Maharashtra to add 5,000 mw capacity with private participation

Maharashtra is seeking to install 5,000 mw of power generation capability with private sector participation over the next five years, chief minister Vilasrao Deshmukh said today.

Deshmukh also announced the formation of a cell comprising captains in the industry who would constantly maintain dialogues with the state. While citing problems areas, the cell would also work towards suggesting remedial measures to resolve them, he said.

He said that a new policy on amending the Maharashtra factory rules of 1963, labour reforms and attracting private investment in the power sector was in the offing.

Addressing a meeting organised by the Confederation of Indian Industry (CII) on the issue of creating a vision for the state, Deshmukh said, "Though we were a power surplus state a decade ago, today we suffer a daily load shedding of 3,000 MW. The last decade saw Maharashtra dedicated to Enron. While the first five years were witness to our efforts to bring Enron to install a power plant in Dabhol, the next five years focussed on removing Enron."

Deshmukh, however, refused to provide further details of the power policy, which would be unveiled by the state. He said by giving out more information he would be breaching the privilege of the state legislature that is currently in session.

He emphasised his eagerness to do away with some of the outdated provisions amongst the multiple (47 labour laws) in force in the state. "Labour reforms initiated by us are stalled on some ground or other by people who say that a national consensus needs to be evolved first.

"We are blamed for being anti-labour by people who fail to realise that we are seeking to do away with certain provisions that have not only failed to protect labour but also retarded industrial growth. If there is industrial growth it would naturally mean more jobs," Deshmukh added.

Desmukh also stressed that there was tremendous scope in the manufacturing sector.

"The IT park in Hinjewadi in Pune has completed two phases already and is sold out. Even the third phase that has only just begun has already witnessed bookings. We aim to interlink all industrial areas in Maharashtra with air links, road upgradations and airport upgradations that are currently ongoing," he said.

Responding to a query on the high incidence of taxation on the pharmaceutical sector, Deshmukh said he was willing to consider any alternative mechanism that could be brought in place to reduce the taxes without impacting the revenues of the state government.

He also said that the state government had written to the centre seeking a tax holiday for industrial units that are being set up in the earthquake prone Latur region on the same lines that has been offered to the Kutch region in Gujarat.