The Maharashtra government’s approval for four mega ultramodern technology projects is considered one more step in retaining the state’s prime position on India’s industrial-technological map. Already, Maharashtra has emerged as the state to attract the largest share of foreign direct investment during the first quarter of the current financial year.
The latest announcement by the state government is estimated to bring in an investment of Rs.1,17,220 crore into the state. These projects will be established in Marathwada, Vidarbha and Western Maharashtra regions. The announcement says two of them will be in Pune and at Panvel, just outside Mumbai. Although highly technical, they have a potential of creating around 29000 jobs. Hence, they will contribute to the state GDP and speed up its progress towards becoming a trillion-dollar economy.
The decision to clear these projects was taken in a cabinet sub-committee meeting, presided over by chief minister Eknath Shinde. The CM has expressed confidence that the approved projects will lead to significant investments in the semiconductor and electric vehicle manufacturing sectors. Moreover, the clearance will aid Maharashtra in emerging as the leading state in electric vehicle manufacturing.
The Israel-based Tower Semiconductor Company has proposed to set up a high-technology semiconductor manufacturing project in Panvel in two phases. Tower Semiconductor, in collaboration with the Adani Group, will establish the semiconductor manufacturing facility at Taloja MIDC in Panvel. The first phase will comprise the firm’s investment of over Rs.58760 crore. The company has planned to invest over Rs.25000 crore during the second phase. Thus, taking its investment to over Rs.83900 crore, leading to the creation of more than 15000 skilled jobs.
The cabinet sub-committee has given a green signal to setting up of an electric vehicle manufacturing project. It is proposed to be set up by Toyota Kirloskar Motor Company. Its location will be at Chhatrapati Sambhaji Nagar, the industrial hub in the backward Marathwada region of the state. According to the official announcement, the firm has planned to invest over Rs.21200 crore. The project will boost the state’s role in technological innovations, research and development. Moreover, it will strengthen the local supply chain through ancillary activities. The chief minister has expected that this industry will create around 12000 jobs.
The third approved project will involve production of electric vehicles as well. Skoda Auto Volkswagen, India, will be setting up this project at a total investment of Rs.12000 crore in Pune. Although it will create just around a thousand jobs, it will augment the already strong industrial base of the area.
The other underdeveloped region, Vidarbha, will benefit due to the approval for a unit by Raymond Luxury Cottons. The company will set up a project for spinning, yarn dyeing, weaving jute, weaving cotton, jute, and cotton production in Amaravati district in the region. The project is comparatively smaller as it will bring an investment of just Rs.188 crore but will mark an impressive beginning for the growth and development of the textile sector as that part of the district is rich in cotton cultivation.
With the estimated investments the new four projects will bring, at their collective amount of over Rs.1.17 lakh crore, the total investment projects cleared by the state government in the last two months exceed Rs.2 lakh crore. In the last meeting of the cabinet sub-committee on industries, the state government had approved investment projects worth Rs.80,000 crore, the announcement has said.
Highlighting the positive impact of the new investments, Shinde said that these projects will promote technological innovations, give a fillip to research and development while enhancing and developing a robust local supply chain. They will benefit micro, small and medium enterprises significantly. Provision of training and skill development opportunities for local workers will emerge due to enhancement of their employability and skills in new technologies.
After the project has received the state’s approval, a joint application submitted by Israel’s Tower Semiconductor and the Adani Group will be under review by the India Semiconductor Mission (ISM) and the IT Ministry, according to some experts. As and when approved, this project will be India’s second chip manufacturing facility and the sixth semiconductor plant in the country, focused on either manufacturing, testing or packaging silicon chips.
India currently has five government-approved semiconductor projects. In addition to a chip fabrication unit being constructed in Dholera, Gujarat, four chip packaging facilities are under development. Three of these packaging units are in Sanand, Gujarat, while one is being built in Morigaon, Assam. The total proposed investment in these facilities is Rs 1.5 trillion. The Dholera chip fabrication unit is a joint venture between the Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation, with a capacity of 50,000 WSPM.
With the new investments, Maharashtra’s topmost position will be entrenched more firmly. So far, Maharashtra has secured half of India’s foreign direct investment (FDI) in the first quarter of the 2024-25 financial year, deputy chief minister Devendra Fadnavis has said. quoting the quarterly report from the Department for Promotion of Industry and Internal Trade (DPIIT), Fadnavis says that Maharashtra has attracted Rs.70795 crore, or 52.46 percent of the country’s total FDI. According to DPIIT statistics, Maharashtra has claimed the largest share, followed by Karnataka, Delhi (Rs.10788 crore), Telangana ( Rs.9023 crore) and Gujarat (Rs.8508 crore).
Investments in Maharashtra have shown an impressive increase, compared to the previous two financial years. The investments have risen from Rs.118,422 crore in 2022-23 to Rs.125,101 crore in 2023-24.
Fadnavis has proudly announced this achievement through his post on the social media platform X to highlight the state’s economic success. “In just two years and three months of us being in power, we have brought Rs.314,318 crore’s investment, and still the second quarter numbers are yet to be in.” The DPIIT figures further show that Maharashtra has attracted FDI totalling Rs.603,224 crore, between October 2019 and June 2024. The majority of these investments has been made into services, computer software and hardware as well as in the trading sector.
With the arrival of Lord Ganesh for the ten-day festival, Maharashtra has received this heartening news. The state’s forward march will continue with the blessings of the God of Wisdom.
A Column By
Dilip Chaware – Senior Editor
A media professional for 43 years, with extensive experience of writing on
a variety of subjects; he is also a documentary producer and book author.
