Maharashtra to focus on indigenisation, import substitution
The Maharashtra Industrial Development Corporation (MIDC) CEO P Anbalagan, speaking to Sanjay Jog, says the state is well-equipped to attract investments post-COVID-19
Q: What is the strategy to attract investment from companies in China that are exploring new destinations post-COVID-19?
Since 2018, a trade crisis between leading economies has resulted in uncertainty over the future of global trade and commerce, as countries are highly interdependent. The ongoing pandemic has further highlighted the importance of a diversified supply chain, to reduce dependence on any singular geography and de-risk volatility from external shocks.
Maharashtra has always been a major manufacturing and services hub in India, with a huge base of manufacturers from various sectors. As the most industrialised state in India, Maharashtra is well-equipped to attract investments. It already attracts nearly 30% of the country’s FDI, while contributing almost 15% of India’s GDP and has proved to be a leading investment destination not only in India, but in south-east Asia. In the post-Covid era, we have identified over 40,000 acres of land for investors of both greenfield and brownfield investments. This will also house ready-touse plug-and-play infrastructure, thereby ensuring that land requirement for all types of investors is easily fulfilled. Furthermore, we have introduced several new measures under the Magnetic Maharashtra 2.0 strategy, to promote investments in the state.
Q: Some states are actively tapping investments. How prepared are we to compete with them?
It is important to note that we have moved into a new era of co-operative federalism, where the investments are attracted on the most suitable state basis, the investors' requirements, sectors' maturity and national priorities.
Moreover, the Magnetic Maharashtra 2.0 initiative turbo-charges our existing efforts with dedicated relationship managers and relationship executives to ensure transactions are more holistically facilitated. In lieu of proposed investments, and the state's intent to reiterate its support to each of the investors, the MIDC has initiated the Investor First Program, for closer handholding and keeping in mind its role as a nodal agency for industries in the state.
Relationship managers (RMs) and relationship executives (REs) have been assigned to all companies investing above Rs 50 crore. The RMs & REs will be responsible for overall coordination and providing necessary support to investors on a continuous basis.
Q: Which are the sectors the state is looking at to attract investments and why?
The state has identified countries such as the USA, Germany, Japan and South Korea as focus countries and has initiated an outreach programme with their respective trade agencies, consul generals, ambassadors and trade missions. Sectors such as automobile, electronics manufacturing (ESDM), engineering, pharmaceuticals, data centres and the thrust sectors in the industrial policy will be the primary sectors in focus.
Q: Post-COVID-19, can we expect a refined version of the industrial policy, with more incentives for investors?
The Industrial Policy 2019 was released as a forward-looking policy that can accommodate all sizes and types of investors. To promote investments and further enhance the ease- of-doing business experience in the state in a post-Covid era, we have come up with some key interventions, such as Plug and Play Infrastructure, where the MIDC is offering a ready-to-move in factory environment, complete with advanced utilities and affordable pricing structure to be made available with sectoral tailoring. It will act as an industrial cluster in the future, hosting a diverse base of entrepreneurs, local suppliers and anchor units.
Nearly 40,000 acres of land in key industrial areas have been made available for greenfield and brownfield investments. These include areas in Konkan such as Taloja, Dighi and Khalapur for advanced sectors such as pharmaceuticals and data centres, in addition to additional acquisitions in Chakan, Nagpur, Nashik, Talegaon, Amravati and Aurangabad, for sectors such as engineering,
The Maha Parwana intervention will help us bring an end to the licence and permission hassles of investing in the state. We are set to roll out the red carpet to attract investment with ‘Maha Parwana’, a master permission for new industrial units within 48 hours of application, so that industries need no other permission and can start construction on the site immediately. The master permission will guarantee that all statutory permissions required to start operations will be delivered within a prescribed schedule (from three to 30 days), or else it will be considered a deemed approval.
Maha Jobs Portal: Designed by the state to act as an industry employment bureau, the portal will be launched in the next few days. Maha Jobs will have a dual impact. It will help industries meet the talent shortfall that they have been facing in recent months, providing ready access to unskilled, semiskilled and skilled talent. In parallel, it will allow the youth of the state to list their talent on the portal across 17 sectors and 950+ job roles. This matchmaking of talent will help the state achieve an optimal mix of utilisation and boost manufacturing productivity.
In addition to this, a bouquet of incentives are available which are tailormade for sectors (see box).
Q: There has been a chorus for Atmanirbhar Bharat. What role can Maharashtra play to make it a success considering its strategic location and other advantages?
To promote manufacturing, in line with the Prime Minister’s vision of Atmanirbhar Bharat and ‘Vocal for Local’, we aim to support manufacturers through the policy measures of Magnetic Maharashtra 2.0 strategy. To this accord, Maharashtra has initiated certain key measures to become a part of this agenda.
1. Maharashtra is actively developing dedicated sector parks with assistance from the GoI to meet the mission of Atmanirbhar Bharat, which will focus on indigenisation and import substitution.
2. We are signing MoUs with trade bodies of key countries to facilitate investments in the state.
3. The chief minister has appointed a senior bureaucrat as an FDI Sherpa, to facilitate FDI and ensure last-mile handholding.
4. We are continuously organising roundtable discussions with industry leaders and ambassadors of foreign nations.
5. Relationship managers and relationship executives have been appointed for all investors, as nodal points of contact, to facilitate their entire investment journey from project conception to grounding.