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MADHYA PRADESHDecember 2008
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Madhya Pradesh | December 2008
State Economy and Socio Economic Profile
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Madhya Pradesh | December 2008
M dh P d h h tMadhya Pradesh — a snapshot
• Madhya Pradesh (MP) is located in central India with an area of 308 00 Sq km and aIndia with an area of 308,00 Sq.km. and a population of 60 million.
• Madhya Pradesh was originally the largest state in India until November 1, 2000 when the state of Chhattisgarh was carved out of the same.
• The State shares borders with Rajasthan, Chhattisgarh, Gujarat, Uttar Pradesh and Maharashtra.
• The state is divided into 48 districts (272• The state is divided into 48 districts (272 tehsils and 313 community blocks).
• Forest area of the state constitutes 31 per cent of the area of the total state area and 12.44 per cent of the total forest area of pIndia.
• The state’s central location gives it the advantage of being the hub of India’s national logistics network.MP’ d i i t ti it l i Bh l d
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• MP’s administrative capital is Bhopal and its largest city is Indore.
Madhya Pradesh | December 2008
S i i h tSocio-economic snapshot
Parameters Madhya Pradesh
Population (census 2001) Population (2001) 60.3 million
Density (2001) 196 per Sq.km.
Sex ratio (census 2001) 920/1000 males
Principal languages Hindi
Literacy rate (census 2001) 64.1 per cent
Major minerals Copper ore, lime stone, manganese ore etc.
Major industries Cement, textiles ,minerals, edible oil
Major crops Soyabean, gram, pulses like Masoor and Arhar
GSDP at current prices in 2004-05 US$ 23,983.63 million
NSDP at current prices in 2004-05 US$ 9.8 billion
Annual per capita income at current prices in 2004-05 US$ 254
Domestic airports Bhopal and Indore
S Offi i l b it f G t f I di i di i D t t f R l D l t G t f M dh P d h
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Sources: Official website of Government of India, www.india.gov.in; Department of Rural Development, Government of Madhya Pradesh
Madhya Pradesh | December 2008
E i P filEconomic Profile
• Endowed with large mineral resources of coal diamond limestone methane etc Madhya Pradesh NSDP Growthcoal, diamond, limestone, methane etc.
• Ranked amongst the top four states of the country for industrial investments
• Gross State Domestic Product (GSDP) at current prices in 2004 2005 was US$ S
$ B
illion
Madhya Pradesh – NSDP Growth
at current prices in 2004-2005 was US$ 24 billion
• Growth rate of 5.5 per cent• The per capita GSDP of Madhya
Pradesh is US$ 369
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
US
Source: Department of Finance, Government of Madhya Pradesh
Pradesh is US$ 369• Net State Domestic Product (NSDP) of
the state at current prices (2004-05) was US$ 9.8 billion
• Minor Forest Produce (MFP) such as Industries
Sectoral Contribution to GSDP
• Minor Forest Produce (MFP), such as Tendu leaves, sal wood, teak wood and lak are major contributors to the rural economy of the state.
Services41%
Agriculture
Industries35%
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g cu tu e24%
5
Source: Review of Madhya Pradesh Economy, CMIE, August 2004
Madhya Pradesh | December 2008
Infrastructure status
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Madhya Pradesh | December 2008
Ph i l i f t tPhysical infrastructure (1/3)
Road network
• Total road length in the state is 67,600 Km.• National highways of 5,200 Km. run through the State.• 18 National highways including trunk routes of Delhi-Mumbai, Delhi-Chennai, Delhi-Bangalore, Delhi-Hyderabad.
Railway newtork
• The total length of state highways is 9,885 Km.• Convenient linkages to western ports, i.e., Kandla Port and Jawaharlal Nehru Port Trust.
y
• Well-connected with the rest of India• Almost 425 trains pass through the state on a daily basis
• 175 trains pass through the state capital ‘Bhopal’ alone
Airports• Convenient air links from key Indian cities to Bhopal, Jabalpur, Gwalior, Indore and Khajuraho.
• Five operational airports, 25 airstripsI d i h h bili f h dli i i l
BHOPAL
GWALIOR
KHAJURAHO
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• Indore airport has the capability of handling international cargo
• An international airport is proposed at Bhopal
INDORE JABALPUR
Madhya Pradesh | December 2008
Ph i l i f t t PPhysical infrastructure – Power (1/2)
Upcoming projects in MP (indicative) Thermal Power projects
• The installed electricity generation capacity of Madhya Pradesh is 6,449
MalwaTPS Purni, Dist. Khandwa
2X500 MW
Essar Group Project Mahan coal field at Sidhi-Singraulifields
1000 MW
J G Siddhi 1000 MW
p y y ,MW.
• 95.66 per cent of MP’s electricity generation capacity is based on thermal energy with the remaining from hydel Jaypee Group Siddhi 1000 MW
Sanjay Gandhi, Birsinghpur – Unit V
- 500 MW
Amarkantakextension
- 210 MW
energy, with the remaining from hydelsources.
• On a per capita basis, electricity consumption in Madhya Pradesh stands at 352 kWh per annum close to the
Jindal Group - NA
Hydel Power Projects
Marhikheda hydro project, extension
Shivpuri. 1x20 MW
at 352 kWh per annum, close to the national average of 355 kWh per annum.
Power fact file for MP
Power generation installed capacity 6,449.25 MW
Tawa HEP (M/sHindustan Electro Graphite)
Hoshangabad 13.5 MW
Coal bed methane
Power generation installed capacity 6,449.25 MW
Power generation 24834 MU
Total power available 50679 MU
Per capita power consumption 352kWH/annum
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Reliance Energy Shahdol -
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p p pSource: www.indiastat.com
Madhya Pradesh | December 2008
Ph i l i f t t PPhysical infrastructure – Power (2/2)
Projected Generation Capacity (MW)
200000
225000
(MW)
155000
190000
126838
120000
50000
85000
2006 2012
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2006 2012
Madhya Pradesh | December 2008
Ph i l i f t t T lPhysical infrastructure – Telecom
Telecom fact file for Madhya PradeshNo. of cellular mobile subscribers 8,87,990
Number of Telephone exchanges 2,791
Tele density 3.9
Working DELS 23,57,660 ( Wired-12,03,458, WLL 2,66,212 and GSM 8,87,990)
OFC route length (in Kms) 27,222.7
Working internet connections 1,51,999
Working broad band connections 34,096
Source: www.mp.bsnl.co.in
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Madhya Pradesh | December 2008
S i l i f t t Ed tiSocial infrastructure - Education
• Ranked 12th on the Human D l t I d
Educational institution NumberDevelopment Index
• Literacy levels in the state have improved from 44.2 per cent in 1991 to the current level of over 64.1 per cent
Primary schools 87,620
Higher secondary schools 8,481
Degree colleges 250• 45 engineering colleges, over 200
technical training institutes, six medical colleges and 43 management institutes
• Key national institutes in the state
Degree colleges 250
Universities 9
Polytechnic institutes 79Key national institutes in the state include:
– Indian Institutes of Management (IIM) ,Indore
– Indian Institute of Forest Management
Industrial training institutes 200
Engineering colleges 45
Medical colleges 6Indian Institute of Forest Management– Indian Institute of Hotel Management – International Institute of Professional
Studies, Indore
Source: www.indiastat.com, 2006
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Madhya Pradesh | December 2008
S i l i f t t H lthSocial infrastructure - Health
• Network of health facilities comprises 145 h it l 343 it h lth
Health institution Number145 hospitals, 343 community health centres, 1,705 primary health centres.
• It also has 34 Ayurvedic and four homoeopathic hospitals.
District hospitals 145
Sub-centre 20,521
Primary health centre 1,705
• The number of in-patient beds in MP’shospitals is 20,839.
y
Community health centre 343
Ayurvedic hospitals 34
U i h it l 204Unani hospitals 204
Homeopathic hospitals 4
Source: Ministry of Health and Family Welfare, GoI, March 2006
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Madhya Pradesh | December 2008
I d t i l i f t t k l tIndustrial infrastructure - key clusters (1/3)
• Through the Madhya PradeshA d ik K d Vik Ni Ltd
Gwalior AKVN
Audyogik Kendra Vikas Nigam Ltd(MPAKVNs) scheme, the stategovernment has identified severalindustrial clusters. Several industriali t h th i t bli h t i th
Malanpur, Malanpur Phase II, Banmore, Chainpura, Siddhgawan, Pratappura
Rewa Waid
Bhopal AKVN Rewa AKVN
Indore AKVN
giants have their establishments in theseareas, however 44 per cent of thedeveloped area is still untapped andopen to investment.
Pithampur, Kheda,
Rewa, Waidhan
Borgaon, Maneri, Purena
Mandideep, Pillukhedi, Mandideep Phase II
Dewas, Maksi, Megh Nagar
Jabalpur AKVN
Total developed area 7,147 Hectares
Total allotted area 3,089 Hectares
Total units established 1,360
Growth centres 19
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Madhya Pradesh | December 2008
I d t i l i f t t k l tIndustrial infrastructure - key clusters (2/3)
Indore AKVN Gwalior AKVN• Area developed: 2,492 Hectares• Allotted: 1431 Hectares• Units established: 575• Major groups: Tata, Ranbaxy, Eicher, Bridgestone,
Hindustan Motors, Kinetic, SRF, S Kumars, Gajra,
• Area developed: 2,262 Hectares• Allotted: 800 Hectares• Units established: 326• Major groups: JK, Surya Roshini, Godrej, Grasim,
Cadbury, Hotline, Crompton GreavesHindustan Motors, Kinetic, SRF, S Kumars, Gajra, Nicholas Piramal, Indorama, IPCA, Bhilwara
• Special infrastructure: SEZ, Crystal IT Park, Food Park, Apparel Park
Cadbury, Hotline, Crompton Greaves • Special infrastructure: ICD, Food Park
Bhopal AKVN• Area developed: 1,330 Hectares• Allotted: 618 Hectares• Units established: 286
JabalpurAKVN• Area developed: 790 Hectares• Allotted: 125 Hectares• Units established: 52
• Major groups:HEG, Crompton Greaves, P&G, Godrej, Lupin, IFB, Oswal, Nahar
• Special infrastructure: ICD, Food Park
• Major groups: Raymond, Hindustan Petroleum, PBM, Ayur
• Special infrastructure: Stone Park, Food Park
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Madhya Pradesh | December 2008
I d t i l i f t t k l tIndustrial infrastructure - key clusters (3/3)
Rewa AKVN• Area developed: 273 Hectares• Allotted: 115 Hectares• Units established: 121• Major groups: Birla, Jaypee• Special infrastructure: Integrated infrastructure• Special infrastructure: Integrated infrastructure
development centres (IIDC)
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Madhya Pradesh | December 2008
State policy and Incentives
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Madhya Pradesh | December 2008
St t l l li i
to attract NRI and foreign investment by
State level policies (1/3)
Industrial Promotion Policy 2004• The Industrial Promotion Policy would to attract NRI and foreign investment by
developing world-class infrastructure– To create a congenial environment for the
development of small, medium and large industries
• The Industrial Promotion Policy would be effective for five years from April 1, 2004.
• The new policy envisages creating an i d t f i dl d i i t ti
– To ensure balanced regional development by generating employment in the non-farm sector
– To chalk out special packages for removing
industry-friendly administration, maximising employment opportunities, tackling industrial sickness, rationalisingrates of commercial taxes and bolstering
i t t ti i ti industrial sickness– To integrate different employment-oriented
schemes in order to provide employment opportunities on a sustainable basis
private sector participation.• Objectives of the Policy
– To make state administration and industry friendly by simplifying rules and
dprocedures– To accelerate the pace of industrialisation
and make Madhya Pradesh a leading industrial stateTo maximise employment prospects
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– To maximise employment prospects
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Madhya Pradesh | December 2008
St t l l li iState level policies (2/3)
IT policy – 2006• Improve the life of the common man by
pest resistant seeds for agriculture and horticulture crops suited to different agro-• Improve the life of the common man by
leveraging the strengths of e-Governance• Attract investment in the sector so that the
educated youth is able to contribute to the d l t f th St t
p gclimatic zones
• Improvement of the quality of livestock and poultry, especially the breeds indigenous to the state
development of the State• Create a pool of highly skilled
professionals who are at par with the best in the country
• Enhancement of the productive potential of the aquatic eco-system
• Promotion and cultivation of medicinal and aromatic plants. Also, processing value
• Transforming MP from a resource- based economy to a knowledge -based economy.
addition of their produce.• Production of cost effective drugs that help
counter diseases common in the tropical and sub-tropical regions of the country
Biotechnology policy – 2003• Conservation of the state's biodiversity
and the sustainable use of its biotic resources
• Promote environmentally safe technologies to reduce pollution, and above all-treatment of urban waste and industrial effluents
• Afforestation and especially the quick revival
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resources• Production of high-yielding, draught and
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of species which have shown a tendency to decline.
Madhya Pradesh | December 2008
St t l l li iState level policies (3/3)
Special economic zone policy• Exemption of all state and local taxes
Tourism policy• Improvement and creation of adequate• Exemption of all state and local taxes
and levies for transactions with the SEZ and for supply from domestic tariff areas to the SEZE ti f t d t d
• Improvement and creation of adequate basic infrastructure
• Special package of incentives for tourism industry including exemption from luxury t l t d t t i t t f• Exemption from stamp duty and
registration fees• Grant of
labour, energy, environment, industrial
tax, sales tax and entertainment tax for new projects up to 10 years.
• Designation of 25 tourist circuits for commercial tax exemption for tourist
health and safety-related permits and approvals through a dedicated single window mechanism.
• Exemption from electricity duty, cess
vehicles
p y yand any other tax or levy on sale of electricity for self-generated and purchased power.
• Expeditious process for land
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Expeditious process for land acquisition to set up SEZs.
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Madhya Pradesh | December 2008
P t li i tPower sector: policy environment(1/2)
Policy initiatives by GOI• 100 per cent FDI is allowed under the
Key GOI initiatives under the Electricity Act 2003
• 100 per cent FDI is allowed under the automatic approval route in all segments of the industry, i.e., generation (based on coal, gas, or hydro), transmission and retail distribution
• Generation other than for large hydro projects, is de-licensed
• Open access on transmission and distribution networksretail distribution.
• Under the Mega Power Policy, incentives such as capital import duty concessions, waiver of local levies to improve cost attractiveness are
• Retail competition mandates that by July 2008 all consumers above one MW are free to choose their suppliers
• For rural power development, generation to improve cost attractiveness are extended to large generation projects
• All power projects are extended a tax holiday, i.e., deduction of 100 per cent of
gand distribution is de-licensed in rural areas
• Power trading and market development are being recognised
profit of the generation, transmission or distribution company, for 10 consecutive years out of 15 years from the year of commencement.
• Strong anti-theft and malpractice provisions
• Functional unbundling of the integrated state electricity boards and setting up of St t l t i it l t i i
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State electricity regulatory commission made mandatory by states.
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Madhya Pradesh | December 2008
P t li i tPower sector: policy environment (2/2)
State policy initiatives• Competitive bidding for awarding• Competitive bidding for awarding
projects• Incentives for mega power projects • Relaxation of 40 per cent cap for debt
exposure by Indian financial institutions• Inter institution group for speedy
financing• Encouragement to FDI in transmissionEncouragement to FDI in transmission
via Joint Venture route and Independent power Transmission Company Route
• National Electricity Policy and National Tariff Policy notifiedTariff Policy notified
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Madhya Pradesh | December 2008
St t l l i tiState level incentives
Special incentives• Special package for mega projects on • Entry tax exemption for five years• Special package for mega projects on
project basis by apex level empowered committee headed by the Chief Minister
• Industrial investment promotion i t 50 t 75 t f
• Entry tax exemption for five years• Five years electricity duty exemption on
captive power generation• 15 per cent capital subsidy to SSI up to
$assistance – 50 to 75 per cent of commercial tax for three to 10 years.
• Concessional registration charges and stamp duty exemption for term loans
US$ 33,000 in backward areas• Infrastructure grant up to US$ 0.22
million for developing private sector industrial parks
• Interest subsidy on term loan for five years at three to five per cent.
• For thrust sector industries, 25 per cent capital subsidy would be provided limited
• Partial reimbursement for Project report, ISO certification, patent and technology purchase cost
capital subsidy would be provided limited up to a maximum of US$ 56,000
• Land on 75 per cent concessional rate for mega projects limited to US$ 4.4 million
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million.
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Madhya Pradesh | December 2008
Business Opportunities
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Madhya Pradesh | December 2008
Th t f th t tThrust areas of the state (1/11)
Auto and auto components • The size of the auto component industry
Textiles • A large number of cotton textile mills are• The size of the auto component industry
in the state is around US$ 306 million. • 60 per cent of the auto industry in MP is
dominated by auto component players.
• A large number of cotton textile mills are clustered around Indore, Ujjain, Burhapur etc.
• Major textile players include Bhilwara, I d R Bh k S K ’ O l• The state has developed an industrial
cluster at Pithampur which provides readily available infrastructure for companies to set up manufacturing
Indo-Rama, Bhaskar, S.Kumar’s, Oswaland Parasrampuria.
• To further support the business endeavours Government of Madhya
facilities in the state. The estate is spread over an area of 5,000 hectares.
• The Union Government of India has sanctioned an auto cluster in the
Pradesh has created specialisedinfrastructure in the form of Apparel parks.
Pithampur industrial area. • The Government of India will grant an
amount of US$ 11 million for the same.
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Madhya Pradesh | December 2008
Th t f th t tThrust areas of the state (2/11)
Cement • Total reserves of limestone is 3625.98
Tourism• The tourism sector in MP has been
id ifi d f h k ll fmillion tonnes spread across more than 15 districts.
• Seven major cement plants are operating in the state with an annual
identified as one of the key propellers of growth by the State Government.
• The domestic tourist inflow has been approximately eight million in 2005-06. Th f i t i t i l l ti loperating in the state with an annual
installed capacity of 15.97 million tonnes.
• MP State Industrial Development Corporation has forecasted that Damoh
• The foreign tourist arrival was relatively less at 0.16 million.
• The State government has sanctioned US$ 12.2 million for development of 17 tourist spots across the StateCorporation has forecasted that Damoh-
Panna area, and Bela-Pagra of Rewahave limestone deposits worth eight million tonnes and 20 million tonnesrespectively
tourist spots across the State.• The government is also making concrete
efforts to improve air connectivity, between MP and other Indian statesrespectively.
• An estimated scope of further investment to the tune of US$ 2.5 billion exists in this sector in the state.
Indian states.• The state has taken initiatives to
promote eco and adventure tourism and is also keen on promoting medical/ herbal tourism in association with private
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pparties.
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Madhya Pradesh | December 2008
Th t f th t tThrust areas of the state (3/11)
Major tourist places• Kanha is the largest wildlife sanctuary in
Domestic tourist arrivals in MPVery high increase due to Maha Kumbh Mela• Kanha is the largest wildlife sanctuary in
Asia.• Khajuraho has some of the most famous
sculptures in the world.
(once in 3 years)
• Bhimbeteka has the oldest cave paintings in the world
• Sanchi houses the oldest Buddhist stupain the world. 2002-03 2003-04 2004-05 2005-06
• Nine national parks and 25 game sanctuaries
Foreign tourists arrivals in MP (in thousands)
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Madhya Pradesh | December 2008
Th t f th t tThrust areas of the state (4/11)
Agriculture• Several AEZs (Agri Export Zones) have • MP’s share in the total national• Several AEZs (Agri Export Zones) have
been set up for facilitating export of specific products from a geographically contiguous area.Th diti th t h hi h
• MP s share in the total national production of peas is 15 per cent.
• It’s the largest producer of soyabean, gram and second largest producer of l til il d d J• The commodities that have high
potential include potato, spices (in the western parts), pulses (in the central part of the state), wheat (in the western and central regions) and oranges (south
lentil, oilseeds and Jowar.
The state’s multiple cropped area is about 24 per centwhich can be utilised for cultivation at any given time ofthe year and irrespective of the season.
and central regions) and oranges (south districts).
• Of the total gross cropped area, 59 per cent is sown in the Kharif season while
Agri Export Zones in MP for various products/ crops
the other 41 per cent is sown in the Rabi season.
• Apart from accounting for the 37 per cent of the total national
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production, Madhya Pradesh is the leading producer of garlic.
Potato, onion and garlicSeed spices, coriander and fenugreekWheat
Pulses Oranges
Madhya Pradesh | December 2008
Th t f th t tThrust areas of the state (5/11)
IT / ITeS sector• The state has set up over 24 000 Km of
• IT/ITeS sector - Exports:– IT/ ITeS exports from MP are US$ 655 millionThe state has set up over 24,000 Km. of
optical fibre backbone to cover all its 313 developmental blocks across 45 districts.
• Four Software Technology Parks (STP units) to be set up in Bhopal, Indore and
– Software exports: US$ 11 million ; IT-enabled services: US$ 644 million
IT Parks Location
Crystal IT Park (5,50,000 Sq. ft.) Indoreunits) to be set up in Bhopal, Indore and Gwalior-are in the pipeline.
• 38 IT engineering colleges provide the learning ground for future IT professionals.
• Home to country’s first Indian Institute of
y ( , , q )
Hardware and software technology Park (200 acres) Bhopal
Software Technology Park (1,00,000 Sq.ft.) Indore
IT Park (50 acres) Gwalior
Major IT Players in MP LocationHome to country s first Indian Institute of Information Technology and Management (IIITM) at Gwalior.
• Large IT players like HCL and Genpacthave shown interest in setting up the
j y
Taurus Indore SEZ
Fujitsu Bhopal
HCL (proposed) Bhopal
Genpact (proposed investment of US$ 34 million) Bhopalhave shown interest in setting up the facilities in the state.
• Genpact India has proposed to set up a 7,000-seat BPO facility on 50 acres in Bhopal, with an investment of US$ 34
IT Park
Proposed/existingprojects in MP
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Bhopal, with an investment of US$ 34 million. Hardware & Technology
ParkCrystal IT ParkSTP Indore
Madhya Pradesh | December 2008
Th t f th t tThrust areas of the state (6/11)
Forest-based industries• Madhya Pradesh has a forest area of • The average annual production of Tendu• Madhya Pradesh has a forest area of
94689.38 Sq.km. and constitutes nearly 31 per cent area of the state.
• With a share of nearly 13 per cent of th t t l f t f th t MP
• The average annual production of Tenduleaves in the state is around 2.5 million standard bags.
• MP accounts for nearly 25 per cent of all T d l d d i I dithe total forest area of the country, MP
has the largest forest covered area among all the states in India.
• Forest-based industries are key
Tendu leaves produced in India.• Sales of forest product generated
revenues of US$ 109 million in 2005-2006.
contributors to the state’s economy and also provide employment to a greater part of the population.
• From 2004 to 2005, forests and logging contributed 2.1 per cent to the state GDP.
• The total growing stock (volume of timber/wood) in MP is 50 million Cu.mt.
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t be / ood) s 50 o Cu tvalued at US$ 55.5 billion.
Madhya Pradesh | December 2008
Th t f th t tThrust areas of the state (7/11)
Forest map of MP: Classification of MP land mass
ForestForest31%
Non-forest69%
R d 65 36Reserved 65.36
Protected 32.84
Unclassified 1.70
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Madhya Pradesh | December 2008
Th t f th t tThrust areas of the state (8/11)
• The state's a major producer of coalMineral and stores• Rich and vast mineral deposits include The state s a major producer of coal,
diaspore, pyrophyllite, manganese, dolomite, glass sand and fire clay.
• Rich and vast mineral deposits include diamonds, slate, pyrophyllite, diaspore, coal, limestone, copper ore and manganese among others. Besides, the state also has favourable geological and Mineral- No. state also has favourable geological and geotectonic settings.
• Active mining of these minerals is generating revenue of more than US$ 118 65 million per annum
based industry
of units
Location
Cement 7 Rewa, Satna, Damoh,Katni, Neemuch
Shahdol Umaria Sidhi118.65 million per annum.• MP is the sole producer of diamonds in
India.• It possesses 41.36 per cent of the total
Thermal power 10Shahdol , Umaria, Sidhi,Satna, Betul, Damoh,Katni, Rewa, Ujjain
Hydrated lime 25 Katni and Satna
Slate pencil 155 Mandsaur
national reserves of copper ore.• Thickest coal seam (135m) of Asia is
found at Singrauli coalfield in Sidhidistrict.
Roofing (Manglore) tiles 8 Hoshangabad, Balaghat
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d st ct
Madhya Pradesh | December 2008
Th t f th t tThrust areas of the state (9/11)
Reserves of important minerals of MP v/s rest of India
MP’s mineral-wise revenue (2004-2005)
34.3
5
13.3
5
294.
7
1867
.53
44.3
1820
5
6267
.01
144
80%
100%
Total Minor Minerals (US $ 11.38 mn)
0 ca
rats
)
mn
tons
)
2 (m
n to
ns)
8.63
(mn
tons
)
06.1
9 (m
n to
ns)
4074
8 (m
n to
ns)
6994
1.17
(mn
tons
)
1434
(bcm
)
133
40%
60%Total Major
Minerals (US$ 151.67
mn)
1334
.35
(‘000
22.5
9 (m
712.
52
7348 40 24 16
0%
20%
ond
ore
ore
mite ore
oal
one
ane
Minerals US$ (‘000) Minerals US$ (‘000)
Coal 118656 Ocher 4
Limestone 26500 Bauxite 280
Dia
mo
Pyr
ophy
llite
& di
aspo
Cop
per o
Dol
om
Man
gane
se o C
Lim
est o
Coa
l bed
met
ha Copper ore 2044 Rock Phosphate 144
Manganese 927 Pyrophillite/diaspore 178
Diamond 929 Calcite 4
Dolomite 229 Shale Slate 2
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P
All India MP
32
Source: Directorate of Geology & Mining, MP
Laterite 89 Kaolin 7
Fire Clay 116 Other minerals 1582
Source: Directorate of Geology & Mining, MP
Madhya Pradesh | December 2008
Th t f th t tThrust areas of the state (10/11)
Power sector• Ultra Mega Project in MP Energy demand projections in MP
5627059876
6371567799
72145
• Ultra Mega Project in MP– The Central government is setting up Ultra
Mega Power Projects in five locations in the country.
– The project has been first initiated in MP
Energy demand projections in MP
4969552880The project has been first initiated in MP
and is at an advanced stage of establishment.
– Sasan in MP, a pithead location based on domestic coal availability (while other proposed plants would be imported fuel-based) is identified for setting up this project.
– Project would require an investment of about US$ 3 3 billion 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12about US$ 3.3 billion.
– The project would utilise super critical technology to ensure higher efficiency and lower CO2 emissions.
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Madhya Pradesh | December 2008
Th t f th t tThrust areas of the state (11/11)
Power sector Upcoming projects in MP (indicative)• Major private players such as
Reliance, Essar and Jaypee Group have acknowledged the potential of MP and have proposed investment plans in the
Thermal Power projects
MalwaTPS Purni, District Khandwa 2X500 MW
Essar Group Mahan coal field atp p pstate.
Essar Group Project
Mahan coal field at Sidhi-Singrauli fields 1000 MW
Jaypee Group Siddhi 1000 MW
Hydel Power projects
Marhikhedahydro project, extension
Shivpuri. 1x20 MW
Tawa HEP(M/s Hindustan Hoshangabad 13.5 MW(Electro Graphite)
g
Coal bed methane
Reliance Energy Shahdol
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Madhya Pradesh | December 2008
K PlKey Players
• The state houses around 1,800 companies and 19 industrial growth
export a variety of products and services to both developed and developing
centres that are located near major cities. This makes good social infrastructure easily accessible to industrial units.
countries.
• There are around 171,000 small-scale units that contribute significantly to the state’s economy.
• MNCs such as Cadbury BridgestoneMNCs such as Cadbury, Bridgestone, Hindustan Lever, Coke and renowned Indian companies such as Ranbaxy, Tata, Grasim, Hindustan Motors, Eicher, Kinetic Raymonds Ruchi Soya LupinKinetic, Raymonds, Ruchi Soya, Lupin, Crompton Greaves, Godrej, and several other big groups have their presence in Madhya Pradesh.
• Apart from meeting the local
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• Apart from meeting the local requirements, these companies also
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Madhya Pradesh | December 2008
K l IT/IT SKey players: IT/ITeS
• Set up in 1981.
• Revenues of US$ 4.18 billion in 2007-08 recording a 35 per
Infosys
• Established in 1945.
• Revenues of US$ 4.97 billion i 200 08 di 36
Wipro
• Set up in 1997.• Formerly known as GE
Capital International
Genpact
• Set up in 1997.• Accenture India, the wholly-
owned subsidiary of the
Accenture
in 2007-08 recording a 35 per cent growth over revenues of US$ 3.12 billion in 2006-2007.
• Areas of IT consulting, modular global sourcing, process re-engineering, and BPO
in 2007-08 recording a 36 per cent growth over revenues of US$ 3.56 billion in 2006-2007.
• Areas of IT services, product engineering technology
Capital International Services.
• The company has recorded a turnover US$ 600 million during 2006.
• Provides a wide range of business process,
owned subsidiary of the $16.65-billion global management consulting and outsourcing firm.
• Total 35,000 employees ; 10,000 in the BPO (business g g,
services.
• Has operations in Australia, China and US.
• Marketing and technological alliances with FileNet IBM Intel Microsoft
engineering, technology infrastructure services, BPO and other consulting solutions.
• Provides services such as application d l t d l t &
p ,technology and knowledge services, including Finance & Accounting, Collections & Customer Relations, Insurance, Procurement & Supply Chain, Analytics, S ft IT I f t t
process outsourcing) space and the remaining 25,000 people in the business consulting and systems integration and technology di i i t l b lFileNet, IBM, Intel, Microsoft,
Orcale etc.
• Capacity of over 60,000 seats and is in the process of adding another 30,000 seats.
• Has operations at multiple locations in Bangalore and
development, deployment & maintenance, business intelligence, CRM.
• Based out of Bangalore, the company has 54 development centres and 30
ffi d
Software, IT-Infrastructure. • Presently the company
employs about 20,000 professional .Bangalore centre has about 1500 employees.
divisions to serve global clients.
• Bangalore operations has three centres with around 8,000 employees.
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locations in Bangalore and Mysore in Karnataka.
offices spread across India, N. America, Middle East and Europe.
Madhya Pradesh | December 2008
K lKey players
• ACC is one of the largest cement manufacturing companies in India, with a
ACC Ltd.
• Cadbury India is a subsidiary of Cadbury Schweppes, the world’s
Cadbury India Ltd.
• Coca-Cola India, one of the largest companies in the beverage market, has
Coca Cola India
• One of India’s leading pharmaceutical and healthcare companies.
Nicholas Piramal India Ltd.
pcement production capacity of 16 million tonnes per annum.
• ACC is a pioneer in cement and RMC
The company has a
pp ,largest confectionery and third-largest soft drinks company.
• Cadbury India had sales of over US$ 150 million in 2003
beverage market, has invested more than US$ one billion in India over the past decade.
• In Madhya Pradesh, Coca-Cola has a plant at Pilukhedi in Raisen
p• NPIL ranks fourth in
domestic formulations sales and second in total domestic pharmaceuticals sales.
• Its Pithampur plant in • The company has a
countrywide distribution network and manufactures all types of cement.
• In Madhya Pradesh, ACC has a 1.7 MTPA cement
l t t K d l t
2003.
• The company employs nearly 2000 people across India
• Cadbury India has one of its main production plants
Pilukhedi in Raisendistrict, near Bhopal.
• The company plans to invest US$ 6.7 million for expanding the operations of its plant at Pilukhedi.
p pMadhya Pradesh is accredited by reputed organisations such as Allergan, Novartis, Solvay and VAX..
• Besides strengthening its plant at Kymore and plans to invest US$ 3.3 million to expand its manufacturing capacity of roofing products.
• This will increase its production from 68,000 t f b t fi t
its main production plants at Malanpur, near Gwalior.
manufacturing facilities, it also plans to invest US$ 45 million to enhance its R&D activities.
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tonnes of asbestos roofing to 78,000 tonnes.
Madhya Pradesh | December 2008
K lKey players
• Procter & Gamble, India is one of the country’s most established and fastest
Procter & Gamble
• Eicher Motors, part of the US$ 355 million Eicher Group, is a major player in the Indian automobile industry
Eicher Motors Ltd
• Birla Corporation Ltd. is the flagship company of MP Birla Group
Birla Corporation Ltd.
established and fastest growing FMCG companies.
• The company has a turnover of over US$ 200 million.
automobile industry.
• Manufactures and markets commercial vehicles with Gross Vehicle Weight (GVW) ranging between five to 25 tonnes.
• One of the leading manufacturers of
MP Birla Group.• The company’s main
areas of business include jute, cement, synthetic yarn, calcium carbide, industrial gases PVC coated
• The company has a hi-tech detergent manufacturing plant in the Raisen district of the state.
gcommercial vehicles in India
• Manufacturing facility is at Pithampur, Madhya Pradesh. This state-of-the-art plant has a total area of 72 acres with 18,000 Sq. mt as the covered area
gases, PVC coated fabrics, PVC floor coverings, auto trims, healthcare and education.
• Birla Corporation has joint t d mt. as the covered area.
• The plant houses top-of-the-line equipment, a robust infrastructure and has an annual production capacity of 30,000 vehicles.
• Recently invested US$ 22 million for the
ventures and collaborations with world leaders such as DLW AG of Germany, Rhone Poulenc of France, Sweden-based
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manufacture of heavy commercial vehicles at its Pithampur plant.
Ericsson Cables & AB and ABB, GE,Toshibaand AEI Cables.
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Madhya Pradesh | December 2008
Doing Business
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Madhya Pradesh | December 2008
K l i dKey approvals required
List of approvals and clearances required Departments to be consultedPrior to setting up the unito to sett g up t e u t
Registration District trade and industries centre
Allotment of land/shed District trade and industries centre
Permission for land use District authorities
No objection certificate under water and air Act Madhya Pradesh pollution board
Approval for construction activity and building plan Development authority
No objection certificate Fire department
P i i l t d t i t ti C t l d t t i d t tProvisional trade tax registrations Central and state excise departments
Registration under central sales tax Act 1956 Central and state excise departments
Before commencement of production
No objection certificate under of water and air Act Madhya Pradesh pollution l boardNo objection certificate under of water and air Act Madhya Pradesh pollution l board
No objection certificate Fire department
Permanent trade tax registration under Central and state excise departments
Registration under central sales tax Act 1956 Central and state excise departments
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After commencement of production/activity
Registration Industries department
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Madhya Pradesh | December 2008
A t f d i b i i th t tAverage cost of doing business in the state
Sector Cost*
1. Manufacturing
A. Land price (US$/Sq. mt.) 4.8 - 28.7
2. Electricity (US cents) 0.086 - 0.124
3. Office space rent (US$/Sq. mt./month) 0.48 - 0.96
4. Residential rent (US$/three bedroom flat/month) 268 - 335
5. Five-star hotel room (US$/night) 76.6 - 95.7
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Madhya Pradesh | December 2008
O ll b i li tOverall business climate
Overall business climate – Madhya Pradesh• 31 per cent of the state is under forest cover with a largely unexploited species of rare, valuable medicinal-herbal
plants
• Over 2,000 Km. of roads being developed with Private Partnership (BOT)
• India’s first operational Greenfield SEZ at Indore.p
• Offers diverse tourists destinations catering to various segments of tourism such as religious (Bhojpur), eco/adventure (Panchmari), heritage (Sanchi, Khajuraho) tourism etc.
• Third-largest producer of cement in India
• Various blocks available for power, cement, iron and steel units
• Over 18,000 technical graduates and 230,000 graduates add to workforce each year.
• 12 blocks with reserves totaling 2,585 million tonnes of coal has been identified
• Over 144 BCM of coal bed methane reserves available
• Largest producer of pulses and oilseeds in the country (75 per cent of soyabean production)
• Favourable climatic conditions for cotton and over 40,000 power-looms driving the textile industry
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• Over 100 agricultural farms with an area of over 20,000 acres is available on lease to investors
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Madhya Pradesh | December 2008
Overall State Competitiveness
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Madhya Pradesh | December 2008
Ad t M dh P d hAdvantage Madhya Pradesh (1/2)
Destination – Madhya Pradesh
Delhi(740 Km.)
(MPV - 789.5)
Fastest mover in
Fastest mover in infrastructure development.
Ranks second in terms of
Ranks third in terms of law and order.
Mumbai
Ahmedabad(570 Km.)
(MPV - 220.63)
Kolkata(1350 Km.)
Being centrally located,the state is easilyaccessible for all the key
Fastest mover in overall performance among the
large states in the country.
agriculture. governance.
Mumbai(780 Km.)
(MPV -1000)Pune
(800 Km.)(MPV - 206.51)
Bangalore(1400 Km.)
Chennai(1430 Km.)
Hyderabad(840 Km.)
(MPV - 257.9)
( )(MPV - 613.19)
Key markets(Distance from Bhopal)
accessible for all the keyconsumer markets in thecountry.
g y
Cost of skilled labour is US$ 2.4/day vis-à-vis US$ 3 5 to 4 0/day in metros
Source: (Reference: RK Swamy)( )
(MPV - 254.52)(1430 Km.)
(MPV -362.84) MPV – Market Potential Value
3.5 to 4.0/day in metros.
* Fastest mover is the state where the rate of improvementbetween 2003 & 2006 was greater than that between 1991 &2003
- Distances rounded off
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**Source: India Today (September ‘06 Issue)
Madhya Pradesh | December 2008
Ad t M dh P d hAdvantage Madhya Pradesh (2/2)
Savings in office space rates (A comparison of rates in central business districts)
Savings in Land cost(Estimated value for multi product SEZs)(A comparison of rates in central business districts) (Estimated value for multi-product SEZs)
150Mumbai
DelhiAhmedabad 80
100
Vishakapatnam
0
50
100
BangaloreBhopal
0
20
40
60ChennaiIndore
ChennaiIndore Greater NoidaJaipur
PuneHyderabadChandigarh
Bhopal and Indore have substantial cost advantages when compared with other tier III and
The cost of land is one of the lowest in the country Even central hubs such as Indore and
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advantages, when compared with other tier III and IV cities.
country. Even central hubs such as Indore and Bhopal fare well against other cities in terms of low land cost.
Madhya Pradesh | December 2008
O ll t t titiOverall state competitiveness (1/2)
Parameter Madhya Pradesh
Opportunities in type of industry
Tourism High
IT-based industries Medium
Food processing industry HighFood processing industry High
Pharmaceuticals and bio-tech Low
Agro-based industry High
Mineral-based industry HighMineral based industry g
Engineering industry Medium
Chemicals industry Medium
Handloom and handicrafts sector Low
Industrial infrastructure – existing and proposed
Power High
Transportation High
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Industrial estates/areas High
STP/IT parks Medium
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Madhya Pradesh | December 2008
O ll t t titiOverall state competitiveness (2/2)
Parameter Madhya PradeshPolicy incentives
Setting up and carrying out business High
Industrial infrastructure – existing and proposed
EPZ HighEPZ High
IIDC High
Industrial growth centre High
Food processing park HighFood processing park g
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Madhya Pradesh | December 2008
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