 "Prithviraj Chavan & Naina Lal Kidwai")
To beat slowdown and give a fillip to investment flows, the Maharashtra government plans to offer a stimulus package for the state’s industry. The state government also proposes to revise its mega project policy to provide additional incentives to investors, especially to the badly-hit automobile sector. It also aims to fastrack clearances, including forest, environment and wild life.
Maharashtra Chief Minister Prithviraj Chavan also announced a slew of approvals for the realty sector during his interaction with the executive committee members of Ficci.
“The mood is not happy as slowdown is beginning to hurt the country. This is clearly a critical moment and there is a need to find answers. States are not an exception as job losses are imminent. There is a need for some stimulus package or policy change. As far as Maharashtra is concerned, there a need to give some comforts (better not to say stimulus package) for those invested in the state. I had a brain storming session with the representatives of industry department in this regard,” Chavan said. He however, declined to divulge further details.
Underlining the importance of the automobile sector and its contribution to the state economy, Chavan said the government was considering some additional incentives to keep the pace of investments. He informed that the policy on mega projects will be amended soon to provide additional sops to investors.
The chief minister admitted that the slowdown has hit tax collection in the state. “I will soon hold a brain-storming session with the finance department, which will be asked to make a presentation on what assistance state can seek from the Centre to tackle the current situation.”
Chavan added the government has already taken some decision to boost investments in the realty sector such as new floor space index (FSI) regime. “The government wants to put in place a mechanism for time-bound clearances, say within 60 days to realty sector.”
On the fiasco over bids for the Rs 9,300-crore Mumbai Trans-Harbour Link (MTHL) project, Chavan admitted it was a setback as the five short-listed bidders did not file technical and financial bids to the state-run Mumbai Metropolitan Region Development Authority. “Investors have backed out due to high risk especially in the current financial conditions. The government has taken a decision to implement the MTHL project through the engineering, procurement, construction (EPC) route.
On delays in the Navi Mumbai international airport, Chavan said the government has worked out land for land compensation package wherein 22.5 per cent of developed land will be provided to project-affected persons (PAPs). “This is a unique package as no cash compensation will be given to PAPs. The state-run City and Industrial Development Corporation of Maharashtra is in the midst of arriving at agreement with PAPs. However, the government is yet to get wild life clearance as the Karnala bird sanctuary is situated near the airport project site,” he added.
On the commissioning of Mumbai Metro phase I, Chavan said it will be possible only after the Commissioner of Railway Safety sanctions necessary clearances. The project will become operational in December instead of September.
Despite delays in project implementation, Chavan said projects worth over Rs 50,000 crore are under various stages of implementation to upgrade Mumbai's transport infrastructure. “I have appealed to the Centre to put in place a regulator for the transportation sector. The road toll is an issue and currently there is no regulatory authority for redressal,” he noted.
Chavan also made a strong case for dispute resolution mechanism under the Authority for Advance Rulings for uninterrupted development of various projects.
