Mumbai needs big fix to become global hub: India Inc

What was meant to be a conference on 'transforming the Mumbai Metropolitan Region into a global, financial, commercial and entertainment hub' became a platform to whip the government. Everyone from industry captains (both Ambani brothers) to film stars (Amitabh Bachchan) to culture and heritage czars and czarinas gave the state and the Centre an earful for everything wrong with Mumbai. None of them minced words in the presence of union minister Venkaiah Naidu and chief minister Devendra Fadnavis as they implored them to do something to change the conditions of the city. Union Finance Minister Arun Jaitley joined the discussion – Mumbai Next – via satellite on Friday.

Raising concerns on "the lagging pace of infrastructure projects", Mukesh Ambani gave the example of the Navi Mumbai airport which is stuck for years due to issues of land acquisition. His younger sibling Anil wanted the CM to explain why a system for faster decisions could not be created. "Why can't CM's team players be protected from the CVC, CBI and CAG to expedite decision-making?" Citing the the recent coal ordinance, he said, "All officials associated with coal auctions have been protected from any criminal scrutiny."

While Jaitley admitted that investment on infrastructure had slowed down across the country, he said the government was exploring various options to increase public spending. "We want to look at how domestic savings can be converted to investment on infrastructure." The minister said that foreign investors were in touch with the government over the past few weeks. "Mumbai is the engine driver of India's growth. If Mumbai grows then India grows," added Jaitley, drawing rousing cheers from the gathering.

Fadnavis assured the gathering, which included Tata Sons chairperson Mistry and SBI chairperson Arundhati Bhattacharya, that his government was trying to build a transparent system to help officers take correct decisions. Admitting that project clearance held the key to drawing investments, the CM announced a global taxation model and five new business hubs. "We will start work on both the trans harbour link and the coastal road this year," he said and hoped, "The new airport should also start operating by the end of 2016."

In the session on entertainment and culture, senior film star Amitabh Bachchan said, "What attracts people to Mumbai is the opportunity for a better lifestyle and earnings. However, what it lacks most is designated spaces like museums or theatres that showcase Mumbai's cultural contribution to the country. Marathi stage has a prominent history which nobody is aware of. Maharashtra has a huge history with many interesting archaeological sites. We need to initiate a campaign that showcases the culture of Maharashtra. Besides this, we need structures where city's visitors can go and relax, where the city's creative talent can go and perform." The superstar also lamented the condition of film archives. "We have already lost many of our classics. I think the government should do something before we lose whatever is left."

Saas-bahu soap queen Ekta Kapoor too wondered why it is more difficult and expensive to shoot at the Gateway of India than India Gate. "Mumbai seems like a film whose plot has gone all wrong."

Heritage conservation experts wondered why Mumbai was losing out to places like Delhi first and now Nalanda in the race to be declared a UNESCO heritage site. "We lost an Opera House here with the government doing nothing. I hope we wake up to the possibilities that conservation opens up given Mumbai's rich heritage in the form of forts and caves like Kanheri," said Abha Narain Lambah.

Pointing out how Punjab had raised Rs 200 crore for heritage conservation in a year she asked, "Why can't Maharashtra do it?" Fadnavis promised there wouldn't be another Opera House fiasco.


Also heard...

Shirish Sankhe, Director, McKinsey India:
There are gaps that exist currently like vehicle congestion, sewage treatment, optimum use of water, etc. We need to solve these problems through economic master-planning before physical master-planning. Transfer 20% of the GST directly to the city. Design, build and monetize 8-10 cities. Transform ease of doing business in MMR region.

UPS Madan Commissioner, MMRDA:
We need to enhance public transport in Mumbai. There are currently six other Metro corridors under construction. These 116-km corridors will be completed in seven years. In BKC, there are problems of entry-exit so three flyovers are under consideration for easy entry and exit through Kalanagar. Multi-nodal corridors are also under consideration like the one in Kalyan and Bhiwandi, within the next 3-4 years."

Sitaram Kunte, Municipal Commissioner, MCGM:
As of now Rs11,500 crore has been mobilized in FY16 towards capex by the MCGM. Municipal Bond markets unfortunately are not developed in our country which creates an issue of garnering finance from the public. However, now the MCGM has set a spending target of Rs 15,000-20,000 crore to develop Mumbai.

Jamshyd Godrej, Chairman, Godrej & Boyce:
Since there are so many statutory bodies in the state, we must make sure that the process of decision-making is inclusive. Finance alone can't stall projects, it's the method of execution. Japan, for example, has a slow decision-making process, wherein all the stakeholders are consulted and asked to provide their views before the plans are implemented. So what happens in effect is that once the process is underway the execution is hassle-free and fast. Mega projects like Monorail and Metro can tackle high density travel population but something like the BRTS, which requires a fraction of the investment, can be a catalyst to ease connectivity issues. The other issue the government needs to focus upon is that of the Land Ceiling Act."

Ravneet Gill (Deutsche Bank)
It is imperative that the administration focuses on developing speciality ports and allow fund managers to set up bases in India. That would kickstart the economy. I would assign a three-year horizon to make India a financial center in the true sense of the term.