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Department of Industries

Maharashtra Industry, Trade & Investment Facilitation Cell (MAITRI)

22nd August, 2014

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1 Project Introduction

4 Critical Success Factors

5 Current Status

6 Impact Assessment

7

Agenda

Way Forward

Service Category Mapping

Benefits to Investors & Government

Project Introduction

• MAITRI will cater to industrial projects with an investment of Rs. 10 crore and above

• This facility allows assistance and guidance for clearances by Government of Maharashtra related to various Departments – Industries, MIDC, Revenue, Urban Development, Irrigation, Environment, Labour, Energy, PWD and Sales Tax

• MAITRI shall cover entire Maharashtra, providing support for 31 Critical services across 15 State Depts.

Project Introduction (contd.)

Project Introduction (contd.)

Maharashtra Industry, Trade and Investment Facilitation Cell (MAITRI) is administeredby the Industries Department & serves as a single point of contact for Government toBusiness (G2B) services offered across the business cycle for setting up a newindustrial unit in the state. It will provide all the critical investment-relatedinformation

MAITRI aims to promote investments, facilitate business partnerships & trade inMaharashtra & would function as a clearing house for all investment relatedinformation and assist investors

Its implementation enables domestic as well as international (cross-border) traders tosubmit regulatory documents at a single location and/or single entity

The help desk for MAITRI has been set up at MIDC’s Ballard Estate office, Mumbaiwith representatives to assist the investors

MAITRI will cater to industrial projects with an investment of Rs. 10 crore and above

It will provide 31 critical investment related clearances from 15 departments that areneeded to set up an industry in Maharashtra

Project Introduction (contd.)

Stage I: Determination of Project Type:

- Large projects with investment from Rs. 10 to 100 Crores

- Mega project with investment above 100 Crores

Stage II: Availability of Land:

- Entrepreneur needs to acquire land or either possesses it

- Location of land within MIDC or outside MIDC

Stage III: Environment Clearances:

- For an industry to establish requires ‘Consent to Establish’ from MPCB

- For establishments with Built-Up Area above 20,000 sq.m need clearance from Environment Dept.

Stage IV: Plant Step Up:

- Investor needs to apply for 8 major approvals before setting up plant like Building Plan Approval,Provisional Fire NOC, Water Connection Approval, Building Completion Certificate, etc.

Stage V: Pre Commencement Approvals:

- Investor needs to apply for about 9 major approvals before setting up plant like VAT / CSTRegistration, Consent to Operate, Registration for employing contract labour, etc.

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Project Introduction (contd.)

Guidance, Support & Handholding

Process Optimization

Enhanced Monitoring Mechanism

Increased Transparency

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Benefits to Investors &Government

• Direct communication between departments and investors for additional documents

• Provision to escalate issues to the Nodal Officer

• Investors can raise grievance to the competent authority of concerned departments

• Regular updates to investors on updates and changes in rules, regulations, and policies

• 31 clearances from 15 departments under a single umbrella

• Critical information pertaining to departmental clearances readily available to Entrepreneurs

• Direct supervision of Principal Secretary, Industry and the Nodal Officers from respective departments

• Intervention in matters of expediting approvals across Departments

Service Category Mapping

SN. Services Offered Competent Authority StageCitizenCharter (Days)

1. Approval of Mega Project Industries Dept. Pre Implementation NA

2. BTAL Permission DoI Pre Implementation 90

3. Building Plan Approval MIDC Pre Implementation 15

4. Building Plan Approval UDD Pre Implementation 60

5. Consent to Establish MPCB Pre Implementation 45

6. CST & VAT Registration Sales Tax Dept. Pre Implementation 1

7. Electrical Connection NOC MIDC Pre Implementation 7

8. EM-I Registration DoI Pre Implementation 1

9.Environment Clearance for BUA>20000

Sq. M.Environment Dept. Pre Implementation 105

10. Factory Layout Plan Approval DISH Pre Implementation60 (Chemical factory), 45 (other factory)

11. Land Allotment MIDC Pre Implementation 21

12. NA Permission for Agriculture Land Revenue (Collectorate) Pre Implementation 90

13. Permission to Mortgage MIDC Pre Implementation 15

14. Provisional Fire Approval MIDC Pre Implementation 15

15. Provisional Fire Approval Maharashtra Fire Services Pre Implementation 30

Service Category Mapping (contd.)

SN. Services Offered Competent Authority StageCitizen Charter (Days)

16. Stamp Duty Exemption DoI Pre Implementation 3

17. Water Connection MIDC Pre Implementation 7

18. Water Reservation Consent Water Resources (Irrigation) Pre Implementation 90

19. Zone change for Agri. Land under BTAL UDD Pre Implementation NA

20. Boiler Permission Directorate of Boilers Post implementation 2-3

21. Building Completion Certificate MIDC Post implementation 21

22. Consent to Operate MPCB Post implementation 45

23. Drainage Connection MIDC Post implementation 15

24. Final Fire Approval MIDC Post implementation 15

25. Final Fire Approval Maharashtra Fire Services Post implementation 30

26. Line Changing NOC PWD Post implementationNo information

available

27. Power Connection MSEDCL Post implementation 90-120

28. EM-II Registration DoI Operational 1

29. Permission for Contract Labour Labour Dept. Operational 15

30. Professional Tax Registration Sales Tax Dept. Operational 15

31. Registration under Factories Act 1948 DISH Operational 120

Benefits to Government & Investors

The envisaged benefits of MAITRI implementation are as follows:

• Removal of Redundancy – information collection through Single Channel

• Coordination through MAITRI shall aid reducing workload on Depts.

• Ease of Business shall attract increase in investment & State’s industrial growth

• Better adherence to Govt. rules, regulatory simplification and better monitoring

Government

• Single Point of Contact

• Process Transparency & Ease of Access

• Interactivity - Check Updates & Follow up & Raise grievances

• Dedicated Service through MAITRI Team

• Application Tracking, Monitoring and Evaluation mechanism

• Inter-Departmental Coordination

• Periodic Reviews through MAITRI

Investors

Critical Success Factors

Periodic revamp of processes in terms of application forms, documents required, streamlined processing

Business Process Re-engineering

Proactively initiate aid & support working through MAITRI by all stakeholder Depts.

Administrative Will

Single point of information availability

Information availability

Intra-Departmental Training to enhance service delivery

Capacity Building

Ensuring robust information exchange between stakeholders

Information Exchange

Regular dialogue with investors to understand & implement improvements

Coordination & Dialogue

Business Process Re-engineering

Information Availability

Administrative Will

Critical Success Factors (contd.)

• Single Window Clearance (SWC) Act (under discussion) Legislation to legally bind all 15 Depts. with

MAITRI & strengthen system through empowerment

• Promoting Capacity Building Intra-departmental capacity building would

bring greater work efficiency

• Monitoring mechanism Setting monitoring mechanism under Nodal

officer of each Dept. Enable application tracking & compliance with

Citizen Charter

• Common Application Form & Single Point of Payment One time capture of overlapping data Establishing common payment collection

facility at MAITRI

• Mandate submission and acceptance through MAITRI It shall facilitate single point of application

tracking mechanism

• Industry Coverage Service extension to SME’s with > Rs. 10 Crores

investment

Challenges

Technical skills

Awareness

Legal Backing

Coverage

Accountability

Effective coordination

Technical support

Payment System

Current Status

0

100

200

300

400

500

600

700

20092010

20112012

2013

81 10492

1768

189 23

59

710

111

5

105

319

484

402

304211

442

610

425

386

Number of Investors Year-Wise

Implemented

Under Implementation

Under Construction

Unmonitored

Total

Average of 415 Large Project Investors invest in Maharashtra per Annum

Current Status (contd.)

The State attracts anaverage of Rs. 34,648Crores of Large ProjectInvestments per year,with Rs. 1,73,241Crores of investmentmade in last five years

Resulting in an averageof 1,02,940 Jobs peryear, with 5,14,701 Jobsgenerated in last fiveyears through LargeProjects alone

34619.7 32477.9

52117.09

31839.42

22187.8

0

10000

20000

30000

40000

50000

60000

2009 2010 2011 2012 2013

Year-Wise Investments (Rs. in Crores)

Implemented

Under Implementation

Under Construction

Unmonitored

Total

48160

107713

165569

110428

82831

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

2009 2010 2011 2012 2013

Year-Wise Employment Generated

Implemented

Under Implementation

Under Construction

Unmonitored

Total

Current Status (contd.)

MAITRI has been operational since March 2014 Critical information regarding investment policies, contact details of key officials up to

the district level, citizen charter and circulars are available at one place Simplified application process for investors to make it user-friendly, cutting the time

from application to approval A Government Resolution has been issued to coordinate activities between various

departments, including appointment of Nodal Officers for speedy clearance Handholding support to the investor fraternity across all districts in the State

Hub of Consolidated information

Simplified Application

Process

Coordination through Single

Channel

Guidance & Handholding for

Investors

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Current Status (contd.)

Issues0%

Land related17%

Buliding Plan Approval

17%

PSI related17%

Mining License 11%

Consent from MPCB

5%

Environment Clearance

5%

Fire NOC5%

Mega Project Approval

5%

BTAL Permission6%

State Excise Dept.6%

Local Clearances6%

Issues (Large Projects)

Issues resolved by MAITRI will revitalize Investments worth Rs. 10,499 Crores, ensuring 9398 Employment Opportunities in Maharashtra

Expe

cted

Imp

act

Way Forward

Primary function of MAITRI shall be being information & facilitation hub for the investors

• Service Continuance: Continue to be single house of information, guidance, support & aid for investors

• Catalyse Participation: Catalyzing more active & in-depth participation from various Govt. Departments

• Information Updates: Mechanism to keep investors abreast of the information updates for all Govt. Depts.

• Common Submission: Establish concepts of ‘Common Application Form’ & ‘Single point of Payment’ across all 15 Departments

• Expansion in Scope of Work: Catering to both State & Central based approvals & extending service provision for investors under Rs. 10 crores

Service Continuance

Catalyze Participation

Information Updates

Common Submission

Scope of Expansion

THANK YOU

Current Status (contd.)

SN. Major Investors IssueInvestment (Rs. in Crores)

Expected Employment

1. Indo Rama Petrochemicals (India) Ltd.

Approval of Mega Project status 2726 1700

2. Rawmin Mining & Industries Pvt. Ltd.

Incentives under PSI 2013 & Sanction of Mining License

2500 1100

3. Reliance Cement Co. Pvt. Ltd.

Sanction of Mining License 2000 160

4. Bharat Wire Ropes Environment Clearance from Environment Dept.

865 1000

5. Thermax Babcock & Wilcox Energy Solutions Pvt. Ltd.

Eligibility Certificate from DoI 687 600

6. Kirloskar Oil Engines Building Plan Approval 611 2000

7. Ujwal Electric Motors Pvt. Ltd.

Provisional Fire NOC & Consent to Establish from MPCB

260 200

8. Sudal Industries Building Plan Approval from MIDC 213 340

Issues Currently under Process by MAITRI

Current Status (contd.)

SN. Major Investors IssueInvestment (Rs. in Crores)

Expected Employment

9. Deccan Sugar Approval from State Excise Dept. & land related approval from DoI

208 300

10. Ultratech Cement Ltd. BTAL Permission & Building Plan Approval from UDD

200 80

11. Melting Centre Possession of Land from MIDC 89 630

12. R. M. Chemicals (Phosphate) Upgrade of existing PSI from 2007 to 2013

65 453

13. Rai Saheb Rekhachand Mohata SPG. & Wvg. Mills Ltd.

Repair & Maintenance of Road by Hon. Divisional Commissioner, Nagpur Region

45 550

14. Laurel Land Allotment from MIDC 30 285

Issues Currently under Process by MAITRI