Major Projects of Maharashtra that shifted to Gujarat under the BJP.
1. Vedanta-Foxconn Semiconductor Project
Planning: The proposed Rs 1.54 lakh crore Vedanta-Foxconn semiconductor project was initially eyed by Maharashtra. Talegaon near Pune was considered to be home to a large semiconductor manufacturing cluster and the creation of tens of thousands of direct and indirect jobs.
BJP Involvement: The project was shifted to Gujarat, where the BJP was in power at both the state and the Union levels, and where substantial incentives and offers of institutional support were on the table. The Union government’s semiconductor subsidy programme figured prominently in the deal structure. Maharashtra’s opposition parties accused the BJP of promoting Gujarat at the expense of Maharashtra.
Shifting: In September 2022, Vedanta and Foxconn announced that Gujarat would host their joint semiconductor venture, not Maharashtra. The loss of a major industrial investment figured prominently in the politics of Maharashtra, as Talegaon was due to benefit substantially from hosting the project. Maharashtra came away as the biggest loser in this high-profile investment tussle between Maharashtra and Gujarat.
2. Tata-Airbus C-295 Aircraft Project
Planning: Maharashtra anticipated that the Rs 22,000 crore Tata-Airbus C-295 aircraft project would be located in Nagpur, and more specifically at the MIHAN region. The proposed project was seen as one that would raise the profile of Maharashtra’s aerospace industry and create thousands of direct and indirect jobs.
BJP Involvement: The C-295 was part of a much larger defence procurement programme, and Gujarat and the Union government, which were both led by the BJP, figured prominently in its story. Prime Minister Modi himself laid the foundation stone for the Vadodara plant and participated in the inauguration ceremony of the Tata-Airbus complex in Gujarat with the Spanish Prime Minister Pedro Sanchez.
Shifting: Instead of Nagpur, the aircraft manufacturing facility was created in Vadodara, Gujarat. This decision followed soon after the Vedanta-Foxconn decision and added to the sense of mistrust in Maharashtra that large-scale investments were being made in Gujarat. Indeed, Vadodara has since become home to India’s first private-sector military aircraft final assembly complex.
3. Bulk Drug Park
Planning: Maharashtra proposed a large Bulk Drug Park in the state, to be located in the Roha-Murud belt of Raigad district that would cover approximately 5,000 acres. It was expected to serve as a significant investment magnet and create many direct and indirect jobs through the creation of an entire pharmaceutical manufacturing ecosystem.
BJP Involvement: Although it was a significant project, the proposed park was not a private investment. The allocation of funds for the park was linked to a central government scheme, and it was up to the BJP-led Union government to decide which states would get financial assistance from the centre. Thus, Maharashtra’s case for this central scheme was up against Gujarat, Himachal Pradesh and Andhra Pradesh.
Shifting: In this competition for central assistance, Maharashtra lost out and Gujarat emerged victorious. Instead of the proposed park in Raigad district, Maharashtra missed an important opportunity to create a large-scale pharmaceutical manufacturing ecosystem with substantial employment potential.
4. Medical Devices Park
Planning: Maharashtra proposed setting up a Medical Devices Park at AURIC in Chhatrapati Sambhajinagar. It was seen as a project that would leverage the potential of a common infrastructure, testing platforms, suppliers and other manufacturers to create an entire medical equipment manufacturing ecosystem.
BJP Involvement: The Medical Devices Park project was managed by the Department of Pharmaceuticals at the Union level, and thus Maharashtra was entirely reliant on the support of the BJP-led government at the centre for this central scheme. Maharashtra’s application for the park was not successful.
Shifting: Other states were successful in securing central funding while Maharashtra was overlooked for the central grant. Maharashtra not only failed to develop its own medical devices park but was also left waiting for a response from the centre on the AURIC proposal just days before the major Vedanta-Foxconn and Tata-Airbus investment deals.
5. National Institute of Coastal Policing
Planning: Maharashtra had an elaborate plan for the National Institute of Coastal Policing. The state government approved the proposal for an additional 55 acres in Khardi, Thane, on top of the 305 acres already allocated for the institute. Maharashtra thus proposed to provide roughly 360 acres for a national institute that would offer training to law enforcement personnel from all coastal states.
BJP Involvement: Following the BJP’s electoral victory in 2014, the Union home ministry invited applications for the institute from Maharashtra and Gujarat. The Union government eventually decided to set up the National Marine Police Training Institute in Pindara in Devbhumi Dwarka district in Gujarat.
Shifting: Maharashtra had made substantial preparations for this institute and was on the verge of becoming the host state. The Union government nevertheless opted for Gujarat despite the state not making any significant contributions to the proposal. This was a central government decision and the involvement of the central government in this competition was more direct than in the previous investment cases.
6. Mumbai International Financial Services Centre vs GIFT City
Planning: Mumbai, India’s financial capital, had plans to develop an International Financial Services Centre (IFSC) at Bandra-Kurla Complex (BKC). MMRDA made detailed preparations for a 50-hectare IFSC at BKC with the objective of transforming Mumbai into an international financial services hub that rivaled Singapore and Dubai.
BJP Involvement: During the tenure of Prime Minister Narendra Modi, India’s first IFSC was created in Gujarat in the form of GIFT City. The Union government established the International Financial Services Centres Authority (IFSCA) in 2020 and located its headquarters in Gandhinagar. Most of the regulatory and policy framework related to India’s IFSCs is concentrated in Gujarat.
Shifting: The proposed IFSC in Mumbai did not gather the same sort of institutional support as GIFT City, and Mumbai eventually lost out on the opportunity to become India’s premier IFSC. Instead, Gujarat gained prominence as a financial services centre and was home to India’s first IFSC and the IFSCA regulator.
7. Surat Diamond Bourse and Mumbai’s Diamond Industry
Planning: Mumbai had long dominated India’s diamond distribution and trading sector, while Surat was home to India’s diamond cutting and polishing industry. The construction of a large Surat Diamond Bourse was intended to bring trading infrastructure closer to diamond manufacturers and complete Surat’s transformation into a full-service diamond centre.
BJP Involvement: Surat Diamond Bourse has had the enthusiastic support of Prime Minister Modi and the state government of Gujarat. The Gujarat government has promoted Surat as a global diamond trading destination and has invested significantly in its infrastructure development. The opening of the Surat Diamond Bourse by Prime Minister Modi in December 2023 is illustrative of this.
Shifting: Surat Diamond Bourse representatives regularly meet with Mumbai’s diamantaires and encourage them to relocate their trading activities and offices to Surat. Some Mumbai-based firms have followed this advice, relocating some staff and operations to Surat, but they have also reported major challenges in doing so. At the same time, several firms have left Surat for Mumbai and continued their presence there. The Surat Diamond Bourse represents a deliberate effort to lure Mumbai’s diamond traders to Gujarat.