ECONOMIC DEVELOPMENT COUNCIL MONTHLY ECONOMIC DIGEST VOL. XLVI NO.: 9 July & August 2017 92 Pages `80 ISSN 2456 - 2457

Opportunities with Atlanta

Aerospace Industry in 2 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Message from Chief Minister of Maharashtra

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 3

Message from Honourable Minister of Water Resources

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 5

MEDC Governing Board From the President.... MEDC President : n the last many decades, electoral politics Cdr. Dipak Naik - President & CEO Naik Environment Research Institute Ihas superseded national interests in India. Ltd. (NERIL) The patriotic fervour is replace by hunger for

MEDC Vice Presidents power for personal pecuniary gains or self- • Cdr. Anil Save - Mg. Director aggrandisement games. Even as we go to wrap Atra Pharmaceuticals Pvt. Ltd. up the final draft of this month’s Economic • Mrs. Meenal Mohadikar - CEO Digest, the magicians in BJP have pulled out Anand Trade Development a Nitish from the empty Congress hat that Service mesmerised and paralysed the RJD. ‘Swachha • Mr. Ravi Boratkar -Jt. Mg. Director Bihar’ is sighted rising on the horizon. What MM Activ Sci-Tech Coomunications remains to be seen is, will it rise to its zenith? In the mean while the growth is pegged at a reasonable 6% and the markets are looking up MEDC Immediate Past-Presidents : • Dr. Vithal V. Kamat - Chairman with NIFTY crossing the 10 K mark. The Kamat Group of Hotels

• Mr. Nandkishor Kagliwal - Chairman The last week of July brought in another sad news that Sri Lanka has Nath Group finally closed the deal with China on Hambantota Port with afew Special Invitee : restrictions. In order to assuage Indian concerns only non-military use • Mr. Chandrakant Sadadekar- of the port is allowed. We in India are either contended or blissfully Chairman Sadadekar Global Group unaware that military might arises from economic power. Hambantota has brought the dragon to our doorstep while we are happy and • Mr. Anil Gachke - Chairman MEDC Industries Committee contended that the saffron flag is hoisted on the capital of Magadha. Howsoever strongly we may feel about this national apathy towards Printed, published & edited by Ms. Ananya Prem Nath of behalf of our long term economic, strategic and military interest, this is perhaps Maharashtra Economic Development not the forum to voice this any further. It will be more appropriate to Council (MEDC), Printed Shree Ganesh publish a white paper on China’s Silk Route vis a vis India’s national Graphics, A2/51, Saha & Nahar Industrial Estate, Lower Parel, interest. - 400 013. And published from Maharashtra Economic Development Council, Y. B. Chavan Centre, Ramayana must be the oldest documented reference book for a flying 3rd Floor, Gen. J. Bhosale Marg, machine in the world. The ‘Pushpak Viman’ was documented centuries Nariman Point, Mumbai - 400 021. before the Write brothers invented the aeroplane. In recent years, India is credited with the most efficient space craft that reached the Mars. However between these two epochs we Indians have missed the proverbial boat for developing aeroplanes and avionics. Admittedly we did insist on licensed manufacture of most aircraft purchased for our armed forces but missed out completely on the civilian aircraft and allied industries development plan. Our misplaced sense of security kept this sphere of technology far away from our private sector. Consequently

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 7 we neither had production of air craft nor had research on avionics and ancillary industries that make components and consumables for the aviation industry.

The Prime Minister of India Shri Narendra Modi has recently announced a well thought of and long overdue policy of ‘Regional Connectivity” under the caption UDAN (“UDE DESHKA AAM NAGRIK ”). We are more than certain that this is indeed a step in the right direction for accelerating the economic growth of secondary and smaller towns and allied regions of India. The Prime Minister, had launched a first of its kind scheme globally to ensure Regional Connectivity through a market based mechanism on 27th April, 2017. The UDAN scheme is a key component of the ‘National Civil Aviation Policy’ released earlier by the Ministry of Civil Aviation on June 15, 2016. The AAI has approved 27 proposals which will see 27 currently served airports, 12 underserved airports and 31 unserved airport connected. Of the 70 airports 24 are in the Western region, 17 in the North, 11 in the South and 12 in the East and 6 in the North East. This initiative must succeed for all round balanced economic growth.

We in MEDC have decided to take up our share of this responsibility towards achieving national growth objectives. The Maharashtra Economic Development Council has proposed to hold India Aerobiz & MRO 2018 at MIHAN (The Multi-modal International Cargo Hub and Airport at ) in January 2017. This initiative also opens up a new area of industry, skill development and enterprise. This will be country’s first Air Show with a focus on Regional Connectivity alongside Maintenance, Repair and Overhaul (MRO) throughmeans ofsmall and medium capacity aircraft (9-72 seater). This Air Show aims to build a bridge between international aviation industry and its Indian counterpart in order to foster an environment that allows all facets of the business of aviation to thrive in India. The Hon. Chief Minister of Maharashtra Shri Devendra Fadnavis has assured the support of the Govt. Of Maharashtra and MADC to this event.

This air show will be a platform for Regional Airline and Helicopter operatorswith a focus on Regional Connectivity where stakeholders will showcase, debate and deliberate the potential of using the scheduled and non-scheduled aircraft and helicopter fleet of the country in

8 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest achieving this important task along with the required MRO. The direct benefits for development of aviation industry include employment and income generation in airline and airport operations, MROs, ground handling services and so on. It can also accelerate the development of manufacturing, tourism and hospitality. Air connectivity can also stimulate the growth of export of perishable goods like fruits, flowers, food products, marine products and so on.

The stated objective of this airshow is ‘to be the aviation meeting ground for international collaborations for airport developers, training organisations, support services, logistics companies and the ancillary industry of aerospace industry by exhibiting their products and services’. This event will be a recurring one stop shop for exploring/ leasing / buying aircraft & Helicopters for regional connectivity and personal / corporate use. It follows that this event will also market the potential of MIHAN and other industries for this sector. We believe that this event will encourage overseas aircraft and their components and consumable manufacturers and service providers to collaborate with our industry in furtherance of the ‘Make in India’ policy.

These days any mention of Nagpur draws some tongue in cheek reactions. It will therefore be in order to clarify the causes behind selection of Nagpur as an Aviation Hub. Nagpur is strategically located on the international aviation routes. MIHAN is well suited to host a large air show. Its unique location at the crossing of the air route between Europe and South-East Asia, as well as between South Africa and North-East Asia makes it a logical and ideal location for passenger and cargo hub. Every day around 500-700 flight overfly Nagpur Control area. The Indian Air Force, the world’s 4th largest Air Force has its Maintenance Commandin Nagpur. India’s newest and largest MRO facility of AIESL is located along side of the country’s only GE 90 Engine Test Centre at MIHAN. This project aims to exploit the central location of Nagpur and convert the present airport into a major cargo, passenger and business hub with integrated road and rail connectivity.

This issue of the monthly Economic Digest is therefore dedicated to be a curtain raiser issue for the forthcoming India Aerobiz & MRO 2018.

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 9 FROM THE PRESIDENT’S DESK 07 ● SPECIAL FEATURE ● Aerospace and Aviation – Southeast USA by Consulate General of Atlanta 12

Taking road to prosperity with transparency, participation 18 “There are many roads to prosperity, Page No. 18 but one must be taken. Inaction leads nowhere.”

● COVER STORY ● July & August 2017

MRO Association of India to put up a Centre of Excellence for Skill Development in Aviation 21 - Mr. Pulak Sen Founder Secretary General -MRO Association of India, Head - Aerospace & Defence

AEROSPACE INDUSTRY IN INDIA - Opportunities and Challenges 25 Page No. 26 - Dr. S. D. Naik Former Chief, The Economic Times Research Bureau, Mumbai and Economics Editor, The Hindu Business Line, Mumbai Office

MIHAN 29 VOL. XLVI NO. : 09 VOL. XLVI - Maharashtra Airport Development Company Ltd.

The Aerospace Industry : Some Reflections 32 - Dr. Dhananjay Samant Author is an applied economist and social scientist specializing in quantitative analysis, forecasting, and macroeconomic policy formulation.

EMERGING ISSUES IN AEROSPACE INDUSTRY : AN INDIAN Page No. 35 PERSPECTIVE 36 - Dr. R. K. Pattnaik Professor at SPJIMR, Mumbai - Ms. Ananya Sivaraman Student at St. Xavier’s college, Mumbai

AEROSPACE INDUSTRY IN INDIA 41 - Mr. Rattandeep Vij Author is an aviation enthusiast and has done engineering exports

India : Aerospace & Defence forecast by 2020 44 - Mr. Kependra Bhairam Page No. 47 Author is Head – Structural Analysis (Aerospace & Defence) in Aero Euro Engineering India Pvt Ltd CONTENT 10 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest UDAN (Ude Deshka Aam Nagarik) Ministry Of Central Aviation, Government Of India 46

Status of Small Airfields in India 48 - MEDC Research Team ● GLOBAL TREND ●

Global Trade and Investment Trends 54 - Dr. Prakash Hebalkar Dr. Hebalkar is a Public Policy consultant and Page No. 55 President of ProfiTech, a strategic consultancy ● EMPOWERING MAHARASHTRA ●

Article on Banking and Finance 57 - Mr. V. T. PAI Ex- Director, MEDC

Synthesis of time and cost over runs in civil engineering projects 59 MEDC Economic Digest Editorial Board - Mr. P. M. Deshpande Retd CE & GM (Tech) CIDCO of Maharashtra Interim Chairman Cdr. Dipak Naik ● MAHA FACTS & FIGURES ● Editor TRANSPORT AND COMMUNICATION 64 Ms. Ananya Prem Nath ● WOMEN ENTREPRENEURS ● Manager-Research & Training De-coding skillsbased pro-bono 81 Editorial Advisor : - Ms. Amrit Rai Dr. Prakash Hebalkar, President, ProfiTech Business Development Director – India Mr. Ravi Buddhiraja, IAS (Retd.) PYXERA Globa Dr. Minu Mehta, Prof. IES-MR Dr. Dhananjay Samant - Economist ● NEWS IN MEDC ● MEDC Response : Meeting with Urban Co- Operative Ms. Sonali Jakatdar - Gen. Manager Bank’s Directors 84 Ms. Sonam Gupta - Executive - 13th Dr. D. R. Gadgil Memorial Research & B. D. Lecture 85 Special Publication On “WATER” 86 Address : Memorandum Of Understanding (MOU) MEDC Research Centre, 3rd floor, Signed between Maharashtra Economic Y.B. Chavan Centre, Nariman Point, Development Council (MEDC) And Mumbai - 400 021. Page No. 55 Bombay Stock Exchange (BSE) 87 Tel. : 2284 2206/09; Fax : 2284 6288; Workshop and B2B at Sasmira Email : [email protected] College with the Co- Ordination of Magic Of Mind. 88 www.medcindia.com Cluster Development Programme 89 ● NEWS IN MTDC ● Partnership to boost tourism in Maharashtra, Airbnb to support ‘Visit Maharashtra 2017’ as alternative accommodation partner 90

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 11 Special Feature Aerospace and Aviation – Southeast USA by Consulate General of Atlanta Overview Aviation South Carolina Alabama Florida is the birthplace of South Carolina is home to one Aerospace, aviation, and defense commercial aviation and the air of the nation’s most dynamic in Alabama encompasses original transport hub of the Western aerospace centers. With an annual equipment manufacturers (OEMs), Hemisphere. Florida is also home economic impact of more than material and component to 100+ public use airports $19 billion, the aerospace sector manufacturers, engineering and has evolved into a major pillar of technical service providers, Georgia the state’s economy. research and development, More than 500 companies in maintenance, repair & overhaul Georgia perform all facets of Since 2009, when Boeing selected (MRO), and other services. aerospace vehicle & systems North Charleston for its final Alabama is home to more than design, testing, manufacturing, assembly and delivery facility 300 companies engaged in the operations, maintenance & for 747Dreamliner the state’s aerospace and defense sectors overhaul, and support for aerospace industry has soared. including more than 50 customers throughout the world. The driving force behind the manufacturers of Aerospace Georgia currently hosts business success of this sector is the state’s Products and Parts. NASA’s units from some of the giants loyal, highly-skilled workforce. Marshall Space Flight Center of the space industry, including From premium automobiles to and companies like Boeing and Lockheed Martin, Boeing, wide-bodied commercial aircraft, Lockheed Martin have operated in Northrop Grumman, Pratt the people of South Carolina Alabama for more than 50 years. & Whitney and. Gulfstream have proven that they excel Aerospace, Georgia is also home in manufacturing advanced, Alabama is home to Airbus’ first to businesses specifically involved extremely complex products. American jetliner production in the satellite industry, including facility. Final assembly and EMS Technologies (now part production on the Airbus A320 of Honeywell), Space Works Tennessee family of aircraft began in 2015. Engineering, and Masten Space The Tennessee aerospace sector Airbus delivered the first Alabama Systems. has the perfect combination -assembled A321 airliner in 2016. of major research assets, Mississippi capital investment, advanced Florida Global aerospace leaders are manufacturing strength, educational calling Mississippi home in support and skilled workforce to Aerospace growing numbers. Compelling help your company fly higher. Florida is a premier aerospace business advantages, like the state’s and space location. We rank low operating costs, minimal Tennessee’s aerospace cluster #1 among states for aerospace tax burden, easy access to U. S. includes 77 companies, anchored manufacturing attractiveness. and international markets, and by the world-renowned U. S. Our 470+ industry companies proximity to important military Air Force Arnold Engineering excel in areas from aircraft parts installations, have attracted Development Complex (AEDC), and assembly, to intelligence, numerous aerospace companies the largest flight simulation surveillance, and reconnaissance, to the state. These companies are facility in the world. to missiles. Florida also offers thriving as a result of Mississippi’s tremendous space launch assets. productive, well-trained workforce.

12 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Special Feature Some of the world’s top including Vought Industries, Barrett Firearms Manufacturing, aerospace and defense companies Beretta USA, Eaton Corp., BAE Systems Ordinance and Bell operate facilities in Tennessee, Standard Aero Alliance, Honeywell, Helicopters

State Name of the company Location Airbus Mobile Boeing Huntsville Northrop Grumman Huntsville Continental Motors Mobile ALABAMA United Launch Alliance Decatur PPG Aerospace Huntsville West Wind Group Huntsville Sikorsky Huntsville / Troy Airbus Military NA Mobile Raytheon Huntsville UTC Aerospace Systems Foley SAIC Anniston FLORIDA GKN Aerospace Tallassee Lockheed Martin Huntsville / Troy GE Aviation Auburn

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 13 Special Feature

BAE Systems Mobile, Huntsville, Montgomery VT Aerospace Mobile mobile Aerojet Rocketdyne Huntsville Teledyne Brown Engineering Huntsville Commercial Jet Midland City Dynetics Huntsville CAE USA Midland City BAE Systems Jacksonville, Tampa Boeing jacksonville, Tampa, Miami DRS Melbourne Fort Walton Machining Fort Walton Beach General Dynamics Tallahassee, Orlando Lockheed Martin Orlando, Melbourne L-3 Crestview Aerospace Crestview Northrop Grumman Melbourne, Orlando, Tampa Thales Melbourne, Orlando AAR Miami, Palm Bay Airbus One Web Miami Springs Boeing Space Operations Jacksonville, Fort Walton Beach DRS Technologies Melbourne, Tampa Embraer Melbourne, Jacksonville Northrop Grumman Melbourne, Tampa HAECO Lake City Draken International Lakeland CAE Tampa Chromalloy Palm Beach, Tampa, Louderdale General Dynamics Tallahassee, Lynn Haven Honeywell International Orlando, Jacksonville, Miami PEMCO Tampa, Sarosta Raytheon Orlando, Lake Mary Safran Fort Myers, Miami Rockwell Collins Melbourne, Tampa, Miami United Launch Alliance Merrit Island, Peninsula B/E Aerospace Medley, Wellington Commercial Jet Miami Daher Socata Pompano Beach Embraer North America HQ Fort Lauderdale, Jacksonville HEICO Hollywood, Miami LAN Cargo Miami Meggitt Medley NVM Miami

14 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Special Feature

GEORGIA Boeing Company Macon Pratt & Whitney Eng SvcsInc Columbus Industry : Manufacturing Gulfstream Aerospace Corp Savannah Industry : Manufacturing Revenue ($): 1,346,500,000 Gulfstream Aerospace Corp GA Savannah Industry : Manufacturing Revenue ($) : 1,011,000,000 Sikorsky Aircraft Corporation Fairburn Industry : Manufacturing Expressjet Airlines Inc Atlanta Industry : Transporting and Warehousing Revenue ($) : 1,651,300,000 Expressjet Airlines Inc Atlanta Industry : Transporting and Warehousing Revenue ($) : 1,318,213,000 Lockheed Martin Aeronautical Marietta Industry : Manufacturing Revenue ($) : 753,400,000

Lockheed Martin Aeronautical S Marietta Industry : Transporting and Warehousing Revenue ($) : 19,200,000 Power Systems Airfoils LLC Duluth Industry : Manufacturing Revenue ($) : 33,600,000 Precision Components Intl Inc Midland Industry : Manufacturing Revenue ($) : 32,200,000 Savannah Airport Commission Savannah Industry : Transporting and Warehousing Revenue ($) : 21,500,000 Olympic Steel Inc Winder Industry : Manufacturing Revenue ($) : 805,043,000 Bon L Manufacturing Company Newnan Industry : Manufacturing Revenue ($) : 84,900,000 Franklin Aluminum Company Inc Franklin Industry : Manufacturing

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 15 Special Feature

Revenue ($) : 76,100,000 Epps Air Service Inc Atlanta Industry : Transporting and Warehousing

Revenue ($) : 34,534,750 Continental A L 39404400 Atlanta Industry : Manufacturing Revenue ($) : 18,800,000 PARTs Inc Stockbridge Industry : Manufacturing Revenue ($) : 15,000,000 Thrush Aircraft Inc Albany Industry : Manufacturing Revenue ($) : 36,400,000 Tifton Aluminum Extrusions, Inc. Tifton Industry : Manufacturing # of Staff : 130 Tifton Extrusions Inc Tifton Industry : Manufacturing Revenue ($) : 4,100,000 Sky Clean Inc Atlanta Industry : Transporting and Warehousing Revenue ($) : 15,000,000 William L Bonnell Company Inc Newnan Industry : Manufacturing Revenue ($) : 97,200,000 World Airways Inc Peachtree City Industry : Transporting and Warehousing Revenue ($) : 52,000,000 MISSISSIPPI GE Aviation, Batesville, Ellisville Airbus Helicopters, Columbus Rolls-Royce Pascagoula, Lockheed Martin Meridian SOUTH South Carolina Technology and Aviation Greenville CAROLINA Center Chippewa Aerospace Conway

UTC Aerospace Systems Hodges

Champion Aerospace Inc. Liberty

16 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Special Feature

AMT South Carolina Ladson

Stevens Aviation Inc Greenville

The Boeing Company North Charleston Manufacturer UTC Aerospace Systems Bamberg Aerospace Company TKC Aerospace Daniel Island

The Boeing Company North Charleston

South Carolina Aeronautics West Columbia

Boxell Aerospace North Charleston

Impresa Aerospace LLC Goose Creek

ADEX Machining Technologies Greenville Machine Shop Eaton Aerospace Group North Charleston

LMI - Greenville Greenville

Boeing Propulsion South Carolina Ladson Manufacturer UTC Aerospace Systems Greenville

Boeing Interiors Responsibility Center Ladson South Carolina

TRU Simulation + Training Goose Creek TENNESSEE Vought Industries, Beretta USA Nashville Eaton Corp. Cleveland Standard Aero Alliance Maryville Honeywell Nashville , Memphis Barrett Firearms Manufacturing Christiana BAE Systems Ordinance Kingsport Bell Helicopters Piney Flats

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 17 Special Feature Taking road to prosperity with transparency, participation “There are many roads to prosperity, but one must be taken. Inaction leads nowhere.”

Treading this line of comfort and with sustainable rural development after conducting a feasibility with sole purpose of connecting through agri-business ecosystem study. Following that, the state eastern part of Maharashtra and multidimensional sub- government appointed one with the state capital of Mumbai projects. This process, in turn, consultant each for Nagpur, and ensure socio - economic will help generate employment, Amravati, Aurangabad, Nashik development, the Maharahtra fuel growth in agriculture and and Konkan regions who Government announced ambitious related activities, promote prepared the final alignment of project of constructing Nagpur eco-tourism, lay foundation for the Expressway. Mumbai Super Communication robust infrastructure and contain Expressway (NMSCEW) in July rural migration for overall In an effort to promote farm- 2016. development of the state. based activities, the state government will also set up agro The 700-km Expressway, also The Rs. 46,000 crore NMSCEW is processing units, food processing called as Maharashtra Samruddhi a Greenfield project that will have units, fruit processing units, Mahamarg, will connect 10 access control. The Expressway’s warehouses, dry ports and other districts, 26 talukas and 392 design and alignment is amenities along the entire stretch. villages. prepared as per International Road For this, the state government Congress (IRC) standards. The will be following the process of Being implemented by Maharashtra alignment was done by leading acquiring land by negotiating with State Road Development consulting firm Ernst and Young the farmers for direct purchase. Corporation (MSRDC), the NMSCEW will reduce the current travel time between Nagpur and Mumbai of 16 hours to half. It will also connect the regions of Vidarbha, Marathwada and North Maharashtra to Jawaharlal Nehru Port Trust (JNPT) for speedy movement of farm produce, raw materials and finished products. This will help farmers and manufacturers get access to JNPT for import-export of the goods and services.

Rationale Picture 1- Shahapur Farmers display there sale deeds at an event held at The project will help boost state Collectorate on Saturday, July 15, 2017. From L-R- Thane Collector Mr. Mahendra prosper through a holistic process Kalyankar, PWD ( Public Undertaking) Minister Mr. EknathShinde, Mr. Kiran that integrates road connectivity Kurundkar, Joint Managing Director, MSRDC were also present.

18 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Special Feature Partnership Process are Nagpur, Wardha, Amravati, Project in Brief Farmers or landholders, who are Washim, Buldhana, Jalna, Having Greenfield alignment, the major stakeholders in the mega Aurangabad, Ahmednagar, Nashik NMSCEW will be designed for project, are being taken into and Thane. The expressway speed of 150 kmph. The right confidence right from the will connect 26 talukas and 392 of way (ROW) will be 120 m beginning. They are being villages from these 10 districts in non-forest area and 90 m in informed about features of the directly and another 14 districts forest area. With a central median project in details by holding will be provided direct connectivity of 15m, the NMSCEW will be of regular meetings wherein their to this proposed Expressway. 6 lanes (2X3) carriageway with 3m. doubts are cleared and objections It will also have paved shoulder of considered. The farmers are also Land to be Acquired 2m apart from earthen shoulder. being informed about benefits of Of the total private land, nearly the project, value of the land to be 50% land (4455.31 Ha) is dry land Underpasses for wildlife and paid and other details. while 36% is seasonal irrigated cattle crossing are proposed land (3239.05 Ha). Only 14% land adequately as also flyover/ The authorities also conducted is irrigated land, the acquisition of interchanges at major road Joint Measurement Survey (JMS) which is being done by engaging crossings. The NMSCEW will in each district to identify the with the farmers for a negotiated also have vehicular underpasses ownership and boundaries of the price. (VUPs) and pedestrian underpasses land. Since 7/12 draft document (PUPs) at every village/town does not identify exact ownership The maximum land to be and alignment will avoid passing of the land, the JMS has been acquired falls in Aurangabad through major town/city. done as per statutory provisions. district which is 1683.91 Ha Besides identifying the ownership, followed by Buldhana district Apart from solar lighting, there JMS also recognizes what kind (1419.02 Ha), Washim (1409.14 will be emergency telephones of crop is cultivated on the land Ha) and Nashik (1290.80 Ha). at every 5km, food plaza and and whether the farmland has any Least area of land is to be acquired restaurants, shops and wayside structures constructed on it. from Nagpur district (263.79 Ha) amenities. The wayside amenities followed by Ahmednagar (359.53 include trauma centre, truck The JMS has ensured that how Ha) and Jalna (599.73 Ha). terminus, IT parks, educational much exact land the government institute, median plantation/ will have to acquire for the mega landscaping, bus bays, tunnel project, known as Maharashtra lighting, bridge beautification, Samruddhi Mahamarg. As per the street lighting and digitized survey, the state government will signage. acquire 9736.50 hectares of total land for right of way (ROW). Of The Expressway will also have free this, 8826.31 hectares is private Wi-Fi access, traffic surveillance land while 910.19 hectares of land and enforcement apart from belongs to the forest department. CCTV to monitor the project The government is already in length. the process of seeking necessary forest clearance and allotment of Prosperity Guaranteed alternative land for compensatory Besides this, the Maharashtra afforestation. Samruddhi Mahamarg will also help generate employment. Similar The NMSCEW will pass through Picture 2- Compensation amount credited to to the development witnessed at 10 districts of Maharashtra. These farmer’s account. Hinjewadi and Chakan in Pune, Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 19 Special Feature Satara and other parts of Western five-times more than ready more on Rs 4 lakh, so the farmer Maharashtra post commencement reckoner rate or average sales can get total compensation of Rs of Mumbai-Pune Expressway, rate. The final price will consider 5 lakh per Ha. Thus, the amount the state government is eyeing an the value of the land as specified gets 5 times more than the Ready encore in the regions of Vidarbha, in the Indian Stamp Act, 1899 Reckoner rates or average sale North Maharashtra and for the registration of sale deeds price. Marathwada after NMSCEW gets or Agreements to sale or the operational. average Sale price for similar types RTGS Mode of Payment of lands situated in the nearest The final amount arrived at after Once the Expressway is villages. holding consultations with constructed, the state government landholders will be paid up front. hopes of developing the areas It will also consider consented The amount will be credited to along it, as is the experience amount of compensation as the landholders’ account through from earlier road infrastructure agreed upon in case of acquisition RTGS mode of payment. This projects. This development of land for private companies, will ensure that the landholders will not only help the region or for public private partnership will not have to wait for the to be benefited with economic projects. The compensation for compensation to be paid. development, but also prove the project will be highest as helpful in arresting migration, compared to earlier projects such The state government has already which has been a major concern. as Gosikhurd Irrigation Project commenced the procedure to in Bhandara district, Multi-modal acquire the land through direct Land Acquisition, International Hub Airport at purchase scheme. The process Compensation Process Nagpur (MIHAN) and Navi started from Nagpur where While acquiring around 10,000 Mumbai International Airport sale deeds were signed and hectares of land for the project, (NMIA). compensation paid through the state government has decided RTGS. Mr. Ram AsreJokhulal to adopt direct purchase scheme Purchase value is calculated after Sahufrom Hingna tehsil in Nagpur wherein it will make upfront multiplying the Ready Reckoner district became the first landholder payment to the landholder after rates as per the multiplier factor to sell the land and receive the arriving at a final price of the land of the area. Added to that is compensation. In Thane also, the through negotiations. the cost of structures such as acquisition process commenced farmhouses, trees, wells etc. The while in other districts, the final The state government, through rate doubles up if the land falls purchase rates have been dialogues and deliberations, will be in agriculture or no-development announced and the process to paying highest-ever compensation zone. Finally, added to that is acquire the land will begin at any to the landholders in its quest to solatium, which is equivalent to moment. acquire land for the mega project. It 100% of the compensation. will be following the provisions of By implementing this process, Land Acquisition, Rehabilitation For example, if the ready reckoner the state government has and Resettlement (LARR) Act, valuation of the area is Rs 1 lakh defined transparency to bring 2013 with regard to payment of per Ha, the amount doubles up Maharashtra’s rural and urban value of the land. if the land is agricultural and in populace on same page. With no-development zone, that is NMSCEW, the state will tread The Government Resolution Rs 2 lakh. Further, solatium that is the path of prosperity and ensure (GR) dated May 12, 2015 equal to Rs 2 lakh is given and the overall development. The state suggests for 25 per cent additional total amount comes to Rs 4 lakh. government has taken NMSCEW compensation than that of Since the farmer is ready for direct as road to prosperity since it the LARR rates. This will be purchase scheme, he can get 25% believes in action.

20 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story MRO Association of India to put up a Centre of Excellence for Skill Development in Aviation Mr. Pulak Sen Founder Secretary General -MRO Association of India, Head - Aerospace & Defence Mr. Pulak Sen [email protected]

MRO Association of India, National Skills Qualification Demand for Skill Non-profit Professional Society, Framework which is a Development in Aviation which represents the interest of Government of India notification. Indian Civil Aviation has all its members, voice the issues witnessed an unprecedented to various Government and The MRO-COE for Skill CAGR growth rate of 10 per regulatory authorities and work Development would start with centin the domestic sector towards development of MRO an initial seed investment of up and 8.75 per cent in the as an industrial sector in India, is to US$5.4 million and would international sector in the last toying with the idea of setting be supported with further decade and has been among up of an Aviation Maintenance investmentsof up to US$ 43 the leading growth regions across Repair and Overhaul (MRO) million through the subsequent the globe. The aviation story Centre of Excellence (COE) in series of funding. around the world is centred on India. the growth in the Asia region and With this proposal, we seek to China and India are among the The MRO-COE is aimed at skilling receive support from the top players to receive attention at the large potential Indian Government of India/ Ministry the global level. workforce in areas of aircraft of Civil Aviation in the areas maintenance, repair and overhaul of long term subsides leased Aircraft manufacturers have taken in line with standards set forth by infrastructure at Bengaluru notice of this boom in air travel Director General of Civil Aviation airstrip. and have extended support by (DGCA) and International offering to provide inputs for Standards like European Aviation the development of the aviation Safety Association (EASA).

The MRO-COE is proposed to be setup in a State of India with a target to train and skill 240 people every year during the initial phase and gradually expand to train 1,920 people every year in Aircraft Maintenance, Repair and Overhaul.

The MRO-COE would be setup jointly by experience parties under the guidelines of Company’s Act and also in line with the Figure 2 Source : CAPA Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 21 Cover Story industry organically to meet the 1.6 billion - US$ 2 billion in overall returns on their challenging needs of the future. the next decade. This demand investments. creates an opportunity to have up With an order book of more than to 71 large hangars (capacity of 2 Similarly, the Skill Development 740 aircraft by Indian operators narrow body aircraft) in India to initiative by the Government and deliveries expected in the next meet the domestic need of up to has now created an environment ten years up to 2026, Indian Civil 50 million man hours in the next to support another key success Aviation is expected to grow from decade. This capacity would have criteria of availability of resources. a fleet of 400 odd aircraft to 800 the capability to create addition With an average growth of 35 off aircraft. US$ 500 million of revenue from to 40 aircraft every year by all foreign carriers. the airlines in India for the next With the average employment of ten years, we are staring at a about 100 people per aircraft in Aircraft Manufacturing propelled requirement of about 280 to 400 India, this industry would need an by the Government’s Make in certifying engineers every year. additional manpower of 40,000 India campaign and the interest people to support the capacity of large domestic conglomerates While the current throughput of addition and an additional 30,000 is expected to add about US$ 2 Aviation Maintenance colleges is people to support the attrition billion in the next decade. about 6,000 students a year, the of the employed workforce. This dwell time of these students to puts a daunting task of having The total contribution of become a certifying engineer 70,000 people trained in aviation aviation including the direct stands at about 5 years (in best in the upcoming decade. contribution to the revenues case scenario) and up to 7 to 8 of airports in the next decade years (in normal scenario). New growth engines for the propelled by the growth engines next decade of MRO and Aerospace While DGCA issues the licenses In the last decade the primary Manufacturing would be about to the engineers, the responsibility growth engines of aviation in US$ 47 billion. of nomination of engineers lies India have been the airlines, with the organisation employing however the next phase of growth Key criteria’s for success of the engineers and thus an overall in Indian Civil Aviation would growth engines assessment of a candidate is still have three simultaneous growth The growth engines and the performed at an organisation engines. resultant impact on the economy, level. however are based on certain key Aircraft Manufacturing and success criteria’s. Decongestion We at MRO Association of India Aircraft Maintenance, Repair and of airports, infrastructure and are a body which closely interacts Overhaul would be competing regulatory support for enabling with the industry players and have for the second fastest growth the growth engines and availability been at the forefront of discussing accelerator in the Indian Civil of resources to cater to this the need for improved and skilled Aviation context in the next growth are the three key pillars manpower output from training decade. to drive these engines. With the institutes which could meet the foresight of PPP models in airport demands of the industry without The total business of Aircraft development, the environment compromising on the quality MRO is about US$ 800 million to support this growth has been of engineers. Researching the and more than 85 per cent of created using private partners current requirements and the this business is currently being who would aim at maximising the future requirements of the industry, performed outside India. This infrastructure to increase the we have studied the steps taken by industry would convert to US$ various organisations and bodies in matured countries and markets

22 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story and it further strengthens the To set-up the CEO, the Association • Training delivery – need for a development of centre will bring together four key ensuring availability of of excellence paralleled to highest partners in the business of Trainers/ master training, industry standards to skill large Aviation Skill Development i.e. curriculum, content, workforce in a short span of time a) National Skills Development classrooms, labs, training to meet the growing demand. Council through AASSC, b) aids MRO Association of India, c) An effective association of Lufthansa Technik and d) A State • Mobilisation of trainees industry players Government. We at MRO Association of India, • Prepare trainee for have aimed at being a central With an active and large network placement representative body to represent of organisations at our core and the needs of the aviation the access to a large employed 3. Role of MRO Association maintenance sector with all workforce, we have taken the of India Regulatory and Government initiative to bring together the bodies. We currently represent demand for international level • Project Management all the maintenance providers skill development and the supply in India and have been actively from large international players • Providing industry supported by airlines with large and incumbent domestic players interface for development maintenance setups like Air to create a sustainable long term of curriculum & content India, Jet Airways, Air Works solution for the industry. and support in India, GMR Aero Technik, etc. placement Role of Various Parties As an industry representative, 1. State Government 4. AASSC/ NSDC MRO Association of India have a. Support under National also built strong relations with • Provision of Land. Skills Qualification renowned international maintenance Practical training in Framework by providing organisations and have MRO needs to be done necessary Occupational spearheaded many joint platforms on fly-worthy aircraft. Standards for Affiliation for international maintenance The preferred location organisations and domestic would be next to an b. Audit and quality maintenance organisations to airport. It is proposed assurance of Training share learnings and outcomes. to seek land/ building/ Delivery hangar within an We also are a body which provide existing airport. c. Allocating Assessment a platform for networking for Bodies for assessment engineers employed in the aviation • Statutory and regulatory sector and provide support to new clearances for the d. Joint certification of MRO ventures in India. MRO project implementation candidates along with Association of India has also taken Lufthansa Technik an initiative to work closely with 2. LufthnsaTechnik the Aerospace and Aviation Sector Broad outcomes of the Skill Council (AASSC) to develop • Will be affiliated to proposal the Qualification Packs (QP) and AASSC as a Training This proposal envisions a total National Occupation Standards Partner investment of US$ 43 million (NOS) for the Airline and MRO in 8 years starting with an initial sector in India. seed capital of upto US$5.4

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 23 Cover Story million which would be used The COE aims at developing the to setup a state of the art skill best aviation maintenance talents training facility in a particular at an affordable cost. The COE state. The facility will kick off would provide latest training at with an annual throughput of 120 60 per cent of the current cost students scaling up to 240 students of maintenance courses. Over the a year in the subsequent year and eight years, COE will expand to a final throughput of about 1,920 develop a uniform level of talent students by the end of eight years. across India.

The students trained at the The COE also aims at setting up COE would be equipped to get student exchange programmes absorbed immediately in the providing access to current industry and equipped to clear the students to the global best DGCA examination for licensing practices in the areas of aircraft in one year as against current five maintenance year requirement, thus filling the gap between existing and future supply and demand.

Aircraft Maintenance COE MRO Association of India and Lufthansa Technik are coming together to setup a state-of- the- art Centre of Excellence which would boast about the most advantage training setup in the field of aircraft maintenance. The COE would be modelled on providing in-depth hands on training with the latest maintenance training simulators, latest aircraft models and large scale testing models to ensure that the students are equipped with the latest tools and techniques to perform maintenance on the latest aircraft technologies.

Lufthansa Technik brings together decades of experience in teaching and latest infrastructure on the latest aircraft technologies by way of its extended partnership with other key aviation manufacturers.

24 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story AEROSPACE INDUSTRY IN INDIA - Opportunities and Challenges Dr. S. D. Naik Former Chief, The Economic Times Research Bureau, Mumbai and Economics Editor, The Hindu Business Line, Mumbai Office [email protected] Dr. S. D. Naik

Rapid Growth in Civil military aircraft, overhaul and Authority of India (AAI). By Aviation maintenance of aero engines 2020, AAI aims to operationalise The Indian aviation industry has and production of avionics, around 250 additional airports grown at a rapid pace over the last components and accessories, across the country. Passenger decade. Privatisation has opened both in civil and military aviation traffic handled by airports in India up gates for many international sectors. India is also fast emerging is set to grow to 421 million by players to reach out to the large as a centre for engineering and 2020 from 223 million in 2016, untapped middle class market design services in this sector. indeed a phenomenal growth. in India. Now India is the ninth largest civil aviation market in the At present there are about 20 This is indeed a plan for a big world and is projected to become major aviation enterprises in India. infrastructure push which will call the third largest by 2020. Driven Of these, the top 10 are: (1) for relentless efforts and allocation by the rapid increase in passenger Hindustan Aeronautics Ltd of financial resources on a large traffic over the last few years, (HAL); (2) Brahmos Aerospace scale. Government alone may not almost all Indian airlines are Pvt. Ltd; (3) Bharat Electronics be in a position to make available focussed on increasing their Ltd.; (4) Electronic Corporation the resources required for capacities. of India Ltd.; (5) Boeing operationalising 250 additional International Corporation India airports across the country by The rapid growth of civil aviation Pvt. Ltd.; (6) Raytheon; (7) 2020 and serious efforts may be over the past few years has put Lokheed Martin; (8) Honeywell needed to ensure private sector tremendous pressure on Aerospace; (9) BAE Systems; and participation, may be in the form the existing civil aviation (10) GE Aviation. of joint ventures. infrastructure in the country. Hence, the thrust now is on Of these, the biggest one HAL, Incidentally, the Government of modernisation of airports, based in Bangalore Karnataka India released the National Civil communications, navigation and is a State-owned aerospace and Aviation Policy (NCAP) in June surveillance systems for air traffic defence company and was formed 2016. This new policy is expected management, radars and facilities way back on October 10, 1964. to help revive some 100-plus for maintenance, repair and non-functional airports in India, overhaul of aircraft and Big Infrastructure Push improve connectivity across the subsystems. India’s fast-growing civil aviation country, and further simplify the sector offers tremendous growth rules, making it easier for foreign Thus, there is enormous potential prospects for the aerospace players to participate. for collaboration and creation of industry in the country. Presently, joint ventures in this sector for the country has 464 airports Another area of focus is the establishing maintenance, repair, and airstrips, of which 125 increasing number of public overhaul facilities for civil and airports are owned by the Airports -private partnerships (PPP)

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 25 Cover Story to develop the sector with Of the total market opportunity with the country’s national carrier, government - backed financing, of US$ 70 to72 billion over the having lost nearly US $ 1 concessional land allotment and next 10-12 years, almost US$ 35 billion annually over the last four tax holidays. Incidentally, with to 54 billion will emanate from years. total investment of US$ 3 billion, electronic spend as part of the airports in Bangalore, Cochin, platforms, while another US $ Incidentally, access to modern Delhi, and Mumbai 17.8 billion worth of demand technology remains the biggest were expanded under the PPP will come from projects that are challenge for Indian aerospace route, increasing the overall traditionally called system-of- manufacturing companies. The efficiency. system projects. Hence it would industry is badly in need to be important for the country keep pace with global aerospace Projections over next 10-12 to make efforts for technology technology across the value chain. years transfer from more advanced As operating conditions and ease Even these efforts appear quite nations. The role of the of doing business improve across inadequate if one looks at government will be very important India, more and more global the projections by competent here tomodernise its aerospace private companies within the organisations about the growth and defence equipment base aviation and defence sectors are prospects of the sector over the by addressing the prevailing expected to forge partnerships next 10-12 years. Hence more shortcomings as well as by with Indian companies. That will efforts are needed to meet the building additional capabilities bring in the potential rewards for challenges. For instance, according through capital acquisition. those venturing in the sector. to a joint report by India Electronics & Semiconductor Risks and Potential Rewards The encouraging development Association (IESA), Nasscom and However, along with the evident is the shifting dynamics of the Roland Berger, the market for exuberance, it needs to be noted sector. Once a tightly held India’s aerospace and defence that much of the civil aviation monopoly of the state-owned sector is projected to reach US$ market in the country still aeronautical giant, HAL, the 70 billion from its present size of carries substantial risk. Most Indian aerospace sector is now just US$ 1.7 billion. Indian airlines are heavily indebted showing signs of resurgence with a number of private entities

26 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story working towards acquiring a range these years even as China has In 2010, this company began of manufacturing capabilities and made considerable progress. It is developing a 25,000 sq. metre technological expertise. sad that India has not been able facility outside Bangalore to to produce a single aircraft for produce airframe parts and Lack of domestic commercial purposes while China assemblies within the country. manufacturing has three large aircrafts on its sale The facility was formally The real worry so far was the lack list. inaugurated in 2013 and is now of aviation-based manufacturing delivering aerospace sheet metal in India after all these years. Entry of Private Sector parts and assemblies for global While the Indian automobile In the wake of liberalisation in the companies. The company recently industry and the space industry in early 1990s, private participation signed a “Statement of Intent” the country have done quite well, in the sector made modest with Airbus Helicopters for aviation-based manufacturing has beginnings and has steadily grown forming a joint venture to lagged woefully behind. India since then. Some of the prominent produce military helicopters in desperately needs to build up private companies that have India its aviation manufacturing base entered the sector are: without losing further time. In Bharat Forge fact, with the past government Tata Advance Systems Ltd. This is another Indian company policies, even maintenance, repair Of all the contenders, Tata that Airbus is looking at to have and overhaul services have not Advance Systems Ltd (TASL) some of its aircraft parts forged been adequately developed and appears to be the one nearest in India as the next logical step to often, our airlines are required to acquiring the capability to expanding its supplier base and to send their aircrafts abroad for manufacturefull aircraft, radars outsourcing activity in a fast- servicing. and unmanned Aerial Vehicles growing market. Bharat Forge (UAVs). It has tied up with is already having a similar Unfortunately, the Indian public Airbus for the manufacture arrangement with Boeing. sector aerospace industry, of C-295 transport aircraft, a protectedby successive governments, replacement for Avro HS-748. Reliance Defence Ltd. does not have much to show by Its partnership with Airbus for This is a wholly-owned subsidiary way of results for all the money C-295 would include supply of 16 of Anil Ambani’s Reliance Group. spent over the last seven decades. aircraft in fly-away condition and It has set up the Dhirubhai On the other hand, the private 40 to be built in India. This would Ambani Aerospace park spread sector was denied the opportunity be a major breakthrough for over 400 acres of land at it deserved. Despite this, the private participation. Nagpur for the manufacture of private sector, which made a aerospace components. It has very late entry in the sector, has Mahindra Aerospace entered into a joint venture with shown considerable progress and Mahindra Group entered the Rafael Advance Defence Systems achievements with collaborations aerospace industry in 2008 Ltd, Israel. The initial outlay with foreign manufacturers. through its new entity Mahindra for the joint venture, excluding Aerospace. In 2010it acquired the technology cost, will be Although India and China entered Australian entity’s Gipps Aero Rs. 1,300 crore. The company the aerospace domain almost at and Aerostaff. It is the first will be located at Pithampur the same time, China has shown Indian company to go into full near Indore, , considerable progress compared aircraft production, albeit a small and it will make air - to - air to the poor show by India. one and that too outside India. missiles, air defence systems and India’s technology absorption large air ships. has remained negligible after all

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 27 Cover Story As per the current guidelines of manufacturing in this sector. It partner KPMG, explored the the Centre, 51 per cent holding has 150 Computerised Numerical possibilities of the sector in India in the company would be from Control (CNC) machines with emerging as one of the shining Reliance Defence and the rest an investment of US$ 150 sectors says: The aerospace sector would be held by Rafael. The JV million and is expected to generate in the country is at the inflection is expected to provide a big thrust revenue to the tune of US $ 75 point, similar to the telecom and for the indigenous development million per annum when operated automotive sectors two or three of high precision weapons system at its peak capacity. Airbus Group decades ago. Hence it needs in India. is a key customer of Aequs. sustained government support to develop critical mass, skills and R The Make in India initiative Hyderabad SEZ & D to achieve its full potential. launched by Prime Minister The country’s youngest State Narendra Modi in September has recently set up a 2014, has paved the way for Special Economic Zone (SEZ) airframe manufacturers to in Adilabad, on the outskirts increasingly use the services of of Hyderabad for aerospace aerospace suppliers in the country. products and has already However, the momentum is still secured its maiden investment a little slow. However, there are from Tata Group for signs that things will change for manufacture of fuselages and the better with the Department wings for Dornier 228 aircraft of Industrial Policy and produced by Swiss-based Ruag Promotion (DIPP) proposing AG. The Tata Advance Systems to raise the FDI cap to 74 per Ltd (TASL) will set up a cent. This has encouraged quite manufacturing facility here. a few Indian companies to enter into joint ventures with foreign Summing Up companies. It is evident that lack of domestic manufacturing capabilities Special Economic Zones foralmost seven decades – both (SEZs) in civil aviation and defence The country’s first SEZ for aerospace manufacturing - had aerospace sector was set up by remained a major worry till the Quest Global at Hattargi, 37 km. early 1990s. After opening up of from Belgavi in Karnataka. It the sector for private sector in the is now rebranded as Aequs and post-liberalisation period in 1990s, is spread over 300 acres of land and the entry of private sector with an investment of Rs.150 enterprises, the sector has shown crore marking a big leap for the considerable progress. Thereafter, sector. It provides an ecosystem for the Make in India initiative original equipment manufacturers, announced by Prime Minister their suppliers and ancillaries Narendra Modi in September with a thrust on precision 2014, there are signs that things manufacturing. are changing for the better.

It has covered much ground in Evidently, as a recent report giving practical shape to domestic prepared by CII and its knowledge

28 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story

MIHANMIHAN Maharashtra Airport Development Company Ltd. Maharashtra Airport Development Company Ltd.

MaharashtraMaharashtra Airport Development Airport Development lane roads; Co. telecom Ltd., system (MADC using) is companySciences established(AIIMS) on by 150 Govt.of acres. Co. Ltd., Maharashtra.(MADC) is MADC company is the Nodaloptic Agency fibre ofcable; the Govt. water of Maharashtsupply - Patanjalira for developingAyurved a Multi-modalhas been establishedInternational by Govt. Passenger of & Cargoboth Hubpotable Airport and (forMIHAN other) and uses; a multi-productallotted above Special 300 Economicacres of Zoneland adjoining the airport. MADC is also developing 9 other airports in the State of Maharashtra. The MIHAN Maharashtra. MADC is the storm water drainage; sewage for its project has an area of 4200 Ha., abutting to Nagpur airport comprises up gradationMega Food of existing and Herbalairport, Nodal AgencyMADC is ofalso the SpecialGovt. Planning etc. A Authority power plantfor MIHAN of 246 notified MW isarea Parkunder theand provision Indo-UK of MRTP Institute Act. of Maharashtra for developing operational to supply power to of Health has procured 153 a Multi The- modal flagship International project of MADC, units MIHAN, in MIHAN. Nagpur is very strategically locatedacres of at theland geometrical in SEZ for centre setting of Passenger the& countryCargo Huband isAirport easily accessible by road, rail and air. This is perhapsup thea Healthonly multi City product to SEZpromote which (MIHAN)is adjacentand a multi-productto an existing international A number airport. of Nagpur leading has adequate IT Medicalavailability tourism of skilled in man-power India. for Special Economicthe industry Zone with adjoining 27 Engineering Companies Colleges Likethat produceInfosys, about TCS 85 00 engineers every year. MIHAN SEZ, the airport.which MADChas already is becomealso operational,and Tech Mahindrais spread over have an started area of moreFollowing than 1382are the Ha. Incentives and boasts and off developingquality 9 other infrastructure airports likein 6, 4their and centres, 3 lane roads;while ITtelecom parks aresystem be- usingfacilities optic fibre offered cable; to water units supply in the - the State bothof potableMaharashtra. and for The other ing uses; developed storm water by large drainage; corporates sewage SEZ: etc. A power plant of 246 MW is MIHAN operationalproject has to an supply area poweof r tolike, units Shapoorji in MIHAN. Pallonji. Residential

4200 Ha., abutting to Nagpur complexes are also being • Duty free import/domestic A number of leading IT Companies Like Infosys, TCS and Tech Mahindra have started their centres, airport compriseswhile IT parks up aregradation being developed developed by large by corporates developers like, ShlikeapoorjiPallonji. procurement Residential complexesof goods arefor of existingalso airport, being MADC developed is also by developersMahindra like Lifespaces Mahindra and Lifespaces Moraj and Moraj development, Infra on lands allottedoperation by the SpecialMADC Planning next Authority to the SEZ. for Container Infra Corporationon lands allotted of India by MADCLtd (CONCOR) is constructingand mainte thenance Multi-Modal of SEZ MIHAN notifiedLogistics Park area (MMLP) under along the nextwith theto rail the terminal SEZ. on Container109 acres of land to connectunits. MIHAN with different provision portsof MRTP in the Act. country. CompaniesCorporation like Hexaware of BPS,India TAL andLtd LupinPharma have already started their production from MIHAN SEZ, (CONCOR)whereas TCS and is Airconstructing India-Boeing the have recently• 100% started theirIncome operations. Tax The flagship project of MADC, Multi-Modal Logistics Park exemption on export MIHAN, In theNagpur recent developments,is very (MMLP)Indian Institute along of Managementwith the rail (IIM-N) is goingincome to be tofor be SEZ set upunits on 142for strategicallyacres locatedland in Non-SEZat thearea ofterminal MIHAN alongon 109 with acres All Indiaof land Institute to of Medical the Sciencesfirst (AIIMS)5 years,50% on 150 for geometricalacres. centre PatanjaliAyurved of the country has connect been allotted MIHAN above with 300 different acres of land for the its Mega next 5 Food years, and thereafter Herbal Park and Indo-UK Institute of Health has procured 153 acres of land in SEZ for setting up a Health City and is easily accessible by road, ports in the country. Companies and 50% of the ploughed to promote Medical . rail and air.Following This isare perhaps the Incentives the andlike facilitiesHexaware offered BPS, to unitsTAL in andthe SEZ: back export profit for the only multi product SEZ which Lupin Pharmahave already next 5 years is adjacentDuty to free an import/domestic existing started procurement their ofproduction goods for development,from operation and maintenance of internationalSEZ airport.units. Nagpur has MIHAN SEZ, whereas TCS and • External commercial adequate availability of skilled Air India-Boeing have recently borrowing by SEZ units man-power for the 100% industry Income with Tax exemptionstarted their on exportoperations. income for SEZ units for thupe firstto US$500 5 years,50% million for inthe a 27 Engineering Collegesnext 5 years, that thereafter and 50% of the ploughed back export profityear for withouthe nextt 5any years maturity produce about  External8500 engineers commercial borrowingIn the recent by developments,SEZ units up to IndianUS$500 million in restrictiona year without through any recognized maturity every year. MIHANrestriction SEZ, which through Institute recognized bankingof Managementchannels banking channels has already become Exemption operational, from is Central (IIM-N) Sales Tax is going to be to be set  spread over an area Exemption of more from than Service up Taxon 142 acres land in Non-SEZ • Exemption from Central  Single window clearance for Central and State level approvals 1382 Ha. and boasts off quality area of MIHAN along with All Sales Tax  Exemption from State Sales tax and other levies as extended by the State Government infrastructure like 6, 4 and 3 India Institute of Medical

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 29 Cover Story

• Exemption from Service take forward your application, Tax we would request you to kindly provide us the following • Single window clearance documents: for Central and State level approvals 1 Expression of Interest in the attached format • Exemption from State Sales tax and other levies as 2 Project Report extended by the State Government 3 Company Resolution • 100% FDI allowed

• Public Utility Service 4 Copy of Memorandum & Articles of association/Partnership (PUS) status Deed

The current rate for the land 5 Copies of PAN(Company) in SEZ is Rs. 1725 per sq. metre (Approx. 17.25 million INR per Hectare) and Rs. 2875 6 Last three year’s audited Balance Sheets, ITRs Per sq. metre in Non-SEZ. MADC also provides ready-to- work fully furnished space in 7 Passport size photographs of directors and their PAN numbers the Central Facility Building in MIHAN SEZ where operations 8 Sales Tax Registration can be started immediately. The space is extremely useful for service and exporting companies 9 Location Plan (Will be provided by MADC) because of the location and infrastructure benefits provided in MIHAN. Various IT Companies along with the office of Maharashtra Airport Development Company (MADC) and Development Commissioner are located in Central Facility Building. The rent for bare shell facility will be Rs. 30 per sq.ft. per month, whereas the Warm shell facility is available at the rate of Rs. 33 per sq.ft. per month.

We have around 410 Ha of land available in SEZ to be leased out to various companies. To

30 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 31 Cover Story The Aerospace Industry : Some Reflections Dr. Dhananjay Samant Author is an applied economist and social scientist specializing in quantitative analysis, forecasting, and macroeconomic policy formulation. [email protected] Dr. Dhananjay Samant

Setting the tone growth of an indigenous strategic global alliances and India has now become a large and defence industry, India’s mutually beneficial partnerships, growing market for commercial attractiveness to global defence as well as a rise in MNCs setting and defence aircraft, which is too companies (in which the up manufacturing facilities all over lucrative for global interests to aerospace sector constitutes a India, thus indigenizing much of overlook. With constantly rising key component) is on a steady the basic infrastructure needed geopolitical tensions in South Asia rise. Also, with defence budgets for the long-term growth of the and the concomitant increase in shrinking worldwide India is industry. This will – to a certain military and defence expenditures, projected to be the new star on extent – also help alleviate the the demand for a wide range the horizon. alarming unemployment scenario of reconnaissance, surveillance, in the country and contest the transport and combat aircraft As far as the commercial prospects of jobless growth. based on sophisticated stealth aerospace subsector goes, a stable technologies is expected to rise GDP growth and an expanding Over 60% of the total flights in further. The Indian aerospace middle class with rising India are made by low-cost industry has registered a CAGR aspirations will likely drive a carriers. The National Civil of about 10%, as against the sustained expansion. In particular, Aviation Policy has made flying global average of about 4%. strong global airline traffic more affordable for India’s Our market represents about 9% and improved profitability of expanding middle class, boosted of the Asia-Pacific market, and the carriers, chiefly on account competition within the industry, is propelled chiefly by a strong of reducing fuel costs, is likely and got more of the country civil aviation policy as well as to drive the profitability of the connected as never before. The rising defence spending. By sector. In this subsector, India calculated steps that the Indian 2020, India could become the has the highest growth of global government has taken in moving world’s third largest aerospace traffic (8.6% in 2015), and it is towards the open sky policy, market with a steadily expanding expected to become the world’s increase in military, civil and commercial potential. third largest aviation market in the business aircraft fleet in the coming decade. country, the growing preference A large part of the growth in for air travel by India’s largely the aerospace industry will come The Government’s Role underserved middle class, and from the defence sector, which The government has been playing the focus by the authorities has grown substantially in recent a largely proactive and supportive to optimize cost of aircraft years, mainly due to role in the development of operations, provides a strong several unfortunate political the aviation industry. With the foundation for the growth of developmentsin the subcontinent. progressive relaxation of FDI the Indian aerospace industry. It With the government taking regulations, the nation’s defence marks a milestone in liberalizing concrete steps for the sustained sector is poised to grow through the nation’s aviation market and

32 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story unleashing the sector’s innate Globally renowned aerospace The resurgence of global security potential. India’s domestic air and defence companies such as, threats, including international travel market has boomed like Airbus, Boeing, Lockheed Martin, terrorism, and anticipated never before in the past decade, and Safran have already made increases in US defence budgets as the government has gradually their presence felt in the Indian is likely to promote the growth opened it up to competition, market, with some of them of the aerospace industry in the boosting both regional planning further strategic inroads defence sector. Higher spending connectivity and customer service over time. For instance, Airbus on national security by major in the process. Our country’s recently announced a joint- regional powers like China, Japan, unique demography is also an venture with Mahindra Defence and India will also provide an important factor in driving the Systems to manufacture helicopters impetus to it, at least in the increase in travel demand by air, for the Indian military. Similarly, foreseeable future. Several resulting in a significant order Boeing entered into a joint- governments have already started increase for new aircraft. venture with Tata Advanced to beef up their defence budgets Systems in December 2015 to to address security threats and Offence is the best defence manufacture fuselages of Apache battle terrorism. For example, Indian defence expenditure has Helicopters in India. As the China, Russia, Saudi Arabia, and increased at a CAGR of 9.7% industry opens up further to South Korea enhanced their 2015 from 2008-2016, reaching current foreign collaboration, one can military expenditure by 7.4%, levels of $ 38.3 billion in 2016- expect a steady increase in global 7.5%, 5.7% and 3.6% year-on-year 17. Our defence sector saw much defence companies entering our respectively. This is, obviously, activity in 2016 with the nation’s aerospace sector. a boon for the international defence budget of $50.7 billion aerospace industry. for 2016 becoming the fourth Investment opportunities in the largest global defence budget. In aerospace and defence sector Civil Aviation and the this regard, we have moved up today include: National Economy from the sixth position in 2015. By increasing communication By 2018, our defence budget is • Airport development through and distribution channels, as well projected to increase to $56.5 public-private partnership as accelerating the exchange of billion as the country recapitalizes (PPP) mode ideas, goods, and services, civil and strengthens its military to • The development of aviation is crucial to the economic counter potential armed threats Maintenance, Repair and growth of the planet. Just as from China and Pakistan, while Overhaul (MRO) facilities the economy is affected by civil simultaneously upgrading the aviation, the growth in air traffic existing military infrastructure. • Development of integrated is also affected by the growth in Further, the government’s aerospace parks the economy (as measured by emphasis on timely execution GDP). International economic and improved policy, in • Modernization of existing deregulation started in India in the consultation with industrycaptains, airports 1990s has led to a steady growth is expected to lead to technological in the Indian economy, which has • Assembly and manufacturing advancements in the sector. This caused a parallel rise in air traffic of a wide range of aircraft will result in increased opportunities within and to/from India. for the entry of sophisticated components foreign players, from whom • Opportunities for skill The general volume of activity many best global practices can be development in the aerospace (measured by the passenger- gainfully imbibed in a win-win sector via PPP mode kilometers flown) is still small in scenario. collaborations our country compared to many

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 33 Cover Story with the right culture is a prerequisite for the sustained growth of any organization. Innovative organizations with a focus on culture and incentives to retain the right people will maintain a competitive edge. With engagement and employee retention being some of the top talent issues facing the public and private sectors today, there is a lot they can learn from how the global aviation sector has created a consistently motivated and high-performing workspace. others – approximately 120,000 uncontrolled spending and for India vis-à-vis 823,000 for the inefficiencies of scale. In ■■ Collaborating beyond man USA and 488,000 for China in today’s economic scenario, made boundaries: In 2016. However, it is only a matter such solutions are a financial 2015, NASA celebrated its of time, perhaps a few decades, luxury that no organization 100th anniversary of PPPs in before India catches up and even can afford. aerospace. Theinnovative surpasses most other parts of the power of the private world. Economic evolution and ■■ Adoption of a human-centric sector became increasingly the growth of civil aviation are perspective: A keen awareness visible in the early 2000s mutually reinforcing elements, that high levels of ease and when global entrepreneurs and their symbiotic relationship comfort are necessary for began designing and needs to be understood and human life to survive in deploying competitive and adequately nurtured. stratospheric conditions, has innovative space systems subtle but vital implications which were demonstrably for how governments What we can learn from the more cost-effective than develop and execute complex Aerospace industry the national monopoly socioeconomic programmes The aerospace industry contains government operated for the welfare of their some insightful lessons for systems. This brought about citizenry. Even though the organizational development in the (belated) realization link is not direct, it all boils both the public and private that there is no option to well- down to the value put on sectors. They can be broadly designed PPPs, especially in human life in demanding outlined as follows : strategic industries, if nation conditions. Ultimately, it is all building is to result. ■■ Smart and affordable about optimizing the purpose, solutions have to be an flexibility, efficiency, wellbeing, and satisfaction of both Challenges to the global integral part of the growth aerospace industry strategy: During the Cold employees and customers. The global supply chain needs to War, government aerospace ensure that the steadily increasing programmes were characterized ■■ The creation of high- requirements for capacity, through by massive investments, performance organizations: put, quality, delivery, and pricing which often included Attracting the right people

34 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story can be satisfactorily met – and the fullest, and constrains the in the military sphere … was that exceeded. This may result in innate potential of this otherwise incremental change was seldom some painful industry mergers self-motivated and vibrant optional, and often thrust upon it and acquisitions as some of the industry. at the most unexpected times. Far smaller companies may not be reaching challenges and radical able to meet the rising financial, Conclusion goals necessitated the leapfrogging managerial, technical, risk-taking, The aviation and aerospace and integration of several diverse and investment requirements industries have traditionally been technologies as well as the needed to survive in a borderless – and will continue to remain – of rapid development of disruptive world of growing competition. a highly dynamic and innovative innovations, along with their This does not augur well nature. Historically, prowess in time-bound and successful for international socioeconomic aerospace was all about achieving implementations. There is much stability and public policy must the seemingly impossible and that the industry and its evolve suitably to deal with it. continually redefining the ultimate evolutionary process have to technological frontiers for teach us, particularly in terms of Also, international air commerce humankind. After all, our ability changing our mindsets towards today is still, in many aspects, to explore the universe through life and work by adopting a governed by a framework of rules air-travel drives global progress more malleable and experimental laid down over half a century ago. and enriches civilization uniquely. attitude. Despite today’s progressive trends The business models, products of free trade, global markets, the and services of the aerospace financial integration of entire industry require continuous continents, and the use of the innovation and improvement, internet, this dynamic, globalized, and can serve as a source of and technology-intensive industry inspiration to the development of remains shackled by some many other economic activities outdated regulations that of national and international occasionally impede the creation importance. of a level-playing field and lead to unfair competition. This prevents The key to the aerospace stakeholders from benefiting to industry’s success … especially

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 35 Cover Story EMERGING ISSUES IN AEROSPACE INDUSTRY: AN INDIAN PERSPECTIVE

Dr. R. K. Pattnaik Dr. R. K. Pattnaik Professor at SPJIMR, Mumbai [email protected]

Ms. Ananya Sivaraman Student at St. Xavier’s college, Mumbai [email protected]

Ms. Ananya Sivaraman

Aerospace is the human effort in it is still dependent on the western 1. Regulations and science, engineering and business world and Russia for 70% of its Government Policies to fly in the atmosphere of Earth military hardware. The government has the primary (aeronautics) and surrounding responsibility of designing and space (astronautics). Aerospace The ‘Make in India’ campaign enforcing the regulatory industry is by and large engaged has added a new dimension to frameworks around the aerospace in research, design, manufacture, defence production by making sector. Due to the complexities operation, and maintain once India the preferred designation of the regulations around it, there of aircraft and/or spacecraft. for co-designing development and are several layers to the decision Aerospace activity is very diverse, production in India making for the manufacturing, with a multitude of commercial, and hence the growth, of the industrial and military applications. Against the above backdrop the industry. India has not been able to create a present article has focused on the world-class globally-competitive emerging issues in the aerospace 1.1 Tax structure defence industry. Traditionally, industryin India. The organization India has a federal tax structure Indian armaments production of the article is thus. Section 1 whereby both the Central and has been entirely embedded covers the existing policies and the State Governments impose within a government-run military regulations. The initiatives under a range of taxes. The complex industrial complex - eight the Make in India campaign are and multi-tiered tax structure Defence Public Sector discussed in section 2. Section in India makes domestic Undertakings (DPSUs), 41 3 presents challenges facing the manufacturing uncompetitive in a Ordinance factories and the industry and future prospects range of situations. This is equally powerful Defence Research representing emerging issues. true of the defence sector where and Development Organisation Section 4 concludes. imported supplies of defence (DRDO). It is, also important to goods to Ministry of Defence note that India surprised the world (MoD) are subject to a lower by putting a satellite in Mars orbit incidence of taxes than locally sup- in its very first attempt. However,

36 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story plied goods. The civil aerospace refreshingly new attitudinal Service. FDI beyond 49% is industry is similarly disadvantaged. change in India’s policy-making allowed through Government There are tax incentives available processes, foster a trust between approval. For Non-Resident for R&D and for economic activity the government and the industry, Indians (NRIs), 100% FDI in Special Economic Zones (SEZs) and usher in major reforms to will continue to be allowed but these are limited and not improve India’s standing in World under automatic route. broad-based enough to provide Bank rankings. However, foreign airlines meaningful relief. would continue to be allowed As the ‘Make in India’ aviation to invest in capital of Indian 1.2 Foreign Direct Investment achievement report says, “India companies operating On the whole, the Government is the ninth-largest civil aviation scheduled and non-scheduled encourages private investment market in the world and presently air-transport services up to in both the civil and defence has a market size of USD 16 the limit of 49% of their paid aerospace sector with the goal of billion. The industry is poised to up capital and subject to the encouraging technology transfers become the third-largest aviation laid down conditions in the and achieving indigenization. market by 2020 and the largest existing policy. The Indian Government has by 2030. It is among the five significantly liberalized the civil fastest- growing aviation markets • Up to 100% FDI is permitted aviation sector. It welcomes globally, growing at over 20% year in Non-scheduled air domestic private participation in over year.”2 transport services under the manufacturing and R&D in the automatic route. aerospace sector with 100 percent Currently, the following policies Foreign Direct Investment (FDI) are in place : • Up to 100% FDI is allowed by the automatic route in permitted in MRO for most areas, the exceptions being • The extant FDI policy on maintenance, repair, and air traffic services. The defence airports permits 100% FDI operations; flying training sector has more restrictions: while under automatic route in institutes; and technical 100 percent domestic private greenfield projects (not training institutes under the investment is allowed, subject to following up prior projects) automatic route. licensing, in the manufacture of and 74% FDI in brownfield defence equipment, there is a cap projects (upgrading and • Up to 100% FDI is permitted of 26 percent on FDI 1. modifying existing projects) in Ground Handling Services under automatic route. FDI subject to sectoral regulations 2. Make in India beyond 74% for brownfield & security clearance under The government’s ‘Make In India’ projects is under government automatic route. policy and increase in the FDI cap route. in the revised defence FDI policy • An integrated Civil Aviation (from 26% to 49%), announced • As per the present FDI Policy is developed for the with a lot of fanfare during the policy, foreign investment first time in India-according Aero India show in February up to 49% is allowed under to Make in India, “To further 2015, was seen as a major step to automatic route in Scheduled encourage the civil aviation revitalise the aerospace industry Air Transport Service / sector in India, the MoCA and awaken it from its long Domestic Scheduled (Ministry of Civil Aviation) slumber. This government action Passenger Airline and released the National Civil was expected to infuse a regional Air Transport Aviation Policy 2016 (NCAP)

1Changing Dynamics : India’s Aerospace Industry by Pricewaterhouse Coopers (2009) 2http://www.makeinindia.com/sector/aviation

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 37 Cover Story in June 2016. The major focus cost of the private sector being 3.2. Aviation sector of this policy is to make flying kept out, has led to a situation The aviation sector could still affordable to the masses and which will take a long time to be be considered to be in a nascent to strengthen the regional undone.3 stage of development. But it is, air connectivity. The after all, a young industry, facing comprehensive policy which The private industry could not the same types of problems that was finalised after receiving really blossom until 2001, before others have at a similar stage of feedback and consultation by which regulation prevented private development. More than anything public and sector experts will rivals to defence-oriented state else, technological expertise and create an integrated ecosystem firms such as HAL, although small achieving zero-defect targets for the growth of the suppliers had been permitted. But are the most critical challenges industry by addressing 22 since then companies such as faced by Indian companies, say areas of the Civil Aviation Dynamatic Technologies - an consultants PwC. “India needs to sector.” Indian company involved in keep pace with the increasingly precision engineering- have high use of technology across the • MRO sector gets a boost as grown. One of the latest to design life cycle,” PwC says. High provision for adequate land emerge is Mahindra Aerospace, capital costs and low production for MRO service providers offering complete aircraft, volumes are also a problem, and it to be provided in all future aerospace structural components can hardly help that technology is airport / heliport projects and aircraft development services. continually advancing. where potential for such The company is steadily MRO services exists. developing a metallic aero 3.3. Skills structures manufacturing capability One of the root problems of the 3. Emerging Issues through a combination of aerospace industry is the lack of 3.1. Privatisation: rented operational facilities and skill to grow in the world market. The subject of privatisation of development of greenfield The reason for large imports 4 the Indian aerospace has always manufacturing plants. is the superior quality of and been a controversial topic. It expertise that goes into has been tried, tested and tried The entry of the private sector manufacturing. ”Shortage of again to inconclusive results.. In into the defence sector is a game skill-based workforce was posing fact, HAL started as a private changer. This revered holy cow a challenge to the growth of the limited company in 1940. Our no longer remains the preserve Indian aerospace industry in political leadership at the time of of the State. The private industry the absence of synergy between gaining independence reposed can play a crucial and positive policy, industry and academia”, faith in the public sector model role to help overcome these HAL chairman RK Tyagi went for all heavy and investment challenges. While the government on record to say or “India needs intensive industries and hence the has displayed the necessary better training and education present state of HAL. Afflicted by political will for indigenisation infrastructure with a pragmati internal inefficiencies and process and establishment of an advanced policy - industry - academia frailties, its brand of indigenous manufacturing base in the country, ecosystem as opposed to top manufacturing has kept genuine the challenge lies in its down state led intervention to tap indigenous capability in aerospace comprehensive implementation the huge employment potential in out of our reach. Meanwhile, - an enabling policy framework, the aerospace industry”. the patronage HAL enjoyed at focus and commitment, including government behest and at the addressing the related fiscal and taxation issues. 3http://www.indiandefencereview.com/news/make-in-india-problems-and-prospects-for-the-aerospace-industry/ 4http://aviationweek.com/awin/growing-indian-private-aerospace-faces-challenges

38 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story 3.4. Civil Aviation Losses The aerospace sector employs navigation, surveillance, avionics No government failure comes high technology techniques and and state-of-the-art weapon even close to its failure in attracts a highly qualified systems over several decades, revamping the country’s national workforce and has the largest investing billions of dollars... carrier, Air India. Air India number of small and medium continues to bleed losses to the enterprise (SME) companies in What India needs is a single FDI tune of Rs. 2,636 crore in 2015- Europe. Also as an important slab of 74% in defence with clear 16 and Rs 5,859 crore in the year exporting industry, aerospace norms and a level-playing field. 2014-15. Government has once has benefited from support from Forty-nine % is of no use and again been forced to inject a sum UK Expert Finance (UKEF). In 100% may be too one-sided. The of Rs. 22,280 crore in March 2013/14, UKEF issued guarantees Indian obsession with ‘ownership 2016 to keep the airlines afloat. for the aerospace industry of and control’ needs to be curtailed. So far, the Indian government £961 million. This helped to Higher FDI limit will also expose has pumped in more than support the delivery of 95 aircraft certain global OEMs that are not Rs 30,000 crore in the airline. As of to 22 companies. Furthermore, keen to invest in India, and are December 2015, the 85-year-old UKEF provided support for 15% using 49% FDI as a convenient airline’s debt stood at over of all aircraft delivered by Airbus. 6 excuse to stay out. Rs 50,000 crore. Adding to this, it has been steadily losing market 4. Way forward. The Indian private sector needs share to rivals from the 35% share It may be noted that in the recent to be co-opted as a partner and in 2007 to 16% in early 2016. past several large-scale projects not a vendor by DPSUs. Certain and joint ventures instituted in this non-performing labs and plants of There was a time not too long sector in respect of production DRDO and DPSUs respectively ago when Air India set the global in both the commercial and need to be privatised. R&D funds standard for customer service. military segments will strongly for defence need to be allocated to Now, it seems to have fallen support the future of India’s the best Indian organisations and far behind its Middle Eastern aerospace manufacturing sector. universities. and South Asian counterparts For example, Reliance Defense in terms of quality services and Limited announced plans to The ‘Make in India’ programme in 5 business excellence. launch a global aerospace defence will have to be facilitated technology research center in by way of bold reforms in policy, 3.5. Infrastructure Bengaluru. Reliance also signed procedures and our approach According to Cordant Recruitment a cooperation agreement with towards global investors. There (a leading recruitment firm), the Ukrainian airframe manufacturer is an urgent need to facilitate key ingredients to global excellence Antonov in March to produce removal of other manufacturing in aerospace are a combination dual version air transport aircraft roadblocks, like land, power, of winning ideas, innovation and capable of supporting both transportation infrastructure, talent. A model example would be military and commercial taxation and multifarious Britain; more than 3,000 aerospace operations in India. government clearances. The idea companies operate in the UK, of technology transfer through including BAE Systems, GKN and Global Original Equipment either licence production or Rolls-Royce. Other international Manufacturers (OEMs) have offsetsis misunderstood by the companies with operations in the developed sensitive and strategic decision makers. One way to do UK include: Airbus, Cobham, technologies, especially in the this is to develop technologies Agusta Westland, Finmeccanica, aviation sector, related to engines, in-house, both designing as well Thales, Boeing, and Bombardier. 5http://indianexpress.com/article/blogs/the-challenges-facing--civil-aviation-sector-2782618/ 6http://www.cordantrecruitment.com/cordant-focus/technical-competence-is-at-the-core-of-a-successful-aerospace-engineering-career

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 39 Cover Story as manufacturing, so as to catch consuming; these need to have up. India has to deliberately enter clarity and the procurement cycle the age of innovation in which shortened. research and development becomes an integral component 5. Conclusion of science, technology and The reform process in the Indian engineering development, an aerospace industry, both military element totally disregarded by and civil, stands uniquely poised the Indian industries so far and today and, the industry has set unthinkable in the aerospace itself on a firm path towards a sector. transformational change.

National Aerospace Laboratories The process of transformation (NAL) could be made a centre has begun and there are for excellence in aerospace, with encouraging signs of the aerospace capabilities in developing industry emerging as a major analytical tools, simulation tools, factor in our increasing self- simulator platforms, and a centre reliance as well as the export- of flight research with a fully- oriented sector, with the potential capable experimental flight and capacity to provide world-class laboratory with their own opportunities for established experimental helicopters and firms in the global market. At the aircraft. same time, the domestic capability is being significantly enhanced, There is a need to incorporate through extensive tie-ups, joint mechanisms for formal public ventures and technology transfers. consultations with the Indian defence industry, both private Fundamental strength in the and public, on proposed changes Indian Industry already exists, before their adoption by the in the form of a large number Defence Procurement Board of SMEs, which in the past (DPB) and the Defence have been suppliers at the sub- Acquisition Council (DAC). component and component level: for the aerospace sector DPSUs, Many Indian companies, especially HAL, DRDO, ISRO etc. the new entrants into defence, These companies are gradually are yet to understand the finer transforming themselves into details of the Long Term major players in this sector, Integrated Perspective Plan modernizing with cutting edge (LTIPP) and its public version technologies to become suppliers the Technology Perspective for global aerospacecompanies Technology Roadmap (TPTR). vying to outsource products and The MoD needs to make this components from India. process more interactive; this would benefit the end users as well as industry. The MoD’s procurement procedures are still very cumbersome and time

40 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story AEROSPACE INDUSTRY IN INDIA Mr. Rattandeep Vij Author is an aviation enthusiast and has done engineering exports [email protected] Mr. Rattandeep Vij

Introduction While delivering the keynote the demands of the armed forces. One of the fastest moving sectors address at a seminar on Make in While Bangalore emerged as the in India is the Aerospace Industry, India – Defence and Aerospace, hub of aerospace industry in being the ninth biggest of the Mr. A. K. Gupta, Secretary India, smaller aerospace clusters world, it is expected to be the (Defence Production), Ministry are located around the cities of third largest by 2020. of Defence, emphasized that Delhi, Chennai, Hyderabad and Defence and Aerospace are going Nagpur. The city of Bangalore We have a large existing to play a significant role with qualifies as the hub of aerospace commercial and defense market regard to the Make in India industry of India, thanks to and with growing civilian traffic initiative which lays adequate the mushrooming of aerospace and ever expanding military emphasis on the manufacturing industry, research institutions and technologies. The last decade sector. increased global connectivity in has seen especially phenomenal the last five decades. growth which fueled domestic Historically, this field of activity and international passenger has been dominated by government HAL has developed comprehensive arrivals and acted as a catalyst for owned companies such as skills in the design, manufacture the overall industry expansion. Hindustan Aeronautics Ltd. and overhaul of fighters, trainers, Availability of skilled manpower (HAL), National Aerospace helicopters, transport aircraft, along with a favorable business Laboratories Ltd. (NAL) etc. engines, avionics and system environment will position India However, of late, private equipment. Its product track as one of the most attractive participation has been encouraged, record consists of 12 types of investment destinations in the which contributed to an accelerated aircraft from in-house R&D and coming years. growth. 14 types by licence production inclusive of 8 types of aero Indigenous Manufacture engines and over 1000 items of aircraft system equipment A lot of what is driving expansion Hindustan Aeronautics Ltd. (avionics, mechanical, electrical). and growth of the aerospace ( H.A.L.) HAL has produced over 3550 and defense industry is the Aircraft manufacturing was aircraft, 3650 aero-engines and government’s “Make in India” pioneered in India by industrialist, overhauled around 8750 aircraft initiative, a push for airframe Walchand Hirachand who and 28400 engines besides manufacturers to increasingly use established Hindustan Aircraft manufacture/overhaul of related aerospace suppliers based in the Ltd. in 1940 at Bangalore. Post- accessories and avionics. The country. The initiative also aims independence subsequent to company has the requisite for a certain percentage of the nationalization, the name was core competence base with a aircraft components to be changed to Hindustan Aeronautics demonstrated potential to become produced in India. Ltd. Almost the entire activities of the organization geared to cater to a global player. HAL has 19

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 41 Cover Story production divisions for Indian Space Research (PSLV) and Geo-synchronous manufacture and overhaul of Organisation (I.S.R.O.) Satellite Launch Vehicle (GSLV). aircraft, helicopters, engine and PSLV weighing about 300 tons accessories. It has also 9 R&D The Indian Space Research at lift off has the capability Centers to give a thrust to research Organisation was established in to put 1500 kg satellite in & development. HAL’s major 1969, to launch India into the polar sun-synchronous orbit. supplies/services are to Indian space age. Starting with satellites, PSLV with eleven consecutively Air Force, Indian Navy, Indian the first of which was named successful launches has Army, Coast Guard and Border Aryabhatta, the program has gone demonstrated its high reliability. Security Force. Transport aircraft onto building launch rockets, PSLV has launched eight satellites and helicopters have been making our nation not only for various customers from supplied to airlines as well as State self-reliant in launching our own abroad. GSLV with four successful Governments. The Company has satellites but also catering to the flights is capable of launching also achieved a foothold in export needs of foreign countries. 2200 kg satellites into geo- in more than 20 countries, having stationary Transfer Orbit. India demonstrated its quality and price India also has the largest has also created world class competitiveness. HAL is a major constellation of earth observation facilities at its space port in partner for the Space Vehicle satellites called Indian Remote Sriharikota near Chennai with programmes of the Indian Space Sensing (IRS) satellites with launch pads besides a host of test Research Organisation. It has better than one meter resolution. facilities for testing satellites and also diversified into the fields of IRS data is being used for a variety launch vehicle systems. industrial and marine gas turbine of applications such as crop business and real-time software yield estimation, drinking water Defence Research Development business. HAL is now ranked missions, waste land development, Organization (DRDO)is a network 34th in the list of world’s top 100 forest cover mapping and a host of 52 Defence Laboratories in defence companies. HAL of other applications benefiting India which are deeply engaged continues its growth with a sales the common man. Using in developing critical defence turnover of $2.1 Billion during INSATs, besides TV broadcasting, technologies covering various the financial year 2007-08. It has telecommunications and meteorological disciplines like aeronautics, doubled its turnover in 3 years. It applications societal applications armaments, electronics, combat has declared profit before tax of such as tele-education, telemedicine vehicles, engineering system, $538 Million. The company has applications have been instrumentation, missiles, advanced made supplies to almost all the operationalised. Village Resource computing and simulation, special major aerospace companies in the Centers (VRCs) combining the materials, naval systems, life World like Airbus, Boeing, IAI, services of IRS and INSAT sciences, information systems and IRKUT, Honeywell and Ruag etc. satellites for providing an array agriculture. Presently over 5000 of services have been established. scientists and about 25000 other HAL is a major partner for the India today is considered as a scientific technical and supporting Space programmes of Indian leader in the application of space personnel back the organization. Space Research Organization technology. INSAT and IRS Several major projects for (ISRO) and manufactures satellites are also providing the development of missiles, structures and assemblies for the invaluable services in disaster armaments, light combat aircrafts, launch vehicles and satellites at its management. To put the IRS radars, electronic warfare systems dedicated Aerospace Division in and INSAT satellites into orbit, etc are on hand and significant Bangalore. India has developed two horse achievements have already been work launch vehicles namely the made in several such technologies. Polar Satellite Launch Vehicle

42 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story Bharat Electronics Ltd. growth in civilian demand and market holds a plethora of (B.E.L.) military requirements. opportunities for players in the Bharat Electronics Limited (BEL) technical services outsourcing was established in 1954 to meet One essential effort is to decide business. Further, globalization the specialized electronic needs of on core competencies and narrow of MRO services, availability the country’s defence services, is a down on building capabilities of talent, manpower cost multi-product, multi-technology, in the country. The Indian competitiveness etc. will make multi-unit company. It serves manufacturing sector is India a potential global as well as the needs of domestic and internationally competitive with regional MRO hub. foreign customers with the international quality standards, products/services manufactured efficiency and manufacturing Civil Aviation in its nine state-of-the-art ISO facilities.With a long established The UDAN program announced 9001/2 and ISO 14000 certified IT base, our country has been by the Civil Aviation Ministry manufacturing plants in India. able to integrate the technological envisages the setting up about 100 BEL manufactures a wide needs of the aerospace sector new airports besides the greenfield repertoire of products in the field with ease. A result of this aerodromes in the country which of Radars, Naval systems, Defence manifests in India being the need upgrading. This obviously Communication, Telecommunication popular destination for not only portends well not only for the and Broadcasting, Electronic the manufacture of components connectivity which will increase, Warfare, Opto Electronics, but also providing Maintenance, but also for the employment Tank Electronics and Electronic Repair and Overhaul (M.R.O.) for opportunities this will bring. Components. With the expertise both the civil and defense sectors. developed over the years, the The government’s open sky company also provides turnkey policy has attracted many systems solutions and Electronic Maintenance, Repair and overseas players to enter the Manufacturing Services (EMS) Overhaul (M.R.O.) market and the industry is on “Build to Print” and “Build to The rapid growth of civil aviation growing in terms of both players Spec” basis. has put extreme pressure and the number of aircraft. on the existing civil aviation Government Policy infrastructure. As a result, the Mr. Jayant Sinha, Minister of State Our current government has thrust is now on modernization of for Civil Aviation, has stated that ushered in important policy airports, communications, navigation the government plans to double reforms in the last three years. and surveillance systems for air the number of airports in India The biggest encouraging inputs traffic management, radars and over the next two to three years are the new Defense Procurement MRO facilities for Maintenance to cater to the increased passenger Procedure (DPP 2016) and the Repair and Overhaul of aircraft traffic due to the developing National Civil Aviation Policy and sub systems. regional air travel market. (NCAP2016) which show the intentions of the government in Aircraft maintenance, repair The Ministry of Civil Aviation continuing on a productive path. and overhaul is developing along with Airports Authority tremendously in the country. of India (AAI) plans to develop What is fueling the growth of Driven by an increasing fleet small airports with frugal facilities, manufacturing in this sector is of newly acquired aircrafts, and encourage private airlines to a robust industrial base. Low shortage of trained and bid for routes connecting these cost of manufacture, professional experienced professionals and a small airports with existing larger manpower, liberated government need to cut aircraft maintenance airports, thereby increasing policies coupled with an accelerated and operational costs, the MRO regional air traffic.

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 43 Cover Story India : Aerospace & Defence forecast by 2020 Mr. Kependra Bhairam Author is Head – Structural Analysis (Aerospace & Defence) in Aero Euro Engineering India Pvt Ltd Mr. Kependra Bhairam [email protected]

India is the ninth largest aviation million passengers and 2.28 expected to lead to technological market in the world with a size million tonnes cargo in 2013-14. advancements in the sector, of around US$ 16 billion and is As per estimates, passenger resulting in increased opportunities poised to be the 3rd biggest by traffic at Indian Airports is for the entry of foreign players. 2020. The Indian aviation industry expected to increase to 450 promises a huge growth potential million by 2020 from 159.3 On the defense side of aerospace, due to a large and growing million in 2012-2013. the revised Defence Procurement middle class population, rapid Procedure (DPP) outline economic growth, higher The Indian government started key changes which provides disposable incomes, rising the “Make in India” campaign. establishment of public private aspirations of the middle class, Due to this campaign, there is partnerships as well as qualification and overall low penetration levels. now an estimated offset obligation of MRO (Maintenance, Repair and of around $50 billon. This has led Overhaul) under offset guidelines Civil aviation industry in India is to some interesting developments which will further the setup of experiencing a new era of expansion in India in the Aerospace area MRO capabilities in the country. driven by factors such as low cost in the past year in the form of carriers, modern aiports and joint ventures between very large Defense MRO was largely foreign direct investments in corporations. dominated by the vertically domestic airlines, cutting integrated HAL (Hindustan edge information technology The Indian defense sector saw a Aeronautics Limited). With an interventions, and growing lot of activity in 2016 with India’s estimated spend of USD 20 emphasis on regional connectivity. defense budget of US$50.7 billion billion on military aircraft by for 2016 becoming the fourth India over the coming years India Civil aviation sector has been largest global defense budget, will see significant capability being growing steadily registering a moving up from the sixth position developed in the country to growth of 13.8% during the last in 2015. support MRO activity for 10 years. The air transport sector these aircraft by private-public in India has attracted FDI of over By 2018, India’s defense budget is partnerships. The Indian US$ 569 million from April 2000 projected to increase to US$56.5 government’s regulatory focus to February 2015. billion as the country recapitalizes for the sector is on self-reliance, and strengthens its military to import substitution, and Recently a domestic carrier, counter potential threats from indigenization in India. As a Indigo, signed an order for 250 China and Pakistan, while result, the government A320 Neo, Airbus’ largest order upgrading existing assets. enforces foreign investment and by number. The Indian airports technology platforms for increasing have a combined capacity to Further, the government’s manufacturing operations in India, cater to 220.04 million passengers emphasis on timely execution and rather than importing defense and 4.63 million tonnes cargo improved policy, in consultation equipment. per annum and handled 168.92 with industry participants, is

44 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story India signed 15 contracts worth Earlier, there was a condition Boeing and Tata Advanced US$10.5 billion with foreign to bring in “state-of-the-art Systems announced a joint venture vendors in 2016 (up to October technology” for foreign companies that will manufacture structures 2016) including contracts for in order to hold greater than 49.0 aero for aircraft and collaborate on 36 Rafale fighter jets and 145 percent stake in local ventures. integrated systems development M777 lightweight Howitzers, and However, the government opportunities in India. Mahindra multiple projects have been modified this condition to “modern Defence and Airbus Helicopters fast-tracked. technology or any other reason formed a joint venture to produce that may be recorded”, relaxing military helicopters in India. For instance, the first of six the entry barriers to open up Companies like Fokker and Scorpene diesel-electric attack the sector to greater foreign Airborne have entered into joint submarines was undocked in participation and making it more ventures with Indian companies December 2015 and are attractive for global defense in order to scale up local undergoing sea trials. Similarly, companies to enter and operate in manufacturing capabilities. the first squadron of the India. indigenously produced LCA Tejas Major A&D companies such as, was inducted into the Indian Air In consultation with industry Airbus, Boeing, Lockheed Martin, Force in July 2016. stakeholders, the Ministry of and Safran already have a footprint Defence released a new defence in the Indian market, with The Indian government has also procurement policy in March some of them planning further taken multiple policy initiatives 2016 to bring clarity to the investments. For instance, Airbus including increased international procurement process. This announced a joint-venture with engagement, a revamped FDI includes an amended offset policy Mahindra Defense Systems last policy, and a new defense which addressed key industry year to manufacture helicopters procurement procedure with key concerns such as inclusion of for the Indian military. Similarly, amendments in offset regulations. services as a method of discharging Boeing entered into a joint-venture In the last 2 years, India has signed offsets and updating Indian with Tata Advanced Systems in defense cooperation agreements Offset Partner to enable complete December 2015, wherein, they and MoUs with over 20 countries, discharge of obligations. will manufacture fuselages of entered the Missile Technology Apache Helicopters in India. To benefit from the stronger Control regime, and strengthened long-term growth prospects As the sector opens up further, bilateral relationships with major from prior levels, global defense there will be an increase in global suppliers. companies have increased their defense companies entering the For instance, India signed a investments into India. There Indian market. In the commercial military logistics agreement have been various joint-venture aerospace sub-sector, India has with the United States and was announcements in the sector the highest traffic RPK growth recognized as a ‘major defense during 2015 to 2016, prior regional globally, at 8.6 percent in 2015 and partner,’ which will enable outlook to the relaxation of FDI it is expected to be the third largest license-free access to a wide range norms. Post the relaxation of FDI aviation market by 2026. The of dual-use technologies. regulation, the Indian defense country is forecast to have a sector is likely to record an increase demand for 1,850 new commercial The Indian government eased in alliances and partnerships, as aircraft in the next two decades, the foreign direct investment (FDI) well as a rise in foreign companies majority being single-aisle planes. norms for the defense sector in setting up manufacturing facilities These are expected to support the June 2016, permitting foreign in India. growth of low-cost carriers that companies to own 100 percent represent more than 60.0 percent of domestic ventures with the of the total flights in India. approval of the government. Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 45 Cover Story UDAN (Ude Deshka Aam Nagarik) Ministry Of Central Aviation, Government Of India

Under the Regional Connectivity Scheme, airlines can maintain a cap of maximum fare of Rs. 2,500 per hour of flight for the 50 % of the seats and rest of the seats will be priced at market rate.

Value Gap Funding avails regional connectivity financially viable. Lower operational cost could be the way to remain financially

UDAN Scheme comes under National Civil Aviation Policy (NCAP) which was released by the Ministry Of Civil Aviation (India) on June 15,2016. This scheme will be jointly funded by the Central government and State government. India has 400 + unserved and underserved airports. Government of India aims to operationalise a cumulative total of 100 regional airports by the end of 2018-2019. Prime Minister Mr. Narendra Modi launched this scheme on 27th May 2017by flagging off the inaugural regional flights between Delhi and Shimla &Kadapa and Nanded.

46 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story viable. States and Union territories will sign Memorandum Of Understanding with Central government to share the 20 % and 10 % burden of value gap funding respectively. Other concessions are also given to RCS to make it financially viable. Arrangements for the commercial airlines, reduced excise duty on the fuel, AAI owned airports will be charge free for landing & parking facilities as well as terminal navigation landing charges. State governments will have to lower the VAT on Atomatic Transmission Fluid (ATF).Airlines will receive Value Gap Funding (VGF) through Regional Connectivity Fund (RCF) levy. Starting from 2017, VGF and RCF levy will remain for next 10 years and will be revised quarterly with respected to Consumer Price Index for Industrial Workers.

The Scheme : • Under UDAN scheme, government aims to stimulate regional connectivity upto . 800 kms • Commitments made by the states to make sufficient land available, adequate security, to provide essential services from airports and airstrips. • Flights will be operated Vidyanagar, Burnpur, Kullu, between Hyderabad-Kadapa, Key Facts : Diu, Mysore, Shillong, Jagdalpur, Hyderabad – Nanded, Chennai • Air India Subsidiary Alliance Salem, Utkela and Hosur will be -Mysuru, Chennai- Salem, Air , Spice Jet, regional airlines in operation. Mumbai -Porbunder, Kolkata such as Turbo Megha Airways, • These airports will be connected -Aizwal, Pune-Nashik, Delhi and Air to the larger airports such as -Dehradun and Ranchi-Raipur. Aviation will operate on these Delhi, Chennai, Bhubaneshwar, • Selected Airline operator routes. Bengaluru, Ahmedabad, Mumbai, have to provide minimum of • Some of the inactive airports Jaipur and many more. 9 and maximum of 40 UDAN for ex Shimla, Bikaner, Agra, seats (Subsidized rates) Rourkela, Kadapa, Jharsuguda,

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 47 Cover Story Status of Small Airfields in India MEDC Research Team

Brief about Small Airfields on the development of the four Fund (RCF) which will provide In the 1930’s, Indian youth started international airports located at direct subsidy to airlines in a way to take initiatives in the field of Delhi, Mumbai,Chennai, Kolkata. of reverse bidding. Monetization professional aviation professionally After the formation of AAI of airport’s non-aeronautical and they established Royal Indian in 1994, civil aviation became assets and land near to the airport Air Force in 1932. Due to World popular as a mode of Transport/ can generate cash flows for Wars, many airfields came into Travel, especially because of the infrastructure development. existence. It expanded in the GOI’s Open Sky Policy. With Northern, North - East and increasing number of air traffic Military Based Airports: Eastern part of the country. Most as well as modernization and • Shibpur Airport is located at of the airfields were built for upgradation in the aviation sector, the Northern Andaman purpose of the military aviation. AAI has also embarked on the Island.It is a naval based air After Independence, all of the technological development where station. Only specialized airfields come under the Central ground based to satellite based helicopters and Dornier aviation department, which communication, navigationand aircraft are allowed to land on ultimately became known as surveillance systems (GAGAN) this airport for surveillance. Directorate General of Central process is under construction. Aviation and the airfields were • Along Airport in Arunachal known as aerodromes. Public Private Partnership in Pradesh is mainly suitable for Indian airports has increased the operations of small aircraft Description of the Runways revenues, generated employment and operated for IAF in large scale, and contributed to Small airports include (245 * 8) in Helicopters.Indian Air Force the economy through tourism, Meters and (804 * 26) feet long. is the owner of this airport. hospitality, manufacturing, and Large airports include (5500 * 80) Small fixed wing aircraft like global trade. There is a challenge in meters and (18,045 * 262) in Dornier 28 and Cessna can to develop small airports through feet. Very large airports (11,917 * take off and land. 2 MI17 PPP model. This is essential for 274) in meters and (39, 098 * 899) Helicopters and Dornier/ the private sector to develop in feet. Cessna can be parked at a their assets. There are challenges time. supporting the development of Growth Of Aviation in the low – cost airports regarding and • serves as country Daman Airport supporting airlines to operate the home to the Indian Coast Civil aviation department inherited regular services to these airports Guard Air Station and also war torn airports. DGCA continued on a sustainable basis. Lack of used by Indian Military as its authority till 1970’s, later policy support, high fixed cost well. Daman has its own Air handed over to the Airport of operations, multitude of taxes, traffic control building as Authority Of India (AAI). These and low demand have created well as parking facilities for airports have small terminal difficulties for regional defense and civilian aircrafts. buildings, flying control towers, connectivities. The National There are two runways and runways fit for small/ Civil Aviation Policy (NCAP 2016) available on Daman airport. medium size aircrafts. The has been drafted. It was proposed It is an Indian Coast Guard airports were in very bad shape. to create aRegional Connectivity Station, which operates The Pre - AAI period was focused

48 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story A Statewise list of the small airports is given below: aircraft are light weight in nature and can handle minimum ANDAMAN & NICOBAR passengers. Hence, they don’t ISLANDS require too much space to fly. 1) Shibpur Airstrip 12) Deoghar Airstrip Also, these aircraft are strategically ANDHRA PRADESH MADHYA PRADESH impressive near the borders of 2) Cudappah Airport 13) Amla Airport the country. These aircraft are 3) Nadirgul Runway 14) Bentayan Airport technologically updated to be 15) Dhana Airport fought with any kind of situation 16) Guna Airport (War, Civil Evacuation). According 17) Satna Airport to that, airports have to be ODISHA updated with the given 4) Along Aiport 18) Gopalpur Airport technology used in the aircrafts. 19) Barbil Airport Defense services (Military, Navy, 20) Nawapara Airport Air Forces) have maintained the 21) Padampur Airport airport facilities and also provided 22) Rairangpur Airport some technological advancements 23) Rangeilunda Airport to the airports. With these 24) Utkela Airport advancements, changes in BIHAR RAJSTHAN additional air traffic security, 5) Bhagalpur Airport 25) Sirohi Airport smooth functioning of air traffic 6) Kishanganj Airport corridor, optimization of the DAMAN AND DIU (UT) TAMIL NADU restricted air space etc are also 7) Daman Airport 26) Vellore Airport desirable. 8) GUJRAT AAI Based Airports 9) Dessa Airport 27) Kailashahar Airport • Cudappah Airport is located in Andhra Pradesh. Earlier, 10) Airport 28) Kanpur Civil Airport some commercial flights 29) Kalyanpur Airport started from Hyderabad and HIMACHAL PRADESH Bengaluru to Cudappah but 11) KulluManali Airport 30) Behala Airport closed down soon due to the 31) Airport poor passenger response. 32) Malda Airport Cudappah Airport was selected under UDAN (Ude Dornier aircrafts and Chetak airports, later it was handed over Deshka Aam Nagrik) scheme helicopters. This airport is well to the Military. Hence, revenues to increase inter - regional equipped with radar instruments. from the aeronautical charges are connectivity with the distributed among them. respective Capitals of the According to a policy between states. Recently, Cudappah departments of the civil aviation Military owned airports are also airport was upgraded with a and defense department, some important for making strategies new runway. Passenger airports have been given to the with external affairs of the facilities have also improved Indian military to finance the country. Some airports mentioned due to increase in expenses. airport infrastructure. Initially above, are only allowed to fly AAI has invested major capital Dornier 28, Cessna, MI 17 • Diu Airport is situated in in the development of these aircrafts. Those special kind of state. Diu airport

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 49 Cover Story also serves Veraval and No commercial schedule used for paragliding and sky Jafrabad which are nearby operates from the airport. diving programs. cities in Gujarat. It is well It is administered by Regional connected with other cities Executive Director, Eastern • Vellore Airport is located in such as Bangalore, Mumbai, Region. 2 Dornier 228 can be the city of Vellore, northern Delhi, Hyderabad, Chennai. parked. side of Tamil Nadu. Initially, Jet Airways, Jet Konnect, Air the airport was given on lease India operate flights from • Kullu Manali Airport is to the local flying club to here. Diu airport is mainly located on the banks of the train their pilots. The airport used for domestic purpose. river Beas. Air India provides is suitable for the flying clubs its services to the Kullu as well as general aviation. • Satna Airport, located at Manali region from Delhi Satna city having connections and . Location of AAI is a miniratna – Category 1 with other cities by different the airport is scenic and Public Sector Enterprise which means of communication. beautiful in nature. manages more than 100 airports It is a regional airport, and in the country. It had a joint includes scheduled airline • Dessa Airport is under the venture to upgrade the service from different parts control of Air Port Director metropolitan airports. Airports of the country. – Ahmedabad. No regular with AAI are in good condition operations are held on this and other facilities are also • Kailashahar Airport is runway, as parachuting and available. AAI has also situated in the state of skydiving activities were implemented several advancements Tripura. It is not suitable conducted in the past. in connection with technology. for operations. It is Indian military is interested It has provided Air Traffic administered by the Airport in developingdessa airport to Management services (ATMS), Director of Agartala airport / its full potential due to its Automatic Dependance Regional Executive Director, strategic location as it is Surveillance System (ADSS), North Eastern Region. nearer to the Pakistani GAGAN with ISRO to different international border. Currently, airports and is planning to provide • Behala Airport in West Bengal the situation of this airstrip is Ground Based Augmentation is suitable for general aviation deteriorating and it is only System (GBAS) to Delhi and and flying club. No commercial schedule operates from the airport. It is administered by the Regional Executive Director, Eastern Region.

• Kanpur Civil Airport Operations are not scheduled. Two aircrafts can be parked.

• It is operated domestically (weekly 4 days). It is flexible and operational in nature.

• Malda Airport is not suitable for commercial operation.

50 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story

Mumbai airports. AAI has also • Kishanganj Airport is owned can be parked in the parking established four training colleges, by the Government Of Bihar bay area. Some facilities such Civil Aviation Training College (Civil Aviation Department) as boundary wall, water (CATC)National Institute of Helicopters of state supply, and approach to the Aviation Management and government operates this airport through road are Research (NIAMR) and Fire airport. Other facilities are available. Training Center (FTC). not available on this airport. • Padampur Airport airport is AAI manages most of the • is operated owned by the Odisha state airports in the country. They have by the Civil aviation government. The airport is appointed Air Port Director to department, Haryana suitable for small aircraft each region for administration. government. It is mainly used operations like B – 200. As Maintenance of the airports is by the Karnal aviation club the airport is owned by the well handled by the AAI. They for general pilot training. As state government, only state have developed these airports the airstrip is mainly used for government aircrafts and through joint ventures. This the training purpose, the helicopters are allowed to use has enabled advancements in Training Simulator facility is the airstrip, which is flexible technology and maintenance available at the airport. in nature and also exhibits of the airports. Other fa- good condition. Boundary cilities such as parking, fire • Deoghar Airstrip Jharkhand wall and the approach road brigade, securitywall, controltower, Government and AAI, are also available. approach road to the airport, DRDO have signed condition of the runway etc are in Memorandum Of Understanding • Rairangpur Airport is owned a good condition. between them for the by the state government development of the airport and located near the Jagannath AAI is expanding its business with to a modern, world class temple. Runway needs to be the Government as well as private airport.It is expected that extended to cater to small sector. They have developed most tribal regions aircraft. State government techniques with the help of surrounding Deoghar city and private small aircraft ISRO to install satellite for will also be enhanced due to operate from the airport. navigation. Airports maintained air travel and cargo facility. Although the condition of by AAI are selected for the UDAN the runway is satisfactory, the (Ude Desh Ka Aam Nagrik) Yojana • Gopalpur Airport owned rest of the essential which is an ambitious project by the Odisha government. equipments are not available. of the Central government for All necessary facilities are not regional connectivity. available on this airport. • Utkela Airport is owned by the Odisha state government Government Owned • Nawapara Airport airport is and suitable for operation of Airports: owned by the state small aircraft. As a state government of Odisha owned airport, only state • Bhagalpur Airport owned by the Government of Bihar Airport is suitable for VFR government flights operate and administered by the operations of light aircraft B from this airport, which is central aviation department 200 etc. Only state flexible and in good condition. of the Government of Bihar. government and private 2 Small aircraft can be parked. Only one terminal building is flights operate from this Terminal Building area and available. Rest of the essential airport. The runway is in fire station is also installed and necessary equipments are good condition. One small at the airport. Essential not available on this airport. aircraft and one helicopter equipments including water Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 51 Cover Story supply, electricity supply, Most of the small airfields are ny (Chimes Aviation Academy) boundary wall, and the used for the operations of the on a lease.Operations held on approach road to the airport state owned helicopters and Dhana airport are mainly are available at the airport. aircrafts. State government owned training flights, state airfields are used for different government, aircraft, and • Rangeilunda Airport is purposes. Facilities provided to helicopters. Runway is flexible owned by the Odisha state the airports are mismanaged, and no displacement found government and located in assets of the airports are handled on the runway. Facilities such the city of Behrampur. The improperly. Odisha government as Control tower, fire station, airport is suitable for the has tried to maintain the quality boundary wall, electric supply, small aircraft operations. 2 of their airports but maintainance water supply are available at small aircrafts can be parked by other governments needs the airport. at the airport. All the essential improvement. equipments are available at • Guna Airport is owned by the airport. However, to maintain small the Madhya Pradesh State airports or airfields, state government and leased to the • Sirohi Airport is owned by governments requires huge Sha- Shib flying academy. The the Public Works Department, amount of money and if it is not airport is suitable for the State government of profitable for government, then it operations and mainly used . The airport is will be neglected. Here, the role for training flights andin a suitable for the operations of Central Aviation department’s good condition. It is a regional of small aircrafts. State decisions is essential. If it is airport where no scheduled government and private supportive for the help of the airline provides its service. aircrafts operate from this government then we can change airport which is flexible and the situation, otherwise it may • Barbil Airport owned by the good in condition. Essential deteriorate. Jindal Steel Power Ltd. equipments including water located in the state of Odisha. supply, fire station, electric Private Airports The airport is suitable for supply are available at the • Nadirgul Runway is based the operations of B 200 airport. in the city of Hyderabad. beach aircraft / helicopter. The Runway was used for State aircraft and helicopters The situation of the government pilot training purpose operate from this airport. owned airports varies from state previously. However, after Rest of the essential to state. Maintenance and security opening of Rajiv Gandhi equipments including parking of these airports are in bad International Airport, all bays, control tower, fire condition. The budget allocated training practices of this brigade, boundary wall, for aviation sector also depends airport shifted to the electric supply, water supply, upon the output made by this . Runways and approach to the road are sector. Industrially developed available on Nadirgul airport available at the airport. states have invested more in the are not in use for commercial airports. On the other hand, flights and used for emergency • Kalyanpur Airport owned tribal, less developed states haven’t landing for new trainees. by IIT – Kanpur (Kalyanpur) invested more in their airports. and located near river Ganga. Southern states have invested • Dhana Airport is situated Although Operations are not more compared to the northern Madhya Pradesh. Although, scheduled for this airport, it is states for better regional state owns the airport, it has in good condition. Parking, connectivity. given it to a private compa control tower, boundary wall, water supply and approach

52 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Cover Story road to the airport are country. Most of the airstrips Bibliography available.Terminal building are not fit for commercial 1) Jharkhand inks MOU for area, fire station and electric flights as runways are too - Hindustan supply are unavailable. small to carry out their Times. operations. Some airports Private airports can be are given on lease to the 2) State wise list of Airfields in distinguished as model airports private flying clubs which are India - Aviation magic. for unused airports. State in good condition. government chose to earn revenue 3) Details OfUnserved Airports through this method. Madhya • Aviation industry is based – Airstrips, Airport Authority of Pradesh government gave their on surrounding hinterland India. airports on lease to the private economy (which means flying clubs. These flying clubs connecting remote areas of 4) Indian Aviation report, 2016 help the state government to the country). In India, we – 5th International Exhibition maintain the condition of the are lagging behind on this & Conference on Civil Aviation, airports. issue. We are not connected India Aviation 2016, Hyderabad with our remote areas organised by Ministry of Civil Generally, Private flying clubs use through aviation. Hence, Its Aviation, GOI and FICCI. these airfields for the purpose is affecting our tourism of training to the new learners. industry as well as we fail to They have to to maintain certain cope up with other necessary qualities to remain updated while requirements (eg. Visa, competing with other private Immigration, customs, imports, clubs in their own field. Hence, exportsetc) This places they take care of the airports as certain limitations on us too. well. • Lethargy in policy making for This is a good initiative by the the aviation sector costs us a state governments to develop lot. We lost our opportunity the airports through lease option. to become a leader in this Here, ownership with government field to the ASEAN and remains as it is and usefulness of GULF countries although we the airfields also increases. Other have enough potential within facilities such as fire brigade, ourself. Delays in decision security operations and equipments, making, late realization about water supply, electricity supply to privatization, negligence about airports remain in use. aerospace industryetc have a large negative impact on the Key Action Steps : Indian Aviation Sector. • Airfields maintained by Airports Authority of India • Fuel Charges in India are (AAI) are in good condition, costlier compared to the but other essential equipments international airports. We are are unavailable. The situation losing business in this section of the airstrips varies from as well. International flag the northern part of India to carriers tank up in their home the southern part of the locations only. Besides , taxes on MRO cost us a lot.

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 53 Global Trend Global Trade and Investment Trends Dr. Prakash Hebalkar Dr. Hebalkar is a Public Policy consultant and President of ProfiTech, a strategic consultancy [email protected] Dr. Prakash Hebalkar

This column focuses on trends in One of the very active area of to banks(online lending, peer- global trade and investments in software disruption is that of to-peer lending, Artificial the past month. the financial services industry or Intelligence and data mining based FINTECH. Startups hope to do borrower selection for lending,

54 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Global Trend etc.) and capital markets(startup series predecessor delivered espresso machines, snacks, funding based on crowd-sourcing, from its factory and and kids activities, to keep online public offerings,…) what production being ramped up customers happy while their car is fixed at home, work, or on the Amazon has done or is doing to rapidly, service becomes a critical side of the road. retail companies. The following factor to success. chart shows the various areas in Finally, the pathetic tardiness which this disruption is being Today, the company operates just over 150 service centers of Indian policymakers in attempted and the level of exploiting the global labour- activity in each. How many Indian around the world. It’s adding 100 more, with greater capacity intensive industry, which has companies seen? -up to 40 repair lanes in some made China rich, I going to Source : CB Insights cases-and 1,400 new technicians come and bite us in terms of job to crew them. Electric cars are shortages for the growing youth Elon Musk’s company, The less complex than those with Boring Company, will build a internal combustion engines, population entering the job hyperloop tube from New York to with fewer moving parts and market in the coming decades. Washington D.C. For a 29 minute no need for messy tasks like Here is what is happening travel between the endpoint cities. oil changes, which should limit to even white collar jobs, apart the need for car lifts. Tesla says from robotic automation of altogether, it will be able to manufacturing jobs : Tesla, already a leader in service cars four times faster disruption of the automobile than the standard repair shop, and space launch industry is using three times less space. revolutionizing automobile service too. With the $30,000 More cleverly, the company is also adding 350 mobile service version2 of its successful S vans to its fleet, equipped with

Source: CB Insights It will not stop there, as this chart shows : Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 55 Global Trend

2The Tesla Model 3 (originally stylized as “☰”) is a mid-size all-electric four-door luxury sedan manufactured and marketed by Tesla, Inc.[1] Unveiled on March 31, 2016, the Model 3 was expected by Tesla officials to deliver an all-electric range of over 215 miles (346 km).[2] The Model 3 is one of the first cars to have a barren dashboard, with the exception of a center mounted LCD touchscreen. Limited production of the Model 3 began in July 2017, with the first production vehicle rolling off the assembly line on July 7, 2017,[5][6][7] and the official launch and delivery of the first 30 cars on July 28.[8] Tesla CEO Elon Musk expects production to reach 20,000 vehicles per month by December 2017,[9] or approximately 60 percent of the design capacity of the manufacturing line.[10]

56 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Empowering Maharashtra Article on Banking and Finance Mr. V. T. PAI Ex- Director, MEDC India’s Economic growth to including liberation of FDI rules 3,219 as compared to estimate accelerate to 7.5% thisfiscal on in number of key sector such as for the year 2015-2016 of Rs todays. India economic growth defence, railways, infrastructure, 94,130 showing rise of 9.7%. will accelerate to 7.5% in the civil aviation and insurance. (The data is from past of provisional current year and the government Besides direct benefit, transfer estimates of GDP 2016-2017 reforms will help to achieve 8% scheme for food, fertilizer and released by Ministry of Statistics and GDP growth rate in about 4 years. kerosene. During July 2011 out Program Implementation.) Moody investor service says, UP of goods and services tax and state election indicates that the National bankruptcy code are Per capita income is crude government has continued to among other reforms undertaken indication of prosperity of a remain politically stable despite by the current government country in real term (at 2011- demonetization exercise. together. These will help to reduce 12 prices) per capita income in in efficiency and improve growth 2016-17 rose 5.7% to Rs. 82,269 We expect marginally faster trend in the long. against Rs.77803 a year ago. The growth in India. According to rate of growth in real term was our forecast Indian economy will The inflation role steadily decline however slower than 6.08% in the grow 7.5%in fiscal 2017-2018, to 3% as of April 2017 due preceding year. Indian economy grew 7.1% in to weaker food inflation,“it is fiscal 2016-2017. believed that the inflation rate The country’s Gross National will rise to around 5%by the end Income (GNI) at 2011-12, price Moody however caution that of 2017 once the effect of this was estimated at Rs. 120.38 lakh persistence banking sector weakens temporary factor fades away”. crore during 2016-17 against from a high proportion at Rs. 112.40 lakh crore a year ago. delinquent loans of banks balance Moody’ expect that RBI to hold In terms of growth rate the gross sheet will weighon growth if the repo rate steady holding national income is estimated to not resolved by constraint credit neutral stance in this growth have rise by 7% during 2016-17 on investment activity. Overall environment, private sector in comparisonto growth rate of growth we continue to believe investment remains weak despite 7.8% in 2015-2016. that economic gradually accelerate progress on reforms suggesting to around 8% over the next 3 that some hurdles in investment Consumer Price index(CPI) to years. Moody’s said adding that remains binding in many cases. rise above RBI’s midterm target negative impact of demonetization of 4%, as perUBS. on the economy is limited in size India’s per capita income rises to and duration. 9.7% to Rs 1.03 lakh in financial Consumer price inflation is likely year 2017 (as on) to Rs 1,03,219 in to rise above RBI’s medium term The World Bank has earlier, this 2016-2017 from Rs. 94,103 a year target of 4% in 2017-2018 (as week in June 2017 projected India ago in 2015- 2016 (as on). The on) due to factor like hike in the to clock a 7.2% growth rate in the growth rate of the country per rural wages and transientimpact current fiscal on reform Monetary capita income was at 7.4%. of goods and services tax. and improved investment scenario. The government has The per capita income at current The uptick in under lying price been successful in pursuing price during 2016-2017 estimated pressure could push the RBI to throughseveral key reforms to have attained level to Rs hike rates this fiscal, said UBS

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 57 Empowering Maharashtra

report. The global brokers has fiscal is likely to be recorded minimum support price (MSPs) estimated average consumer price. around 3% to 3.5%, while for agriculture crops and Inflation is excluding the house headline inflation remains moments in global commodity rent allowance is expected to be at contained compared with previous prices and increasing input cost. 4.2% to 4.5% for 2017-2018 and high. We believe upside risks to 2018-2019 respectively. CPI inflation clearly persist. Gradual closing of output gap in HRA increase under 7th pay Further UBS has estimated The report has attributed the commission the transit impact Consumer Price Index inflation possible rise inflation to eight of GST implementation and in second half of 2017-2018 factors including consumption, expansionary fiscal policy are to average 5 to 5.5% while the demand on remonetisation, a other factors to adversely impact inflation in the first half ofthe rise in rural wages and increase in inflation.

58 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Empowering Maharashtra Synthesis of time and cost over runs in civil engineering projects

Mr. P. M. Deshpande Retd CE & GM (Tech) CIDCO of Maharashtra [email protected] Mr. P. M. Deshpande

The time over-run and cost any alternative and hence cost and to be logical to stand scrutiny of over-run have become a character time over-runs in execution of account professional. Such of civil engineering projects. The projects are here to stay. estimates are then sacrosanct for character is applicable for all further decission making. The Government and Private sector Cost over-runs are excess of process results in giving rise to a projects equally. It is said that completion costs over estimated number of problems requiring Private Sector is more efficient costs. If estimates are wrong, decisions which are slower in in decision making than the then there is every possibility that Government Organisations. In Government sector. Inspite of the completion cost will exceed private sector the decision maker the difference in decision making, the estimated cost. So it can be gets stuck in a web of faster both are experiencing equal said that the process of cost decisions which results in further time and cost over-runs. Slower estimation of a project adopted over-runs. decision making in Government can be wrong. It is said that and faster decision making in incorrect estimation is due to Estimation of cost is a critical part Private sector seems to be various uncertainties associated of a project, on which its financial responsible for time and cost with a project. The uncerainty viability is decided. But our status of the projects. If we peep in estimates begets uncertainty estimation process starts from into past projects, we will find in tendering. The combined junior most engineer. He uses that there was hardly any cost and uncertainties make thing difficult schedule of rate prepared, again time over-runs. One reason always for Government due to slower by a junor engineer. The engineer given is of inflation in costs. It decision making and to private who is estimating the cost is is said that variation in inflation sector due to faster decision required to take items available in causes cost over-run which then making. The basis of estimation the schedule because then during influence the Project completion of cost remains same as the accounts scrutiny no querries are time. Other reason given is one British had stipulated in raised. Once accountant certifies uncertainty connected with civil their Works Manuals about two the estimates then it climbs engineering projects. It is said that hundred years back despite ladders of multiple bosses and there is uncertainty about subsoil enormous change in environment ultimately are approved without conditions, uncertainty about under which projects are being much involvement of seniors. designs, uncertainty about executed. The modern Thus the estimates are prepared availability of labour, materials, developments in construction not to execute projects but to get equipment etc. and it is impossible methods, materials and the approval for the project. The to surmount the uncertainties. In equipmentsare adhocly accounted. result is the quantities exceed, and Government projects the blame Generally the estimation work rates are not suitable for the work is squarely put on method of is entrusted to Junior Engineers to be executed. Then decisions are tendering and process of awarding who are generally ill prepared to required to alter items of work. work to lowest tenderer. It is said account for the Modern Methods. The decisions are delayed because that it is almost impossible to find The estimates are also required of fear of audit querries. This is

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 59 Empowering Maharashtra

Government working. In private involved. The project should The next step will be to prepare the project are conceived at the be designed for operational caricature of the structure along top with instantaneous decisions efficiency keeping in view its end with specifications of materials without any detailing input from use, constructional ease, desired to be used. Then the outline of juniors. The result is cost and life, financial constraints, construction is planned. In case of time over-runs in both types of completion time constraints, legal each construction methodology projects. constraints and environmental resources required are worked constraints. The risks involved out. The resource deployment The works get green signal after should be identified along with schedule is prepared. The method taking into consideration financial identification of suitable persons/ requiring least wastage of analyses based on inadequate organisations to carry the risk and resources is selected and time technical detailing. The process accordingly break up the work in of completion is worked out. If gives the impression that an suitable packages for tendering is that time is unacceptable then organisation is working for getting made. The risks associated with alternate method is deployed to its own approval to the project each package be then assessed limit construction time. A trial and awarding the work, and in monetary terms. Based on run of construction of unfamiliar contractor is working with an previous experience suitable items are also taken at this point objective to secure the project. alternatives for type of of time. Generally skills are of two Once work is awarded to a construction be shortlisted. types : supervisable i.e. amenable contractor everyone forgets about to testing and second type which the project. It is left in the hands The cost and time estimation are not amenable to testing by of inexperienced juniors. After should start from maintenance instrumentation. The quality in starting the work, design is and operation cost that will have second case is subjective and required to be reviewed, difficulties to be incurred after completion no amount of supervision can in subsoil conditions are revealed, of the project. The maintenance improve it. Such items will require various risk are identified, and cost (Maintenance and repairs highly skilled artisans who will person In charge is changed. Then of building for building project) deliver job without any once again the project is left on which is recurring liability should supervision.The exercise gives its own to get completed. If any be affordable. This involves the outline of construction input serious problem arise, then a structural deficiencies appearing required. committee is set up to recommend immediately after construction for its revival. The deep study and which are appearing as aging Once construction methodology of the project starts when some of buildings occurs. Only is decided, resources deployment difficulty arises and post mortem experienced engineer can tell schedule is prepared. Out of total is required to be done. But at about maintenance implications resources, resources are arranged this stage also somebody is made of the type of structure and type in decending order. Utilisation of a scape-goat and then the the of construction. The contractor 20% resources accounting to 80% project continues on the same of the work is the best person cost of resources are identified. note. to judge for this requirement. The project is grouped so that So it will be appropriate to allot full utilisation of the resources is To change this an underlying this risk to the contractor with achieved by either sequencing or presumption that estimates are environmental and functional working in parallel. This exercise only for getting the work started needs of structure specified will give completion time. This must change. The objective for keeping in view the importance will give optimum time of client and contractor should of the structure. This will define completion with full utilisation be to complete the project and serviceability and durability criteria of resources. The total operationalise it. It will need for design of the structure. cost of the project will be change in mind set of the players cost of materials + cost of

60 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Empowering Maharashtra consumable resources + cost be cowed down. This is one The non-availability of land after of depreciation of machinery+ of critical reason for cost and go ahead signal, is the very first cost of operation of machinery + time over-run. It is necessary to difficulty. After resolution of the cost of overheads and profit. indetify risks, make allocation as problem, the contractor discovers This budgetary estimates can per the risk taking capacity of that he cannot proceed with the be then basis for revieving party and keep ready the work as he cannot approach his commercial decision regarding mitigation plan. This requires site as the other contractor’s work the project and working out involvement of experienced is going on. After approaching the detailed design. The estimates are professionals and managers. site, he discovers that the sub soil then checked with cost of simillar conditions are different than structure constructed in the The dual managerial control provided for in the contract and vicinity. The detailed design exercised now is also a reason for which modifications in design provides opportunity of identifying over-runs. The contract system is required. After passing all the the different services and needs was introduced by the British. The hurdles some materials essential for interaction required for contractor was required to control for doing the work suddenly undrtaking construction and the labour and get the work done as becomes scarce. After resolution skills needed for execution of the per direction of the Engineer. The of all issues the problem of work. Thus it can be seen that Engineer used to be technically inflation in labour and material making estimation of cost, fixing sound for the work which he is cost is raised. These are never of duration for completion required to direct. Now the ending issues ending into of project, its financing is an projects involve more arbitration and court cases. Now interactive process. complications. The engineers also, professionals think that this is most of time, do not have requisite going to happen and for that The tenderer also estimates the experience and skill to direct the provisions are made. The cost of project to him in the work. When such engineer directs projects now require more legal similar way. Before tendering it is the work and defects arise, both inputs than technical ones. This necessary to make allocation of the engineer and client start is resulting in further increase various risks. He optimises the cost blaming each other which is in over-runs and deteriorating as per availability of resources. beginning of dispute. So it will be quality. He is required to account for the desirable to keep single control by Inventary carrying cost and the either an experienced engineer or The improvement in the state of payments for the fixed liabilities. to allow the contractor to carry affairs requires developing faith He has to take care of risks. The out the work as per his directions. in the team chsen for undertaking options for compenating risks Thus process control and project and technology. It are Insurance, own funds and functional acceptance/ rejection demands innovative technological the client’s fund. He is required method of supervision can be solution rather than financial or to account for risks covered by used as per expertise available legal solutions to problems arising Insurance and Client. These can with client and contractor. The during execution of projects. It be technological risks and site purpose in doing so is to avoid should be possible to anticipate hazards associated with subsoil meddling of inexperienced various problems before start and weather. If he can anticipate persons with construction and to of projects and anicipate their nature of risks and mitigation avoid throwing away contractor’s solutions. The present method of required, then he can cover the own responsibility of poor executing the projects does not risk mitigation cost in the offer workmanship on the supervisor require any complicated technical he makes. The present trend in and let the contractor to reap the input. The innovation in projects construction industry is to throw benefit of poor quality. is copied from elsewhere. The all risks on the face of client or beauty of projects else where owner depending upon who can convinces us to for adoption of

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 61 Empowering Maharashtra

the technique here. It gives us self Consequently quality aspect is mind to project. It enables us to satisfaction of employing state of forgotten. This is a stage of project focus your attention on the work art technology used elsewhere. in which every team member tries in hand by forgetting everything The satisfaction lasts till we see to throw responsibility on others else. It creates emotional deficiencies on completion of by starting to build up paperwork. attachment with the project which project. The technology is brought This further deteriorates the makes you forget worries about here for technology’s sake rather quality. Most of projects suffer failures, and neglect criticism than requirement of the project. from this drawback. from others. In undertaking any Our professionals are producing research programme there is world class technological research Whatever innovation adopted absence of the emotional outside the country. But within here is imported because our involvement. Our research the country, everyone is afraid of requirement to use well tested programme is for tangible goods. innovation. Here one is afraid of technology. We are having state Thus the purpose of undertaking consequences of failures. of art materials, equipments, research is to get publicity, or to machineries, brought from further business interest. Thus The quality issue connected with outside because someone is the innovation makes the person the projects are equally critical. impressed and thought that it hero for starting work on the The cost & time overruns also will improve our performance innovation/ research project. But affects quality of the project. The efficiency to a large extent. We can in few days the person abandons present quality crisis is attributable spend crores of ruppees on the project saying it is not feasible. to mindset responsible for cost import but hesitate to spend The research programme should and time overrun. The meaning thousands for a little innovation not result in a day dreaming of quality for the project should that comes to our mind. Here programme but it should refresh be first defined. The quality we don’t strive for perfection. In your mind and give you pleasure perspective changes with respect research or innovation also we do of achievement. to person. The quality perspective that for proving that we are also for designer, constructor, financer, doing research. We are happy The hurdles are created to energise administrator and consumer with appreciation and attention it you to keep project moving. If may be widely different. But the receives. We are not worried about one conceives a project and sit on project quality means quality from utility of innovation or research. it day-dreaming about how I will the requirement of end user. So Always our attempt is to prove gain from it, then your project before start of project quality that we are not lagging behind will remain with you. If one start requirement of end user should the advanced countries. We are discussing with others then be ascertained, then ease of not sure whether our research hurdles will be known and then incorporating the quality in can bring us monetary benefits one can think of ways and means execution be ascertained in design. other than concessions offered by to pass the hurdle. Thus if the In most of projects the quality Government. The reason for such project requires land and you do perspective of a person who state of affairs is our conviction not have land then you have to launches a project is upheld which that whatever techniques we are develop partnership with the may not be a perspective of using are ultimate and one cannot person who possesses the land. end user who then criticises the develop better than this technique. The other person will part with quality. The time & cost overruns Unless we develop curiosity about his land provided he shares your make one to forget about the things around us, we are not dream for which he must be everything else because of going to be satisfied. Change is convinced that dream can come to resulting financial crisis. Everyone, Life. reality and will benefit him more at such stage, is after salvaging the than what he is getting by holding project. Change is a characteristic of Life. the land. Our Land acqisition law Change and innovations bind ones framed by British was based on

62 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Empowering Maharashtra fear about Government. Thus had opted for technology to serve the law assumed that the land purpose and imagined operatiopal owner will part with land because simplicity. The Leaders had he wants to be in good books faith in every teammate and the of Government. In the changed teammate had faith in the leader situation the assumption is no that he is not working for his own more valid. So unless we changed glorification. As a result what the presumption to realistic one could be achieved by visionary we will not be able to get the leadership can be seen from the land. The dynamism is product of projects that are successfully experience and logic. So unless exercised and operationalised. there is input from Experienced Such Leadership should be and Knowledgeable person, the available for all the projects – Big project will be stagnated. or Small.

If an organisation expects to achieve a goal, it must create environment so that all persons connected with the organisation can think of marching towards the goal by crossing hurdles on the way. The paths to achieve goal will be different for different persons. The organisation should have strength to create right environment for each one in the team and also for interaction. It should be seen that Dream for completion and operationalisation of the project is created. The creation of dream and that for right environment for getting the work done is the responsibility of a leader. The predominantly technical projects requires Technical Leaders. The technical leader should be capable of judging the best technological needs of the project as also available techology so based on this he can work out financial outlay and mobilise resources. It is demonstrated that such technical leaders can complete projects without time & cost over-runs. These leaders had vision to achieve a goal which everyone thought impossible. The Leader

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 63 Maha Facts & Figures TRANSPORT AND COMMUNICATION 9.37 Transport and communication Urban Local Bodies, Cantonment of ` 4,770 crore was are indispensable as the socio- Boards (CB), Maharashtra State approved and an expenditure of economic development of a Road Development Corporation ` 4,030 crore was incurred. The country depends largely on an (MSRDC), Maharashtra Industrial road length maintained by PWD efficient and adequate system of Development Corporation and ZP is given in Table 9.15. transport and communication. (MIDC), City & Industrial The yearwise road length by type Surface, water and air transport Development Corporation of road in the State is given in are the modes of transport while (CIDCO) and Mumbai Annexure 9.2 and classification of posts, telephones-cellphones Metropolitan Region Development districtwise road length according and internet services are the Authority (MMRDA). to breadth in 2015 & 2016 is given components of the communication in Annexure 9.3. system. Innovation and technical 9.39 Road Development advancement in the field of Plan 2001- transport and communication has 21 is being tremendously benefitted mankind. implemented in the State with a Surface Transport target to develop Road Network 3.37 lakh km roads. The total 9.38 The road network consists road length of national highways, major state maintained by highways, state highways, major PWD and ZP district roads, other district roads, (excluding road village roads and internal city length maintained roads. The road development by other agencies) agencies in the State are Public at the end of March Works Department (PWD) of the 2016 was 3.01 lakh State Government, ZillaParishads km. During 2015-16, an outlay (ZP), Forest Department,

Table 9.15 Road length maintained by PWD and ZP (km) Type of roads As on Development National Major State Major Other Village Total 31st Board Highways State Highways District District Roads March Highways Roads Roads Vidarbha 2015 1,599 1,639 9,604 11,899 14,642 26,281 65,664 2016 2,134 1,232 9,526 12,391 14,642 26,282 66,207 Marathwada 2015 816 1,757 7,778 11,527 12,251 31,368 65,497 2016 1,407 1,479 7,656 11,525 12,251 31,368 65,686 Rest of 2015 2,351 2,767 16,478 27,159 31,222 88,230 1,68,207 Maharashtra 2016 3,897 2,469 16,148 26,928 31,223 88,231 1,68,896 Total 2015 4,766 6,163 33,860 50,585 58,115 1,45,879 2,99,368 2016 7,438 5,180 33,330 50,844 58,116 1,45,881 3,00,789 Source : PWD, GoM

64 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Maha Facts & Figures

Central Road Fund road connectivity to the of GoM) for the states achieving 9.40 GoI introduced Central Road un- connected habitations in the 100 per cent target of connectivity Fund (CRF) scheme in 2001-02 rural areas with a population to the unconnected habitations to allocate and disburse funds for of 500 & above (250 & above and 75 per cent target of the development and maintenance for tribal areas). A target of upgradation. Under this of national highways, rural 24,439 km of road length for programme,only upgradation of roads, state roads (of economic connecting 8,315 habitations roads can be undertaken. A target importance and to promote in the State has been set under of 2,620 km road length has been interstate connectivity) and PMGSY. Upto November set by GoI for the State. construction of roads either under 2016, road length of 23,198 km has been created by connecting or over the railways by means of Table 9.18 Progress of PMGSY a bridge and erect suitable safety 8,218 habitations. Cumulative works at unmanned rail-road level road length constructed and Year Habitations Road Expenditure crossings. Progress of CRF in the number of habitations connected connected length incurred state is given in Table 9.16. under PMGSY since inception (no.) created (`crore) are given in Table 9.17 and the (km) PradhanMantri Gram Sadak progress of PMGSY is given in 2014-15 155 367 410.00 Yojana Table 9.18. 2015-16 220 318 258.26 9.41 The basic objective of 2016-17+ 19 67 63.29 PradhanMantri Gram SadakYojana 9.42 The GoI has sanctioned (PMGSY) is to provide all-weather PMGSY-II (sharing pattern is 60 Source : RDD, GoM + upto November per cent of GoI and 40 per cent Table 9.16 Progress of CRF in the state Year Works Sanctioned Amount Works (no.) Physical Expenditure sanctioned length sanctioned In progress completed length (` crore) (no.) (km) (` crore) completed (km) upto 2012-13$ 707 7,044.68 2,469.66 10 695 7,044.68 2,572.85 2013-14 6 48.35 84.00 2 4 48.35 79.11 2014-15 33 257.29 390.89 21 12 243.62 280.03 2015-16 86 977.87 1,796.68 85 0 316.30 352.40 2016-17+ 170 1,233.63 3,106.39 158 0 6.50 237.06 TOTAL 1,002 9,561.82 7,847.62 276 711 7,659.45 3,521.45 Source : PWD, GoM $ from 2001-02 + upto January Table 9.17 Cumulative road length constructed and number of habitations connected under PMGSY since inception Development Physical Target Cumulative Physical Achievement + Board Road length Habitations Road length Habitations ( km) (no.) ( km) connected (no.) Vidarbha 7,782 2,921 7,351 (94) 2,858 (98) Marathwada 5,026 1,863 4,919 (98) 1,848 (99) Rest of Maharashtra 11,631 3,531 10,928 (94) 3,512 (99) Total 24,439 8,315 23,198 (95) 8,218 (99) Source: RDD, GoM Figures in bracket indicate percentage to target + upto November 2016

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 65 Maha Facts & Figures

Chief Minister Gramsadak travellers to cover the distance Maharashtra State Road Yojana in six hours. This expressway Development Corporation 9.43 Chief Minister Gramsadak will pass through 10 districts, 30 9.45 Maharashtra State Road Yojana is being implemented tehsils and 354 villages and Development Corporation from 28th October 2015 thereby it will connect 24 districts. (MSRDC) has completed 19 for connecting unconnected At the crossing points of state and projects incurring an expenditure habitations and upgradation of national highways an innovative of ` 7,765 crore upto October existing rural roads in the State. idea of development of 2016. The total toll collected from During 2015-16 and 2016-17, KrushiSamruddhi Kendra is the partially and fully completed physical target of 7,200 km of proposed. This will also generate projects upto October 2016 was village roads is set. Under this employment. This corridor is ` 7,049 crore as against the total scheme, total of ` 221.10 crore is proposed to connect industrial expenditure of ` 8,700 crore. spent on the works. places (Butibori, Wardha, Status of on-going projects of Amravati, Jalna, Chikalthana, MSRDC is given in Table 9.19. Mumbai – Nagpur Samriddhi Shendra, Waluj and Sinnar) & tourist and pilgrimage places Corridor Mumbai Metropolitan (Sewagram, Karanja (Lad), Lonar, 9.44 This proposed corridor is Sindkhedraja, Ellora and Shirdi). Region Development eight lane expressway connecting Total estimated cost of this Authority Mumbai to Nagpur (710 km long project is ` 40,000 crore. 9.46 Mumbai Metropolitan Region and 120 m wide). This will enable (MMR) comprises of area under

Table 9.19 Status of on-going projects of MSRDC (upto October 2016) Commencement Estimated Expenditure Expected Name of project year project cost Incurred year of (` crore) (` crore) completion Western freeway sea link 1998-99 4,143 18.58 NA Road works - Nagpur 2001-02 422 494.33 2016-17 Aurangabad 2001-02 142 326.60 2016-17 Mumbai Urban Transport Project 2003-04 472 321.06 2016-17 (MUTP) Mumbai Urban Infrastructure 2005-06 393 168.01 2016-17 Project (MUIP) Versova- sea link project 2007-08 4,419 16.57 NA Widening of Nagpur-Katol- 2008-09 31 4.08 2016-17 Jalalkheda road Modernisation of border check post 2008-09 1,000 50.13 NA Extended – MUIP 2008-09 2,065 433.60 2016-17 Increasing capacity of Mumbai-Pune 2009-10 5,000 14.98 2019-20 Express Way (MPEW) Way side amenities on MPEW 2014-15 200 2.30 2016-17 Pedder road flyover 2012-13 380 NA NA Source : MSRDC NA Not Available

66 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Maha Facts & Figures eight municipal corporations, Authority (MMRDA) has implemented on Public Private nine municipal councils and undertaken various infrastructure Partnership (PPP) basis. Status about one thousand villages of projects in MMR. Mumbai Metro of on-going transport projects in Thane &Raigad districts. Mumbai Rail project is the mass rapid MMR are given in Table 9.20. Metropolitan Region Development transport system project being

Table 9.20 Status of on-going transport projects in Mumbai Metropolitan Region (`crore) Commenc- Expected Cost of Expendi- Name of project ement year year of Current status project ture+ completion Mumbai Metro Rail Project$: 2016 6,410 1.00 2020-21 Work in progress Phase IIA : Dahisar-D.N. Nagar (18.6 km) Phase III : Colaba-Bandra 2015 23,136 140.00 2020-21 Civil works in progress -SEEPZ (33.5 km) Phase IV : Wadala-Ghatkopar- 2016 14,549 -- 2021-22 Tender process for Thane-Kasarwadavli (32 km) appointment of contractor for civil work is in progress. Phase VII: Andheri (E)-Dahisar(E) 2016 6,208 62.13 March Civil works in progress (16.5 km) 2019 Mumbai Mono Rail Project: 2008 2,460 2,337.00 March Phase I :Wadala to Chembur 2017 (i) Phase I completed (8.93 km) & Phase II :SantGadgeMaharaj Chowk (ii) 98 per cent work (Jacob circle) to Wadala completed in Phase II (11.20 km) MUIP : Roads, flyovers, subways, 2003 3,207 4,757.41 April (i) All the roads completed. etc.(18 roads) 2018 (ii) Remaining works in prog- ress

Construction of elevated road in December The work is in progress at between BKC – G block & the 2017 BKC, Mithi River, colony road Eastern Express Highway. & Somaiya ground. EXTENDED MUIP: Phase - I & II : 35 sub-projects 2007 2,607 2,193.57† May 2018 (i) Road length of 214 km undertaken. completed (276 km roads, 18 flyovers, three (ii) Seven flyovers completed creek bridges and two ROB) (iii) Remaining works in progress Phase - III : 17 sub- projects (32 3,629 May 2018 (i) Actual work of ten bridges, three tunnels & 133 km sub-projects in progress roads) (ii) Preliminary work of remaining in progress

Multi-ModalCorridorfrom 2010 9,500@ 9.32 December Land acquisition and the work Virar to Alibaug: Construction of 2023 is in progress. freeway with eight lanes for the vehicles besides dedicated lanes for buses (126 km) Mumbai Trans – Harbour link : 2011 17,843 36.99 December Tender processes for Construction of bridge across the 2021 appointment of consultant sea from Sewri to Nhava (22 km) and contractor for the project are in progress. MUIP Mumbai Urban Infrastructure Project, ROB Railway Over Bridge, BKC BandraKurla complex $ Phase-I Varsova-Andheri-Ghatkopar (14 km) was completed. @ Excluding land acquisition cost, † including phase-III Source : MMRDA + upto October 2016 Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 67 Maha Facts & Figures

Motor Vehicles percent over the previous year. organised in the State. The number 9.47 The total number of motor The number of learning licenses of accidents per ten thousand vehicles on road in the State issued in the State at the end of vehicles in Maharashtra during as on 1st January 2017 was 2.9 March 2016 was 25 lakh. 2016 were 14. Number of crore (24,411 vehicles per lakh accidents, persons killed & injured population), showing an increase 9.49 Every year, plays and lectures in the State and Brihanmumbaiare of about eight per cent over based on theme of road safety are given in Table 9.22. previous year. Of the total vehicles in the State, about 29.7 lakh vehicles (10.1 per cent) were in Brihanmumbai alone. The number of vehicles per km road length in the State is 98. The categorywise number of motor vehicles on road are given in Table 9.21 and year wise series of motor vehicles on road is given in Annexure 9.4.

9.48 The number of valid motor driving licenses in the State at the end of March 2016 was three crore, showing an increase of 3.3

Table 9.21 Categorywise number of motor vehicles on road (‘000) As on 1st January Category Maharashtra Brihanmumbai 2016 2017* Percent 2016 2017* Percent change change Two wheelers 19,881.5 21,476.7 8.0 1,591.8 1,725.1 8.4 (motorcycles, scooters & mopeds) Auto rickshaws 726.1 744.2 2.5 119.5 121.2 1.4 LMV (cars, jeeps, station wagons & taxis) 4,074.8 4,433.4 8.8 939.8 1,027.1 9.3 Buses (stage carriages, contract carriages, 115.5 127.7 10.6 13.5 14.4 6.7 school buses & PSV) Goods vehicles {Articulated/Multiaxel 1,422.8 1,505.2 5.8 70.9 75.7 6.8 vehicles, trucks & lorries, tankers, delivery vans (3 & 4 wheelers), etc.} Tractors 603.6 639.2 5.9 0.2 0.2 0.0 Trailers 384.5 396.2 3.0 0.1 0.1 0.0 Ambulances 14.3 15.0 4.9 1.6 1.7 6.2 Others 47.0 56.8 20.9 1.2 1.3 8.3 Total 27,270.1 29,394.4 7.8 2,738.6 2,966.8 8.3 LMV–Light Motor Vehicles PSV - Public Service Vehicles * Provisional Source : Office of the Transport Commissioner, GoM

68 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Maha Facts & Figures

Table 9.22 Number of accidents, persons killed & injured in the State and Brihanmumbai Year Number of persons killed Number of persons injured State Brihan- State Brihan- Perce- State Brihan- Perce- mumbai mumbai ntage@ mumbai ntage@ 2014 61,627$ 22,557$ 12,803 529 4.1 40,455 3,936 9.7 2015 63,805$ 23,347$ 13,212 520 3.9 39,606 4,037 10.2 2016 39,848# 3,349# 12,883 510 4.0 35,894 3,532 9.8 $ including all registered accidents # Only offence registered accidents @ Brihanmumbai to State Source : Office of the Additional Director General (Traffic), GoM

Public Passenger Road per day during 2015-16. Effective passenger transport as on 31st Transport Facility kms operated per day has March 2016 were 17.5 per cent, increased by about 0.5 per cent 5.5 per cent and 3.5 per cent Maharashtra State Road and the percentage load factor respectively. The percentage of Transport Corporation (including value of concession) villages and population served 9.50 Share capital of GoI and has decreased by 1.3 percentage by MSRTC is given in Table 9.23 GoM in Maharashtra State Road points over the previous year. Rates and the operational statistics of Transport Corporation (MSRTC) of passenger tax on passenger MSRTC is given in Table 9.24. as on 31st March 2016 was ` income from rural passenger 56.77 crore and ` 1,341.21 crore transport, air - conditioned respectively. MSRTC carried an passenger transport and urban average of 67.10 lakh passengers

Table 9.23 Villages covered and population served by MSRTC bus services (Percentage) Particulars Villages covered Population served 2014-15 2015-16 2014-15 2015-16 Directly connected 73.8 74.5 90.4 91.1 Upto 3 km 16.4 15.7 6.3 5.9 Between 3 to 5 km 5.6 5.6 1.9 1.7 Beyond 5 km 4.2 4.2 1.4 1.3 Source : MSRTC

Table 9.24 Operational statistics of MSRTC Percent Item 2014-15 2015-16 2016-17+ change Total vehicles in possession 17,957 18,514 3.1 18,726 Average no. of buses on road per day 16,702 16,981 1.7 16,829 Total employees 1,07,500 1,05,679 (-)1.7 1,03,467 Average effective km operated per day (lakh) 57.12 57.39 0.5 56.76 Average no. of passengers carried per day 67.28 67.10 (-)0.3 65.32 (lakh) Vehicle productivity (km) 318.09 310.01 (-)2.5 303.11 KPTL# 47.63 47.62 (-)0.02 47.55

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 69 Maha Facts & Figures

Crew productivity (km) 227.61 229.40 0.8 216.6 Bus Staff ratio (on schedule) (as on 31st 6.44 6.22 (-)3.4 6.19 March) Average seating capacity 43.95 43.71 (-)0.5 43.00 Percentage load factor (excluding value of 57.16 55.71 (-)1.5@ 55.36 concession) Percentage load factor (including value of 70.86 69.60 (-)1.3@ 68.72 concession) Source : MSRTC # kilometers per ten liters (Diesel) @ Point + upto January 9.51 Apart from regular students, senior citizens (above 65 MSRTC has received ` 1,805.01 operations, MSRTC provides years), cancer patients, freedom crore on account of interest special services for fairs and casual fighters, etc. The concession bearing capital contribution from contracts. The operational amount is reimbursed by GoM. April 2009 to March 2016. Financial statisticsof fairs and casual During 2015-16, an amount of status of MSRTC is given in Table contracts are given in Table 9.25. concession was ` 1,354 crore. The 9.26. Table 9.25 Operational statistics of fairs & casual contracts Particulars Fairs Casual contracts 2014-15 2015-16 2014-15 2015-16 Conces Non- Total Conces Non- Total -sional conces- -sional conces- sional sional Effective km (lakh) 199.49 196.37 136.80 108.85 245.65 125.09 64.73 189.82 Income earned (` lakh) 6,150.12 5,924.45 3,429.77 6,554.73 9,984.50 3,114.80 3,334.00 6,448.80 Earning per km (`) 30.83 30.17 25.07 60.22 40.65 24.90 51.51 33.97 Source : MSRTC Table 9.26 Financial status of MSRTC (‘000) 9.52 MSRTC provides various types of concessions in fares to Particulars 2013-14 2014-15 2015-16 (A) Receipts (i) Revenue from 6,519.84 7,061.69 7,069.28 passengers (ii) Other revenue 217.70 196.97 215.20 Total 6,737.54 7,258.66 7,284.48 (B) Expenditure (i) Passenger, Motor 862.98 932.85 915.15 vehicle, Municipal Taxes and Octroi (ii) Depreciation 408.17 373.00 354.66 (iii) Others 6,060.59 6,594.41 6,197.43 Total 7,331.74 7,900.26 7,467.24 Profit (A – B) (-) 594.20 (-)641.60 (-)182.76 Prior period adjustment 21.55 250.60 60.87 Net profit (-) 572.65 (-)391.00 (-)121.89 Source : MSRTC

70 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Maha Facts & Figures

9.53 The toll charges paid by City Public Passenger provides local passenger transport MSRTC for the year 2013-14, Transport facility in seven cities (Aurangabad, 2014-15 and 2015-16 were` 133 9.54 The public passenger road Nanded, Nashik, Sangli-Miraj, crore, ` 146 crore and ` 123 crore transport is the major mode of Ratnagiri, Chandrapur and Vasai - respectively. The number of passenger transport in cities. This Virar-Nalasopara), Brihanmumbai accidents & compensation paid facility is available in 23 cities Electricity Supply & Transport by MSRTC is given in Table 9.27. in the State. Of these, MSRTC (BEST) in Brihanmumbai, Pune Table 9.27 Number of accidents and compensation paid by MSRTC Particulars 2013-14 2014-15 2015-16 Accidents (no.) 3,154 3,172 2,920 Persons killed (no.) 533 494 445 Persons injured (no.) 6,366 6,276 5,213 Accidents per lakh km 0.15 0.15 0.14 On the spot payment (` lakh) 37.27 62.57 50.55 Final compensation (` lakh) 3,778.21 4,607.24 7,083.58 Source : MSRTC Table 9.28 Operational statistics of public passenger transport services in cities ( As on 31st March) Transport Average no. Average no. of Average Net profit/ loss service provider of vehicles passengers effective (` lakh) on road carried km operated per day per day (lakh) per day (lakh) 2015 2016 2015 2016 2015 2016 2015 2016 BEST 3,636 3,466 33.47 28.99 6.68 6.40 (-)85,802 (-)1,06,192 PMPML 1,364 1,447 12.17 11.24 3.14 3.13 (-)16,769 (-)15,181 MSRTC (City 482 485 2.44 2.40 0.91 0.89 (-)2,688 (-)2,271 operations) Nagpur Municipal 240 240 1.35 1.24 0.42 0.43 (-)2,534 (-)2,440 Transport Navi Mumbai 243 257 2.19 2.31 0.67 0.72 (-)3,209 (-)4,159 Municipal Transport Thane Municipal 174 192 1.71 1.57 0.35 0.36 (-)3,796 NA Transport Kolhapur Municipal 92 101 0.71 0.60 0.21 0.24 (-)86 (-)692 Transport Vasai-Virar 110 115 0.85 0.85 0.22 0.24 (-)118 (-)140 Municipal Transport Kalyan-Dombivli 75 83 0.40 0.46 0.13 0.16 (-)1,764 (-)1,216 Municipal Transport Solapur Municipal 70 96 0.47 0.72 0.16 0.23 (-)801 (-)502 Transport

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 71 Maha Facts & Figures

Mira-Bhayander 39 30 0.24 0.19 0.09 0.05 (-)216 (-)310 Municipal Transport Amravati Municipal 33 33 0.35 0.28 0.08 0.08 7 7 Transport Ahmednagar -- 18 -- 0.11 -- 0.02 -- (-)72 Municipal Transport Khopoli Municipal 11 13 0.39 0.43 0.2 0.2 2 12 Transport Source : Concerned Municipal Council/Corporations, BEST, PMPML & MSRTC NA Not Available

Mahanagar Parivahan Mahamandal various transport related problems and passenger traffic are the two Ltd (PMPML) in Pune & in Mumbai Metropolitan Region major segments of the railways. Pimpri - Chinchwad Municipal (MMR), Unified Mumbai The railway route length in the Corporation area and in remaining Metropolitan Transport Authority State as on 31st March 2016 was 13 cities respective Municipal is established. MMRDA aims 6,127 km (including 381 km of Council / Corporations are to provide seamless travel to Konkan railway), which is 9.2 per providing such facilities. commuters in MMR in terms of cent of the total railway route Operational statistics of public Ticketing Integration. The process length (66,688 km) of India. The passenger transport services in of implementation of National status of on-going railway works cities is given in Table 9.28. Common Mobility Card through is given in Table 9.29. Integrated Ticketing System (ITS) Unified Mumbai project in MMR is proposed. Mumbai Suburban Railway MetropolitanTransport 9.57 Suburban rail network is the Authority Railways principal mode of mass transport 9.55 With a view to enhance public 9.56 Railway is the effective mass in Mumbai. Two zonal railways, transport system and to address transport system in India. Freight viz.Western Railway (37 stations) Table 9.29 Status of on-going railway works (as on 31st October 2016) Route Total Name of route length project cost Status (km) (`crore) Ahmednagar-Narayandoh 261 2,826.00 Overall physical progress of the project is 12 -Beed-Parli- Vaijnath per cent. Baramati-Lonand (new line) 54 736.44 Overall physical progress of complete section is 50 per cent. Belapur-Seawood-Uran (new line) 27 1,781.98 Overall physical progress of complete section is 45 per cent. Wardha-Nanded (new line) 284 2,491.43 Overall physical progress of complete section is 6 per cent. Panvel-Pen (doubling) 35 260.16 Overall physical progress of complete section is 98 per cent. Pen-Roha (doubling) 40 375.00 Overall physical progress of complete section is 95 per cent.

72 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Maha Facts & Figures

Godhani-Kalmuna (doubling) 13 59.13 Work completed. Kalyan-Kasara 3rd line 68 792.89 Overall physical progress of complete section (doubling) is 8 per cent. Bhusawal-Jalgaon 3rd line 24 199.12 Overall physical progress of complete section (doubling) is 25 per cent. Wardha-Sewagram-Nagpur 3rd 76 540.02 Overall physical progress of complete section line (doubling) is 10 per cent. Source : South Eastern, Central, South Central & Western Railway and Konkan Railway Corporation.

Table 9.30 Number of accidental deaths and injured (causewise) in Mumbai suburban railway 2014 2015 2016 Causes of accident Deaths Injured Deaths Injured Deaths Injured

Line cross 1,912 486 1,801 468 1,798 379 Fall in gap 34 39 40 26 13 19 Fall down from train 797 1,714 806 1,697 657 1,498 Dash to railway poles 11 77 13 89 8 85 Others$ 669 983 644 1,069 726 1,382 Total 3,423 3,299 3,304 3,349 3,202 3,363 $ include electric shock, suicide, natural deaths, cases referred for chemical analysis, etc. Source : Mumbai Railway Police Commissionerate, GoM and Central Railway (62 stations) services, carrying on an average 9.58 Mumbai Railway Vikas operate Mumbai suburban railway 76.3 lakh passengers daily. Number Corporation Ltd (MRVC) is system. The Harbour line with of accidental deaths and injured implementing rail component of 38 stations is part of the Central (causewise) in Mumbai suburban MUTP II. The status of on-going Railway. A fleet of 205 local railway is given in Table 9.30. projects of MUTP II is given in trains is utilised to run 2,855 train Table 9.31.

Table 9.31 Status of on-going projects of MUTP II (as on 31st January 2017) Name of project Commence Length Estimated Expenditure Physical Expected ment year of corridor cost (` crore) progress year of (rkm) (` crore) completion CST-Kurla (Additional 5th 2008-09 15.39 891 38.76 Work in March 2021 & 6th line) progress Thane-Diva(Additional 2008-09 9.44 440 247.24 69 percent work March 2019 5th& 6th line) is completed Mumbai Central - Borivali 2008-09 29.50 919 198.31 17 percent work March 2021 (Additional 6th line) is completed Andheri – Goregaon 2008-09 5.07 214 186.14 75 percent work May 2017 is completed (Extension of Harbour line)

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 73 Maha Facts & Figures

Running of 12 car on 2012-13 61.13 Harbour line 519 -- Under process 2018 a) Procurement of 195 112.28 75 per cent work March 2017 153 coaches is completed b) Platform extension for 12 coaches Source : Mumbai Railway Vikas Corporation rkm : route kilometer

Navi Mumbai Metro Rail and 36 stations. The entire stretch Water Transport Major Ports Project of this project will be divided into 9.62 The State has 720 km long 9.59 CIDCO has finalised six two corridors viz. North-South coastline with two major ports, metro rail corridors for corridor (19.658 km - 17 stations) operated by Mumbai Port Trust development in phases. CBD and East-West corridor (18.557 (MbPT) and Jawaharlal Nehru Belapur - Pendhar - Taloja MIDC km-19 stations). The cost of this Port Trust (JNPT). During 2015- -Kalamboli-Khandeshwar-Navi project is estimated at `8,680 16, MbPT and JNPT handled Mumbai International Airport crore. 611.10 lakh MT and 640.27 lakh corridor shall be executed in MT cargo traffic respectively. The the first phase in four stages, of Pune Metro Rail Project operating surplus for MbPT in which, the work of first stage, 11.1 9.61 Pune Metro Rail Project 2015-16 was ` 402.49 crore which km Belapur-Pendhar (estimated |consists a length of 31.254 km was 21.3 per cent more than the project cost of ` 3,043 crore) is in and 31 stations. Estimated cost previous year. The operating progress. of this project is ` 11,522 crore. surplus for JNPT in 2015-16 was This project is expected to be ` 971.98 crore which was 16.2 per Nagpur Metro Rail Project completed by 2021. cent more than the previous year. 9.60 Nagpur Metro Rail Project Operational statistics of major consists a length of 38.215 km ports is given in Table 9.32.

Table 9.32 Operational statistics of major ports Item MbPT JNPT 2014-15 2015-16 Percent 2014-15 2015-16 Percent change change Total cargo capacity (lakh MT) 502.50 502.50 -- 658.80 793.7 20.5 Employees (no.) 10,897 10,166 (-)6.7 1,669 1,638 (-)1.9 Cargo traffic handled (lakh MT) 616.60 611.10 (-)0.9 638.01 640.27 0.4 Of which A) Import 406.16 412.94 1.7 342.11 350.75 2.5 B) Export 210.44 198.16 (-)5.8 295.90 289.52 (-)2.2 Passenger traffic handled (‘000) 7.92 3.18 (-)59.8 NA NA NA Vessels handled (no.) 4,584 5,169 12.8 2,642 2,780 5.2 Operating income (` crore) 1,399.78 1,478.18 5.6 1,508.08 1,665.1 10.4 Operating expenditure (` crore) 1,068.10 1,075.69 0.7 671.51 693.12 3.2 Operating surplus/profit (` crore) 331.68 402.49 21.3 836.57 971.98 16.2 Source : MbPT& JNPT NA Not Applicable

74 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Maha Facts & Figures

Non-Major Ports within the limits of non-major build new integrated Terminal T2 9.63 As per the State Port Policy ports, which also undertake the for modernisation of Chhatrapati 2010, Maharashtra Maritime cargo handling. The non-major Shivaji International Airport Board (MMB) has undertaken ports together handled 155.53 (CSIA), Mumbai. The new developmentof six non-major lakh MT cargo traffic and 80.20 Terminal T2 is a state-of-the-art ports. Of these ports, lakh passenger traffic during 2016- world class terminal with a capacity Dhamankhol-Jaigad, Dighi and 17 upto September. Operational to handle 40 million passengers Lavgan-Jaigad (Angre Port) statistics of non-major ports is per annum. The new Terminal ports were commissioned. Pre- given in Table 9.33. T2 has been commissioned and construction activities are in started operations.There are three progress for Rewas-Aware, Air Transport international and eight domestic Vijaydurg and Redi ports Apart 9.64 Airports Authority of India airports functioning in the State. from these ports, there are (AAI) along with Mumbai Operational statistics of airport number of captive and International Airport Ltd. has wise passenger and cargo traffic multi -purpose jetties set up undertaken a mega project to are given in Table 9.34. Table 9.33 Operational statistics of non-major ports Particulars 2014-15 2015-16 2016-17+ Cargo traffic handled (lakh MT) 273.58 288.49 155.53 Of which A) Import 230.13 244.74 130.53 B) Export 43.45 43.75 25.00 Passenger traffic handled (lakh) 178.35 180.72 80.20 Of which A) By mechanised vessels 167.03 169.80 76.54 B) By non- mechanised vessels 11.32 10.92 3.66 Source : Maharashtra Maritime Board + upto September

Table 9.34 Operational statistics of airportwise passenger and cargo traffic (As on 31st March) Airport Passengers (lakh) Per cent Cargo (MT) Per cent 2015 2016 change 2015 2016 change A) Domestic 312.11 372.16 19.2 2,42,362 2,48,513 2.5 Mumbai 252.05 300.46 19.2 2,07,720 2,09,003 0.6 Pune 40.68 51.76 27.2 27,390 31,765 16.0 Nagpur 13.56 15.21 12.2 5,595 5,958 6.5 Aurangabad 4.24 2.99 (-)29.5 1,250 1,406 12.5 Kolhapur neg. neg. -- neg. neg. -- Juhu 1.56 1.74 11.5 407 381 (-)6.4 Nanded neg. neg. -- neg. neg. -- Solapur 0.02 neg. -- neg. neg. -- B) International 113.73 117.09 3.0 4,86,976 4,96,680 2.0 Mumbai 112.03 113.92 1.7 4,86,540 4,96,246 2.0 Nagpur 0.45 0.74 64.4 436 433 (-)0.69 Pune 1.23 2.41 95.9 0 1 -- Aurangabad@ 0.02 0.02 -- 0 0 -- Total ( A + B) 425.84 489.25 14.89 7,29,338 7,45,193 2.17 Source : Airport Authority of India @ Passenger traffic by chartered plane. neg. negligible Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 75 Maha Facts & Figures

9.65 Five airports viz. Nanded, comprises of developing existing communication system. The Latur, Osmanabad, Yavatmal and airport as an international and operational statistics of postal Baramati were awarded to Reliance cargo hub airport. This is services is given in Table 9.35. Airports Developers Private being implemented through Limited (RADPL) by MIDC to MIHAN India Ltd. (MIL), a joint 9.70 The total number of landline develop, upgrade, operate, manage venture company comprising connections at the end of and maintain for 95 years of of Maharashtra Airport September 2016 in the State was lease in November 2009. Only Development Company Ltd. 48.94 lakh. The landline and non-scheduled /charter flights (MADC) and AAI. An advisor cell phone connections per lakh operate from these airports and has been appointed to assist MIL population were 4,076 & 97,349 passengers handled by these in selecting a strategic partner for respectively. Data of landline and airports during 2015-16 were up-gradation and modernisation cell phone connections is given in 1,026. of Dr. Babasaheb Ambedkar Table 9.36. International Airport, Nagpur. 9.66 To reduce air- 9.71 The internet subscriber base traffic congestion in Mumbai Communications in the State as on 30th September International Airport, an 9.69 Posts, telephones, voice- 2016 was 4.72 crore which is additional airport has been video and data telecommunication highest among all states. proposed at Navi Mumbai in are major components of the four phases through PPP with Table 9.35 Operational statistics of postal services estimatedcost of about ` 1 6 , 7 0 4 (no.) crore. Particulars Area 2014-15 2015-16 Post offices Rural 11,362 11,368 9.67 Ojhar airport, Nashik carried Urban 1,239 1,233 about 91,597 MT and 99,391 Total 12,601 12,601 MT EXIM cargo during 2015-16 Letter boxes Rural 35,570 40,720 and 2016-17 (upto December) Urban 8,087 7,616 respectively. Total 43,657 48,336 Delivery postmen Rural 20,706 20,037 9.68 The Multimodal International (including Dak Sevak) Urban 14,498 14,181 Passenger and Cargo Hub Airport at Nagpur (MIHAN) project Total 35,204 34,218 Source : General Post Office, Mumbai Table 9.36 Landline and cell phone connections ( lakh) Operator 2014-15 2015-16 2016-17+ Landlines Cell phones Landlines Cell phones Landlines Cell phones MTNL 19.42 11.74 18.89 12.42 18.48 12.89 BSNL 16.82 51.07 15.35 58.50 14.29 62.59 Bharati 4.09 167.46 4.24 192.19 4.29 197.02 Idea/Spice -- 257.96 -- 275.65 -- 282.72 Reliance 3.19 109.04 3.33 113.71 3.38 108.49 Tata 8.06 103.13 8.18 98.84 8.18 92.16 Vodafone 0.22 258.68 0.27 271.35 0.32 274.49 Aircel-Dishnet -- 43.29 -- 54.68 -- 56.79 Telenor -- 73.50 -- 81.63 -- 81.59 Total 51.80 1,075.87 50.26 1,158.97 48.94 1,168.74 Source : Telecom Regulatory Authority of India + upto September

76 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Maha Facts & Figures 172

ANNEXURE 9.1

ELECTRICITY SUPPLY & CONSUMPTION IN THE STATE

Item 1960-61 1970-71 1980-81 1990-91 2000-01 2010-11 2015-16

(1) (2) (3) (4) (5) (6) (7) (8)

A. Installed capacity (MW)

A - 1 Installed Capacity in the State $ $ 477 1,065 (1) Thermal 2,771 6,462 8,075 9,665 19,216

(2) Renewable Energy ------3,408 6,978

(3) Hydro 282 844 1,317 1,552 2,874 3,066 3,066

(4) Natural Gas ------672 1,820 2,714 3,072

Total (A-1) 759 1,909 4,088 8,686 12,769 18,853 32,332

A - 2 State’s share in Installed Capacity of - 2,048@ (1) National Thermal Power Corp. N.A. N.A. N.A. N.A. 4,686 6,336

(2) Nuclear Power Corporation N.A. N.A. N.A. N.A. 137 690 690

Total (A-2) N.A. N.A. N.A. N.A. 2,185 5,376 7,026

Total (A-1 + A-2) 759 1,909 4,088 8,686 14,954 24,229 39,358

B. Generation (MUs) - 1,903$ (1) Thermal 3,392 11,416 28,085 49,377 52,796 94,482

(2) Natural Gas ------2,730 6,943 18,729 5,302

(3) Hydro 1,365 4,533 6,448 5,615 4,889 6,374 5,045 Renewable Energy # (4) ------5,118 8,958 #

Total 3,268 7,925 17,864 36,430 61,209 83,017 1,13,787

C. Consumption (MUs) -

(1) Industrial 1,853 5,312 8,130 14,706 18,363 34,416 40,231

(2) Domestic 260 732 1,779 5,065 11,172 19,546 27,001

(3) Agriculture 15 356 1,723 6,604 9,940 16,257 28,236

(4) Commercial 198 547 949 2,068 4,105 11,527 13,182

(5) Railways 339 421 766 970 1,581 2,188 1,795

(6) Public Water works 35 146 330 N.A. 1,199 1,983 2,530

(7) Public lighting 20 74 159 291 551 846 1,757

(8) Miscellaneous -- 62 198 267 378 633 2,011

Total 2,720 7,650 14,034 29,971 47,289 87,396 1,16,743

D. Per capita ultimate consumption of

electricity (Units)

(1) Industrial 46.8 105.4 129.5 195.4 191.2 307.2 339.1

(2) Commercial 5.0 10.9 15.1 27.5 42.7 102.9 111.1

Source - (1) CEA - Central Electricity Authority N.A. - Not available.

(2) MAHAGENCO

(3) MAHADISCOM

(4) BEST

(5) TATA Power

(6)

Note - (1) The above figures are related to public utilities only. (2) @ This includes additional share of 323 MW from NTPC/ NPC which was unallocated share and surplus from . (3) # This includes captive power and Renewable Energy (sold to MAHADISCOM). (4) $ The figures for Oil is included in Thermal (5) Installed capacity & Generation for private companies other than Tata Power & Reliance Infrastructure are taken from CEA website reports.

(6) 1 Unit = 1 Kilo Watt Hour.

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 77

Economic Survey of Maharashtra 2016-17 Maha Facts & Figures173

ANNEXURE 9.2

ROAD LENGTH BY TYPE OF ROADS IN MAHARASHTRA STATE (MAINTAINED BY PUBLIC WORKS DEPARTMENT AND ZILLA PARISHADS) 173

ANNEXURE 9.2

(km) ROAD LENGTH BY TYPE OF ROADS IN MAHARASHTRA STATE Serial National Major State State Major Other Village Year(MAINTAINED BY PUBLIC WORKS DEPARTMENT AND ZILLA PARISHADS) All roads No. highways highways highways district roads district roads roads

(1) (2) (3) (4) (5) (6) (7) (8) (9)

(km)

Serial National Major State State Major Other Village

Year All roads 1 1965-66 2,364 -- 10,528 12,628 8,744 17,524 51,788

No. highways highways highways district roads district roads roads

(1) (2) (3) (4) (5) (6) (7) (8) (9)

2 1970-71 2,445 -- 14,203 17,684 11,012 20,020 65,364

1 1965-66 2,364 -- 10,528 12,628 8,744 17,524 51,788

3 1980-81 2,945 -- 18,949 25,233 25,404 68,600 1,41,131

2 1970-71 2,445 -- 14,203 17,684 11,012 20,020 65,364

4 1990-91 2,959 -- 30,975 38,936 38,573 61,522 1,72,965

3 1980-81 2,945 -- 18,949 25,233 25,404 68,600 1,41,131

5 2000-01 3,688 -- 33,212 46,751 43,696 89,599 2,16,946 4 1990-91 2,959 -- 30,975 38,936 38,573 61,522 1,72,965

5 2000-01 3,688 -- 33,212 46,751 43,696 89,599 2,16,946 6 2005-06 4,367 -- 33,571 48,987 45,22699,279 2,31,430

6 2005-06 4,367 -- 33,571 48,987 45,226 99,279 2,31,430

7 2006-07 4,367 -- 33,675 49,147 45,674 1,00,801 2,33,664

7 2006-07 4,367 -- 33,675 49,147 45,674 1,00,801 2,33,664

8 2007-08 4,367 -- 33,800 49,393 45,886 1,02,149 2,35,595

8 2007-08 4,367 -- 33,800 49,393 45,886 1,02,149 2,35,595

9 2008-09 4,367 -- 33,933 49,621 46,143 1,03,604 2,37,668

9 2008-09 4,367 -- 33,933 49,621 46,143 1,03,604 2,37,668

10 2009-10 4,376 -- 34,102 49,901 46,817 1,04,844 2,40,040

10 2009-10 4,376 -- 34,102 49,901 46,817 1,04,844 2,40,040

11 2010-11 4,376 -- 34,103 49,936 46,897 1,06,400 2,41,712

11 2010-11 4,376 -- 34,103 49,936 46,897 1,06,400 2,41,712

12 2011-12 4,376 -- 34,157 50,256 47,529 1,06,601 2,42,919

12 2011-12 4,376 -- 34,157 50,256 47,529 1,06,601 2,42,919

13 2012-13 4,376 6,694 27,528 50,256 47,573 1,06,745 2,43,172

13 2012-13 4,376 6,694 27,528 50,256 47,573 1,06,745 2,43,172

14 2013-14 5,858 6,337 33,963 50,232 52,761 1,14,557 2,63,708

14 2013-14 5,858 6,337 33,963 50,232 52,761 1,14,557 2,63,708

15 2014-15 4,766 6,163 33,860 50,585 58,115 1,45,879 2,99,368

15 2014-15 4,766 6,163 33,860 50,585 58,115 1,45,879 2,99,368

16 2015-16 7,438 5,180 33,330 50,844 58,116 1,45,881 3,00,789 16 2015-16 7,438 5,180 33,330 50,844 58,116 1,45,881 3,00,789

SourceSource - - PublicPublic Works Works Department, Department, GoM GoM

NoteNote - - (1)(1) The The classification classification of of road road lengthlength uptoupto 1987 1987 was was according according to to"Road "Road Development Development Plan Plan(RDP), (RDP), 1961-81” 1961-81” and 1987-88 and 1987-88 onwardsonwards it itis isaccording according to to "RDP "RDP 1981-2001."

(2)(2) StateState highways highways includes includes major State highways highways for for 1965-66 1965-66 to 2011-12.to 2011-12.

(3) The classification of road length from 2012-13 is according to “RDP 2001-21”. (3) The classification of road length from 2012-13 is according to “RDP 2001-21”.

78 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Economic Survey of Maharashtra 2016-17 Economic Survey of Maharashtra 2016-17 Maha174 Facts & Figures

ANNEXURE 9.3

CLASSIFICATION OF DISTRICT-WISE ROAD LENGTH ACCORDING TO BREADTH

(MAINTAINED BY PWD AND ZP)

(km) Sr. District Achievement in Length 2014-15 Achievement in Length 2015-16 No. Breadth (mt.) 7.0 5.5 3.75 Other Total 7.0 5.5 3.75 Other Total (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

1 Brihan Mumbai 49 0 0 0 49 60 ------60 2 Thane 583 774 4,140 4,160 9,656 250 213 900 2,114 3,477 3 Palghar ------255 391 3,259 2,065 5,970 4 Raigad 782 481 2,614 2,360 6,237 1,200 266 2,237 2,418 6,121 5 Ratnagiri 449 872 8,053 0 9,374 457 914 8,021 0 9,392 6 Sindhudurg 120 713 7,070 0 7,903 124 788 6,889 0 7,801 Konkan 1,982 2,840 21,877 6,520 33,219 2,346 2,572 21,306 6,597 32,821 7 Pune 785 1,227 16,614 61 18,688 1,278 1,246 16,454 120 19,098 8 Satara 371 969 8,838 2,170 12,348 451 963 8,889 2,158 12,461 9 Sangli 407 1,045 6,449 4,247 12,147 573 1,055 6,355 4,247 12,230 10 Kolhapur 448 859 3,759 3,501 8,566 590 861 3,743 3,500 8,694 11 Solapur 1210 1,077 11,858 2,928 17,073 1,710 927 11,851 2,908 17,396 Western Maharashtra 3,221 5,177 47,518 12,906 68,822 4,602 5,052 47,292 12,933 69,879 12 Ahmednagar 1,050 1,309 10,980 7,304 20,662 723 1,237 11,245 7,582 20,787 13 Nashik 1,003 1,488 11,707 4,825 19,024 1,229 1,543 11,654 4,710 19,136 14 Dhule 390 537 4,488 156 6,658 550 533 5,433 85 6,601 15 Nandurbar 121 404 4,756 1,815 7,096 248 492 4,472 1,793 7,005 16 Jalgaon 589 1,274 4,342 6,523 12,727 556 1,257 4,433 6,420 12,666 North Maharashtra 3,154 5,012 36,274 20,624 66,166 3,306 5,062 37,237 20,590 66,195 17 Aurangabad 543 634 6,922 2,015 10,114 671 787 7,061 2,006 10,525 18 Jalna 286 424 4,937 1,754 7,401 277 424 4,937 1,756 7,394 19 Parbhani 181 513 3,789 929 5,412 180 513 3,789 929 5,411 20 Hingoli 139 191 3,505 17 3,852 75 169 3,505 17 3,766 21 Nanded 439 733 8,306 1,846 11,324 384 733 8,306 1,846 11,269 22 Beed 748 598 7,519 3,497 12,362 789 598 7,519 3,473 12,379 23 Osmanabad 389 789 4,831 1,488 7,497 360 801 4,831 1,467 7,459 24 Latur 401 837 4,632 1,665 7,535 270 901 4,671 1,640 7,482 Marathwada 3,126 4,719 44,441 13,211 65,497 3,006 4,926 44,619 13,134 65,685 25 Buldhana 347 826 2,635 1,585 5,393 561 826 2,635 1,585 5,607 26 Akola 284 503 1,533 968 3,288 388 503 1,533 938 3,392 27 Washim 282 450 1,119 1,119 2,970 286 450 1,119 1,119 2,974 28 Amravati 555 965 1,793 4,909 8,222 677 960 1,792 4,909 8,338 29 Yawatmal 643 920 4,327 2,523 8,413 487 997 4,241 2,517 8,242 Amravati 2,111 3,664 11,407 11,104 28,286 2,399 3,736 11,320 11,098 28,553 30 Wardha 282 421 1,231 2,291 4,225 234 469 1,092 2,298 4,093 31 Nagpur 775 652 3,099 4,122 8,647 784 631 3,118 4,238 8,771 32 Bhandara 98 347 3,821 962 5,228 137 360 3,673 1,040 5,210 33 Gondia 113 431 2,326 2,683 5,552 103 433 2,301 2,803 5,640 34 Chandrapur 362 1,484 2,345 3,600 7,792 415 508 3,309 3,593 7,825 35 Gadchiroli 403 631 2,048 2,853 5,935 252 694 2,257 2,914 6,117 Nagpur 2,033 3,967 14,869 16,510 37,378 1,925 3,095 15,750 16,886 37,656 Maharashtra State 15,628 25,379 1,76,386 80,875 2,99,368 17584 24,443 1,77,524 81,238 3,00,789

Source - Public Works Department, GoM

MaharashtraEconomic Survey Economic of Maharashtra Development 2016-17 Council, Monthly Economic Digest July & August 2017 79 Maha Facts & Figures175

ANNEXURE 9.4

CATEGORYWISE NUMBER OF MOTOR VEHICLES ON ROAD IN MAHARASHTRA STATE

(As on 1st January)

Sr. ** 2017 No Class of vehicles 1971 1981 1991 2001 2011 2015 2016 .

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Motor-cycles,

1 83,930 3,46,826 16,96,157 44,09,906 1,20,60,990 1,81,51,386 1,98,81,499 2,14,76,733

scooters & mopeds

Motor cars, Jeeps &

2 1,22,508 2,24,752 4,23,505 9,01,278 23,82,789 35,46,653 38,50,530 41,51,946

Station wagons

3 Taxi cabs 17,806 31,302 43,168 86,438 1,82,676 2,03,180 2,24,308 2,81,496

4 Auto rickshaws 3,049 29,474 1,26,049 4,07,660 6,44,037 7,19,341 7,26,120 7,44,230

5 Stage carriages 10,250 13,789 18,203 27,286 34,061 37,630 38,318 38,482

6 Contract carriages -- 1,498 3,980 13,975 31,459 39,662 43,985 52,058

7 Lorries—

(i) Diesel engined 34,987 87,079 1,80,883 3,41,344 8,78,239 12,96,116 13,88,231 14,69,506

(ii) Petrol engined 21,791 18,005 13,774 57,317 77,189 36,969 28,563 29,393

(iii) Others (CNG,

------N.A. N.A. 5,094 5,979 6,260

LPG, etc.)

8 Ambulances 441 925 2,233 4,025 9,600 13,625 14,315 15,017

9 School buses 491 594 1,025 1,714 6,117 27,046 21,541 24,910

Private service

10 810 2,171 4,622 5,815 9,421 11,163 11,629 12,200

vehicles

11 Trailers 7,075 23,173 60,858 1,67,856 2,84,696 3,70,452 3,84,482 3,96,161

12 Tractors 7,821 24,079 61,088 1,72,578 3,58,556 5,57,622 6,03,632 6,39,235

13 Others 810 1,319 5,040 9,872 29,829 43,610 46,997 56,750

Total 3,11,769 8,04,986 26,40,585 66,07,064 1,69,89,659 2,50,59,549 2,72,70,129 2,93,94,377

Motor vehicles per 618 1,309 3,353 7,186 15,119 21,374 22,916 24,411 lakh of population Number of vehicles 5 6 15 31 71 95 91 98 per km. road length Ambulances per lakh 0.9 1.5 2.8 4.4 8.5 11.6 12 12.5 of Population

Source - Office of the Transport Commissioner, GoM N.A. Not Available * Provisional

Economic Survey of Maharashtra 2016-17

80 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Women Enterpreneurs De-coding skills- based pro-bono Ms. Amrit Rai Business Development Director – India PYXERA Global Ms. Amrit Rai [email protected]

By the middle of this century, • a net profit of Rs. 5 crore or rural and urban populations on India is expected to emerge as the more the basis of ‘poverty line basket5’ world’s third-largest1 economy, The rubrics allowed many truant indicators. The report revealed and the enactment of the 2013 actors to get off lightly. A recent that a quarter of Indians remained CSR law brought India on the report2 released in 2017 shows beneath the poverty line. In cusp of accelerated corporate that 26 percent of CSR budgets absolute numbers, this translated social change. of 305 companies remained to nearly 300 million people. The unspent in 2015-16 – amounting UN, however, defined individuals With the law, it became to Rs. 1.84 billion. One of the beneath the poverty line as those imperative that companies do top three explanations given for unable to spend $1.25 a day on their part to help build an engaged unspent CSR amounts is that most basic food and necessities. Using nation, and take responsibility for corporations have yet to ‘identify this parameter, over 700 million their social actions or lack thereof. their thrust areas/projects’. Indians would be beneath the The caveats of the law, however, poverty line. Subsequently, the UN came with liberal connotations Meanwhile, globally 2015 was raised the minimum purchasing with the ‘spend or explain’ clause. the year ear-marked for the power for people across the globe The CSR Law effective since April completion of the eight to $1.906. 2014 states that; every company Millennium Development Goals shall spend two percent of their (MDGs3). One of the biggest Accelerating What Works average net profits of the visible gaps was that statistics through a Collaborative preceding three financial years, were mapped against 1990 figures, Approach in CSR activities as mentioned in which were perhaps not These grim statistics highlight Schedule VII of the act, if during representative of the actual the need for accelerating targeted any financial year, they fulfil the change between 2000 and 2015. interventions, in order to achieve following criteria: an upward growth trajectory. To Furthermore, India ranked do so, it is increasingly important • a net worth of Rs. 500 135th in the 2013 UN Human to collaborate for innovative crore or more Development Index. The 2011-12 interventions, to negotiate cultural Or Rangarajan4 report had the diversity and to initiative • a turnover of Rs. 1000 crore purchasing power parity averaged positive disruptions. or more at $0.61, while the Tendulkar Or report cited $0.46 per day for both

1 RWL_APAC-IndiaReport-Kornferry.pdf 2 http://ngobox.org/media/India%20CSR%20Outlook-Private%20Companies%20CSR%20Projects%20Report%202017.pdf 3 http://www.undp.org/content/undp/en/home/sdgoverview/mdg_goals.html 4 http://pib.nic.in/newsite/PrintRelease.aspx?relid=108291 5 http://indianexpress.com/article/opinion/columns/the-measure-of-poverty/ 6 http://blogs.worldbank.org/developmenttalk/international-poverty-line-has-just-been-raised-190-day-global-poverty-basically-unchanged-how-even

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 81 Women Enterpreneurs

Among the methodologies of something to someone or • Skills-based pro-bono, refers such participative action is pro- something’. These are distinctly to a purposeful engagement bono – planned, strategic and different, with the former having via collaborative partnerships skilled volunteerism. Individuals more of an equal relationship between public, private and/ work on long-term assignments than the latter. Purposeful or social sectors for the benefit with a mission driven organization partnerships can only happen of the underserved communities. – a local NGO, a social enterprise, when all partners have mutual The main aim behind skills- or a government agency, for respect for one another and are based pro-bono is to deliver example – on a project such as a new open to compromise in order to measurable impacts, employing marketing plan, a technology break deadlocked conversations. an individual’s unique skill-set database, or a strategic roadmap to achieve pre-defined goals. at no cost to the organization that What is the Difference Skills-based pro-bono is would otherwise be inaccessible. between Corporate interactive and encourages Volunteerism and Pro-Bono? definitive and mutually agreed This setting often leads to the cross -upon goals, spurs The most common response pollination of ideas, thoughts and behavioral change and innovative one encounters from corporates ‘borderless’ engagements are a thinking, and creates gen-next is ‘Yes, we engage in pro reality. Purposeful engagement leaders through this immersive -bono’, which refers to across different sectors - namely experience. traditional corporate volunteerism, private, public and social - result in rather than strategic skills based improved collaborative thought. There is a marked difference in pro-bono which creates shared This perpetuates goal-oriented these two approaches. Corporate value. This raises a question - how action in which all partners and volunteerism can be an act of is skills based pro-bono different collaborators commit to bringing ‘giving back’ to society in terms of from commonly understood about the change they envision time and in-kind. It can be teaching corporate volunteerism? in order to create a better an academic subject, painting the served community. Passionate, walls of a community, or building Over the past twenty-five years, committed and cooperative a home in a village for PYXERA Global has partnered thinking that leverages skills based underserved communities. This with dozens of companies on pro-bono catalyse what’s possible. lends one’s time and good intent, pro-bono initiatives, including IBM but not one’s expertise. and its Corporative Service Corps, Interactive and engaged SAP and its Social Sabbatical, collaborations also stimulate the Skills-based pro-bono is investing and many others. right mind-set, allow for proper one’s expert skill-sets with the aim problem definitions and promote of enhancing the work of mission • Corporate volunteerism healthy partnerships. With a focus driven organizations and providing includes any kind of volunteerism on engagement, collaborative them with access to competencies done by an individual desiring partnerships are markedly they would otherwise not have to contribute, in some way, different from traditional acquired. towards the well-being of others development practices which are or the planet. This pursues the more transactional and provide For the corporate teams, lending basic concept of philanthropy less social return on investment. expertise translates into positive and underpins initiatives for impact, fuelled by a passion the next enhancement, which At PYXERA Global we define to make a meaningful contribution is more skills-focused and lends ‘engagement as to do along with to changing the lives of many unique expertise to well-thought someone or something’, whereas local underserved communities. through engagements. traditional development often This experience drives diverse and take the position of doing innovative solutions, and cultivates

82 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest Women Enterpreneurs intellectual comprehension of Talent Innovation, is that “the complex and unique challenges. way such programs develop It produces emotional leadership talent within the understanding that leads to volunteers themselves, as also world-class leaders with the ability the impact they yield for their to think out-of-the-box. non-profit beneficiaries8.”

Today’s Volunteers Are To quote Josh Bersin - an expert Tomorrow’s Leaders on talent development - “building At PYXERA Global we advocate a corps of employees who are the principle of ‘today’s successfully able to lead is the volunteers are tomorrow’s most critical indicator of a leaders’. The participating team corporation’s future performance: of volunteers have the capability If you’re an investor, watching to influence decisions on behalf the CEO is important – but look of their organizations, and in at how they build, develop, and future will be piloting the cause of attract leadership. This is perhaps the most important thing they positive social change. In addition, 9 the benefits of engaging in do .” purposeful skills-based pro-bono activities multiply reputation, enhance brand reputation and enforce positive work cultures, and directly yields economic gains as well.

In a Stanford Social Innovation Review 20137, Amanda MacArthurand Alicia Bonner Ness of PYXERA Global, presented valuable insights on how, “corporations dedicated to social good pay-offs, help retain members of the millennial generations, especially those who value the opportunity to make a difference more than any other benefit”.

There have been many discussions and debates on the benefits of volunteerism, and one of the most deserving mentions, according to the Center for

7 https://ssir.org/articles/entry/skills_based_volunteering_the_new_executive_training_ground 8 https://ssir.org/articles/entry/skills_based_volunteering_the_new_executive_training_ground 9 https://ssir.org/articles/entry/skills_based_volunteering_the_new_executive_training_ground

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 83 News in MEDC Meeting with Urban Co- Operative Bank’s Directors MEDC held meeting with Co- Operative Banks Chairmans and Vice-Chiarmans on 29th June 2017 at Jumshed Guzder Board Room, MEDC Office, Mumbai – 400021.

The Purpose of the meeting was to form a core committee for the planning of “National Conference on Urban Co-Operative Banks 2017”, to resolve and to understand the issues faced by the Co-Operative Banks in these phases. The meeting was presided by Cdr.Dipak Naik, President of MEDC. Meeting briefly discussed about difficulties faced by the Urban Co- Operative Banks in competitive era.

Eminent dignitaries present at the meeting • Cdr. Dipak Naik, President, MEDC • Mrs. Meenal Mohadikar, Vice President, MEDC • Mr. Anil Gachke, Chairman – MEDC Industry Committee • Mr. Chandrakant Sadadekar, Special Invitee • Mr. Satish Marathe, President, Sahakar Bharati • Mr. Kishor D. Kulkarni, Chairman, NKGSB Bank • Mr. Sunil Gaitonde, Vice – Chairman, NKGSB Bank • Mr. Chintamani Nadkarni, MD, NKGSB Bank • Mr. Ajay Jain, Chief General Manager, Saraswat Bank • Mr. Uttam Joshi, Vice Chairman, Thane Bharat Sahakari Ltd. • Mr. Narendrakumar A. Baldota, Chairman, Greater Bank • Mr. Prabhakar T. Paranjpe, Banker

84 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest News in MEDC 13th Dr. D. R. Gadgil Memorial Lecture

Successful completion of 13th Dr. D. R. Gadgil Memorial Lecture On 29th July 2017 at MEDC.

Mr. Suresh Prabhu, Hon’ble Union Railway Minister, Government Of India has deliver the key note on the “INDIA’S TRANSITION TO A NEW ECONOMIC ORDER”. He also spoke about Importance of Contribution from Corporate sector, agriculture in changing the scenario of Economy of the country.

Other eminent speakers on the dais were Cdr. Dipak Naik, President, MEDC, Mrs. Meenal Mohadikar, Vice President, MEDC, Mr. Ashish Kumar Chauhan, CEO & MD, BSE, Dr. Sanjay Belsare, secretary, Water Resource Department, Government Of Maharashtra, Mr. Deelip Kulkarni, Jain Irrigation.

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 85 News in MEDC Special Publication On “WATER”

MEDC has published Special Publication on “Water”. The Book was inaugurated by the hands of Mr. Ashish Kumar Chauhan, CEO & MD of Bombay Stock Exchange. Appreciated by Dr. Sanjay Belsare, Secretary, Water Resource Department, Government Of Maharashtra, Cdr. Dipak Naik, President of MEDC, Mrs. Meenal Mohadikar, Vice President of MEDC, and Mr. Deelip Kulkarni, Jain Irrigation in the Rangswar auditorium, Y. B. Chavan Center on 29th June 2017.

In special publication, a special feature on Israel’s Water Economy & Possibilities of Co-Operation with Maharashtra. Cover stories inclusive of Water For People, Water For Food, Water in MMR, Water Technology, Water Pollution, Water Conservation. The Publication also largely speaks about success stories of different subjects related to water.

86 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest News in MEDC Memorandum Of Understanding (MOU) Signed between Maharashtra Economic Development Council (MEDC) And Bombay Stock Exchange (BSE)

MEDC and BSE have signed an MOU on 29th June 2017 on the day of 13th Dr. D. R. Gadgil Memorial Lecture.

The Purpose of MOU is to share information based on various data such as Consumer Price Index, Center for Monitoring Indian Economy, Consumer Sentiments,Employment Data. MEDC and BSE will be custodian of each others information for various research projects.

In picture from L to R : Mr. Ashish Kumar Chauhan (MD & CEO, BSE), Cdr. Dipak Naik (President, MEDC), Mrs. Meenal Mohadikar (Vice – President, MEDC), Mr. Deelip Kulkarni (President - Agri Food Division and Sustainable Agriculture)

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 87 News in MEDC Workshop and B2B at Sasmira College with the Co- Ordination of Magic Of Mind. The workshop entitled “Mantras for Success”.

Ms. Ananya Prem Nath Mr. S. Venkateswaran Manager - Research & Training Creator & Author MEDC Magic of Mind Power

BLOCK YOUR DATE!!!

FOR

Cdr. Dipak Naik, President and the Governing Board of Maharashtra Economic Development Council request the pleasure of your company for one day Conference.

MEDC is Organising “National Conference On Urban Co-Operative Banks 2017” On 7th October, 2017

Venue : Y. B. Chavan Centre, Nariman Point, Mumbai

88 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest News in MEDC

Govt. of Maharshtra Management College & Research center

Maharashtra Economic Development Council

Presents 8th Annual MSME Conference

on

Cluster Development

Date : Monday, 13th September 2017, From 09.30 am to 6.30 p.m.

Special Address by : • IAS, Development Commissioner (Industries) • Maharashtra Small Scale Industries Development Corporation • Maharashtra Industrial Development Corporation

Maharashtra Economic Development Council, Monthly Economic Digest July & August 2017 89 News in MTDC Partnership to boost tourism in Maharashtra, Airbnb to support ‘Visit Maharashtra 2017’ as alternative accommodation partner

MUMBAI - June 13, 2017- alternative accommodation Tourism & Culture, Government Maharashtra Tourism ink a deal partner, we look forward to of Maharashtra. with Air bnbone of world’s leading working with Airbnb to achieve community - driven hospitality the goals of the Visit Maharashtra “Airbnb and Maharashtra’s companies, to promote affordable campaign. In Airbnb, we have connection goes back to our accommodation and genuine local found a like-minded partner who roots. The first ever guest hosted experiences to boost tourism in is keen to collaborate in growing by Airbnb’s co-founders came the state. tourism in Maharashtra. Through from Pune in Maharashtra. In the this partnership we aim to last few years, that connection has Airbnb and the Government of create at least 50,000 micro- continued to strengthen through Maharashtra will come together entrepreneurs in the hospitality the State’s growth as a high to boost tourism in the state by sector in the next five years, build priority market. It is extremely utilizingAirbnb’s global lodging the homestay ecosystem in the heartening to see the State platform. Airbnb would assist State and improve hospitality government’s vision to develop home stays across Maharashtra standards of homestay owners. and promote tourism in the State. by bringing them onto its global We would also jointly promote We are honoured and delighted platform. Airbnb would also destinations across 8-10 districts to partner with the Department help provide information to of Maharashtra in the coming of Tourism and MTDC in this its users on less-explored but year,” said Shri. Jaykumar Rawal, journey,” said Amanpreet Bajaj, high potential destinations in Honourable Minister of Tourism, Country Manager – India, Airbnb. Maharashtra for a memorable Government of Maharashtra. Today’s announcement builds travel experience. upon Airbnb’s focused efforts “We are excited about working to enhance its presence in India, “Tourism is a key pillar for the together to promote Maharashtra’s showcasing the company’s intent State of Maharashtra and we tourism potential through joint to collaborate with both citizens are committed to increasing the promotion of Maharashtra and the government to contribute number of global travellers to destinations, and bringing an to the growth of a booming home the State who could benefit our ever-increasing number of sharing ecosystem, which holds local communities. In a bid to homestays and other unique immense promise for tourists – attract foreign tourists, we accommodation options to domestic or international. have announced 2017 as “Visit Maharashtra,” said Shri. Nitin Maharashtra” year. As our Gadre, Principal Secretary, Fast facts on Airbnb in Maharashtra - 3,500 homes and unique accommodations

- In March 2017 Mumbai launched India’s first Home Sharing Club

90 July & August 2017 Maharashtra Economic Development Council, Monthly Economic Digest 2MaharashtraMay 2017 Economic Development Council,Maharashtra Monthly Economic Economic Development Digest Council,July Monthly & August Economic 2017 Digest91

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