Maha CM downplays Gujarat’s projection as investment destination

Chavan asserts Maharashtra has attracted 33% FDI and retains pole position, harps on new industrial policy

Maharashtra Chief Minister Prithviraj Chavan on Friday down played Gujarat’s projection as the most attractive state for investments. Instead, he said Maharashtra, which has attracted 33% foreign direct investment (FDI) till date since the opening of economy in 1991, continues to be the most favoured investment destination.

In his address at a seminar, Chavan announced that the state government has taken a slew of decisions such as a new industrial policy focusing on promotion of micro, small and medium industries, fast-tracking of various clearances through e-governance, reduction in interface between the government employees and investors and above all the abolition of contentious Octroi duty by replacing it through local body tax across the state. “These measures are aimed at retaining Maharashtra’s pre-eminence. The state is richest one, its total income is twice of Gujarat and the per capita income is next to Harayana. Competition is welcome. I am happy that Gujarat is catching up,” he said.



The chief minister said the recently announced new industrial policy would give further impetus to attract investments especially in the less developed areas of the state. State has attracted an investment of Rs 2.80 lakh crore in 350 projects under its mega project policy. The New Industrial Policy envisages conversion of special economic zones into integrated industrial areas wherein 60% of the land to be used for industrial purpose, 30% for residential and 10% for commercial purpose. Besides, state’s textile policy, which has been catalyst, is expected to attract investments in cotton growing areas.  He mentioned that the government would encourage walk to work concept in a big way.

Chavan said that MSMEs would be provided special incentives in the form of VAT exemption, waiver in electricity duty, cut in power tariff. The chief minister however, admitted that mismatch between power demand and supply, high tariff for industrial consumers, drought conditions for the second consecutive year due to shortage of rainfall and non completion of a large number of irrigation projects. He informed that the government was working to ease out power tariff burden but added that industrial consumers need to pay higher rate for 24x7 power supply.