Maharashtra The Preferred Investment Destination Knowledge Partner Knowledge Partner
PM s vision: Make India a Manufacturing Hub Put India on a world map as a Manufacturing hub Promoting growth of manufacturing industry Facilitating foreign investments for the industry Development of industries & industrial infrastructure Opening up Foreign Direct Investment in key sectors
Invest in India MAKE IN INDIA: Investor friendly policies and incentive based schemes SKILLED MANPOWER: 500 million employable workforce by 2020 DIVERSE ECONOMY: Wide range of opportunities for investors DIGITAL INDIA: Effective governance through integrated departments FINANCIAL SYSTEM: Robust, diversified and well regulated DOMESTIC ECONOMY: India's wealthiest consumers to increase by 40mn (in 10yrs) Source: Standard Chartered' s Super-Cycle Report
Honorable Chief Minister s Vision Maharashtra to be number one in Industrialization Create a conducive business environment Cluster development through MSMEs Bring in investment worth USD 160 Billion Develop industrial clusters as per the raw material Nagpur, Chandrapur, Akola, Amravati, Aurangabad, Latur, Jalgaon, Nashik, Solapur, Sangli : new hubs for industries
Advantage Maharashtra Specialized Institutes 30% of the total FDI inflow in India Large number of diverse industries Abundant natural resources Progressive Government Single Window Clearance Financial and Trade capital of India Dedicated investor facilitation cell Well developed infrastructure Strategically located
State Economy Maharashtra contributes to ~15% of India GDP on an average Economic growth (%) State contribution (USD billion; %) 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 8.5% 9.4% 7.3% 7.2% 6.0% 7.9% 7.1% 6.5% 5.5% 5.4% FY13 FY14 FY15 FY16 FY17 (Est) 15% 15% 15% 14% 15% 2,123 1,930 1,744 1,544 1,356 197 224 255 278 310 FY12 FY13 FY14 FY15 FY16 Maharashtra GDP Growth (%) India GDP Growth (%) Maharashtra GSDP India GDP Source: MOSPI Note: GDP at Current Prices
8,249 6,097 3,420 9,553 8,716 6,361 9,511 21,383 17,536 25,834 22,424 24,299 35,121 30,931 40,001 35,844 FDI Inflow Currently accounts for 49% of total FDI inflow Maharashtra & India (USD million) Maharashtra & Other States (%) (2001-2016) MAHARASHTRA Delhi Tamil Nadu 24% 31% Karnataka Gujrat 1% 4% Andhra Pradesh 5% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY 17 West Bengal Others 7% 7% 21% Maharashtra India Source: Ministry of Commerce and Industry; Press articles
Industrial Ecosystem
Maharashtra: Industrial Clusters IT and ITeS Gems and Jewellery Logistics Pharma / Chemical Mumbai - Thane Ahmednagar - Nashik Food Processing Engineering Winery Auto, Defence IT/ITeS and ESDM Engineering Chemical FMCG Pune Food Processing Logistics IT Textile Nagpur - Amravati Textile Food Processing Solapur Engineering Auto Pharma Chemical Aurangabad
Maharashtra: Infrastructure (1/2) ELECTRICITY Developed power supply grid; Installed capacity of 38,355.48 Mw Total generation: 88.14 bn Kwh; Total consumption: 100 bn kwh INDUSTRIES Diverse industrial base; 9 SEZs and 136 PPP projects 18,500 projects worth USD 165 bn approved from 1991 2013 PORTS 2 Major ports, 53 Minor ports 21.76% of the total cargo transport in India (JnPT &MbPT ports)
Maharashtra: Infrastructure (2/2) RAILWAYS 9.3% of total railway network in the country 2 Major Railway zones AIRPORTS 3 International, 7 Domestic, 20 Airstrips Mumbai airport: One of the busiest airports in India ROADS 99.2% of the villages are connected 18 national highways: Connects the 6 neighbor states & other regions
Maharashtra: Abundant skilled manpower More than 6,000 institutes that enrolls over 1.6 mn students per annum Streams No. of Institutes Enrolments per year Research, Healthcare Research, Drug, Atomic Studies, Ports, Design Pharmaceuticals Electronics Media, Textile Agriculture Film, Defence, Research, Chemical Citrus, Cotton, Veterinary General Education (Art, Science, Commerce) 3,209 10.56 lac Engineering 1,064 3.21 lac Architecture 91 5.3 thousand MBA/MMS and PGDM Hotel Management and Catering Technology 416 46.5 thousand 13 668 Pharmacy 525 30 thousand 20 State University 21 Deemed University Master in Computer Application Industrial Training Institutes 115 9.6 thousand 846 1.26 lacs Medical Education 513 27 thousand
Fiscal Support Maharashtra: Policy Support (1/3) Progressive policies aimed at improving the businesses environment State Tax Abatement Stamp Duty Exemption Electricity Duty Exemption Plus, a host of other benefits Skill Development Single Window Clearance (SWC) Investor Facilitation Investor After Care Cell Non-Fiscal Support Special Incentives Mega and Ultra Mega project can qualify for fiscal incentives up to 100% of the fixed capital investment 10% additional incentive is provided by the state if the project creates double the employment required for the eligibility
Maharashtra: Policy Support (2/3) Policies for Ultra Mega and Mega Projects Qualification Criteria Incentive Basket Project Classification Area Classification Fixed Capital Investment Direct Employment Taluka /Area Classification (% of Fix Capital Investment) Ultra Mega Industrial Unit Entire State A & B USD 240 Million (INR 1500 cr) USD 120 Million (INR 750 cr ) 3,000 1,500 A & B 50 C 75 D, D+ & NID 100 Mega Industrial Unit C D & D+ USD 80 Million (INR 500 cr ) USD 40 Million (INR 250 cr ) 1,000 500 Investment (In USD Million) Max. Period (in Yrs.) Up To 80 (INR 500cr) 7 Stamp Duty Exemption : 50% in A & B areas; 100% in other areas Electricity Duty Exemption : 10 yrs. in A & B areas; 15 yrs in others IPS per Year : 50% Gross VAT + 100% CST 81 to 120 (INR 750cr) 9 121 to 161 (INR 1000cr) 12 Above 161 20
Maharashtra: Policy Support (3/3) Policies for LSI & MSME Projects Taluka / Area Classification Incentive Basket LSI Projects Fixed Capital Investment (%) Max Period (in years) A - 7 B - 7 C 30 7 D 40 7 D+ 50 7 NID 70 7 Maximum disbursement of the incentives every year will be proportionate to the monetary ceiling and the eligibility period Incentive Basket MSME Projects Taluka / Area Classification Fixed Capital Investment (%) Max Period (in years) A - 7 B 20 7 C 40 7 D 70 10 D+ 80 10 NID 90 10 For Existing/New units qualifying as Expansion / diversification are eligible for 75% subsidy on fixed capital investment
Ease of Doing Business: Progress (1/2) ONLINE SINGLE WINDOW SYSTEM Establishment of the MAITRI Online Single Window Portal, with the provision for single application; payment; tracking and monitoring for about 44 industry related approvals across 16 departments. Mobile Application and Investor helpline for support and facilitation to investors TAX REFORMS Single ID and Common Application Form for VAT, CST, Professional Tax, Entry Tax and Luxury Tax with all registration certificates issued within 1 working day. Payment of Property Tax through a mobile app Provision for e-payment of state taxes such as VAT, CST, Professional Tax, Entry Tax and Luxury Tax along with the provision for filing electronic tax returns LABOUR REFORMS Self-certification scheme with Single Integrated Return Form for 16 Labor Laws in the State Computerized Risk based Inspection of industries through a software based tool CONSTRUCTION PERMITS Scrutiny of plans through an AutoCAD based software for granting building plan approval. Online Single Window System for obtaining various NoCs required for Construction Permit
Ease of Doing Business: Progress (2/2) PROPERTY REGISTRATION Digitization and public availability of land records at the sub-registrar's office Computerized property bills in most municipal bodies E-payment of fees: GBAR and e-sbtr ELECTRICITY REFORMS Procedures for obtaining new electricity connection reduced from 7 to 3 Time reduced from 67 to 15 days LAND REFORMS Implementation of a GIS system providing information about land earmarked for industrial use, along with details of available infrastructure Increase in FSI from 0.2 to 1 for industry to be set up Additional FSI of up to 200% for IT SEZ ENVIRONMENT REFORMS Computerized risk based inspection of industries & submission of inspection reports within 24 Hrs Shortened time limit for processing of consent applications by the Pollution control Boards- from 120 days to 60 days.
MIDC: Nodal agency for all investors DMIC SUPA Japanese Investment Zone Industrial Estates 264 Industrial complexes ~ 84,000 hectares of land Key Activities Special planning authority 13 Chemical Zones 25 CETPs 3 STPs 4 CHWTSDF Largest water supply network in Asia Projects CFCs Water Specialized Infra Electricity Wine Parks Silver Parks Floriculture Park Food Parks Textile parks 32 IT Parks, 9 SEZs Dedicated feeders for industries Strong network of local authorities Link between Govt. and Industry Acquisition and disposal of land Providing support Infrastructure One-stop for Investors Relations
Key Projects
Key Infrastructure Projects in Maharashtra Shendra Bidkin Mega Industrial Park Dighi Port Industrial Area Navi Mumbai Airport Metro Rail Projects MADC - MIHAN Mumbai Trans Harbor International Financial Services Centre
Aurangabad Industrial City (AURIC) Part of DMIC initiative A smart industrial city developed along the dedicated Freight Corridor from Delhi to Mumbai One stop Shop: Under the umbrella of AURIC. Govt. incentives through single window clearances A world class industrial city with well-connected transport system. Railway siding facility. 10 mins from international airport, 40 km from JNPT s Jalna dry port. AURIC assures 24*7 reliable and cost effective power supply ICT enable smart city AITL a special planning authority
Integrated Industrial Areas (IIA s) To encourage private investment to develop industrial estates, Government of Maharashtra has launched a new policy initiative. Commonly called integrated Industrial Area(IIA) policy. The policy is framed to encourage walk to work culture. Any investor owning 40 hectares or more of land can develop an IIA under this policy Encouraging the concept of Walk to Work Minimum area requirement: 40 Hectare Minimum area under Industrial Use Maximum area under Non Industrial Use 60% 40% Industrial activities Commercial activities Logistics and warehousing Residential activities Research & Development Educational campuses & Amenities Special Planning authority: MIDC No separate NA (non agriculture) permission required
Integrated IT townships (IITT s) To encourage private investment to develop resilient and state of the art smart cities, the Government of Maharashtra has made available lands to private investors for the development of IT parks. Commonly called Integrated IT townships (IITT s) the objective is to supplement the concept of walk to work culture To be developed as Smart Cities Minimum area: 10 Hectare with 15 metre wide access road Minimum area under IT/ITES activities Maximum area for support services 80% 20% Actual IT units IT related services Commercial & Residential Increased FSI of up to 2.5 in corporation areas, 2 in non corporation areas
Key Players
Maharashtra: Key Players (1/2)
Maharashtra: Key Players (2/2)
THANK YOU Maharashtra Industrial Development Corporation Udyog Sarathi, Mahakali caves road, Andheri (E), Mumbai 400 093 Board Number: 91-22-26870027/52/54/73 Fax: 91-22-26871587 Email: ceo@midcindia.org Website: www.midcindia.org Knowledge Partner