Embed Size (px)
Citation preview
CHAPTER - 3
PROFILE OF MAHARASHTRA AS AN
INDUSTRIAL STATE
Chapter - 3
Profile of Maharashtra as an Industrial State
3.1 Introduction
3.2 History of the Maharashtra
3.3 Geography of the Maharashtra
3.3.1 Rivers
3.3.2 Dams
3.3.3 Climate
3.3.4 Soil
3.3.5 Forest Cover
3.4 Minerals
3.5 Population
3.6 Human Development Index
3.7 Education and Social Development
3.8 Revenue Divisions
3.9 Gross State Domestic Product
3.10 Tourism
3.11 Infrastructure
3.12 Transportation
3.12.1 Roads
3.12.2 Railways
3.12.3 Waterways
3.12.4 Air Ways
3.13 Power
3.14 Principal Urban Agglomerations
3.15 Special Features of Maharashtra
3.16 Economy of the Maharashtra
3.17 Industries in Maharashtra
88
3.17.1 Types of Industries in Maharashtra
3.17.2 Spread of Industrialisation in Maharashtra
3.17.3 Industrial Sickness
3.18 Information Technology in Maharashtra
3.19 Special Economic Zones
3.20 Specialized Industrial Parks
3.20.1 Floriculture Park
3.20.2 Specialized Food Parks
3.20.3 Specialized Silver Zone
3.20.4 Specialized Textile Parks
3.20.5 Information Technology and Information
Technology Enabled Services (IT and ITES)
Parks
3.20.6 International Technology Parks
3.21 Foreign Direct Investment
89
Chapter - 3
Profile of Maharashtra as an Industrial State
3.1 Introduction
Maharashtra is a prominent State located in West India. The word
'Maharashtra' comes from Sanskrit words Maha meaning Great and Rashtra meaning
Nation, thus rendering the name Maharashtra (Great Nation). The location of
Maharashtra in India is shown in Fig. No.-3.1.
Fig. N0.-3.1: Location of Maharashtra in India
INDIA
NagBlanri
Andaman uiri Nicab v Island i
•
'# \
Source: www.en.wikipedia.org.
It is the second most populous (11,23,72,972) State after Uttar Pradesh and
third largest State (3,07,713 km^) by area in India according to 2011 census. The
State's geographical area accounts 9.36 per cent in area and 9.29 per cent in
population with respect to India. Maharashtra is one of the most industrialized States
90
of India; it occupies the western and central parts of the country and extends over the
Sahyadri mountains, along with Arabian Sea coastline in the west.
The sectoral composition of the State Domestic Product of Maharashtra has
been following the national trend of services led growth. With a potential in
agriculture, the State needs to explore opportunities in the secondary sector.
Maharashtra the industrial State in India occupies a significant position as far as the
manufacturing in the country is concerned from the colony region. Map of
Maharashtra with districts is shown in Fig. No.-3.2.
Fig. NO.-3.2: Map of Maharashtra
MAHARASHTRA NANDLRBAR
DHULI V"^ 7~^^ AMRAVATIV 7 JALGAON ^,^/ J f
V^ONDIA \ NAGPUR B I U N O ^ A
NASH IK f£.Uo4o/ y«>'«HJM^^ VAVATMAL^
VLPMBA iOMtAr
IflJle t'ruHqilfrAi R A / P U N E
> I •
; G
UA ^5
.i JALNA r^HINGOL^ ^ J t " ^ - GADCHMC'L
SOLAPUR
liilfnMADAW., 1
I
Source: www.maharashtraschools.co.in.
The major manufacturing industries located in Maharashtra include refined
petroleum products, other chemical products, basic products, manufacturing products,
musical instruments, sport goods, games and toys, spinning and weaving, cotton
textiles, other food products, sugar coca, chocolates, food processing, basic iron and
steel and motor vehicles. The State is well known for automobiles, chemical, sugar
and cotton textile industries. The principal industrial zone in Maharashtra is the
Mumbai-Thane-Pune belt, accounting for almost 60 per cent of the State's output.
91
Efforts are being made to promote other industrial area like Nagpur, Nashik,
Aurangabad, Solapur, Jalgaon, Raigad, Amravati and Ratnagiri by building the
necessary infrastructure and creating an environment conducive the industrial
development which atfracts multinationals as well as domestic companies.
3.2 History of Maharashtra
The Maratha Empire began to take root in the early 1?"' century and it was
laden by an ambitious King Raja Shivaji. Chhatrapati Shivaji Raje Bhosale was
crowned as a King of Western Maharashfra in 1674. In 1714, Shahu Peshwa Balaji
Vishwanath became the Prime Minister (Peshwa) of the Princely State in 1708. The
Peshwas played an important role in expanding the Maratha Empire in the Northern
and Cenfral India, from Punjab to Bengal and from Delhi to Tanjavore in Tamilnadu.
By 1760, the Maratha Empire spread across parts of Punjab, Haryana, Himachal
Pradesh, Uttaranchal, Uttar Pradesh, Orissa, Andhra Pradesh, Madhya Pradesh,
Chattisgarh and Kamataka. With the arrival and subsequent involvement of the
British East India Company in Indian politics, the Marathas and the British fought the
three Anglo-Maratha wars between 1777 and 1818, culminating in the annexation of
Peshwa-ruled territory in Maharashfra in 1819, which heralded the end of the Maratha
Empire. This Bombay Province included Sindh, Saurashtra, Gujarat, Western
Maharashfra and Kamataka. The British rule was marked by social reforms and an
improvement in infrastructure as well as revolts due to their discriminatory policies by
Governor Elphinsten and others. The struggle for independence took shape led by Bal
Gangadhar Tilak and the moderates like Justice Mahadev Govind Ranade, Gopal
Krishna Gokhale, Vinayak Damodar Savarkar, Firoz Shah Mehta and Dadabhai
Naurosji at the beginning of the 20* century. In 1942, the Quit India Movement was
called by Mahatma Gandhi which was marked by a non-violent civil disobedience
movement and strikes. Agarkar, Babasaheb Ambedkar, Mehta were involved in the
social reforms and some were engaged in education movement.
After India's independence in 1947, the princely States were integrated into the
Indian Union, and the Deccan States including Kolhapur were integrated into Bombay
State, which was created from the former Bombay Presidency in 1950. In 1956, the
State Reorganization Act reorganized the Indian States along linguistic lines and
Bombay Presidency State was enlarged by the addition of the predominantly Marathi-
speaking regions of Marathwada from erstwhile Hyderabad State of Nizam and
Vidarbha region from Madhya Pradesh. On 1 ' May 1960, following mass protests for
92
the creation of a separate Marathi-speaking State and the subsequent deaths of 105
protesters, Maharashtra came into existence when Bombay Presidency State was spHt
into the new Unguistic States of Maharashtra and Gujarat and Mumbai became the
capital of united Maharashtra in May 1960. Yashwantrao Chavan became the first
Chief Minister of the Maharashtra State.'
3.3 Geography of Maharashtra
Maharashtra covers an area of 3,07,731 km^ or 9.36 per cent of the total
geographical area of the country, and is the third largest State after Rajasthan and
Madhya Pradesh in India. The State extends between the latitudes 15.6° North and
22.1° North and longitudes 72.6° East and 80.9° East. It is confined by the States of
Gujarat to the northwest, Madhya Pradesh to the north, Chhattisgarh to the east,
Andhra Pradesh to the southeast, Kamataka to the south and Goa to the southwest.
The Union territory of Dadra and Nagar Haveli sandwiched in Maharashtra and
Gujarat. The Arabian Sea makes up Maharashtra's west coast lying along 720 km.
coastline. The Western Ghats, also known as Sahyadri, are a hilly range running
parallel to the western coast from Thane district to the north up to Goa to the south.
The average height of Sahyadri mountain range is of 1,200 m. from Mean Sea Level
(MSL). The Kalsubai, a peak in the Sahyadris, in Ahmednagar district, is the highest
elevated point in Maharashfra, which is 1,646 m. high from MSL.
To the west of these hills lie the Konkan coastal plains, 50-80 km. in width
and 720 km. in north to south length. To the east of the Ghats lies the flat Deccan
Plateau sloping towards the eastward made from basalt igneous rock. The Satpura
range lies in the northern border of the State, and the Bhamragad- Chiroli-Gaikhuri
ranges on the eastern border form physical barriers preventing easy movement. These
ranges also serve as natural limits to the State.
3.3.1 Rivers
Many peninsular rivers are having origin in Western Maharashtra in Sahyadri
range notable among them being Godavari and the Krishna. The rivers, along with
their tributaries, flow eastwards into the Bay of Bengal, irrigating most of central and
eastem region of Maharashtra. The Ghats are also the source of numerous small
rivers, which flow westwards in Konkan region pouring into the Arabian Sea. To the
north of the State, the rivers Tapi and Narmada flow westwards into the Arabian Sea,
irrigating most of northern Maharashtra. To the east are major rivers like Vainganga
that flow to the south and eventually to Bay of Bengal. Godavari River is the longest
93
river in South India and second most important river after Ganga in India. River
Godavari is the most important river of Maharashtra. Godavari River rises near
Nashik in Maharashtra at an elevation of 1,067 m. and flows for a length of 1,465 km.
before out reaching into the Bay of Bengal. The main tributaries of the river are the
Parvara, Puma, Manjra, Penganga, Wardha, Wainganga, Indravati and Kolab.
Godavari Basin extends over an area of 3,12,812 km^, which is nearly 9.5 per cent of
the total geographical area of the country. The basin lies in the States of Maharashtra
(1,52,199 km^), Andhra Pradesh (73,201 km^), Madhya Pradesh (65,255 km^), Orissa
(17,752 km^) and Kamataka (4,405 km^). Godavari River has a catchments area of
31.3 m. ha. This river basin consists of large undulating plains divided by low flat-
topped hill ranges. The important soil types found in the basins are black soils, red
soils, lateritic soils, alluvium, mixed soils and saline and alkaline soils.
Krishna River is having source in the Western Ghats at an elevation of about
1337 m. just north of Mahabaleshwar, about 64 km. fi-om the Arabian Sea and flows
for about 1400 km. and outfalls into the Bay of Bengal. The principal tributaries
joining Krishna are the Ghataprabha, Malaprabha, Bhima and Tungabhadra. Krishna
Basin extends over an area of 2,58,948 km^, which is nearly 8 per cent of total
geographical area of the country. The basin lies in the States of Kamataka (1,13,271
km^), Andhra Pradesh (76,252 km^) and Maharashtra (69,425 km^). Krishna River has
a catchments area of 25.9 m. ha. Most part of this basin comprises rolling and
undulating country except the westem border, which is formed by an unbroken line of
ranges of the Westem Ghats. The important soil types found in the basin are black
soils, red soils, laterite and lateritic soils, alluvium, mixed soils, red and black soils
and saline and alkaline soils.
Tapi Basin extends over an area of 65,145 km^, which is nearly 2.0 per cent of
total geographical area of the country. The basin lies in the States of Maharashtra
(51,504 km^), Madhya Pradesh (9,804 km^) and Gujarat (3,837 km^). Tapi River rises
near Multai in the Betul district of Madhya Pradesh at an elevation of about 752 m.
and flows for about 724 km. before out falling into the Arabian Sea through the Gulf
of Cambay. Its principal tributaries are Puma, Gima, Panjhra, Vaghur, Bori and Aner.
The basin consist plain areas, which are broad and fertile, suitable for cultivation. The
principal soils found in the basin are black soils, alluvial clays with a layer of black
soil above. Narmada River originates at Amarkantak in Madhya Pradesh in Maikal
Range. It flows towards Westside mnning through Maharashtra and Gujarat and
94
pouring its water in the Arabian Sea near Bhadoch in Gujarat. Konkan rivers are
having small course and originates in sahyadri's and pouring water into Arabian Sea.
These rivers are over flooded in rainy seasons and non-perennial in nature.
3.3.2 Dams
There are many dams constructed across the rivers in the State mostly at their
upper courses. These dams provide not only water for irrigation but also for drinking
and industry purpose. The cost of construction of dams is so high and many pros and
cons arise about dams. In spite of that the dams required to store water for longer
period and supply to the regions wherever required. The frequency of the dams is
highest in the State in India. Such dams are constructed on Mula River, Bhima River,
Krishna River, Godavari River and a number of other rivers. These dams are built on
different rivers in order to meet the drinking water requirements of the nearby towns.
Many dams attracted tourists has beautiful environment in virgin nature. There are
hydroelectric power plants located at some of the dams. In total, there are almost
1,821 significant dams in Maharashtra State.
There are many multi-State irrigation projects in development, including
Godavari River Basin Irrigation Projects. The plateau is composed of black basalt
soil, rich in humus. This soil is well suited for cultivating cotton, is often called black
cotton soil. Northern Maharashtra boosts for the production of bananas. Jalgaon
district is the largest producer of bananas in India. Nashik is famous for grapes where
irrigation and soil is well suited. Western Maharashtra, which includes the districts of
Nashik, Ahmednagar, Pune, Satara, Solapur, Sangli and Kolhapur, is a prosperous
belt famous for its sugar factories. Farmers in the region are economically well off
due to fertile land, irrigation and good infi-astructural facilities.
Mula dam is constructed across Mula River in Ahmednagar district which is
the most drought-prone district in Maharashtra. This dam was constructed in 1974 and
it is the biggest dam in Ahmednagar district. Koyana is the prime dam on Koyana
River which is also called as Jeevan Dayini (Lifeline) of Maharashtra State, because
the biggest hydel power plant was erected on Koyana Project. Jaikwadi dam is
situated very close to Paithan near Aurangabad. This dam is built on Godavari River
and very much important for Marathwada region. Ujani dam is built on the Bhima
River in Pune district. It possesses a vast catchments area. Mulshi, Panshet,
Varasgaon, Pavana, Chas Kaman, Bhama Askhed, dams are constructed in Pune
district. Mulshi is a private dam and power generated by Tata Power Company
95
provides electricity to the capital city Mumbai. Bhandardara is one of the oldest dams
in Ahmednagar district and is noted for its tourism value. Its height is 750 m. from
mean seal level. Vaitama dam is segregated into three partsin Thane district. As per
the flow of the Vaitama River, the three parts of this dam are Upper Vaitama Dam,
Lx)wer Vaitama Dam and Middle Vaitama Dam. The dam is regarded as the major
source of water in the city of Mumbai. Gima dam on Godavari River, Nandur-
Madhmeshwar dam, Kolkewadi dam in Konkan region, and many other dams are
constmcted on many rivers under the Krishna, Godavari, Tapi Basin Development
Projects. All major projects are multipurpose project useful for drinking water, for
industry, irrigation purpose, generation of electricity, fishery and for tourism spot.
3.3.3 Climate
Maharashtra has typical monsoon climate, with hot, rainy and cold weather
seasons. Tropical conditions prevail all over the State, and even the hill stations are
not that cold. Dew, frost, hail can also be experience sometimes according to the
seasonal weather. March, April and May are the hottest months. During April and
May thunderstorms are common and temperature varies between 22°C to 42°C during
summer season. Monsoon rainfall starts from the first week of June. July is the wettest
month in the State, while August too gets substantial rain. Monsoon starts its retreat
with the coming of September from the State. Cool dry spell, with clear skies gentle
breeze and pleasant weather prevails from November to Febmary. But the eastem part
of Maharashtra sometimes receives some rainfall from north-east monsoon winds.
Temperature varies between 12°C to 34°C during winter season. Rainfall in
Maharashtra differs from region to region. Thane, Raigad, Ratnagiri and Sindhudurg
districts, receive heavy rains of an average of 200 centimeters annually. But the
districts of Nashik, Pime, Ahmednagar, Dhule, Jalgaon, Satara, Sangli, Solapur and
parts of Kolhapur get rainfall less than 60 centimeters. Rainfall particularly
concentrates to the Konkan and Sahyadrian Maharashtra. Marathwada receives less
rainfall that is about less than 50 cm. However, under the influence of the Bay of
Bengal, eastem Vidarbha region receives good rainfall in July, August and
September.
3.3.4 Sou
The soils of Maharashtra are residual, derived from the igneous basalts. The
soil in the river basins of Godavari, Bhima, Krishna and Tapi has a deep layer of
fertile black basalt soil, which is rich in humus. This soil is the best suited for cotton
96
production and is often called black cotton soil. The rest of the semi-dry plateau of
Deccan has a medium layer of black regur soil which is clayey and moisture retentive,
rich in iron but poor in nitrogen and organic matter. The higher plateau region has
murmad soils, which contain more gravel. The peaks of the Sahyadri Mountains, the
districts of Ratnagiri and Sindhudurg and the western regions of Kolhapur and Satara
have a reddish lateritic soil, it is locally called Jambhi. The Konkan coast has sandy
loam soil. Farther away towards the east in Vidarbha region, with a better mixture of
lime, the morand soils form the ideal Kharip zone. North Konkan, eastern Vidarbha
region like Bhandara, Gondia and Gadchiroli districts have reddish and yellowish soil.
3.3.5 Forest Cover
In Maharashtra, there is a variety of climate and soil. Therefore vegetation
cover is distinguishing in nature. Western Ghats area comprises important Tropical
Evergreen Forests. For this reason, the region faces great conservation concern.
Western Ghats is a land of eco-diversity. The State is known for dissimilar climatic
conditions and dynamic topography. It's rich flora and favma perfectly reflects the
diversity of climate and the geography. The topography of the region varies from arid
desert and tropical rain forest to mountain range over 4000 feet in altitude. Western
Ghats face a threat from growing population and unabated development measures. It
has seen a major increase in open forest due to the degradation of dense forest. This
increasing trend has been perpetually affecting the forests in a negative way for the
past 25 years. The forests cover is approximately one fifth of Maharashtra's
geographical area. This is about 20.1 per cent. In 2009, India State of Forest Report
Stated, Maharashfra's recorded forest area is 61,939 km^. Of which, 79.47 per cent
constitute reserved forests while protected forest's make-up 13.23 per cent. Un-classed
Forests comprise 7.30 per cent of the total forest area. Trees cover an area of about
9,466 km which is 3.08 per cent.
A number of wildlife sanctuaries. National Parks and Project Tiger reserves
have been developed in the State to conserve its rich bio-diversity. Maharashtra's
forests are a house to tigers, panthers, bison, deer and antelopes, wild boars, bears,
blue bull, great Indian bustards. In addition to these Maharashtra also has 35 wildlife
sanctuaries. Forests in Maharashtra are a source of major products like timber,
firewood. They even offer minor products like bamboo, tendu leaves and gum.
Maharashtra's forest production greatly contributes to the State's revenue. On a larger
97
note, the forests are of great value to the country's GDP. Most importantly, these
forests help in providing source of income to the localities.
3.4 Minerals
Maharashtra is not known for minerals at large extent. Maharashtra's main
minerals are coal, iron ore, limestone, manganese and bauxite. Most of the minerals
are transported from outside the States. Eastern Vidarbha, southern Kolhapur and
Sindhudurg regions are minerals bearing zones in the State. The Chandrapur,
Gadchirali, Bhandara and Nagpur Districts form the main mineral belt, with coal and
manganese as the major minerals and iron ore and limestone as potential wealth. The
Ratnagiri coast contains sizeable deposits of illimenite and iron ores.
Fig. No.-3.3: Major Mineral Production in Maharashtra
Year 2000-01
I Coal • Limestone
I Manganese ore • Bauxite
Year 2009-10
I Coal • Limestone
Manganese ore • Bauxite
Source: Appendix - A.
The production of coal in 2009-10 was 28,754 thousand tonnes valued of Rs.
4,80,812 lakhs. This coal is found only in Vidarbha region. The coal is increased by
34.29 per cent from 2000-01 and value increased more than double. The value of coal
in 2000-01 was Rs. 2,10,192 lakhs. Manganese is also major mineral found in
Maharashtra. In 2000-01, the production of manganese was 363 tonnes and its value
was Rs. 6,280 lakhs. It rose up to 871 thousand tonnes with value of Rs. 44,270 lakhs
in 2009-10. Limestone production was 14,827 thousand tonnes with a value of Rs.
9,595 lakhs. Its production and value was doubled in study period. Bauxite is also
found in the State having production of 1,814 thousand tormes worth Rs. 5,369 lakhs.
Dolomite is found very meager at 86 thousand tonnes production at valued of Rs. 150
lakhs. Silica sand, fluorite, Laterite is found having totaled worth of Rs. 724 lakhs.^
(Appendix - A and Fig. No.-3.3)
98
3.5 Population
The official census 2011 of Maharashtra has been conducted by Directorate of
Census Operations in Maharashtra. As per details from Census 2011, Maharashtra has
population of 11.23 crores, an increase from 9.69 crores in 2001 census. Total
population of Maharashtra as per 2011 census is 11,23,72,972 of which male and
female are 5,83,61,397 and 5,40,11,575 respectively. According to 2001 census, the
total population was 9,68,78,627 in which males were 5,04,00,596 while females
were 4,64,78,031. The total population growth in this decade was 15.99 per cent while
in previous decade it was 22.57 per cent. The population of Maharashtra forms 9.29
per cent of India's population in 2011 and in 2001, the figure was 9.42 per cent. Total
Child population of the State was 1,28,48,375 in 2011 and 1,36,71,126 in 2011
census. Surprisingly, there is 4.61 per cent decreased in the child population of the
State.
Table No.-3.1: Population Statistics of Maharashtra
Sr. No.
1
2
3
4
5
6
7
8
Description
Population
Population Growth (%)
Per centage with India (%)
Male Population
Female Population
Sex Ratio
Child Sex Ratio
Density
Total Child Population (0-6 Age)
Male Population (0-6 Age)
Female Population (0-6 Age)
Literacy (%)
Male Literacy (%)
Female Literacy (%)
Total Literate
Male Literate
Female Literate
2001
96,878,627
22.57
9.42
50,400,596
46,478,031
922
953
315
13,671,126
7,146,432
6,524,694
76.88
85.97
67.03
63,965,943
37,184,963
26,780,980
2011
112,372,972
15.99
9.29
58,361,397
54,011,575
946
883
365
12,848,375
6,822,262
6,026,113
82.91
89.82
75.48
82,512,225
46,294,041
36,218,184
Source: Census of Maharashtra, 2001 and 2011.
This is the major significance of the family planning which Government and
other organizations has been implemented and also with progress in literacy (Table
99
No.-S.l). Maharashtra has seen upward trend in Uteracy. It is 82.91 per cent as per
2011 population census. The male literacy recorded as 89.82 per cent while female
literacy recorded 75.48 per cent. In 2001, literacy rate in Maharashtra stood at 76.88
per cent of which male and female were 85.97 per cent and 67.03 per cent literate
respectively. In actual numbers, total literates in Maharashtra stands at 8,25,12,225 of
which males were 4,62,94,041 and females were 3,62,18,184.
According to 2011 census, the density of Maharashtra is 365 per sq. km.
which is lower than national average of 382 per sq. km. In 2001, the density of the
State was 315 per sq. km., while national average in 2001 it was 324 per sq. km. sex
ratio of Maharashtra is 946 i.e. for each 1000 male, which is above national average
of 940 as per census 2011. In 2001, the sex ratio of female was 922 per 1000 males in
Maharashtra which was quite below. This decade the sex ratio increased due to
awareness and provision of medical facilities at grass-root level.
Maharashtra is highly urbanized State in India, comprising the urban
population of 45.23 per cent which is the highest in the country followed by
Tamilnadu. The growth of the urban population as compare to last decade was
increased by 23.67 per cent which is quite high in the country. This is the result of the
industrial development and rise in the service sector in the towns and cities.
Table No.-3.2: Rural-Urban Population Characteristics of Maharashtra in 2011
Sr. No.
1 2
3
4
5
6
Description
Total Population
Population (%) Population Growth (%)
Male Population Female Population
Child Population (0-6)
Child Per centage (0-6) (%) Sex Ratio
Child Sex Ratio (0-6) Total Literates
Average Literacy (%)
Male Literacy (%) Female Literacy (%)
Rural
61,545,441
54.77 10.34
31,593,580
29,951,861
7,445,853
12.10
948 880
41,703,097 77.09
86.39
67.38
Urban
50,827,531
45.23 23.67
26,767,817
24,059,714
5,402,522
10.63 899 888
40,809,128 89.84
93.79
85.44
Source: Census of Maharashtra, 2011,
100
- ISO
The growth of child population in rural was higher than urban region which
are 12.10 per cent and 10.63 per cent respectively. Sex ratio in the urban area is 899
than 948 in rural. This is due to the job opportunities attracted male youth in the cities
causes increase in male population in urban centres. Urban literacy is quite high in
urban area (93.79 per cent) rather than rural area (77.09 per cent). Male literacy is
dominated in urban areas than rural areas (Table No.-3.2). The life expectancy of the
male and female are 68.3 years and 72.6 years respectively in 2011 which is more
than national level. Per capita income of the State population is Rs. 87,686 while in
India it is Rs. 53,331.
3.6 Human Development Index
The Human Development Index (HDI) is the normalized measure of life
expectancy, literacy, education, sex ratio, infant mortality rate, standard of living and
Gross Domestic Product per capita of a region. As per the National Human
Development Report 2001 by Plarming Conmiission, Maharashtra scores 0.501 in
2001 and 0.572 in 2011, improving its score of 0.363 from 1981. In 1991, the State
was ranked as fourth in the country in HDI having the score of 0.45. However during
the past two decades, Maharashtra's ranking in the State HDI index has fallen one
place below to that of fourth in the index ranking. India's Human Development Index
is 0.467 which is lower than State's Human Development Index. The State ranks 5*
in the country with Human Development Index of 0.572 in 2011. The per capita
income at current prices of the State was Rs. 8,672 and rose up to Rs. 87,686 in 2011,
which is ten times increased. Infant mortality rate is also reduced from 60 in 1981 to
28 in 2011 in the State. Sex ratio is slightly increased from 934 to 946 in the span of
20 years. Literacy rate has risen from 65.9 to 82.9 in 20 years (Table No.-3.3).
101
B
a
R U
•M JS
I I a S
a
Q a cs S
I
d
cs H
o
1-H
o o <N
OS
2
CS t3 en
2
ca
cs
2 ^ ^
cs
CS
13
u
o
ca CL,
in d
Z
rf r-
o\ 0 0
oo
ON
vd
(N <N >n
OS
/""^^ •4-»
G u CJ
u
+ ^ • • ^ ^
U
ts
o cs u
-
r-vd
m '^
so
(N
OS 0 0
0 0
' t (N
(N
' 4 ^
c o b 3 o 2
•4-»
.g
(=0
O
t N
1
sd
0 0
«N
(N
(N
, - H
>n
• > *
0 0 ( N
SO
<N
(3 u o u 3 >>
U
cs bO
"5 S
1
e cs
r«
ro
so
OS od so
f o
SO
0 0
i n
so
o Os »/->
U-)
SO
IS u sb u
CQ ts
o fi cs o (L>
X
• »-<
• *
so O s SO
i n
OS
SO
^ 0 0 so
OS
o so
oo >n so
CA
N — •
CS
e b t: PQ Is
o £3 cs o u X
i n
o OS
SO
OS
f^
OS
<N
O s
t^ O s
"* OS
_o *--cs u X u
on
so
• *
Os
tr\ OO OO
r-~ Os
r< OS
>n OS
so Os
CS
so 1
.o *•*-»
2 00
c
^
i n
so OO SO^
00
(N 0 0
so o ^f (N
O o so"
( N
SO^
oo"
1/3
1/3
CJ
ts u
s o o
cs
BH cs o u
OH
0 0
r-^
0 0 <N
SO SO
i n • *
o oo
o so
Is
>> • ^ J
^ cs
o
OS
c~~ d
r- in i n
d
Os
d
o in i n
d
0 0 m d
i n Tt
d
/"^N
Q
X u
g _o 1 3 > Q C3 =3
3 c3
O --1
O
CM
O (N cs" ; - i + -C
CO cs ki cs
C4-I
o
00
o c o o w
O 00
3.7 Education and Social Development
British Governor Elphinsten and others have endowed the role of education in
the social development in Maharashtra. He has started many schools in Bombay
Province to educate the local people to help them for their administration. Bal
Gangadhar Tilak, Agarkar, Ranade, Mehta have established educational institutes in
western Maharashtra. Today, Maharashtra has many educational and technical
institutes which are educating thousands of students every year. Maharashtra has good
human resource development infrastructure in terms of educational institutions. There
are 301 engineering and diploma institutes, 616 industrial training institutes and 24
universities with a turnout of 1,60,000 students every year. It is home to institutions
like Centre for Development of Advanced Computing (C-DAC) which developed
India's supercomputer, Indian Institute of Technology, Mumbai, Vishweshwaraya
National Institute of Technology (VNIT), Veermata Jijabai Technological Institute
(VJTI), University Department of Chemical Technology, College of Engineering,
Pune (COEP), Government College of Engineering Aurangabad, Government College
of Engineering Karad, Walchand College of Engineering, Sangli (WCES), Shri Guru
Govind Singhji Institute of Engineering and Technology Nanded and top management
institutions. 50,000 youth trained to take up self-employment ventures every year by
the Maharashtra Centre for Entrepreneurship Development (MCED), Aurangabad.
University of Mumbai (formerly Bombay University) was the first university
established in India along with University of Calcatta and University of Madras in
1858. University of Mumbai is one of the largest universities in the world in terms of
the number of graduates. SNDT Women's University is an autonomous university in
Mumbai, especially designed for women's education. Mumbai is a home of Nursee
Monjee Institute of Management Studies, National Institute of Industrial Engineering,
Jamnalal Bajaj Institute of Management Studies, S P Jain Institute of Management
and Research, K J Somaiya Institute of Management Studies and Research and
several other management schools. Government Law College and Sydenham College,
respectively the oldest law and commerce colleges in India, are based in Mumbai. The
Sir J J School of Arts is Mumbai's oldest art institution. College of Engineering, Pune,
established in 1854 is the third oldest college in Asia. Pune University was established
in 1948, is the biggest university in Maharashtra covering more than 600 institutes
and colleges. Mumbai is a home to two prominent research institutions, The Tata
Institute of Fundamental Research (TEFR) and The Bhabha Atomic Research Centre
103
(BARC) and The BARC operates Cirus, a 40 MW nuclear reactor at their facihty in
Trombay. The University of Pune, National Defence Academy, Film and Television
Institute of India, National Film Archives, Armed Forces Medical College, National
Institute of Virology and National Chemical Laboratory were established in Pune
after the independence of India. ILS Law College, established by the Indian Law
Society is one of the top ten law schools in India.
Byramjee Jeejeebhoy Medical College, Pune and Grant Medical College in
Mumbai educates student from all over India and are amongst the top medical
colleges in India. Military Nursing College ranks among the top nursing colleges in
India. University of Nagpur, established in 1923, one of the oldest universities in
India, manages more than 24 engineering colleges, 43 science colleges and many
colleges in the Arts and Commerce faculties. Nagpur is one of the first six Regional
Engineering Colleges established under the scheme sponsored by Government of
India and the Maharashtra State Government and is one of the Institutes of National
Importance. Nagpur is the home for National Fire Institution and Rashtrabhasha
Prachar Samiti. Maharashtra has 40 per cent India's Internet users and 35 per cent of
PC penetration in the country. The State has a wide base for the primary and school
education. The number of primary schools in the State has risen from 34,594 in 1960-
61 to around 75,695 in 2010-11 and has a ratio of 30 students per teacher. The number
of secondary and higher secondary institutes in the State has risen from 2,468 in
1960-61 to around 21,357 in 2010-11 and has a ratio of 36 students per teacher
(Appendix - B). Under the aegis of the Cenfral Government and the State
Government, various projects have been undertaken for the universalisation of
primary education across the State. Schemes like Sarva Sikshan Abhiyan, Vasti Shala,
Mahatma Phule Shikshan Hami Yojana, National Literacy Mission, nutritional diet
scheme are some of the measures undertaken for spreading the education in the State.
The enrolment rate is the main indicator of the progress in higher education
and is measured in Graduate Enrolment Ratio (GER). The GER from different
countries show that developed countries have GER invariably above 50 per cent and
the world average is 23.2 per cent. Maharashtra is ranked seventh in GER which is
14.14 in 1999-2000. Chandigadh is first ranked in GER at 26.24 per cent, followed by
Delhi at 21.16 per cent and Kerala at 18.08 per cent. Primary schools rose from
65,960 to 75,695 from 2000-01 to 2010-11. The secondary and higher secondary
schools are raised from 15,389 to 21,357 in ten years. Higher educational institutions
104
have good growth from 1,528 to 3,277 having 114.46 per cent growth with 17.84 lakh
enrollment in private as well as Government Institutions.
While Maharashtra is recognized as one of the better destinations for higher
education, pro-active measures are required for improving the quality of higher
education. The State and Central Government under the aegis of University Grant
Commission has planning to set up new private and grant-aid universities all over the
region of the country to assimilate the grass-root level pupils. Government is
rescheduling its policy to welcome foreign universities collaboration with Indian
Universities. Mumbai and Pune are most important destinations for these universities.
This would allow the private sector to use Government assets to create better revenue
streams and provide additional and value-added services to students.
3.8 Revenue Divisions
Maharashtra is divided into six revenue divisions, which are further divided
into thirty-five districts (Fig. No.-3.4). These thirty-five districts are further divided
into 109 sub-divisions of the districts and 357 talukas.
Fig. NO.-3.4: Revenue Divisions of Maharashtra
Nandurbdr Bhi ) -u l< i r <i Gondia
Akola
% '^ Yavatmal
Beed ^ rsiandfd
Lat
Chandrapur
Osmanabad IKonkan Region I Pune Region I Nagpur Region INashik Region I Aurangabad Region Amravati Region
Source: www.mapsof.net.
105
The six administrative divisions in Maharashtra State are Amravati Division,
Aurangabad Devision, Konkan Division, Nagpur Division, Nashik Division and Pune
Division. The districts of Divisions are as follows.
Konkan Division : Mumbai, Mumbai Suburban, Thane, Raigad,
Ratnagiri, Sindhudurg
Pune Division : Pune, Satara, Sangli, Solapur, Kolhapur
Nagpur Division : Nagpur, Chandrapur, Wardha, Bhandara, Gondia,
Gadchiroli
Nashik Division : Nashik, Dhule, Jalgaon, Ahmednagar, Nandurbar
Aurangabad Division : Aurangabad, Jalna, Latur, Nanded, Osmanabad,
Parbhani, Hingoli, Beed
Amravati Division : Amrawati, Akola, Washim, Buldhana, Yavatmal
3.9 Gross State Domestic Product
The sectoral growth rate of Gross State Domestic Product (GSDP) is
highlighted in the Table No.-3.4 and Fig. No.-3.5.
Table No.-3.4: Sectoral Growth Rates of Gross State Domestic Product (In per cent)
Sr. No.
Sector 2007-08 2008-09 2009-10 2010-11
1 Agriculture and allied activities 1) Agriculture 2) Forestry 3) Fisheries
2 Industry 1) Mining and Quarrying 2) Manufacturing 3) Electricity, Gas and Water Supply 4) Construction
3 Service l)Trade, Hotels and Restaurants, Transport, Storage and Communication 2) Finance, Insurance, Real estate and Business services 3) Community and Personal Services
9.9
11.8 8.7 8.1
13.6 24.3 9.3
10.4
10.8
3
(-)4.1 (-)6.1
5.8 (-)7.6
4.7 1.9 1.4
5 16.9 11.4
10.5
11.6
12.8
3.1 2.9 4.5
(-)0.4 8.5 3.6
10.3 8.6 3.2 9.6
12.5
6.6
9.9
12.5 11.4
17 13.3 9.1 4.4 8.6
10.4 11
10.9
11.3
10.5
10.7
Average GSDP lOA 7.8 8.7 10.5
Source: Economic Survey of Maharashtra, 2010-11.
The Average Gross State Domestic Product of the State in 2010-11 was 10.5
per cent, while agriculture and allied activities sector has recorded 12.5 per cent
growth rate. Among these, fisheries have shown good growth of 13.3 per cent while
agriculture sector has 11.4 per cent and forestry of 17 per cent. Industry sector has
106
observed very good growth as compare to previous year, i.e. 9.1 per cent. With
increasing demand of electricity, gas and water supply, this sector has recorded 10.4
per cent growth rates, while manufacturing sector has 8.6 per cent growth rate.
Fig. NO.-3.5: Sectoral Growth Rates of Gross State Domestic Product
14
12
10
c o
4
2
0 2007-08 2008-09 2009-10
Years 2010-11
• 1 Agriculture and allied activities
•3 Service
'2 Industry
•3 Average GSDP
Source: Table No.-3.4.
The mining and quarrying sector, which is the base of manufacturing sector,
has shown 4.4 per cent growth, it is half than 2007-08. Construction sector is all time
high in the industry sector has witnessed 11.0 per cent growth rate, triple than
previous year. Service sector is least affected in the economic sustainability, has an
average growth rate of 10.9 per cent.
3.10 Tourism
Tourism is one of the largest hidden industries about generation of
employment. Maharashtra offers a wide range of themes including leisure, heritage,
pilgrimage, eco, history for tourism industry in the State. It also offers various tourism
circuits like water tourism, Deccan odyssey and adventure tourism. Maharashtra
Tourism Development Corporation (MTDC) is the State Government agency for
promotion and regulation of tourism sector. MTDC is responsible for developing,
managing and maintaining the tourist places in the State. Maharashtra State has been
maintaining its second position in attracting a major chunk of foreign tourist arrivals
in India by acquiring a share of around 15 per cent, though the share has declined
from around 18 per cent in 2000. The tourism potential of the State however has not
107
yet been fiilly tapped on account of lack of an integrated approach from various
government departments and agencies. Maharashtra is lag behind in domestic tourism.
Tourism is not an isolated function or activity in itself but spreads across
multiple sectors in terms of economy. There should be good coordination between
different agencies of Government as well as private. The best example for good
coordination is in Goa, Rajasthan, Kerala, and Orissa State. Good political and social
structure is also influencing factor to attract tourists. Further, developing tourism
industry demands capital intensive projects which have the longer gestation period of
8-12 years, depending upon the size and potential. Tourism resources in Maharashtra
can generate much higher demands amongst domestic as well as foreign tourists
coming in India. The need is for the strategic and intelligent synergies to be developed
to tap the market and making tourism a driver in economic growth of the State. The
State has provided outlay of Rs. 510.5 crore in 2011-12 to the tourism sector as
against outlay of Rs. 283.3 crores in 2010-11.
3.11 Infrastructure
Maharashtra is one of the States of India which has a booming economy and
very strong foundation of infrastructure. The State has contributed for 20 per cent of
the total investment made by the State. Out of all the Foreign Direct Investment
received by the country, Maharashfra accounts for 17 per cent. Since the economic
policies of the 1970s, Maharashtra has leap forwarded in the economy and
infrastructural development. The State Government has contributed in the
development of infrastructural facilities at large scale in the State. The economic
infrastructure of the State includes the roads, railways, airports, power,
communication, ports and banking. The social infrastructure includes education and
fraining, health services and tourism.
3.12 Transportation
The State has good network of transportation having road length of 2,40,040
km. and railway lines of 5,983 km. The State has a coastline of 720 km. with several
natural ports. It has three international and domestic airports connected at all major
cities.
3.12.1 Road
Maharashtra has the largest road network in India covering length of 2,40,040
km. The State has a large highway network. Out of which 2,18,123 km. road length is
surfaced. The length of National Highways in Maharashfra is 4,367 kilometers.
108
Mumbai-Pune is the first six-lane Express Highway in India also known as
Yeshwantrao Chavan Mumbai-Pune Expressway.
Table No.-3.5: Road Length by Type of Roads in Maharashtra (In kilometers)
Sr. No. Year
National State Highways Highways
Major Other District District Roads Roads
Village Roads
Total
1 2
3 4
5 6 7 8 9
10 11
1965-66
1970-71
1980-81
1990-91
1995-96
2000-01
2005-06
2006-07
2007-08
2008-09
2009-10
2364
2445
2945
2959
2958
3688
4367
4367
4367
4367
4367
10528
14203
18949
30975
32249
33212
33571
33675
33800
33933
34102
12628
17684
25233
38936
40514
46751
48987
49147
49393
49621
49901
8744
11012
25404
38573
40733
43696
45226
45674
45886
46143
46817
17524
20020
68600
61522
68829
89599
99279
100801
102149
103604
104844
51788
65364
141131
172965
185283
216946
231430
233664
235595
237668
240040
Source: Economic Survey of Maharashtra, 2011-12.
Total length of State Highways is 34,102 km., while Major District Roads are
having length of 49,901 km. and Other District Roads are 46,817 km. in length. Total
Village Roads length is 1,04,844 km. in 2009-10 in the State (Table No.-3.5). The
Maharashtra State Road Development Corporation runs buses, popularly called ST for
State Transport which connects all talukas and district places with villages and towns.
These buses, run by the State Government are the preferred mode of transport for
much of the populace. These ST buses are also called as 'Lifeline of Maharashtra'.
Private luxury buses are also ply between main towns in the States. Luxury ST Buses
has started by MSRDC connects major cities. Other modes of public transport, such
as a seven-seater tempo have gained popularity in semi-urban areas. The road
infrastructure in the State is managed by various local bodies including Public Works
Department of the State, Municipal Corporation, Maharashtra State Road
Development Corporation (MSRDC), Maharashtra Industrial Development
Corporation (MIDC) and Forest Department. The total State secondary road length
maintained by the Public Works Department and Zilla Parishad in 2006 was 2.31
lakhs km. MSRDC has propelled private sector participation in road projects. The
Mumbai Metropolitan Region Development Authority has the mandate for Mumbai
Urban Infrastructure Project with an estimated cost of around Rs. 2,648 crores.
109
3.12.2 Railways
The Indian Railways covers most of the Maharashtra and is the preferred
mode of transport over long distances. Almost the entire State comes under the
Western and Central Railway zones which are headquartered in Mumbai. hi 2000-01,
State has railway length of 5,459 km. which increased up to 5,983 km. in 2009-10
which is 9.4 per cent of the total railway route length in the country. Total railway
route length in the State is hardly increased by 18.3 per cent over the last 50 years.
This increase is mainly due to Konkan Railway. The railway route length per 1000 sq.
km. of geographical area as in March 2010 was 19.44 km. in the State as against
19.69 km. in the country. Railway map of Maharashtra is illustrated in Fig. No.-3.6.
Fig. NO.-3.6: Railway Map of Maharashtra
M a d h y a Prae l *sh
M a h a r a s l i t r a Ra l lvway M a p
C«> itatm Capl la l ^ ^ Stat* Boundcry rt+- Kaiiway i i n *
Source: www.maharashtratourism.gov.in.
Indian Railway has undertaken the conversion of gauges from meter and
narrow gauge to broad-gauge under uni-gauge project. Some of the rail related
projects undertaken in the State include Miraj-Latur and Baramati-Lonand section.
One of the most important projects viz., the Mumbai Urban Transport Project
spearheaded by MMRDA aims to develop world-class infrastructure for an efficient,
110
safe and sustainable railway system in Mumbai suburban section. The system carries
about 6 million passengers every day. MMRDA has started a project on Monorail in
Mumbai to ease the transportation system at large scale.
3.12.3 Water Ways
The State has 720 km. long coastal line with three major ports at Mumbai,
Jawaharlal Nehru Port Trust (JNPT) near Nhava-Sheva lying across the Mumbai
harbour in Navi Mumbai, and Ratnagiri.
Table No.-3.6: Operational Statistics of Major Ports in Maliarashtra
Sr. No.
1
2
3
4
5
6
7
8
Item
Total cargo capacity (lakh tonnes) No. of employees Cargo traffic handled (lakh tonnes) A) Import B) Export C) Total Passenger traffic handled (in '000) No. of vessels handled Operating income (Rs. crores) Operating expenditure (Rs. crores) Operating surplus or profit (Rs. crores)
MbPT 2009-
10
497
14059
353.57 191.84 545.41
64.4
5830
895.14
720.22
174.92
20 lol l
487
13391
367.55 178.3
545.85
16.01
5622
955.07
774.91
180.16
Change
-2
-4.8
3.9 -7.1 0.1
-75.1
-3.6
6.7
7.6
3
JNPT 2009-
10
607.63
1739
316.1 275.8 591.9
NA
3080
1042.06
393.7
648.36
20 lol l
643.17
1730
327.84 301.84 629.68
NA
3128
1122.64
444.46
678.18
Change
5.8
-0.5
3.7 9.4 6.4
NA
1.8
7.7
12.9
4.6
Note: MbPT- Mumbai Port Trust, JNPT- Jawaharlal Nehru Port Trust.
Source: MbPT and JNPT, Economic Survey of Maharashtra, 2011-12.
The Jawaharlal Nehru Port is India's largest container traffic port and is
ranked 24* among the leading 100 international container ports. Mumbai Port Trust
and JNPT handled 1175.53 lakhs tonnes including import cargo traffic 695.39 lakhs
tonnes and export cargo traffic 480.14 lakhs tonnes 2010-11. Total 8,750 in vessels
handled at both ports in 2010-11 (Table No.-3.6). Ratnagiri port handles the export of
ores mined in the Konkan hinterland. Additionally, there are 53 minor ports along the
Konkan coast. Ferry-boat services also operate from Mumbai and linking to
neighbouring coastal towns. The State Government has taken a policy decision to
develop 48 non-major ports in the State with participation of private sector on Build,
Own, Operate, Share and Transfer (BOOST) basis. The Maharashtra Maritime Board
111
has undertaken development of six non-major ports namely, Dighi, Rewas-Aware
(Raigad), Dhamankhol-Jaigad, Levagan-Jaigad (Ratnagiri) and Vijaydurg, Redi
(Sindhudurg). Apart from these ports, there are number of captive and multipurpose
jetties set up within the limits of non-major ports, which also do the cargo handling.
Table No.-3.7: Operational Statistics of Non-Major Ports in Maharashtra
Sr. No.
1 1
2
Item
Cargo traffic handled (lakhs tonnes)
A) Import
B) Export
Total Passenger traffic handled (lakhs tonnes) A) By mechanised vessels
B) By non-mechanised vessels
Total
2009-10
111.73
13.37
125.1
149.56
19.15
168.71
2010-11
124.95
23.79
148.74
144.53
22.81
167.34
Per cent change
11.83
77.94
18.9
-3.36
19.11
-0.81
Source: Economic Survey of Maharashtra, 2011-12.
The non-major ports together handed 148.74 lakhs tonnes cargo traffic and
167.34 lakhs passenger traffic during 2010-11 (Table No.-3.7). Mazgaon Dock
Limited at Mumbai is Government owned company where ships are built. Bharati
Shipyard at Ratnagiri and Rajapur Shipyards at Rajapur are the companies which
operates shipyards in the State.
3.12.4 Air Ways
Maharashtra has three international airports, namely, Mumabi, Pune and
Nagpur. Mumbai's Chhatrapati Shivaji International Airport is the busiest airport in
India as per passengers handles. Another International airport is coming up at Navi
Mumbai. Pvme has a civilian enclave international airport with flights to Dubai,
Frankfurt and Singapore. Aurangabad airport has been upgraded to an international
airport with flights connecting to Jeddah. Nagpur too has an international airport.
Other large cities such as Kolhapur and Nashik are served by domestic airlines.
Nashik has many flights to Mumbai and soon other metros will be added after the
construction of a new airport at Nashik.
Air transportation has increased many-fold due to booming of Indian
economy, growing tourism industry, entry of low cost airlines, liberalization of
112
international bi-lateral agreements and liberalization of civil aviation policy at the
Centre. Most of the State's airfields are operated by the Airport Authority of hidia
(AAI) while Reliance Airport Developers (RADPL) operates five non - metro airports
at Latur, Nanded, Baramati, Osmanabad and Yavatmal. The Maharashtra Airport
Development Company Limited (MADC) that was set up by the Government in 2002
to take up development of Airports in the State those are not under the AAI or the
Maharashtra Industrial Development Corporation (MIDC). The Maharashtra Airport
Development Company Limited is playing the lead role in the planning and
implementation of the multi-modal International Cargo Hub and Airport at Nagpur
(MIHAN) project. Mumbai, Pune and Nagpur airports are handling the cargo traffic.
This will facilitate to the farmers to send their perishable and light-weight
commodities to abroad instantly. Other small cities such as, Aurangabad and Nanded,
are served by scheduled domestic services. There are smaller airports at Akola,
Amravati, Baramati. Chandrapur, Dhule, Gondia, Jalgaon, Karad, Kolhapur, Latur,
Nashik, Osmanabad, Ratnagiri, Solapur and Yavatmal which do not operate air
services. There are also private airstrips at Amby Valley City and Shirpur. A
Greenfield airport is being built by the MADC at Shirdi and another one by CIDCO at
Navi Mumbai. The New Pune International Airport is being planned near Pune which
would be benefitted for the passengers and farmers also.
3.13 Power
Maharashtra has no adequate resources to mitigate energy requirement. Coal is
found in Vidarbha and having huge potential for hydel power in the Western Ghats.
Maharashtra ranks first nationwide in coal-based thermal electricity as well as nuclear
electricity generation with national market shares of over 13 per cent and 17 per cent
respectively. Maharashtra has the highest power generating capacity of 15,210 MW.
The power sector in Maharashtra aids the growth of several other industrial sectors. A
huge number of national and international companies have their headquarters in
Maharashtra. Mumbai is the most developed city in and financial capital of India. The
city is the seat of major business and industrial activities. Naturally, the power
situation has to be an excellent one. The Maharashtra Government has taken all steps
to ensure this.
Maharashtra has the most number of thermal power plants in India. These are
boosted by constant coal supply. The Maharashtra power plants are connected via
good roads and railway routes. These ensure that the supply of coal remains
113
unhindered. Coal is supplied from the States own mines or from mines of neighboring
States. Some of the State's thermal power stations are Koradi Thermal Power Station,
Khaparkheda (Nagpur), Eklahare (Nashik), Bhusawal, Paras (Akola), Parli (Beed),
Chandrapur, Trombay (Mumbai), Dahanu (Thane) and Wardha Power Plant.
New capital investment in industries has more demand of electricity in the
State which copes with the current generation of power. New industries and offices
have come up across the State. The State Government is planning proper steps to
meet this requirement. It is aiming at a rapid expansion of the State's power sector. It
is planning to set up more coal-based plants to generate more power to mitigate the
needs of the industries. Government is also plaiming to increase the power production
through non-conventional energy resources such as solar, wind and from solid waste
which is ample in the State. A mega solar energy project is aimed of 150 MW near
Sakri in Dhule district. Ahmednagar, Satara, Sangli districts have more potential in
wind energy. The State has the capacity of total generation of electricity of 81,345
million KWH in 2009-10 which was 61,209 million KWH in 2000-01. There is 32.89
per cent increase in the power generation in last decade. Out of the total generation of
power, 79,139 million KWH of electricity is consumed in the State. The industrial and
agricultural consumption is of 30,866 and 13,925 million KWH respectively in 2009-
10.
Table No.-3.8: Energy Development in Maharashtra
Sr. No.
1
2
Source
In the State
Thermal
Renewable
Hydro
Natural Gas Captive power Central Sector Allocation
Installed Capacity (MW)
2009-10
17371
8825
2807
2916
1772
1051
5268
2010-11
19153
9665
3408
3366
2714
NA
5376
Change
10.3
9.5
21.4
15.4
73.4
NA
2.1
Generation of Electricity (MUs)
2009-10
81345
54978
5026
5654
15322
365
30156
2010-11
83017
52796
5118
6374
18729
NA
29982
Change
2.1
-4
1.8
12.7
22.2
NA
-0.6
Note: MW= Mega Watt, MU= Million Units.
Source: Economic Survey of Maharashtra, 2011-12.
114
The per centage of State Government Expenditure on Energy Sector to GSDP
at current prices for 2009-10 was 5.1 as compared to 5.3 per cent for 2008-09. The
installed capacity has increased by 10.3 per cent during 2010-11, whereas Central
Sector Allocation to the State increased by 2.1 per cent. The total installed capacity in
March 2011 in the State comprises of Public Sector 54 per cent, Private sector 36 per
cent and PPP (RGPPL) 10 per cent.
The total generation of electricity in the State was 83,017 million units during
2010-11 which was 2.1 per cent higher than 2009-10. MAHAGENCO accounted for
57.8 per cent followed by RGPPL 14.0 per cent, Tata Power 13.3 per cent. Renewable
Energy 6.0 per cent and Reliance Infrastructure 5.3 per cent of the total power
generation. During 2010-11, the State has received 29,982 million units electricity
generated from the central sector. Out of the total generation of power, thermal
comprises 63.60 per cent power in the State followed by natural gas energy 22.56 per
cent, hydroelectricity 7.67 per cent and renewable energy 6.16 per cent in 2010-11
(TableNo.-3.8).
Table No.-3.9: Consumption of Electricity in the Maharashtra
Sr. No.
1
2
3
4
5
6
7
Type
Industrial
Domestic
Agriculture
Commercial
Public Services
Railways
Miscellaneous
Total
1960-61
1853
260
15
198
55
339
NA
2720
1970-71
5312
732
356
547
220
421
62
7650
1980-81
8130
1779
1723
949
489
766
198
14034
1990-91
14706
5065
6604
2068
291
970
267
29971
2000-01
18363
11172
9940
4105
1750
1581
378
47289
2009-10
30866
18171
13925
10546
2658
2119
854
79139
20 loll
34416
19547
16257
11571
2310
2707
589
87397
Change
11.5
7.6
16.7
9.7
-13.1
27.7
-31
10.4
Note: Figures are in Million Units (MUs).
Source: Economic Survey of Maharashfra, 2011-12.
The aggregate consumption of electricity in the State during 2010-11 was
87,397 million units (MUs), it is higher by 10.4 per cent over previous year. The
industrial sector (39.38 per cent) has the largest consumption of electricity, followed
by domestic (22.37 Per cent) and agriculture sector (18.60 per cent). These three
sectors together accounted for 80 per cent of the total electricity consumption. The
Commercial segment has consumed 13.24 per cent of power while public services and
railways have consumption of 2.64 per cent and 3.10 per cent respectively (Table No.
115
3.9 and Fig. No.-3.7). Except Public Services all segments have positive growth rate
over 2009-10. The highest growth rate has recorded for railway transportation (27.7
per cent) followed by agriculture (16.7 per cent).
Fig. NO.-3.7: Consumption of Electricity in Maharashtra
35000
30000
25000
I 20000
I 15000 I £ 10000
5000
•Industrial
'Domestic
•Agriculture
•Commercial
•Public Services
' Railways
Miscellaneous
2000-01 2009-10
Source: Table No.-3.9.
The industrial sector, the base for the economy, has observed 11.5 annual
growth rates, while overall growth rate in the consumption of electricity in the State is
10.4 per cent over the past year, 2009-10.
3.14 Principal Urban Agglomerations
Maharashtra has one of the highest levels of urbanization of all Indian States
after Tamilnadu. The mountainous topography and soil are not as suitable for
intensive agriculture as the plains of North hidia. The State has 42.4 per cent urban
population. The large cities are Mumbai, Pune, Nagpur, Nashik, Aurangabad and
Sangli.
Mumbai is the Administrative Capital of Maharashtra, is the biggest city in
Jndia. The population of the agglomeration of Mumbai is 1.84 crores in 2011 census.
Mumbai is the financial and commercial capital of the country. Mumbai houses the
two largest stock exchanges of the country and 70 per cent of all stock market
transactions take place. The city is the headquarters of all major industrial and
corporate houses. Many cotton textile and chemical industries had come up from
British period. It has the largest proportion of taxpayers in India and its share markets
116
transact almost 70 per cent of the country's stocks. This city alone contributes over 33
per cent of the country's Income Tax and accounts for over 5 per cent of the country's
Gross Domestic Product. It offers a lifestyle that is rich, cosmopolitan and diverse,
with a variety of food, entertainment and nightlife. Chhatrapati Shivaji International
Airport in Mumbai is the biggest and the second busiest airport in India. To decrease
the burden on Mumbai airport, the new international airport is coming up at Navi
Mumbai. The city is India's link to the world of telecommunications and the Internet.
Mumbai is the biggest harbour of the country which carries more than 50 per cent
commodity traffic. It is also home to the Indian Navy's Western Command and
Western and Central railway division. Globalization has brought increased business
opportunities to Mumbai from foreign companies, which want to reap the benefits of
India's large talented and highly knowledgeable workforce and to access its capital,
commodity and financial markets. This trend supports Mumbai's emergence as a
Regional Financial Hub on the global map.
Pune is the second largest city in Maharashtra and the eighth largest in India.
This city is the State's cultural and heritage capital with a population of 48.44 lakh
along with Pimpri-Chinchwad suburban people in 2011. Pune was the capital of
Maratha Empire in Peshwa reign. Pune flourished into a centre of art, music, drama
and learning. Several far reaching revenue and judicial reforms were also initiated in
the city. 'Ganeshotsav' is celebrated in Pune with lot of enthusiasm and worship. Pune
is connected to Mumbai by the Mumbai-Pune Expressway, 160 km away. Pune also
has very important military cantonments as well as the Head Quarter of the Southern
Command, the National Defence Academy, the Armed Forces Medical College, CME
and the Indian Air Force base at Lohegaon. Pune is a major Information Technology
hub of India as well as a foremost destination for Automobile manufacturing and
component industrial city.
Nagpur is the third largest city in Maharashtra having population of 24.05
lakhs in 2011, which is geographical centre of the country, called as 'Zero Mile
Stone'. Nagpur was the capital of Central Province and Berar in British period from
1853 to 1947. In 1950 Nagpur became the capital of Madhya Pradesh. Nagpur is
famous for its orange, so also called as Orange City. It is also second adminisfrative
capital of Maharashtra. Nagpur is a growing industrial cenfre and the home of several
industries such as food products, chemicals, electrical and transports equipment. An
international cargo airport, Multi-Modal International Hub Airport (MIHAN) is
117
coming up near Nagpur city. The Maintenance Command of Indian Air Force is
located in the city.
Nashik is one of the largest and highly industrialised cities in the Maharashtra.
Nashik is a historical city, situated on the bank of Godavari River in western
Maharashtra. Nashik has a population of 15.62 lakh people in 2011. Nashik is rapidly
developing in its industries, Pharmaceuticals and westernization. Nashik gets benefits
of Mumbai and Pune for its industrialisation. Nashik lies on Mumbai-Agra Highway
No.3 and well connected with all major cities by rail. It is also famous for its pleasant
and cool climate. Nashik is also an educational hub.
Aurangabad is a main city in central Maharashtra, named after Mughal
Emperor, Aurangjeb. The city is headquarters of Aurangabad District and having
population of 11.89 lakh in 2011. The city is a tourist hub, surrounded with many
historical monuments, including the Ajanta Caves and EUora Caves, which are
UNESCO World Heritage Sites and largely fiinded by Japan Government. It is the
administrative headquarters of the Aurangabad Division or Marathwada region.
Sangli is the 'Turmeric city of India' and the largest trade centre for turmeric
in the country. It is situated on the banks of Krishna River, Sangli-Miraj twin cities
form the largest urban agglomeration in southern Maharashtra. Sangli is famous for
its grapes. Miraj is known for Indian classical musical instruments exported all over
the world. Sangli houses some renowned engineering and medical institutions.
Density of hospitals in Sangli- Miraj twin cities is the highest in India. Sangli is now
coming up as a major wind power generation hub in Maharashtra. Sangli is well
known for its sugar factories and dairy farms. Recently, large textile units are coming
up around Sangli which is also witnessing developments in IT and ITES sector.
3.15 Special Features of Maharashtra
Maharashtra retains its status as the engine of Indian industrial growth.
Maharashtra is the most industrialized State in India and it has maintained its status as
India's Economic Powerhouse. It is the most industrialized State and contributes
around 20 per cent of the country's Gross Domestic Product (GDP). Its per capita
income is 1.5 times than the national average. It has achieved a steady growth of 6.5
per cent in the last decade. The State has a maturing economy with growing services
and a strong industrial base. The Government invests about two-third fiinds in
infrastructure like power, water and irrigation, roads and transport. It has the highest
power generation capacity among the States.
118
Maharashtra is also leading in export. The State export include leather goods,
gems and jewellery, textile and garments, pharmaceuticals, engineering goods,
plastics, electronics and Information Technology which contributes 30 per cent of
India's export. It has the largest number (563) of 100 per cent Export-Oriented Units.
It is connected to the world by an international airport and major and minor ports,
which handle 50 per cent of India's foreign trade. The Mumbai-Navi Mumbai- Pune
region is Maharashtra's prominent industrial hub. Navi Mumbai and Pune is the
strongest base for IT-enabled services. Pune is a major centre for high-end IT
software in India. The State has a diversified industrial base. Its output value ranks
first in 12 out of 35 sectors. Maharashtra ranks among the top three in 25 sectors. Its
share in net value addition is 22 per cent. The per capita value-addition is 2.4 times
higher than the all-India average. It has the largest network of industrial areas, 217
industrial complexes with 1,25,000 acres of land. There are specialised parks for
different sectors, including IT and BT.
Maharashtra is the first State to propose labour law reforms in the Industrial
Disputes Act and the Contract Labour Act. The disputes regarding industry and
labourers are considered primarily to resolves issues to speed up the industrial
progress. There are several fiscal incentives in the industrial policy, including 50 per
cent stamp duty exemption in backward and developing areas. It also has provisions
for capital and interest subsidies for IT Parks in backward region with electricity duty
exemption. Such industries also get benefitted Octroi refund, provision of capital at
concessional rate, long term leasing land. The Maharashtra Industrial Development
Corporation (MIDC) has played a pioneering role in spearheading the industrial
growth of the State. Its objectives are achieving balanced industrial development with
an emphasis on developing underdeveloped parts of the State. It's developing
infi-astructure in every district and facilitating entrepreneurs to start industries at
various locations. The MIDC has been taken initiative for carrying out activities
within the fi-amework of the Maharashtra Industrial Development Act and the
Maharashtra Industrial Development Rules. These activities can be divided under the
three broad categories like, acquisition and disposal of land, provision of
infi-astructure facilities and provision of services.
119
3.16 Economy of Maharashtra
Maharashtra's economy is based on agriculture, industry and service sector.
The State's income is Rs. 8,17,891 crores in 2009-10. The contribution of agriculture
and its allied activities was Rs. 85,720 crores in 2009-10 from Rs. 32,711 crores in
2000-01.The State is the major producer of oilseeds, groundnut, sunflower and
soyabean. The State also produces cash crops like cotton, sugarcane, turmeric and
vegetables. The State also has a vast area under horticulture cultivation. The net
irrigated area is 33,500 km in the State.
The industry sectors has shown forward leap from Rs. 64,942 crores to Rs.
2,36,293 crores in 2000-01 and 2009-10 respectively. Favorable economic policies in
the 70s led to Maharashtra becoming hidia's leading industrial State in the last quarter
of 20" century. Over 41 per cent of the S&P CNX 500 conglomerates have corporate
offices in Maharashtra. However, regions within Maharashtra show wide disparity in
development. Mumbai, Pune, Nashik, Aurangabad and Western Maharashtra are the
most developed zones. Maharashtra's Gross State Domestic Product for 2009-10 was
Rs. 9,01,330 crores at factor cost.
Maharashtra is hidia's leading industrial State contributing 15 per cent of
national industrial output and over 40 per cent of India's national revenue. Almost 46
per cent of the Gross State Domestic Product is contributed by industries in the State.
Major industries in Maharashtra include chemical and allied products, electrical and
non-electrical machinery, textiles, petroleum and allied products. Other important
industries include metal products, wine, jewellery, pharmaceuticals, engineering
goods, machine tools, steel and iron castings and plastic wares.
An international cargo hub is being developed at Nagpur. MIHAN will be
used for handling heavy cargo coming from South-East Asia and Middle-East Asia.
Project will also include Rs. 10,000 crores Special Economic Zone for Information
Technology companies. This will be the biggest development project in India so far.
Prominent Indian and foreign automobile makers such as Tata Motors, Bajaj Auto,
Force Motors, Mahindra and Mahindra, Mercedes Benz, Audi, Skoda Auto, Fiat,
General Motors and Volkswagen are also either based in or have a manufacturing
presence in Maharashtra. Service sector has recorded giant increase from Rs. 1,45,931
to Rs. 4,95,878 crores for the period 2000-01 to 2009-10. The State's per capita
income is Rs. 74,027 in 2009-10.
120
3.17 Industries in Maharaslitra
Maharashtra is a highly industriaUzed State. The development of a State
requires infrastructure. From this point of view, many important factors continue to
contribute to the industrial development in Maharashtra such as the availability of
water, electricity, roads, modem transport and communication facilities. Mumbai
being an international port, rise of various industrial development corporations as well
as financial institutions and the industrial cities of Mumbai, Pune, Thane,
Aurangabad, Nashik and Nagpur are mainstays of development in the State.
Concerning the total industrial investment in the country, Maharashtra makes a 10 per
cent contribution, while in case of employment generation the State's contribution is
15 per cent. Maharashtra has a 23 per cent share in the total industrial production in
the country.
3.17.1 Types of Industries in Maharaslitra
There are Agro based, Mineral based, forest based and animal product based
industries in the State. Maharashtra is a leading State in agro based, chemical,
engineering and automobile industries.
i) Agro based industries - textiles, sugar, oil mills, gram mills
ii) Mineral based industries - iron, cement, mineral oil curing, engineering
iii) Forest produce based industries - log mills, paper mills, match box,
pharmaceuticals, toys, sports goods, furniture
iv) Animal products based industries - leather goods, silk, textiles, milk products
Apart from this, there are few industries which are mostly associated with service
sector, namely, constructions, tourism, vehicles, publishing, printing, information
technology and entertainment industries.
3.17.2 Spread of Industrialisation in Maharashtra
The level of industrialisation categorized into four types viz. backward, less
developed, moderately developed and developed. Industrialisation has happened in
and around Mumbai and Pune cities. The district of Pune, Thane and Raigad are the
developed district with a few less developed pockets. Nashik, Ahmednagar and
Aurangabad are moderately developed while Satara, Sangli, Kolhapur, Amravati and
Nagpur are less developed. The rest of Maharashtra is backward in industrialisation.
There are many factors affecting Investment such as market size, infrastructure and
stability of the Government are some factors. Investment is also attracted where the
assurance of earning profit is higher with good Government policies. Risk factors also
121
play an important role in determining the Investment flows in a State. It is found that
macroeconomic policies are important factor in determining the inflow of foreign
investment. Government has planned to attract foreign direct investment by
organizing summits, conferences, sending delegations to foreign countries from where
the capital investment may be attracted, exhibition of product and economic policies.
India's mixed economy transformed into limited free economy since 1991.
The States in India have enjoyed more freedom in forming their respective industrial
policy and are using this new opportunity most strongly to attract private investment.
The States are planning to attract private investors to invest with vast range of
incentives, tax benefits, concessional rates on water and electricity. These benefits and
incentives may vary from State to State, depending upon the scale of production,
location of unit, export orientation and a host of other factors. The nature and extent
of facility and incentives provided by the State Government is used to measure the
level of industrialization. These incentives are,
i) Provision of funds for financing investment operations and government
involvement in fixed capital investment for new industrial units.
ii) Financing and other assistance in setting up technologically pioneering and
prestigious units and expansion and diversification of external industrial units.
iii) Provisions for various sales tax exemptions and deferment of tax schemes.
iv) Ocfroi and other parallel tax exemptions and reduction and exemptions of
other taxes such as property taxes.
v) Export of finished product and import of raw material or technology based
incentives.
vi) Allowances for subsidized services like generating sets, carbon credits, use of
green energy.
Incentives may be categorized for special, temporal and spatial purpose to
atfract investment. Incentives may helps to attract foreign as well as domestic capital
at large extent. Apart from the incentives and tax benefit, other factors are also
important which influence more on investment such as, transportation, energy,
telecommunication, water, labour cost and tax structure. Neither financial nor fiscal
incentives are important but rather good quality of infrastructure that investors rank as
the most important factor in investment decision. It has been noticed that there is no
strong relationship between investor fiiendliness and incentive provisions. However,
incentives are very helpfiil for small States to inflow of money. Evidence suggests
122
that some factors influence Foreign Direct Investment decisions more than incentives.
Market size and its scope affect the investment in industry or in service sector.
Investors always seek export oriented production to export their product without or
less export duties. Availability of resources for raw material in terms of commodity or
manpower is very much important to reduce production cost and targeting high
margin of profit. Tariff and other taxes and duties are relatively affects trade barriers
with transportation and exchanges costs. Government regulations and policy may be
terminated or abandoned by the new Government; it affects new investment from
abroad. Political stability attracts investors for their assurance of profit with regulating
environment.
There is a relatively weak but somewhat positive relationship between
incentives and investment. Foreign Direct Investment shows a little higher correlation
with the incentive index than internal investment decisions. Incentives are relevant as
a source for attracting foreign direct investment. When fundamental determinants
across States are similar, incentives help the foreign investors towards making a
particular location decision. Thus, there is essential major strategy to attract Foreign
Direct Investment, through creation of Export Processing Zones. There is a big
competition among the States of Maharashtra, Gujarat, Kamataka, Tamilnadu, Uttar
Pradesh, Bihar and West Bengal which are inviting foreign investors in their States by
giving incentives with prime locations of their units.
3.17.3 Industrial Sickness
Industrial sickness a byword in the corporate world has become a part and
parcel of the industrial scene in our country during the past two decades. As it has
been spreading at alarming pace profitable units turned unprofitable, an erosion of
their reserves and capital took place and ultimately they had to close their door or had
to operate on the verge of subsistence just biding time for the last breath. The Reserve
Bank of India has defined, 'a sick unit as one which has incurred cash loss for one
year and in the judgment of bank it is likely to continue to losses in the current years
as well as the following year and which has an imbalance in the financial structure
such as current ratio of less than 1:1 and worsening debt equity ratio.
According to the sick Industrial Companies (Special Provisions) Amendment
Act, 1994, "sick industrial company" means an industrial company registered for not
less than five years which has at the end of any financial year accumulated losses
equal to or exceeding its entire net worth. The definition is for the purpose of
123
application of the act which has been in existence for at least seven years. Various
studies had been conducted in the recent past to analyse the key causes behind
sickness in industrial undertakings. The study conducted by RBI underlined the fact
that managerial deficiency and out right management is the single largest cause of
sickness in large industrial enterprise while the Development Commission of Small
Scale hidustries conclude that the non-availability of raw material, price hike of raw
materials, shortage of working capital and marketing problems are the causes of
sickness in small-scale sector.
The causes of sickness of an enterprise are as such attributed to a complex of
factors which may be either due to internal disorders in the functional area or due to
external disruptions that is either due to endogenous factors or exogenous factors. The
endogenous factors may be function related which are very much within the control of
managements of the industrial enterprise, while the exogenous factors are related to
factors like government policies pertaining to production, distribution and price
changes in investment pattern, shortage of power, transport, raw materials and fall in
industrial relations. Industrial units are at times bom sick or achieve sickness or have
sickness thrust upon them.
Maharashtra Government has a policy of promoting industrial growth and
dispersal of industries to the underdeveloped areas in the State through creation of
necessary infrastructure. Old industries are becoming white elephant in profit making,
due to old machinery, profit is getting down. But along with the process of
industrialization, old industries have started becoming sick and a large number of
industrial workers are being affected in the process. There were special laws to protect
labourers by applying labour laws effectively, which affects adversely on industrial
margin of profit. Therefore, most of the units are become sick because of old
machinery, demanding more salary to labourers, strike for more demands by
labourers, laws protecting labourers rather than industries. Cotton textile industries in
Mumbai became sick and abandoned. Sugar mills are getting weaker mostly in co
operative sector. Government sanctioned Rs. 8600 crores to boost development of
sugar industry in November, 2013.
Board for Industrial and Financial Reconstruction was set up in 1987 to tackle
the problem of industrial sickness. So far the board has received 620 references under
the Sick Industrial Companies Act, 1985 of which 119 cases were sanctioned for
rehabilitation while 68 were recommended to be wound up. The State Government
124
created organizations like Maharashtra State Financial Corporation (MSFC),
Maharashtra Industrial Development Corporation (MIDC) and Maharashtra Small
Scale Industries Development Corporation (MSSIDC). In addition to the above
organizations central financing agencies such as Industrial Development Bank of
India (IDBI) and Industrial Credit and Investment Corporation of India (ICICI) also
extended the financial assistance to the State.
3.18 Information Technology in Maliaraslitra
Maharashtra is leading in Information Technology industries. Especially
Mumbai-Pune zone is contributing major share of software development. Infosys,
Wipro, Patni, TCS, Tech-Mahindra and Cognizant are the giant companies which
considered as significant contributors to the IT revolution in the State. Mumbai
attracts a majority of the investment flowing into Maharashtra for almost every
industry. Maharashtra's forward looking IT policy has been well gained in the IT
sector. About 25 per cent of the top 500 software companies in India are based in
Maharashtra. 10 of the top 20 Software and Service Exporters in India have
operations in the State. The State has 1,251 software export units which is the highest
in India. It contributes around 30 per cent of the countries software exports and
sharing large amount of foreign exchange. The largest numbers of ISPs in India are
based in Mumbai. Maharashtra accounts for 32 per cent of Internet subscribers and 35
per cent of National Personal Computer market and peripherals.
Many private and Government institutes like C-DAC, IIT, VJTI and NCST
give education and training to produce skilled technical manpower to lead the IT
revolution. Mumbai is the first choice of the early movers in the software space like
TCS, Mastech, Datamatics and Patni. According to the National Association of
Software and Service Companies (NASSCOM), the ITES industry in India is
experiencing the third wave of growth in terms of geographical areas of operation and
services offered. In the first phase the industry was dominated by captive centers of
large multinationals such as General Electricals (GE), American Express and Swiss
Air who set up operations in metros such as Mumbai and Delhi. In its second phase
the growth of the industry attracted entrepreneurs who set up operations in and around
Delhi and Mumbai. The third phase of growth has been more geographically
dispersed. New locations such as Bangalore, Hyderabad, Pune, Ahmedabad, Chennai
and Kochi have find out base for their operations.
125
Mumbai and Delhi are more costly cities if compare to new locations. These
emergences are due to looking to cut down operating costs, transportation cost and
cost of real estate in Mumbai. It is higher than those in emerging cities; ITES
companies have naturally been attracted to cities like Kochi and Hyderabad which
offer lower operating costs. Hence, while other States are now going all out to attract
IT or ITES companies in Maharashtra which could earlier boast of its infrastructure
facilities, is now grappling to build infrastructure in line with the new demands.
Maharashtra Government has declared new IT policy in 2009 to boost IT growth and
investment. Maharashtra is the leading State in terms of infrastructure and in
attracting Information Technology companies but this position has gradually taken
away by the southern States. Compare this with southern States where State
Governments are more positive in interacting with foreign delegations. Hence
provisions need to be made on a continuous basis and infrastructure needs to be
upgraded with the time. The Maharashfra Government is pouring money on
infrastructural development with special set up for the companies with roads and
electricity. Maharashtra has already big companies which operating and hence
infrastructure needs to keep pace with the rising demand.
Mumbai still ranks among the very best in factors like telecom infrastructure
and international connectivity. Maharashtra is the most preferred State in the country
for the ITES industry. In terms of overall suitability, no other State can be compared
to Maharashfra. When one looks at availability of frained and frainable manpower the
State is way ahead of other States. In this competitive age the State has to adapt with
changing times to attract new businesses. For instance, the Government has to take a
serious look at the state of roads and try to reduce fravel time by widening roads and
increasing facilities of telecommunication. Broadening and quality improvement of
roads must be taken up on a priority basis to envelope the growth of IT industry along
with increase service sector industry. The software companies are facing the problems
regarding slums around IT parks, transportation problem and higher cost of estates.
Mumbai is well connected to all major cities by domestic as well as
international flights. This is despite the fact that Mumbai has more connecting flights
than any other city in the country. Materials imported by air reach the city in a matter
of hours, but on an average it takes 10 to 12 days between landing and permission for
installation of the goods at the STP unit. There is a power load shedding in
Maharashtra except Mumbai which affects continuous power supply to the industries.
126
Navi Mumbai is now a big centre for IT units where estate prices are little less than
Mumbai. Maharashtra has a considerably good infrastructure when it comes to factors
like power telecom infrastructure and international connectivity.
3.19 Special Economic Zones
In order to give the industry certain added advantages by the Governments of
various countries come-up with special schemes and subsidies mostly related to
custom duties. These schemes provide an upward thrust to a country's products in the
global markets on account of lower prices or better quality. Various facilities can be
offered in this area without the fear of then being misused and also no resistance from
WTO is encountered on account of the schemes not being a national policy, but only
limited to small areas demarked for the purpose. This is where the concept of
Economic Zones comes in. Before SEZ there was inception of Export Processing
Zones (EPZs) which can be defined as a unit bearing clusters of specially-designed
zones of aggressive economic activity for the promotion of export. The main concept
of Export Processing Zones was conceived in the early 1970s to promote the growth
of the sickening export business of India. Government of India had been supported
with respect to fiscal incentives, tax rebates and other exclusive benefits for the
growth of export.
A Special Economic Zone is a geographically bound zone where the economic
laws in matters related to export and import are more broad-minded and liberal as
compared to rest parts of the country. SEZs are projected as duty free area for the
purpose of frade, operations, duty and tariffs. SEZ units are self contained and
integrated having their own infrastructure and support services. Within SEZs units
may be set-up for the manufacture of goods and other activities including processing,
assembling, frading, repairing, re-conditioning, making of gold or silver and platinum
jewellery. The world's first known SEZ has been established in an industrial park set
up in Puerto Rico in 1947. In the 1960s, Ireland and Taiwan followed suit but in the
1980s China made the SEZs gain global currency with its largest SEZ being the
mefropolis of Shenzhen. China is the most successfiil country about SEZ in the world.
India has taken the concept of Special Economic Zone (SEZ) from China. The SEZ
has specially formed to promote industrial production especially for export. These are
also called as Export Oriented Units (EOU). From 1965 onwards, India experimented
with the concept of such units in the form of Export Processing Zones. But a
revolution came in 2000, and then Commerce Minister made a tour to the Southern
127
Provinces of China. After retximing from the visit, he incorporated the SEZs into the
EXM PoUcy of India. Five year later, SEZ Act 2005 was introduced and SEZ Rules
were formulated in 2006.
The main objectives of the SEZ are to promote domestic, foreign investment
and create employments, to promote exports of goods and services in connection
therewith and would include industrial, commercial and social infrastructure to
develop infrastructure such as construction of standard design factory building, and
operation and maintenance of infrastructure in the zone through private, joint or State
sector in the Export Processing Zones converted into SEZs, to simplify procedures for
development, operation and maintenance of the Special Economic Zones and for
setting up units and conducting business, to provide single window clearance for
setting up of a SEZ and many related matters related to State.
Role of SEZ in International Business
SEZ is world-class standards for the Government wants to provide the best
facilities to the units that are set-up in the SEZs in India. Facilities and features of
Indian SEZ have atfracted many companies to set-up their units in Indian SEZs.
Features and facilities of Indian SEZ that proves beneficial to the units within the SEZ
is that they do not require separate documentation for EXIM and customs policy, the
units' performance is monitored by the Development Commissioner and the supplies
that the SEZ receives from the DTA are treated as exports. Also the various positive
features and facilities of Indian SEZ are that the Central sales tax that the units pay on
the purchase of domestic products are reimbursed, the units in the SEZ are given a
write-off up to 5 per cent on imrealized exports and exemption from paying excise
duty on the goods that are required for setting-up the units in the SEZ.
Facilities to Special Economic Zones
i) SEZ units may import or procure from the domestic sources, duty free, all
their requirements of capital goods, raw materials, consumables, and office
equipments for setting up of units or fiirther operations without any license or specific
approval.
ii) Goods imported or procured locally duty free could be utilized over the
approval period of five years. 100 per cent income tax exemption for first five years
and 50 per cent for two years thereafter.
128
iii) 100 per cent FDI is allowed in manufacturing sector in SEZ units under
automatic route except sectors requiring industrial license. 100 per cent FDI allowed
in items reserved for small-scale units.
iv) Setting up of off-shore banking units allowed in SEZs. They would be entitled
for 100 per cent income tax exemption for three years and 50 per cent for next two
years. More flexible exchange control regulations for units in SEZs and for external
commercial borrowing up to $ 500 million in a year. Exemption from service tax to
SEZ units.
Significance of Special Economic Zones
i) 15 year corporate tax holiday on export profit, 100 per cent for initial 5 years
and 50 per cent for the next 5 years. Allowed to carry forward losses and no license
required for import made under SEZ units.
ii) Duty-free import or domestic procurement of goods for setting-up of the SEZ
units and goods imported locally are duty-free and could be utilized over the approval
period of five years.
iii) Exemption from customs duty on import of capital goods, raw materials,
consumables and spares. Exemption from Central Excise Duty on the procurement of
capital goods, raw materials, consumables and spares from the domestic market.
iv) Exemption of payment of Cenfral Sales Tax on the sale or purchase of goods.
Exemption from payment of Service Tax. The sale of goods that is manufactured
outside the SEZ and which is purchased by the unit is eligible for deduction and such
sale would be deemed to be export.
v) The SEZ unit is permitted to realize and repatriate to hidia the frill export
value of goods or software within a period of twelve months from the date of export.
vi) 'Write off of imrealized export bills are permitted up to an annual limit of 5
per cent of their average annual realization. No routine examination by Customs
Officials of export and import cargo.
vii) Setting-up off-shore Banking Units allowed (OBUs) in SEZ. OBUs allowed
100 per cent income tax exemption on profit earned for three years and 50 per cent for
next two years. Exemption from requirement of domicile in hidia for 12 months prior
to appointment as Director. Since SEZ units are considered as 'public utility services',
no strikes would be allowed in such companies without giving the employer 6 weeks
prior notice in addition to the order conditions mentioned in the hidustrial Disputes
Act, 1947.
129
viii) The Government has exempted SEZ units from the payment of stamp duty
and registration fees on the lease or license of plots. External commercial borrowings
up to $ 500 million a year allowed without any maturity restrictions. Enhanced limit
of Rs. 2.40 crores per annum allowed for managerial remuneration.
Santacruz Electronic Export Processing Zone (SEEPZ)
In India, there are many SEZ projects implemented prior to SEZ Act 2005,
situated in different States, namely, SEEPZ (Maharashtra), Kandla (Gujarat), Cochin
(Kerala), MEPZ (Tamilnadu) and Falta (West Bengal). (Table No.-3.10). SEEPZ was
established in 1974 in Mumbai. It is located in the heart of metropolitan city Mumbai,
SEEPZ has access to Mumbai's vast commercial, industrial and social infrastructure,
its efficient communication network, a competent ancillary base, a well-developed
financial and credit structure and a skilled and experienced urban workforce. There
are 162 units engaged in software and hardware development with 800 IT
professionals. Export of Software is Rs. 6,270 million that of Hardware is Rs. 4,330
million.
Table No.-3.10: List of Operational Special Economic Zones in India established by Central Government
Sr. No.
1
2
3
4
5
6
7
Name of SEZs
SEEPZ SEZ
Kandla SEZ
Noida SEZ
MEPZ SEZ
Cochin SEZ
Falta SEZ
Vishakhapatnam SEZ
Location
Mumbai
Kandla
Noida
Chennai
Cochin
Falta
Vishakhapatnam
State
Maharashtra
Gujarat
Uttar Pradesh
Tamil Nadu
Kerala
West Bengal
Andhra Pradesh
Type
Electronics, Gems and Jewelry
Multi-Product
Multi-product
Muhi-product
Multi-product
Multi-product
Muhi-product
Source: Ministry of Commerce and Industry, Department of Commerce.
SEEPZ also houses a Gems and Jewelry complex set-up in 1997-98, entirely
dedicated to exports. Total turnover of companies in SEEPZ is Rs. 25,170 million
including Gems and Jewelry units. SEEPZ is just 6 km. away from Mumbai's
International Airport. SEEPZ is also well connected with various parts of city by local
trains and the urban transport service. Point-to point dedicated data communication
facilities are also available at SEEPZ.
130
C3
J -
es u es
9t
JB
^ u
E e a
U A
• MN
o. m o o h. es a u ! /3
• • w* 1-H
1
d Z _« z H
c
o
CO
O a 2
c S l/> 1 ) ^—V
^1 •« h c«
o o
O H
/ • - "S
d J 3
- tS
y ^
s ;3
.c
c 2
-o
o
-o >
<
-o <L>
O
Z
"O u > 2 <
T3 a>
« • ^H •4->
o z "o u > 2 o. o. <
•T3 U
W O
Z • o u > 2 <
4
1
m
O N
U-)
•<t
VO O N
( N ( N
r |
r-o TT^
rf
1 - ^
as
f N
t ^ ( N
m r-
§ ^ c o ^
- H
r-
0 0
d
0 \ r o NO
m f«^
• *
CN NO Tj-
f N
• *
( N
O f S
• — 1
•*
u 13 3
(X
( N
l O
1—H
<n
o C30 r»^
d 0 0
r-o o «
NO r-cn^
^
r
IS fl ca
Z
r<-i
, — 1
d
( N <0
m r~-r~-_
l O m 00^
NO 0 0
r-
ON T )
r-
( N
^
T3 to
X ) ca 60 (5 CO ia 3
<
^
• *
d
T t
d
NO r-r i
NO t ^
0 0 f - ^
r«^ T - H
0 0 ^—i
tr\^
r n
m
•1-H
> C3 9 C
<
yr\
f S O N
NO
•<*
f N r-•<t'
0 0 1 — <
oo'
0 0 0 0 0 0 ^ M
0 0 O N ON^
m
r~-
60 C8
Z
NO
oo d CN
NO
NO
0 0
0 0 °\ oo' 0 0
0 0 NO 0 0
NO NO O N
oC
NO
o
o
«
1/1 CO
CO
o
3
o c o o
UQ co' t! J3 Oi
CO
CO
m
Maharashtra is prominent State for the investment in Special Economic Zones.
There are 63 Special Economic Zones have been notified by the Ministry of
Commerce and hidustries in December, 2010. In fact, 143 SEZs have received formal
approval. Among 143 SEZ proposals, many SEZs are within the influence area of
Delhi-Mumbai hidustrial Corridor (DMIC). The number of SEZ projects in the State
has more than doubled in one year. In 2007, the SEZ projects were numbered 75, it
rose up to 143 in 2010. The number of SEZ Projects within the influence region of
Delhi-Mumbai Industrial Corridor (DMIC) in Maharashtra has almost doubled from
April 2007 to December, 2010.
Fig. No.-3.8: Scenario of Region-wise Special Economic Zones in Maharashtra
Number of SEZ
I Konkan
iPune
! Nashik
I Aurangabad
I Amravati
I Nagpur
Area (ha) of SEZ
Investment in SEZ
• Konkan
• Pune
• Nashik
• Aurangabad
• Amravati
• Nagpur
I Konkan
I Pune
'Nashik
• Aurangabad
I Amravati
'Nagpur
Employment in SEZ
'Konkan
'Pune
I Nashik
I Aurangabad
' Amravati
Nagpur
Source: Table No.-3.11.
132
The region-wise SEZ information is given in the Table No-3.11 and Fig. No.-
3.8. The State has adopted the Special Economic Zones (SEZ) policy with effect from
lO'*' February, 2006 and is implementing the SEZ so as to boost the economic growth
of the State. The State has received 233 SEZ proposals up to 31" December, 2010.
Out of these, 143 SEZ were approved by the Central Government and 63 of them are
notified SEZs. Out of 143 SEZ projects, 73 projects are approved in Konkan region
followed by Pune (41), Aurangabad (12). There are 27 SEZ projects are notified only
in the Konkan Division having an approved area of 25,291 hectares land with an
investment of Rs. 1,25,422 crores with 43.25 lakhs employment. The SEZ area under
Pune Division has approved 5,224 hectares land with an investment of Rs. 45,033
crores and generating employment of 10.68 lakhs. The number of SEZ in Nagpur
Division has less approved but investment in the division is in the third place after
Konkan and Pune Division. The approved area in Nagpur Division is 2,998 hectares
with an investment of Rs. 8,818 crores. The Amravati, Nashik and Aurangabad
Divisions have least investment of Rs. 2,776 crores, Rs. 3,083 crores and Rs. 3,855
crores respectively in the State. In December, 2010, the total area has approved for
SEZs in the State is 39,966 hectares with an total investment of Rs. 1,88,987 crores
with an proposed employment of 63.56 lakhs.
Maharashtra had announced its Special Economic Zone (SEZ) policy in the
year 2001. Though the State has the maximum number of SEZs approved in the
country, the notified SEZs are just 27 per cent of total approved SEZ. This ratio is the
lowest as compared to other States. The total land required for approved SEZ in the
State was 47,500 hectares. But the actual land acquired for the SEZ was 4,150
hectares. The ratio is a meager 8.72 per cent. This is because of protest by the farmers
and land owners against the SEZ entrepreneurs about the value of the land, their
rehabilitation problems and uncertainty of Government policy. The ratio is very low
as compared to other States such as Andhra Pradesh and Gujarat, which have a ratio
of 68.23 per cent and 42.37 per cent respectively. The delays in notification have
acted as a hindrance in the establishment of SEZs in the State subsequently acting as a
bottleneck for the proposed investments in State, along with the potential employment
generation, which has been one of the main objectives of establishment of SEZs in the
country.
133
3.20 Specialized Industrial Parks
In Maharashtra, there are many SpeciaHsed Industrial Parks such as,
Floriculture Park, Specialised Food Parks, Specialised Silver Zone and Specialised
Textile Parks which helps industrial development in the State.
3.20.1 Floriculture Park
Floriculture means agriculture of flowers. This practice can do on simple,
semiarid, dry-land with irrigation area. Maharashtra has emerged as a leading State
for production, export and consumption of flowers in the country. State Government
has encouraging floriculture and horticulture as the subsidence development of the
main agriculture. MIDC is promoting a Floriculture Park at Talegaon near Pune, over
200 hectare of area, ideal for setting up of a Floriculture Park. This park has
developed as a world-class facility for production of flowers of different types and
varieties. There are many floriculture parks in Baramati and Purandar tahsils in Pune
District, which exports their production to Europe and Gulf countries by cargo. State
Government has subsidized Green House Project to increase production of flowers.
This flower has great demand at Gulf and European countries.
3.20.2 Specialized Food Parks
Maharashtra Industrial Development Corporation is setting up Specialized
Food Parks, which would provide infrastructural support for the promotion of food
processing industry and cash in on Maharashtra's agricultural and farming resources.
Alkud Mane at Rajuri, Sangli Food Parks is one of the examples. This park is being
planned on a 305 acre land and Cebeco Company is a consultant for the project. The
specialised Food Parks are located at specialised food producting areas such as grape
producing region in Nashik and Sangli district. Banana producing region in Jalgaon
district, orange producing region in Vidarbha and mango and cashew producing
region in Konkan. The location is the best suited for processing of grapes, turmeric,
mangoes, pomegranates, citrus and custard apple. Food Parks requires common
facilities such as cold storage, packaging facilities, effluent treatment, social
infrastructure and transportation network. Butibori Food Park is located near Nagpur
and is well-connected highly industrialized city. It is also one of the largest orange
growing areas in the country; hence MIDC has decided to set up a Food Park at
Butibori near Nagpur. The Butibori Food Park being developed over an area of 60
acres shall be developed in association with MIDC, and would be ideal for orange,
lemon, sweet lime, pineapples and tomato processing units. These special Food Parks
134
are beneficial for the farmers of horticulture who get good market value for their
products. The net value is added more than five to ten times in their original
productions. Contract farming is such type of farming where farmers can grow
according to the demand by Food Park.
3.20.3 Specialized Silver Zone
Gold, Silver and Platinum are the high value metals from which crafts,
utensils, jewellery are made by high skilled labours. Maharashtra is multi-faceted
State with an abundance of diverse skills and resources. Traditionally the State was
well known for the crafting and making of bronze and silver utensils. The skills of the
silver artisans fi-om the Kolhapur area are world-renowned. MIDC is setting-up a
specialized Silver Zone to encourage these artisans and catch the potential of the
silver markets. The zone will offer integrated infi-astructure of international standard
and common facilities tailor-made for the silver units. The zone will be located at
Hupri within the Kagal- Hatkanangale area near Kolhapur.
3.20.4 Specialized Textile Parks
Maharashtra Industrial Development Corporation is developing exclusive
Textile Parks in the State to maintain its leadership position in textile exports and
production, with specific trade and industry oriented objectives in mind. The Nardana
Textile Park is being set up 25 km. fi-om Dhule. The total area of the park is
approximately 648 hectares, on which 72 plots are demarcated. Nardana Textile Park
is located near National Highway No. 3 which connects Mumbai, Nashik, Indore, and
Agra also connected by railway line from Surat to Bhusaval. The Dhule airstrip, just
25 km. away from the industrial area, will provide accessibility to the park and
facilitate a quick movement of material. Vidarbha and Marathwada are fraditionally
cotton growing areas. In some pockets, cotton is a monoculture crop grown
extensively. The Butibori Textile Park is spread over 100 hectares of land and close to
the cotton growing areas of Vidarbha. The park is situated 28 km. from Nagpur city. It
is the second administrative capital of Maharashfra and is set to be a major center for
textile production in the country. It is a part of the Butibori industrial area, known to
be one of the biggest, most meticulously planned, modem industrial areas in the
country, spread across an area of 244 hectares. Ambemath Textile Park, near
Ambemath, a suburb of Mumbai, has developed an ultra-modem industrial area on
507 hectares of land with the help of Maharashtra Industrial Development
Corporation.
135
3.20.5 Information Technology and Information Technology Enabled Services
(IT and ITES) Parks
Government of Maharashtra has setup several Information Technology and
hiformation Technology Enabled Service parks within the State with the aim of
providing momentum to the IT industry. These Information Technology Parks are
welcome national and international IT houses with some incentives and good
infrastructural faculties. Maharashtra has 30 Public IT Parks and 177 Private IT Parks
in 10 cities which provide employment to 30 per cent of the country's IT
professionals. Maharashtra contributes over 30 per cent of the total software exports
fi-om India. Mumbai and Pune have become main destinations for IT and ITES
exports. Government of Maharashtra has developed the Mumbai-Pune Knowledge
Corridor, a fast emerging IT hub of the country. In addition to Mumbai-Pune, the
Nashik is well emerging industrial and IT city and make a triangle for IT hub in the
country. Mumbai-Pune and Nashik are well connected by road and railway. Mumbai
and Pune are well connected by six-lane Express way for fast carriage. Six major IT
parks setup in the two cities, three are in Mumbai and three in Pune, providing world-
class IT infi-astructure, housing the reputed names from the international and national
IT arena such as TCS, Wipro, Infosys, Satyam, Tech-Mahindra and Matrix.
3.20.6 International Technology Parks
In spite of the IT, BT Parks, the Maharashtra Industrial Development
Corporation has proposed development of International Technology Parks at Nagpur
and Pune. This park would be in joint venture with Ascendas, Singapore based firm
and Maharashtra Airport Development Company (MADC). The joint venture
partnership will have a stake-holding of 74 per cent by Ascendas and 26 per cent
equity of MADC by offering land. MIDC is helping hand with these companies to set
up state-of-art structure for their development. At Nagpur, the proposed International
Technology Park will consist of 4.5 million ft^ of built-up space spread over 25
hectares site within the up-coming Multi-Modal International Hub Airport (MIHAN)
which will require an investment of Rs. 1,025 crores. These two mega projects at
Pune and Nagpur are expected to offer employment to near about 70,000 people upon
the completion of project. The proposed International Technology Park at Pune will
have 2.5 million ft built-up space spread over 10 hectares and an investment of Rs.
600 crores. These two cities have international plight and availability of resources at
large extent with skilled manpower.
136
\ -
3.21 Foreign Direct Investment (FDI)
The United States and Mauritius have invested in State's industrial sector with
14 per cent and 13 per cent share respectively. Maharashtra's foreign direct
investment amounts to 22.9 per cent of the country's total FDI, it has 20.6 per cent
projects of the 20,643 in India, and the total investment is Rs. 97,799 crores. Of the
proposals received in India, the State's share in industrial proposals, investment and
employment is 18 per cent, 10 per cent and 20 per cent, respectively. Besides
Mumbai, Thane and Pune, second-tier towns like Nashik, Aurangabad, Nagpur and
Kolhapur have also emerged as industrial centers, resulting in remarkable industrial
growth in the State.
Table No.-3.12: Foreign Direct Investment in Maharashtra
Sr. No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Industry Group
IT Industry Financial Services Hotel and Tourism Industry Business Management Consultancy Transportation Cement and Ceramics Power and Fuel Chemicals and Fertilisers Electrical and Electronics Paper and Paper Pulp Textiles Food Processing Drugs and Pharmaceuticals Automobile Industrial Machinery Plastic and Rubber Goods Machine Tools or Industrial Instruments Others Total
Number of
Proposals 762 667
95 369 108 58 39
197 212
31 122 173 121 112 261
27 89
778 4,221
Per cent
18.1 15.8 2.3 8.7 2.6 1.4 0.9 4.7
5 0.7 2.9 4.1 2.9 2.7 6.2 0.6 2.1
18.3 100
Investment (Rs. crores)
12,765 11,858 6,326 4,962 4,124 3,727 2,841 2,666 1,467 1,323 1,051 1,039 1,012
895 771 767 717
26,647 84,958
Per cent
15 14
7.5 5.8 4.9 4.4 3.3 3.1 1.7 1.6 1.2 1.2 1.2 1.1 0.9 0.9 0.8
31.4 100
Note: Figures are from August, 1991 to September, 2010.
Source: Economic Survey of Maharashtra, 2010-11.
During the period August 1991 to September 2010 the State received 4,221
number of Foreign Direct Investment proposals accounting to Rs. 84,958 crores of
which 42 per cent were completed and 7 per cent are under execution, which
constituted 52 per cent and 9 per cent of investment respectively. The largest share
contributed in the number of proposals by Industrial Machinery (261) followed by
137
Electrical and Electronics (212), Chemicals and Fertilisers (197), Food Processing
(173) (Table No.- 3.12 and Fig. No.-3.9).
Fig. No.-3.9: Industry Group-wise Foreign Direct Investment proposals in
Maharashtra
I IT Industry
I Hotel and Tourism Industry
I Transportation
I Power and Fuel
I Electrical and Electronics
I Textiles
Drugs and Pharmaceuticals
Industrial Machinery
Machine Tools/ Industrial Instruments
• Financial Services
• Business Management Consultancy
• Cement and Ceramics
• Chemicals and Fertilisers
• Paper and Paper Pulp
Food Processing
Automobile
Plastic and Rubber Goods
Source: Table No.-3.12
The investment amount of these proposals is Rs. 767 crores, Rs. 1,467 crores,
Rs. 2,666 crores and Rs. 1,039 crores respectively. The largest share invested in the
FDI by IT industry amounting of Rs. 12,765 crores followed by financial services of
Rs. 11,858 crores and hotel and tourism industry of Rs. 6,326 crores.
In this chapter many factors are studied which strongly affected on industrial
investment like geography, minerals, tourism, infrastructure, transportation, power,
population and human development index. Some of these factors are directly affects
on industrial development while some are indirectly.
138
Bibliography
1. www.wikipedia.org.
2. Directorate of Geology and Mining, Nagpur, Economic Survey of Maharashtra,
2011-12.
3. Census of Maharashtra, 2001 and 2011.
4. Economic Survey of Maharashtra, 2011 -12.
5. Seth Ranjana (2010), "Industrial Economics", Ane Books Pvt. Ltd. New Delhi,
pp. 247 and 249.
6. Ministry of Commerce and Industry, Department of Commerce.
7. Directorate of Industries, Government of Maharashtra, Economic survey of
Maharashtra 2010-11.
139
