Ramp up growth to achieve $1-trillion goal, state told

The Maharashtra Institute for Transformation (Mitra), a government think tank, suggested leveraging available capital expenditure space, off-budget funding and boosting the growth of backward districts

MUMBAI: Devendra Fadnavis may be a chief minister in a hurry, but on Thursday, he was told the pace still wasn’t enough – Maharashtra’s economy would have to accelerate further if it hopes to hit the $1-trillion mark by 2028.

Praveen Pardeshi (Satyabrata Tripathy/HT Photo)

With the economy’s current growth lagging at 11%, against a target of 14.5%, the Maharashtra Institute for Transformation (Mitra), a government think tank, suggested leveraging available capital expenditure space, off-budget funding and boosting the growth of backward districts.

These were some of the highlights of a presentation made by Praveen Pardeshi, chief executive officer of Mitra, at its governing council meeting chaired by Fadnavis on Thursday. Pardeshi pointed out that Maharashtra’s growth lags that of states of similar or higher income including Karnataka, Telangana and Gujarat.

The depreciation in the Indian rupee in the last two years has underscored the need for accelerated growth, the presentation said, according to officials from Mantralaya. It also pointed out how capital expenditure in Maharashtra is lower than in other competing states, and that it had a multiplier impact on growth, according to the officials.

On the plus side, Mitra pointed out, Maharashtra’s fiscal deficit is lower than that of other major states and this fiscal space can be utilised to drive growth. “Long-term vision and strategic planning, improved financial stability and predictability, enhanced decision making, and better resource allocation could help amplify the potential benefits,” the official stated.

The think tank also suggested that the state focus on developing backward districts by monetising their ‘land bank’. It also recommended concretisation of over 14,000km of roads in villages, and strengthening health services, to reduce spending on treating non-communicable diseases.

Mitra vice-chairperson Rajesh Kshirsagar said, “Mitra has been tirelessly working to achieve the $1trillion target in five years and $3.5trillion by 2047. We have been focusing on various sectors including information technology, industry and tourism. By tapping the potential in various districts in these sectors, we are strengthening the base for the growth of these districts. We expect robust growth from the IT sector.”

After the presentation, Fadnavis gave the go-ahead for a Standard Operating Procedure (SOP) to be submitted to the economic affairs department of the central government. He also asked the state administration for a presentation on a time-bound programme for the implementation of the SOP for projects funded by World Bank and other external agencies. In addition, Fadnavis has asked for data to be generated from each district with the help of the state data policy authority, according to a statement issued by the Chief Minister’s Office.

Water taxis for Navi Mumbai airport

In a separate development, Fadnavis on Thursday directed the City and Industrial Development Corporation Ltd (CIDCO) to link the new international airport in Navi Mumbai to a water taxi service.

“Navi Mumbai airport should have multi-modal transport connectivity, like roads, railways, metro-railway and water, and for that, CIDCO should develop a water taxi facility for this airport. It will be the world’s first airport with water-taxi connectivity,” said the chief minister at a meeting to review projects being executed by CIDCO.

Fadnavis also asked CIDCO to provide multiple options to passengers traveling from metro railway station to the airport. He also said the new airport should have an excellent parking facility and an aircraft repair facility.

Elaborating on his vision for NAINA (Navi Mumbai Influence Airport Notified Area), the new city that will be developed around the international airport, Fadnavis said, “The width of the roads under this project should be determined keeping in mind future traffic load. The duration of the works should be time-bound and, henceforth, included in tenders for the construction of infrastructure facilities. There is no reason for delays when modern technology is available.”