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Mumbai,Dhaval Kulkarni(Indilens web team): Is Maharashtra being edged out by Gujarat in the neck-to-neck race to attract industrial investments? Though Maharashtra has attracted the highest number of investment proposals, neighbouring Gujarat, whose developmental model is talked about frequently, has attracted higher investments in financial terms.
However, Maharashtra is ahead of other states like Tamil Nadu, Andhra Pradesh and Uttar Pradesh.
The Economic Survey 2014-15 which was tabled in the state legislature on Tuesday, noted that the state has attracted highest number of proposals having maximum employment potential.
Between August 1991 and October 2014, 18,709 industrial proposals with an investment of Rs 10,63,342 crore were approved. Out of these, 8,376 projects with proposed employment of 10.95 lakh were commissioned, while 2,115 projects are under execution.
Of the total proposals received in the country, Maharashtra’s share in the number of proposals and investments is about 18% and 10% respectively, said the Survey.
However, the figures are lower than what Gujarat has achieved in all these years. Gujarat’s share in the number of proposals and investments stand at 12.10% (12,584 proposals) and 12.23% (Rs 13,18,050 crore) respectively.
“The IT industry has attracted 441 proposals with highest investment of Rs 3,82,766 crore (36%), followed by fuel industry with an investment of Rs 1,42,283 crore (13.4%),” said the Survey.
At 15.1%, chemical and fertilizer tops the list of approved proposals, followed by textiles (10.6%), metallurgical (10.2%), sugar (8.1%), electrical and electronics (6.2%), processed food (5.6%) and photographic raw film and papers (5.2%). “However, their share in investment was 28.8 % in approved proposals and 42.1% in commissioned proposals,” it added.
Between August 1991 and March 2012, 4,246 foreign direct investment (FDI) projects amounting to Rs 97,799 crore were approved in the state. Of these, 45% were commissioned and 10% are under execution.
Gems and jewellery, software, textiles, readymade garments, cotton yarn, metal and metal products, agro-based products, engineering items, drugs and pharmaceuticals and plastic and plastic items are the main exports from Maharashtra.
The state has approved 417 mega and large projects during the period August 1991 to November 20, 2014 by way of MoUs, with an investment of Rs 3,38,003 crore and proposed employment of 3.67 lakh. Of these, 119 projects with an investment of Rs 40,771 crore and proposed employment of 0.76 lakh were commissioned and 121 projects with an investment of Rs 92,590 crore and expected employment of 1.14 lakh are under execution, the Economic Survey 2014-15 said.
“Maharashtra is one of the leading industrial states and occupies dominant position in the manufacturing sector of the country… Proactive investment friendly government policies, opening up of various sectors for private investments in order to bridge demand-supply gap of infrastructure facilities as well as public finance, promising consumer market, productive human resource base, conducive business environment, etc. have contributed in ensuing industrial growth in the State,” said the Survey.
The Survey said that in order to boost industrial growth, the government had initiated comprehensive measures like reducing the number of approvals for business, single window investor facilitation through MAITRI (Maharashtra Industry, Trade and Investment facilitation cell), creation of e-platform for setting up of industries and new investments, repealing of the river regulation zone policy, additional FSI for industrial development in agriculture zone, etc. It added, “The State has focus on expansion of infrastructure and industrial smart cities, connectivity to industrial clusters, development of industrial parks, logistic parks, mega textile hubs, etc.”
Maha vs Guj (Aug 1991 – Oct 2014)
Investment Rs 10,63,342
Value of commissioned projects Rs 2,54,784 crore
Job creation 10.95
Under execution 2,115 projects
Value Rs 88,086 crore
Job potential 3.03 lakh
Investment Rs 13,18,050 crore
All India share
State Maha Guj
Proposal 18 12
Investment 10 12
FDI in state
Value Rs 97,799 crore
Under execution 10%
Top investors: US and Mauritius
Between Aug 1991 and Mar 2012