The points to be discussed for this ppt are as follows
Development of Maharashtra & potential for growthIntroduction:-“In human society too much wealth or too much poverty is a great impediment to the higher development of soul. It is from the middle classes that the great ones of the world come. Here the forces are very equally adjusted and balanced.”Swami VivekanandWith this statement I start intorduction of my paper. The state of mh is a developing state where there has been conitnous progress in all the sectors of the economy. We can see that there are 3 sectors – agri, indst, & service sector. Agri sector being bakbone of our economy due to huge growth of service sector agri sec has fallen down. Reoprts say that* Agricultural sector in Maharashtra has fallen form 9.0% in 2006-07 to 5.8% in 2007-08. whereas* Industrial sector in Maharashtra has come down from 12.6% in 2006-07 to 10.3% in 2007-08, and* Service sector in Maharashtra has gone up from 8.5% in 2006-07 to 9.1% in 2007-08. Here lies the danger as well as an opportunity for the State of Maharashtra, Which forces me to do the research on the said topic.The objectives to carry on the research are as follows that is to ……..Objectives:-* To analyze the potential of Tier II cities towards the economic development in Maharashtra.* To analyze different perspectives of the topic from both corporate as well as research scholars.* To analyze various booming sectors which have contributed towards the overall economic development.
Themes:-*Government policies in terms of industrial policies, SEZs, Tax regimes…* Potential in reality sector, outsourcing, IT sector, retail sector, Educational Hubs..*Availability of skilled resources, economies of scale, infrastructural facilities…
Income of population – inclusive of HRA, CCA which helps to find out the cost of living in that city.Helps to know the level of Economic Development of that particular region. Metros are basically regarded as Tier I cities, relatively smaller cities are regarded as Tier II cities whereas smaller cities are considered as Tier III ones. Here is the explanation why they are considered so:-As Indian economy experiences the boom in all sectors triggered by its economic and investment policies, the metros or the Tier I cities are the ones that are inundated with burgeoning investments in the industrial and the services sector. Along with large-scale investments has boomed the realty sector creating congestion, arising out of an increasing demand for residential and commercial properties. This congestion in realty structures has forced the respective governments and many investment companies to seek out for alternative smaller cities leading to a demand for Tier II and III cities.One of the basic reasons for investments flocking in to the smaller cities is available properties and affordable prices. Moreover, the special initiatives taken by the respective governments in providing the smaller cities with infrastructural facilities and creation of SEZs, has played a vital role in promoting these small towns into cities of the future. Keeping in view all the congenial factors necessary for setting up corporate infrastructure, the investing companies ranging from pharmaceuticals to financial institutions, automobiles to the IT & ITES sectors; to the retail and real estate sector are opting for the smaller cities transforming them into India's fastest growing cities in a matter of few years.While the realty trend in Tier I cities have reached a saturation point, with the yield gap witnessing significant margin of 9.5 to 10 per cent, the Tier II cities record a yield of 10.5 to 11.5 per cent. However, the emerging winners in the present real estate scenario of India are the Tier III cities, which offer greater yields of up to 12 percent. This rising prices and promising future of these cities are driving investors to buy properties predicting long-term gain in years to come.
Geographical location:- Pune city is closely located to Mumbai city at a distance of 170 kms. Nearby industrial area Pimpri-Chinchwad, Expansion of geographical limits of Pune corporation Close to Mumbai Port, Mumbai as a big market i.e. availability of customersHistorical Base:- Shaniwar Wada, LalMahal, Ganeshutsav & most famous PuneriSadashivPeth and puneri people.Educational Hub:- UoP well known as Oxford of East and Expanding Deemed & Foreign Universities. Potential for educational / service sector to grow. Market not only for universities but also for various allied coaching institutes, book publishers – Sharp, Pragati, Nirali & ‘Thakur’Skilled Resources:- Puneties with exposure to industrial sector, service sector – IT industryRealty Sector:- with no place for real estates to explore in Mumbai, a shift to Pune City. Areas for scope – Baner, Chakan, Mulshi, Katraj, Talegaon, PCMC – Golden Triangle (Pune, Mumbai & Nasik)Infrastructure:- Light, water, flyovers, expressways, BRTs, Airports, Railways – connecting pune to all major cities in India and almost all cities in Maharashtra.
SEZ is a geographical region that has economic laws different from a country’s generally applicable economic laws, with the underlying objective being an increase in economic growth and activity through increased foreign exchange.It is a duty free area which is meant for the purposes of trade operations, duties and tariffs for investors.
A SEZ may be established either jointly or severally by the central govt, state govt or any person for manufacture of goods or rendering services or for both or as a free trade and ware housing zone. Min investment required for sector specific is Rs 250 cr. Or Rs 50 cr. Net worth criteria. and for multi product SEZ is Rs 1000 cr. or Rs. 250 cr. Net worth criteria
1) In- Principle Approval:-Board of Approval grants In- Principle approval in cases where the SEZDeveloper is not having the land in its possession either by ownership or lease.2) Formal Approval:-Once the SEZ Developer is in possession of the land either by ownership orlease, and submits the details of the land to State Govt. and to the BoA and theState Government recommends the case, BoA grants Formal Approval.3) Notification of SEZ:-After Formal Approval by BoA , the details of the land (with Survey Nos. andMap) with a certificate from the concerned State Government or its authorizedagency stating that the developer have legal possession and irrevocable rightsto develop the said area as SEZ and the said area is free from all encumbrancesand inspection report of Development Commissioner SEZ, as given in the SEZRules are to be submitted to the Department of Commerce & Industry. Thereafterthe BoA notifies the SEZ by way of issuance of a notification. No furthernotification from Ministry of Finance is required.
Surprisingly Google search gave me Pune 2050 ….
Dr. vikhe patil FounDation’s Pravara Centre for Management Research & Development Research Paper Presentation “Emergence of Tier II Cities in Maharashtra” By Prasad S. Lagad
Agenda• Introduction - Maharashtra – Development of Maharashtra, Potential for business & growth• Objectives• Theme of Research• Tier II Cities – Basis of Classification• Pune City – Historic Base, Education, Tourism, Infrastructure• Special Economic Zone – Act, Rules & Regulations, Approvals, Tax benefits, Exemptions, EXIM Policy• SEZs in Pune – Why Pune city, Reasons for growth• Observations & Findings• Conclusion• Bibliography
Tier II Cities in Maharashtra AURANGABAD PUNE NAGPUR NASIK
Tier II cities – Basis of Classification• Tier - A relative position or degree of value in a graded group.• Tier I, II & III – Various criteria such as Real Estate, Infrastructural Development, Size of Population, Income of Population(Inclusive of HRA & CCA).• Reasons for classification of Tier I, II & III.• Tier II cities in Maharashtra – Aurangabad, Pune, Nagpur & Nasik.
Reasons to select• Geographical Location• Historic Base• Educational Hub• Availability of Skilled resources• Scope to explore real estate sector• Infrastructural Developments & Transport System
Special Economic Zones• Concept :-• Duty free areas with Integrated Infrastructure• High Point – Preferential Policy framework with a package of incentives• Benefits of local advantages within an international business environment• Business infrastructure combined with social facilities• Development, Administration and Operation to be undertaken by private sector to enable a hassle free operating environment• Envisage as areas of excellence to enable global companies to derive domestic advantages for doing business.
Special Economic Zone• Origin from Industrial Parks to SEZs – 1896• Chinese Experience – 1979-80• Extremely successful Chinese format to promote exports, attract FDI and foster overall economic growth• Shenzhen SEZ, started in 1981, has achieved 38% GDP growth. CAGR – the highest economic growth recorded in human history
SEZ FrameworkSEZ can be categorized on basis ofsector, function or location and required tohave processing as well as non processingarea.
Types of SEZ Sector – Multi – Product SEZ in port or Specific SEZ SEZ Airport Manufacture multiple goods in one sector or SEZ in an existing port or Manufacture one or more airport for manufacture across multiple sectors :-goods in a particular sector. of goods falling in two or Render one or more Trading & Warehousing more sectors or for services in a particular Render two or more trading and warehousing sector services in a sector or or rendering of services. multiple sectors.
Minimum Area RequirementSr. No. Type Minimum Area of SEZ1 Multi Product SEZ 1000 Ha.2 Multi Services SEZ 100 Ha.3 Sector Specific SEZ 100 Ha.4 Port Based 100 Ha.5 Airport Based 100 Ha.6 Electronic Hardware & Software including ITES 10 Ha. & min built up area of 1 lakh Sq mt. for IT7 Bio Technology 10 Ha. & min built up area of 40,000 Sq mt.8 Gems & Jewellery / Handicraft 10 Ha. & min built up area of 50,000 Sq mt.9 Non – Conventional Energy including Solar 10 Ha. & min built up area of energy equipment cell 40,000 Sq mt.10 Free Trade Warehousing Zone 40 Ha. & min built up area of 1 lakh Sq mt.
SEZ Layout Non-Processing Processing Area Area Non Processing area is intended toProcessing area is the demarcated area in provide support facilities to SEZ SEZ where units can be located for processing area and may include : manufacture of goods and services * Educational institutes Minimum processing area has been * Hospitals uniformly fixed at 50% * Hotels1000 ha – 5000 ha for multi product SEZs * Recreation and entertainment 100 ha for product specific SEZs * Residential and business complexes
• SEZ defined in India:- “Specifically delineated duty free enclave and shall be to be foreign territory for the purposes of trade operations and duties and tariffs” - EXIM Policy 2000, Chapter 9 Para 30
SEZ :- Indian scenario• To achieve its three-fold objectives of attracting FDI, increasing exports and accelerating the country’s economic growth the Government of India announced the introduction of Special Economic Zones (SEZs) in it Export-Import Policy of March 2000.
Legal framework for setting up SEZ isdefined under SEZ Act and State SEZ Policy State SEZ Policy Legal Framework SEZ SEZ Act, 200 Rules 5 2010
SEZ Approval• SEZ can be established either by Central or State government or privately. Type Minimum Net Worth Criteria Investment Sector Specific 250 cr. 50 cr. Multi Product 1000 cr. 250 cr.• Prescribed form should be submitted for approval to state government, which is forwarded to Board of Approval consisting of (Deputy Secretary, Ministry of Commerce & Industry, Department of Commerce, Udyog Bhavan, New Delhi)
Procedure of Board of Approval for SEZ SEZ Status Definition Formally Approved Given when land is available to set up the SEZ In Principle Approval Given when the land has not yet been secured but all other criteria are fulfilled Notified Final stage after which physical development work begins
Maharashtra’s Contribution Approval No of units Formal Approval 105 In Principle Approval 38 Notified SEZs 63Contribution in %age compared to whole India Approval %age Formal Approval 18.13 In Principle Approval 24.55 Notified SEZs 17.16
Growth of Maharashtra from SEZ IT / ITES Year Maharashtra State (Rs. In Crores) 2006-07 27625.00 2007-08 35374.00 2008-09 42360.88
Tier II cities Contribution Approval No of units Formal Approval 42 In Principle Approval 11 Notified SEZs 17Contribution in %age compared to whole Maharashtra Approval %age Formal Approval 20.38 In Principle Approval 05.33 Notified SEZs 08.25
Pune City Contribution Approval No of units Formal Approval 32 In Principle Approval 05 Notified SEZs 24Contribution in %age compared to whole Maharashtra Approval %age Formal Approval 15.53 In Principle Approval 02.42 Notified SEZs 11.65
Total SEZs Contribution of Pune Name No In Maharashtra 206 In Pune 61 Percentage 29.61 %
SEZ Facts• Total Investment made inclusive of Foreign Direct Investment (FDI) up to 31. 03. 2008 is Rs. 1578.43 Crores in Pune.• Employment Created:- Direct Employment – 20,274 Employees (Men-14908 & Women- 5366) Indirect Employment – 30,509 Employees in Pune.
Current Updates• US to invest in Indian Tier II cities• Software exports from Tier-II cities up: Minister• Infosys eyeing Tier-II cities for expansion• Tier II cities - The next IT destination• Dominos spreads to Tier II & III cities in India• Fujitsu Consulting eyes tier-II cities• It’s raining projects on Pune• Pune On top of state list with 13 SEZs @ Rs 8.8Kcr• IT Exports rise by 15.01 percent from SEZs.
Cons of SEZs• Lack of Proper Rules• Diversity in Development• Mangrove Destruction• Fertile Land Destruction• Land Requirements
Observation & Findings• Maharashtra State exploring Tier II cities.• Increase in FDI in Tier II cities.• Pune as a Tier II city makes a shift towards Tier I parameters.• IT sector in Pune city major contributor in SEZ exports.
Conclusion• Special Economic Zones have boosted Exports.• Increase in Trade & Commerce Activities due to SEZ.• Tier II cities got a gateway due to SEZ.• Development of Tier II cities in faster pace.• SEZ Policy needs revision from time to time.• SEZ to make more concrete rules with regards to Small Scale Investors & Developers.
Bibliography• Indian Economy – Ruddar Datt & KPM Sundharam 58th edition• http://www.economictimes.com/• http://www.sezindiainvest.com/• http://www.mumbai.stpi.in/• http://www.sezonline-ndml.com/• http://sezindia.nic.in/index.asp/• http://www.india-reports.com/• http://www.silliconindia.com/