The Maharashtra government has set an ambitious target to attract investments worth $500 billion within the next five years to take on neighbouring Gujarat.
Besides, the state government plans to mobilise nearly $309 billion by reclaiming land and redeveloping existing properties in Mumbai to develop it as the global financial capital. Further, the government will soon release a comprehensive special economic zone (SEZ) policy envisaging a slew of incentives to developers. The state government initiatives comes close on the heels of losing several projects to Gujarat, including investments by Tata, Ford and Maruti Suzuki to mention a few.
Maharashtra is also working on a strategy to work around its decision to defer tax refund for sourcing and sales within the state and limit VAT setoff to the sale of vehicles sold within Maharashtra. However, the government said the amendments to this policy would not be done at the cost of revenue mobilisation, especially at a time when there is an additional burden of Rs 2,400 crore on the state exchequer on VAT claims.
The government, which has come under severe criticism for losing its dominance in attracting investments to Gujarat and other states, will also introduce a comprehensive textile policy which focuses on value addition and employment generation for at least 5,00,000 people. The government has identified 32 key result areas (KRA) comprising industry & SEZ development, port development, skill development through involvement of corporates, tourism development and promoting sericulture to increase silk production to at least 200 tonnes.
Chief Secretary Ratnakar Gaikwad said, “To do away with the procedural delays, the government will bring in a legislation for online development permission. It will be binding on government departments and agencies to clear the necessary files pertaining to approvals within a stipulated timeframe. More and more use of technology, reducing interface with the public will also help curb corruption.”
Speaking on the occasion of the 50th annual general meeting of the Maharashtra Economic Development Council, Gaikwad said Mumbai has every potential to become the global financial capital and not just a centre.
“Mumbai is a gold mine and mobilisation of at least $309 billion is possible only through reclamation of some lands and redeveloping existing properties. The redevelopment of government-owned dairy located at Worli in south central Mumbai alone will generate Rs 10,000 crore. Besides, the government can mobilise Rs 10,000 crore through the redevelopment of government employees’ residential colony in Bandra, while another Rs 10,000 crore through the redevelopment of Nariman Point which is the central business district developed in phases since 1960 onwards.”
According to Gaikwad, the government plans to mobilise Rs 1,000 crore through the modernisation of 500 depots of state-run Maharashtra State Road Transport Corporation.
