Maharashtra, under criticism for losing out its pre-eminence in attracting investments to the neighbouring Gujarat, has approved investment proposals worth Rs 1,12,000 crore between April and September. The state government claims this is the largest-ever investment attracted by a state in a financial year so far.
These proposals include a petrochemical and refinery project by the state-run HPCL, near Chiplun in Ratnagiri district (Rs 40,000 crore), US conglomerate GE for research and development, manufacturing of gas turbine, locomotives in Pune (Rs 1,000 crore), Korean consumer durable giant LG for setting up a facility in Pune (Rs 1,000 crore), Korean steel maker Posco for producing various types of steel at Vile Bhagad in Raigad district (Rs 8,000 crore), and Chinese auto major Beiqui Foton for manufacturing utility vehicles near Pune (Rs 1,600 crore).
The state government cleared the proposals first, instead of following the Gujarat model of entering into memoranda of understanding (MoUs) and later giving necessary clearances.
“This clearly shows Maharashtra continues to be the favoured destination. This is the largest-ever investment attracted by any state during any single financial year so far. These projects are already approved, so that the developers can start implementation,” Chief Minister Prithviraj Chavan told Business Standard.
He said the government would soon enter into an MoU with these investors.
A senior government official said the government and its undertaking, Maharashtra Industrial Development Corporation (MIDC), had been working to negotiate with the investors. “Since 2007, under the mega project policy, Maharashtra has attracted 293 projects with an investment of Rs 2.10 lakh crore. The proposed investment of Rs 1,12,000 crore during April-September is a part of the total investment. These projects are expected to generate nearly 300,000 jobs in the state,” he added.
The official said these investment proposals were proof that Maharashtra was leading in attracting investments. “It is also to be mentioned that tyre manufacturer Bridgestone chose Maharashtra to carry out its expansion in 2010, though it had set up its first unit in Madhya Pradesh. Similarly, General Motors, which had established its first unit at Halol, Gujarat, carried out its expansion in Chakan in Maharashtra,” he added.
Beiqui Foton, one of world’s largest commercial vehicle makers, is in the process of identifying land with MIDC. The company has shortlisted some spaces in Chakan, near Pune, and expects to finalise them shortly.
A Beiqui Foton spokesperson said in an email, “We are also in the final stages of completing the necessary formalities for setting up a company in India and commencing our investments.”
With inputs from Swaraj Baggonkar in Mumbai
A senior government official said the Reserve Bank of India, in a recent report, had clearly said Maharashtra received the highest foreign direct investments worth $50 billion (Rs 2,22,000 crore) in the last 10 years.
According to the department of industrial Policy and Promotion, Maharashtra ranks first both in terms of number of industrial entrepreneurial memoranda (IEMs) implemented and number of employees. Maharashtra ranks first in total number of IEMs filed (15852) followed by Gujarat (10197), for the 2 decades 1991-2011.
(With inputs from Swaraj Baggonkar in Mumbai)
