PROJECT REPORT

ON

“MIDC SERVICES”

PROJECT UNDERTAKEN AT

CHARTERED ACCOUNTANT. AT PUNE

DEPARTMENT : MIDC
SUBMITTED BY

ANMOL SATYAWAN YELMATE

UNDER THE GUIDANCES OF

PROF. RAKESH BHATI

SUBMITTED TO

“SAVITRIBAI PHULE PUNE UNIVERSITY”

IN PARTIALLY FULFULMENT OF THE REQUIRMENT FOR THE AWARD OF THE DEGREE
OF MASTER OF BUSINESS ADMINISTRATION (MBA)
THROUGH

1
 INDEX

SR.no PARTICULAR PG.NO

1 EXCUTIVE SUMMARY 5

2 ORGANIZATION PROFILE 13

3 OUTLINE OF THE 22
PROBLEM/TASK
UNDERTAKEN

4 RESEARCH METHOLOGY 30

5 LEARNING OF THE STUDENT 45

THROUGH THE PROJECT

6 FINDING 49

7 CONCLUSION 52

8 REFERENCE 54

2
 DECLARATION

This is to declare that, Anmol Satyawan Yelmate of IBMR, Chinchwad station (2022-2024)
have given original data and information to the best of my knowledge in the project report
title “To Study Capital Management in MIDC” Under the guidance of Dr. Rakesh Bhati and
that, no part of this information has been used for any other assignment but the partial
fulfillment of the requirement toward the completion of the said course.

I have prepared this report independent and I have gathered all the relevant information
personally. I have prepared this project for M.B.A. for the year 2022-2024

I also agree in principle not to share the vital information with any other person outside the
organization and will not submit the project report to any other university.

Place Pune Anmol Satyawan Yelmate

Date / / M.B.A. (Finance)

3
 ACKNOWLEDGEMENT

The Success of any project report depend largely on the encouragement and guidelines of
many people. I take this opportunity to express my gratitude to the people who have been
instrumental in the successful completion of the project. I would like extend my sincere
thanks to all of them.

The Following report on “The Study of Capital Management in MIDC” is and honest and
sincere effort on my part to put into practice the concept learned in the classroom.

His Project report would not have been possible without the guidance and support of empty
guide, Dr. Rakesh Bhati who with her technical know-how and experience guided me from
the very start. It is by Virtue of her valuable suggestion and mentoring that this project
report has materialized into concretion.

Anmol yelmate

4
EXCUTIVE SUMMARY

5
 Executive training is nothing but a on the job training in these sessions we have to perform
the actual job that we are learn in the book, We have to implement the knowledge in the
job. Executive training gives the exposes us for implication of theoretical knowledge into
actual practical like work under pressure, perceptions of customer & customer satisfaction.
It is way to understand the actual market for the company. Executive training gives us an
opportunity to develop our skills, our personality.
Maharashtra Industrial Development Corporation (MIDC) allots plots to the
companies/firms for setting up their industrial units in the designated industrial areas.
However, sometime due to financial/technical difficulties plot holder are not able run their
industry and require to transfer the plot and other assets either to the third party or their
subsidiary or sister company for the furtherance of their business interest or changes of
business strategy. MIDC sets transfer process of industrial plots of leasehold properties in
Maharashtra.
Over a period of time the MIDC has revised its transfer guidelines few times keeping in view
the main objective of MIDC regarding utilization of plots for the business activity which
result in the economic growth of the country and also generates employment.
The Main Objectives of this document is to provide salient feature of the various transfer
guidelines issued by the MIDC during last 25 year for transfer process of industrial plots in
Maharashtra.
MIDC Circular No. 2633 dated 12 may 1998 laying transfer Guidelines
The MIDC formulated and issued detailed transfer guidelines to facilities transfer process of
industrial plots. This Circular categorized the transfer process of MIDC plots in 2 Broad
categories.

Formal Transfer :

Standard ( Minimum) Transfer fee*/no fees is playable for transfer plot .

Non-Formal Transfer :
Transfer fee i.e . 10% / 30% of the differential premium** is payable as per MIDC policy
for transfer of plot.

6
INTRODUCTION

7
Industry scenario

Maharashtra Industry Development Corporation (MIDC) is a project of the government of

Maharashtra state in India, and is the leading corporation of Maharashtra. It provides
businesses with infrastructure such as land (open plot or built-up space), road, water supply,
drainage facilities and street light.
After the formation of Maharashtra state on May 1, 1960, the Government of Maharashtra
constituted a “Board of Industry Development” (BID) on October 1, 1960, under the
chairmanship of Shri. S. G. Barve, I. C. S. The various committees recommendation received
in the industries department were taken up for implementation and per the Borkar
Committee’s recommendation, development of Ulhas Valley Water Supply was entrusted to
the Board of Industrial Development (BID). The BID framed the legislation and it was
introduced before the state legislation and passed in the form of “Maharashtra Industrial
Act” which gave birth to MIDC, as a separate corporate on August 1, 1962. A small
Ceremony at wagle Estate Thane, Under the Chairmanship of the Chief Minister Shri Y.B.
Chavan, marked the birthday of MIDC on August 1,1962

They key historical policy decision taken by MIDC Certainly changed the socioeconomic
scenario of the state as its activities spread in the interior. The important policy decision of
setting up “independent filtered, potable water supply system of adequate capacity” as
essential infrastructure for industry.
It established the population base near the industrial areas. The strategic wise
decision taken simultaneously to provide water supply to nearby domestic population
from the capabilities created by MIDC of their own water supply system resulted in
phenomenal urban growth in the nereby small towns and villages.
The growth of Kalyan complex and pimpri-Chinchwad are result of this key policy decision
taken by MIDC. Up to date 229 industrial areas are development by MIDC in state of
Maharashtra on 53120 Hectors of land. With the experienced of 45 year MIDC observed
that certain industries are required to be provide some specialized facilities . For the Growth
of such industries and according specialized parks/industries culsters are development with
specialized infrastructure facilities.
In this way IT & BT Park, Wine Park, Textile Park, Chemical Zones, Food Parks, Leather Park,
Floriculture Park and Electronic Zone etc. are developed by MIDC. Considering the
international standard facilities required to attract multination companies five star
industries area are developed by MIDC at 9 location in the state of Maharashtra.
Considering the export potentional of the various product specifically delineated duty free
enclave which is to be deemed to be foreign territory for the purpose of trade operation
and duties and traffics special economic zone are being developed by MIDC to provide

8
hassle free environment for exported. Maharashtra got overwhelming 74 special Economic
Zone approval from the government of India which is leading at No.1 position compare to
other states in India.
The planned and systematic industrial development in the state of Maharashtra has
continuously placed Maharashtra at No.1 position in India for the highest productivity
economics performance, business efficiency, government efficiency, infrastructure and
overall competitiveness.
As per the world competitiveness Report 2006 Maharashtra ranks 37, ahead of south-
korea, south Africa, Philippines, Greece, Brazil, Itlay, Russia & Indinesia. In the Maharashtra
State MIDC has demarcated 57650 No. of plot and allotted 48701 no. of plot to the
entrepreneurs. There are total 28918 No. of industries in production MIDC has provided the
water supply scheme of total 2240.83 MLD capacity and water consumption is 1314.73 MLD
in the MIDC areas in the state of Maharashtra. MIDC has provided the water supply
pipelines of 3238.60 K. M. lengths to cater the water supply demand of the industries in
Maharashtra. Total roads of 2422.82 K. M. lengths are constructed by MIDC for provided
good quality approach to the industries. The development expenditure of 3096.75 Crores is
incurred for the various infrastructure works by MIDC. The annual revenue generated from
the water supply is Rs.432.00 Crores.

9
 Capital Management in MIDC
Capital Management in the context of a MIDC (Midsize Industrial Development
Corporation) primarily refers to the financial strategies and practice aimed at efficiently
utilizing and managing the financial resources and assets of the corporation. Here are some
financial term related to capital management in a MIDC:
1. Capital Budgeting

The process of planning and allocating funds for long-term investment in infrastructure
development, facility expansion, and other project within the MIDC.

2. Debt Financing

The use of borrowed fund, such as loan or bound to finance capital project or other
activities within the MIDC.

3. Equity Financing

Raising capital by selling ownership share (equity) in the MIDC to investor, which may
involve issuing stock or other equity instruments.

4. Working Capital

The capital available for day-to-day operational expenses, calculated as current assets
minus current liabilities.

5. Cash Flow Management

Monitoring and managing the cash inflow and outflow of the MIDC to ensure that it has
adequate liquidity to meet its financial obligations.

6. Leverage Ratios

Metrics that assess the MIDC’s reliance on debt to finance its operation such as debt-to-
equity ratio and debt service coverage ratio.

7. Investment Analysis

Evaluating potential investment or project in term of their financial viability, including

assessing their return on investment (ROI) and net present value (NPV).

10
8. Risk Management

Strategies for identifying mitigating, and managing financial risk, such as interest rate risk,
currency risk, and market risk.

9. Financial Reporting

The process of preparing and presenting financial statement, including balance sheets,
income statement, and cash flow statement, in accordance with accounting standards.
10. Regulatory Compliance

Ensuring that the MIDC adheres to financial regulations and compliance requirements,
including tax regulations, financial reporting standards, and industry-specific regulations.

11. Asset Management

Efficiently managing the MIDC’s assets, such as industrial properties, to optimize their
utilization and generate returns.

12. Financial Performance Metrics

Key performance indicators (KPIs) used to measure and evaluate the financial
performance of the MIDC, including profitability ratios (e.g., ROI, ROE), Liquidity ratios
(e.g., current ratio), and solvency ratios.

13. Capital structure

The Combination of debt and equity used to finance the MIDC’s activities. It involves
determining the right mix of debt and equity to optimize the cost of capital.

14. Capital Allocation

The process of deciding how to allocate financial resource among different projects,
divisions, or investment to achieve strategic objectives.
15. Dividends Policy

Decisions related to distributing profits to shareholder in the form of dividends or

retaining earnings within the MIDC for reinvestment.

11
ORGANIZATION PROFILE

12
1. Economic sectors

MIDC Has develop specialized parks based on sector such as:

 Automobiles and Auto Components

 Biotechnology
 Consumer
 Chemical
 Engineering
 Electronic Hardware
 Information Technology
 Petrochemical
 Pharmaceuticals
 Transportation
 Textile
 Wine

1.1 Location

MIDC areas are spread over the state of Maharashtra. The MIDC started in 1962 with Wagle
estate. Thane as its first industrial Areas.

MIDC’s major Industries Areas are at:

 TTC (Trans Thans Creek) near Thane & Navi Mumbai

 Pimpri-Chinchwad near pune
 Butibori near Nagar
 Sangli-miraj
 Latur
 Waluj near Aurangabad
 Satpur Ambad near Nashik

1.2 MIDC’s major IT parks are at:

 Airoli Knowledge parks, Navi Mumbai

 Millennium Business parks, Navi Mumbai
 Samruddhi Venture parks, Mumbai
 Rajiv Gandhi Infotech park, Hinjawadi, Pune
 Sangli Infotech park, Sangli
 Latur Infotech park, Latur

13
1.3 MIDC Wine Parks:

 Krishna Valley Wine parks, palus near Sangli

 Wine park, Nashik

2. Organization Structure

2.1 Regional location

The Properties like plot, built-up shed and built-up warehouses are leased out by MIDC for
industries, commercial or residential purpose. The allotment can be done at regional offices
located at 12 location across the state:
 Mumbai Region
 Thane (rothane@midcindia.org)
 Mahape (romahape@midcindia.org)
 Mahad (romanhad@midcindia.org)
 Ratnagiri (roratnagiri@midcindia.org)

 Pune Region
The Region leads in the number of industrial units, investments and employment
opportunities among all MIDC areas in Maharashtra, the state Economic survey
2022-23 presented by deputy chief minister Devendra Fadnavis on Wednesday
revealed.
 Chakan MIDC
 Bhosari MIDC
 Ranjangoan MIDC
 Pune MIDC
 Shirwal MIDC
 Pimpri-Chinchwad MIDC

 Nashik Region
 Nashik MIDC
 Dhule MIDC
 Jalgaon MIDC

14
  Sangli Region
 Sangli-Miraj
 Solapur
 Krishna valley Wine Park, Palus
 Islampur
 Pandharpur

 Aurangabad Region
 Aurangabad
 Jalna

 Latur
Region
 Latur
 Osmanabad

 Nagpur Region
 Nagpur
 Amravati

2.2 Activities
The MIDC has been declared as an agent of the state government for carrying out activities
within the framework of the MIDC Act and MIDC rules. These activities are in three broad
categories:

 Acquisition and disposal of land

 Provision of infrastructure facilities.
 Providing services—supply of potable water from MIDC’s own water treatment
plants, Maintaining roads, street light, Drainages lines ect.

2.3 Achievements

 Bulit 225 indutries complexes with 1,300,000 acres (5,300 km*Km) of land

15
  Developed specialized parks for different industrial sector, including IT, BT, Wine
(Grape processing) parks, Silver Zones, gems and jewellery, textiles, leather,
chemical industry, electronics, food processing, floriculture etc.
 Elaborated network of industries & domestic water supply, total quantity supplied
1285 MLD.

2.4 Proposed Pune International Airport

A brand new Pune international Airport for Pune metropolitan region has been on the
horizon for a long time, and the Government of Maharashtra has entrusted the
responsibility to MIDC for executing the Pune international Airport project. The Airport
would replace the existing Pune Airport . The Current areas under consideration is the areas
between chakan and Rajgurunagar, namely around the village of chandus and Shiroli both
situated at a distance of 40km from Pune along the Pune to Nashik National highway (NH-
50) . MIDC is conducting survey and completing other formalities to get the required
permission to start executing the project.

16
 OBJECTIVE OF THE STUDY

The term “MIDC DEPARTMENT” Typically refers to a professional firm that provides various
services related to Maharashtra industrial Development Corporation (MIDC) or similar
industrial development organization in the state of Maharashtra, India. The work of an
MIDC Department can be diverse and may encompass a range of services tailored to the
need of businesses and industries looking to establish or expand their operation within
MIDC industries estate and zone. Here are some common tasks and responsibility
associated with the work of an MIDC Department:

1. Grasp how MIDC strategically allocates funds to support industrial growth.

2. Understand the methods MIDC uses to minimize financial risks in its investments.

3. Explore how MIDC's financial decisions contribute to job creation in the region.

4. Learn about the budgeting process at MIDC and how it aligns with development
goals.

5. Investigate successful public-private partnerships undertaken by MIDC for project

funding.

17
6. Analyze the social and economic impacts of MIDC's capital management decisions on
local communities.

7. Examine specific environmental sustainability initiatives integrated into MIDC's

financial strategies.

8. Understand the role of government policies in shaping MIDC's financial decisions.

9. Explore how MIDC attracts businesses through effective capital management.

10. Gain insights into the long-term vision of MIDC and how it guides capital allocation.

11. Learn about the financial efficiency measures employed by MIDC in infrastructure
projects.

12. Understand the significance of MIDC's risk management practices for financial
stability.
13. Explore the ways MIDC supports the development of industrial zones through capital
investments.

14. Investigate how MIDC balances economic growth with environmental responsibility.

15. Examine the impact of capital management on employment opportunities in MIDC

regions.

16. Understand the collaborative efforts of MIDC with public and private entities for
mutual benefit.

17. Explore how MIDC's financial decisions align with overall goals of industrial
and economic development.

18. Analyze the socio-economic implications of MIDC's capital allocation on local

communities.

18
19. Understand the budgetary considerations for maintaining a business-friendly
environment.

20. Explore the relationship between government policies and MIDC's financial
strategies.

21. Gain insights into the measures MIDC takes to attract and retain businesses in its
regions.

22. Learn about the incentives and programs offered by MIDC to promote industrial
growth.

23. Understand the importance of community engagement in MIDC's capital

management decisions.

24. Explore the role of technology and innovation in MIDC's financial strategies.
25. Investigate the ways MIDC fosters sustainable practices in its capital allocation.

26. Understand how MIDC adapts its financial strategies to changing economic
conditions.

27. Explore the international collaborations and partnerships that influence MIDC's
capital management.

28. Learn about MIDC's efforts to ensure financial inclusivity in its development
initiatives.

29. Gain insights into the role of entrepreneurship and small businesses in MIDC's capital
management.

30. Understand the cultural and social considerations in MIDC's financial decisions for
inclusive devel.

19
Outline of the problem /task under taken

20
 Sub –letting of industrial premises in Maharashtra

Subletting of MIDC property is a general practice in Maharashtra in which a lessee rents out
the portion of the lease property to sub lessee for a specific period of time, subject to MIDC
NOC and payment of subletting fees proportionate to the area being leased out.
Subletting is done to promotes industrialization, as the aspiring industrialist does not have
surplus capital to invest in purchasing a land, form utmost utilization of the available
resource with MIDC and get additional income for developing industrial infrastructure
throughout Maharashtra.
There is set a process for getting MIDC NOC. To get complete insight on the subletting
process , required document from a lessee and sub lessee, calculation of subletting fees,
subletting duration,

21
 1. Sub-letting process of MIDC plot

1.1 Meaning
Sub-letting means when owner of the plots (Licensor) wants to give his plots or portion
of his plot (Built up or open lands) on leaves & license basis to another person (Licensee)
for carrying out his activity.
1.2 Criteria for granting the sub-letting permission by MIDC

 The plot owner should have consumed minimum stipulated FSI and obtained the
B.C.C. as per MIDC norms.
 Sub-letting permission can be given by MIDC for the same activity only. Example-
Industrial to Industrial, Commercial to Commercial.
 Sub-letting permission can be granted by MIDC up to 1-10 year at the request of
licensor.
 MIDC charges Sub-letting charges.

1. Sub-letting Charges

 Sub-letting charges are 3% of MIDC land rate for Industrial Activity and 0.5% for IT &
ITES Activity for per annum.

 Sub-letting charges to be paid in advance by licensor for the period sub-letting

permission is applied.

 The MIDC recover the enhanced sub-letting charges from the licensor if there is an
upward revision of rates.

 Example for calculation of sub-letting charges by MIDC:-

Sub-letting Charges = Area Subleted *3% of MIDC Rate

= Sub-letting charges per annum

22
 2. Document to be submitted to MIDC for obtaining Sub-letting
permission
Licensor Licensee
Request Letter to MIDC Request Letter to MIDC

MIDC online Application Form Board Resolution (Pvt.Ltd.co)

Board Resolution (For Pvt Ltd/Ltd co) MOA & AOA ( For Pvt Ltd/Ltd co) or
Partnership Deed (If Partnership Firm)

Building Completion Certificate Detailed Project Report

Copy of Final Lease

Proposed Sub-letting plan

Upto date paid water & Electricity bill

Upto date paid lease rent receipt

NOC From Financial Institution if property is

mortgage.

From A & B

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 3. Flow chart for Sub-letting of plot

Scrutiny
Submission of Application to of Application by MIDC
MIDC
Issuance of
Demand letter
by MIDC

n & Registration of leave & Licence Agreement

Issuance of Sub- letting Order by MIDC
Payment of
Sub-letting
Charges

Submission
of copy of
leaves &
Licence

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 4. DEVELOPMENT OF MIDC PLOTS BY UTILIZATION OF
MINIMUM 40% FSI
Maharashtra Industries Development Corporation (MIDC) is a lead entity for development
of industrial Area in Maharashtra. With the aim of developing industrial areas the MIDC has
been acquiring land from the farmers, developing infrastructure and allot industrial plots to
the firms/companies to carry out their manufacturing/industrial activities. However, it was
noticed by the MIDC that the plots allotted to the firms/companies were not being fully
utilized. Some plot holder carried out minimum construction as per MIDC policy and obtain
the BCC to avoid payment of penalty to MIDC but did not either utilized the balanced area
or commenced the production. To stop this practice of land hoarding. The MIDC has
decided to raise the FSI limit for minimum utilization and added a clause of production to
improve availability of plot for the new industries. This articles highlight the FSI norms for
industries plots.
According to earlier guidelines of the MIDC the firms/companies were required to use
minimum 10% of the FSI which was subsequently revised to 20% un year 2012 and then to
40% in year 2019. The main objective of this document is to bring out the salient feature of
various MIDC circulars on FSI norms for industries plots which has been timely amended to
develop manufacturing and service industries in Maharashtra.

MIDC Circulars No. 152 dated 17 April 2012 for revision of minimum utilization from 10 to
20% of FSI
The Minimum utilization of FSI was enhanced from 10% to 20%. The unit holder have to
develop the plot and utilize minimum 20% FSI within stipulated development period. If plot
holder is unable to utilized minimum 20% FSI within the stipulated time period then he is
liable to pay the time extension charges as per policy until utilization of 20% FSI and
commencement of product.
If the construction is not done as per approved plan or if the unit has not gone into
production after utilizing of minimum 20% FSI, then he is liable to pay extension charges as
per policy till construction is done as per the approved plan and units goes into production.
While applying for new allotment of plot phase wise development should be clearly
mentioned in the project report which must include utilization of 20% FSI in the First phase.
Extension charges as per policy should be payable if the unit has not gone into production
after utilising minimum 20% FSI and water charges should be payable 1.5 times of the
prevailing rates.
If the construction is of multi-storey building as per the project report submitted for
allotment of plot, and the plot holder completed 20% construction but it is not possible to
go into production until the construction of above floors is done, in such case extension
charges are applicable till the construction is completed and until has gone into production.

25
If the part BCC is issued in that case extension charges are applicable till the construction is
completed as per approved plan and BCC is issued, Final lease will be executed only after
construction is completed as per project report.
This circular is also applicable for the cases where plans for more than 20% construction is
approved but still BCC is not obtained and production is not started.
This rule of minimum 20% construction is not applicable to industries like Fabrication, Dal
Mill, Pipe Industries etc. where more open space is required for which the approval of CEO
is taken, But the units holder must complete the construction as per project report and
start production in stipulated time period.
Those plot holder who have obtained the part BCC will be charged water charges 1.5 times
of the prevailing rates till the time they obtain the minimum 20% FSI and start production.

26
 5. SWOT ANALYSIS

Strength -:

We have a public private partnership which is in between MIDC

First mover advantage which no more one have this kind of collaboration
First mover advantage

Weakness -:
Awareness is very less in MIDC areas
Relationship management is very poor of the employees of the MIDC

Opportunity -:
Potential in the print media
Very big market and the competitor is very less

Threats -:
Existing Competitors
Me too brand like MIDC

27
 Research Methodology

Financial Department Service offered by MIDC

1. Project Financing

MIDC Help industrial project secure financing through various financial institution and
banks. They can assist in preparing project reports, Financial projections, and business plan
required for obtaining loan loans of financial assistance.

2. Subsidy and Incentive Schemes

MIDC can provide information and assistance regarding government subsidies,
incentives, and grants available for industries. These may include incentive for export-
oriented units, technology up-gradation, and other state or central government schemes.

3. Investment promotion
MIDC work forward promoting investments in Maharashtra. They can provide
potential investor with information about various investment opportunities, project
feasibility, and potential returns on investment in the state.

4. Industrial Finance Department

MIDC offers financial department services to industrial to optimize their financial

operation. This includes guidance on managing working capital, optimizing costs, and
improving overall financial performance.

5. Export and Import Finance

MIDC can help business with export and import finance, including export credit, letters
of credit, and other international trade financing service.

6. Investor Facilitation
MIDC Facilities interaction between businesses and financial institution, making it easier
for investor to secure loans, subsidies, and other financial assistance.

7. Compliance and regulatory Guidance

28
 MIDC can provide information and guidance on compliance with financial and regulatory
requirement, including taxation, customs, and other financial regulation application to
businesses operating in Maharashtra.

8. Customized Financial Solution

MIDC provide tailor-made financial solution to meet the specific needs of different
industrial projects. This can include assistance in preparing financial institution, and helping
with negotiation.

9. Infrastructure Development

In addition to financial service, MIDC also focuses on infrastructure development. They

develop industrial parks, provide utilities, and create a conductive environment for
industries.

10. Financial Assistance

MIDC provides financial assistance to industries in Maharashtra in the form of loan,
grants and subsidies. This financial aid is often directed toward specific sector or for
promoting industrial growth in certain regions.

11. Project Planning

MIDC assists industrial project in securing the necessary funds for their establishment
and expansion. This includes helping companies identify potential source of financing, such
as bank, financial institution, or government schemes.

12. Subsidies and Incentives

MIDC administers various government schemes and incentives designed to attracted and
support industries. These may include tax incentive, subsidies on land acquisition, and
financial support for infrastructure development.

13. Vendor Development Programs

MIDC Facilities vendor development program that aim to help small and medium-sized
enterprises (SMEs) by connecting them with larger industries for financial and technical
support.

29
 14. Financial Counseling

MIDC offers financial counseling to industrialists, helping them understand their

financial requirement, options for raising capital, and structuring their finances for
sustainable growth.
15. Loan Syndication
MIDC can assists in loan syndication, where it help business secure loans from multiple
financial institution, reducing the risk for individual lender and potentially improving loan
terms.

16. Export Promotion

For industries involved in export activities, MIDC may provide guidance and support in
assessing export finance and navigating international trade regulation.

17. Investment promotion

MIDC work to attract domestic and foreign investment into the state of Maharashtra.
They may help connect potential investor with financial institution and provides information
on investment opportunities.

18. Infrastructure Development Financing

MIDC plays a key role in the development of industries infrastructure, including roads,
water supply, electricity, and more. It often secure funding for such projects, which benefit
industries located in the region.

19. Monitoring and Compliance

The Corporation also monitors the financing health and compliance of industries within
its jurisdiction to ensure that they are meeting their financing obligation and utilization
subsidies and incentives appropriately.

30
 Role of MIDC
MIDC plays a pivotal role in the development of industrial infrastructure in Maharashtra.
It acquires land, development industrial estates, provides utilities, and facilities various
permission for industries to set up and operate in the state.

Financial Work in MIDC

MIDC carries out various financial activities related to its industrial development projects.
This includes budgeting, financial planning, fund allocation, revenue generation, and
management of financial resources.

Financial Department Role

A financial department working with MIDC could have several responsibilities, which may
includes -

 Budgeting - Creating and managing budget for MIDC’s various project and activities.
This involves estimating expenses, revenue projection, and ensuring that project stay
within budget.
 Fund Management - Overseeing the allocation of fund for different industrial
project. This might involve managing loans, grant, and investments.
 Financial Analysis - Conducting financial analysis and providing insight to MIDC
management. This includes financial forecasting, cost-benefits analysis, and risk
assessment.
 Revenue Generation - Developing strategies for revenue generation, which might
include leasing of industrial plots, charging fees for service, and exploring other
financial opportunities.
 Compliance and reporting - Ensuring that MIDC complies with financial regulations
and reporting requirement. This includes tax compliance, auditing, and financial
reporting.
 Investment Management - Managing MIDC’s Investment to ensure they generate
returns and meet the organization’s financial goals.
 Advisory Services - Providing financial advice and recommendation to MIDC’s
management to support their decision-making processes.
 Risk Management - Identifying and mitigating financial risk associated with MIDC’s
project and operations.
 Qualification and Skill - Financial Department working with MIDC are typically
expected to have a background in finance, accounting, or a related field. They
should

31
 possess strong analytical and problem-solving skill, financial modeling expertise, and
an understanding of government financial regulation.
 Collaboration : Financial Department in MIDC often collaborate with other
department and professionals such as engineers, project managers, legal
experts, and government officials to ensure that financial considerations align
with the organization broader objectives.
 Importance - Effectives financial management is crucial for MIDC as it ensure the
successful execution of industrial development, and the overall economic growth of
the state.

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 DOCUMENT
1. SELLER PLOT
Description for selling a plot

 MIDC has issued certain guidelines for reseals of MIDC plot, industrial galas,
industrial sheds, etc.
 As per MIDC norms, after successful completion of the deal between buyer and
seller, MIDC accept the transfer application only if there is minimum 40%
construction and building completion certificate and the plot has been utilized for
intended industrial use.
1.1 Seller Document
 Request letter to MIDC
 Board Resolution (if pvt. Ltd.)
 NO Dues certificate/latest paid water bill
 Up to date lease rent receipt
 Latest paid property tax
 NO Encroachment certificate
 NOC from Labour commissioner
 NOC from Financial Institution (if property mortgaged)
 Online application for transfer of leasehold right
 From “A” & “B”
1.2 Buyer Document
 Request letter to MIDC
 Board Resolution (if Pvt. Ltd)
 MIDC Application form
 MOA (if Pvt. Ltd) / Partnership deal (if partnership firm)
 C.A. certificate (if Pvt. Ltd)
 Project report.

2. BUY A PLOT
Description for buying a plot

 Maharashtra is one of the best destination for setting up any industry because of the
friendly policy of the government of Maharashtra besides many other favorable
factors. So we would suggest Maharashtra industrial development corporation
(MIDC) land for setting up a factory or IT park because of ease of business and
simplifies MIDC rule to obtain land and go in production for 95 year lease on certain
terms & condition which are stipulated in the lease deed.
 If one land requirement is not very large and its project falls under medium or
small scale, then one should set up industry only on MIDC land because of the

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availability

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 of infrastructure, water, power, labour, CETP, Good connectivity, etc. MIDC also
provides various benefits to industries under Maharashtra Industrial policy. For
Industrial units falling under the red category (small, medium or large) we only
recommend MIDC land as it is easy to get all kinds of permits and licenses. MIDC
land is bit expensive, but keeping in view the overall benefits, Infrastructure,
facilities, etc. Available, MIDC land always outweighs the freehold land for setting up
any industry.
 The allotment of land in MIDC for industrial use is being done through a direct
online application. Sometimes MIDC resorts to auction, where availability of plot is
less as compared to the demand. Commercial and residential plots in MIDC are
normally allotted through auction only.
 While submitting the application for allotment of an industrial plot in MIDC, the
proposal containing the following document is to be submitted to MIDC:
 Request letter to MIDC on letterhead
 Online application
 White application form duly filled
 Detailed project report
 Copy of MOA (if Pvt. Ltd) / Registered partnership Deed (if Partnership firm)
 A. Certificate for shareholding (if Pvt. Ltd)
 Board resolution (If Pvt. Ltd)
 Block plan of proposed utilization of plot
 Demand draft toward processing fees.
 MIDC after scrutiny of the proposal issues a letter to the applicant to present before
the land allotment committee (LAC) meeting.
 The land allotment committee check-up the project viability and according takes
decision for allotment of plot to the letter.
 If LAC agrees to allot the plot to the applicant, then MIDC issues the offer letter for
payment of EMD of 25% within 15 days issuance of the letter.
 After payment of EMD, MIDC issues the allotment letter with the plot number and
ask the applicant to pay the balance 75% of premium within 30 days of issuance
of the letter.
 Road width charges are also applicable for plots up to 10 acres. 50% concession
is given to plots above 10 acres up to 25 acres. There are no road width charges
for allotment of plots above 25 acres or if the investment is above 100 cr.
 Once the balance payment is made, then possession of the is given by MIDC and
agreement to lease is executed between MIDC and allottee.
 Normally the entire process takes about 3-4 month for completion of MIDC plot
allotment. After taking possession of the land and executing agreement to lease, the
enterpreneure is to apply and obtain various consent and licenses to establish the
industry. Normally the entrepreneur needs to obtain MSME registration and
provisional fire department fire NOC from MIDC fire Department before submission
of plans to special planning authority (SPA) of that region.

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 In case the allottee of MIDC plot is going to store any hazardous, explosive or
inflammable items. He/she would needs to take the permission from
Maharashtra Pollution control Board (MPCB) for required category (orange, red,
white)
 The Next step is to get the plans approved from the planning authority of MIDC
and carry out development activity on the plot of land. You may also get a
temporary water connection from MIDC for construction purpose and temporary
electricity connection from MSEB. On completion of construction, you can obtain
building completion certificate (BCC), Drainage Completion certificate, tree
plantation certificate and occupancy certificate (OC) from SPA and install your plant
and machinery.
 For the post-construction activity you will need – MSME Registration, MPCB consent
to operate, Factory license, permanent water connection and execute the water
supply agreement with MIDC, electricity connection from MSEB. You may also need
other permits and licenses specific to your activity.

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 MIDC AUCTION PLOT

MIDC allows selling its plot through MIDC auction. Auction is carried out through E-bidding
of plot.
The Procedure for bidding of the plot is as follows:
 The allotment of land in MIDC for industrial use is being done through a direct
online application. Sometime MIDC resorts to auction, where availability of plots is
less as compared to the demand. Commercial and residential plots in MIDC are
normally allotted through auction only.
 While submitted the application for allotment of an industries plot in MIDC, the
proposal containing the following document is to be submitted to MIDC:-
 Request letter to MIDC on letterhead
 Online application
 White application from duly filled
 Detailed project report
 Copy of MOA (if Pvt. Ltd) / Registered partnership deed
(if partnership firm)
 A. Certificate for shareholding (If Pvt. Ltd)
 Board resolution (if Pvt. Ltd)

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 Block plan of proposed utilization of plot
 Demand draft toward processing fees.
 MIDC after scrutiny of the proposal issues a letter to the applicant to present before
the land allotment committee (LAC) meeting.
 The land allotment committee checks-up the project viability and according takes a
decision for allotment of plot to the applicant.
 If LAC agrees to allot the plot to the applicant, them MIDC issues the offer letter for
payment of EMD of 25% within 15 days of issuance of the letter.
 After payment of EMD, MIDC issues the allotment letter with the plot number and
ask the applicant to pay the balance 75% of premium within 30 days of issuance
of the letter.
 Road width charges are also applicable for plot up to 10 Acres. 50% concession is
given to plots above 10 acres up to 25 acres. There are no road width charges
for allotment of plots above 25 acres or if the investment 100cr.
 Once the balance payment is made, then possession of the plot is given by executed
between MIDC and the allottee.
 Normally the entire process takes about 3-4 month for completion of MIDC plot
allotment. After taking possession of the land and executing agreement to lease, the
entrepreneur is to apply and obtain various consent and license to establish the
industry. Normally the entrepreneur needs to obtain MSME registration from DIC,
MPCB consent to establish and provisional fire NOC from MIDC fire department
before submission of plans to special planning Authority (SPA) of that region.
 In case the allottee of MIDC plot is going to store any hazardous, explosive or
inflammable items, he/she would need to take the permission from
Maharashtra pollution control Board (MPCB) for required category (orange, red,
white).
 The Next step is to get the plans approved from the planning authority of MIDC
and carry out development activity on the plot of land. You may also get a
temporary water connection from MIDC for construction purpose and temporary
electricity connection from MSEB. On completion of construction, you can obtain
building completion certificate (BCC), Drainage completion certificate, Tree
Plantation certificate and Occupancy certificate (OC) from SPA and install your
plant and machinery.

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 BCC/OC

1. Details for Building Completion Certificate (BCC)

Building Completion Certificate (BCC) is a mandatory document that validates that
construction is in line with building norms. The local development and Municipal
Corporation are the competent authorities to provide the certificate.
2. Building Competition Certificate (BCC) for MIDC plots
MIDC is a grantor of the plot for industrial, Commercial and residential purpose in
Maharshtra. Maharashtra industrial development corporation grants plots for the lease
period of 95 years. According to the MIDC norm, the plot holder have to develop their plot
and obtain the building completion certificate (BCC) within the stipulated time depending
on the zonal division. Special planning authority (SPA) is the department which approval the
plan submitted prior to the construction and after completion, the department examines
the site and verifies the construction as per norms followed by providing BCC. After
obtaining the BCC the plot holder can start the industrial activity and even in case the
holder wants to transfer the leasehold right that is possible.
For setting up new industry in MIDC area, 10 number of permission are required after
allotment, out of which following permission are within the purview of E&MD offices.
 Building plan approval.
 Drainage plan approval (External) if Applicable
 Provisional and final fire NOC (upto 5000m*m plot area)
 Power NOC

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  Water connection
 CETP membership (if applicable)
 Plinth completion
 Building Completion Certificate (BCC) / Occupation certificate (OC)
To start construction on a plot, building permission is a major a activity and ultimately the
allottee has obtain BCC and start production with the stipulated period. Out of eight
permission, the allottee has to simultaneously obtain following permission from MIDC.
 Building plan approval
 Drainage plan approval (External)
 Fire NOC
 Water Connection
 CETP membership
Power NOC

Sanction to the building plan, drainage plan, fire NOC, water connection. CETP membership

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 Extension of time limit

Details for extension of time limit –

 Those plot holder who had obtained BCC, but the constructed areas is less than
40% of the plot & balance land of plot is open. Those plot holder should consume a
minimum 40% FSI within 2 year from the data of issuance of this circular.

 After completion of two year from 21st June 2019 if revised BCC for 40% is not
obtained, then non-utilization charges at @ 10% of the prevailing MIDC rate for open
land till revised BCC of minimum 40% is obtained would be charged. The penalty
would be charged till the last date of the month of issuance of revised BCC.

 After completing of 2 year from the date of circular non-utilization charges are
applicable for the next 2 years.

 After completion of the extension period of two year if the BCC of minimum 40%
isn’t obtained in such case no further extension would be given. Leaving the area
of FSI consumed by the plot , (as per the set norms the required area for the
development of the FSI would be left with the lessee), the remaining plot would be
taken away by MIDC.

 If the BCC is not obtained in a given period and delayed then penalty charges may be
applicable as per MIDC circular and yearly charges for delay in production and
completion of BCC can be imposed.

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 Amalgamation
Amalgamation of the plot is the merging of plot. Amalgamation of plot is done if you have
two or more plots side by side and want to merge them into one plot so as to save marginal
space and increase the production.

Document Required for Amalgamation of plot

Following are the document required for amalgamation of plot:

 Request letter to MIDC

 NO Dues certificate for water from Executive engineer/Dy. Engineer (SPA) MIDC
 Copy of project report
 Copy of on-line application to MIDC
 NOC from financial institution (if the plot is mortgaged with the permission of MIDC)
 Declaration on form no. A & B,
 Copy of up to date lease rent paid receipt.

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Learning of the student through the project

43
 I have learned following things :

In the 1st Week

 Orientation and Introduction

 Team Dynamic
 Software Familiarization
 Observation Client Interactions
I am truly excited about this Internship Opportunity and the chance to learn and contribute
to the MIDC department. The First week has provided me with a strong foundation, and I’m
eager to take on more responsibilities and make the most of this experience.
If there are specific tasks or project you’d like me to focus on in the coming week, please
feel free to share your insight. Thank you for this valuable opportunity, and I look forward
to another week of learning and growth.

In the 2nd week

 Project Involvement
 Client Interaction
 Software Proficiency
 Team Collaboration
 Project Funding
 Investment Activity
 Compliance and Governance
The Internship continues to be an enriching learning experience, and I am grateful for the
support and mentorship provided by the team. Each week, I strive to build on the
knowledge and skill I’ve acquired. I’m enthusiastic about the opportunities ahead and am
committed to making a positive contributed to the MIDC department.
Compare actual spending against the budget allocated for the week. Explain any significant
variances and the actions taken to address them.

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 In the 3rd week

I continued to participated in team meeting and discussions, offering my insight and

learning from the experience of my colleagues. The collaborative atmosphere has been
instrumental in my professional development.
I’m immensely grateful for the support and mentorship provided by the team. The
challenges I’ve faced have been instrumental in my growth. Each week, I aim to build on the
knowledge and skill I’ve acquired. I’m enthusiastic about the opportunities ahead and am
committed too making a positive contribution to the MIDC department.

In the 4th week

 Project Leadership
 Professional Development
I attend specialized training session focusing on industry-specific regulation and best
practices. These Session provided insight into maintaining high standards in our
department’s work. I am now more adept at using these tools for data analysis, project
management, and report preparation.
My Role in client interaction expanded as I actively engaged with client, discussing project
progress, addressing their inquiries, and ensuring their concerns were resolved effectively.

In the 5th week

 Project Completion
The internship continues to be a profound learning experience, an I’m grateful for
the support and mentorship provided by the team. Each week brings new
opportunity for growth and challenges to overcome, and I’m committed to making
the most of them.
I have been leading reached its conclusion this week. It involved finalizing project report,
ensuring client satisfaction, and completing all necessary documentation. This experience
allowed me to apply my project Management and leadership skill effectively.

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 In the 6th week

 Project Evaluation
With the completion the project led last week, I engaged in a detailed evaluation of the
project’s outcomes. This involved identifying successes, areas for improvement, and lessons
learned. This Process has been valuable in enhancing my project management and
leadership skill.

In the 7th week

 Brief assessment of the cash flow statement, emphasizing any significant changes in
liquidity.
 Concise updates on ongoing project funding, addressing any notable
developments or challenges.
 Confirmation of adherence to regulatory and governance standards.
 Note any changes or updates in compliance requirements.
 Quick insights into anticipated financial trends for the upcoming weeks.
 Mention of challenges or opportunities in capital management.

In the 8th Week

 Overview of key financial metrics for the seventh week, including revenues,
expenses, and profits.
 Succinct analysis of actual spending against the budget.
 Highlight any notable variances and brief strategies implemented for management.
 Quick review of the current debt status, repayments, and any new borrowings.
 Concise updates on ongoing project funding, addressing any notable
developments or challenges.

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FINDING

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To provide finding in a MIDC (Maharashtra Industries Development Corporation) Project,
you will need to conduct research and data analysis specific to your project’s objective and
research question. Here’s a generalized example of what finding in a MIDC project might
look like -

1. Research Question -
“what is the impact of the Maharashtra industrial Development Corporation (MIDC) on the
economic development of the region?”

2. Economic Growth –
Our analysis reveals a significant positive correlation between the presence of MIDC
industries zones and economic growth in the Maharashtra region. Over the past decade,
areas with actives MIDC project experienced a higher GDP growth rate compared to region
without such industrial development.

3. Employment Generation-
MIDC project have played a crucial role in employment generation. The data indicates
that over 50,000 direct jobs have been created in MIDC zones, with an additional 20,000
jobs in ancillary industrial and support services. This demonstrates the corporation’s
contribution to reducing unemployment rates in region.

4. Infrastructure Development
The MIDC has made substantial investment in infrastructure development, including
roads, utilities and industrial parks. Our finding suggest that this investment has improved
the overall infrastructure of the areas, making them more attractive to businesses and
investor.

5. Foreign Direct Investment (FDI)

MIDC has successfully attracted foreign direct investment into the state. Our analysis
indicates that FDI inflow have increased by 30% in areas with active MIDC Project compared
to other region. This suggested that MIDC’s efforts to promote Maharashtra as an
investment destination have been effective.

6. SME Growth
The MIDC has also supported the growth of small and medium-sized enterprises (SMEs)
by providing them with affordable industrial spaces and infrastructure. Our research shows
that SMEs in MIDC zones have experience higher growth rates and export opportunities
than those outside these zones.

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 7. Challenges
Despite its successes, the MIDC project face challenges such as land acquisition disputes,
environmental concern, and infrastructural bottlenecks. These challenges need to be
addressed to sustain and enhance the positive impact of MIDC on the region’s department.

8. Sustainability Initiatives
Our study also highlights the efforts of MIDC in promoting sustainable industrial
development. Several MIDC project have adopted green and environmentally friendly
practices, contributing to a reduction in carbon emission and resource conservation.

9. Community Impact
The presence of MIDC project has had mixed effects on local communities. While it has
improved employment opportunities, there are concern regarding land displacement and
the need for better community engagement and development Program.

10.Future Prospects
Based on our findings, we recommend that MIDC continues to focus on infrastructure
development, sustainability, and promoting ease of doing business to attract more
investment. Additionally, addressing the challenges associated with land acquisition and
community engagement will be crucial for the long-term success of the project.

11.Policy Implication
Our research finding have important policy implication for the government of
Maharashtra. Policymakers should consider expanding the scope of MIDC project while
simultaneously addressing the associated challenges to ensure balanced and sustainable
economic development.

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Conclusion

50
Creating a conclusion for Maharashtra Industrial Development Corporation (MIDC) summer
internship project (SIP) report would depend on the specific details and finding of your
project. However, I can use as a starting point:
“In summary, the MIDC summer internship project has been a valuable and enlightening
experience. During this internship, we had the opportunity to develop deep into the various
functions and operations of the Maharashtra industrial development corporation. Through
research, data analysis, and practical exposure, we gained insight onto the complexities of
industrial development in Maharashtra.
Our finding revealed that MIDC plays a pivotal role in attracting investments, promoting
economic growth, and supporting the industrial ecosystem in the state. We identify areas
where MIDC excels, such as infrastructure development and investment facilitation. We also
uncovered areas that could benefit from improvement, including sustainability initiatives
and streamlining administrative processes.
This internship not only enhanced our understand of industrial development but also
provided a platform for practical learning and skill development. We are grateful for the
opportunity to contribute to MIDCs mission and appreciate the guidance and support of the
organization’s staff.
In conclusion, the MIDC SIP project has been an enriching experience that has broadened
our knowledge and allowed us to witness firsthand the crucial role that MIDC plays in
shaping the industrial landscape of Maharashtra. We look forward to carrying these insights
forward as we continue our academic and professional journey.”

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 Reference

Web site :

 https://www.ascconline.com

 https://www.heritageenterprises.in/

 https://www.midcindia.org

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