MIDC

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

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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

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MIDC’s Approved SEZs (11 nos.)

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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.)

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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

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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

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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

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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

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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

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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