Admitting that Mumbai has lost businesses and tech talent to cities such as Bengaluru and Hyderabad, Maharashtra chief minister Devendra Fadnavis has said developing Navi Mumbai and a “Third Mumbai” is key to offsetting high real estate costs and retaining talent.
Speaking to Moneycontrol on the sidelines of the World Economic Forum in Davos, Fadnavis said, "In the past, we lost business to Bengaluru and Hyderabad due to the high cost of real estate. When it comes to the IT industry, there’s a benchmark beyond which the industry cannot pay. Real estate in Mumbai is very expensive.”
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Things are now changing, said Fadnavis who took over as the chief minister after the BJP-led NDA’s big win in the assembly elections in late November. "But now, with the Atal Setu connecting Mumbai to Navi Mumbai, travel time from Nariman Point to Navi Mumbai has been reduced to just 30 minutes.
“We are developing 'Third Mumbai' between Navi Mumbai and Raigad districts, which will be three times bigger than Mumbai. This is a thematic city, which will host 60 percent of the data centre capacity."
He said this is the solution to reduce real estate costs. "We are working on a similar model that was implemented in New York."
The CM said the government is also providing affordable housing in Navi Mumbai. “A recent project by CIDCO has built 60,000 apartments, which are being marketed at very affordable rates," he said.
The government is creating substantial infrastructure in Navi Mumbai, which is quickly emerging as a twin city of Mumbai. “With the new Navi Mumbai airport, we are seeing increased investment in the IT industry, innovation, and startups,” the CM said.
Mumbai, however, continues to be the FinTech hub. “In the Startup India report recently released, Maharashtra has become the number one destination for startups. We were already number one, but now, in terms of investment, Maharashtra is leading. Investment in startups has grown from $1.5 billion to $3 billion. This shows the power of Maharashtra," Fadnavis said.
There was a time when Mumbai lost some business to Bengaluru and other cities but now companies are moving back. “We now host the highest number of unicorns, and things have already changed,” he said.
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