While one industrialist bringing in an unending queue of investors has been grabbing headlines, closer home a state government has been able to do something quite impressive as well. Maharashtra is the most badly affected by the current covid pandemic, driven in large parts by the impact on Mumbai.
But the state is focussing on growth even in these testing times, recently clinching deals in excess of 16K cr with governments across the globe, with another 10K in the pipeline. In today's post, we look at where the money is coming from the impact it could have on the state.
Where is the big money going?
The biggest chunks of investment come from two companies -UPL Chemicals which will invest 5K cr, and something that may not be too popular in these times, a Chinese company Great Wall Motors which will invest 3770cr for an auto plant. These two investments together will generate close to 5000 jobs in the state.
The "Magnetic Maharashtra" initiative was kickstarted in 2018 in to attract foreign and domestic investments in the state. The intent and ability of the government to think ahead and work on bringing in investments in the state despite the uncertainty that the current pandemic brings has been appreciated by industry stalwarts including the CII.
Who are the other investors?
Besides the two major investments that make up a bulk of the total invested amount the state has also seen investments from Korean, American and Singapore based firms. Exxon Mobile, Sscendas Logistics, Isambe Logistics, and Rakbank Data Center have all committed to investments in the state.
Amongst Indian firms, Varun beverages the largest franchisee for Pepsi in India, as well as the Hiranandani Group have committed to make investments. These smaller investments range across the spectrum from 120cr to 1500cr.
How much money will actually come in?
While MoUs are great for morale, the actual prosperity only comes in when the actual money and jobs enter the market. The first edition of the summit back in 2018 had brought in 12 lakh crores worth of MoUs via 4106 MoUs. In a similar event with the "Make in India" theme held in 2016, 63% of the close to 3000 MoUs were completed.
While the investments in the current round pale in comparison to the earlier rounds, the more focussed nature of the MoUs could translate into a better strike rate. It would be interesting to watch how much of this materializes, and how other Indian states work to boost investments in their respective states.