Investment of Rs 6.72 lakh crore promised on second day of Maharashtra summit

1 / 1

Investment of Rs 6.72 lakh crore promised on second day of Maharashtra summit

The Maharashtra government on Monday signed Memorandums of Understanding (MoU) with various investors for an investment of Rs 6.72 lakh crore in the fields of housing, power, jewellery, transport and agrotech on the second day of the three-day investment summit, Magnetic Maharashtra Convergence.

The Maharashtra government on Monday signed Memorandums of Understanding (MoU) with various investors for an investment of Rs 6.72 lakh crore in the fields of housing, power, jewellery, transport and agrotech on the second day of the three-day investment summit, Magnetic Maharashtra Convergence.

Out of them almost half promised investment (Rs 3.50 lakh crore) is for building 14 lakh affordable houses across the state.

Apart from that, Tata Power promised an investment of Rs 15,660 crore whereas Yes Bank promised to investment Rs 10,000 crore for supporting the micro, small and medium size enterprises (MSME). The Korea-based spandex major, Hyosung Group signed a MoU regarding allocation of 100 acres land to develop the first ultra mega project at Delhi-Mumbai Industrial Corridor (DMIC) in Aurangabad.

Hyosung Group will acquire the land to build their factory which will cater to spandex, an industry that contributes around 35 percent of market share in the world.

The construction work of this factory is expected to begin from March 2018, whereas the production work will commence from May 2019.

With its commencement, this first and the largest unit at DMIC will provide employment to more than 1000 people.

FIRST EVER JEWELLERY PARK

Maharashtra also has come up with a plan to set up first ever jewellery park with a vision to achieve export of $60 billion by 2022.

Union Industries and Commerce Minister Suresh Prabhu assured that his ministry will extend all the possible support to achieve the desired goal.

"Foreign trade includes import and export of both services and goods. The role of states is crucial in national growth and Maharashtra is playing a bigger role in foreign trade as well as creating connectivity infrastructure," Prabhu said.

Ajay Sahai, Director General and CEO of Federation of Indian Export Organisations (FIEO) said that exports must go up by 40 percent to achieve target of trillion-dollar economy.

"Petroleum products should be brought under GST (Goods and Service Act). Despite the welcome tax reforms, there are several hurdles in realising the dream of ease of doing business," he said.

P Pandya, Chairperson, Gems and Jewellery Export Promotion Council (GJEPC), pointed that India is a global leader in jewellery industry as 90 percent of rough diamonds come to India for finishing.

"Earlier it came to Maharashtra, but due to various administrative hurdles, it was diverted to Gujarat and South India. But it is encouraging to see Maharashtra changing to attract the business once again. This will definitely help the industry to grow," he said.

TRILLION-DOLLAR ECONOMY DREAM

Maharashtra Chief Minister Devendra Fadnavis unveiled a plan to make the state a trillion-dollar economy from the present $400 billion by the year 2025.

The ambitious plan envisages achieving annual GDP at the rate of 15.4 percent from the present rate of 9.4 percent to meet the goal.

Fadnavis said that Maharashtra's agriculture sector is growing at the rate of 5.5 per cent whereas industry and service is growing at the rate of 12.3 per cent and 59 percent respectively.

He informed that the state has decided to concentrate on five big ideas to achieve the desired economic growth.

They are employment rate growth by unlocking the employment, encouraging digital economy, ease of doing business for economic reforms, high employment and service infrastructure led growth and investment in infrastructure development and demand led growth corridors to connect geographically important cities in the state.

Fadnavis admitted that housing and public transport are two areas where the state government needs to work more to make Mumbai a bigger business hub.

"Mumbai will be transformed in five years. We have government institutions which are richer than the government. They will build infrastructure for the city. In coming days, Mumbai Metropolitan Region will see infrastructure works worth of Rs 1 lakh crore," he said.

NITI Ayog CEO Amitabh Kant said that cutting human interaction from the citizen and adopting digitisation is the key to achieve the goal.

Meanwhile, the Congress has criticised the Magnetic Maharashtra summit calling it an attention diversion tactic.

"There is too much frustration among the residents of Maharashtra because of the state government's wrong policies. The BJP has created a frustrated Maharashtra not a magnetic Maharashtra," said Radhakrishna Vikhe-Patil, Leader of Opposition.