From the Government of Maharashtra-MIDC. MahaConnect. The Business Newsletter 74 th Edition June 2016

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1 From the Government of Maharashtra-MIDC MahaConnect The Business Newsletter 74 th Edition June 2016

2 Contents From the Desk 03 Aerospace and Defence Sector 04 District Focus: Aurangabad 07 Investment Plans/Initiative 10 Feedback 11 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. the opportunities in Maharashtra. This newsletter give the details of our interaction. 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, Sanjay Sethi, IAS CEO-MIDC 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 over the last month. We had an interaction session with the heads of the Mission India and delegation of Indian Industry. We saw immense enthusiasm among them to connect and collaborate with the State. We highlighted that Maharashtra is key to India s growth story. Each heads showed their keenness to learn more about 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 Index 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 and Sukhoi 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 : Index 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 Index 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. Index 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 Index 8

9 District Focus: Aurangabad 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 Index 9

10 Maharashtra Updates: Investment Plans/ Initiatives / Events June 2, 2016 A delegation of Heads of the Indian mission from 10 countries met the Hon.Chief Minister, Hon. Chief Secretary and heads of the departments to have an interactive session on the various point of collaboration between the State of Maharashtra and the countries they represent. The delegation included Indian Ambassador to Saudi Arabia, Cyprus, Fiji, Russia, Papua New Guinea, Denmark, Kyrgyzstan, Guyana, France and Chile. Industries in Maharashtra. He also emphasized on the new infrastructural project such as AURIC, MIHAN, NAINA, New International Airport at Navi Mumbai are key for the industrial growth of the state and will be game changer for Industrial growth in Maharashtra It was followed by an interactive session where industry leaders showed keenness in understanding of the opportunities available in each country and how the Indian Mission can help them. Hon.Chief Minister said that industry, tourism, smart cities and infrastructure are the key areas which provides investment opportunities in Maharashtra. He also highlighted that Government has made huge progress in ease of doing business and has taken progression steps such as cutting down the number of permission for industry, ease in labour and environment laws, randomization of inspections amongst others for the success of the Make in Maharashtra initiative. Later on, the delegation had an interactive session with the MIDC Hon. CEO Sanjay Sethi and a delegation from the Indian Industry. Hon.CEO presented the current investment scenario in Maharashtra and showcased opportunities for in various sector within the state. He stressed that the MIDC has been the forefront in developing industrial Infrastructure in Maharashtra and it is the one stop shop for Hon.CEO Sanjay Sethi addressing the delegation of heads of Indian Mission and lndian industry Index 10

11 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 Index 11

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