Business Portal of India : Investment Opportunities and Incentives : State Level Investment : Maharashtra : Investment Policies and Incentives

The Government of Maharashtra has made several policy announcements in order to set up the right kind of business climate in the State. These policy documents aims to motivate investors to invest into the various sectors of the State and thereby contribute to the overall development of the economy. They are endeavoured to remove various road blocks which hampers the industrial map of the State. They also envisage various incentives and schemes for the investors.

The most important being, the Industrial Policy, which has been formulated with a view to ensure all-round and sustainable growth of industry in the State, through innovative initiatives for development of key potential sectors. The objectives of the policy are to:-

Create the conducive industrial climate in the State;

Provide global competitive edge to the State's industrial units;

Achieve higher and sustainable economic growth with emphasis on balanced regional development;

Generate employment opportunities;

Encourage greater private and public investment in industrial and infrastructure development.

These policy objectives can be realized through the following strategies, namely:- (i) identification of thrust sectors; (ii) building up of quality infrastructure; (iii) incentivising investments for employment generation in districts low on Human Development Index; (iv) attracting mega investments both foreign and domestic; (v) commercial exploitation of local resources and local economic potential; (vi) strengthening the small and medium sector through promotion of quality competitiveness, research and development and technology upgradation; (vii) streamlining procedures, debottlenecking and creation of hassle free industry friendly environment; (viii) strengthening institutional support, etc.

Another important policy is the Biotechnology Policy, which has been framed to promote orderly growth of the biotechnology industry in the State and make it globally competitive. The policy aims at providing adequate infrastructure, especially in the form of biotechnology parks as well as developing research base to serve the needs of the sector. The objectives of the policy are to:-

Provide to the farmers the better, high-yielding, drought and pest-resistant crops suited to the agro-climatic conditions of the State;

Develop affordable and more cost-effective drugs and devices to counter diseases;

Develop cheaper and effective technologies to purify water sources and to deal with industrial effluents and urban wastes, etc.;

Improve the livestock in the State in order to increase the earning capacity in rural areas;

Improve the marine stock to improve the productivity of the fishing industry;

Enhance the value and utility of medicinal plants and traditional systems of medicine by developing new products with global potential;

Develop and promote utilization of animal diagnostics and vaccines;

Augment feed and fodder availability and processing;

Improve the overall nutritional security in the State;

Improve the quality of life through better health and better environment.

Besides, there is also an Information Technology (IT) Policy, which aims to make Maharashtra the most favoured destination for investments in the IT and ITES industry. This is intended to be achieved by directing the State support at opening up large scale employment opportunities, facilitating growth of skilled and globally employable
man-power, unprecedented spurt in exports, creating hassle-free and industry-friendly working environment, associating urban local Governments as responsive key stakeholders in promoting business and enterprise in the IT industry, and providing a legal framework for data protection and consumer privacy. The policy aims to achieve the following:-

Promotion of public and private IT Parks;

Cost effective and fully reliable telecom connectivity to the IT & ITES units all over the State;

Excellent road connectivity from main Highways to the IT Parks;

Permission to developers of IT Parks to invest funds to construct connecting roads from highways to IT Parks;

Ensuring reliable and quality power supply round the clock in IT Parks by permitting unlimited back up power and captive power generation;

Levying power charges on IT and ITES units at industrial rates;

Exemption of IT & ITES units from statutory power cuts in power supply, etc.

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