From the Government of Maharashtra-MIDC. MahaConnect. The Business Newsletter 71 th Edition March 2016

Transcription

1 From the Government of Maharashtra-MIDC MahaConnect The Business Newsletter 71 th Edition March 2016

2 Contents From the Desk 03 Aerospace and Defence Sector 04 District Focus: Aurangabad 07 Investment Plans/Initiative 10 Feedback 12 2

3 From the Desk Maharashtra has a rich industrial heritage. The state is a leading contributor to the manufacturing sector in the country. With the presence of prominent Defence public sector undertakings and Defence research institutes, there lies huge opportunities for the defence companies to invest in the state. This newsletter showcases the contribution of this sector and investment potential in the state. This newsletter will give a glimpse of the Aurangabad District. Aurangabad is well known industrial hub of the state. The district has well established industries from various sectors such as Auto, Pharmaceutical, Biotechnology, IT/ITes amongst others. The newsletter throws light on the opportunities available in the district to invest in key sectors. MIDC has always kept the process of interaction and meeting with delegation of various countries and association a continuous affair. This newsletter will cover such meetings held in the month of March. We had a meeting Counsul General of Australia where we discussed ways to invite the Australian company to come and invest in Maharashtra. It was very insightful session to understand the expectation of the Australian investors. Also, MIDC participated in the Defence Expo organized by the Ministry of Defence. This has opened new avenue for defence investment in the India and will give a fillip to FDI investment. This newsletter will cover this events in detail. We keenly look forward to your suggestion and feedback in making MahaConnect more enriching for our readers. Please write to us at mahaconnect@midcindia.org. We also invite you to visit our website for further details and opportunities the State provide in the realm of setting up industries in the State. Regards, Bhushan Gagrani (IAS), CEO-MIDC 3

4 Aerospace and Defence Sector India features amongst the top 10 countries in the world based on its defence spend. In 2014, India spent USD 45.2 billion which was about 2.21% of its GDP. Over the last decade, India s annual defence expenditure has grown by over 231% Our Defence spending is expected to more than double to reach USD 120 billion over the next decade. In the recently held Defence Expo, new defence procurement policy was announced. The government has de-listed 66 percent of items from defence export clearance to boost the Make in India campaign. Under this new policy, steps have been taken to ensure that procurement takes place in a transparent but at a faster speed. With presence of many industries in Maharashtra, the contribution of the state to the Defence sector is a notable one. Maharashtra occupies a significant share of per cent the industrial output of India s machinery and equipment manufacturing sector in Maharashtra s share is among the highest with industrial output of per cent of Basic Metal and Fabricated Metal product in Maharashtra has an existing defence ecosystem with big companies such HAL, Bharat Forge, Bharat Dynamics, L&T, Boeing, Walchandnagr Industries Limited and more. These companies are involved in manufacturing of defence equipment, vehicles, defence and aerospace component. Share in Global Arms Imports from 2009 to % 14% 5% 4% 4% 5% India China Pakistan Saudi Arabia USA Other 4

5 Aerospace and Defence Sector Aerospace and Defence Hub in Maharashtra Major Aerospace and Defence Hubs Thane Nashik Pune Aurangabad Nagpur Arms and Component Manufacturing : Pune has numerous defense institute such as DRDO Research Labs, Ordinance factories and industries like Mahindra, Tata motors, Bharat Forge amongst others. Naval Defense : Being closer to ports, Mumbai and Pune have established ship building manufacturers such as Mazgaon dock Ltd., L&T, NorthStar Shipbuilding amongst others Aerospace : Nashik is home to public sector company like HAL which manufactures Russian Combat Aircrafts.Nagpur and Amravati region is also emerging as Aerospace and Defense regions with industries such as Boeing MRO, TAL, Bharat Dynamics and more Public Sector Defence Undertakings in Maharashtra Aerospace and Defence Hub Hindustan Aeronautics Limited : HAL is an Indian State owned aerospace and defence company which has the MiG complex in Nashik. This complex is used for manufacturing and overhaul of MiG fighter planes Website : Mazgaon Dock : Mazgaon dock is a Government of India Undertaking set up in Mumbai producing sophisticated warship for the Indian Navy and Coast Guard Website : Ordnance Factory Board The board has family of Ordnance factories across Maharashtra and other parts of the country producing defence products. Website : 5

6 Aerospace and Defence Sector Government of Maharashtra Initiatives Key Players in Maharashtra The Government of Maharashtra came out with Industrial Policy in 2013 with the main objective of giving boost to the industrial growth and employment in the state. Following which, many diverse industries have set up their base in the state. This has led to state retaining its leadership position in manufacturing output. Key Features of the Policy : Under the new Industrial Policy , Mega and Ultra Mega project can qualify for fiscal incentives up to 100% of the fixed capital investment. Moreover, 10% additional incentive on top of the above mentioned incentives is provided by the state if the project creates double the employment required for the eligibility VAT refund under Industrial Promotion Subsidy for eligible MSMEs 100 per cent stamp duty exemption to eligible MSMEs units for acquiring land and for term loan purpose for eligible period 100 per cent electricity duty exemption to eligible MSMEs units for eligible period Dedicated Institutes DRDO s Research & Development Lab in Pune has provided indigenous development of Combat Engineering Equipment Defense Institute of Advanced Technology (DIAT), Pune is a reputed defense institute with center of excellence for education, training and research in contemporary and futuristic technology 6

7 District Focus: Aurangabad Aurangabad Snapshot Demographic Snapshot Population (thousands) 3,701 Literacy Rates (%) District Income (Crore) 30,668 Geographic Snapshot Area ( thousand Sq Km) 10.1 Talukas 9 Major Cities 16 Industrial Snapshot No. of Factories 1103 Total Factory workers 58,190 Aurangabad Administrative Setup Aurangabad district is the divisional head of the Marathwada region of the state. The district is surrounded by the East: Jalna district, West: Nasik & Ahmednagar, North: Jalgaon District and South Beed district..aurangabad district has 9 Tehsils viz. Aurangabad, Sillod, Vaijapur,Paithan, Soigaon,Fulambri, Gangapur, Kannad, Khultabad. At the District level, Collector is the Administrative Chief and at Tehsil level, Tehsildarsare looking after the administration as per Collector s instructions. For Rural development, Chief Executive officer of Zilla Parishad and at block level, Block Development Officers are in charge of the administration. Municipal Corporation for Aurangabad & Municipals Councils for other Tehsils are responsible for urban development of all the Tehsils. There are 9 Panchayat Samities and 6 Nagar Parishads. 7

8 District Focus: Aurangabad Aurangabad District Physical and Social Infrastructure Road Railways Total length National And State Highway in the district is about 1357 kms. Nagpur Aurangabad Mumbai express highway cuts down significant travel time between Mumbai. It also connected to important industrial area like Waluj, Shendre Aurangabad is one the division under the South Central Railway Zone of Indian Railways. The total railways length in the district is about 639 kms. It is connecting to major India cities like Mumbai Delhi, Hyderabad, Nanded, Nagpur, Nashik, Pune Airport Aurangabad is well developed city with world class urban infrastructure It is well known as the Tourism capital of Maharashtra Aurangabad and its surrounding region has huge industrial presence It has well developed Auto and Auto component and Pharmaceutical ecosystem It is also emerging as a prominent location for IT and ITes companies Education Aurangabad is well connected to major cities like Delhi, Mumbai and Hyderabad. Passenger movement at this airport during 2014 was about 4,58,107 while cargo tonnage was about 1178 tonnes Pune district has 14 ITI and ITC to cater to the skill requirement of the heavy industries. It has 32 technical Institutes and 125 higher educational institutes to cater to the growing demand of industries for semi-skilled and highly skilled resources 8

9 District Focus: Pune Investment Opportunities Auto & Auto Component Aurangabad is major auto hub and is home to auto major like Skoda, Bajaj Auto, Goodyear tyres, Vorrac Engineering,Balkrishna Tyres, Duro Valves amongst others Waluj MIDC houses big auto and auto component is the centre of the auto and auto component cluster around this area Pharmaceutical Pharmaceutical SEZ is located in the 5-star MIDC Shendre and is the most modern MIDC area at Aurangabad Johnson & Johnson, Baxter, AMRI, Monsanto, Lupic, Glenmarks, IPCA,Ajanta Pharma,Wockhardt Ltd, Innotech Pharma are some of the pharmaceutical companies which are established and growing in Aurangabad IT / ITes IT sector promotion was initiated with development of IT park in Chikalthana Currently there are around 22 IT units operational employing 2500 professionals. Recently, BPOs have also been established which are providing services to local and international customers Key Industry Players 9

10 Maharashtra Updates: Investment Plans/ Initiatives / Events March 18, 2016 Maharashtra is a leading recipient of FDI investment among other states. However, it has seen very few Australians companies investing in Maharashtra. With the Make in Maharashtra, Maharashtra wants to welcome Australian companies to visit Maharashtra and invest here. As part out the government outreach effort, MIDC CEO met the Consul General of Australia Mr and Deputy Consul General Ms MIDC CEO Mr Bhushan Gagrani and Consul General Mr. Mark Pierce.both shared the concern of no industrial investment by Australian company in Maharashtra. Both agreed that there is immediate steps are required to welcome Australian company and guide them on how to Invest in India. Mr. Pierce noted that Australian investor would need guidance from the Government and Government official to ensure that investments are put in the right direction He was also the conveyed the positive impact the Make in India and Make in Maharashtra campaign has created on the Australian investors. He was highlighted that reforms under the ease of doing business is a progressive step taken by the Government of Maharashtra Mr. Gagrani said that the concern of the Consul General are valid and he will take steps to ensure Australian investment in Maharashtra. He highlighted that Maharashtra has excellent business environment and has been leading investment destination of the country. He ensure full government support to Australians investor who are willing to invest in the state. Mr Bhushan Gagrani, CEO MIDC presenting a memento to Consul General Australia Mr Mark Peierce 10

11 Defence Expo 2016 March Defexpo India 2016, the ninth in the series of biennial Land, Naval and Internal Homeland Security Systems Exhibition, was held at Naqueri Quitol in Quepem Taluka of South Goa, India from 28th to 31st March Defexpo India clearly steered the path of steady growth and has received overwhelming and unprecedented international response with each edition. More than 47 countries participated in the Defexpo 2016 and over 1000 Indian as well as International defence companies attended the expo, this included United States (93 companies), Russia (71), UK (46), Germany (39), France (38), Israel (38) and other arms producers like South Korea and Italy. Some of the companies at the Expo include BAE Systems Inc., Boeing, Lockheed Martin, Bharat Forge, Air Bus Group, Ashok Leyland Ltd., Punj Llyod, Bharat Electronics Limited, HINDUSTAN AERONAUTICS LIMITED etc. The expo also saw participation of few Indian State Governments like Telangana, Karnataka, Andhra Pradesh, Chhattisgarh. The Defence Procurement Procedures (DPP) Policy 2016 was unveiled during this Expo. The policy is expected to address the concerns of defence manufacturers and suppliers with enhanced transparency and also support. For the first time live demonstrations of the equipment s were showcased in the Expo. Moreover, various defence-related companies forged joint ventures and struck mega-dollar deals at the defence exposition. MIDC stall at the Defence Expo ; Mr Apruva Chandra, Principal Secretary (Industries) visiting the MIDC stall at 11

12 Feedback For feedback, write to us at: Maharashtra Industrial Development Corporation Udyog Sarathi Mahakali Caves Road, Andheri (E), Mumbai Phone: /54/73; Fax: From the Government of Maharashtra-MIDC Knowledge partner 12