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37th Issue

MahaConnectThe Business NewsletterFrom Government of Maharashtra - MIDC

Knowledge Partner

Government of

Maharashtra

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As per the latest figures published through the economic survey of Maharashtra 2012-13, the net value added by the industries has been derived to be at INR 152,238 crore.. ….Read more on page 6

EditorialDear Reader,

With great pleasure, we bring you the third anniversary issue of Mahaconnect- Government of Maharashtra, MIDC Business Newsletter. As we get into fourth year of publication, we would like to acknowledge the contributions of all those stakeholders who have played a prolific role in making this endeavor a successful journey. Today, its subscription base includes the various investor communities, trade bodies, embassies, consulates, chambers of commerce, business councils and several other association around the globe. The MahaConnect team aspires to continue making scrupulous analysis of the macro economic indicators of the state.

In this edition, we have included the important features of the Government Resolution on the new package scheme of incentives(PSI) 2013. The article gives a brief description on the various incentives available to the MSME, Large, Mega and Ultra Mega units in the state. Also, we have tabulated the various implementation agencies for the PSI 2013.

We have given a District profile for Nandurbar, a region with immense potential; where MIDC is promoting its new textile hub. Also, included in the edition are — An industrial profile for Akola. Industries sectoralclassification as per the net value added and the other investment related news in the state.

We hope that these articles are informative and help you in giving a perspective for your business strategies.

For any feedback or query, please write back to us at mahaconnect@midcindia.org. Also, visit our website www.midcindia.org

Warm Regards,Bhushan Gagrani (IAS) CEO, MIDC.

Knowledge Partner

Government of Maharashtra Contents

Cover Story of the Month

In order to promote an investor friendly ecosystem, and bring about uniform regional growth in the State; the Government has been providing a bulk of incentives toIndustrial Units in the State since 1964 under a Scheme popularly known as the “Package Scheme of Incentives.”….Read more on Page 3

Package Scheme of Incentives 2013

Nandurbar — Region with Potential

Nandurbar district belongs to Nashik Division of Maharashtra State situated between 73.31 and 74.32 East longitude and 21.03 and 22.00 North latitude. The district is surrounded by Madhya Pradesh State on the North, Dhule District on the East,…..Read more on Page 4

District Profile

Industrial Estate Profile — Akola

The district of Akola lies in the western parts of the Nagpur Division of Maharashtra State and is surrounded by Amravati district in the north and north-east, Yeotmal in the south-east, Washim in the south and Buldhana in the west. Thedistrict is major producer of Cotton amongst other crops. …read more on page 5

Important characteristics of Industries

Industries

Industrial Estate Profile

Feedback

Many thanks for your message of for the latest newsletter which I have read with much interest.…....Read more on page 7

Your Thoughts………………………….

MAHACONNECTMay, 2013

DSK Motorwheels mulls setting up an assembly line

Super-bike retailer DSK Motowheels is planning a new manufacturing facility near Pune. The company has identified 100 acres at Shalgaon, 200 km from Pune as the location for the unit. Construction of the INR 300-350-crore.…..Read more on page 6

Investment Update

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Tt

Package Scheme of Incentives 2013

Government Resolution

In order to promote an investor friendly ecosystem, and bring about uniform regional growth in the State; the Government has been providing a bulk of incentives toIndustrial Units in the State since 1964 under a Scheme popularly known as the “Package Scheme of Incentives.”

The State has recently declared the new Industrial Policy -2013 to ensure sustained industrial growth through various innovative initiatives so as to further improve the conducive industrial climate in the State and to provide global competitive edge to the industries in the State. The policy envisages grant of fiscal and non-fiscal incentives to the Industrial units with a view to helping the units achieve higher and sustainable economic growth with emphasis on balanced regional development and employment generation through greater Private and Public Investment in industrial sector. It is therefore necessary to amend the Package Scheme of Incentives-2007, in the light of the Industrial Policy-2013 and introduce a new “Package Scheme of Incentives 2013”, containing details of eligibility criteria, quantum of incentives and monitoring mechanism for administering the incentives during the period up to the 31st March, 2018.

Government Resolution Salient FeaturesIn supersession of the Package Scheme of Incentive –2007, which shall expire on the 31st March, 2013, the Government is pleased to accord approval to the new “Package Scheme of Incentives -2013” (PSI-2013) which will come into effect on the 1st April 2013 for a period of five years. The detailed provisions of the PSI-2013 are as follows:-

Applicability of PSI-2013Period of Operation of PSI-2013 —The PSI -2013, as may be amended by the Government from time to time, shall remain in operation from the 1st April 2013 up to 31st March,2018 .

Coverage under the PSI – 2013 —The following categories of Eligible Industrial Units in the Private Sector, Co-operative Sector, Central Public Sector, State Public Sector/ Joint Sector shall be eligible to be considered for incentives under the PSI- 2013 —

i) Industries listed in the First Schedule of the Industries (Development and Regulation) Act, 1951, as amended from time to timeii) Manufacturing Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006. (MSMED Act, 2006)iii)Information Technology Manufacturing Units registered with the Directorate of Industries or the Maharashtra Industrial Development Corporation (MIDC) or the Development Commissioner, SantacruzElectronic Export Processing Zone (SEEPZ) or Software Technology Parks of India (STPI) in the State.iv) Bio-technology Manufacturing Units as specified by the Government from time to time, which are outside

MAHACONNECTMay, 2013

the purview of any registering authority mentioned above.v) Cold Storagesvi) Mechanized Food/Agro Processing Industries in the following sectors:

• Dairy, Fruit and Vegetable Processing.• Grain Processing.• Fish Processing.• Consumer foods including Packed foods.• Non alcoholic beverages from fruits and

vegetablesvii) Central Public Sector Units which satisfy the qualifying criteria (as mentioned in the Para 2.2 of the GR No.: PSI -2013/ (CR- 54 )/IND-8)

Classification of Areas for PSI-2013 :-For the purposes of the PSI- 2013, detailed taluka wise classification of different areas of the State as Group, A /B/ C/ D/ D + etc., on the basis of their level of industrial development shall be as given in Annexure-I to this G.R. where —(i) Group A: Denotes Industrially developed areas(ii) Group B: Denotes Areas where some industrial development has taken place, but are less developed than the areas under Group A(iii) Group C: Denotes Areas, which are less developed than those covered under Group B(iv) Group D: Denotes the lesser-developed areas of the State, not covered under Group A/ Group B/ Group C. (v) Group D+: Denotes the least developed areas, not covered under Group A/Group B/Group C/Group D. (vi) No Industry District: Denotes District having no industries and not covered under Group A / B/ C/ D & D+ . vii) Naxalism Affected Area : Denotes Area affected by naxalism, as described in GR No NAVIKA-2008/C.R. 209/Ka. 1416 Dated 31.5.2009 ( Annexure II)

Type of Project/Unit

Taluka/ Area Classification

Minimum Fixed CapitalInvestment (in INR Crore)

Minimum Direct Employment (in Nos.)

Mega A&B 750 1500

C 500 1000

D& D+ 250 500

No Industry District & NaxilismAffectedArea

100 250

Ultra Mega

Entire State

1500 3000

Provided that -a) Mega projects based on employment criteria shall be required to maintain the qualifying direct employment throughout the year and 75% of such employees should be local persons. If the employment criteria is not maintained in any month of the year for which Industrial Promotion Subsidy is claimed, then Industrial Promotion Subsidy shall not be admissible for such year. b) Minimum Direct Employment prescribed in the table above should be created within a period of two years from the date of commercial production. c) The investment in Captive Power Plant shall not be considered for determining the qualifying criteria for eligibility as Mega Project/Ultra Mega Project.

Fiscal Incentives under the Mega/Ultra Mega Project Scheme

Category of Industrial Units

Area Implementing Agency

a) Micro & Small Manufacturing Enterprises b) Cold Storages and processing units mentioned in Para No. 1.2 (v) & (vi) wherein investment in equipments is at par with Micro and Small Manufacturing Enterprises

Mumbai and Mumbai Suburban Areas

The Joint Director of Industries (Mumbai Metropolitan Region) [JDI (MMR)]

All Other Districts

District Industries Centre (DICs)

a) Medium Manufacturing Enterprisesb) Cold Storages and processing units mentioned in Para No. 1.2 (v) & (vi) wherein investment in equipments is at par with the Medium Manufacturing Enterprises as defined in the MSMED Act, 2006.

Mumbai and Mumbai Sub-urban Districts

The Joint Director of Industries (Mumbai Metropolitan Region) [JDI (MMR)]

RegionsThe Regional Joint Directors of respective Regions

Nanded Sub-Region

Superintending Industries Officer, Nanded Sub –Region

a) Large Scale Industries (LSI) / Mega Projects /Ultra Mega Projectsb) Cold Storages and processing units mentioned in Para No. 1.2 (v) & (vi) where in the investment in equipment is more than the medium manufacturing enterprises

Entire State

Directorate of Industries, Government of Maharashtra

Implementing agencies for PSI-2013

Taluka

Ceiling as a % of Fixed Capital Investment

No. of Years

MSME LSI MSME LSI

A - - 7 7

B 20 - 7 7

C 40 30 7 7

D 70 40 10 7

D+ 80 50 10 7

No industry District

90 70 10 7

NaxalismAffected Area

100 80 10 7

Financial incentives for MSMES/LSIS under PSI-2013

For further information, please visit the website www.maharashtra.gov.in

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SoilThe soil can be divided into 3 zones, which are as under:

Zone No. 1 : Akarani block, Western part of Navapurblock and Southern part of Nandurbar block. This zone consists of light shallow and sandy soil. It is good for Kharif crope i.e. for Bajra, Kharif Jawar, Groundnuts and Cotton, etc.

Zone No. 2 : Eastern part of Nandurbar, Shahada, Navapur Tahsil. These zones consist of medium quality soil, which is useful for minor irrigation.

Zone No. 3 : This zone consist of black cotton soil on the basin of Tapi river. Its water holding capacity is quite

good. Hence long duration crops are preferred. Part of Nandurbar & Shahada Tahsil is covered in this zone.

Proposed Textile HubIn order to boost the textile sector of the state, the MIDC plans to setup a textile unit in the Nandurbarregion. MIDC aims to leverage on the launch of the state’s textile policy 2012, the availability of the natural raw materials and presence of ports in the vicinity. MIDC in association with NEERI and IIT Bombay plans to establish Common Effluent Treatment Plants (CETP) using innovative technology. It aims to • Recycle of water• Safer and effective disposal of effluents• Reducing the burden in forms of HRTS• Techno Commercially acceptable

Nandurbar district belongs to Nashik Division of Maharashtra State situated between 73.31 and 74.32 East longitude and 21.03 and 22.00 North latitude. The district is surrounded by Madhya Pradesh State on the North, Dhule District on the East, Gujarat State in the West and Nashik district on the south. The district has a total area of 5034.23 sq. kms., which forms 1.62% of the total geographical area of Maharashtra State.

Nandurbar district has 6 tehsils viz. Akrani, Akkalkuwa, Taloda, Shahada, Nandurbar and Nawapur. Nandurbaris the district Head Quarter. At the district level, Collector is the Administrative Chief and at Tehsil level, Tehsildars are looking after the administration as per Collector’s instructions. For rural development, Chief Executive Officer of Zilla Parishad and at block level, Block Development Officers are incharge of the administration. Nandurbar district has 2 sub-divisions as mentioned below: (A) Nandurbar :

i) Nandurbarii) Navapur

(B) Taloda : i) Shahadaii) Talodaiii) Akkalkuwaiv) Akrani

The district can be divided into two broad physiographic parts. One is hilly terrain of Satpudaranges prominently dominated by tribals i.e. Akrani, Akkalkuwa and Toloda. Second part is Tapi river basin, which is comparatively more fertile and having good irrigation facilities, covered by the three remaining Tahsils i.e. Shahada, Nandurbar and Navapur.

The district has a dry climate in general. The temperature attained is of typical of tropical temperature zone. The summer is intolerably hot since March to June every year. The average rainfall in the district is about 888 mm and it is not uniform in all parts of the district. The temperature in the district ranges from 42.8 degree Celsius in summer to 10.6 degree Celsius in winter.

The principal river in the district is Tapi River, which flows through Shahada and Nandurbar block and other rivers Vir and Gomai flows through Shahada block.

Minerals of economic value are not found in the district. Mud used for making bricks, sand and metal stone used for construction purpose are the only important minerals found in Nandurbar district.

The total area under the forest is 104 Thousand hectares which is 20.78% of the total geographical area of the district. The maximum forest area is in Akkalkuwa taluka i.e. 42.34%. It is therefore, essential to have a massive need based and time bound programmesof afforestation and tree planting. The forest produce includes Custard apple, fuel wood, grass, gum, tenduleaves, bamboo, etc.

Nandurbar — Regionwith Potential

District Profile

Industries

Major Sector/s

Energy, Biotechnology, Sugar, Dairy, Spinning mill

MIDC Zones1 ( 62.44 Ha.)Nandurbar-Navapur

Geographical Location21°N to 22.03°N Latitude, 73.31°E to 74.32°E; is located in northern region of Maharashtra

Area 5961 sq. km.

District headquarter Nandurbar

Population 16.46 (in lakhs)

Literacy rate 63.04%

GDP 8214 (in INRCrore)

Per capita income(in INR) 52923

Airports/ Nearest Nearest International airport – Pune

Seaport/ Nearest Mumbai

Roads 4554 km.

Railways 90 Km

Major Crops Cotton,Sorghum,Paddy, Millet, Maize, Chick Pea, Soybean

Key Technical Institutions 9 ITIs and ITCs

Yashwant Lake in Nandurbar district

Unapdev - Hot Water Spring

Osmanabad District in Maharashtra

MAHACONNECTMay, 2013

TourismToranmal is the second coolest hill station in Maharashtra state and is near Shahada (approx. 40 km). It is the second highest place in Maharashtra. It has a natural lake called Yashwant Lake which is natural and full of flowering lotus. IUnapdev is a pleasant picnic point in Shahada tehsil. It has a permanent natural hot water source, and it flows throughout the year from a structure in the shape of a cow's mouth.

Land

333.18 Ha. (under acquisition)

Water Supply

• Prakasha Barrage • MIDC has applied for

reservation of 5.63 mm3 water

• Proposed area is in the catchment area of River Tapi

Surat

Mumbai

Nashik

Indore

Nandurbar

Aurangabad

Vadodara

CETP Capacity — 22 MLD

For further information on land application, please visit https://services.midcindia.org/Services/ SrvLand.aspx

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Plot holder name Type of industry

M/s B. K Industries Food Processing (Oil products)

M/s Noble Grain Industries Food (Oil Mills)

M/s Narayan dall mills Food (Dal Mills)

M/s Pure pulses Corporation. Food (Dal Mills).

Location ProfileIndustrial Estate Profile —Akola

Industrial Estate Profile

Regional OfficeC.F.C Building, MIDC Industrial Area Badnera Road Amravati-444601. Tel : 0721-521312/520998,9823166426

Fax : 0721-520507Email : roamravati@midcindia.org

Officers in Charge:Shri A.N Choudhary (Regional Officer)Mr.. G Murumkar (Area Manager)

ClassificationD+

The district of Akola lies in the western parts of the Nagpur Division of Maharashtra State and is surrounded by Amravati district in the north and north-east, yeotmal in the south-east, Washim in the south and Buldhana in the west. The district is major producer of Cotton amongst other crops.

Geographical Features

General Information

Site Connectivity

Social Infrastructure

Longitude : 77° 10′ 0″ East Latitude : 20° 30′ 0″ North Altitude : 282(Metres), 925 ( feet) Temperature Summer Average from 28 - 48 °C Winter Average from 10 – 23°C. Rainfall : Average rainfall of 850 mm Rock Available: Basalt Rock

MIDC has provided the infrastructure to facilitate industrial development and every assistance is provided for the region’s growth. The park is located on 661.43 hectares of land situated 8 km from Akola city.

By Road:- Akola industrial area is Located on Dhule – Nagpur (NH - 6), 8 km from Akola city, 86 km from Amravati city, 138 km from Buldanacity, 241 km from Nagpur city, 493 km from Pune city and 639 km from Mumbai cityBy Rail:- Nearest railway Station is Akola (10 km), Amravati (87 km), Nagpur (240 km). Pune (492 km)Airports:- Nearest airstrip -Amravati (86 km), Nearest Domestic and international airport - Nagpur (241 km) Water Ports:- Nearest port Jawaharlal Nehru Port Trust (630 km).

Colleges:- Government MediaclCollege (Akola), Shree Shivaji College of Arts & Commerce (Akola), JantaHomeopathic College (Akola), RLT College Of Engineering (Akola).

Hospitals:- Kherde's Hospital (Akola), Ozone Multispecialty Hospital ( Akola), Joshi Hospital (Akola), Lady Harding Hospital (Akola)

Schools:- Mount Caramel Hospital (Akola), Holy Cross Convent High School (Akola), Bharat Vidyalaya(Akola).

Hotels:-Hotel Venus International (Akola), Hotel Regency (Akola), Hotel Central Plaza (Akola). Hotel Vaibhav (Akola).

Water

Fire Services

Internal Road Connectivity

Electricity

Telecommunications

Permanent Water Supply Scheme of 11.25 MLD maximum capacity through Maha Dam has been implemented by MIDC

Fire station is available in the vicinity and is operational

Plots are divided into small, medium & large sizes and with respect to it the following internal road has been provided . The roads are mostly 45 M, 30 M and 25 M wide which are well connected through out the industrial area.

Maharashtra State Electricity Distribution Company Ltd (MSEDCL ) provides electricity to major industrial areas. Sub-stations within the industrial area having capacity of 33 KV has been installed.Existing substation - Power sub station having capacity of providing 33 KV (within industrial area) has been installed. Power is made available through Express Feeder to the industrial area. Additional supply of Power can be made available as per the demand. Power Generating Capacity -100 MVA

The site is in close proximity to major cities and district with all major telecom providers existing having a good network connectivity.

Infrastructure Availability Major Players in Jalna

MAHACONNECTMay, 2013

Jalna industrial Area in Maharashtra

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Pune-based DSK Motowheels, part of the diversified INR 5,000-crore DSK group, holds the exclusive rights to assemble and distribute the Korean brand of super bikes (Hyosung) in India

“The company has identified 100 acres at Shalgaon, 200 km from Pune. Construction of the INR 300-350-crore project is expected to start in three to four months and the plant will start assembling bikes in 10 months”, said Shirish Kulkarni, Managing Director

DSK Motorwheelsmulls setting up an assembly line

Investment Update

Super-bike retailer DSK Motowheels is planning a new manufacturing facility near Pune.

The company has identified 100 acres at Shalgaon, 200 km from Pune. Construction of the INR 300-350-crore project is expected to start in three to four months and the plant will start assembling bikes in 10 months, said Shirish Kulkarni, Managing Director, at the launch of the company’s 25 retail showrooms in the country.

Pune-based DSK Motowheels, part of the diversified INR 5,000-crore DSK group, holds the exclusive rights to assemble and distribute the Korean brand of super bikes (Hyosung) in India.

DSK acquired the super-bike business from GarwareMotors in June last year. Since then, it has sold 1,200 bikes, clocking INR 42 crore. DSK also acquired Garware’s assembling facility in Wai near Pune. This facility assembles around 250 bikes a month (10 bikes in a shift).

After the Shalgaon facility begins operations, DSK plans to convert the Wai facility into a warehouse. The new facility is expected to assemble 18 bikes a shift. Exports could be looked into in the future.

At present, most components are imported from South Korea, through S&T Motors, which owns the Hyosung brand. Over a period of time, DSK expects to get into full-fledged manufacturing and sourcing components locally.

Whether the Korean company S&T Motors will look at investing in the Indian venture, Kulkarni said this is unlikely to happen now.

The Hyosung range in India includes sports and cruiser bikes in the 250-700 cc range, priced Rs 2.8 -Rs 5.8 lakh. DSK is looking at introducing commuter bikes in the 125-150 cc range next year or in 2015.

Super-bikes are high-performance motorcycles used for adventure riding, not daily commuting. This segment is growing at 25 per cent year-on-year. The major players are Harley-Davidson, Honda and Yamaha.

Important characteristics of Industries

Industries

As per the latest figures published through the economic survey of Maharashtra 2012-13, the net value added by the industries has been derived to be at INR 152,238 crore.

The state industries has witnessed an increment of 29.15 per cent. The major push has been seen in the cotton ginning and cleaning sector, with increment of over 900% over the previous year.

The top three sectors Coke and refined petroleum, Chemicals and Chemical Products, and Machinery and Equipments together added to 44.4 per cent of the total net valued in the state.

Below is break up of the industry sub segments as per the net value added

MAHACONNECTMay, 2013

152328

Extraction of salt Wood and wood products

Tanning and dressing of leather Tobacco products

Paper and paper products Wearing apparel

Publishing and printing Cotton ginning, cleaning etc.

Other non- metallic mineral products Others

Office, accounting…Textiles

Furniture (not elsewhere classified) Other transport equipments

Motor vehicles, trailers Electrical machinery and apparatus

Food products and beverages Basic metals

Fabricated metal productsRubber and plastic products Machinery and equipments

Chemicals and chemical products Coke, refined petroleum products etc.

Total

Classification of the Important Characteristics of Industries as per the Net value added to the State Economy. All figures in INR Crore

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Dear Bhushan Ji,

Thanks a lot for sending newsletter of Maharashtra Government to me.

And I visited the link which you sent to me.Japanese enterprise will have the interest of the business opportunity in your country in near future.

We will keep to watch your country from now on.

Best Regards,Y.TsuruokaApogee Japan, Inc.

Feedback

Disclaimer

Maharashtra Industrial Development Corporation (“MIDC”) has engaged Ernst & Young Pvt. Ltd. ("Ernst & Young") to prepare this document and the same has been prepared by Ernst & Young in consultation with MIDC. This document is for information purposes only. While due care has been taken during the compilation of this document to ensure that the information is accurate to the best of Ernst & Young's knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Ernst & Young does not assume any liability or responsibility to any person for the outcome of decisions taken by such person as a result of any reliance placed on this presentation. Ernst & Young shall not be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation. © 2012All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by MIDC and the Authors. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of MIDC

Government of Maharashtra

Knowledge Partner

Mercedes-Benz India at Chakan near Pune

Maharashtra Industrial Development CorporationUdyog Sarathi Mahakali Caves Road,

Andheri(E), Mumbai-400 093. Board Numbers: 91-022-26870052 / 54 / 73,

Fax: 91-022-26871587, E-mail: mahaconnect@midcindia.org,

feedback@midcindia.org

Dear Sir,

Went through the Newsletter with interest. Heartening to see the highstandards of the current issue and the insight that it provides into theindustrial growth in the state.

Thank you and best wishes.

Subrata DasCounsellor,Embassy of India,Kathmandu, Nepal

MAHACONNECTMay, 2013