Maharashtra tables bill to hike MIDC borrowing limit to Rs 6,000 crore
Mumbai, June 24
Maharashtra Industries Minister Uday Samant on Wednesday presented a Bill in the State Legislative Assembly to drastically expand the borrowing capacity of the Maharashtra Industrial Development Corporation, officials said.
The proposed amendment to the Maharashtra Industrial Development Act, 1961, lifts the corporation's decades-old borrowing cap from a meagre Rs 75 crore to a massive Rs 6,000 crore.
The Bill is expected to come up for discussion on Thursday in the state Assembly.
The statutory ceiling on the maximum amount the MIDC could hold on loan at any single point had remained frozen for more than half a century.
Originally fixed in 1975, the Rs 75 crore limit has increasingly acted as a bureaucratic chokehold on the state's industrial planning, severely lagging behind modern real estate values and global development scales.
According to the Bill's statement of objects and reasons, the state's rapid economic evolution necessitated an immediate overhaul of Section 22 of the 1961 Act, which empowers the corporation to raise funds via open markets, commercial banks, and financial institutions.
According to the Bill, modern industrial planning requires capital-intensive infrastructure that the outdated cap could no longer support.
Increasing industrial investment in the state requires additional financial resources to develop new industrial projects and infrastructure facilities by the Corporation.
Industries department sources said the skyrocketing costs of land acquisition has been as a primary driver for the amendment.
Under the stringent provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, the MIDC is legally mandated to pay substantial compensation packages to local landowners and farmers.
The state's aggressive pursuit of massive infrastructure corridors, next-generation Special Economic Zones (SEZs), and flagship connectivity ventures -- such as the rapid land acquisition underway for the Chhatrapati Sambhaji Raje International Airport in Purandar -- requires massive upfront financial liquidity.
With the passage of this Bill, the MIDC is set to unlock immediate access to critical fund structures, including a government-backed, Rs 6,000-crore loan facility via the Housing and Urban Development Corporation (HUDCO).
The department sources said thar this 80-fold expansion in leverage capacity will eliminate project delays, ensure swift and friction-free payouts to displaced landowners, and fortify Maharashtra's positioning as India's premier destination for foreign direct investment (FDI).
— IANS
Reader Comments
I'm glad they are increasing the limit because farmers need proper compensation under the Land Acquisition Act. Too often people are displaced without fair payment. But let's be honest - will this actually speed up payouts or just create more debt? MIDC needs to be accountable.
From Rs 75 crore to Rs 6,000 crore in one stroke can you imagine the inflation? 😅 But seriously, if this means faster industrial development and jobs for our youth, it's a bold needed step. Just hope the bureaucracy doesn't eat up half the funds in paperwork. Maharashtra needs this boost to compete with Gujarat and Karnataka.
This is classic big-government thinking - just borrow more. What about improving MIDC's efficiency first? Land acquisition delays aren't just about money but also about poor planning and lack of transparency. More debt without reform is risky. Let's see how HUDCO loan is actually utilised. Only time will tell.
As someone who works in industrial development, this is long overdue. The old limit was absurd in today's economy - barely enough to acquire a few acres near Mumbai. The Purandar airport project alone needs thousands of crores for land. This Bill shows the government understands ground realities. Good move by Uday Samant! 🏭
Hope this doesn't become another burden on taxpayers. MIDC already has significant assets but the management track record is mixed. If the money goes into actual infrastructure and not just consultant fees, it could be transformative. Also need to ensure displaced families get rehab first, not just compensation.
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