Maharashtra govt promises red carpet for industries

Will focus on manufacturing, target is to attract investments of Rs 5 lakh crore

The new government in Maharashtra plans to roll out the proverbial red carpet and remove red-tapism to make the state a favoured destination for investors, claimed industries minister Subhash Desai.

The senior Shiv Sena leader told Business Standard, “The target is to attract investment of Rs 5 lakh crore and creation of two million jobs in near future.”

In a bid to regain the state’s pre-eminence in industrial development and attract investment, the Bharatiya Janata Party-Shiv Sena government has taken a slew of decisions. It has decided to reduce the number of approvals and licences from the current 70 to 25, along with the development of sector-specific zones and clusters, release of new information technology (IT) and IT-enabled services (ITeS) policy by next the financial year and achieve 13 per cent industrial growth.

Industries minister Desai said there was no plan to immediately change or disband the industrial policy brought out by the preceding Congress-NCP government in January previous year.

“However, every effort will be made to improve the existing industrial policy. Our thrust will be on the development of sector-specific specialised zones. The idea is to bring together sector-specific units such as food processing, textile, wine, chemicals, and IT in one zone or cluster,” he added.

Desai said the higher number of approvals and licences take a longer time for the actual implementation of projects. “You will be able to find the changes in next six months, as the government will cut the number of these clearances and licences to 25 from 70. It will be put on the fast track. This apart, the focus will not be merely on entering into memorandum of understanding but its speedy conversion into project development,” he said.

He said that tyre manufacturing company CEAT got a letter of intent for 50 acres of land on the same day it submitted its proposal to Maharashtra Industrial Development Corporation (MIDC). In just a month, the company has laid the foundation for its project in the Butibori industrial estate near Nagpur.

However, Desai said higher power tariff for industries in the state compared to other states was a big challenge for his government. “It is my sincere attempt to reduce it. However, some sections of the industry tell me that though power is cheap in other states, the quality and reliability they get in Maharashtra is worth the price they pay. Port development and manufacturing are other challenges for the state.

“Under the Delhi-Mumbai Industrial Corridor project, manufacturing will be given a much-needed impetus, especially during the development of the Dighi Port in the Raigad district and Shendre-Bidkin industrial zone in the Aurangabad district,” he said.

Make in India or Make in Maharashtra are themes. Promotion of the manufacturing sector and increase of its share in the state;s industrial growth is true aim of Make in Maharashtra. If one auto company sets up its shop in the state, it will provide opportunities for 300 to 400 suppliers and auto component vendors to start their business,” Desai said, adding that it will be his government’s objective to decentralise and disperse the industrial development and not restrict it to Mumbai, Pune, Nashik and Aurangabad.

Desai also said no cultivable land will be acquired for setting upindustries. “Preference will be given only to barren and waste lands for industrial development across the state.”

The state government and its undertaking MIDCare prepared to give  handsome compensation to land owners and farmers. “However, we will appeal to the Centre to exempt MIDC from certain regulations relating to the approval of 70 to 80 per cent land owners required for land acquisition,” he said.