Mumbai, Sep 4: Maharashtra has been the key crowd pulling state in terms of investments in manufacturing and production sector, while most of the IT investments have been made in Tamil Nadu, Telangana and Karnataka.
Maharashtra’s earlier policies have helped the state attract investments of Rs.3.24 trillion and create 748,000 direct jobs and 465 private and 37 public IT parks. The new policy offers 200% additional floor space index (FSI) over the base FSI for IT parks. The FSI indicates permissible construction on any plot. By offering a higher FSI, the state government hopes rents in the IT parks will drop.
Anand Rayate, Joint CEO(IT) MIDC and his team, at a meeting organized by TAIT association, spoke about the advantages of manufacturing in Maharashtra. Excerpts.
Supportive Governable policies:
Maharashtra’s new government IT policies have been found supportive for manufacturers. Though LBT and Octroi are applicable for traders in the state, the local manufacturing has been saved of other taxes. The state government’s new initiatives to promote IT parks in the state have been helping the small and medium business owners. Pune is an IT hub like Mumbai. Now Aurangabad, Nasik and Nagpur are also attracting people from IT sector.
Mumbai with a multi-point connectivity has already wooed investments across the sectors. Besides, the government is keen on increasing connectivity in other regions also. The metro-train connectivity in Nagpur and Pune has already got the state government’s clearance and is likely to get Centre’s clearance soon. To boost regional development and attract investors, the state government is planning to develop regional air connectivity at district and regional headquarters and in smaller centres across Maharashtra.
Labor law and business friendly climate
Labor laws and industrial polices are the biggest factors in many states. The Maharashtra state claims it has supportive labor laws and industrial policies that ease manufacturing processes. The state also has a considerable number of skilled and non-skilled staff which will help resolve the non-availability of workforce issues.
MIDC (Maharashtra Industrial development corporation) has been the first nodal agency in the country. The agency has helped the state achieve significant achievements like attracting 30% of investment in the country, contributing 20% of software export in the country, ensuring dedicated feeders for electricity and water supply in India. The single window clearance by the agency has eased the business of many trade owners in the state. The ‘Magnetic Maharashtra’, a recent policy report by the government has won accolades as it covers all the aspects of investing in the state.
Make-in-Maharashtra, a program on lines of ‘Make in India’, aims to create business-friendly atmosphere in Maharashtra by increasing the ease of doing business as much as possible. The main target is to increase the Foreign Direct Investment and Local Investment in the region to further increase the industrialization in Maharashtra. The Maharashtra government is eyeing Rs 5 lakh crore industrial investment across the state before 2019 period as part of this initiative that is likely to generate around 2 million jobs.