Maharashtra Industrial Development Corporation is the nodal agency for investment promotion, till date has set up close to 289 industrial parks spread over 66273.8 hectares of land
spanning across the state. This has resulted into more than 60,000 industries setting up their production facilities in the state.
Dr. P Anbalagan (IAS) CEO, MIDC
Maharashtra as a state has been an industrial powerhouse in India and therefore is always on the anvil of prospective investors. This can be corroborated by the fact that in terms of Cumulative Inflows of Foreign Direct Investments (FDI) (April` 00 – December` 17), Maharashtra has garnered 30% of the total share and contributes close to 15% of the Indian GDP, on an average.
The key role played by MIDC includes following –
* Aggregates otherwise disparate industrial development efforts within one body that can generate real expertise and track record of delivery
* Increases the pace and agility of the state’s response to investors/developers
* Leverages its presence (16 regional offices spread across 264 industrial complexes) to enlarge the scale of industrial development and investor facilitation
* Provides access to a single window system for land application and allocation to boost the ease of doing business in the state and boost external investment
* Focuses on holistic development of the state in each region through the development of industrial clusters (Ex: Mumbai-Thane for IT/ITeS and logistics, Pune for Auto and Electronics System Design and Manufacturing (ESDM) etc.)
* Improves the investment-readiness of key city projects, developing the propositions to make them more attractive to external investment
* Provides specialized and sustainable infrastructure such as the development of industrial parks (Ex: Food, IT/ITeS parks, Textile, Wine etc.) , designated chemical zones and commissioning and management of CETP’s and CHWTSDF’s for effective treatment of industrial waste
MIDC thus facilitates in the creation of an enablement of environment and infrastructure for accelerated growth of industries in the state. The state government has set up Special Economic Zones (SEZs) which are a delineated duty free enclave with all required infrastructure provided under single administrative umbrella primarily meant for locating industries which manufacture and export goods and service. Furthermore, taking into consideration the long term industrial growth of the state and for building a resilient infrastructure and encouraging private investments in the infrastructure space, MIDC has also undertaken to promote Integrated Industrial Areas (IIA) and Integrated IT Townships. These townships will have higher FSI usage and promote the concept of ‘Walk to Work’, in line with the idea of smart cities.
Going forward MIDC envisages to provide industries with infrastructure facilities which are more sustainable and encompassing factors like livability, Efficient & Economically Vibrant and Socially responsible towards the society. This infrastructure will look at the large gamut of connectivity, clean and green practices, safety & security, health & education, technology enablement, energy efficiency, social entrepreneurship & responsible environment and friendly policy regime.
There has been a concerted effort in focusing on boosting the ‘Ease of Doing businesses and MIDC has launched and implement several initiatives to enable a cohesive environment for industrial growth. One of the best examples would be that MIDC at present has a transparent online land allocation process for allocating land to industrial projects with pre-defined timelines and the progress made thus far can be seen online . The state at present is both power and water surplus, offering best quality power and low prices for industrial use of water. Going forward MIDC has set key objectives to achieve balanced industrial development and facilitate entrepreneurs in setting up industries in the state.
Government of Maharashtra and MIDC offers host of benefits under the following policies:
* Maharashtra first State to roll out separate GST Policy with SGST incentives
* Fintech Policy
* Maharashtra to set up 300 Fintech startups in 3 years
* Fintech Fund of Rs. 250 Crores and Sandbox Regulatory Framework in Fintech.
Logistics Park Policy
* Maharashtra to develop 25 Integrated Multi-Modal Logistic Parks (ILP) and 100 Logistic Parks (LP) with additional FSI and Higher Ground Coverage.
* Integrated Logistic Park (ILP): Minimum area: 5 acres, Access road: 15 meters minimum, 70% of area to be consumed for Logistic services, 30% can be consumed for common facilities & support services, Defined mandatory infrastructure & common facilities.
* Logistics Park/Building (LP): Minimum area: 20,000 sq. ft., 80% of area to be consumed for Logistic services, 20% can be consumed for common facilities & support services.
* Power consumed in logistic parks (except for business and commercial facilities) to be made available at industrial rates.
* Up to 200% of additional FSI admissible over base FSI
* Maharashtra to set up Start-up Incubators across 12 districts
* Youth Entrepreneurship Fund and Venture Capital Fund to be setup.
Integrated Industrial Area
* Maharashtra amended IIA policy to provide affordable land for industrial use.
* Revised minimum industrial use norm to 80% from earlier 60%.
* A concession to the extent of 50% of stamp duty, shall be granted, for purchase land.
* If a land is free from all encumbrances and to maintain contiguity, such land can be transferred to MIDC as per the prevailing policy of Revenue and Forest Department.
* The Special Economic Zones (SEZs) that stand withdrawn or de-notified on after formal approval shall be eligible to be developed as IIA. De-notified SEZ converted to IIA should utilize land minimum 80% for industrial development and maximum 20% for support activities.
Electric Vehicle Policy:
* 2 Pioneer units to be incentivized for manufacturing EV, EV components and batteries.
* Promotion of EV Charging Infrastructure: Commercial public EV charging stations for 2 wheelers, 3 wheelers, cars and buses to get 25% capital subsidy on equipment/machinery [limited up to Rs. 10 lacs (USD 15,000) per station] for first 250 commercial public EV stations. Rate of electricity for charging will be as applicable for the premises.
* Incentive to EV Buyer: Pilot testing of EV in public transport in five cities of Mumbai, Pune, Aurangabad, Thane, Nagpur.
* First 1,000 EV private/public passenger bus buyer to get 10% subsidy [maximum limit of Rs. 20 lacs (USD 30,000)] for passenger buses per vehicle. First 1,00,000 EV (2 wheeler – 70,000; 3 wheeler – 20,000 and 4 wheeler – 10,000 all categories combined) private transporter and individual buyer to get 15% subsidy [maximum limit of Rs. 5,000 (USD 75) for 2 wheeler, Rs. 12,000 (USD 175) for 3 wheeler, and Rs 1 lac (USD 1500) for 4 wheeler] per vehicle.
* Maharashtra to set up Textile Development Fund and Promote Green Energy.
* Double farmer’s income by 2023.
* Capital Subsidy
Flatted Gala Policy:
* Maharashtra to provide built spaces at affordable costs, especially to MSMEs.
* Out of the total built up space, minimum 80% shall be used for manufacturing units. Maximum 20% area shall provide for infrastructure & support services.
* Up to 200% of additional FSI admissible over base FSI
* Mega / Ultra Mega Garment units in Industrial Parks
Aerospace & Defense Policy
* 5 Anchor units to be set up as Defense clusters
* Special fiscal assistance to Mega, MSME units.
* Maharashtra to support indigenization and encourage setting up of defence products.
* Defence and Aerospace manufacturing Industrial Clusters
* Earmarking Land for Defense Parks
* Promotion of Common Facilities
Cloud Computing Policy:
* All the Departments to shift to cloud infrastructure services instead of using own datacenters.
* Industrial Policy 2013 extended by 6 months.
* New policy to account for Industry 4.0 & smart manufacturing to be announced soon.
* Additional benefits under package scheme of incentives – 1 stage ahead benefits of PSI
* Special Capital Incentives – 30% to 35% up to Rs. 5 lacs
* Cluster Development – 90% Grant in aid of project
* Coir industries incubation, research and development Center – Budgetary provision of Rs. 10 Crores
* Setting up Exhibition-cum Sales center will be established by the State government at least at 5 tourist locations
Government of Maharashtra was a host state to Central Governments event of Make in India Week in 2016. During this MIDC has signed close to 338 MoUs expecting an Investment of about 3.6 Lac crore. Recently the State Government of Maharashtra and MIDC organized the Magnetic Maharashtra Convergence 2018 summit, during which MIDC signed close to 2339 MoUs expecting an Investment of about 1.64 Lac crore.
In addition industries department has signed 98 mega project MoUs, expecting an investment of Rs.4.22 lac crore.
IT/ITeS Investments in Maharashtra
Maharashtra is the financial and trade capital of the country and contributes around 15% of the country’s GDP. Maharashtra as a progressive state has also been attracting lion’s share of FDI inflows into the country for the last few decades. These achievements could be vastly attributed to the dynamic, visionary and pioneering role of Maharashtra Industrial Development Corporation (MIDC). Founded in 1962, MIDC through continuous industrialization has helped the state maintain its amazing growth trajectory. In a span of five decades, MIDC has become the premier industrial infrastructure development agency, a powerful engine of progress with a trailblazing record and, above all, the pride of Maharashtra.
MIDC has built specialized IT parks across the states to cater to the growing needs of IT giants in the state. The aim of these software parks is to utilize the abundant and varied Information Technology expertise available throughout the state and to provide all inclusive growth to the IT/ITeS sector. MIDC has developed 27 IT centers spread across Pune, Nagpur, Aurangabad, Kolhapur, Nashik, Satara, Sangli, Ahmednagar among other areas. Some of the state’s largest IT parks are near Mumbai, some of these prominent parks are Millennium Business Park (MBP) at Mahape, Navi Mumbai, Airoli Knowledge Park in Airoli and Ambarnath IT Park near Thane. Besides, Hinjewadi IT Park in Pune is one of the largest parks in the country. Collectively, these IT parks house companies like Infosys, Cognizant, TCS, Wipro, KPIT, Hexaware, Zensar, Veritas among many others. Additionally, there are 387 private IT parks in the State.
Maharashtra understands the importance of technology and has been at the forefront of embracing technology and this is visible through its policies. In 1998, Maharashtra was one of the first states in the country to release an IT policy. Subsequent revisions were made to the policy in 2003 and 2009 and most recent revision was released in 2015. Through these IT/ITeS policies, the employment in IT has grown from 5,09,428 (2003-‘08) to 17,06,831 (2003-‘18), i.e. tripled in a span of 10 years.
Similarly, cumulative IT/ITeS exports grew from over 90,081 crores (2003-‘08) to 5,19,089crores (2003-’17), showing a record growth of over 5 times. Yearly, Maharashtra’s share is around 20% of the total IT exports of India, making it the second best state in the country for IT/ITeS sector, outperformed only by Karnataka.
Maharashtra Industrial Development Corporation (MIDC) provides various incentives to entrepreneurs for setting up IT/ITeS parks in the state. Some of these perks include: additional FSI, stamp duty exemption, reduced property tax, reduced tariff or industrial electricity tariff for common facilities like lifts, central air-conditioning etc. Besides these, additional incentives are applicable for data centres, companies investing in animation and gaming sector and BPO services in semi-urban and rural areas.
Maharashtra has released a FinTech policy for the state in 2018, spearheading and envisioning the future. This shows the commitment of the state in innovating and creating atmosphere for the changing technology needs of the 21st century. Maharashtra continues to invest in future and is one of the best states in the country for IT/ITeS sector.