Department of Industries Maharashtra Industry, Trade & Investment Facilitation Cell (MAITRI) 22 nd August, 2014 Copyright 2014 Accenture All rights reserved. 1
Agenda 1 Project Introduction 2 Service Category Mapping 3 Benefits to Investors & Government 4 Critical Success Factors 5 Current Status 6 Impact Assessment 7 Way Forward
Project Introduction MAITRI will cater to industrial projects with an investment of Rs. 10 crore and above This facility allows assistance and guidance for clearances by Government of Maharashtra related to various Departments Industries, MIDC, Revenue, Urban Development, Irrigation, Environment, Labour, Energy, PWD and Sales Tax MAITRI shall cover entire Maharashtra, providing support for 31 Critical services across 15 State Depts.
Project Introduction (contd.)
Project Introduction (contd.) Maharashtra Industry, Trade and Investment Facilitation Cell (MAITRI) is administered by the Industries Department & serves as a single point of contact for Government to Business (G2B) services offered across the business cycle for setting up a new industrial unit in the state. It will provide all the critical investment-related information MAITRI aims to promote investments, facilitate business partnerships & trade in Maharashtra & would function as a clearing house for all investment related information and assist investors Its implementation enables domestic as well as international (cross-border) traders to submit regulatory documents at a single location and/or single entity The help desk for MAITRI has been set up at MIDC s Ballard Estate office, Mumbai with representatives to assist the investors MAITRI will cater to industrial projects with an investment of Rs. 10 crore and above It will provide 31 critical investment related clearances from 15 departments that are needed to set up an industry in Maharashtra
Project Introduction (contd.) 1 Stage I: Determination of Project Type: - Large projects with investment from Rs. 10 to 100 Crores - Mega project with investment above 100 Crores 2 Stage II: Availability of Land: - Entrepreneur needs to acquire land or either possesses it - Location of land within MIDC or outside MIDC 3 Stage III: Environment Clearances: - For an industry to establish requires Consent to Establish from MPCB - For establishments with Built-Up Area above 20,000 sq.m need clearance from Environment Dept. 4 Stage IV: Plant Step Up: - Investor needs to apply for 8 major approvals before setting up plant like Building Plan Approval, Provisional Fire NOC, Water Connection Approval, Building Completion Certificate, etc. 5 Stage V: Pre Commencement Approvals: - Investor needs to apply for about 9 major approvals before setting up plant like VAT / CST Registration, Consent to Operate, Registration for employing contract labour, etc.
Project Introduction (contd.) Guidance, Support & Handholding Benefits to Investors & Government 1 2 3 Process Optimization Enhanced Monitoring Mechanism Increased Transparency 31 clearances from 15 departments under a single umbrella Critical information pertaining to departmental clearances readily available to Entrepreneurs Direct supervision of Principal Secretary, Industry and the Nodal Officers from respective departments Intervention in matters of expediting approvals across Departments Direct communication between departments and investors for additional documents Provision to escalate issues to the Nodal Officer Investors can raise grievance to the competent authority of concerned departments Regular updates to investors on updates and changes in rules, regulations, and policies
Service Category Mapping SN. Services Offered Competent Authority Stage 1. Approval of Mega Project Industries Dept. Pre Implementation NA 2. BTAL Permission DoI Pre Implementation 90 3. Building Plan Approval MIDC Pre Implementation 15 4. Building Plan Approval UDD Pre Implementation 60 5. Consent to Establish MPCB Pre Implementation 45 6. CST & VAT Registration Sales Tax Dept. Pre Implementation 1 7. Electrical Connection NOC MIDC Pre Implementation 7 8. EM-I Registration DoI Pre Implementation 1 9. Environment Clearance for BUA>20000 Sq. M. Environment Dept. Pre Implementation 105 10. Factory Layout Plan Approval DISH Pre Implementation 11. Land Allotment MIDC Pre Implementation 21 12. NA Permission for Agriculture Land Revenue (Collectorate) Pre Implementation 90 13. Permission to Mortgage MIDC Pre Implementation 15 14. Provisional Fire Approval MIDC Pre Implementation 15 15. Provisional Fire Approval Maharashtra Fire Services Pre Implementation 30 Citizen Charter (Days) 60 (Chemical factory), 45 (other factory)
Service Category Mapping (contd.) SN. Services Offered Competent Authority Stage 16. Stamp Duty Exemption DoI Pre Implementation 3 17. Water Connection MIDC Pre Implementation 7 18. Water Reservation Consent Water Resources (Irrigation) Pre Implementation 90 19. Zone change for Agri. Land under BTAL UDD Pre Implementation NA 20. Boiler Permission Directorate of Boilers Post implementation 2-3 21. Building Completion Certificate MIDC Post implementation 21 22. Consent to Operate MPCB Post implementation 45 23. Drainage Connection MIDC Post implementation 15 24. Final Fire Approval MIDC Post implementation 15 25. Final Fire Approval Maharashtra Fire Services Post implementation 30 26. Line Changing NOC PWD Post implementation 27. Power Connection MSEDCL Post implementation 90-120 28. EM-II Registration DoI Operational 1 29. Permission for Contract Labour Labour Dept. Operational 15 30. Professional Tax Registration Sales Tax Dept. Operational 15 31. Registration under Factories Act 1948 DISH Operational 120 Citizen Charter (Days) No information available
Benefits to Government & Investors The envisaged benefits of MAITRI implementation are as follows: Government Removal of Redundancy information collection through Single Channel Coordination through MAITRI shall aid reducing workload on Depts. Ease of Business shall attract increase in investment & State s industrial growth Better adherence to Govt. rules, regulatory simplification and better monitoring Investors Single Point of Contact Process Transparency & Ease of Access Interactivity - Check Updates & Follow up & Raise grievances Dedicated Service through MAITRI Team Application Tracking, Monitoring and Evaluation mechanism Inter-Departmental Coordination Periodic Reviews through MAITRI
Critical Success Factors Business Process Reengineering Periodic revamp of processes in terms of application forms, documents required, streamlined processing Administrative Will Proactively initiate aid & support working through MAITRI by all stakeholder Depts. Administrative Will Information availability Single point of information availability Capacity Building Intra-Departmental Training to enhance service delivery Information Availability Business Process Reengineering Information Exchange Ensuring robust information exchange between stakeholders Coordination & Dialogue Regular dialogue with investors to understand & implement improvements
Critical Success Factors (contd.) Single Window Clearance (SWC) Act (under discussion) Legislation to legally bind all 15 Depts. with MAITRI & strengthen system through empowerment Technical skills Promoting Capacity Building Intra-departmental capacity building would bring greater work efficiency Payment System Awareness Monitoring mechanism Setting monitoring mechanism under Nodal officer of each Dept. Enable application tracking & compliance with Citizen Charter Technical support Challenges Legal Backing Common Application Form & Single Point of Payment One time capture of overlapping data Establishing common payment collection facility at MAITRI Mandate submission and acceptance through MAITRI It shall facilitate single point of application tracking mechanism Effective coordination Accountability Coverage Industry Coverage Service extension to SME s with > Rs. 10 Crores investment
Current Status 700 600 Number of Investors Year-Wise 610 Average of 415 Large Project Investors invest in Maharashtra per Annum 500 400 300 200 211 442 319 484 425 402 386 304 Implemented Under Implementation Under Construction Unmonitored 100 0 81 105 104 18 7 92 9 10 23 11 2009 2010 2011 17 5 1 2012 68 9 5 2013 Total
Current Status (contd.) 60000 50000 40000 30000 20000 10000 0 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 Year-Wise Investments (Rs. in Crores) 52117.09 34619.7 Implemented 32477.9 31839.42 Under Implementation 22187.8 Under Construction Unmonitored Total 2009 2010 2011 2012 2013 Year-Wise Employment Generated 165569 107713 110428 Implemented 82831 Under Implementation Under Construction 48160 Unmonitored Total 2009 2010 2011 2012 2013 The State attracts an average of Rs. 34,648 Crores of Large Project Investments per year, with Rs. 1,73,241 Crores of investment made in last five years Resulting in an average of 1,02,940 Jobs per year, with 5,14,701 Jobs generated in last five years through Large Projects alone
Current Status (contd.) MAITRI has been operational since March 2014 Critical information regarding investment policies, contact details of key officials up to the district level, citizen charter and circulars are available at one place Simplified application process for investors to make it user-friendly, cutting the time from application to approval A Government Resolution has been issued to coordinate activities between various departments, including appointment of Nodal Officers for speedy clearance Handholding support to the investor fraternity across all districts in the State 1 2 3 4 Hub of Consolidated information Simplified Application Process Coordination through Single Channel Guidance & Handholding for Investors
Current Status (contd.) BTAL Permission 6% Mega Project Approval 5% Fire NOC 5% Environment Clearance 5% Consent from MPCB 5% State Excise Dept. 6% Local Clearances 6% Mining License 11% Issues 0% Land related 17% Issues (Large Projects) PSI related 17% Buliding Plan Approval 17% Expected Impact Issues resolved by MAITRI will revitalize Investments worth Rs. 10,499 Crores, ensuring 9398 Employment Opportunities in Maharashtra
Primary function of MAITRI shall be being information & facilitation hub for the investors Way Forward Service Continuance: Continue to be single house of information, guidance, support & aid for investors Service Continuance Catalyse Participation: Catalyzing more active & in-depth participation from various Govt. Departments Information Updates: Mechanism to keep investors abreast of the information updates for all Govt. Depts. Common Submission: Establish concepts of Common Application Form & Single point of Payment across all 15 Departments Expansion in Scope of Work: Catering to both State & Central based approvals & extending service provision for investors under Rs. 10 crores Scope of Expansion Common Submission Information Updates Catalyze Participation
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Current Status (contd.) Issues Currently under Process by MAITRI SN. Major Investors Issue 1. Indo Rama Petrochemicals (India) Ltd. 2. Rawmin Mining & Industries Pvt. Ltd. 3. Reliance Cement Co. Pvt. Ltd. Investment (Rs. in Crores) Expected Employment Approval of Mega Project status 2726 1700 Incentives under PSI 2013 & Sanction of Mining License 4. Bharat Wire Ropes Environment Clearance from Environment Dept. 5. Thermax Babcock & Wilcox Energy Solutions Pvt. Ltd. 2500 1100 Sanction of Mining License 2000 160 865 1000 Eligibility Certificate from DoI 687 600 6. Kirloskar Oil Engines Building Plan Approval 611 2000 7. Ujwal Electric Motors Pvt. Ltd. Provisional Fire NOC & Consent to Establish from MPCB 260 200 8. Sudal Industries Building Plan Approval from MIDC 213 340
Current Status (contd.) Issues Currently under Process by MAITRI SN. Major Investors Issue 9. Deccan Sugar Approval from State Excise Dept. & land related approval from DoI 10. Ultratech Cement Ltd. BTAL Permission & Building Plan Approval from UDD Investment (Rs. in Crores) Expected Employment 208 300 200 80 11. Melting Centre Possession of Land from MIDC 89 630 12. R. M. Chemicals (Phosphate) Upgrade of existing PSI from 2007 to 2013 13. Rai Saheb Rekhachand Mohata SPG. & Wvg. Mills Ltd. Repair & Maintenance of Road by Hon. Divisional Commissioner, Nagpur Region 65 453 45 550 14. Laurel Land Allotment from MIDC 30 285