“Brand Maharashtra” as an investment promotion destination has taken a severe beating due to rising competition from various states, administrative, implementation and regulatory roadblocks.
However, the state can regain its lost glory through multiple instruments, including creation of a Maharashtra Brand Equity Foundation, to align and have more focused and dedicated approach in exploring trade and investment opportunities globally.
A comprehensive presentation by Ernst & Young (E&Y) to state industries minister Narayan Rane says, investment promotion facilitation would have to be done through special branding programme, integration of services across various government agencies for all business-related approvals and creation of a investor aftercare cell, which would be eventually a one-point contact for all investors.
E&Y has also suggested an exhaustive public relations action plan, which includes tracking Maharashtra and competition news, and suggests media-sharing interface. One of the suggestion includes managing by negative publicity.
| NEW STRATEGY DOING BUSINESS WITH MAHARASHTRA |
| * Simplification of procedures and rigorous implementation of single window system |
| * Identify Brand Name for Maharashtra |
| * Improved investor connect through enhanced and user-friendly website |
| * Organisation of national and international missions |
Business Standard had first reported that E&Y was roped in by Maharashtra Industrial Development Corporation (MIDC) as knowledge partner for April 1, 2010 to March 31, 2011.
A senior state government official said, “The Brand Promotion programme, including the establishment of Maharashtra Brand Equity Foundation, will consist of investor relation and facilitation cell, foreign direct investment (FDI) cell, non-resident Marathi cell and policy cell. E&Y has recommended that there needs to be a one-stop service facility for investment information and support to local and foreign direct investors. FDI cell will be responsible for identification of foreign investors and reaching out to them and enhancing international cooperation.”
The official said a non-resident Marathi (NRM) cell would be responsible for development of database of NRM and establishment of communication and networking.
Moreover, the policy cell would have to enhance predictability and consistency in investment-related policies and establish monitoring and review mechanisms for investment policies. The official added the Brand Maharashtra strategy would be implemented in stages.
E&Y has suggested constitution of an authority on the lines of Special Investment Region (SIR) model of Gujarat or Industrial Area Local Authorities (IALA) model of Andhra Pradesh. These models allow to set up a special authority to govern an industrial area independent of other authorities.
These initiatives, according to E&Y, are required as at present there are multiplicity of authorities in approval process, which are more complex and costly for an investor. E&Y has also called for rationalisation of bulk water rates, expediting ongoing and proposed power projects and industrial gas supply project of MIDC and the transfer of lease by MIDC from one owner to other and labour no-objection certificate to be made independent of each other.
More important, E&Y has proposed an Embassy Contact Programme for MIDC for global branding of state, robust relation with embassies and enhanced networking with trade associations.
“MIDC can lay emphasis on countries focusing on the development of sectors, including research and development. Besides, MIDC can focus on countries with the highest amount of FDIs, including the US, the UK, Italy, Germany and Mauritius. MIDC can also look at developed countries with least amount of FDIs in Maharashtra.
