Fixed Capital Investment* Eligibility Period (years) A - 7 Industrial Promotion Subsidy o Equal to VAT on local sales + CST payable + 20% to 100% of ITC on eligible finished products. (In areas other than A areas on annual basis) Power tariff subsidy, o Eligible for new units o Located in Vidarbha, Marathwada, North Maharashtra, and Districts of Raigad, Ratnagiri and Sindhudurg in Konkan o Extent of Rs 1/-per unit consumed in above mentioned regions and in areas other than Vidarbha and Marathwada (except A areas) to the tune of Rs. 0.50/-per unit consumed o 3 years from the date of commencement of commercial production Interest 5 per cent p.a., maximum up to the value of electricity consumed and bills paid for that year, will be admissible. (In areas other than A area) Food Processing Sector Eligible units will be granted additional 10 per cent incentives and additional 1 year towards Eligibility Period. Energy and Water Audit o 75 per cent reimbursement of cost of water and energy audit o Assistance by way of 50 per cent grant limited to Rs. 1 lakh for water audit and Rs. 2 lakh for energy audit o 50 per cent cost of capital equipment required for undertaking measures to conserve water and energy, limited to Rs. 5 lakh each acquiring land (including assignment of lease rights and sale certificate) and for term loan purposes. o In A and B areas Stamp Duty exemption will be offered only to IT and BT units in IT and BT Parks. Electricity Duty Exemption o Eligible New MSMEs in C, D, D+, No Industries Districts and Naxalism affected Area will be entitled to exemption from payment of electricity duty for tenure equal to the eligibility period. o In A and B areas Electricity Duty exemption will be offered to 100 per cent Export Oriented MSMEs and IT/BT units for seven years. Threshold limits for classification of MSME projects is given in Fig Investor facilitation and ease of doing business The state has developed an integrated electronic single window portal, MahaeBiz which will facilitate clearances through a single window on behalf of several Government agencies to industrial entrepreneurs. The State Government will also to set up an Integrated Cell, under Principal Secretary (Industries) to carry out inter-alia various investment promotion activities. Simplification of administrative procedures will also be carried out by the State. Unlike the previous policy that aimed to attract investment from big industrial houses, it was heartening that the new policy targets micro, small and medium (MSME) firms and aims at an investment of Rs. 5 lakh crore and employment generation for 20 lakhpeople. said a CII spokesperson. For further information, please login to B 20 7 Additional Incentives C 40 7 D D o Incentives for improving Quality Competitiveness, Research and Development, Technology Up-gradation and Cleaner Production Measures will be continued with suitable modifications No Industry Districts NaxaliteAffected Area Stamp Duty Exemption o In addition to incentives listed above, eligible MSMEs will be entitled to 100 per cent stamp duty exemption within investment period for 4
5 Akola A cotton rich region Geographical Location Area District headquarter Population District Profile Between and latitude and and longitude, surrounded by Amravati district in the north and north-east, Yavatmal in the south-east, Washim in the south and Buldhana in the west 5390 sq. km. Akola Literacy rate 87.55% GDP Per capita income(in INR) Airports/ Nearest Seaport/ Nearest Roads Railways Major Crops Major Minerals Key Technical Institutions (in lakhs) (in INR Crore) 58,627 1 (Akola)/ Nearest International airport: Nagpur Mumbai 5364 km. 193 km. Soybean, Cotton, Jowar, Toor, Pulses 9 ITIs and ITCs Dr. Panjabrao Deshmukh KrishiVidyapeeth University, and 1 college with potential for excellence Akola District in Maharashtra Akola is a district in Maharashtra, with the city of Akola as the district headquarters. Akola district forms the central part of Amravati Division. Akola district lies between to degree North Latitude and 76.7 to 77.4 East longitudes. The district is situated in the western parts of the Nagpur Division of surrounded by Amravati district in the north and northeast, Yavatmal in the south-east, Washim in south and Buldhanain the west. The two main rivers of the district are the Purna and the Penganga, the other smaller rivers being the tributaries of these two rivers. They are the Katepurna, Shahanur, Morna, Mun, Nand, Man and Uma, which are the tributaries of the Purna, and the Adan, the Arna and the Pus which are the tributaries of the Penganga. The total area of the district is 5428 Sq. Km. which is about 1.76% of the total area of Maharashtra State. Cotton and Jawar are the predominant crops grown in the district. Oil and Dalmills are also wide spread. The economy is mostly agriculture based. Off late, soybean crop is an important crop as major soybean plants have come up in the area. Topography Out of total geographical area of the district, Sq.KM is under forest cover. The climate of this district is characterized by a hot summer and general dryness throughout the year except during the south-west monsoon season. The year may be divided into four seasons. The period from about the middle of November to the end of February constitutes the winter season. The summer season extends from March to June. This is followed by the south-west monsoon season which extends up to the end of September. October and November constitute the post-monsoon season. Demographics According to the 2011 census Akola district has apopulation of 1,818,617; roughly equal to the populations of the countries like Kosovo or the US state of Nebraska. This gives it a ranking of 262 nd in India (out of a total of 640).The district has a population density of 321 inhabitants per square kilometre (830 /sq mi). Its population growth rate over the decade was 11.6%. Akola has a sex ratio of 942 females for every 1000 males, and a literacy rate of 87.55%.. Transport Air Akola Airport (also known as Shivani Airport) is thedomestic airport of Akola city at an elevation of 999ft (304 m) and has one runway (4, ft). The airport is just 7 km away from the city on National Highway No. 6. The nearest international airport is atnagpur(250 Km) and at Aurangabad, Maharashtra(265 Km). Road The National Highway (NH) 6 runs through Akola from Hazira (Surat) to Kolkata. NH6 is a part of Asian Highway 46. Maharashtra state transport buses are most commonly used by people to travel to rural parts of the region. Railway Akola railway junction, situated on both the broad gauge Howrah-Nagpur-Mumbai line and the Kacheguda- Jaipurmeter gauge line, is an important junction for passengers from North and South India and also for freight trains. Major Sector/s MIDC Zones Industries Agriculture 7 ( Ha.) Akola, Akola (Central Government GC), Balapur(Mini), Patur(Mini), Murtijapur(Growth Center), Akot (Mini), Telhara (Mini) Major Players Education Akola has a famous Agricultural University Dr Panjabrao DeshmukhKrishi Vidyapeeth founded by Late Dr GopalraoKhedkar (PDKV or PKV). Some of the other courses offered such as Engineering at Shivaji Engineering College, Akola COETA Bhonsla College of Engineering & Research and MedicalScience colleges as Government Medical College, Akola, Jamnalal Goenka Dental College. Other prominently known colleges of Akola city are ShankarlalKhandelwal College of Science, Commerce and Arts, RLT College of Science,[5] LRT Commerce College, Shivaji Arts, Commerce and Science College, Tourism Akola Fort, which is also known as Asadgad, is one of the famous tourist attractions in Akola. The fort was constructed in 1697 by AsadKhan, during the rule of Aurangzeb. Another fort is the Narnala Fort, which is situated in Akola District of Maharashtra, is one of the famous attractions of the destination. Located on the Satpura hills in close vicinity of Shahnur, this fort is surrounded by dense forest. Narnala Wildlife Sanctuary, located few kilometres from Akola district in Maharashtra, is one of the famous wildlife sanctuaries in the country. Also, Raj RajeshwarTemple, which is dedicated to Lord Shiva, is visited by a number of devotees and tourists. According to Hindus, the Marathi month of Shravanis considered to be sacred. Therefore, devotees visit this temple to offer prayers at this temple to Lord Shiva during the Mondays of this month. Raj Rajeshwar Temple NarnalaFort 5
6 Industrial Estate Profile Talegaon Industrial Estate Profile Location Profile Geographical Features Longitude : ' East Latitude : North Altitude : 615 metres ( 2017 feet). Temperature Summer Average from C Winter Average from C. Rainfall : Average rainfall of 700 mm Rock Available : Hard Rock available Water Infrastructure Availability Permanent Water Supply Scheme of 7.5 MLD capacity from Andhra Dam has been implemented by MIDC. Source Andhra Dam Supply Scheme 7.5 MLD Plot holder name M/s General Motor M/s Toyota M/s Raymond M/s Larsen & Toubro Limited Major Players in Talegaon Type of industry Automobile Automobile Textile Engineering Regional Office Jog Centre,2nd Floor, Pune Mumbai Road,Wakdewadi, Pune Tel : /5, Fax : ropune@midcindia.org Officers in Charge: Shri. Nilesh Gatane ( RO), Shri.A.M.Bhosale(AM) District: Pune Classification: B Puneis the seventh largest metropolis in India, the second largest in the state of Maharashtra, after Mumbai and the largest city in the Western Ghats. Pune is located on the western margin of the Deccan plateau. It is situated on the leeward side of the Sahyadrimountain range (the Western Ghats), which separate it from the Arabian sea. Pune also well known for its educational centresand also as an major IT centre with major companies marking their presence. General Information Site Connectivity Conveniently located at a distance of 143 km from Mumbai, a couple of hours pleasant drive through the Bor ghatalong the Mumbai Puneexpress highway makes Malegaon easily accessible from Mumbai. From Pune, it is just 38 kms away. By Road:- Talegaonis Located near National Highway 4, 117 km from Mumbai, 38 km from Pune By Rail :- Talegaonis well connected through rail by major cities. Nearest railway Station-Talegaon(7 km), Pune-Talegaon( 39 km) Mumbai- Talegaon (126 km). Airports:- Nearest international airport -Pune(45 km), Talegaon- Mumbai ( 135 km) Water Ports:-Nearestport Mumbai Port trust (104 km) Social Infrastructure Colleges:- MIMER Medical College (Talegaon), College of Engineering (Shivajinagar,Pune), Indrayani College (Talegaon), Fergusson Arts & Science College (F.C. Road, Pune). Hospitals:- TalegaonGeneral hospital (ChakanRoad,Talegaon), Seva-Dham Hospital (Pune), Jehangir Hospital(Sassoon Road,Pune), Aditya Birla Memorial Hospital (Chinchwad), LokmanyaHospital ( Chinchwad) Schools:- ShriSharadchandra Vidyalaya( Chakan), New Medium English School ( Chakan), St. Vincent's High School (SadarBazaar, Pune) Fire Services Internal Road Connectivity Electricity Telecommunications Fire station is available in the vicinity and is operational Plots are divided into small, medium & large sizes and with respect to it the following internal road has been provided. The roads are mostly 60,45,30 &25 M wide which are well connected through out the industrial area. Maharashtra State Electricity Distribution Company Ltd (MSEDCL) provides electricity to major industrial areas. Existing substation -Power sub station having capacity of providing 220 kv has been installed within the industrial area, however additional substation of 400 kv is in construction stage. Power Generating Capacity - The substation has power generating capacity of 110 kv, however two separate line feeders of 22kv is installed in order to make provision to the units. The site is in close proximity to major cities and district with all major telecom providers existing having a good network connectivity. M/s Posco Steel Process M/s JCB Steel Steel Talegaon in the district Pune of Maharashtra Hotels:- The Park Central( Pune), Hotel Taj Blue Diamond ( Pune), Sun N Sand ( Pune), The O Hotel ( Pune). 6
7 Eleventh Pravasi Bhartiya Divas 2013 Events MIDC stall at the 11 th Pravasi Bhartiya Diwas, 2013 at Kochi A delegation from Maharashtra Industrial Development Corporation attended the eleventh PravasiBharatiya Divas convention held in Kochi from 7 to 9 January PravasiBharatiya Divas (PBD) is celebrated on 9th January every year to mark the contribution of Overseas Indian community in the development of India. January 9 was chosen as the day to celebrate this occasion since it was on this day in 1915 that Mahatma Gandhi, the greatest Pravasi, returned to India from South Africa, led India s freedom struggle and changed the lives of Indians forever. PBD conventions are being held every year since These conventions provide a platform to the overseas Indian community to engage with the government and people of the land of their ancestors for mutually beneficial activities. These conventions are also very useful in networking among the overseas Indian community residing in various parts of the world and enable them to share their experiences in various fields. During the event, individuals of exceptional merit are honored with the prestigious Pravasi Bharatiya SammanAward to appreciate their role in India s growth. The event also provides a forum for discussing key issues concerning the Indian Diaspora. The theme of the Convention is Engaging Diaspora: The Indian growth story. The Prime Minister inaugurated this flagship event of the Ministry of Overseas Indian Affairs on January 8 and the President delivered the valedictory address on 9 January. In this year s PBD, there were pre-pbd seminars related to development issues such as skill development, pure sciences, tourism, youth and NRIs in the Gulf and plenary sessions on India s growth: greater opportunities, Overseas Indians: safe environment, Engaging young overseas Indians and Investment opportunities in States. Indian Business Leaders Summit 2013 Events Mr. NarayanRane Hon bleminister of Industries, Maharashtra delivering the inaugural address at the summit (Other Dignitaries L to R) Ms. PurnimaVoria Founder & CEO, National US India Chamber of Commerce, USA; Mr. MahadevNaik Hon bleminister of Industries, Goa; Mr. ChandrakantSalunkhe President, Maharashtra Industrial and Economic Development Association and SME chamber of India; Mr. Naval Bajajm-President, Indo-Canada Chamber of Commerce (Canada); Ms. Susan Fennell Hon ble Mayor, City of Brampton (Canada) and Mr. Frank Scarpitti Hon blemayor, City of Markham (Canada) Maharashtra Industrial and Economic Development Association and SME Chamber of India organised an Annual international event Indian Business Leaders Summit with the theme Global Entrepreneurial Network on the 5 th January, 2013 at the Hotel Sofitel, Mumbai with the support of Government of Maharashtra. The event was graced by the Minister of Industries, Sh. NarayanRane, who also delivered a speech on the macro economic and investment climate of the state of Maharashtra. The topics for discussion in the event included; Global Economic Scenario A road ahead for IndianIndustry India s Capital Market Opportunity for Investment Entrepreneurship or Leadership: Building successful enterprises SEZs&Industrial Parks India Growth Story FDIinRetail -Benefits andimpacts Importance of SMEs for Economic growth of Nation Roleof Indian Government for enhancing trade InclusiveGrowth Role of Indian Industry Effective Financial Management - Building Transparencyinthe Business India s New Manufacturing Policy Opportunities inmanufacturing Sector Developing Made in India Brand into Global Brand Building Creative Organization People, Product andprocesses Public Private Partnerships New Opportunity of BusinessExpansion Technology, Innovation and IPR Importance for Industry Partnership between Global and Local Entrepreneurs Promoting Indian Emerging Enterprises in International Market Delhi-Mumbai Industrial Corridor New arena for investments Strategy and initiative for the promotion of Young Entrepreneurs Ms. ArunimaSen from the EY team speaking in the summit on behalf of the MIDC Eminent speakers representing Government Departments, Regulators, Banks & Financial Institutions, Venture Capital, Private Equity, Credit Rating Agencies, Consultants from Management, Financial, Legal, HR, Marketing Domain, Industry Leaders, Subject Matter Experts and other Professionals shared their thoughts and interact with the participants. A song and dance cultural programme staged during the event The EY team on behalf of the MIDC gave a presentation during the summit on the Investment and Business Opportunities in Maharashtra. 7
8 Feedback Dear Shri Bhushan, I have seen the report DOING BUSINESS IN MAHARASHTRA prepared by Ernst & Young. This is an excellent document. It gives relevant information to entrepreneursfor setting up their business. I compliment you for this outstanding job. I shall offer my comments/views on other features of Newsletter after I have gone through the information. With best regards and Season's Greetings. HarnamSingh IAS (Retd.) Government of Maharashtra Maharashtra Industrial Development Corporation Udyog Sarathi Mahakali Caves Road, Andheri(E), Mumbai Board Numbers: / 54 / 73, Fax: , mahaconnect@midcindia.org, feedback@midcindia.org Knowledge Partner Skyline of Mumbai at Night Disclaimer Maharashtra Industrial Development Corporation ( MIDC ) has engaged Ernst & Young Pvt. Ltd. ("Ernst & Young") to prepare this document and the same has been prepared by Ernst & Young in consultation with MIDC. This document is for information purposes only. While due care has been taken during the compilation of this document to ensure that the information is accurate to the best of Ernst & Young's knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Ernst & Young does not assume any liability or responsibility to any person for the outcome of decisions taken by such person as a result of any reliance placed on this presentation. Ernst & Young shall not be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by MIDC and the Authors. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of MIDC 8
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