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Will Navi Mumbai Shine As Maharashtra Plans More IT Hubs

November 13 2015   |   Katya Naidu

The Maharashtra government is planning to more build information technology (IT) hubs across the state. Under a new policy, the state will offer tax incentives to companies setting up shop here. While Maharashtra expects to create about 100,000 jobs and attract about Rs 50,000-crore investment by doing this, it also aims to boost the commercial real estate in the state by providing floor space index benefits to sector players.

Focus Navi Mumbai

Though the Navi Mumbai area has seen two failed attempts to build special economic zones (SEZs) , many are betting on the locality to turn into an IT hub with the state government IT push. The incentives offered, along with the possibility of an upcoming airport in the area, will trigger growth, experts suggest.

Navi Mumbai is already sprucing up its infrastructure, with planned roads and rail network upgrades. The Mumbai Trans Harbour Link (MTHL) will also increase the significance of this area, helping IT companies shift here. The area's proximity to the financial capital and the availability of space will be the drivers for Navi Mumbai's commercial development.  The area's existing commercial real estate will also get the much-needed start it has been waiting for. Despite a superior infrastructure, IT companies have not explored this option until now due to better opportunities in Pune. A growing number of educational institutions will also attract many companies to set-up close to the talent.

This may also help the residential real estate in Navi Mumbai. According to PropTiger Datalabs Report for the second quarter of financial year 2015-16, Navi Mumbai has an unsold inventory of 31,796 units.

Key takeaways

  • Developers of IT parks to get 200 per cent extra FSI
  • Premium for extra FSI is 30 per cent in Mumbai and Pune
  • Premium in rest of Maharashtra at 10 per cent
  • Property Tax at residential rates
  • Exempts stamp duty and electricity duty for IT and ITeS companies
  • Concessions on VAT and Works Contracts Tax
  • Octroi, entry tax and local body tax exemptions



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