SPECIAL FEATURE: MAHARASHTRA

Strengthening the base

A SPECIAL CORRESPONDENT

For four decades, the Maharashtra Industrial Development Corporation has been working with the goal of achieving the balanced development of the State.

BY SPECIAL ARRANGEMENT

The facilities of Tata Ryseron Ltd. at the MIDC-developed industrial estate at Ranjangaon near Pune.

A SMALL ceremony in Maharashtra's Wagle Industrial Estate 42 years ago marked the start of the Maharashtra Industrial Development Corporation (MIDC). It was presided over by the Chief Minister, Y.B. Chavan, and its mandate was simple - to encourage industry in Maharashtra.

The objectives of the MIDC today are achieving balanced industrial development with an emphasis on developing the State, encouraging infrastructure development of every district, and facilitating entrepreneurs to set up industries at various locations. The MIDC's activities have been in tune with its goals. It offers services such as the acquisition and disposal of land, the provision of infrastructure facilities and assured water supply and maintenance of industrial areas and area drainage schemes. In it's first year of existence, the MIDC set up 14 industrial areas. It now boasts 177 functioning industrial areas under it in the 34 districts of the State.

A policy decision taken in its early days laid the foundation for the MIDC's future success. It also facilitated the spread of the MIDC's activities into the interior areas. This historic decision was to set up an "independent filtered/potable water supply system of adequate capacity" as essential infrastructure for industrial development. The force of this idea was that it stabilised the population base near the industrial areas.

Another decision taken was to provide water to nearby villages and towns from the MIDC's own water supply system. This caused the growth of these areas, many of which were sliding downhill owing to the neglect of rural areas. Two perfect examples of this are the growth of Kalyan, once a village north of Mumbai, and Pimpri-Chinchwad, the vast, flourishing industrial belt near Pune. Key sectors that are either existing strengths of the MIDC or are being developed gradually into assets are those of automobiles, biotechnology, floriculture, food processing, Information Technology (IT) and IT Enabled Services (ITES), leather and textiles. The auto industry in Maharashtra has played a key role in the industrialisation of the State. Every single segment of the sector, including two- and three-wheelers, passenger cars and commercial vehicles, is represented in the State. Maharashtra accounts for nearly 38 per cent of the country's output of automobiles by value. Around 40 per cent of the workforce engaged in the automobile industry is employed in the State. Maharashtra is confident of being a leader in biotechnology.

Already, institutions such as the Bhabha Atomic Research Centre (BARC), the Indian Institute of Technology and the Tata Institute of Fundamental Research are doing pioneering research work. The State has the resources to make it the `most preferred destination' of the pharmaceutical industry. Maharashtra contributes about 40 per cent of the total turnover and 11 per cent of the total value of formulations to the pharmaceutical industry.

In the floriculture sector, the State has more than 4,000 hectares under cultivation. The most important features in this sector were the setting up of a large number of export-oriented units with foreign collaboration and investment. However, the infrastructure for marketing continues to be inadequate. This has left producer- farmers with the limited options of supplying the flowers to export units in the production area or to wholesalers in big cities at prices dictated by the latter.

The MIDC believes that a modern flower auction house of international standard needs to be established in Mumbai and in Pune to improve the situation. Keeping this in mind, the Maharashtra Agro-Industries Development Corporation, the nodal organisation for the promotion of agro business, will be set up for an auction-cum-wholesale market for floriculture in Mumbai.

The IT sector has found a natural home in Maharashtra. The State government has undertaken the ambitious project of developing the Mumbai-Pune Knowledge Corridor, thereby creating a natural home for companies from all over the world seeking to set up their IT or ITES activities in a safe, business-friendly and progressive environment with world-class facilities and infrastructure, and with a long-term perspective.

Maharashtra has led the country's industrial development and, with the backing of the MIDC, continues to attract the largest quantum of investments, both domestic and foreign. The MIDC is quick to point out that a joint survey of leading Indian States conducted by the World Bank along with the Confederation of Indian Industry, found that Maharashtra has the best investment climate.

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