midc
TRANSCRIPT
June 7 ‘06
SPECIAL ECONOMIC ZONES
Challenges and Opportunities
Role of MIDC
Structure of the Presentation
Section I : MIDC and Industrial Development
Section II : MIDC in SEZ’s
Section III : Challenges & Opportunities of SEZ’s
Section IV : Conclusion
Section I. MIDC and Industrial Development
Premier Industrial Infrastructure development agency of Government of Maharashtra
Established in 1962, under M.I.D.Act 1961. Over 225 Industrial Parks; Area – 140,000 acres.
Objectives:
To achieve “Balanced Industrial DevelopmentBalanced Industrial Development” of Maharashtra
Emphasis on developing underdeveloped parts of the State
Facilitate entrepreneurs in setting up industries at various locations
Genesis
Creating Infrastructure for SEZ’s: Role of MIDC 1
Developing “Industrial Estates” through acquisition of appropriate land
“Special Planning Authority” for development of Industrial Estates
Providing basic infrastructure such as roads, drainage systems, power, water, HWMP, and now Gas in the Industrial Parks/ Estates
Establishing Common Facility centres by providing Banks, Post Offices, Telecom facilities, Police Stations, Fire stations, Medical facilities, and now container facilities, warehousing facilities, Group Captive Power Plants, etc.
Effluent collection and disposal systems for chemical zones
Providing “Residential Areas” for housing industrial workers
Construction and maintenance of Airstrips and Helipads
Activities of MIDC
Creating Infrastructure for SEZ’s: Role of MIDC 2
There are 227 functioning Industrial Estates in MIDC:
5 Star Industrial Estates: Offering very high quality external and internal infrastructure, amenities and waste management system
Major Industrial Areas: 20 hectares or more [88]
Mini Industrial Areas: Upto 20 hectares [89]
Growth Center: High priority areas declared by Government [50]
Industrial Estates
Creating Infrastructure for SEZ’s: Role of MIDC 3
MIDC has created a vast, robust and reliable water supply system which caters to both MIDC Industrial Parks and the adjoining areas
Total Installed Capacity of the system: 1940 MLD
Current Utilization: 1286 MLD
No.of Schemes : 69
No.of Dams : 05
Length of Water pipelines : 2864 Kms
MIDC’s Water Supply System
Creating Infrastructure for SEZ’s: Role of MIDC 4
MIDC's continuous efforts in promoting certain industries have made Maharashtra a Pioneer in these areas:
Automobiles
Biotechnology
Floriculture
IT and IT Enabled Services
Gems and Jewellery
Chemical Zones
Wine Parks
Textile Park
Food Park
Sectoral Initiatives of MIDC
Creating Infrastructure for SEZ’s: Role of MIDC 5
MIDC has set up some of the States’ most prestigious IT Parks including: Millennium Business Park, Navi Mumbai
Rajiv Gandhi Infotech Park, Hinjawadi, Pune
IT Parks at other locations in the State including:
• Nagpur• Aurangabad• Kolhapur• Nashik• Amravat• Satara• Sangli• Latur• Ahmednagar• Solapur
MIDC & IT Parks
Creating Infrastructure for SEZ’s: Role of MIDC 6
At least one well developed industrial Park in each district
90,000 hectares of land acquired for industrial development
53,000 hectares of land been developed for industrial activity
2,235 kms. of roads laid
26,397 industrial units already operating in MIDC parks - another 2623 units under Construction
Achievements of MIDC
Creating Infrastructure for SEZ’s: Role of MIDC 7
Section II. MIDC in SEZ’s
MIDC has been pioneering the development of Special Economic Zones in Maharashtra
Only State Government Agency which has received formal approval for 11 SEZ’s while 7 more are proposed
Work on the same has commenced
MIDC in SEZ’s
Creating Infrastructure for SEZ’s: Role of MIDC 22
MIDC’s Approved SEZs (11 nos.)
Creating Infrastructure for SEZ’s: Role of MIDC 23
Sr. No
Name of the SEZ Proposed area in Hectares
Expected Employment Generation
Investment Expected (in Mn USD)
1 SEZ for IT / ITES sector at Rajiv Gandhi Infotech Park, Phase-II, Hinjawadi, Pune
84.4 50,000-60,000 155
2 SEZ for Agro Products – product specific at Latur
155.81 15,000-20,000 166
3 SEZ for Pharmaceutical & related activities – product specific at Krushnoor, Nanded
148 25,000-30,000 266
4 SEZ for Textile & related activities – product specific at Kagal, Kolhapur
114.75 20,000-22,000 155
5 SEZ for Textile & related activities – product specific at Butibori, Nagpur
147.04 75,000-1,00,000 666
6 SEZ for Automobile & related activities – product specific at Shendra, Aurangabad
118.13 20,000-30,000 333
7 SEZ for IT / ITES sector at Rajiv Gandhi Infotech Park, Phase-III, Hinjawadi, Pune
234.9 1,00,000-1,25,000 333
Creating Infrastructure for SEZ’s: Role of MIDC 24
Approved List of MIDC’s SEZs
Sr. No
Name of the SEZ Proposed area in Hectares
Expected Employment Generation
Investment Expected (in Mn USD)
8 SEZ for Bio-technology at Jalna, Dist. Jalna 40.33 18,000-20,000 155
9 SEZ for Pharmaceutical & Biotechnology Specific at Shendre, Aurangabad
101.62 10,000-20,000 222
10 SEZ – Multiproduct Specific at Additional Sinnar, Nashik
1010 2,00,000-2,50,000 1555
11 SEZ – Multiproduct Specific at Nandgaon Peth, Amravati
1028.56 2,00,000-2,50,000 1555
TOTAL 3183.54 7,00,000-8,50,000 5561
Creating Infrastructure for SEZ’s: Role of MIDC 25
Approved List of MIDC’s SEZs
MIDC’s Proposed SEZs ( 7 nos.)
Creating Infrastructure for SEZ’s: Role of MIDC 26
Sr. No
Name of the SEZ Proposed area in Hectares
Investment Expected
(in mln USD)
1 SEZ – Captive Power Generation Specific at Bhadravati, Dist. Chandrapur
1100 2933
2 SEZ – Captive Power Generation Specific at Usar, Dist. Raigad
103 293
3 SEZ for IT / ITES sector at Ambernath, Dist. Thane
16.5 27
4 SEZ for Textile & related activities – product specific at Chincholi, Dist. Solapur
195 777
5 SEZ – IT / ITES sector at Ambad, Nashik 17 27
6 SEZ – for Textile & related activities – product specific at Baramati, Dist. Pune
101 444
7 SEZ - for Textile & related activities – product specific at Additional Yavatmal, Dist. Yavatmal
208 822
Creating Infrastructure for SEZ’s: Role of MIDC 27
Proposed List of MIDC’s SEZs
Section III. Challenges & Opportunities of SEZ’s
SEZ projects manifested with multidimensional project risks
•Inadequate Social and Economic Analysis• Availability of Land•Location- Insistence near a Port•Rehabilitation of the Displaced•Infrastructure constraints- External & Internal•Cluster Vs Isolated•Financial Challenges- Fungibility, Revenue Forecasting•Multi-disciplinary policies and multiple authorities•Human Resources
Challenges in SEZ Development
Creating Infrastructure for SEZ’s: Role of MIDC 9
Economic cycles may impact the occupancy of the zone and consequently its viability
•Holding on to un-leased lands•Impacts of the Global Economy- Manufacturing & Services
Inadequate experience of developers to successfully manage and execute all aspects of setting up an SEZ
•Zeal for Non Processing area development- Epitome of real Estate Development•Industrial Development is a different ball game•Getting carried away by the boom in Services Sector
Challenges in SEZ Development- Continued
Creating Infrastructure for SEZ’s: Role of MIDC 9
Huge Investments including FDI
High Employment Potential- Skilled & Un-skilled
Regional Social & Economic Development
Technology Transfer
Adoption of Global Best Practices
Improvements and additions to Infrastructure
Opportunities in SEZ Development
Creating Infrastructure for SEZ’s: Role of MIDC 9
Increasing Competitiveness
Fresh Boom in Manufacturing and Engineering
Development of Globally Competitive Human Resources
Reduce Income Inequalities and Disparities
Opportunities in SEZ Development- Continued
Creating Infrastructure for SEZ’s: Role of MIDC 9
Towards PPP !
MIDC as the sole developer
MIDC develops with a co-developer as JV
Developer in MIDC area as sole developer
Unit in MIDC area as sole developer
Sector Specific / Multi Product SEZ as JV in a New Area
Lands locked in MIDC areas?
Opportunities of Establishment of SEZ in MIDC Parks
Creating Infrastructure for SEZ’s: Role of MIDC 10
Advantages of Locating in MIDC SEZ
Creating Infrastructure for SEZ’s: Role of MIDC 33
Four decades of experience in Industrial Infrastructure
Ready Availability of Land
Clear title of land, free from all encumbrances
Established connectivity
Provision of world-class infrastructure
True Single-window clearances and approvals
More dependability and reliability and comfort on account of
being Government of Maharashtra undertaking
SEZ for Power Generation: A First-of-its-kind initiative
Multi-Services SEZ
Free Trade Warehousing Zone
Port-Based SEZ
Joint Venture SEZ’s :
Bharat Forge
Mahindra & Mahindra
MIDC: Initiatives Under Consideration
Creating Infrastructure for SEZ’s: Role of MIDC 34
Section V. In Conclusion
In Conclusion
Creating Infrastructure for SEZ’s: Role of MIDC 36
SEZ’s are of National and State level importance
Each SEZ represents an integrated management of several infrastructure facilities at one location
MIDC has been pioneering the Industrialisation of Maharashtra through Industrial Estates
MIDC aims to increase efficiency and nurture an investor-friendly and hassle free environment
Thank You
Lets Join Hands Together and Share a Common Vision