State Policy

Vision & Mission

The state aims to achieve economic development that should help in reducing the percentage of population living below the poverty line by 50 per cent by 2010. Also, the state aims that Human Development Index (HDI) of Maharashtra should be comparable with the best among the Asian countries. In order to fulfil this vision, the state's growth strategy focuses on the following elements:

• Create employment opportunities by developing the services sector

• Provide basic infrastructure and encourage private sector participation in infrastructure provision

• Provide stability to businesses to encourage investment and growth

The Government intends to focus on select industries and sectors to implement its growth strategy.

Based on the identified strategic framework and the thrust sectors, the state has identified necessary actions to achieve the desired targets. The following section discusses some of the recent developments.

IT/ITES Policy

• Setting up of an Empowered Committee and a Directorate of Information Technology

• Fiscal incentives including stamp duty and electricity duty exemptions, double FSI (FAR) for units built in IT Parks

• Permission for 24x7 working hours and relaxation of labour laws

• Initiatives to strengthen human resources

Tourism Policy

• Maharashtra Tourism Development Corporation to work as a single window for clearance of tourism projects

• Tax exemptions and electricity supply at industrial rates

• Ease in land allotment process

Biotech Policy

• Establishment of Maharashtra Biotechnology Board and Maharashtra Biotechnology Commission

• Setting up of a special Biotechnology Development Fund

• Creation of biotech parks and biotech resource centre

• Fiscal incentives including stamp duty and electricity duty exemptions and other incentives available to IT units

• Establishment of Grape Processing Industry Board

• Creation of wine institute and wine parks at Nashik/Sangli

• Excise exemptions and other fiscal benefits

Special Economic Zone (SEZ) Policy

The Government of Maharashtra has adopted the SEZ Policy for developing Special Economic Zones in the state. The SEZs, earmarked as duty-free enclaves, have a relaxed and business friendly policy regime, aimed at promoting rapid industrial development and employment generation. The approved policy regime includes:

• Exemption of all state and local taxes and levies for transactions with the SEZ and for supply from domestic tariff areas to the SEZ

• Exemption from stamp duty and registration fees

• Grant of labour and environment related permits and approvals through a dedicated single window mechanism

• Permission to generate electricity for own consumption

• Expeditious process for land acquisition to set up SEZs

Maharashtra State Road Development Corporation

In 2004, MSRDC privatised the Mumbai-Pune Expressway through transfer of the tolling rights of the Expressway for a period of 15 years for over US$ 200 million.

Infrastructure Policy

In order to improve the management of existing industrial infrastructure in the state, the State Government is planning to set up 'industrial township authorities' in respective industrial areas. These authorities will be autonomous bodies responsible for managing common infrastructure with active participation from the industrial units located in the area. They will also collect taxes and revenues for various services. In the first phase, 12 such industrial township authorities shall be set up. The Government is also planning to develop industrial parks in the state through private sector participation.

While the state's electricity sector is considered among the more progressive ones, the State Government has taken steps to further streamline the sector. It has set up the Maharashtra Electricity Regulatory Commission (MERC) under the provisions of the Electricity Regulatory Commission Act, 1998. The process of restructuring the Maharashtra State Electricity Board (MSEB) is underway.

e-Governance

The State Government has undertaken several e-governance initiatives to enhance the adoption of Information Technology in day-to-day functioning. The following initiatives are of special significance:

• SETU: Computerisation at the front-end for facilitating citizens at revenue offices. It enables monitoring of applications submitted by the public and action being taken within a fixed timeframe.

• SARITA: Award-winning computerisation of the complete process of property document registration

• SARTHI: Computerisation of driving licence and vehicle registration

• LMIS: Computerisation of land records

• SEAS: Fast MIS for revenue collection from excise duty

The efforts of the Government of Maharashtra have been recognised, with SARITA winning the Best Revenue System and SETU winning the Best Citizen Centric Project at the national level.

Content Source: www.ibef.org