Governmnet of Maharashtra
MAHARASHTRA:
Vision 2010
- Strategies & Action
- Strategies & Action
Maharashtra Economic Development Council
| Governmnet of Maharashtra |
MAHARASHTRA:
Vision 2010 - Strategies & Action |
Maharashtra Economic Development Council |
Summary Proceedings of Business Conference on Maharashtra: Vision 2010 – Strategies & Action 6th & 7th June 2006, ITC Grand Central Sheraton, Parel, Mumbai Inaugural
Session Maharashtra Economic Development Council (MEDC) in association with the Government of Maharashtra arranged a Business Conference on Maharashtra: Vision 2010 – Strategies & Action at ITC Grand Central Sheraton, Mumbai on 6th & 7th June 2006. The aim of the conference was to initiate a link between the industry & the administration to create an investor friendly environment. Shri. Vilasrao Deshmukh, Hon`ble Chief Minister of Maharashtra, inaugurated the conference. Mr. Michael Carter, Country Director, World Bank, Ms. Swati Piramal, Director, Nicholas Piramal India, Mr. Kiran Karnik, Chairman, NASSCOM, Mr. V.K. Jairath, Secretary, Industries Dept, GoM, Mr. Jignesh Shah, CMD, Financial Technologies (I) Ltd. (FTIL) & MD & CEO, Multi Commodity Exchange of India Ltd. (MCX), Mr. Jayant Patil, Hon`ble Minister for Finance, Maharashtra, and Mr. Subodh Kant Sahay, Hon`ble Union Minister for Food Processing Industry, addressed the conference. In his welcome & introductory address Mr. M. N. Chaini, President, MEDC explained the objective of arranging such conference. He said that the conference has been arranged in order to plan a workable roadmap for development of Maharashtra state. To make Maharashtra a developed state few vital steps need to be taken, in Mr. M. N. Chaini’s view. 1.
Make Mumbai the Financial Hub of Asia Next presentation was made by Mr. Kiran Karnik, Chairman NASSCOM, on “Making Maharashtra – A Knowledge Destination.” He mentioned that Maharashtra is a pioneering state in IT but it has lost its first position since 1990. Now southern states are leading the IT sector. However HR & supporting government policy can take Maharashtra to take lead in IT. Apart from this growth in IT is driven by intellectual property. In this field Maharashtra leads other states. Mr. Kiran Karnik suggested state government to develop Mumbai-Pune-Nasik triangle with the help of appropriate infrastructure for IT. He further said that development in infrastructure has to be moved forward rapidly because we are going to compete at the international level and Maharashtra has to become competitive & attract investment. Presentation by Mr. Jignesh Shah, CMD, Financial Technologies (I) Ltd. (FTIL) & MD & CEO, Multi Commodity Exchange of India Ltd. (MCX) on “Maharashtra: The next global destination – Hub for Technology Enabled New Generation Financial & Commodity Markets.” In his presentation Mr. Jignesh Shah discussed the role of technology in Financial & Commodity Markets. He asserted that technology has been the backbone of all the new generation Financial & Commodities Exchanges. The benefits of use of technology are many. Technology has been harnessed to deliver the services to the investor’s doorstep across the country at the cheapest possible cost. With the help of technology exchanges are able to set up their operations as a nation-wide, fully automated screen based trading system with a high degree of transparency and equal access to investors irrespective of geographical location. Similarly high level of information dissemination through on-line system has helped in integrating retail investors on a nation-wide basis. Today IT & BT have created brands for India. In this field Maharashtra, especially Mumbai has major advantage of being highly urbanized & most industrialized state with large network of professional education institutions, presence of reputed R&D centres, well connected by roads, air and railways. He also explained the role of FTIL in establishing MCX, NSEAP & NBHC and MCX IT initiatives in Maharashtra. Presentation by Mr. Michael Carter, Country Director, World Bank on “Investment Climate in Maharashtra.” In
his address Mr. Michael Carter praised the state government’s
initiatives in the areas of rural drinking water supply and sanitation
and also in irrigation sector. However he also said that the state is
facing increasing competition from Tamil Nadu & Karnataka in attracting
industry. He said that it takes more time to set up business in Maharashtra
than Chennai & businessmen spend more time in dealing with regulations
here than in Karnataka. Administrative hurdles & shortage of infrastructure
facilities & basic services are the few fundamental problems faced
by investors while starting business in Maharashtra. Along with this Mr. Carter also advised the state government to adopt a fair, transparent and efficient policy for the rehabilitation of project affected people proposed by MUTP. Presentation by Ms. Swati Piramal, Director, Nicholas Piramal India on “Developing Maharashtra as ‘Life-Science’ Hub.” Ms. Swati Piramal started here presentation with the remark that we are on the threshold of what the world is calling "A Biotech Revolution." She further said that computers and genetics are fusing together to form a new technological reality. Scientists are beginning to organise life at the genetic level. Genes will be the primary source of economic activity. While
discussing what Maharashtra can do to encourage BT industry Ms. Swati
Piramal suggested the state government to take action on certain issue
like: Presentation by Mr. V. K. Jairath, Secretary, Industries Dept., GoM on “Maharashtra’s Industrial Scenario & Vision Ahead.” Mr. Jairath told the audience that the investors have shown tremendous interest in Maharashtra for last couple of years. He further said that Maharashtra occupies a prominent position in India. Maharashtra contributes 13% of country’s GDP. It’s per capita income is 39% higher than per capita income of the country as a whole. Maharashtra is a growing economy with a growth rate of 7.1% for a last decade. It has a strong network of educational institutions. It has well developed infrastructure of railway, roads, ports & airports. Thus Maharashtra is a most favoured investment destination in the country. He
also discussed the objectives of the state government. The objectives
are: Attracting
Mega Investments: The main objectives are: Mr.
Jairath also discussed the thrust areas for the state. The thrust areas
are as follows: Mega
project policy Labour
laws - Initiatives HR
Initiatives: Address
by Mr. Jayant Patil, Hon`ble Minister for Finance,
Maharashtra He also told the audience that the manpower is the state’s most important resource and thus improvement in education & healthcare would be among the state’s priorities. Presentation by Mr. Subodh Kant Sahay, Hon`ble Union Minister for Food Processing Industry In
his presentation Mr. Subodh Kant Sahay briefly summarized the status
of food processing industries in India. He also discussed the goals/objectives
of MFPI. Mr. Sahay also showed concerns over the low level of food processing in India. Only 2% in the case of fruits and vegetables, 14% in milk, 4% in fisheries, 1% in meat and poultry products are processed in India. India’s share in world’s processed food production is mere 1%. Simultaneously estimated wastage fruits & vegetables in India are almost 35% & in certain cases even as high as 60%. Vision 2015 of Govt of India is to raise agro/food processing from 6% to 20%, value addition from 20% to 35% and the share in global trade from 1.5% to 3 %. The estimated requirement of funds for achieving this being Rs.100, 000 Crore. (Source-GOI) According
to Mr. Sahay reasons for Sub Optimal Growth of Food Processing are: ROLE
OF MFPI Mr.
Sahay also discussed the major initiatives of last two years. They are
as follows: Mr. Sahay also talked about MoFPI Schemes like Food Park, Packaging centres, integrated cold chain facility, Value added centre, Radiation facilities, Modernized Abattoir and Business Development Programme for Street Food Vendors. Simultaneously he also pointed out few gaps in the present scheme like •Lack
of integration leads to under utilization of infrastructure created He also urged state government to take initiative in few issues like amendment to APMC Acts, lowering of VAT rates, and to integrate promotional infrastructure. This was followed by presentation of “Entrepreneur of the Year Award” to Mr. Jignesh Shah, CMD, Financial Technologies (I) Ltd. (FTIL) & MD & CEO, Multi Commodity Exchange of India Ltd. (MCX). Inaugural address by Shri Vilasrao Deshmukh, Hon`ble Chief Minister of Maharashtra In his inaugural address Mr. Deshmukh had taken an important initiative. He announced to put in place an independent mechanism to undertake the development of a corridor between the Mumbai-Pune-Nashik belt & Aurangabad – The Golden Quadrangle. He said that this golden quadrangle has immense potential & the state government wants to exploit it fully. He further added that the formal announcement of this could be expected in the proposed industrial policy. While talking about proposed industrial policy of the state Mr. Deshmukh said that Maharashtra’s new industrial policy would ensure that industry finds the state’s administration proactive & investment friendly. There should not be any gap between industry expectations & policy. He also promised speedy implementation of the much awaited single-window clearance for formalities to begin a new enterprise. The Chief Minister also admitted that shortage of power in the state is a worrying factor. However by 2008-09, Maharashtra will be a ‘power surplus state.’ The Inaugural Session came to an end with concluding remarks by Mr. Nandkishor Kagliwal, Vice President, MEDC. Mr. Vinod Gupta presented vote of thanks. Business Session I: Energy Security for Maharashtra The next session held immediately after lunch was the Business Session I on “Energy Security for Maharashtra”. Shri Dilip Walse-Patil, Hon`ble Minister for Energy, Maharashtra chaired the session. Mr. Anil Kakodkar, Chairman, Atomic Energy Commission made the first presentation of the session on “Nuclear energy an important option for future”. He told the audience that there is a strong correlation between per capita GDP & per capita electricity consumption. Recognising our future electricity consumption, at least 10-fold growth in electricity generation capacity is needed over the period of next 50 years. According to Mr. Kakodkar shortage of energy resources is a major challenge before country because in near future all our energy sources would start looking small. Thus at least 20-25% share of nuclear power in total power generation is inevitable even after accounting for all other energy forms. To explain his stance Mr. Kakodkar gave few statistics.
Amount Electricity Potential¤GWe-yr Concluding
Remarks Presentation by Mr. Dilip Walse-Patil, Hon`ble Minister for Energy, Maharashtra on “Power scenario in the state.” Mr. Dilip Walse-Patil admitted that today Maharashtra is facing acute power shortage. According to him demand for electricity by Maharashtra according to 11th plan is approximately 22 thousand mw. This is expected to add in power shortage. However 32 thousand MW more electricity is expected to get added soon. Increase in power supply is expected after various projects get operetionalise. Mr. Dilip Walse-Patil said that in Maharashtra assured & quality power is needed for industrial development. In fact lack of funds is not the issue for power sector. Main issue is of coal supply / supply of energy resources. However he assured that GoM would give encouragement & promotion to the power sector. Presentation by Mr. Jayant Kawale, MD & CEO, MSEB Holdings, on “Government of Maharashtra Policy Perspective.” In his presentation Mr. Jayant Kawale discussed how to assure energy security with the available energy sources. He told the audience that most of the coal-baring areas are in the other states & that coal is also of low quality. Simultaneously he also informed the audience about the efforts taken by government of Maharashtra to assure reliable & quality energy supply for its power plants. He told that for the first time Maharashtra Power Generation Company has acquired a coal-mine in Orissa. While talking about non-conventional energy Mr. Kawale said that from non-conventional energy sources 1000 MW electricity gets generated. However there are few problems involved in generating power from non-conventional energy sources. The major problem is that this energy becomes available when we don’t want it (i.e. in monsoon). This means we need extensive planning to use non-conventional energy resources. Mr. Kawale recognised gas as one more source of energy. However no resources are available in the state so the gas needs to be imported. While talking about demand for electricity he informed that the maximum demand for electricity was almost 15 thousand MW & minimum demand was 9 thousand MW. Agriculture is one such thing for which peak demand can be turned out to off peak demand. In this case with the help of peak load management shortage of electricity could be managed. Mr. Kawale gave reference of Akshay Prakash Yojana: the Scheme initiated by rural students. Under this scheme it was decided that villagers would reduce their total electricity consumption by 30% & peak hour consumption by 80%. Thus consumption of electricity declined substantially during peak load hours. Thus when you cannot increase your capacity peak-load management is the fastest way that one can reduce the peak hour demand. While concluding his presentation Mr. Kawale admitted that if nothing were done today to overcome energy crisis, today’s shortage of 4000 MW would increase to 10,000 MW in next 5 years. Presentation by Mr. Rajeev Bharadwaj, Executive Vice-President, PTC India on “Role of PTC India in Power Trading.” Mr.
Rajeev Bharadwaj explained power trading as addressing inevitable demand
supply mismatches through identification of complementary surplus and
deficits……...Leading Counter parties to “Win-Win”
transactions through a market mechanism. After explaining what is power
trading he gave a brief overview of power market in India. According
to him there are 5 power regions and more than 25 participants in 2005-06
(including state power utilities & independent generators) in India.
Power trading enables a smaller power system to become part of a large
system; obviating the need for reserve capacity and affording increased
reliability as well as utilization. The transactions are mostly done
on minimum risk basis. Electricity Act, 2003 and various Regulatory
orders’ intent is to develop the market through, While
talking about Maharashtra’s power position he informed that there
was current energy deficit of 12.9 % about 12000 MUs in 2004-05 Additional
Requirement 2006-2007 2011-2012 With the reference of the above statistics Mr. Bharadwaj argued that there is no significant capacity addition in the state of Maharashtra for the past five years and the shortage is likely to reach about 10000 MW in the next 5 years if no generating capacity is added. While
talking about long-term power purchase strategy for Maharashtra, Mr.
Bharadwaj illustrated an action plan for the state. Presentations were followed by the question/answer session. Business Session II: Agricultural Prosperity for Maharashtra Mr. Harshawardhan Patil, Hon`ble Minister for Mktg. & EGS, Maharashtra, chaired the session on Agricultural Prosperity for Maharashtra. Mr. Harshawardhan Patil told the audience that recently government has decided over (1) Contract Farming Act & (2) Model Act. He also added that the government has decided to present terminal markets one in Mumbai & the other in Nasik. 8 SEZs are also proposed to be set up for agriculture & food processing industry. Presentation by Mr. Sunil Porwal, Secretary – Cooperation & Mktg. GoM on “Recent state government initiatives in agriculture.” In
his presentation Mr. Porwal explained the salient features of amended
APMC Act. The
areas of opportunities in Maharashtra are: Presentation by Mr. Joseph Massey, Dy. MD, Multi Commodity Exchange of India Ltd. on “Integrating India's Heartland (Rural India) to Mainland (Global Markets).” In his presentation Mr. Joseph Massey asserted that services should be linked to rural economy through transport facility, testing labs, market intelligence services, sorting, grading, packing, storage facility, marketing, production inputs and extension service. While talking about cooperative movement in Maharashtra he said that the state has a very vibrant cooperative movement including 173402 Cooperatives with 476 lakh members and 1252 Marketing Co-operative Societies and 40171 Productive Enterprises (sugar factories, rice mills etc) Mr.
Massey also discussed the benefits of online futures trading for agriculture.
The benefits are: Growth
Opportunities for Indian Commodity Markets While
summing up Mr. Massey gave a proposal for Maharashtra. Presentation by Mr. Anil Jain, Vice-President, Marketing & Co-operations, Bayer CropScience on “Value added agriculture with emphasis on food processing” In
his presentation Mr. Anil Jain told the audience that the food chain
has changed the focus of agriculture & food processing industry
in India. He also talked about the chain concerns in India i.e. He also gave stress on diversity to meet customer needs i.e. diversity of fresh fruits, tropical fruits and vegetables requested throughout the year & also a need to grow healthy fruits and vegetables irrespective of seasons and growth periods on an economic basis. Maharashtra has immense potential for horticulture. It is a no.1 leading fruit & no. 5 leading vegetable producer in India. In Maharashtra the two important crops are grapes & vegetables. In his concluding remarks Mr. Anil Jain told that the success factor for food industry are variety, sustainability & traceability. According to him sustainable agriculture means more efficient, resource-conserving crop growing and responsible use of crop protection products in accordance with good agricultural practice.
Presentation by Mr. Suresh Kotak, Chairman, Kotak & Company
on “Building Agro strengths in Maharashtra” Business
Session III Presentation by Mr. Sanjay Ubale, Secretary Special Projects, GoM on “ Road map for Mumbai’s transformation” Mr. Ubale started his presentation by giving brief history of the process of transformation of Mumbai city & the major steps taken to transform the city. He also explained why Mumbai’s growth matters for the state with the help of appropriate statistics. 70% of all state taxes and 74% of sales tax are from MMR. MMR also accounts for almost 50% of state’s total GDP. He also asserted that Mumbai could become a world-class city because it has assets like it is a location for international commerce, World-class financial, media, trading clusters, large and specialized labor force etc. However it also faces few challenges like Regulatory constraints and under investment, High price of real estate, Poor Infrastructure and Services, High cost of living, labor, and doing business. Mr.
Ubale also focused on the actions required for the transformation of
Mumbai city. These are: •
Benefits of Transformation Presentation by Mr. Lamon Rutten, Jt. MD, Multi Commodity Exchange of India Ltd. (MCX) and former Chief Finance, Risk Management and Information in the Commodities Branch UNCTAD on “Mumbai – capital for commodity markets” Mr.
Rutten told the audience that Mumbai is called as Rotterdam of the east
but Mumbai is growing beyond this role. Mumbai is already host to India’s
largest commodity derivatives exchanges – a centre for price discovery
& risk mitigation. A
New Paradigm for the Commodity Sector: Exchanges Leading the Way The session ended with Concluding Remarks by Cmmdr. Deepak Naik, Session Chairman. Wednesday,
7th June 2006 Mr. M. N. Chaini, President, MEDC chaired the session The session started with the presentation by Ms. Neera Saggi, Development Commissioner, SEEPZ on “Salient features of SEZ Act” Ms.
Saggi first discussed the objectives of SEZ The Special Economic Zones Act, 2005 What
the Act Does Presentation by Mr. Rajeev Jalota, CEO, MIDC on “Special Economic Zones Challenges and Opportunities - Role of MIDC” Mr.
Jalota discussed the various steps were followed by MIDC to establish
SEZ Challenges
in SEZ Development Advantages
of Locating in MIDC SEZ MIDC:
Initiatives Under Consideration Presentation by Mr. Arun Nanda, Executive Director, M&M on “How to make SEZs work” Mr. Arun Nanda told that to make SEZs work one should always remember that everything does not work everywhere & needs passion for his job. SEZ is a business city with social infrastructure. Mahindra World City – A joint venture of GoM through MIDC & Mahindra Group is Corporate India’s First Operational SEZ. It is spread over 3000 hectares. The USP of this project are world class planning, private sector O & M, strategic location and environment friendly. According to Mr. Arun Nanda key elements of SEZ development strategy: vision, size, location & connectivity, industry focus, infrastructure facilities, private participation & policy framework. Major areas to address are acquisition of land, power, approvals, water supply, connectivity, developer credentials and track record, ease of operation in the SEZ. How
to make SEZ work in Maharashtra Business Session II: Maharashtra as IT Destination The
session was chaired by Mr. Deepak Ghaisas, CEO, I-flex
solutions. Mr.
Arvind Kumar told that Maharashtra is the favoured destination for IT
because: He said that the state government invites Mega Hubs, IT Parks, Hardware Units and Software Collaborations. Presentation by Mr. Dewang Neralla, Director & Chief Technology Architect, Financial Technologies India Ltd. on “Power of PPP for Technology driven markets in Maharashtra” He discussed the Public Private Partnership (PPP /P3): A system in which a government service or private business venture is funded and operated through a partnership of government and one or more private sector companies.” Why
PPP??? Possible areas for PPP are banking, agriculture, transportation, BPO & KPO, Brokering, Demat & other Financial Services, Hospitality industry, Telecommunication, Media & Broadcasting, housing etc. The use of this system will result in Overall increase in the ‘Quality of Public Service’ and “Enhanced Work Quality - combined with Social Responsibility.” PPP
Options Examples
of PPP Key
elements for success are: Mr.
Malladi also talked about Business needs in year 2006 He further added that the role of e-governance is in various sectors like agriculture & allied services, health & education, infrastructure, industries, welfare, administration & support. This
was followed by the presentation by Mr. Bhaskar Gadepally, Georgia
Tech, USA on “Making Maharashtra a knowledge destination” The
session came to an end with the closing remarks by Mr. Deepak Ghaisas,
CEO, I-flex solutions. Presentation by Mr. Bhushan Gagrani, MD, MTDC In his presentation Mr. Gagrani told the audience that the growth rate in tourism is almost 20% per annum. No of foreign tourists arrivals in the year 2005 is 42 million. Approximately 34% of country’s foreign tourist arrivals come to Mumbai. However tourism industry in India is not yet developed Share of tourism industry in GDP is just 5.6% (world 12%). Share of Indian tourism industry in global tourism business is just 0.36%. Indian tourism industry employees 6% of total population. He told that investment of Rs. 10 lakh in tourism industry could create employment to 40 people. Each hotel room creates job for 9 people. According to Vision 2025: Share of tourism in state income should not be less than 5%. He
also informed about the major projects for investment: Presentation by Mr. Pradeep Madhavji, Chairman, SAARC Chamber Tourism Council on “Simplifying Passenger Travel (SPT)” The
Simplified Passenger Travel (SPT) program is an initiative that focuses
on identifying and minimizing barriers currently faced by travelers
crossing international borders. Benefits Advance Passenger Information (API) coupled with machine readable travel documents and use of electronic data would allow authorities to do advance risk analysis; resulting in the expeditious clearance of a large majority (99.9%) of bona fide travelers. Address by Mr. M. N. Chaini, President, MEDC. Mr.
Chaini told that focus of this conference was to take review of the
2002 conference & the status today. He briefly talked on the message
from this conference. He recognised top three accomplishments of the
conference as follows: Presentation by Mr. Jeh Wadia, Managing Director, GoAir on “Modernizing Maharashtra’s Civil Aviation” Comparing aviation industry with rail industry seems that Indian aviation industry is still for elite class. Smaller size of domestic aviation industry is because of high price of air travel. Thus for aviation industry connectivity at right price is important. The aim should be to convert rail passengers or Volvo bus passengers to air travel. Thus cheap air connectivity should be the focus. In his closing remarks, Mr. Jignesh Shah, CMD, Financial Technologies (I) Ltd. (FTIL) & MD & CEO, Multi Commodity Exchange of India Ltd. (MCX) said that vision without implementation is always illusion. Thus a step towards implementation of all the good ideas discussed here is important. Address by Dr. D. K. Sankaran, Chief Secretary, Maharashtra Maharashtra is climbing new heights of development though there was some drop in its growth rate few years’ back. Challenges
before Maharashtra: Valedictory address by Mr. Ashok Chavan, Hon’ble Minister for Industries, Maharashtra on “Maharashtra as leading investment destination” Maharashtra has remained a favoured investment destination but now competition is increasing. He also added that Maharashtra government has political will & policy. Thus if present efforts are accelerated the goal can be achieved. In case of requirement of social infrastructure government is taking efforts to build social infrastructure to attract industries in rest of Maharashtra other than Mumbai, Pune & Nasik. Tourism is also an important sector. Today job opportunities are available in aviation industry. There is manpower shortage. Therefore at least one flying academy should be opened up in Maharashtra. In
case of infrastructure development focus should be on power sector. New
Industrial Policy Objectives Additional
incentives will be given to the less developed area of the state. The
two-day Conference ended with vote of thanks given by Mr. Nandkishor
Kagliwal, Vice-President, MEDC. About 300 delegates, invitees &
professionals attended the Conference. Presentations from Prominent Persons Inaugural Session
Business Session I: Energy Security for Maharashtra
Business Session II : Agricultural Prosperity for Maharashtra
Business Session III : Mumbai – The Growth-Driver for Maharashtra’s Economy
Business Session IV : SEZs in Maharashtra
Business Session V : Maharashtra as IT Destination
Business Session VI : Tourism and Special Valedictory
Conference Partner & Organiser
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