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Maharashtra- The Preferred Investment Destination

10th September 2015

Knowledge Partner

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Maharashtra contributes to ~15% of India GDP on an average

State GDPGDP has grown more than 85% since 1980, i.e. highest in India

GSDP and State contribution (USD billion; %)

1285

1570

1751 1726 1731

180 230 245 243 244

FY10 FY11 FY12 FY13 FY14

India GDP Maharashtra GSDP

14% 14.65% 14% 14.07% 14.1%

Source: PIB, CSONote: GDP at Current Prices

Economic growth (%)

9.3

11.3

4.8

6.28.7

8.6 9.3 6.3

4.5 4.7


Maharashtra's GDP growth (%) India's GDP growth (%)

Maharashtra’s GDP composition (%)

8.2 8.9 8.5 7.9 7.5

30.0 30.7 29.4 28.4 28.4

61.8 60.5 62.2 63.7 64.0


Agriculture Industry Services


FDI in Maharashtra

Attracts the highest FDI in the country; expected to maintain its lead in the future as well

During April 2000 to November 2014Source: Ministry of Commerce and Industry

Total value of investment in the said period was € 62.6 bn (USD 70.4 bn), which

accounts for 30% of the total FDI Inflow

The next best destination Delhi garnered € 40.7 bn (USD 45.8 bn) and a share of 19 %

FDI inflow – India & Maharashtra

8,249 6,0979,553 8,716

3,420 4,983

25,83421,383

35,121

22,424 24,299 25,526

FY10 FY11 FY12 FY13 FY14 FY15*

Maharashtra India

FDI inflow and state contribution (USD million; %)

FDI Inflow – Maharashtra vs Other States

State-wise % share of cumulative FDI inflow (2001 - 2014)

30

207

64

41

28

Maharashtra

Delhi

Tamil Nadu

Karnataka

Gujarat

Andhra Pradesh

West Bengal

Others

Industrial Ecosystem

in Maharashtra


Ease of doing business in Maharashtra

Facilitating Investors with conducive business environment

Property Registration

• Sub Registrar office is computerized • Most city municipal bodies & major

districts are issuing computerized property bills

• E-payment of fees through GBAR & e-SBTR • Property Tax can be paid through a mobile

app

Electricity

• Procedures reduced from 7 to 3

• Time from 67 to 15 days

• Online submission of application form & supporting documents

Construction Permits

• No of days reduced from 162 to 50

• No of procedures reduced from 27 to 11

• Online application System for building permit to be implemented

Land Reforms

• Increase in FSI from 0.2 to 1.5 for industry set up

• Additional FSI up to 200% for IT SEZ

• Abolished Industrial License permission from Municipal Corporations & Industrial location policy for the MMR.

Labor Reforms

• Introduced self-certification scheme with Single Integrated Return Form for implementation of 16 Labor Laws in the State

• To eliminate “Inspector Raj”, circular issued for randomized risk based inspection and submission of inspection reports within 72 Hrs

• Self-certification scheme for boiler permission.

Tax & Environmental Clearances

• Common Application form for VAT, Professional tax, CST

• 7 benches constituted appointing High Court judges to hear commercial cases

• Randomized risk based inspection & submission of inspection reports within 24 Hrsas mandated

• River Regulation Zone policy: Discontinued


6

Maharashtra: Industrial Clusters

MIDC continually works towards increasing its land bank and setting-up of clusters/specialised parks

IT and ITeS

Gems and Jewellery

Logistics

Pharma / Chemical

Mumbai - Thane

Auto DefenceIT/ITeS and ESDMEngineeringChemicalFMCG

Pune

Textile

Food Processing

Solapur

Engineering

Auto

Pharma

Chemical

Aurangabad

Food Processing

Engineering

Winery

Ahmednagar - Nashik

Food Processing

Logistics

IT

Textile

Nagpur / Amravati


Source: Economic Survey of Maharashtra, 2013-14

Maharashtra: Infrastructure

Electricity

• Total State generation 88.14 billion Kwh nearly 10% of the national average

• Total consumption 100 billion kwh more than 14% of India

• Industrial consumption is at 38 billionkwh more than 15% of India

Railways

• 9.3% of total railway network in the country

• 2 Major Railway zones

• Dry Ports, truck terminals and railway sidings for easy freight movement

Airports

• 3 International and 7 Domestic Airports

• 20 Airstrips

• Mumbai airport is one of the busiest airports in India.

Seaports

• 2 Major ports

• 21.76% of the total cargo transport of the major ports in India is handled by the JnPT and MbPT ports

• 53 Minor ports

Roads

• 99.2% of the villages are well connected with all weather roads in the state

• The state is well connected to its six neighboring states and other parts of India through 18 national highways.


Maharashtra: Abundant Availability of Skilled Manpower

Has more than 6,000 institutes that enrols over 2.5 million students per annum

Pharmaceuticals

Research, Drug, Atomic Studies, Ports, Design

Electronics

Citrus, Cotton, Veterinary

Agriculture

Research, Healthcare

Film, Defence, Research, Chemical

Media, Textile

State University Deemed University

20 State Universities and 21 Deemed University

StreamsNo. of

InstitutesEnrolments per

year

General Education(Art, Science, Commerce)

3300 15,20,000

Engineering 1,074 5,43,000

Architecture 75 10,000

MBA/MMS and PGDM

516 36,000

Hotel Management and Catering Technology

23 868

Pharmacy 462 38,000

Master in Computer Application

148 15,000

Industrial Training Institutes

766 1,05,000

Medical Education 293 28,500

One of the Indian Institute of Technology (IITs) at Mumbai and one of the Indian Institute of

Management (IIM) at Nagpur


Labor Disputes in Indian StatesMaharashtra is one of the most industry friendly states

15

15

2

2

5

1

30

19

9

17

10

6

Upto May 20142013

46

17

19

25

14

7

2012

63

22

16

14

11

2

2011

Nu

mb

er o

f in

du

stri

al d

isp

ute

s

Tamil Nadu

Gujarat

Andhra Pradesh2

Karnataka

Rajasthan

Maharashtra

Source: Ministry of Labour and Employment, GoI

German – Maharashtra

Partnership


German Presence in Maharashtra

Source: Department of Industrial Policy & Promotion, Govt. of India, Indian Embassy in Berlin

FDI (from April 2000 to June 2015)

In India In Maharashtra

Total FDI€ 230,041 Million (USD 258,020 Million)

€ 66,953.75 Million (USD 75,097 Million)

German FDI€ 7,309 Million (USD 8,198 Million)

€ 194.9 Million(USD 218.6 million )

German Companies

1,521 619

Other key players


German Presence in Maharashtra

Source: Department of Industrial Policy & Promotion, Govt. of India, Indian Embassy in Berlin

Offered a 2-acre land at Hinjewadi IT Park in Pune for business expansion

Production site in Aurangabad , Maharashtra

Investment of € 684.72 mn (USD768 mn), capacity of manufacturing 110,000 cars annually in Chakan, Pune

1,500-crore brownfield expansion of its Chakan unit near Pune

To setup farm equipment manufacturing unit in Nagpur

To expand its existing capacity at its Nashik plant.

Recent German Investments


Key Investment Sectors - Region

• German companies evincing investment interest in various sectors including :

• Manufacturing

• Automobile

• Agriculture

• Energy

• IT & Electronics

• Textile

• Wine and spirits

• Chemicals

• TransportationFoundry Industry

IT Services

Agriculture, Defense

Winery & Spirits

Auto & Auto Ancillaries

Textile

Pune

Kolhapur

AmravatiNashik

Nagpur

Mumbai

Key Regions for Investment


Make in Maharashtra

‘Make in Maharashtra’ is an initiative by the Maharashtra Government to complement the Union government’s

‘Make in India’ mission

Approvals required by investors to start a project reduced to 25 from 76 and all the necessary permissions would

be granted within a month

Single-window clearance: To all units to reduce the average time required for establishment of such units and issue

various clearances required for setting up of industries at a single point.

Permissions for investment proposals for € 13mn (Rs 100 crore) plus projects would be given at one place

To bring down power tariff, the government has initiated the revival of non-operating power plants with a little

investment

Working towards improving power production and water supply, essential for industries, and easing of land

acquisition processes


Setting-up operations in Maharashtra

Maharashtra - Germany Partnership

INDIAN COMPANY FOREIGN COMPANY

Liaison/ Project / Branch Office

Automatic route

FIPB ApprovalNew User

Registration (MCA)

Apply for land

Tax Registration

Industrial Park

SEZ

Private Land

PAN, VAT, Service Tax

Excise Duty

IEC Code

Certificates & Clearances

Shop & Establishment

Trade Registration

Certificate of Commencement of Business

Insurance

EPFO

Environmental & other Clearances

Apply for Industrial

Licensing to DIPP

Apply for Power, Water

MIDC facilitates you to start operations within eight to ten weeks

JV / Merger with local company

Wholly Owned Subsidiary


Maharashtra: Policy Support

Progressive policies aimed at increasing the ‘competitive advantage’ of businesses

─ VAT + CST Abatement

─ Stamp Duty Exemption

─ Electricity Duty Exemption

Plus, a host of other benefits… Fisc

al S

up

po

rt ─ Skill Development

─ Single Window Clearance (SWC)

─ Investor Facilitation

─ Investor After Care Cell

No

n-Fiscal Su

pp

ort

Mega and Ultra Mega project can qualify for fiscal

incentives up to 100% of the fixed capital

investment

Special Incentives

10% additional incentive is provided by

the state if the project creates double the

employment required for the eligibility


Maharashtra: Policy Support

Project Qualification criteria, Monetary ceiling and Eligibility period

Ultra Mega/ Mega Projects

No.Project

ClassificationArea Classification

Fixed Capital

Investment

Direct

Employment

1 Ultra Mega Industrial Unit

Entire State € 213.98 mn(USD 240 mn)

3,000

2Mega Industrial Unit

A & B € 106.99 mn(USD 120 mn)

1,500

C € 71.33 mn(USD 80 mn)

1,000

D & D+ € 35.66 mn(USD 40 mn)

500

Qualification Criteria Incentive Basket

Ultra Mega/ Mega Projects

Taluka/Area

Classification

(% of Fix Capital

Investment)

A & B 50

C 75

D , D+ & NID 100

− Stamp Duty Exemption : 50% in A & B areas and 100% in rest of the areas− Electricity Duty Exemption : For 10 yrs. in A & B areas and 15 yrs. in rest of the

areas

− IPS per Year : 50% Gross VAT

Investment

(In USD Million)

Investment

(In Euro Million)

Max.

Period

(in Yrs.)

Up To 80 Up To 71.2 7

81 to 120 72 to 106.8 9

121 to 161 107.7 to 143.3 12

Above 161 Above 143.3 20


Incentives: Ultra Mega / Mega Projects

Numerous incentives to improve the conducive industrial climate in the State

Particular Incentive

Industrial Promotion Subsidy

60% to 100% Net VAT + 100% of CST

Water and Energy Audits

− 75% reimbursement of cost of water and energy audit limited to €1406 (USD1,580) and € 2812.5 (USD 3,160) respectively

− Reimbursement of 50% cost of capital to conserver water and energy , limited to € 7031.4 (USD 7,900)

Stamp Duty Exemption 100% stamp duty within investment period for acquiring land

Electricity Duty Exemption 100%

Food Processing Sector Additional 10% Incentives and additional 1 year towards eligibility

Power Cost reimbursement € 1.34 (USD 1.5) per 100 unit

Common Facility Centers Fiscal assistance by way of grant up to 70% on cost of plant and machinery

Interest Subsidy Interest Subsidy of 5% per annum

For Ultra Mega and Mega projects, quantum of incentives are decided by High powered committee under the chairmanship

of Chief Secretary, Government of Maharashtra and

sanctioned by Hon. Chief Minister of Government of

Maharashtra on a case to case basis

Incentives worth of € 191.18 mn (USD 214.43 mn) disbursed during financial year 2014-15


Incentives: LSI

Project Eligibility period and incentives offered

Incentive Basket

LSI Projects

Taluka/Area

Classification

(% of Fix Capital

Investment)

Max Period (in

Yrs.)

A - 7

B - 7

C 30 7

D 40 7

D+ 50 7

NID 70 7

− The maximum disbursement of the incentives every year will be proportionate to the monetary ceiling and the eligibility period

Schemes Policy Support

Industrial Promotion

Subsidy

Every year, in areas other than A & B areas, IPS will be 60% to 100% of VAT on local sales minus Input Tax Credit or zero which ever is less and Central Sales Tax payable on eligible finished product

Water & Energy Audit

• 75 per cent reimbursement of cost of water and energy audit limited to € 1345.16 (Rs.1 lakh) for water audit and € 2690.3 (Rs.2 lakhs) for energy audit

• 50% cost of capital equipment required for undertaking measures to conserve water and energy limited to € 6725.8 (INR 5lakhs) each

Stamp Duty

Exemption

• 100% exemption within investment period for acquiring land and for term loan purposes

• In A and B areas, Stamp Duty exemption will be offered only to IT and BT units in IT & BT Parks

Electricity Duty

Exemption

• Exemption from electricity duty payment to eligible new units in C, D, D+, NID area for a tenure equal to the eligibility period

• In A & B areas, electricity duty exemption will be offered to 100% EOU Large units and IT/BT units for 7 years


Incentives: MSME

Project Eligibility period and incentives offered

Incentive Basket

MSME Projects

Taluka/Area

Classification

(% of Fix Capital

Investment)

Max Period (in

Yrs.)

A - 7

B 20 7

C 40 7

D 70 10

D+ 80 10

NID 90 10

− For Existing/New units qualifying as Expansion / diversification are eligible for 75% subsidy on fixed capital investment


Industrial Promotion

Subsidy

In areas other than A & B, equal to VAT on local sales minus ITC or zero

whichever is more plus CST payable plus 20-100% of ITC on eligible

finished products

Water & Energy Audit

• 75% reimbursement of cost of water and energy audit admissible

• Assistance by way of 50% grant, limited to € 1345.16 (Rs.1 lakh) for

water audit and € 2690.3 (Rs.2 lakhs) for energy audit

• 50% cost of capital equipment required for undertaking measures to

conserve water and energy limited to € 6725.8 (INR 5lakhs) each

Interest

Subsidy

• In areas other than A area, @5% pa with maximum value up to the

value of electricity consumed and bills paid for that year will be

admissible


Incentives: MSMEs


Electricity Duty

Exemption

• New MSMEs in C, D, D+, No Industries Districts will be entitled to exemption from payment of electricity duty for tenure equal to the

eligibility period.

• In A & B areas , 100% electricity duty exemption will be offered to Exported oriented MSMEs and IT/BT units for seven years

Technical Upgradation

• 5% subsidy on capital equipment for technology upgradation subject to a maximum of € 33,629 (Rs.25 lacs)

Quality Certification • 75 % subsidy on the expenses incurred on quality certification, limited to € 1345.16 (Rs.1 Lakh) .

Cleaner Production Measure

• 25% subsidy on capital equipment for cleaner production limited to € 6725.8 (INR 5lakhs)

Patent Registration• 75 % subsidy on the expenses incurred on patent registration limited to € 13451.65 (Rs.10 Lakh) for the National patents and €

26903 (Rs.20 lakh) for the International patents.

Stamp Duty

Exemption

• 100% exemption within investment period for acquiring land and for term load purposes

• In A & B areas, Stamp Duty exemption only to IT and BT units in IT and BT parks

• Eligible Units under PSI 2007 scheme will also be eligible

Power Tariff Subsidy

• To the extent of € 0.013 (INR1) per unit consumed to eligible new units located in (other than A areas) Vidharbha, Marthwada, North

Maharashtra and districts of Raigad, Ratnagiri and Sindhudurg in Konkan

• To the extent of € 0.006 (INR 0.5) per unit consumed in other areas except A


Package Scheme of Incentives

Process to apply for and avail PSI benefits

Apply for Eligibility Certificate

Issue of Eligibility Certificate

Submit Incentive Claim

Sanction of Claim

Disbursement of Claim

Cla

im a

nd

Dis

bu

rse

men

t o

f In

cen

tive

sA

pp

licat

ion

fo

r In

cen

tive

s

Single Point of Contact

Development Commissioner

(Industries)[email protected]

+91-022-22023584

Submit application form on or before the date of commencement of commercial production along with Company registration certificate, Environment Clearance, Water connection sanction, VAT and CST registration, Audited balance sheet etc.

Eligibility certificate will be issued within 1 months after receiving all documents

Submit Incentive Claim application at the end of the financial year along with Auditor’s Certificate about VAT paid during the claim period, MVAT and CST returns filed for the claim period, Statutory sales-tax VAT auditor’s report, Details of employment for the project etc.

Claim will be sanctioned within 1 months post scrutiny

Once the Claim is sanctioned, it will be electronically disbursed to your account

Online Incentive Claim System will be available in next 2 months

mailto:[email protected]


MIDC – Nodal Agency for All Investors

Largest water supply network in Asia

2

3

4

5

6

1

MIDC’s Focus Areas

Industrial Estates

Specialized Infrastructure

Electricity

Water

CFCs

Projects

264 Industrial complexes

Approx. 84,000 hectares of land

Wine Parks

Silver Parks

Floriculture Park

Food Parks & Textile parks

32 IT Parks

9 SEZs

Dedicated feeders for industries to ensure uninterrupted power supply

13 Chemical Zones

25 CETPs

3 STPs

4 CHWTSDF

DMIC

SUPA – Japanese Investment Zone

Key Activities

Function as special planning authority

Link between Govt. and Industry

Acquisition and disposal of land

Providing support Infrastructure

One-stop for Investors Relations

A dynamic web-portal to monitor application status

Strong network of local authorities

Knowledge Partner

Maharashtra Industrial Development CorporationUdyog Sarathi, Mahakali caves road, Andheri (E), Mumbai – 400 093Board Number: 91-22-26870027/52/54/73 | Fax: 91-22-26871587Email: [email protected] | Website: www.midcindia.org

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