The article depicts strategies for Maharashtra State to be power house and Self – sustained business model among the states of Indiain spite of COVID 19. Explained about how the Secured Governance concept offers a strategy that if government uses the value and valuation of smart city project in systematic way will minimise thecapital of public investment and uplift the trade and business climate in the state?
Overview of Maharashtra
Maharashtra is a leader among Indian states in terms of agricultural and industrial production, trade and transport, and education.The state occupies the western & central part of the country and has a long coastlinestretching nearly 720 km along the Arabian Sea.Maharashtra has a good presence of industrial clusters, especially automobile, IT &ITeS, chemicals, textiles and food processing clusters and offers lucrative investment opportunities in these sectors.
COVID 19 – Maharashtra
The first case of the COVID-19 pandemic in the Indian state of Maharashtra was confirmed on 9 March 2020. The state has confirmed a total of 14,541 cases, including 583 deaths and 1,879 recoveries, as of 5 May 2020.
As of 5May, 2020, Maharashtra accounts for 31.29% of the total cases in India as well as 37.11% of all deaths. As of 5May, the state’s case fatality rate is 4.01%, which is lower than the global average but significantly higher than other Indian states with large numbers of cases. More than two-thirds of the cases in the state have emerged from the Mumbai Metropolitan Region (MMR). Mumbai and Pune are among 10 coronavirus hotspots in the country identified by the Government of India.
Maharashtra Key Sector Statistics
Maharashtra is one of the largest, wealthiest and developed states in India.On the backdrop of scanty and uneven rains resulting in draught situation during 2018-19the State economy is expected to maintain the pace of growth, as registered in the earlier year. Asper the advance estimates, nominal GSDP of 2018-19 is expected to beINR. 2,660,318 crore, higher by10.3% over the previous year, while real GSDP is estimated to be INR.2,088,835 crore withexpected growth of 7.5% over 2017-18.Total expenditure for 2019-20 is estimated to be INR.404,794 crore, an 8.5% increase over the revisedestimate of 2018-19. In 2018-19, as per the revised figures, there is estimated to be an increase of INR.5,954 crore (1.6%) of expenditure over the budgeted estimate.Total receipts (excluding borrowings) for 2019-20 are estimated to be INR.3,16,930 crore, an increase of9.8% as compared to the revised estimate of 2018-19. In 2018-19, total receipts (excluding borrowings) areestimated to be higher than the budgeted estimate by INR. 512 crore.Revenue deficit for 2019-20 is targeted at INR. 20,293 crore, or 0.68% of the Gross State Domestic Product(GSDP). Fiscal deficit is targeted at INR. 61,670 crore (2.07% of GSDP).Sectors such as rural development (62%), water supply, sanitation, housing and urban development (26%), andeducation (25%) saw the highest increase in allocations. On the other hand, social welfare and nutrition (33%)and agriculture (25%) saw the highest decrease in allocations.
Hindu Samrat Balasaheb Maharashtra Samruddhi Mahamarg (HSBMSMM)
This proposed corridor is eight lane expressway connecting Mumbai to Nagpur (710 km long and 120 m wide). This will enable travellers to cover the distance in six hours. This expressway will pass through 10 districts, 30 tehsils and 354 villages and thereby it will connect 24 districts. At the crossing points of state and national highways an innovative idea of development of 24 super smart cities is proposed. This will also generate employment. The road will also provide connectivity to the Western Corridor and the Golden Quadrilateral. Of the INR.55,477 crore of the project cost, INR.27,477 crore will be invested by the state government as MSRDC share and INR.28,000 crore raised through loans.
Government of Maharashtra is taking up all effective steps to contain the spread of Covid 19 with several places in the state, where multiple confirmed cases were reported, were sealed off to prevent community spread.
The central government classified the country’s districts into zones based on the extent of the spread of virus, with 14 districts in Maharashtra being identified as hotspots and labelled as red zones. The state government announced that it would relax the lockdown restrictions in districts with fewer than 15 confirmed cases.
Education: Maharashtra government cancelled all the exams from standard 1–8. to make it easier to stop Coronavirus outbreak through schools in students.The students of standard 1st to 8th standard were directly promoted to their next standard.
Transport: Over 20,000 bus services of Maharashtra State Road Transport Corporation were cancelled
Tourism: Tourist spots in the state like Ajanta and Ellora Caves in Aurangabad district, Elephanta Island in Raigad district and Gateway of India in Mumbai reportedly witnessed a sharp decline in the number of visitors. Hotel, cab and private bus businesses in the state also reported a high number of booking cancellations in March.
Amidst a surge in confirmed cases across the state, the health officials declared that several tourist and religious sites will be closed down as a precautionary measure. These sites included Siddhivinayak Temple in Mumbai, TuljaBhavani Temple in Osmanabad district, Ajanta and Ellora Caves in Aurangabad district, DagadushethHalwaiGanapati Temple in Pune, Mumba Devi Temple in Mumbai and Saibaba Temple in Shirdi. Entry restrictions were also enforced at Mantralaya, Mumbai. Mumbai Police placed a ban on all group tours in the city until 31 March.
Economic Effects: The virus outbreak had a significant impact on all sectors. Most of companies have temporarily closed down their manufacturing facilities and are expected start vith more vigor after the lifting of the lockdown. The economy of Mumbai was projected to suffer losses worth at least INR. 16,000 crore per month in the service sector, as a result of the outbreak. In addition, it predicted that the city’s tourism industry would lose INR. 2,200 crore per month from international tourists.
The entertainment industry in the state also suffered financially, with several Bollywood films postponing release dates or halting production, causing an “acute financial crunch” for many members of the Federation of Western India Cine Employees. Bollywood films were estimated to lose box office revenue of over INR.1,300 crore due to the lockdown.
On 30 March, the state government slashed electricity tariff by an average of 8% for a period of five years in order to minimize the economic impact of the outbreak on industries.
Migrant workers: After the enforcement of lockdown, scores of migrant labourers in Maharashtra have left and would return immediately once normalcy comes back.
Self – Sustained Economic growth through Secured Governance for Maharashtra
“Secured Governance offers a strategy for the government to get all the basicinfrastructure development with a negligible investment by the Government. It is a concept of developing Techno Economic Corridors connecting HUBs which will act as growth centre for individual sectors. The very concept of “Secured’’ here implies a secured convergence or knitting with various sectors defining a growth for an economy.”
Secured Governance – A Holistic Approach to Infrastructure Development
Secured Governance is a concept that is catching the attention of many as a holistic approach to infrastructure needs, promising a great deal. It professes taking advantage of valuation of assets created, and delivering at negligible cost to the government. It aims at balanced growth in all sectors in need of better facilities, in a more holistic manner, rather than focusing only on say expressways, or power or any one of numerous other sectors. While addressing any one of them, the others also get due attention ensuring all round development. It promises more societal participation and benefit sharing with transparency. Underlying this is a strategy of developing techno-economic corridors connecting Super Smart Cities (read new cities in traditionally backward and underdeveloped areas) across the state which coincidently meshes with the idea of having ‘24 new super smart cities’ along the HSBMSMM.
The Approach to Holistic Infrastructure Development
The idea is a common sense approach yet is backed by a wealth of information collected to show its potential, and that there is more to it. The key ingredients are:
Balanced Growth of Infrastructure across Sectors
It is normal to look at planning of infrastructure as a function of a number of ministries, such as Roads and Expressways, Power and so on. Often we see a situation where a Power Project sanctioned await roads yet to develop. If instead we considered the Power Project as hub around which all the related infrastructure needs to develop simultaneously, we would look at requirements of housing, education, tourism, IT, manufacturing and so much else, all interrelated in more ways than one. Connecting Super Smart Cities with a highway will also become part of the larger project. A super smart city developing near the HSBMSMM corridor will be better planned, more complete and benefit many more rather than the few ‘more enterprising’ who tend to otherwise take advantage of the development process and the valuation due to it.
Development in Backward Areas
Moving away from populated areas makes more sense when you see that barely 2% of the land in our country is populated. The reason is the age old preference to settle beside rivers and streams and adjacent to existing cities. Today we can take water and power almost anywhere. Connecting these areas with roads and making new centers of development will be more beneficial and cost effective than trying to develop projects in areas already populated. It will relieve pressure on existing urban areas too. Setting – up of various HUBs, Mini HUBs and Nano HUBs in Maharashtra with the contribution of private stake holders / foreign investors who will develop the infrastructure on the guidelines of state or local government. Besides, the state has approximately 36,075.15 sq. km of degraded wasteland that lies outside the areas demarcated as national forests. Development of these wastelands offers enormous potential both for economic development and sustainable employment generation.
Secured Governance advocates a pragmatic approach of taking Advantage of Valuation of Assets Created
This is not new. We all know when development takes place there is valuation in property. Who benefits from this? More often than not it is incidental and taken advantage off by land and property sharks. Imagine a model where this valuation can be ploughed back into the project and also benefit the people around. First the cost of the project is reduced, and can actually be at negligible cost to the government if carefully planned. Next the population sees it as benefitting them and so they participate more enthusiastically, helping with early completion of the project rather than being an impediment.
Public Private Participation (PPP)
The method of execution envisaged is essentially of the Engineering, Procurement and Construction (EPC) model, where concessionaires bid for a project, with the incentive being concurrent areas offered to them for development and commercial use. These will give returns in four to five years which will meet their investment cost. It is better than waiting for 20 years collecting toll to make good the loans taken for a project. While the concessionaire utilizes valuation in a pattern that is part of a larger plan for the area, he also shares this with more and actually adds more value to the whole system. It will be a win-win situation. The SG approach requires the Government to participate as a facilitator and nothing more. The first step is to recognize the merits of a multi-sector approach to infrastructure and conceive projects which may be predominantly one sector but carry with them smaller packages of other sectors. Implied in this is the ability to take decision across ministries and give clearances at one point. The method of implementation will also be peculiar to each project, the place and the local conditions. Single window clearances would therefore have to be the norm, supported by empowered teams that can help conceptualize and clear a project in the SG mould. Once this is done, the execution may be decentralized to specific states or regions. Help from the government will only be required for mid-course corrections where inescapable. The requirement is to move from small to big, from project to project. Each will be unique in itself depending on what the ground and the situation dictates. The method of both valuation and value addition needs expertise and imagination for holistic development in the state through Secured Governance.
PPPs are essentially “risk sharing partnerships” between governments and the private sector on financing, designing, constructing and operating public infrastructure and public services. Infrastructure projects are inherently complex and unpredictable, and, under PPP arrangements, governments opt to transfer specific tasks and the risks associated with them to private enterprises that might be better able to execute and mitigate them.
“The Blue Economy is envisaged as the integration of Water based Economy included Inland Water Body & Ocean Economy development with the principles of social inclusion, environmental sustainability and innovative, dynamic business models”.Islands are expected to gain more from the blue economy orientation through smart city development in big islands mini HUBs in small islands and Nano HUBs in tiny islands. The protagonists of this approach visualize a great potential for economic growth and huge job creation in the blue economy sectors.
The seabed around Maharashtra is the source of untold wealth and potential, if it is used effectively and responsibly proving the enormous potential of India’s blue growth industry.
Maharashtra comprises 18 islands spread over Continental shelf area of some 0.112 Million sq. km. The state has3 major &48 minor ports spread over a distance of 720 km. of sea coast. Moreover it has water network length is around 16,000 km, in the form of rivers, canals, backwaters and creeks. There is a need to develop fit-for-purpose, dedicated policy tools and initiatives, on the basis of general planning principles for waterfront development. Various commercial activities such as play courts, Yoga & Open Gym, park, Café & small Restaurant, fishing point, boat & net repairing service, recreational zone, informal market have been added along the riverfront making it a vibrant public & cultural place. Active public spaces will make the area safe. The recreation, activity & commercial areas will also help generate revenue and huge employment opportunity.
Supporting Sectors of Secured Governance HUBs / Smart City
Secured Governance an Unique Techno – Economic Corridor
Secured Governance HUBs:-Development of a Primary economic sector for a defined region with development of aTownship or smart citywhich includes infrastructures such as Residential complexes, Official and Industrial Facilities, Disaster Management System, Power and Water, Sewage and Solid Waste Management, Telecom, Banking, Educational Institutes, Transport facilities and infrastructures, Healthcare, Hospitality Sectors, Retail Market for all including food grains and fruits & vegetables, and other subsidiary Sector.
Secured Governance Compliments the present PPP developmental model by ensuring balanced participation of the private and public sector taking advantage of value and valuationof infrastructure thereby yielding higher returns. This valuation of infrastructure, which grows many folds need to be shared by the society and by the Government to support infrastructure development, ensuring balanced growth. It facilitates an equal opportunity for Private sector and Government to work together with a single window clearance system to achieve greater results to bring National progress with profitability to the participating organizations.
How best to fight the Economic Impact of the COVID 19 Pandemic?
We know that nations need a healthy population to prosper. Stepping up investment in public healthcare is pivotal to sustaining Maharashtra’s economic growth. A research study has revealed that the lack of adequate healthcare infrastructure is a prime factor denying access to patient healthcare. The study was initiated by India Health Progress to find the principle reasons which are hampering the healthcare access to n patients. Secured Governance strategy designed to minimise the gap of Healthcare infrastructure of the social sector and promote private participation in infrastructure development. The value and valuation strategy offers sophisticated funding mechanism and tailored to the economic growth and generate huge employment opportunity.
The Secured Governance strategy designed to help government through the private & foreign sector investment, and non-profit organisation when to open their economies, and the second outlines an approach for how to do so in this COVID – 19 pestilence period. This is a novel strategy that consists in promoting infrastructure (Healthcare HUB) development that integrated with all key supporting sectors such as transport, power, telecom, banking, education etc.
This is not new. We all know when development takes place there is valuation in property. Who benefits from this? More often than not it is incidental and taken advantage off by land and property sharks. Imagine a model where this valuation can be ploughed back into the project and also benefit the people around. First the development cost of the Healthcare HUB is reduced, and can actually be at negligible cost to the government if carefully planned. Next the population sees it as benefitting them and so they participate more enthusiastically, helping with early completion of the project rather than being an impediment. The strategy could provide a generic pathway to capture a part of the increased value by investment made by private stakeholders and helps repayment of loan for infrastructure (HUB) development. This mechanism could help to bridge the gap of healthcare population ratio drastically and could provide effective control of COVID – 19 spread and public – health response in this critical time.
Various Secured Governance HUBs
- Healthcare Sector: health industry needs to be prioritised by pooling together private and public, domestic and international resources. Research, manufacturing and practical implementation through health hubs need to be promoted. Around this nucleus rest of the development can flourish.
- Smart Urban Model: Town planning needs to be relooked. Every complex must have enough retail outlets to make it self-sufficient. Houses for moneyed persons and supporting servants need to be constructed at one complex as absence of the same results in mushrooming of slums.
- Food Security:Agricultural colleges and food preserving units need to be together accompanied by cold storages and transport/ rail, air connections to markets.
- Prior online experiences:More emphasis on broadband internet use in day to day operations rather than rushing physically to places for various activities.
Mini HUBs: Around 1,000 Mini HUBs can be developed adjacent to Major Roadways. Every 15 kilometer one mini HUB such as amusement park, Yoga centre, Mini food court, Cinema halls, children’s water park etc. In additional mini HUB includes Small scale economic activities like food processing industry, boat & fish net repairing centre, mini market, shopping malls etc. Local government will get additional revenue through this various mini HUBs to meet extra budget burden of river maintenance (includes deepening, cleaning etc.) expenditure.
Nano HUBs: Nano HUBs will be a part of an existing or new development project. These HUBs will not only facilitate public utility space for the travelers but also promote small scale commercial units generating employment and revenue for the defined region.
A typical Nano-HUB will be spread over an area of 1000 to 2000 sq. m, comprising of facilities like Roadside Stations, Motorway Service Areas, Retail & Minor Ancillary Uses, Toilets/Washrooms, Parking Facilities, Health Clinics, Internet Cafes, ATMs, Handicraft shops, Small Hotels, Restrooms, etc.
Establish around 43,665 NanoHUBs in the villages of Maharashtra is an effort to create a small yet compact mechanism to generate employment opportunity and minimize the rural urban migration.Detailed investment and employment opportunity is given in below table
|Growth Centre||Number of HUBs||Expected investment by private Bodies
(in INR. Crore)
|Expected Output to Govt./Annum
(in INR. Crore)
The imperative of rapid scaling up of the infrastructure capacity – in the Government and private sector (developers, contractors, consultants, financial intermediaries and investors) – entails developing and implementing projects of the required scale and within the tight time frames envisaged. The new initiatives of “24 SuperSmart City” on the part of the Government have begun to turnaround the project as far as the private participation is concerned through project execution and planning new investments.Public private partnerships will be leveraged for the state of Maharashtra to attract an investment of INR. 8.00 lakh crore from private / foreign investors during the period 2021-25.And at the same time additional revenue of the state government (excluding state’s share in taxes) is estimated to be INR. 70,000 crore to minimise budget deficit of the state government. This implies that it will generate over 15 million jobs over the next five years, which will translate to about three million jobs annually.
Lastly, to implement an ambitious roadmap for this project, improved standards of secured governance and concerted action would be required to take these targets and goals from inspirational statements to actual development. We need a system to integrate economic interdependence in today’s modern societies which not only decreases uncertainty regarding where risks begin and end, but also help in judicious planning and development of new empowered, transparent and interdependent Governance systems with higher degree of society participation in nation building Process. Secured Governance is a novel concept which equips to create adequate and coordinated measures to ensure the provision of financial, human, technical, information and sustainable economic growth of the state and nation.
The Policy Times proudly presents the article for Strategic Growth of Maharashtra post Covid 19 by Pravin Dixit IPS (Retd) , ex DGP and Vice Chairman,
Maharashtra Administrative Tribunal, Maharashtra
with Dr.P.Sekhar the renowned innovator of the Doctrine of Secured Governance and Author of over 80 books on National growth . The article gives strategies for Maharashtra to maintain and enhance its premier leadership position through setting up of unique Smart Cities going to village level taking into account local expertise to have minimal displacement as these are majorly planned in Wasteland with high emphasis on Blue Economy for availability and use of Water in a planned way.
By Mr. Pravin Dixit
IPSVice Chairman,Maharashtra Administrative TribunalDGP (Retd.), Maharashtra
By Dr. P. Sekhar
Chairman of Global Smart Cities Panel, Micro Tech Global Foundation