Special Economic Zones: Role of MIDC

SPECIAL ECONOMIC ZONES
Challenges and Opportunities
Role of MIDC
June 7 ‘06
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
Genesis
 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 Development”

Development of Maharashtra
 Emphasis on developing underdeveloped parts of the State
 Facilitate entrepreneurs in setting up industries at various locations
Creating Infrastructure for SEZ’s: Role of MIDC 1

Activities of MIDC
 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

Industrial Estates
 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]

MIDC’s Water Supply System
 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

Sectoral Initiatives of MIDC
 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
MIDC & IT Parks
 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
Achievements of MIDC
 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

Section II. MIDC in SEZ’s
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’s Approved SEZs (11 nos.)

Approved List of MIDC’s SEZs
Sr. Name of the SEZ Proposed Expected Investment

No area in Employment Expected (in
Hectares Generation Mn USD)
1 SEZ for IT / ITES sector at Rajiv Gandhi 84.4 50,000-60,000 155
Infotech Park, Phase-II, Hinjawadi, Pune
2 SEZ for Agro Products – product specific 155.81 15,000-20,000 166

at Latur
3 SEZ for Pharmaceutical & related 148 25,000-30,000 266
activities – product specific at Krushnoor,
Nanded
4 SEZ for Textile & related activities – 114.75 20,000-22,000 155
product specific at Kagal, Kolhapur
5 SEZ for Textile & related activities – 147.04 75,000-1,00,000 666

product specific at Butibori, Nagpur
6 SEZ for Automobile & related activities – 118.13 20,000-30,000 333

product specific at Shendra, Aurangabad
7 SEZ for IT / ITES sector at Rajiv Gandhi 234.9 1,00,000-1,25,000 333

Infotech Park, Phase-III, Hinjawadi, Pune

Approved List of MIDC’s SEZs
Sr. Name of the SEZ Proposed Expected Investment

No area in Employment Expected (in Mn
Hectares Generation USD)
8 SEZ for Bio-technology at Jalna, Dist. Jalna 40.33 18,000-20,000 155
9 SEZ for Pharmaceutical & Biotechnology 101.62 10,000-20,000 222

Specific at Shendre, Aurangabad
10 SEZ – Multiproduct Specific at Additional 1010 2,00,000-2,50,000 1555

Sinnar, Nashik
11 SEZ – Multiproduct Specific at Nandgaon 1028.56 2,00,000-2,50,000 1555

Peth, Amravati
TOTAL 3183.54 7,00,000-8,50,000 5561

MIDC’s Proposed SEZs ( 7 nos.)

Proposed List of MIDC’s SEZs
Sr. Name of the SEZ Proposed area Investment Expected

No in Hectares (in mln USD)
1 SEZ – Captive Power Generation Specific 1100 2933
at Bhadravati, Dist. Chandrapur
2 SEZ – Captive Power Generation Specific 103 293
at Usar, Dist. Raigad
3 SEZ for IT / ITES sector at Ambernath, 16.5 27
Dist. Thane
4 SEZ for Textile & related activities – 195 777
product specific at Chincholi, Dist.
Solapur
5 SEZ – IT / ITES sector at Ambad, Nashik 17 27
6 SEZ – for Textile & related activities – 101 444

product specific at Baramati, Dist. Pune
7 SEZ - for Textile & related activities – 208 822

product specific at Additional Yavatmal,
Dist. Yavatmal

Section III. Challenges & Opportunities of SEZ’s
Challenges in SEZ Development
 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- Continued
 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

Opportunities in SEZ Development
 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- Continued
 Increasing Competitiveness
 Fresh Boom in Manufacturing and Engineering
 Development of Globally Competitive Human Resources
 Reduce Income Inequalities and Disparities

Opportunities of Establishment of SEZ in MIDC Parks
 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?

Advantages of Locating in MIDC SEZ
 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

MIDC: Initiatives Under Consideration
 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

Section V. In Conclusion
In Conclusion
 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

Lets Join Hands Together and Share a Common Vision
Thank You

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SPECIAL ECONOMIC ZONES

Challenges and Opportunities

 Section I : MIDC and Industrial Development

 Section II : MIDC in SEZ’s

 Section III : Challenges & Opportunities of SEZ’s

 Premier Industrial Infrastructure development agency of Government

 Established in 1962, under M.I.D.Act 1961.

 To achieve “Balanced Industrial Development”

 Emphasis on developing underdeveloped parts of the State

 Facilitate entrepreneurs in setting up industries at various locations

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,

 Establishing Common Facility centres by providing Banks, Post

 Effluent collection and disposal systems for chemical zones

 Providing “Residential Areas” for housing industrial workers

 Construction and maintenance of Airstrips and Helipads

 There are 227 functioning Industrial Estates in MIDC:

 5 Star Industrial Estates: Offering very high quality external and

 Major Industrial Areas: 20 hectares or more [88]

 Mini Industrial Areas: Upto 20 hectares [89]

 Growth Center: High priority areas declared by Government [50]

Creating Infrastructure for SEZ’s: Role of MIDC 3

 Total Installed Capacity of the system: 1940 MLD

 Current Utilization: 1286 MLD

 Length of Water pipelines : 2864 Kms

Creating Infrastructure for SEZ’s: Role of MIDC 4

 MIDC's continuous efforts in promoting certain industries have made

IT and IT Enabled Services

Gems and Jewellery

 MIDC has set up some of the States’ most

 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

Creating Infrastructure for SEZ’s: Role of MIDC 7

 MIDC has been pioneering the development of Special Economic

 Only State Government Agency which has received formal approval

 Work on the same has commenced

Creating Infrastructure for SEZ’s: Role of MIDC 22

Creating Infrastructure for SEZ’s: Role of MIDC 23

Sr. Name of the SEZ Proposed Expected Investment

2 SEZ for Agro Products – product specific 155.81 15,000-20,000 166

5 SEZ for Textile & related activities – 147.04 75,000-1,00,000 666

6 SEZ for Automobile & related activities – 118.13 20,000-30,000 333

7 SEZ for IT / ITES sector at Rajiv Gandhi 234.9 1,00,000-1,25,000 333

Creating Infrastructure for SEZ’s: Role of MIDC 24

Sr. Name of the SEZ Proposed Expected Investment

9 SEZ for Pharmaceutical & Biotechnology 101.62 10,000-20,000 222

10 SEZ – Multiproduct Specific at Additional 1010 2,00,000-2,50,000 1555

11 SEZ – Multiproduct Specific at Nandgaon 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

Creating Infrastructure for SEZ’s: Role of MIDC 26

Sr. Name of the SEZ Proposed area Investment Expected

6 SEZ – for Textile & related activities – 101 444

7 SEZ - for Textile & related activities – 208 822