Maharashtra Industries Minister Uday Samant introduced a Bill in the State Legislative Assembly to significantly increase the borrowing limit of the Maharashtra Industrial Development Corporation (MIDC). The proposed amendment to the Maharashtra Industrial Development Act, 1961, aims to raise the corporation’s borrowing cap from Rs 75 crore to Rs 6,000 crore. This move is expected to be discussed in the state Assembly on Thursday.
The current borrowing limit for MIDC, set at Rs 75 crore since 1975, has hindered the state’s industrial growth due to outdated constraints. The amendment seeks to address the bureaucratic restrictions that have impeded modern industrial planning and development. The Bill highlights the need for capital-intensive infrastructure to support industrial growth in Maharashtra.
The revision of Section 22 of the 1961 Act is essential to enable MIDC to secure funds from various sources like open markets, commercial banks, and financial institutions. The amendment is crucial to meet the financial requirements for new industrial projects and infrastructure development in the state. The escalating costs of land acquisition have been a key factor driving the need for this change.
By unlocking access to a Rs 6,000-crore loan facility through the Housing and Urban Development Corporation (HUDCO), MIDC aims to expedite project implementation and ensure timely compensation to affected landowners. This substantial increase in borrowing capacity is intended to support Maharashtra’s attractiveness for foreign direct investment (FDI) and bolster its infrastructure development initiatives.
