Of the nearly 800 companies that had promised to set up new units in the city two years ago, 284 have already begun production while another 175 have finished construction, making Pune the lead district in terms of realisation of Memoranda of Understanding (MoUs) signed with the state government during the Make in India week in 2015.
The figures released by the Directorate of Industries show that Pune is far ahead of other districts in converting the promises into actual investments. In percentage terms, Mumbai has fared better, but only 65 MoUs had been signed for Mumbai at that time. Two years later, 52 of those companies have begun production. These are mostly technology companies with relatively low investments and lesser employment potential.
The Make in India week was a flagship event of the newly inducted Devendra Fadnavis-led government in the state in 2015. A total of 2,512 MoUs were signed with promised investment to the tune of Rs 28,869.12 crore. These investments were supposed to generate employment for an estimated over 17 lakh people.
In addition, 338 MoUs were signed for mega projects with estimated investment of Rs 3.65 lakh crore. Projects with investment of more than Rs 100 crore and employment-generation potential of more than 1,000 people are termed as mega projects. The government data shows that out of the 2,512 MoUs signed in the MSME sector, only 738 have been converted into actual investment with the beginning of production. Another 405 have finished their construction cycle while 1,028 have only taken initial steps towards setting up their units. The total investment by the units that have begun production amount to Rs 4,196.46 crore. Together, these have created 34,922 new jobs.
Among the MoUs signed for mega projects, 282 have either already begun production or are about to start production. Their total investment comes to about Rs 2.19 lakh crore. There is no district-wise break-up for the location of these mega projects. In Pune, of the Rs 10,574.31 crore of investment that was promised, investment worth Rs 1,184.93 crore has been realised. The 175 companies that have finished construction work and are about to begin the production phase have promised investment of another Rs 1,268.96 crore.
Anant Sardeshmukh, director general of the Maharashtra Chamber of Commerce Industries and Agriculture (MCCIA), said that an improvement in business atmosphere, especially in the automotive and manufacturing sectors, had been the reason for a pick-up in the setting up of new units. “The units which have come up are vendors supplying to the original equipment manufacturers (OEMs),” he said. Sardeshmukh said he anticipated further investments as the automobile sector gears up for increased demand after the implementation of the Goods and Services Tax (GST) and the waning effects of demonetisation.
Source: Indian Express
