Untitled Document
  
 

Pune is one of the fastest-developing districts in west Maharashtra. The city is famous for its educational, research and development institutions and is a famous IT hub too. It is located 160 km south-east from Mumbai and is spread over an area of 15.64 mn sq ft. In FY08, the per capita income (at current prices) of Pune was above the state per capita income at Rs 52,075.

Industrial set-up

Traditionally, Pune has been famous for its agriculture and agro businesses; in fact, agriculture has remained the mainstay of Pune’s economy. In the past few years, however, Pune has emerged as one of the major business centres of Maharashtra.

Pune is a base for various large and small units that are operating in sectors such as auto components, engineering, IT/ ITeS BPO, pharmaceuticals and food processing. Among these industries, the food processing industry is most dominant in the city as the demand-supply dynamics in the region are favourable for it. The food processing units in Pune operate in various segments such as milk and milk products, fruit and vegetable processed products, bakeries, ready-to-eat foods etc. The sector has flourished in the region due to the city’s proximity to urban markets such as Mumbai, Nashik, Nagpur, its cosmopolitan nature, its changing food habits, its connectivity to JNPT and therefore, its amenability to exports.

Pune has also emerged as one of the top investment destinations for automobile and auto components makers. Big companies from the automotive industry like Bajaj Auto, Tata Motors and Force Motors are present in Pune. Additionally, various international players like General Motors and Volkswagen are also present in Pune.

In recent times, information technology and business process outsourcing segments have been driving the growth in Pune’s economy. Many IT parks are coming up in the city to keep pace with the growing software industry and to attract new IT companies to set up their base in Pune. Many leading software companies like Infosys, Tech Mahindra, Wipro, Patni Computer Systems and Accenture are present in the city.

The industries in Pune are well-supported by some major companies that are operating in different sectors. The table below contains a list of some major companies that are operating in Pune.

Apart from these companies, many small-scale and ancillary units are also located in the industrial areas developed by the Maharashtra Industrial Development Corporation (MIDC) in and around Pune. The city has the highest number of micro, small and medium enterprises (MSMEs) and large-scale units in the state. The district accounts for 49.7% of MSME units and 50.5% of large-scale units in Maharashtra.

Infrastructure

Pune’s infrastructure is well-developed, which makes it one of the leading business centres in the country, and it is wellconnected by roads, railways and airways.

Highways & Roadways: The three national highways that are connected to Pune are Mumbai-Bangalore (NH4), Pune- Solapur-Hyderabad (NH9) and Pune-Nashik (NH50). Pune is also connected to other major cities of Maharashtra through a network of good roads. The express highway that connects Pune and Mumbai provides greater connectivity between the two cities.

Rail Network: Pune and Daund are the two railway junctions in the district. The rail network consists of both broad gauge (electrified and non-electrified) double track as well as single track lines. The broad gauge single and double track rail length within the district spans across a total of 311 km, of which, single line constitute 162 km and the double line 149 km.

Air Routes: Pune is well-connected with the rest of the country by air. All major domestic airlines such as Air India, Jet Airways, Kingfisher Airlines, etc. operate in Pune. Pune is located 12 km away from the Pune airport at Lohgaon. The airport has acquired the status of an international airport and operates flights to international destinations like Dubai and Frankfurt.

Industry Associations

There are many associations in Pune that are engaged in developing and promoting the industries in the city. A few industrial associations in Pune operate at the national level also, like the Association for Promotion of Plastics and the Automotive Research Association of India. The table below lists down some associations that are present in Pune:

 

Educational Institutions

Many educational institutes are present in Pune that offer courses in variety of subjects such as medicine, engineering, biochemistry, biotechnology, mass communication, astronomy and more. Pune also houses many universities like Bharti Vidyapeeth, Tilak Maharashtra University, Symbiosis University, University of Pune, IGNOU, Dnyaneshwar Vidyapeeth etc. The University of Pune is one of the oldest universities of Maharashtra that has more than 260 affiliated educational institutes and colleges from all parts of Maharashtra. The table below lists down a few prominent educational institutions that are present in Pune:

Government Organisations

Various government organisations are present in Pune that provide facilities to the industries operating in the state. Given below are some government organisations that operate in Pune:

Maharashtra Industrial Development Corporation

Maharashtra Industrial Development Corporation (MIDC) was established in 1962. It is a premium industrial infrastructure development agency instituted by the Government of Maharashtra. MIDC functions as a special planning authority that plans industrial areas for systematic industrial development. It has developed industrial areas with essential infrastructure such as roads, water, electricity and other services to entrepreneurs. The state government has implemented various important programmes such as establishment of growth centres, establishment of mini-industrial areas and setting-up of ‘Five Star’ industrial areas with the help of MIDC, which have facilitated faster industrial development in Pune.

According to the Economic Survey of Maharashtra 2008-09, Pune has the highest number of MIDC industrial areas in the state till Mar 31, 2008. Pune is also among the most prominent destinations for investments in industrial units.

The State Government has also undertaken a programme of developing industrial estates in areas other than MIDC areas on a co-operative basis with the view to generate more employment opportunities in rural areas. The State Government is providing several facilities in terms of contribution to share capital & technical guidance for establishing industries in cooperative industrial estates.

As on Dec 31, 2008 Pune district accounted for the highest number of registered and functioning co-operative industrial estates in the state.

Maharashtra State Financial Corporation

Maharashtra State Financial Corporation (MSFC) is a statutory corporation that provides medium and long-term assistance to small and medium-scale industries for acquiring fixed assets like land, building, plant and machinery. The State of Maharashtra, State of Goa and the Union Territory of Daman & Diu fall under its jurisdiction.

The State Industrial & Investment Corporation of Maharashtra Limited (SICOM) SICOM is a premium financial institution that was established by the Government of Maharashtra in 1966 as a 100% stateowned company to industrialise backward areas of the state. SICOM provides tailor-made financial solutions and advisory services to entrepreneurs, companies in the private and public sector and government bodies.

Maharashtra Economic Development Council

Maharashtra Economic Development Council (MEDC) was established in 1957 jointly by all prominent Chambers of Commerce & Business and Industry Associations in Maharashtra. MEDC acts as an investment facilitator and as a catalyst in economic development. It undertakes special research projects and brings out studies and reports on various aspects of the economy in general and trade and industry in particular.

Maharashtra Small Scale Industries Development Corporation

Maharashtra Small Scale Industries Development Corporation (MSSIDC) was set up in 1962 to assist the development of small-scale industries. MSSIDC provides support services like consultancy, counseling, marketing, training in technical and managerial aspects, commercial warehousing, entrepreneurship development programme etc.

Assistance by the Government of Maharashtra

The Government of Maharashtra has initiated several measures to promote the sustainable growth of the SME sector in the state. In addition to the development of key infrastructure facilities in the state, the government introduced a package scheme of incentives in 1964 to promote the balanced industrial development in the state. This package scheme of incentives was amended at regular intervals to incorporate structural changes in the economy. The most recent Package Scheme of Incentives (PSI) was declared in 2007, which is being implemented for four financial years starting from April 1, 2007. Only micro and small enterprises, medium enterprises and large-scale companies from all sectors except the central public sector are eligible for getting incentives under PSI 2007. In order to implement the scheme effectively, tehsils in the state are classified into A, B, C, D, D+ and ‘no industry district’ according to their level of industrial development.

Some of this scheme’s measures are listed below:

In order to implement the scheme effectively, tehsils in the State are classified into A, B, C, D, D+ and ‘No Industry District’ according to respective levels of industrial development.

Besides these measures, the state government has taken various measures for rehabilitation of sick MSME units; for instance, it has issued certificates of sickness to 254 MSMEs that employed a total of 2,712 employees up to the end of November 2007, a step that enabled these units to obtain re-scheduling of outstanding dues of sales tax and electricity charges.

Key Highlights of the Assistance Provided in the Industrial Policy 2001:

The subsidy will be disbursed in equal annual installments over a period of 5 years. Existing SSIs are also eligible for 75% of the subsidy admissible as above for expansion, diversification or modernisation, involving additional investment to the extent of 25% or more.

Financial Institutions

Apart from the government agencies, various nationalised banks and financial institutions too have played a major role in meeting the financing requirements of companies operating in the Pune cluster. These institutions provide financial assistance in the form of working capital loans, short-term loans and term loans to companies. Table 1.11 mentions a few prominent financial institutions present in Pune.