Maharashtra The Preferred Investment Destination Knowledge Partner Knowledge Partner
Preface This document has been developed by KPMG India, the Knowledge Partner to Maharashtra Industrial Development Corporation to provide hand holding assistance to investors. The intention is to provide executives a quick overview to the Industrial Ecosystem of the State. The complex decision making process involved in undertaking foreign operations requires an intimate knowledge of a country's as well as state's ever evolving commercial climate. Companies doing business in India, or planning to do so, would be well-advised to obtain current and detailed information from experienced professionals. The information presented in this document has been validated w.e.f. December 2015.
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 (%) 11.3 State contribution (USD billion; %) 14% 14.6% 14% 14.07% 14.1% 9.3 8.6 9.3 4.8 6.3 6.2 8.7 4.5 4.7 1285 1570 1751 1726 1731 180 230 245 243 244 FY10 FY11 FY12 FY13 FY14 Maharashtra's GDP growth (%) India's GDP growth (%) FY10 FY11 FY12 FY13 FY14 India GDP Maharashtra GSDP Source: PIB, CSO Note: GDP at Current Prices
FDI Inflow Accounts for 30% of total FDI inflow Maharashtra & India (USD million) 35,121 Maharashtra & Other States (%) (2000-2014) 25,834 21,383 22,424 24,299 25,526 28 30, $70.4bn Maharashtra Delhi Tamil Nadu 8,249 6,097 9,553 8,716 3,420 4,983 FY10 FY11 FY12 FY13 FY14 FY15* Maharashtra India 1 4 4 6 7 20, $45.8bn Karnataka Gujarat Andhra Pradesh West Bengal Others 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 2.5 mn students per annum Research, Healthcare Research, Drug, Atomic Studies, Ports, Design Pharmaceuticals Electronics Media, Textile Agriculture Film, Defence, Research, Chemical Citrus, Cotton, Veterinary Streams No. of Institutes Enrolment per yr General Education 3300 15,20,000 Engineering 1,074 5,43,000 Architecture 75 10,000 MBA/MMS, PGDM 516 36,000 Hotel Management 23 868 Pharmacy 462 38,000 MCA (Computers) 148 15,000 ITI s 766 1,05,000 20 State University 21 Deemed University Medical Education 293 28,500 Indian Institute of Technology (IIT): Mumbai Indian Institute of Management (IIM): Nagpur
Fiscal Support Maharashtra: Policy Support (1/3) Progressive policies aimed at improving the businesses environment VAT + CST 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 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) PROPERTY REGISTRATION Sub Registrar office is computerized Computerized property bills in most municipal bodies E-payment of fees: GBAR and e-sbtr ELECTRICITY Procedures reduced from 7 to 3 Time from 67 to 15 days LAND REFORMS Increase in FSI from 0.2 to 1.5 for industry set up Additional FSI up to 200% for IT SEZ LABOR REFORMS Introduced self-certification scheme with Single Integrated Return Form for implementation of 16 Labor Laws in the State
Ease of Doing Business: Progress (2/2) CONSTRUCTION PERMITS No of procedures reduced from 27 to 11 No of days reduced from 162 to 50 ENVIRONMENT MPSB: Randomized risk based inspection & submission of inspection reports within 24 Hrs River Regulation Zone policy: Discontinued TAX Common Application form for VAT, Professional tax & CST Property Tax payment: Mobile app Commercial cases: 7 benches High Court judges appointed SINGLE WINDOW MAITRI: Investor facilitation cell Assists investors in obtaining approvals for 31 services across 8 departments
Number of industrial disputes Labor Disputes: A comparison of Indian States Maharashtra is one of the most industry friendly states 63 46 30 15 Tamil Nadu 22 17 19 15 Gujarat 16 19 9 2 Andhra Pradesh 14 25 17 2 Karnataka 11 14 10 5 Rajasthan 2 7 6 1 Maharashtra 2011 2012 2013 Upto May 2014 Source: Ministry of Labor and Employment, GoI
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
Maharashtra: Key projects undertaken (1/3) Delhi Mumbai Industrial Corridor SUPA Japanese Investment Zone Covers 8 districts, 29% of area; 4 major nodes have been identified in the DMIC influence area Multiproduct Industrial park to be set up on the contiguous land of 500 acres at Supa
Maharashtra: Key projects undertaken (2/3) Dighi Port Industrial Area Shendra Bidkin Mega Industrial Park < SHENDRA BIDKIN PARK DIGHI PORT AREA > Shendra - Bidkin belt in Aurangabad and Dighi Port Park in Raigad to be developed as a planned industrial township
Maharashtra: Key projects undertaken (3/3) Navi Mumbai Airport Metro Rail Projects Designed to accommodate the new large aircrafts compatible with ICAO Aerodrome Code 4F Metro projects in Pune and Nagpur, each project cost will be ~ $1.7 Bn
Maharashtra: Upcoming marquee projects Mumbai Trans Harbor International Financial Services Centre MADC - MIHAN NAINA City
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