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11MARCH 2017 For updated information, please visit www.ibef.org
MADHYA PRADESH THE LAND OF DIAMONDS
MARCH 2017 (As of 24 March 2017)
22MARCH 2017
❖ Executive Summary …………….………. 3
❖ Advantage State ………………………… 4
❖ Vision 2018 ………………………….…… 5
❖ Madhya Pradesh – An Introduction …… 6
❖ Budget 2016-17…….………………..…. 17
❖ Business Opportunities …………..….... 41
❖ Doing Business in Madhya Pradesh .... 71
❖ State Acts & Policies …………..….…... 72
For updated information, please visit www.ibef.org
MADHYA PRADESH THE LAND OF DIAMONDS
MARCH 2017
33MARCH 2017 For updated information, please visit www.ibef.org
EXECUTIVE SUMMARY
Strong economic growth
• GSDP of Madhya Pradesh grew at a compound annual growth rate (CAGR) of 11.86%
during 2005-06 to 2015-16.
Rich in natural
resources
• The state is rich in natural resources: fuels, minerals, agriculture & biodiversity.
• Madhya Pradesh has ample reserves of coal & coal-bed methane (8.38% of India’s total
coal reserves & 218.04 BCM of methane).
• The state has the largest reserves of diamond & copper in India.
• Madhya Pradesh has significant reserves of limestone, manganese & dolomite.
Potential for tourism
• Madhya Pradesh boasts of rich ancient cultural & religious heritage.
• Due to a thick forest cover, the state has immense potential for wild life, adventure & eco-
tourism.
Infrastructure support
• Due to its centralised location, Madhya Pradesh has excellent connectivity. Many FMCG
companies have moved their warehouses here to save on logistics expenses.
• Upcoming theme based SEZs near Jabalpur, industry parks in Indore & food parks at
multiple locations aim to promote sectoral growth.
• MP is emerging as a solar power hub & is targeting generation of 2,650 MW of solar
power by 2017.
MADHYA PRADESH THE LAND OF DIAMONDS
Source: TechSci Estimates based on “Advanced Estimates” provided by Directorate of Economics
and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas
44MARCH 2017 For updated information, please visit www.ibef.org1 From Bhopal
Strategically located business hub
• The state is centrally located in India. Major consumer goods
multinationals are situated in Madhya Pradesh in order to
access major consumer markets & metro urban communities
like New Delhi (740 km1), Mumbai (780 km1), Kolkata (1,350
km1) & Chennai (1,435 km1)
• Geographical proximity with the automotive hub of NCR has
favourably impacted Madhya Pradesh’s auto ancillary
industry. The state’s well developed automotive cluster is
now home to around 30 auto component & ancillary units.
Advantage
Madhya
Pradesh
ADVANTAGE MADHYA PRADESH
MADHYA PRADESH THE LAND OF DIAMONDS
Attractive investment avenues
• With around 33% of the region under forests, Madhya Pradesh
has an enormous potential for drug, wood & agro-based
commercial enterprises. Ideal soil & climatic conditions have
made it a primary producer of coarse cereals, oilseeds &
soybean in India.
• The cluster-based advancement methodology promotes
investments in automotive, textiles & biotechnology.
• Plentiful limestone & coal reserves give development avenues
for the cement industry.
• A rich cultural heritage, scenic beauty & wildlife sanctuaries
offer a promising tourism industry. Indore is all set to be the
new IT capital with TCS & Infosys opening their offices.
Policy and infrastructure support
• Madhya Pradesh offers distinctive monetary & strategy/policy
incentives for organisations under the Industrial Promotion Policy-
2010 & Action Plan, other than strategies/ policies for IT,
biotechnology, tourism & SEZs. To pull in investors and promote
entrepreneurs, the state government has selected TRIFAC, an
agency that encourages a single window system, for speedy
approvals of different clearances & consents.
• The state government has made some well-planned infrastructure
investments for roads & railroad systems. Government offers
various subsidies under ‘Industrial Investment Promotion
Assistance (IIPA) under 2014 Schemes’ for investment in
development of road, electrification, water, industrial parks, etc.
Rich resource pool
• Madhya Pradesh adds around 270,000 graduates to the
workforce each year, of which around 90,000 have technical
skills. At labour costs of US$ 3.7 per day, the state has a
significant cost advantage over metros.
• The state houses some of the country’s most reputed institutes
including Indian Institute of Management, Indian Institute of
Foreign Management & Indian Institute of Technology.
55MARCH 2017 For updated information, please visit www.ibef.org
MADHYA PRADESH VISION 2018
MADHYA PRADESH THE LAND OF DIAMONDS
Agriculture
Skill
development
Infrastructure
Transport
HousingInvestment
promotion
Tourism
• Expand the outreach of
agriculture technology &
irrigation to remote farms.
• Promote farm level
diversification and value
addition.
• Connect all villages through
world class highways
• To be a leader in renewable
energy & green technology
• Keep the state power surplus by
addition to the power generation
capacity
• Skill development by expanding
training infrastructure & capacity
to aid 1 million youth in attaining
wages & self employment
• Develop the transportation
network to enhance rural
connectivity
• Reform the institutional
machinery for creating public
transport facilities
• Improve civic infrastructure,
including public & household
sanitation facilities
• Expand availability of
affordable housing
• Enhance the ease of doing
business for the benefit of
investors
• Attract higher investments in
manufacturing, services &
labour intensive sectors
• Make the state a world class
tourist destination
• Promote religious, adventure
& heritage tourism & attract
private investment
Environment • Promote social & agro forestry
• Revitalise ground water
resources
• Private sector participation in
maintaining waste disposal &
water conservation
Vision 2018
Source: Government of Madhya Pradesh
66MARCH 2017 For updated information, please visit www.ibef.org
MADHYA PRADESH FACT FILE
Madhya Pradesh is located in central India. The state is
surrounded by Uttar Pradesh in North, Chhattisgarh in East,
Maharashtra in South, Gujarat and Rajasthan in west.
The most commonly spoken language of the state is Hindi.
English and Marathi are the other languages used.
Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of
the key cities of the state.
There are 11 agro-climatic conditions and a variety of soils
available in the state to support cultivation of a wide range
of crops.
Source: Government of Madhya Pradesh website, National Informatics
Centre Madhya Pradesh
Parameters
Madhya
Pradesh
Capital Bhopal
Geographical area (sq km) 308,000
Administrative districts (No) 51
Population density (persons per sq km) 236
Total population (million) 72.6
Male population (million) 37.6
Female population (million) 35.0
Sex ratio (females per 1,000 males) 931
Literacy rate (%) 70.6
MADHYA PRADESH THE LAND OF DIAMONDS
Source: Maps of India
77MARCH 2017
Parameter
Madhya
Pradesh
All states Source
Economy 2015-16 2015-16
GSDP as a percentage of all states’ GSDP 4.16 100.0
TechSci Estimates based on “Advanced Estimates”
provided by Directorate of Economics and
Statistics of Madhya Pradesh
GSDP growth rate (%) 16.6 8.71
TechSci Estimates based on “Advanced Estimates”
provided by Directorate of Economics and
Statistics of Madhya Pradesh
Per capita GSDP (US$) 1,188.98 1,546
TechSci Estimates based on “Advanced Estimates”
provided by Directorate of Economics and
Statistics of Madhya Pradesh
Physical Infrastructure
Installed power capacity (MW) 18,917.16 305,554.25 Central Electricity Authority, as of August 2016
Wireless subscribers (no) 64,379,812 1,078,422,215
Telecom Regulatory Authority of India, as of
October 2016
Internet subscribers (no) 21,270,000 367,480,000
Telecom Regulatory Authority of India, as of
September 2016
National Highway length (km) 5,193.57 100,087.08 NHAI & Roads and Building Department
Airports (no) 5 125 Airports Authority of India
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MADHYA PRADESH IN FIGURES … (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
88MARCH 2017
Parameter
Madhya
Pradesh
All states Source
Social Indicators
Literacy rate (%) 70.6 73.0 Census 2011
Birth rate (per 1,000 population) 26.3 21.6 SRS Bulletin
Investment
FDI equity inflows (US$ billion) 1.291 288.63
Department of Industrial Policy & Promotion,
From April 2000 to March 2016
Industrial Infrastructure
PPP projects completed & operational (no) 110 1,246
DEA, Ministry of Finance, Government of India,
July 2016
Operational SEZs (No) 1 186
Ministry of Commerce & Industry, Department
of Commerce, July 2016
1Including Chhattisgarh
PPP: Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
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MADHYA PRADESH IN FIGURES … (2/2)
MADHYA PRADESH THE LAND OF DIAMONDS
99MARCH 2017
At current prices, the gross state domestic
product (GSDP*) of Madhya Pradesh for 2015-
16 stood at US$ 86.32 billion.
Between 2005-06 and 2015-16, GSDP of the
state grew at a CAGR of 11.86%.
Source: GSDP* - “Advanced Estimates” provided by Directorate of
Economics and Statistics, Government of Madhya Pradesh
GSDP of Madhya Pradesh at current prices (in US$ billion)
For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – GSDP
MADHYA PRADESH THE LAND OF DIAMONDS
28.15 32.03
40.1 42.75 48.08
57.7
66.49 68.52 74.8
84.27 86.32
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
1010MARCH 2017
The net state domestic product (NSDP#) of
Madhya Pradesh was about US$ 77.55 billion in
2015-16.
During 2005-06 and 2015-16, state’s NSDP
grew at a CAGR of about 12.06%.
NSDP of Madhya Pradesh at current prices (in US$ billion)
For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – NSDP
MADHYA PRADESH THE LAND OF DIAMONDS
Source: NSDP# - “Advanced Estimates” provided by Directorate of Economics
and Statistics of Madhya Pradesh, Government of Madhya Pradesh
24.83 28.28
35.49 38.03 42.74
51.0
59.05 61.61 67.4
75.6 77.55
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
1111MARCH 2017
The state’s per capita GSDP^ in 2015-16 was US$ 1188.98
in comparison with US$ 389.4 in 2005-06.
Per capita GSDP of the state increased at a CAGR of
10.78% during 2005-06 and 2015-16.
Source: Per Capita GSDP^ - calculated using GSDP in million
US$/population in million
Per capita GSDP of Madhya Pradesh at current prices (in US$)
For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – PER CAPITA GSDP
MADHYA PRADESH THE LAND OF DIAMONDS
427 477
587 616 680
805.0
912 926 995.0
11211188.98
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
1212MARCH 2017
The state’s per capita NSDP& in 2015-16 was US$ 1068.26
in comparison with US$ 377 in 2005-06.
Per capita NSDP in the state increased at a CAGR of
10.98%, during 2005-06 and 2015-16.
Source: per capita NSDP& - calculated using NSDP million US$/
Population in million
Per capita NSDP of Madhya Pradesh at current prices (in US$)
For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – PER CAPITA NSDP
MADHYA PRADESH THE LAND OF DIAMONDS
377 422
520 548 604
711.0
810 828 896.0
10061068.26
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
1313MARCH 2017 For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP
MADHYA PRADESH THE LAND OF DIAMONDS
In 2015-16, the tertiary sectorµ contributed 43% to the state’s
GSDP at current prices, followed by primary sectorµ with a
contribution of 39.23% & secondary sectorµ contributing
17.8%.
At a CAGR of 15.32%, the primary sector witnessed the
fastest growth among the 3 sectors, during 2004-05 to 2015-
16. This was driven by agriculture, forest & logging & fishing.
The tertiary sector expanded at a CAGR of 11.37% between
2004-05 & 2015-16. Growth has been driven by trade, hotels,
real estate, finance, insurance, transport, communications &
other services.
The secondary sector expanded at a CAGR of 7.69% between
2004-05 and 2015-16 driven by manufacturing, electricity, gas
& water supply & construction sectors.
Madhya Pradesh will be the 1st state in India to release a
happiness index in 2018. The index, based on questionnaires
will assist the government in gauging the happiness quotient
of people in India.
A 4-member team of the newly constituted happiness
department is to visit Bhutan in March 2017, to study &
understand the Bhutanese model, to execute, implement &
achieve the objective. The government has passed an amount
of US$ 0.71 million in the budget, for the same.
Source: Sector-wise %share of GSDPµ - “Advanced Estimates”
provided by Directorate of Economics and Statistics of Madhya
Pradesh, Government of Madhya Pradesh
GSDP composition by sector
CAGR
15.32%
11.37%
7.69%
28%
39.23%
27%
7.80%
45% 43%
2004-05 2015-16
Primary Secondary Tertiary
1414MARCH 2017
Source: MP State Facts Profile
Department of Agriculture and Cooperation, National Horticulture
Board, TechSci Research
1Thousand bales of 170 kg each
Crop
Annual production in
2015-16
(‘000 metric tonnes)
Wheat 15,644.1
Fruits 6,290
Vegetables 14,797.74
Sugarcane 4,716.1
Onion 2,848
Rice 3,408.4
Food grains 27,876.6
Spices 699.10
Honey 1.8520
Coarse cereals 3,658.8
Total pulses 4,820
Agriculture is the main source of livelihood for the people of
the Madhya Pradesh. In 2015-16, the state recorded
utilisation of 22,501.8 thousand hectares of land for
production of horticulture crops.
Wheat, soyabean, gram, sugarcane, rice, maize, cotton,
rapeseed, mustard & arhar are the major crops of the state. In
2015-16, total food grain production in the state stood at
27.88 million metric tonnes.
In 2014-15, total pulses production in the state stood at
around 4.82 million tonnes. In addition, the share of Madhya
Pradesh in the overall production of pulses in India was
around 27.8%.
Madhya Pradesh is the largest producer of pulses, oilseeds
soyabean and gram in the country. The state is the 2nd
highest producer of wheat, masoor & mustard across India. It
is one of the leading producers of garlic & coriander. The
production of wheat, cotton, baajra, corn, gram, soyabean,
mustard, groundnut, paddy, jowar & corn in the state, is above
the national average.
Total budget allocation for the agricultural & allied industries
during 2016-17 is estimated to be US$ 843.42 million.
For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION…(1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
15For updated information, please visit www.ibef.org
MADHYA PRADESH THE LAND OF DIAMONDS
MARCH 2017
As per budget 2016-17, various seminars were conducted during 2015-16, for promotion & development of bio-products as well
as bio-agriculture in the state.
During 2016-17, the government decided to establish custom hiring centre & implement grant schemes for the delivery of
agricultural instruments across the state.
In order to overcome the drawbacks of National Agricultural insurance Scheme, a new scheme – Prime Minister Crop Insurance
Scheme was announced by the Prime Minister, which would be effective from 2016.
Moreover, for agricultural soil, water conservation as well as agricultural research & education, the state government has
allocated an amount of US$ 373.96 million as per the budget 2016-17.
During 2016-17, US$ 1.14 billion would be sanctioned by the state government for irrigation & flood control sector in the state.
Moreover, an allocation of US$ 113.5 million was made by the state government for horticulture & food processing sector.
ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION…(2/2)
Source: State Budget 2015-16
1616MARCH 2017 For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – FDI INFLOWS & INVESTMENTS
MADHYA PRADESH THE LAND OF DIAMONDS
According to the Department of Industrial Policy &
Promotion (DIPP), cumulative FDI inflows1, from April
2000 to March 2016, totalled to US$ 1.29 billion.
Power generation & manufacturing were the key sectors
which attracted the majority share of FDI inflow during
2014-15. In addition, the investments in real estate &
services are also gaining momentum.
In 2014-15, exports from Madhya Pradesh reached US$
4.19 billion in value terms, reflecting a CAGR of 8.4%
between 2008-09 & 2014-15
With a capital investment of US$ 488.62 million
Government of Madhya Pradesh approved 6 projects in
January 2017.
FDI equity inflows1, 2008-09 to 2014-15 (US$
million)
Source: Department Of Industrial Policy & Promotion
1Including Chhattisgarh;
44 54
451
123
220
119 100 80
1717MARCH 2017
Source: State Budget 2016-17
For updated information, please visit www.ibef.org
STATE BUDGET 2016-17
MADHYA PRADESH THE LAND OF DIAMONDS
Annual budget allocation in the state, for 2016-17, is proposed to be US$ 9.76 billion.
Sector Budget - 2016-17 (US$ million)
Agriculture & allied activities 843.42
Rural development 1,771.6
Irrigation and flood control 1,144.96
Industry and mining 424.77
Transport 711.61
Science, technology and environment 35.69
General economic services 141.58
Social services 4,635.95
General services 50.66
1818MARCH 2017 For updated information, please visit www.ibef.org
Madhya Pradesh has 20 national highways measuring
5,184.57 km. The state also has 10,859 km of state
highways.
Development of major roads in the state is managed by
Madhya Pradesh Road Development Corporation
Limited (MPRDC), which executes tasks taken up under
Public–Private Partnership (PPP) & those supported by
Asian Development Bank (ADB). As per the Department
of Economic Affairs, the state had 131 government PPP
projects in the roads sector at various stages of
development.
Under Prime Minister Graamin Sadak Yojana, during
2016-17, the state government has set a target of
constructing around 2,000 km of roads in the state.
For the development of various roads in the state,
allocation of US$ 1.12 billion has been proposed by the
state government
As per the Budget Scheme 2015-16 construction of
7,575 roads with total length of 19,386 km for linking
9,109 villages under Mukhyamantri Gram Sadak Yojana
is targeted by the Government of Madhya Pradesh.
In February 2017, the cabinet sanctioned the renovation
of 10,000 km of rural roads, under the Chief Minister's
Rural Roads Scheme. Source: NHAI, Ministry of Road Transport & Highways, State Budget 2016-17
12015-16
Road type Road length (km) (2015)
National highways 5,193.57
1
State highways 10,859
Major district roads 19,574
Village roads 24,209
Road length 59,835
PHYSICAL INFRASTRUCTURE – ROADS
MADHYA PRADESH THE LAND OF DIAMONDS
As per the state budget 2016-17, work on development of
various district roads had started in 2015-16 and the
renovation of these roads is expected to be completed over
a span of three years. However, for this purpose, the state
government is trying to secure a loan from ADB as well as
new development banks.
As of November 2016, the New Development Bank created
by BRICS countries approved a loan of US$ 350 million for
the development of major district roads in the state.
1919MARCH 2017
Madhya Pradesh has around 4,954 km of railway lines & the state
is connected to different states of the country through more than
425 trains which travel on daily basis.
The railway network in Madhya Pradesh primarily falls under the
West-Central Railways, which was formed in 2002 and is
headquartered in Jabalpur. Part of the state is also covered by
Central and Western Railways.
Being centrally located, the railway network in the state assumes
great significance. Madhya Pradesh’s capital, Bhopal is one of the
foremost railway junctions in the country, as 220 trains travel
through the capital alone.
Mineral and agro-based industries in Madhya Pradesh are highly
dependent on the railway network of the state. It supports these
industries by transporting bauxite, limestone, dolomite, clinker,
fertiliser & de-oiled cake.
In February 2015, the state government affirmed the constitution
of Madhya Pradesh Metro Rail Company for the advancement of
light metro projects in Bhopal and Indore.
As per annual budget 2016-17, construction work on phase-I of 28
km long Bhopal metro rail & 31 km long Indore metro rail was
initiated in 2015-16, and is expected to be completed by 2018-19.
For these projects, a total loan of US$ 458.30 million & US$ 1.83
billion would be provided by the central government as well as
Japan International Corporation Agency respectively.
Source: Maps of India
For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – RAILWAYS
MADHYA PRADESH THE LAND OF DIAMONDS
Moreover, during 2016-17, the state government
allocated US$ 69.04 million for construction work on
phase-I of the 28 km-long Bhopal metro rail and 31 km-
long Indore metro rail.
In December 2016, Madhya Pradesh Cabinet approved
the detailed project reports (DPRs) of the Metro rail
projects for Bhopal and Indore, costing US$2.12 billion
2020MARCH 2017
Madhya Pradesh has 5 operating airports at Jabalpur, Bhopal, Indore, Gwalior & Khajuraho.
Indore & Bhopal airports are the busiest airports in the state. In March 2016, passenger traffic at Indore airport reached 141,765
passengers with overall aircraft movement of 1,209 aircrafts. For the same month, passenger traffic at Bhopal airport was 52,037
passengers with overall aircraft movement of 614 aircrafts.
Both Indore & Bhopal airports have strong cargo handling capacity. In March 2016, Indore airport handled 621 tonnes of cargo,
whereas Bhopal airport handled 78 tonnes of cargo. Modernisation work of Bhopal & Indore airports has also been completed. The
government has announced to undertake development of Gwalior & Khajuraho airports under the 12th Five Year Plan.
For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – AIRPORTS
MADHYA PRADESH THE LAND OF DIAMONDS
Source: Airports Authority of India
No. of passengers
Airport 2014-15 2015-16
Indore 1,353,300 1,692,892
Bhopal 416,284 662,615
Airport indicators in Madhya Pradesh
Aircraft movement
Airport 2014-15 2015-16
Indore 14,371 14,858
Bhopal 5,375 7,755
Freight (in tonnes)
Airport 2014-15 2015-16
Indore 6,315 6,992
Bhopal 937 1,153
2121MARCH 2017 For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – POWER … (1/3)
MADHYA PRADESH THE LAND OF DIAMONDS
Source: Central Electricity Authority;
(1) – Figures as of August 2016
As of August 2016, Madhya Pradesh had total
installed power generation capacity of 18,917.16
MW, comprising 5,867.62 MW under state utilities,
4,540.47 MW under central utilities and 8,509.07
MW under the private sector.
Of the total installed power generation capacity,
12,216.23 MW was contributed by thermal power,
3,223.66 MW was contributed by hydropower,
273.24 MW was contributed by nuclear power and
renewable power contributed 3,204.03 MW.
Madhya Pradesh is on its way to become a solar
power hub, with 114 projects currently.
The total budget allocation for the energy sector in
the state is estimated to be US$ 3.05 billion during
2016-17.
Installed power capacity (MW)
8,574 9,351
12,902
14,259
16,813
18,571 18,917
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17(1)
65%
17%
16%
2%
Thermal Power
Hydropower
Renewable Power
Nuclear Power
Break-up of installed capacity by source of power
generation (2016-171)
Source: Central Electricity Authority
1Upto August 2016
2222MARCH 2017
Madhya Pradesh Power Generating Corporation Ltd. is a
state owned company engaged in electricity generation.
The power distribution business is being managed through
3 government-controlled entities: Madhya Pradesh Poorv
Kshetra Vidyut Vitaran Company Ltd., Madhya Pradesh
Paschim Kshetra Vidyut Vitaran Company Ltd., & Madhya
Pradesh Madhya Kshetra Vidyut Vitaran Company Ltd.
Madhya Pradesh Power Transmission Company carries out
intra-state transmission of electricity, State Transmission
Utility & State Load Dispatch Centre.
Madhya Pradesh Power Trading Corporation Ltd. deals with
power trading & other related activities.
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PHYSICAL INFRASTRUCTURE – POWER … (2/3)
MADHYA PRADESH THE LAND OF DIAMONDS
Segment Company name
Power generation
• Madhya Pradesh Power
Generating Corporation Limited
Power distribution
• Madhya Pradesh Poorv
Kshetra Vidyut Vitaran
Company Limited
(MPPoKVVCL)
• Madhya Pradesh Paschim
Kshetra Vidyut Vitaran
Company Limited
(MPPaKVVCL)
• Madhya Pradesh Madhya
Kshetra Vidyut Vitaran
Company Limited
(MPMaKVVCL)
Power
transmission
• Madhya Pradesh Power
Transmission Corporation
Limited
Power trading
• Madhya Pradesh Power
Trading Corporation Limited
Distributor Area covered
MPPoKVVCL
Jabalpur, Sagar, Shahdol and
Rewa
MPPaKVVCL Indore and Ujjain
MPMaKVVCL
Bhopal, Hoshangabad, Gwalior
and Chambal Source: Energy Department-Government Of Madhya Pradesh
2323MARCH 2017 For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – POWER … (3/3)
MADHYA PRADESH THE LAND OF DIAMONDS
Through the Atal Jyoti Abhiyaan, the state government aims to provide round-the-clock quality power supply.
The scheme is currently operational in six districts, namely Jabalpur, Mandla, Shahdol, Umaria, Anooppur and Burhanpur.
Under project name Vindhyachal, NTPC has commissioned the country’s largest power generation plant in the state. Unit-
13 of Vindhyachal TPP-V, with capacity of 500 MW, was commissioned in August 2015. With this the total approved
capacity of 4,760 MW was installed by the company.
The coal based Sasan UMPP aims to build large capacities at low cost. The resultant generated power would be sold at low
tariffs. In April 2015, the 3,960 MW Sasan ultra mega power project has been fully commissioned in Madhya Pradesh. The
project is being developed with an investment of US$ 4.21 billion. As of April 2016, the plant had achieved 100 per cent PLF
(plant load factor).
The Government of Madhya Pradesh allocated US$ 28.1 million for the development and promotion of new and renewable
energy in the state during 2016-17.
2424MARCH 2017
Telecom infrastructure- as of May 2016
Wireless subscribers 64,379,812
Wire-line subscribers 1,035,085
Internet subscribers
1
21,270,000
Teledensity (in%) 62.49
Source: Telecom Regulatory Authority of India,
Department of Telecommunications
1As of September 2016
According to Telecom Regulatory Authority of India (TRAI),
Madhya Pradesh had nearly 64.37 million wireless
subscribers & 1.035 million wireline subscribers, as of
October 2016.
As of October 2016, teledensity (telephone connections per
100 persons) in Madhya Pradesh was 62.49%.
The state has been identified by Ministry of Home Affairs for
provision of Telecom Connectivity in LWE affected areas.
The scheme is being executed by BSNL.
The state has given consent for establishment of BharatNet/
National Optical Fibre Network (NOFN) project. The project
is planned to connect all gram panchayats through optical
fibre, utilising existing fibres of PSUs viz. BSNL, RailTel &
Power Grid & laying incremental fibre wherever necessary
to bridge the connectivity gap between gram panchayats
(GPs) and blocks, for providing broadband connectivity.
For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – TELECOM
MADHYA PRADESH THE LAND OF DIAMONDS
Some of the major telecom operators in Madhya
Pradesh
Bharat Sanchar Nigam Limited (BSNL)
Bharti Airtel
Vodafone Essar
Idea Cellular
Reliance Communications
Tata Teleservices
2525MARCH 2017 For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (1/3)
MADHYA PRADESH THE LAND OF DIAMONDS
Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 27 projects costing around US$ 418.65 million
have been sanctioned for the development of urban centres such as Bhopal, Indore, Jabalpur and Ujjain.
Some of the key undertakings are in segments such as roads and flyovers, water supply, tempest-water drainage,
sewerage, solid-waste management and mass rapid transport systems.
The Asian Development Bank (ADB) has funded 16 ventures worth US$ 33.8 million for Bhopal in the regions of water
supply, sewerage and sanitation, tempest-water drainage and solid-waste management. Of the 16 undertakings, two have
been finished and others are at different phases of development.
The state government has built the Madhya Pradesh Urban Infrastructure Fund (MPUIF) for the improvement of urban
framework and the procurement of better administration in the state. MPUIF helps in sourcing funds for projects through
various sources, for example capital markets, line of credits and GOI fund (e.g. JNNURM, UIDSSMT, PFDF, VGF, and
RAY). The fund ensures cost administration and timely implementation of urban framework ventures.
Under the Urban Infrastructure and Governance (UIG) programme of JNNURM, five projects worth US$ 36.4 million
covering cities such as Bhopal, Indore and Ujjain have been approved and are in the transition phase.
Under the first phase of Chief Minister Infrastructure Development Scheme, work on development of roads, gardens,
footpaths, street lights, etc. was completed in across 277 cities of the state during 2015-16.
Under Swachh Bharat Mission, a total of 5,068 seats have been constructed in around 145 thousand personal and public
toilets of the state, as of 2015-16.
Source: Bhopal Municipal Corporation, NNURM, Ministry of Urban Development, Government of India
26For updated information, please visit www.ibef.org
MADHYA PRADESH THE LAND OF DIAMONDS
MARCH 2017
DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (2/3)
As per the budget 2016-17, following announcements were made for enhancement of urban infrastructure in the state:
Allocation of US$ 1.63 billion has been proposed by the state government for urban administration and development
in the state.
For the second phase of Chief Minister Infrastructure Development Scheme, the state government proposed an
allocation of US$ 42.10 million.
Under Affordable Housing in Partnership scheme, for each dwelling slum area, US$ 86 thousand has been allocated
by the central and the state government.
Provided sanction for the construction of 634 community and 1,77,807 individual toilets under Mukhya Mantri Shahri
Swacchata Mission.
The promotion of e-Governance has been started in the urban region of the state by E-Nagar Palika Project. For
increasing developmental activities in the state, a sum of US$ 1.09 billion will be provided by the government to the
state.
By 2018, the government is also aiming to provide 5,00,000 houses in different cities of the state.
Provided sanction for development of 60,000 houses for the urban poor by an allocation of US$ 248.8 million under
urban development scheme. In addition to this, a sanction of US$ 139.5 million has also been provided for 15,340
houses under Rajeev Awas Yojna.
HDFC Bank is planning to set up 10 new branches in Madhya Pradesh as a part of its expansion plan. In 2016 the
bank had 130 branches in MP, and 8-10 new branches are being planned to be opened in the state in current
financial year.
Source: Budget 2016-17
2727MARCH 2017
Focus areas of urban development in Madhya Pradesh
Water supply Sewerage system Solid-waste management Others
The average per capita water
supply in major cities, such as
Indore, is around 80 litres per day.
Under the JNNURM, cities are
being planned to achieve per capita
water supply of 135 litres per day
between 2015 and 2021.
Sixty seven projects worth US$
243.8 million have been approved
between March 13 and March 2014
and are in the transition phase for
water supply under JNNURM.
During 2015-16, the government
proposed an outlay of US$ 355.87
million for improving rural & urban
water supply under the Water
Supply and Sanitation Scheme.
In cities such as Indore,
around 55% of the
population is connected
to a sewage network.
Under the JNNURM,
the entire population in
the cities will be
connected to the
sewage network.
Three projects worth
US$ 100 million have
been sanctioned in
2006-07 for sewage
treatment under
JNNURM.
Indore and Ujjain generate
around 500 tonnes per day
(TPD) and 160 TPD of
solid-waste, respectively.
Under the JNNURM, the
entire solid waste is
expected to be collected
and treated.
A project worth US$ 10.7
million has been
sanctioned.
Three solid waste
management projects have
been identified in Dewas,
Sagar and Katni.
Two projects worth US$
75.6 million have been
sanctioned between
2006-07 and 2009-10
for improvement of the
drainage systems.
Seven projects worth
around US$ 139.5
million have been
sanctioned for
improvement of the
transport system.
Source: MP Trade & Investment Facilitation Corporation Ltd., JNNURM, Ministry of Urban
Development, Government of India, TechSci Research
For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (3/3)
MADHYA PRADESH THE LAND OF DIAMONDS
2828MARCH 2017 For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS … (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Name of project Sector PPP type Status
Project cost
(US$ million)
Road upgradation (Lebad-Jaora) Project Build-Operate-Transfer (BOT) Transport 64.30
Operation and
maintenance stage
Road Upgradation Project (Bankhlafata-Kogawa-
Borawa-Sarvardevala) Project
Not available Transport 5.14
Operation and
maintenance stage
Road upgradation (Jaora-Nayagaon) Project Build-Operate-Transfer (BOT) Transport 61.73
Operation and
maintenance stage
Road Upgradation Project (Bahari-Hanumana)
Project
Design-Build-Finance-Operate-
Transfer (DBFOT)
Transport 16.32
Operation and
maintenance stage
Road Upgradation (Bhopal-Dewas) Project
Design-Build-Finance-Operate-
Transfer (DBFOT)
Transport 65.21
Operation and
maintenance stage
Road Upgradation Project (Badwani-Palsood-
Sendhawa) Project
Design-Build-Finance-Operate-
Transfer (DBFOT)
Transport 15.89
Operation and
maintenance stage
Road Upgradation Project (Ashok Nagar-Vidisha)
Project
Build-Operate-Transfer (BOT)
Annuity
Transport 13.31
Operation and
maintenance stage
Electricity Distribution Project (Ujjain) Not available Energy 10.70
Operation and
maintenance stage
Road Upgradation Project (Ashapur-Khalwa-
Singhot) Project
Build-Operate-Transfer Annuity Transport 17.28
Operation and
maintenance stage
Dewas-Ujjain-Badnagar-Badnawar Road Project Build-Operate-Transfer (BOT) Transport 7.53
Operation and
maintenance stage
Road Upgradation Project (Alirajpur-Jobat) Project
Build-Operate-Transfer (BOT)
Annuity
Transport 6.92
Operation and
maintenance stage
Source: Department of Economic Affairs
2929MARCH 2017 For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS … (2/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Name of project Sector PPP type Status
Project cost
(US$ million)
Road Upgradation Project (Waraseoni-Lalbarra) Project
Design-Build-Finance-
Operate-Transfer (DBFOT)
Transport 6.50
Operation and
maintenance stage
Road Upgradation (Tyonda-Ganjbasoda) Project
Build-Operate-Transfer (BOT)
Annuity
Transport 22.32
Operation and
maintenance stage
Road Upgradation Project (Umari-Phoop-Pratapur) Project
Design-Build-Finance-
Operate-Transfer (DBFOT)
Transport 11.51
Operation and
maintenance stage
Road Upgradation Project (Ujjain-Unhel-Nagda-Ghiloda)
Project
Design-Build-Finance-
Operate-Transfer (DBFOT)
Transport 28.89
Operation and
maintenance stage
Road Upgradation Project (Ujjain-Simhastha) Project
Build-Operate-Transfer (BOT)
Annuity
Transport 10.79
Operation and
maintenance stage
Road Upgradation (Gwalior-Bhind up to UP Border) Project Build-Operate-Transfer (BOT) Transport 45.85
Operation and
maintenance stage
Road Upgradation Project (Uchera-Nagod-Singhpur-
Kalinnjer Road) Project
Design-Build-Finance-
Operate-Transfer (DBFOT)
Transport 17.22
Operation and
maintenance stage
Road Upgradation (Sheopur-Badora-Khawajapur) Project
Build-Operate-Transfer (BOT)
Annuity
Transport 9.45
Operation and
maintenance stage
Road Upgradation Project (Tikamgarh-Mehironi) Project
Design-Build-Finance-
Operate-Transfer (DBFOT)
Transport 4.49
Operation and
maintenance stage
Road Upgradation (Dehgaon-Bamori) Project
Build-Operate-Transfer (BOT)
Annuity
Transport 5.51
Operation and
maintenance stage
Road Upgradation Project (Tikamgarh-Jatara-Palera-
Nowgaon) Project
Design-Build-Finance-
Operate-Transfer (DBFOT)
Transport 15.69
Operation and
maintenance stage
Source: Department of Economic Affairs
3030MARCH 2017
Source: Ministry of Commerce & Industry
For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) … (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Indore SEZ
Notified area 1,113.72 hectares
Processing zone 519.95 hectare
Operational
26 industrial and 2 trading
units
Number of allotments 42
Number of units operating 41
Investment under
implementation
US$ 62.2 million (9 units)
Exports (2014-15) US$ 489.25 million
The state has one operational SEZ as of July 2016 with the name Crystal IT Park SEZ for IT & ITeS enabled services.
The SEZ aims to provide an international, competitive and hassle-free environment for export-oriented production.
It is exempted from custom duty on import of capital goods, raw material and spares, among others. No licence is required
for imports.
Central excise duty is exempted on procurement of capital goods, raw material and spares among others from the domestic
market. Barring a few sectors, 100% FDI in the manufacturing sector is allowed through the automatic route.
Some of the key companies in Indore SEZ
• SRF
• Flexituff
• India Nets
• New Tech Pipes
• Advance Enzyme Technology
• Ipca Laboratories
• Amulya Exports
• Emerald Tobacco
• Pratibha Syntex
3131MARCH 2017
Source: Special Economic Zones in India- Ministry of Commerce &
Industry, TechSci Research
For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) … (2/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Industry Location No of SEZs
Formally approved SEZs as of July 2016
IT/ITeS
Indore, Gwalior,
Jabalpur,
Bhopal
8
Gems and
Jewellery
Indore 1
In-principle approved SEZs
Multi-product
Chhindwara,
Sehore
1
As of July 2016, the state had 9 formal approved SEZs that
are proposed to be set up in Madhya Pradesh.
Bhopal, Indore, Gwalior and Jabalpur are the major
locations where SEZs have been approved. These SEZs
have been proposed for IT/ITeS, mineral-based, agro-based
and multi-products.
Industry Location No of SEZs
Notified SEZs as of July 2016
IT/ITeS Indore, Gwalior 5
3232MARCH 2017
Madhya Pradesh had a literacy rate of 70.6%; the male literacy
rate is 80.5% and the female literacy rate is 60.0%.
During 2015-16 (till November 2015), under technical
education, the state had a total of 676 institutions with annual
enrolment of 146 thousand students.
Moreover, under the “Gaon Ki Beti Yojna”, which deals in
providing rural girls with high education, 36.79 thousand girls
were benefited during 2015-16 (till December 2015).
“Make in Madhya Pradesh” is to further the agenda of CM who
recently called upon a business community from the US to
bring their expertise in the social sectors.
For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – EDUCATION.. (1/2)
Source: AICTE, Directorate of Technical Education, Madhya Pradesh, Higher
Education Department- Government colleges of Madhya Pradesh, Madhya Pradesh
Education Portal, National Health Portal, TechSci Research
MADHYA PRADESH THE LAND OF DIAMONDS
Reputed institutes of Madhya Pradesh
Indian Institute of Management (IIM), Indore
Indian Institute of Forest Management, Bhopal
Institute of Hotel Management, Bhopal
International Institute of Professional Studies, Indore
Indian Institute of Technology (IIT), Indore
Category Literacy rate (%)
Total 70.6
Male 80.5
Female 60.0
Educational institutions (as of April 2015)
Primary schools 84,011
Total high schools (including private) 6,636
Total higher secondary schools
(including private)
5,211
Government colleges 342
Universities 16
Polytechnic institutes 64
Engineering & architecture colleges 229
Management institutes 266
Medical colleges 13
Dental Colleges 11
33For updated information, please visit www.ibef.org
MADHYA PRADESH THE LAND OF DIAMONDS
MARCH 2017
The state has one approved institute with foreign collaboration for the course of business studies. The name of the institute is
Daly College Business School and is affiliated to De Montfort University, Leicester, UK.
As per budget 2016-17, following announcements were made:
The government proposed an allocation of US$ 3.20 billion, US$ 383.32 million & US$ 129.14 million for the
development of school education, higher education & medical education departments in the state.
Under Rashtriya Madhyamik Shiksha Abhiyan, allocation of US$ 75.61 million was proposed by the state government
during 2016-17.
During 2016-17, the state government is targeting building development of 120 high schools & higher secondary
schools.
The Government of Madhya Pradesh has committed US$ 237 99 million, for expansion of training infrastructure & building
capacity for skill development in the state in January 2017 The scheme will be implemented over a period of 5 years & aims to
generate employment for youth & provide desired skillset & manpower to the industries.
Source: AICTE
SOCIAL INFRASTRUCTURE – EDUCATION.. (2/2)
3434MARCH 2017
Source: Ministry of Health & Family Welfare, Government of India, Sample
Registration System (SRS) Bulletin, 1Per thousand persons, 2Per thousand live births
Health indicators of Madhya Pradesh
Birth rate
1
26.3
Death rate
1
8.0
Infant mortality rate
2
54
Life expectancy at birth (years)
Male (2011-15) 64.5
Female (2011-15) 65.3
During 2014-15, the healthcare services network of Madhya
Pradesh comprised 51 district hospitals, 334 community
health centres, 1,171 primary health centres and 9,192 sub-
health centres.
During 2015-16 (till October 2015), around 965 thousand
beneficiaries were benefited with free services under
Deendayal Hospital Yojana.
The state has a total of 604 ambulances under National
Ambulance Service, using which 479 thousand patients
were benefited during April-October 2015.
For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – HEALTH
MADHYA PRADESH THE LAND OF DIAMONDS
Health institutions (2014-15)
District hospitals 51
Primary health centres 1,171
Sub-Health centres 9,192
Community health centres 334
Civil hospitals 66
Homeopathic hospitals 2
Special newborn care units 53
Nutrition rehabilitation centres 316
Gram aarogya kendras 48,959
The state government proposed an allocation of US$
862.18 million for the development of Public Health And
Family Welfare Department in the state, during 2016-17.
Under Public Health Engineering, an allocation of US$
397.10 million was made by the state government, as per
the state budget 2016-17.
3535MARCH 2017
State-level museums in Madhya Pradesh
• State Museum, Bhopal
• Central Museum, Indore
• Rani Durgawati Museum, Jabalpur
• Tulsi Museum, Ramvan, Satna
• Maharaja Chhatrasal Museum, Chhatarpur
• Gujri Mahal Museum, Gwalior
For updated information, please visit www.ibef.org
CULTURAL INFRASTRUCTURE
MADHYA PRADESH THE LAND OF DIAMONDS
Madhya Pradesh’s history dates back to the pre-historic age.
The United Nations Educational, Scientific and Cultural
Organisation (UNESCO) has declared 3 locations in the state
as heritage sites: temples at Khajuraho, Buddhist monuments
at Sanchi & rock shelters of Bhimbetka.
Bhimbetka cave paintings are the biggest repository of
prehistoric art in India. Sanchi Stupa, once a centre of Buddhist
learning, stands unique as one of the most well-preserved
stupas of India. The Directorate of Archaeology, Archives and
Museums, is in charge of the support of 349
memorials/landmarks and 44 museums over the state.
The state government has built up sports academies to
advance games like hockey, shooting, equestrian, water sports
& martial arts. Eminent sports personalities are awarded with
the Vikram Awards, the Ekalavya Awards & the Vishwamitra
(lifetime achievement) Award.
In order to enhance the cultural infrastructure in the state, the
Government of Madhya Pradesh allocated US$ 30.12 million
during 2016-17.
However, for sports & youth welfare in the state, an allocation
of US$ 33.11 million was proposed by the Government of
Madhya Pradesh, as per state budget 2016-17.
Among the cultural festivals of Madhya Pradesh, the
Khajuraho Festival of Dance & the Tansen Music Festival in
Gwalior celebrate classical Indian dance & music. These
festivals are well attended by both domestic & international
tourists. The state government will also provide an amount of
US$ 23.56 million in order to increase the activities related to
culture & archaeology.
Type of museum (no)
State-level museums 6
District-level museums 11
Local museums 6
Site museums 5
District Archaeological Association museums 16
Source: Directorate of Archaeology, Archives and Museums, Government of Madhya
Pradesh; State Budget 2015-16
3636MARCH 2017 For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE … (1/4)
MADHYA PRADESH THE LAND OF DIAMONDS
Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) is the nodal agency for industrial growth in the state. It
is the central point to coordinate, activate and ensure implementation of mega infrastructure projects.
MPSIDC has identified 19 industrial growth centres to attract medium and large industries & Non-Resident Indians (NRls) to the state
and provide various facilities and concessions to them. For a balanced & sustainable growth of industry across the state, MPSIDC
established 7 growth centres at Bhopal, Gwalior, Jabalpur, Indore, Rewa, Ujjain & Sagar. These growth centres are known as
Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (AKVN).
Infrastructure Bhopal AKVN Gwalior AKVN Jabalpur AKVN
Area developed
(hectares)
1,367 2,062 1,312
Growth centres Mandideep, Pillukhedi
Malanpur, Ghirongi, Banmore,
Chainpura
Borgaon, Maneri
Units established
Large and medium industries (LMI): 54
Small scale industries (SSI): 558
LMI: 69
SSI: 346
LMI: 17
SSI: 154
Major companies
HEG, Crompton Greaves, Procter &
Gamble, Godrej, Lupin, Oswal,
Vardhman
Surya Roshini, Godrej, Grasim,
Cadbury, JK, Crompton Greaves
Raymond, Hindustan
Petroleum, Ayur
Special infrastructure
Inland Container Depot (ICD), Food
Park
ICD, food park, stone park
Stone park, food park,
mineral & Agri specific
SEZ
Proposed project
Engineering cluster, logistic hub, food
park, plastic park, textile park
Readymade garment park, food
park
Agri SEZ, food park,
textile park, apparel park
Source: MP Trade & Investment Facilitation Corp. Ltd.
3737MARCH 2017 For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE … (2/4)
MADHYA PRADESH THE LAND OF DIAMONDS
Infrastructure Indore AKVN Rewa AKVN Ujjain AKVN Sagar AKVN
Area developed
(hectares)
3,332 307.4 431.6 359
Growth centres
Pithampur, Kheda, Megh
Nagar
Rewa, Waidhan, Purena Dewas, Maxi
Purena, Sidhgawa,
Pratappura
Units established LMI:272, SSI: 1213 LMI: 8, SSI: 99 LMI: 35, SSI: 171 LMI: 9; SSI: 199
Major companies
Eicher, Bridgestone,
Hindustan Motors, Man
Force, Flexituff, Kinetic,
Cummins
Birla, Jaypee
Ranbaxy, S.Kumars,
Gajra, Kirloskar, Tata
Ghadi Detergent,
RSPL (Rohit
Surfactant), Sanmati
Foods
Special infrastructure
Multi-product SEZ, IT SEZ,
Food Park, Apparel Park,
Inland Container Depot
(ICD), IIDC
IIDC Food park, IIDC IIDC
Proposed projects
Auto testing track, food
park, pharma cluster,
namkeen park, logistics
park
Industrial area
Knowledge city, new
industrial area under
the Delhi Mumbai
Industrial Corridor
project
Industrial Area
Source: MP Trade & Investment Facilitation Corp. Ltd., SEZ: Special Economic Zone
3838MARCH 2017 For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE … (3/4)
MADHYA PRADESH THE LAND OF DIAMONDS
Source: MP Facilitation Centre for NRI, Indore Special
Economic Zone, www.indoresez.nic.in, TechSci Research
SEZ: Special Economic Zone
The Industrial Promotion Policy 2010 aims to upgrade
industrial infrastructure & provide land to investment
projects without difficulties.
Under the provision of Madhya Pradesh Investment
Facilitation Act 2008, the state government is keen to
strengthen its single-window system to attract investments.
For a structured growth, the government has divided the
state into 6 clusters: Indore, Bhopal, Jabalpur, Gwalior,
Rewa & Sagar.
The state has excellent infrastructure, with 19 industrial
development parks, 129 industrial areas, 6 food parks, 8
integrated development centres, 3 dry parks, 1 stone park, 1
IT park, 1 SEZ & an apparel park at Indore.
A gems & jewellery park is being developed in Indore to
promote the diamond industry in the state. The government
plans to develop the project on its own, after failed attempts
to find a suitable partner on PPP basis.
State owned NTPC plans to construct a 2,640 MW power
plant in Barethi in Chattarpur district of Madhya Pradesh at
a cost of US$ 3 billion. As of July 2016, the project is still
awaiting clearance from the Expert Appraisal Committee
(EAC) of Union Environment Ministry. The committee has
sought additional information with respect to clearance from
National Board for Wildlife.
Potential clusters
Indore
Pharmaceutical, textile, food processing,
IT, auto components
Bhopal
Engineering, textile, biotech, herbal, IT,
food processing
Jabalpur
Garment, mineral, stone, forest, herbal,
food processing
Gwalior
Electronics, IT, FMCG, engineering,
stone, food processing
Rewa Mineral, cement, forest produce
Sagar Mineral processing, stone
Under the Centre’s Plastic Park Scheme, Industries &
Commerce Department is developing plastic parks at an
estimated cost of US$ 27.93 million at Tamot in Raisen
and Billoa district, Gwalior.
3939MARCH 2017 For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE … (4/4)
MADHYA PRADESH THE LAND OF DIAMONDS
Industrial clusters in Madhya Pradesh
Bhopal
Gwalior
Rewa
Sagar
Indore
Jabalpur
Source: Maps of India, Madhya Pradesh State Industrial Development Corporation
4040MARCH 2017 For updated information, please visit www.ibef.org
MADHYA PRADESH THE LAND OF DIAMONDS
SMART CITIES
As of September 2015, 7 cities of Madhya Pradesh were
announced to be developed as smart cities.
In an effort to revolutionise the infrastructure of the state,
the state government decided to revamp 7 cities of Madhya
Pradesh, namely Bhopal, Indore, Gwalior, Ujjain, Jabalpur,
Sagar & Satna.
Smart cities in Madhya Pradesh
Cities Population Literacy rate
Bhopal 2,371,061 80.37%
Indore 3,276,697 80.87%
Gwalior 2,032,036 76.65%
Ujjain 1,986,864 72.34%
Jabalpur 2,463,289 81.07%
Sagar 2,378,458 76.46%
Satna 2,228,935 72.26% Source: News Article, Census 2011 & TechSci
Research
Bhopal
Indore
Gwalior
Ujjain
Jabalpur
Sagar
Satna
4141MARCH 2017
Wealth of natural assets including agro-based items, forest
products & minerals, the state’s policy incentives & its central
location have pulled in significant investments in the agro-products,
consumer goods, medications & pharmaceuticals, mines &
minerals, manufacturing & textiles sectors.
The state government is keen to develop a strong mechanical base.
The Madhya Pradesh State Industrial Development Corporation
Limited (MPSIDC) & its subsidiary, Madhya Pradesh Audyogik
Kendra Vikas Nigam Limited (MPAKVN) are the key nodal offices
for development in the state.
Some of the major industrial areas in the state are Bhopal, Sehore,
Raisen, Harda, Mandideep, Dewas, Pithampur, Khandwa, Jhabua,
Dhar, Ujjain, Mandsaur, Ratlam, Jabalpur, Indore, Shajapur, Satna
& Gwalior.
Under Industrial Promotion Policy 2010, the government aims to
promote agro-based & local natural resource-based industries.
Tertiary sector is the largest contributor to the state economy with a
share of 43% of GSDP in 2015-16.
In January 2017, the government approved Pacific Iron
Manufacturing Ltd. for setting up of an integrated steel plant to at an
estimated cost of US$ 49.83 million
The government approved a coated fabric manufacturing plant to
be set up by Mayur Uniquoters Ltd. at Seetapur in Morena, worth
US$ 16.21 million of investment, in January 2017.
The government in January 2017, approved a furniture fittings &
manufacturing unit in Pithampur by Hettich India Pvt. Ltd., with an
investment of US$ 59.20 million.
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KEY INDUSTRIES.. (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Source: Madhya Pradesh State Portal, DIPP
1As of May 2016
Year IEMs filed
Proposed investments
(in US$ billion)
2010-11 226 33.89
2011-12 191 17.34
2012-13 126 1.75
2013-14 114 14.7
2014-15 99 2.03
2015-16 110 2.26
2016-17
1
28 0.59
42For updated information, please visit www.ibef.org
MADHYA PRADESH THE LAND OF DIAMONDS
MARCH 2017
KEY INDUSTRIES.. (2/2)
In the state budget 2016-17, for the rural
industries, Government of Madhya Pradesh
allocated an amount of US$ 54.94 million. Further,
the work on installation of 25 industrial units over
2,344 hectare land is under process. However,
work on 6 industrial units along with Crystal IT
park, readymade garment park, etc. over an area
of 295 hectares was completed during 2015-16.
After the validation of various self employment
schemes in the state, the government decided to
start the Mukhya Mantri Yuva Udhyami Yojana &
Mukhya Mantri Aarthik Kalyan Yojana.
Work on construction of IT parks in 4 major
regions of the state, including Indore, Gwalior,
Bhopal & Jabalpur, is expected to be initiated
during 2016-17. Moreover, electronic
manufacturing clusters are also being established
in Jabalpur & Bhopal. For these new
establishments, the Government of Madhya
Pradesh allocated an amount of US$ 7.94 million
as per the Budget 2016-17.
With an investment of US$ 2.97 billion, as of
January 2017, Aditya Birla Group is expanding its
business in Madhya Pradesh, in sectors like
cement, retail & telecom.
Key industries in Madhya Pradesh
Auto and auto components Mineral based industries
Textile Manufacturing
Cement Tourism
Agro-based industries IT and ITeS
Forest based industries Logistics & warehousing
Pharmaceuticals Biotechnology
Source: Madhya Pradesh State Portal, State Budget 2016-17
4343MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – AUTO AND AUTO COMPONENTS … (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Strategic location of the state, with its proximity to the
automotive hub of NCR, provide key advantages for well-
connected regions of Madhya Pradesh to emerge as auto
clusters.
Supported by facilities such as an auto testing track & auto
research centre, Pithampur region has emerged as a major
auto cluster.
The essential infrastructure foundation existing in the
automotive cluster includes power, water supply,
telecommunication services & roads.
The Pithampur automotive cluster is among the industrial
clusters in India, which have been identified by the central
government for implementation of the Industrial
Infrastructure Upgradation Scheme (IIUS). The scheme
aims at improving the competitiveness of functional clusters
across the country.
It has numerous automotive original equipment
manufacturers (OEMs), such as Force Motors, Eicher
Motors, Hindustan Motors & Mahindra 2-Wheelers, a major
tyre producing unit of Bridgestone & about 30 auto
component & ancillary units.
Some key players
• Eicher Motors Ltd
• Force Motors Ltd
• Hindustan Motors Ltd
• Mahindra Two Wheelers Ltd
4444MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – AUTO AND AUTO COMPONENTS … (2/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Eicher Motors Ltd
Force Motors Ltd
Hindustan Motors Ltd
Mahindra Two
Wheelers Ltd
• Eicher Motors Limited, incorporated in 1982, is the flagship company of the Eicher Group in India and a
leading player in the Indian automobile industry. VE Commercial Vehicles Ltd (VECV), is a 50:50 joint venture
between the Volvo Group (Volvo) and Eicher Motors Limited (EML). The company has a state-of-the-art
manufacturing facility of buses and trucks at Pithampur with a production capacity of 48,000 vehicles, annually
and an auto component facility at Dewas (plant area of approximately 18,000 sq. m.). VECV is setting up a
new engine plant in the existing facility at Pithampur. The engine capacity would be ramped up from 60,000
units to 160,000 units by the financial year 2016-17. The company recorded revenues of US$ 2 billion during
2015-16.
• Force Motors is a vertically integrated automobile company, which designs, manufactures & markets its range
of vehicles – tractors, 3-wheelers, light commercial vehicles, multi-utility vehicles & heavy commercial
vehicles. The manufacturing plant at Pithampur was set up in 1987 under license from Daimler-Benz to
manufacture utility vehicles. The plant was further expanded in 1997. Subsequently, it also obtained ISO
9001:2000 certification in 2003. The total revenues recorded by the company stood at US$ 467.48 million
during 2015-16.
• Hindustan Motors Limited (HML), the pioneer in automobile manufacturing in India, is the flagship company
of the C. K. Birla Group. The company manufactures passenger cars, multi-utility vehicles & Road-Trusted
Vehicles (RTV). In technical collaboration with Australian OKA Motor Company, HML manufactures RTVs in
its plant at Pithampur. The company’s total income stood at US$ 0.12 million in 2015-16.
• Mahindra 2-Wheelers Limited was founded in 2008 when Mahindra & Mahindra Limited (M&M), India's
leading automotive companies took over Pune-based Kinetic Motor Company Limited (KMCL). The
company has a state-of-the-art, ISO 9001 certified manufacturing facility at Pithampur in Madhya Pradesh.
4545MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – TEXTILES … (1/3)
Source: Madhya Pradesh Business Line , Public-
Private Partnerships in India, Madhya Pradesh
State Industrial Development Corporation
MADHYA PRADESH THE LAND OF DIAMONDS
Madhya Pradesh is one of the major cotton producing states of India. In 2014-
15, cotton was grown on an estimated area of 574,000 hectares in the state with
a total production of around 1.75 million bales (170 kg each).
Cotton textile mills are based in Indore, Dewas, Ujjain, Malanpur, Pithampur,
Khargone, Gwalior & Bhopal.
An apparel park is located in the Indore SEZ & would spread over 150 to 260
acres of land. The project is implemented by M.P. Audyogik Kendra Vikas
Nigam (Indore) Ltd.
Indore has been identified as the region for infrastructure development under
the Textiles Centre Infrastructure Development Scheme (TCIDS). The city is a
cluster of the readymade garments industry with over 1,260 garment units.
Extending support to the industry, the state government has announced plans
to upgrade existing apparel clusters at Indore & Jabalpur. The state government
has established a textile park in Chhindwara.
The central government plans to develop a second textile park at Indore, and
US$ 6.6 million would be sanctioned for this purpose.
Textile Research Association and Export Promotion Council are to be set up in
Madhya Pradesh.
During FY 2015-16, Government of Madhya Pradesh proposed the following
outlays: US$ 103.66 thousand for implementation of Intensive Cotton
Development Programme; US$ 2.27 million for supply of electricity to power
loom weavers; US$ 38.19 thousand for institutional training to youth weavers;
US$ 380.69 thousand for integrated cluster development of handloom / power
loom & US$ 297.40 thousand for Handloom Development Scheme.
Some key players
• Century Textiles and Industries Ltd
• Grasim Industries Ltd
• Vardhman Textiles Ltd
• Raymond Ltd
Textile infrastructure in Madhya Pradesh
Composite mills 20
Exclusive weaving units 8
Export oriented spinning units 12
Handlooms 47,000
Looms 6,500
Power looms 43,290
Power loom units 17,524
Rotors 14,348
Spindles 1,414,000
Spinning units 40
4646MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – TEXTILES … (2/3)
Source: The Cotton Corporation of India Ltd,
1 Projected, As per Cotton Advisory Board, * Projected as per Cotton Advisory Board
TechSci Research
MADHYA PRADESH THE LAND OF DIAMONDS
To attract investments into the sector, the government has
provided an interest subsidy for 5 years at a rate of 5% for
textile projects and 7% for composite textile projects without
capping. Furthermore, the government provided 100%
assistance in plant & machinery for 8 years under Industrial
Investment Promotion Assistance Scheme.
Production of 329.9 million kg of cotton yarn, was recorded
in the state between April-June 2015.
Under the Comprehensive Handloom Development Scheme
(CHDS) & National Handloom Development Programme
Scheme (NHDP), the financial assistance released in the
last 3 years i.e. 2012-13 to 2014-15 & the current year
2015-16 in the state stood at US$ 0.07 million.
During 2015-16, the state recorded 214 MT of total raw silk
production.
As per the budget 2015-16, to enhance the mulberry silk
production in the state, the state government is targeting to
provide employment opportunities to 24,940 beneficiaries.
In January 2017, the government approved a textile project
to Vardhman Textile Ltd., at Mandideep, Sallapur & Budhni
for modernization & expansion, with an estimated
investment of US$ 215.68 million.
An expansion project was granted to Sagar Manufacturing
Pvt. Ltd. at Tamot, with investment worth US$ 139.32
million in January 2017.
In January 2017, the Defence Ministry announced its plans
to set up a unit of national importance at Morena, with
investment worth US$ 223.11 million.
Cotton production (in lakh bales) in Madhya Pradesh
Cotton productivity (in kgs/hectare) in Madhya Pradesh
20.0
18.0
15.3
17.7
20.0
22.0
17.3 17.5 18.0
FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 ¹ FY 16*
540
490
424
463 481.6
615.1
572.2
518.3
559
FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 ¹ FY 16*
4747MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – TEXTILES … (3/3)
MADHYA PRADESH THE LAND OF DIAMONDS
Century Textiles and
Industries Ltd
Grasim Industries Ltd
Vardhman Textiles Ltd
Raymond Ltd
• Century Textiles and Industries Ltd was incorporated in 1897. The company has interests in textile, rayon, cement
and paper. Yarn and denim production units of the textile business are located at Satrati in Madhya Pradesh. The
plant is equipped with 24,960 spindles for manufacturing of yarn and produced about 4,244.2 tonnes of yarn
during 2010–11. The denim division has a production capacity of 21 million metres of denim fabrics per annum.
• The company recorded revenues of US$ 1.23 billion in 2015-16.
• Grasim Industries Ltd, a flagship company of the Aditya Birla Group, is one of the leading companies in India with
diverse interests in cement, chemicals and textiles. Its textile plants are located at Bhiwani, Haryana and
Malanpur, Madhya Pradesh. The Malanpur unit of the company manufactures worsted dyed yarn spun from pure
merino wool along with polyester and other blends. The company has a wide retail network and also serves
international apparel manufacturers. The total income earned by the company during 2015-16 stood at US$ 5.60
billion.
• The Vardhman Group is a leading textile conglomerate in India having a turnover of US$ 1.1 Billion. The yarn
manufacturing units are located in Mandideep (130,994 spindles), Satlapur (222,624 spindles) and Bhudhni
(60,000 spindles). In September 2013, the company added 36,288 spindles to its Satlapur plant. Furthermore,
the Bhudhni plant has a fabric weaving unit (400 looms) and a fabric processing unit with a capacity of 40 million
metres per annum. The company posted total revenues of US$ 888.25 million in 2015-16.
• Raymond is a major fabric manufacturer in India. Besides, the company also has business interests in
engineering and aviation. The company is one of the largest integrated manufacturers of worsted fabric in the
world and commands over 60.0% market share in worsted suiting in India. The total production capacity of the
company is around 38 million metres of wool and wool-blended products. One of the four plants of the
company is located at Chhindwara in Madhya Pradesh. The revenue earned by the company stood at US$
858.64 million during 2015-16.
4848MARCH 2017
The state is the 3rd largest producer of cement in the country &
provides up to 13% of national demand.
Being rich in limestone & coal reserves, the state represents
significant opportunities for the growth of the cement industry.
Satna, Jawad and Neemuch of Madhya Pradesh feature among
the seven major limestone clusters in India. These clusters
provide easy access to raw material resources for the cement
industry.
Most limestone deposits are concentrated in the districts of
Damoh, Dhar, Neemuch, Sheopur, Rewa, Satna & Sidhi. Total
cement grade limestone resources of the state are estimated at
4,326.3 million tonnes.
As of 2015, Madhya Pradesh has 13 cement plants, namely Birla
Vikas & Satna Cement Works (1), Cement Corporation of India
Ltd. (2), Century Cement (1), Heidelberg Cement India Ltd (1),
Jaypee Cement (4), K.J.S. Cement (1), Kymore Cement Works
(1), Prism Cement Ltd (1) & Ultratech- Vikram Cement Works (1).
UltraTech Cement Ltd. has recently bought 2 cement plants &
related power assets of Jaiprakash Associates Ltd. in Madhya
Pradesh, for US$ 792.3 million.
For updated information, please visit www.ibef.org
KEY INDUSTRIES – CEMENT … (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Some of the key players
• Birla Corporation Ltd
• ACC Limited
• Jaiprakash Associates Ltd.
• Heidelberg Cement India Ltd
• Cement Corporation of India Ltd.
Source: Cement Information System (CIS)- Department of Industrial
Policy & Promotion, Government of India; Cement Manufacturers’
Association, TechSci Research
4949MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – CEMENT … (2/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Birla Corp Ltd
ACC Ltd
Everest Industries Ltd
Heidelberg Cement
India Ltd
• Birla Corporation Limited is the flagship company of the M P Birla Group with business interests in
cement, jute goods, polyvinyl chloride floor covering, auto trim parts and iron & steel casting. The
cement plant of the company is located in Satna, Madhya Pradesh. The plant has a capacity of 2.2
million tonnes per annum. In October 2013, the company announced plans to set up 3 grinding
cum blending units in Madhya Pradesh. The company recently bought 2 cement plants & related
power assets of Jaiprakash Associates. The total income recorded by the company during 2015-16
was US$ 500.30 million.
• ACC Limited is one of the largest cement manufacturers in India with 17 cement plants, more
than 40 ready-mix concrete plants, 21 sales offices and over 9,000 dealers. In Madhya Pradesh,
it has plants in Kymore with a capacity of 2.7 million tonnes per annum (MTPA). The company’s
total income during 2015 was recorded to be US$ 1.78 billion and for the first quarter of 2016,
the company recorded total revenues of US$ 444.9 million.
• Everest Industries Limited manufactures a range of building solutions, which include ceilings,
walls, flooring, cladding, doors, roofing and pre-engineered steel buildings. One of the five
manufacturing facilities of the company is located at Kymore in Madhya Pradesh. It is among
the first manufacturers of fibre-cement roofing sheets and accessories in India. The plant has
been awarded by the state government for excellence in the fields of safety, health and
environment.
• Heidelberg Cement India Ltd is a subsidiary of Cementrum I.B.V. (a company incorporated
under the laws of The Netherlands, which is 100% controlled by HeidelbergCement AG, which
is one of the largest cement manufacturers in the world). The company has two cement plants
at Damoh in Madhya Pradesh. Its cement is sold under brand name ‘Mycem’. The company
recorded a total income of US$ 252.87 million during 2015-16 and US$ 70.27 million during the
first quarter of 2016-17.
5050MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – PHARMACEUTICAL AND BIOTECHNOLOGY INDUSTRY ... (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Madhya Pradesh has a rich bio-diversity. About 25.2% of
the state is under forest cover; 11 of the 25 agro-climatic
zones are present in the state and a large variety of rare
and valuable medicinal and herbal plants are available.
A nodal agency has been constituted to oversee the
developments of the sector. Incentives in the form of capital
subsidies and training assistance have been arranged to
encourage investment.
Biotechnology & pharmaceuticals have been recognised as
thrust sectors. The state has formulated a Biotechnology
Policy, which has created a conducive environment for the
bio-pharmaceutical industry in the state.
Bio Technology Park (Indore) and Bio Fuel Park (Rewa) are
major infrastructure facilities operational in the state.
Agricultural research on hybrid varieties and clinical trials
are among the key activities being undertaken by the state.
Some of the key players
• Ipca Industries
• Lupin Ltd
• Piramal Healthcare Ltd
• Sun Pharmaceutical Industries Ltd
• Teva
Source: MP Trade & Investment Facilitation Corp Ltd, TechSci Research
In 2016-17, the government plans to sanction 2,000 new
health centres in the state. The government has also
proposed to spend US$ 310 million under the Rashtriya
Swasthya Mission.
An amount of US$ 150 million is proposed to be spent on
construction of smart medical city near Sanchi.
5151MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – PHARMACEUTICAL AND BIOTECHNOLOGY INDUSTRY ... (2/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Ipca Laboratories Ltd
Lupin Ltd
Piramal Healthcare Ltd
Sun Pharmaceutical
Industries Ltd
• Ipca is a fully integrated Indian pharmaceutical company with a strong thrust on exports. The
company has operations in over 110 countries and exports account for around 60.0% of the
sales. The company has 6 Active Pharmaceutical Ingredient (API) manufacturing plants & 7
formulation plants in India. In Madhya Pradesh, it has plants at Indore, Pithampur & Ratlam. The
plants manufacture drug intermediaries, oral solids, liquids & injectables, etc. & are certified by
apex global agencies. During 2015-16, total income of the company reached US$ 433.69 million.
• Lupin Ltd is an innovation-led pharmaceutical company producing a wide range of generic &
branded formulations and Active Pharmaceutical Ingredients (APIs). The company has 2 plants
in Madhya Pradesh – 1 at Indore for formulations & another at Mandideep for API. The plant at
Mandideep is approved by global authorities such as World Health Organisation (WHO), United
States Food and Drug Administration (USFDA) & United Kingdom Medicine & Healthcare
products Regulatory Agency (UKMHRA). The total revenue recorded by the company during
2015-16 stood at US$ 2.10 billion
• Piramal Healthcare Ltd (PHL) is a globally integrated healthcare company and recorded total
income of US$ 1.1 billion during 2015-16. The company caters to a large range of therapeutic
products under a number of divisions such as acute care, biotech, cardiac, diabetes, general
medicine, orthopaedic, pain management, etc. The company has 6 manufacturing facilities in
India, one of which is located at Pithampur in Madhya Pradesh.
• Sun Pharmaceutical Industries Ltd, one of India's largest pharmaceutical companies, is an
integrated, research-based pharmaceutical company with a global presence. In 2015-16, the
company recorded total income of around US$ 4.31 billion. The company announced the
acquisition of Ranbaxy Laboratories Limited in April 2014, and completed the acquisition deal in
March 2015. The company manufactures a wide range of generic medicines in its 45
manufacturing sites across the globe. Sun Pharma Industries Ltd. has two manufacturing
facilities in Madhya Pradesh at Dewas & Malanpur.
5252MARCH 2017
Madhya Pradesh State Industrial Development
Corporation & its subsidiaries have developed
numerous growth centres across the state. The
Industrial Policy of the state provides numerous
incentives for setting up manufacturing units.
The manufacturing sector in Madhya Pradesh is
witnessing strong growth on account of improving
industrial infrastructure, policy incentives, labour
resources & central location of the state.
Districts such as Indore, Bhopal, Jabalpur, Ujjain,
Gwalior, Dhar, Satna, Dewas, Sagar & Khandwa
are notable manufacturing hubs in Madhya
Pradesh. Between 2005-06 and 2014-15, income
originating from the manufacturing sub-sector grew
at a CAGR of 0.9%.
For industrial modernisation, the state has
undertaken measures such as introduction of
Progressive Industrial Policy, infrastructure
improvements & frequent investor meets. To
facilitate the industry with modern infrastructure,
the state has initiated expansion of existing IT
parks, stone parks, apparel parks & SEZs.
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KEY INDUSTRIES – MANUFACTURING … (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Some of the key players
• Bharat Heavy Electricals Ltd
• Kirloskar Brothers Ltd
• Kores (India) Ltd
• Crompton Greaves
• Birla Corporation
NSDP originating from manufacturing sub-
sector at constant prices (US$ billion)
10.25 10.92 13.25 11.64 11.71 12.95 13.44 11.68 10.48 10.79
1.38 2.04
2.29
2.60 2.79 2.47 2.46
2.12
1.85 1.82
Unregistered Registered
Source: TechSci Estimates based on “Advanced Estimates” provided
by Directorate of Economics and Statistics of Madhya Pradesh,
5353MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – MANUFACTURING … (2/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Bharat Heavy
Electricals Ltd
Kirloskar Brothers Ltd
Kores (I) Ltd
Crompton Greaves
• Bharat Heavy Electricals Ltd (BHEL) is a large engineering & manufacturing enterprise in India in the energy-
related & infrastructure sector. During the 3rd quarter of 2015-16, the state recorded total revenues of US$
813.57 million. The Bhopal unit of BHEL was set up in Piplani in 1956 with technical assistance from
Associated Electricals (India) Limited, a UK-based company. The unit has the capability to manufacture
hydro, steam, marine, nuclear turbines, heat exchangers, hydro, turbo generators, transformers, switchgears,
control gears, transportation equipment, capacitors, bushings, electrical motors, rectifiers, oil drilling rig
equipments & diesel generating sets.
• Kirloskar Brothers Ltd (KBL) is the flagship company of the US$ 2.1 billion Kirloskar Group. KBL has business
interests in large infrastructure projects such as water supply, power generation & irrigation, manufacturing of
pumps for domestic, agricultural & industrial use. The total income of the company stood at US$ 416.72 million
in 2015-16 & US$ 262.62 million during 1st quarter of 2016-17. The company has 6 manufacturing plants, one
of which at Dewas in Madhya Pradesh was established in 1962. The plant manufactures pumps for domestic &
agricultural use.
• Kores (India) Ltd was incorporated in 1936 & has business interest in diverse fields such as office
products, foundry, textiles, pharmaceuticals, engineering, etc. The engineering division of the company
has a plant at Pithampur in Madhya Pradesh. The plant is set up on an area of 71,192 sq m & has
facilities such as machining, fabrication, assembly & testing. The company produces hydrostatic rigs,
pumps, drills & related accessories in the plant at Pithampur.
• Crompton Greaves is a part of the US$ 4 billion Avantha Group. The company is engaged in designing,
manufacturing & marketing of technologically advanced electrical products & services. The company
manufactures transformers at its plants in Mandideep & Malanpur & industrial systems (rotating machines &
railway signalling unit) in Pithampur. The company recorded total income of US$ 805.4 million in 2015-16.
5454MARCH 2017
Factors such as industrial infrastructure in growth centres,
cheap labour & central location are the key influencers for
establishing consumer goods manufacturing facilities in the
state.
Many multinational companies, such as Mondelez, Procter
& Gamble, Hindustan Unilever Limited, Coca Cola & Cargill,
have their manufacturing plants in the state.
A majority of the manufacturing plants are located in
industrial areas of the state such as Malanpur, Mandideep,
Pithampur & Chhindwara.
Procter & Gamble’s strategic move of relocating its central
warehouse for FMCG products to Bhopal has helped it save
annual logistics expenses of around US$ 20 million. Many
FMCG companies are now relocating their warehouses to
replicate this success.
To promote growth in the FMCG sector, the state
government has established Gwalior as an FMCG cluster.
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KEY INDUSTRIES – FAST MOVING CONSUMER GOODS … (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Some key players
• Mondelez India Foods Ltd
• Procter & Gamble (P&G) Home Products Ltd
• Dabur India Ltd
• Hindustan Unilever Ltd
Patanjali Ayurveda Ltd. plans to set up a food processing
unit in the state, with an investment of US$76 million.
The bottling division of Coca Cola in India, Hindustan
Coca-Cola Beverages Ltd. (HCCBL), is planning to invest
US$ 111.56 million to set up a bottling plant at in
Hoshangabad, Madhya Pradesh. The 110 acre plant,
would facilitate multiple bottling lines for its carbonated
beverages such as Coca-Cola, Sprite, Fanta, Thums Up
and Limca.
5555MARCH 2017
Mondelez India Foods
Procter & Gamble (P&G)
Home Products Ltd
Dabur India Ltd
Hindustan Unilever Ltd
For updated information, please visit www.ibef.org
• Mondelez India Foods Ltd is part of Mondelēz International, Inc. It operates in 5 categories –
chocolate confectionery, beverages, biscuits, gum & candy. Mondelez's key brands in India
include Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls,
Éclairs, Bubbaloo, Tang & Oreo. In India, the company started its operations in 1948 and has 6
factories & 4 sales offices.
• P&G Home Products Ltd, one of India's largest consumer goods companies, is a 100%
subsidiary of Procter & Gamble Company, US. The company owns some of the reputed brands
in the fabric, hair & baby care segments. The company has its manufacturing plant at
Mandideep in the Raisen district of Madhya Pradesh.
• Dabur India Ltd is a leading consumer goods company in India with revenues of US$ 0.4 billion
in H1, FY15. The company has 2 major divisions: consumer care business & international
business division. One of the 17 manufacturing plants of the company is located at Katni in
Madhya Pradesh. The total income recorded by Dabur India Ltd during 2015-16 was US$ 1.3
billion.
• Hindustan Unilever Ltd (HUL) is a subsidiary of Uniliver and is India's largest consumer goods
company with a portfolio of brands in 20 distinct categories. Established in 1930, the company
has its manufacturing plant at Chhindwara in Madhya Pradesh. HUL recorded total income of
US$ 4.21 billion during 2015-16.
KEY INDUSTRIES – FAST MOVING CONSUMER GOODS … (2/2)
MADHYA PRADESH THE LAND OF DIAMONDS
5656MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – AGRO-BASED INDUSTRY … (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Madhya Pradesh is an agrarian state. Around 74% of the population of the state is directly or indirectly, dependent on agriculture.
Of the total gross area under crop cultivation in the state, 54.2% is sown during the kharif season while the other 45.7% is sown
during the rabi season. Budget estimate for the horticulture and food processing sectors in the state stood at US$ 113.5 million.
Budget estimate for farmer welfare as well as development of agriculture, during 2016-17, in the state was recorded to be US$
450.62 million. Madhya Pradesh is the largest producer of oilseeds; it produced 7.22 million tonnes in 2015-16. accounting for
around 36.32% of the national production.
Madhya Pradesh is one of the leading producers of spices such as ginger, chilli and garlic. Jawaharlal Nehru Krishi
Vishwavidyalaya is located in Jabalpur and serves as a centre for teaching and research in agriculture and allied sciences. The
state was the third largest milk producer in India in 2015-16. Milk production in the state increased from 10.8 million tonnes in
2014-15 to 12.12 million tonnes in 2015-16. Egg production in the state reached 1,441.36 million units in 2015-16, while, meat
production in the state increased from 58.89 thousand tonnes in 2014-15 to 73 thousand tonnes in 2015-16.
Dhar, Ujjain, Chhindwara, Jabalpur, Hoshangabad, Guna, Ashok Nagar, Dewas, Indore, Shajapur, Vidisha, Sagar, Ratlam,
Sehore, Mandsaur and Khargone are the major districts involved in agriculture and allied industries. The state received the “Krishi
Karman” award for the third consecutive year. Horticulture is an emerging sector in the state. Through the export of aromatic and
medicinal plants, the horticulture segment is a potential foreign exchange earner. In 2015-16, the state recorded utilisation of
22,501.8 thousand hectares of land for production of horticulture crops. The state has invested resources into the making of water
assets, new plantations, flower gardens and organic farming. Plans are being laid out to set up suitable post-harvest facilities like
packing houses, cold storage and mobile processing units.
Source: Ministry of Agriculture, Farmer Welfare & Agriculture Development Department Madhya Pradesh
Solvent Extractors’ Association of India, TechSci Research
5757MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – AGRO-BASED INDUSTRY … (2/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Adani
Wilmar Ltd
Anik Industries
Ltd
K S Oils Ltd
Ruchi Soya
Industries Ltd
• Adani Wilmar Ltd (AWL) is a 50:50 joint venture between two global corporations - Adani Group of India
and Wilmar International Limited of Singapore. The company has production infrastructure across the
country, with a crushing capacity of over 5,750 tonnes per day and a refining capacity of over 9,000
tonnes per day. The company has a production unit in Chhindwara and a packaging plant at Dewas in
Madhya Pradesh. FORTUNE, King's, RAAG, Bullet, Fryola and JUBILEE are the brands under which
AWL sells its range of edible oils, vanaspati and bakery shortening.
• Anik Industries Limited has business interests in dairy and milk derivative products, wind power, mining &
coal, ferro alloys, real estate and agri commodities. The company has three milk processing units in
Madhya Pradesh for manufacturing of dairy products, two at Dewas (capacity of 240,000 litres of milk per
day and 400,000 litres of milk per day) and one at Bhopal (capacity of 100,000 litres of milk per day).
These units are supported by 11 chilling centres spread across the state, which collect milk from 5,000
villages. The company recorded total income of US$ 234.78 million during 2015-16.
• K S Oils is a leading Indian integrated edible oil company, which produces and markets mustard oil, refined
oil and vanaspati. The company has its fully integrated plant at Morena in Madhya Pradesh with a crushing
capacity of 1,475 metric tonnes of mustard seeds per day. The plant also has an in-house packaging unit.
The company’s total income during Q3 of 2015-16 was US$ 0.55 million.
• Ruchi Soya Industries Ltd is one of the major agro-based product manufacturers in India. The product
portfolio of the company includes edible oils, soya foods, bakery fat and vanaspati. It is also the largest
exporter of soya foods and lecithin from India. The company has a wide presence in Madhya Pradesh with
six manufacturing plants located at Mangla, Shujalpur, Guna, Piaparia, Gaderwada and Jabalpur and three
depots at Gwalior, Jabalpur and Indore. The company recorded revenues of US$ 4.24 billion in 2015-16.
5858MARCH 2017
Madhya Pradesh is blessed with scenic beauty, rich
heritage of pilgrim centres, temples & wildlife sanctuaries.
The state government has identified the tourism sector as a
key growth area.
In 2015, foreign tourist arrivals in the state were recorded to
be 421.36 thousand.
The state government has shortlisted 18 noteworthy
centres, which draw in large numbers of domestic and
foreign tourists for further development.
The state government has taken initiatives to promote eco-,
wildlife, adventure, leisure, business & pilgrim tourism.
The Ministry of Tourism has included Chitrakoot as one of
the 35 mega tourist centres sanctioned to be developed.
Chitrakoot will be developed as a spiritual & wellness
destination. The destination will be developed as a part of
the Ramayana Circuit. The government has allocated a sum
of US$ 10.69 million for development of this circuit.
As per budget 2016-17, the state government proposed an
allocation of US$ 38.81 million for the development of the
state’s tourism department.
In February 2017, the state tourism advertisement ‘MP Mein
Dil Hua Bachche bagged the prestigious AFI (American
Film Institute) award for the best ongoing campaign, which
was launched in June 2016.
For updated information, please visit www.ibef.org
KEY INDUSTRIES – TOURISM … (1/2)
Source: Tourism Statistics 2014-15
MADHYA PRADESH THE LAND OF DIAMONDS
International tourist arrivals (in millions)
0.23
0.25
0.2
0.25
0.27 0.28 0.28
0.32
0.42
2007 2008 2009 2010 2011 2012 2013 2014 2015
The Central Sanctioning and Monitoring Committee (CSMC)
for the Swadesh Darshan Scheme in Ministry of Tourism has
approved a sum of US$ 15.28 million for the development of
Heritage Circuit in state of Madhya Pradesh. The circuit will
cover cities of Gwalior- Orchha-Khajuraho-Chanderi-
Bhimbetka-Mandu. The project would facilitate world class
infrastructural development of the sites, including developing
a theme park & convention centre in Khajuraho. Site
illumination, construction of tourist facilitation centres &
parking area are other interventions proposed in the circuit.
5959MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – TOURISM … (2/2)
Source: Annual Plan of Madhya Pradesh, 2012-13
MADHYA PRADESH THE LAND OF DIAMONDS
The state has 382 tourist sites, including world heritage
sites. Major places of tourist interest in Madhya Pradesh are
as follows:
Kanha: One of the largest wild-life sanctuaries in
Asia.
Khajuraho: Some of the most famous sculptures in
the world.
Bhimbetka: The oldest cave paintings in the world.
Sanchi: The oldest Buddhist Stupa in the world.
Bandhavgarh: The highest density of tiger
population in the country.
Bhedaghat: Scenic marble rocks rising up to 100
feet.
The state has 9 national parks & 25 wildlife
sanctuaries.
Numerous festivals, such as All India Kalidasa
Festival, Tansen Samaroh (Gwalior), Lokranjan &
Khajuraho Dance Festival (Khajuraho), are
celebrated in the state, which attract tourists.
Measures to promote tourism in Madhya Pradesh
• Promote and market as an attractive tourist
destination.
• Provide basic infrastructure at lesser known tourist
locations.
• Develop eco-friendly and sustainable tourism
facilities.
• Develop and promote eco- and adventure tourism.
• Invite PPP to convert old palaces into heritage
hotels.
In January 2017, the Government of Madhya Pradesh
developed Hanuwantiya Island, with an investment of US$
1.19 million, to promote water tourism in the state. The island
is located in the reservoir of Indira Sagar Dam, situated on
Narmada river.
6060MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – FOREST-BASED INDUSTRIES
MADHYA PRADESH THE LAND OF DIAMONDS
With a share of about 12.44% of the total forest area of the country, Madhya Pradesh has the largest area covered by
forests among all the states in India.
In Madhya Pradesh, the average annual production of tendu leaves is estimated around 2.5 million standard bags,
accounting for nearly 25.0% of all tendu leaves produced in India.
Tendu leaves, sal seed and kullu gum are nationalised forest produce. Other non-wood forest products are non-nationalised
and can be collected and traded freely.
Other important forest products popularly traded include Chebulic Myrobalan, Mahua, Sal seeds, Kullu gum and bamboo.
Estimated budget for the forest department during 2016-17 stood at US$ 386.02 million.
Sale of forest products contributes significantly to the state revenues. Forest products are either sold through auction in
commercial depots, or through sale on pre-defined rates at Nistar depots. As of 2015, there were 40 commercial timber
depots and 22 industrial bamboo depots in the state.
Source: Forest Department, Madhya Pradesh, www.mpforest.org
Trading & Development Co-Op Federation Ltd.
6161MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – IT AND ITeS
MADHYA PRADESH THE LAND OF DIAMONDS
Madhya Pradesh has an optical fibre spine of more than
24,000 km that covers 313 formative blocks over 45
districts.
The state is home to the country’s 1st Indian Institute of
Information Technology & Management (IIITM), which is
located in Gwalior. The government has proposed to set up
21 IT SEZs across the state. 5 information technology
parks, located at Bhopal, Indore (2), Gwalior & Jabalpur, are
at various stages of development.
Around 20 companies have signed MoUs worth US$ 1.4
billion for investments in the IT sector within the state.
Various information technology infrastructures such as the
wide area networks, data centres, etc. are being used for
exchanging the information by different departments of the
state government.
A government society MAP_IT (Madhya Pradesh Agency
for Promotion of Information Technology), headed by the
Chief Minister & represented by the government & industry,
has been established to implement the IT policy & propel
the growth of the IT industry in Madhya Pradesh. The state
government proposed allocation of US$36.16 million for
different activities under science & technology during 2015-
16.
Contract for setting up a special IT processing centre was
granted to Fujitsu Optel Ltd., at Mandideep in Raisen, at an
estimated cost of US$ 8.48 million.
IT parks
Crystal IT Park (51,097 sq. m) Indore
Hardware and Software Technology Park
(200 acres)
Bhopal
Software Technology Park (100,000 sq ft) Indore
IT Park (50 acres) Gwalior
IT Park (90 acres) Jabalpur
IT projects in Madhya Pradesh
Hardware & Software
Technology Park, Bhopal
Crystal IT Park,
Indore
Software Technology
Park, Indore
IT Park, Gwalior
Jabalpur IT Park, Jabalpur
Source: Maps of India
6262MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – MINERAL-BASED INDUSTRY … (1/3)
MADHYA PRADESH THE LAND OF DIAMONDS
Madhya Pradesh is one of the key mineral-producing states in India, providing tremendous potential for industrial growth.
With 26 major and minor minerals being mined in the state, it ranks fourth in mineral production.
The state has rich deposits of coal, limestone and manganese. Bauxite, dolomite, fire clay, granite and marble stones are
other mineral resources available.
During 2015-16 (till February 2016), value of all minerals produced in Madhya Pradesh was recorded to be US$ 2.4 billion.
Madhya Pradesh, with its 1,045,318 carats of proven diamond reserves, is the sole producer of diamonds in India.
Madhya Pradesh is the leading producer of minerals such as pyrophyllite and copper.
During 2015-16 (till February 2016), value of fuel mineral produced in Madhya Pradesh was recorded to be US$ 2.17 billion.
Major mineral-based industries in the state are cement, thermal power generation, ceramic-products, tiles and refractory.
The Mineral Resources Department of Madhya Pradesh has planned to introduce online electronic transit pass (e-TP)
services in Balaghat, Sagar, Tikamgarh, Satna, Rajgarh, Betul, Indore, Ujjain, Neemuch, Gwalior, Bhind and Hoshangabad
in December 2016.
Source: Indian Bureau of Mines
6363MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – MINERAL-BASED INDUSTRY … (2/3)
Source: Ministry of Mines, Government of India, TechSci Research
MADHYA PRADESH THE LAND OF DIAMONDS
Mineral production in Madhya Pradesh (‘000 MT)
Mineral
2015-16
(till February 2016)
Coal 96,436
Bauxite 505.8
Copper ore 2,300
Copper conc. 62.11
Iron ore 2,291
Manganese ore 638.2
Phosphorite 62.68
Diamond (in carat) 32.06
Limestone 34,576
Mineral production of Madhya Pradesh as a
share of India’s reserves in per cent in 2015-16
(till February 2016))
1.66%
1.93%
4.54%
12.61%
16.93%
33.92%
48.82%
64.96%
100%
Iron Ore
Bauxite
Phosphorite
Limestone
Coal
Manganese ore
Copper Conc
Copper Ore
Diamond
6464MARCH 2017 For updated information, please visit www.ibef.org
KEY INDUSTRIES – MINERAL-BASED INDUSTRY … (3/3)
MADHYA PRADESH THE LAND OF DIAMONDS
Hindustan Copper Ltd
NMDC Ltd
• Hindustan Copper Ltd (HCL) is a vertically integrated copper manufacturing company. In 1982,
the company established its Malanjkhand copper project, which has the single-largest copper
deposit in the country. The Malanjkhand mine has a copper deposit of 221 million tonnes with
1.3% copper concentration. The company possesses an open-pit mine with a capacity of 2
million tonnes per annum, concentrator plant, tailing disposal system and other auxiliary
facilities. The plant contributes around 80.0% of the copper production of the company. HCL’s
mines and plants are spread across Rajasthan, Jharkhand, Madhya Pradesh and Maharashtra.
HCL plans to expand its flagship Malanjkhand mine with an investment of US$ 308.1 million.
During 2015-16, the company recorded revenues of US$ 147.99 million.
• NMDC is a public sector unit involved in mining of a wide range of minerals such as iron,
copper, limestone, dolomite, gypsum, tin, graphite and diamond. The company is the single
largest iron ore producer in the country. NMDC is the only organised producer of diamonds in
India and produces diamond from its Majhgawan mine at Panna in Madhya Pradesh. The
production capacity of the mine is around 84,000 carat per annum. The mine employs around
199 persons. Income of US$ 986.2 million was recorded by the company during 2015-16.
6565MARCH 2017
TRIFAC, established in 2004, is the state’s single window clearance facility. As a nodal agency, it extends customised
incentives to mega projects (investment over US$ 4.6 million).
TRIFAC is a coordinating interface between entrepreneurs and government agencies and provides effective pre-investment
and post-investment services.
For updated information, please visit www.ibef.org
TRADE AND INVESTMENT FACILITATION CORPORATION LIMITED … (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Source: MP Trade and Investment Facilitation Corporation Ltd
TRIFAC - Trade and Investment Facilitation Corporation Limited
6666MARCH 2017
TRIFAC activities Description
APEX Level Investment Promotion
Empowered Committee
• For project investments over US$ 4.6 million, TRIFAC facilitates obtaining of
customised economic package through APEX Level Committee headed by
Chief Minister.
Project Clearance and Implementation Board • Acts as an empowered body to grant in-principle approval to mega projects.
Madhya Pradesh Investment Facilitation Act
2008
• Acts as member secretary for APEX and State Level Committee, which
ensures speedy approvals for various clearances/consents/permissions.
Combined application form
• Under the MP Investment Facilitation Act 2008, a single form for obtaining
all necessary clearances.
Investment drive
• TRIFAC organises investor meets, conducts road shows and industry
interactive sessions to stimulate investments in the state.
Memorandum of Understanding
• TRIFAC acts as a nodal agency for executing the MoU process for
investment plans related to the industry sector.
Delhi-Mumbai Industrial Corridor • TRIFAC acts as a nodal agency for executing the project in the state.
Industrial Investment Promotion Assistance
2004
• TRIFAC acts as a nodal agency for providing industrial investment
assistance in the state.
Audyogik Kendra Vikas Nigam Limited (AKVN) • AKVN is the subsidiary company of MP TRIFAC.
Land Bank
• Responsible for maintaining a land database meant for setting up industries
in the state.
For updated information, please visit www.ibef.org
TRADE AND INVESTMENT FACILITATION CORPORATION LIMITED … (2/2)
MADHYA PRADESH THE LAND OF DIAMONDS
Source: MP Trade and Investment Facilitation Corporation Ltd
TRIFAC - Trade and Investment Facilitation Corporation Limited
6767MARCH 2017 For updated information, please visit www.ibef.org
KEY APPROVALS REQUIRED … (1/2)
MADHYA PRADESH THE LAND OF DIAMONDS
List of approvals and clearances required Departments to be consulted
Prior to setting up the unit
Registration DIC for SSI/ SIA for large and medium industries
Allotment of land/shed DI/ SIDC/ Infrastructure Corporation/ SSIDC
Permission for land use
District authorities/ State DI/ Dept. of Town and
Country Planning (in case industry is located
outside an industrial area)
No objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board
Approval for construction activity and building plan
Town and Country Planning/ Municipal and local
authorities/ Chief Inspector of Factories/ Pollution
Control Board, Electricity Board
No objection certificate Fire Department
Provisional Trade Tax registrations
Central and State Excise Departments, Sales Tax
Department
Source: MP Trade & Investment Facilitation Corp. Ltd., TechSci Research
Note: SIDC- State Industrial Development Corporation, SSI- Small Scale Industries, SIA-
Secretariat of Industrial Assistance, DIC- District Industrial Center,
SSIDC- Small Scale Industrial Development Corporation
6868MARCH 2017 For updated information, please visit www.ibef.org
KEY APPROVALS REQUIRED … (2/2)
MADHYA PRADESH THE LAND OF DIAMONDS
List of approvals and clearances required Departments to be consulted
Before commencement of production
No objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board
No objection certificate Fire Department
Permanent trade tax registration under Central Sales Tax Act 1956
Central and State Excise Departments, Sales Tax
Department
Registration under Central Sales Tax Act 1956
After commencement of production/activity
Registration Department of Commerce, Industry & Employment
Madhya Pradesh State Report March 2017
Madhya Pradesh State Report March 2017
Madhya Pradesh State Report March 2017
Madhya Pradesh State Report March 2017
Madhya Pradesh State Report March 2017
Madhya Pradesh State Report March 2017
Madhya Pradesh State Report March 2017
Madhya Pradesh State Report March 2017
Madhya Pradesh State Report March 2017

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Madhya Pradesh State Report March 2017

  • 1. 11MARCH 2017 For updated information, please visit www.ibef.org MADHYA PRADESH THE LAND OF DIAMONDS MARCH 2017 (As of 24 March 2017)
  • 2. 22MARCH 2017 ❖ Executive Summary …………….………. 3 ❖ Advantage State ………………………… 4 ❖ Vision 2018 ………………………….…… 5 ❖ Madhya Pradesh – An Introduction …… 6 ❖ Budget 2016-17…….………………..…. 17 ❖ Business Opportunities …………..….... 41 ❖ Doing Business in Madhya Pradesh .... 71 ❖ State Acts & Policies …………..….…... 72 For updated information, please visit www.ibef.org MADHYA PRADESH THE LAND OF DIAMONDS MARCH 2017
  • 3. 33MARCH 2017 For updated information, please visit www.ibef.org EXECUTIVE SUMMARY Strong economic growth • GSDP of Madhya Pradesh grew at a compound annual growth rate (CAGR) of 11.86% during 2005-06 to 2015-16. Rich in natural resources • The state is rich in natural resources: fuels, minerals, agriculture & biodiversity. • Madhya Pradesh has ample reserves of coal & coal-bed methane (8.38% of India’s total coal reserves & 218.04 BCM of methane). • The state has the largest reserves of diamond & copper in India. • Madhya Pradesh has significant reserves of limestone, manganese & dolomite. Potential for tourism • Madhya Pradesh boasts of rich ancient cultural & religious heritage. • Due to a thick forest cover, the state has immense potential for wild life, adventure & eco- tourism. Infrastructure support • Due to its centralised location, Madhya Pradesh has excellent connectivity. Many FMCG companies have moved their warehouses here to save on logistics expenses. • Upcoming theme based SEZs near Jabalpur, industry parks in Indore & food parks at multiple locations aim to promote sectoral growth. • MP is emerging as a solar power hub & is targeting generation of 2,650 MW of solar power by 2017. MADHYA PRADESH THE LAND OF DIAMONDS Source: TechSci Estimates based on “Advanced Estimates” provided by Directorate of Economics and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas
  • 4. 44MARCH 2017 For updated information, please visit www.ibef.org1 From Bhopal Strategically located business hub • The state is centrally located in India. Major consumer goods multinationals are situated in Madhya Pradesh in order to access major consumer markets & metro urban communities like New Delhi (740 km1), Mumbai (780 km1), Kolkata (1,350 km1) & Chennai (1,435 km1) • Geographical proximity with the automotive hub of NCR has favourably impacted Madhya Pradesh’s auto ancillary industry. The state’s well developed automotive cluster is now home to around 30 auto component & ancillary units. Advantage Madhya Pradesh ADVANTAGE MADHYA PRADESH MADHYA PRADESH THE LAND OF DIAMONDS Attractive investment avenues • With around 33% of the region under forests, Madhya Pradesh has an enormous potential for drug, wood & agro-based commercial enterprises. Ideal soil & climatic conditions have made it a primary producer of coarse cereals, oilseeds & soybean in India. • The cluster-based advancement methodology promotes investments in automotive, textiles & biotechnology. • Plentiful limestone & coal reserves give development avenues for the cement industry. • A rich cultural heritage, scenic beauty & wildlife sanctuaries offer a promising tourism industry. Indore is all set to be the new IT capital with TCS & Infosys opening their offices. Policy and infrastructure support • Madhya Pradesh offers distinctive monetary & strategy/policy incentives for organisations under the Industrial Promotion Policy- 2010 & Action Plan, other than strategies/ policies for IT, biotechnology, tourism & SEZs. To pull in investors and promote entrepreneurs, the state government has selected TRIFAC, an agency that encourages a single window system, for speedy approvals of different clearances & consents. • The state government has made some well-planned infrastructure investments for roads & railroad systems. Government offers various subsidies under ‘Industrial Investment Promotion Assistance (IIPA) under 2014 Schemes’ for investment in development of road, electrification, water, industrial parks, etc. Rich resource pool • Madhya Pradesh adds around 270,000 graduates to the workforce each year, of which around 90,000 have technical skills. At labour costs of US$ 3.7 per day, the state has a significant cost advantage over metros. • The state houses some of the country’s most reputed institutes including Indian Institute of Management, Indian Institute of Foreign Management & Indian Institute of Technology.
  • 5. 55MARCH 2017 For updated information, please visit www.ibef.org MADHYA PRADESH VISION 2018 MADHYA PRADESH THE LAND OF DIAMONDS Agriculture Skill development Infrastructure Transport HousingInvestment promotion Tourism • Expand the outreach of agriculture technology & irrigation to remote farms. • Promote farm level diversification and value addition. • Connect all villages through world class highways • To be a leader in renewable energy & green technology • Keep the state power surplus by addition to the power generation capacity • Skill development by expanding training infrastructure & capacity to aid 1 million youth in attaining wages & self employment • Develop the transportation network to enhance rural connectivity • Reform the institutional machinery for creating public transport facilities • Improve civic infrastructure, including public & household sanitation facilities • Expand availability of affordable housing • Enhance the ease of doing business for the benefit of investors • Attract higher investments in manufacturing, services & labour intensive sectors • Make the state a world class tourist destination • Promote religious, adventure & heritage tourism & attract private investment Environment • Promote social & agro forestry • Revitalise ground water resources • Private sector participation in maintaining waste disposal & water conservation Vision 2018 Source: Government of Madhya Pradesh
  • 6. 66MARCH 2017 For updated information, please visit www.ibef.org MADHYA PRADESH FACT FILE Madhya Pradesh is located in central India. The state is surrounded by Uttar Pradesh in North, Chhattisgarh in East, Maharashtra in South, Gujarat and Rajasthan in west. The most commonly spoken language of the state is Hindi. English and Marathi are the other languages used. Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of the key cities of the state. There are 11 agro-climatic conditions and a variety of soils available in the state to support cultivation of a wide range of crops. Source: Government of Madhya Pradesh website, National Informatics Centre Madhya Pradesh Parameters Madhya Pradesh Capital Bhopal Geographical area (sq km) 308,000 Administrative districts (No) 51 Population density (persons per sq km) 236 Total population (million) 72.6 Male population (million) 37.6 Female population (million) 35.0 Sex ratio (females per 1,000 males) 931 Literacy rate (%) 70.6 MADHYA PRADESH THE LAND OF DIAMONDS Source: Maps of India
  • 7. 77MARCH 2017 Parameter Madhya Pradesh All states Source Economy 2015-16 2015-16 GSDP as a percentage of all states’ GSDP 4.16 100.0 TechSci Estimates based on “Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh GSDP growth rate (%) 16.6 8.71 TechSci Estimates based on “Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh Per capita GSDP (US$) 1,188.98 1,546 TechSci Estimates based on “Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh Physical Infrastructure Installed power capacity (MW) 18,917.16 305,554.25 Central Electricity Authority, as of August 2016 Wireless subscribers (no) 64,379,812 1,078,422,215 Telecom Regulatory Authority of India, as of October 2016 Internet subscribers (no) 21,270,000 367,480,000 Telecom Regulatory Authority of India, as of September 2016 National Highway length (km) 5,193.57 100,087.08 NHAI & Roads and Building Department Airports (no) 5 125 Airports Authority of India For updated information, please visit www.ibef.org MADHYA PRADESH IN FIGURES … (1/2) MADHYA PRADESH THE LAND OF DIAMONDS
  • 8. 88MARCH 2017 Parameter Madhya Pradesh All states Source Social Indicators Literacy rate (%) 70.6 73.0 Census 2011 Birth rate (per 1,000 population) 26.3 21.6 SRS Bulletin Investment FDI equity inflows (US$ billion) 1.291 288.63 Department of Industrial Policy & Promotion, From April 2000 to March 2016 Industrial Infrastructure PPP projects completed & operational (no) 110 1,246 DEA, Ministry of Finance, Government of India, July 2016 Operational SEZs (No) 1 186 Ministry of Commerce & Industry, Department of Commerce, July 2016 1Including Chhattisgarh PPP: Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System For updated information, please visit www.ibef.org MADHYA PRADESH IN FIGURES … (2/2) MADHYA PRADESH THE LAND OF DIAMONDS
  • 9. 99MARCH 2017 At current prices, the gross state domestic product (GSDP*) of Madhya Pradesh for 2015- 16 stood at US$ 86.32 billion. Between 2005-06 and 2015-16, GSDP of the state grew at a CAGR of 11.86%. Source: GSDP* - “Advanced Estimates” provided by Directorate of Economics and Statistics, Government of Madhya Pradesh GSDP of Madhya Pradesh at current prices (in US$ billion) For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – GSDP MADHYA PRADESH THE LAND OF DIAMONDS 28.15 32.03 40.1 42.75 48.08 57.7 66.49 68.52 74.8 84.27 86.32 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
  • 10. 1010MARCH 2017 The net state domestic product (NSDP#) of Madhya Pradesh was about US$ 77.55 billion in 2015-16. During 2005-06 and 2015-16, state’s NSDP grew at a CAGR of about 12.06%. NSDP of Madhya Pradesh at current prices (in US$ billion) For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – NSDP MADHYA PRADESH THE LAND OF DIAMONDS Source: NSDP# - “Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh, Government of Madhya Pradesh 24.83 28.28 35.49 38.03 42.74 51.0 59.05 61.61 67.4 75.6 77.55 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
  • 11. 1111MARCH 2017 The state’s per capita GSDP^ in 2015-16 was US$ 1188.98 in comparison with US$ 389.4 in 2005-06. Per capita GSDP of the state increased at a CAGR of 10.78% during 2005-06 and 2015-16. Source: Per Capita GSDP^ - calculated using GSDP in million US$/population in million Per capita GSDP of Madhya Pradesh at current prices (in US$) For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PER CAPITA GSDP MADHYA PRADESH THE LAND OF DIAMONDS 427 477 587 616 680 805.0 912 926 995.0 11211188.98 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
  • 12. 1212MARCH 2017 The state’s per capita NSDP& in 2015-16 was US$ 1068.26 in comparison with US$ 377 in 2005-06. Per capita NSDP in the state increased at a CAGR of 10.98%, during 2005-06 and 2015-16. Source: per capita NSDP& - calculated using NSDP million US$/ Population in million Per capita NSDP of Madhya Pradesh at current prices (in US$) For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PER CAPITA NSDP MADHYA PRADESH THE LAND OF DIAMONDS 377 422 520 548 604 711.0 810 828 896.0 10061068.26 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
  • 13. 1313MARCH 2017 For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP MADHYA PRADESH THE LAND OF DIAMONDS In 2015-16, the tertiary sectorµ contributed 43% to the state’s GSDP at current prices, followed by primary sectorµ with a contribution of 39.23% & secondary sectorµ contributing 17.8%. At a CAGR of 15.32%, the primary sector witnessed the fastest growth among the 3 sectors, during 2004-05 to 2015- 16. This was driven by agriculture, forest & logging & fishing. The tertiary sector expanded at a CAGR of 11.37% between 2004-05 & 2015-16. Growth has been driven by trade, hotels, real estate, finance, insurance, transport, communications & other services. The secondary sector expanded at a CAGR of 7.69% between 2004-05 and 2015-16 driven by manufacturing, electricity, gas & water supply & construction sectors. Madhya Pradesh will be the 1st state in India to release a happiness index in 2018. The index, based on questionnaires will assist the government in gauging the happiness quotient of people in India. A 4-member team of the newly constituted happiness department is to visit Bhutan in March 2017, to study & understand the Bhutanese model, to execute, implement & achieve the objective. The government has passed an amount of US$ 0.71 million in the budget, for the same. Source: Sector-wise %share of GSDPµ - “Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh, Government of Madhya Pradesh GSDP composition by sector CAGR 15.32% 11.37% 7.69% 28% 39.23% 27% 7.80% 45% 43% 2004-05 2015-16 Primary Secondary Tertiary
  • 14. 1414MARCH 2017 Source: MP State Facts Profile Department of Agriculture and Cooperation, National Horticulture Board, TechSci Research 1Thousand bales of 170 kg each Crop Annual production in 2015-16 (‘000 metric tonnes) Wheat 15,644.1 Fruits 6,290 Vegetables 14,797.74 Sugarcane 4,716.1 Onion 2,848 Rice 3,408.4 Food grains 27,876.6 Spices 699.10 Honey 1.8520 Coarse cereals 3,658.8 Total pulses 4,820 Agriculture is the main source of livelihood for the people of the Madhya Pradesh. In 2015-16, the state recorded utilisation of 22,501.8 thousand hectares of land for production of horticulture crops. Wheat, soyabean, gram, sugarcane, rice, maize, cotton, rapeseed, mustard & arhar are the major crops of the state. In 2015-16, total food grain production in the state stood at 27.88 million metric tonnes. In 2014-15, total pulses production in the state stood at around 4.82 million tonnes. In addition, the share of Madhya Pradesh in the overall production of pulses in India was around 27.8%. Madhya Pradesh is the largest producer of pulses, oilseeds soyabean and gram in the country. The state is the 2nd highest producer of wheat, masoor & mustard across India. It is one of the leading producers of garlic & coriander. The production of wheat, cotton, baajra, corn, gram, soyabean, mustard, groundnut, paddy, jowar & corn in the state, is above the national average. Total budget allocation for the agricultural & allied industries during 2016-17 is estimated to be US$ 843.42 million. For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION…(1/2) MADHYA PRADESH THE LAND OF DIAMONDS
  • 15. 15For updated information, please visit www.ibef.org MADHYA PRADESH THE LAND OF DIAMONDS MARCH 2017 As per budget 2016-17, various seminars were conducted during 2015-16, for promotion & development of bio-products as well as bio-agriculture in the state. During 2016-17, the government decided to establish custom hiring centre & implement grant schemes for the delivery of agricultural instruments across the state. In order to overcome the drawbacks of National Agricultural insurance Scheme, a new scheme – Prime Minister Crop Insurance Scheme was announced by the Prime Minister, which would be effective from 2016. Moreover, for agricultural soil, water conservation as well as agricultural research & education, the state government has allocated an amount of US$ 373.96 million as per the budget 2016-17. During 2016-17, US$ 1.14 billion would be sanctioned by the state government for irrigation & flood control sector in the state. Moreover, an allocation of US$ 113.5 million was made by the state government for horticulture & food processing sector. ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION…(2/2) Source: State Budget 2015-16
  • 16. 1616MARCH 2017 For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – FDI INFLOWS & INVESTMENTS MADHYA PRADESH THE LAND OF DIAMONDS According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows1, from April 2000 to March 2016, totalled to US$ 1.29 billion. Power generation & manufacturing were the key sectors which attracted the majority share of FDI inflow during 2014-15. In addition, the investments in real estate & services are also gaining momentum. In 2014-15, exports from Madhya Pradesh reached US$ 4.19 billion in value terms, reflecting a CAGR of 8.4% between 2008-09 & 2014-15 With a capital investment of US$ 488.62 million Government of Madhya Pradesh approved 6 projects in January 2017. FDI equity inflows1, 2008-09 to 2014-15 (US$ million) Source: Department Of Industrial Policy & Promotion 1Including Chhattisgarh; 44 54 451 123 220 119 100 80
  • 17. 1717MARCH 2017 Source: State Budget 2016-17 For updated information, please visit www.ibef.org STATE BUDGET 2016-17 MADHYA PRADESH THE LAND OF DIAMONDS Annual budget allocation in the state, for 2016-17, is proposed to be US$ 9.76 billion. Sector Budget - 2016-17 (US$ million) Agriculture & allied activities 843.42 Rural development 1,771.6 Irrigation and flood control 1,144.96 Industry and mining 424.77 Transport 711.61 Science, technology and environment 35.69 General economic services 141.58 Social services 4,635.95 General services 50.66
  • 18. 1818MARCH 2017 For updated information, please visit www.ibef.org Madhya Pradesh has 20 national highways measuring 5,184.57 km. The state also has 10,859 km of state highways. Development of major roads in the state is managed by Madhya Pradesh Road Development Corporation Limited (MPRDC), which executes tasks taken up under Public–Private Partnership (PPP) & those supported by Asian Development Bank (ADB). As per the Department of Economic Affairs, the state had 131 government PPP projects in the roads sector at various stages of development. Under Prime Minister Graamin Sadak Yojana, during 2016-17, the state government has set a target of constructing around 2,000 km of roads in the state. For the development of various roads in the state, allocation of US$ 1.12 billion has been proposed by the state government As per the Budget Scheme 2015-16 construction of 7,575 roads with total length of 19,386 km for linking 9,109 villages under Mukhyamantri Gram Sadak Yojana is targeted by the Government of Madhya Pradesh. In February 2017, the cabinet sanctioned the renovation of 10,000 km of rural roads, under the Chief Minister's Rural Roads Scheme. Source: NHAI, Ministry of Road Transport & Highways, State Budget 2016-17 12015-16 Road type Road length (km) (2015) National highways 5,193.57 1 State highways 10,859 Major district roads 19,574 Village roads 24,209 Road length 59,835 PHYSICAL INFRASTRUCTURE – ROADS MADHYA PRADESH THE LAND OF DIAMONDS As per the state budget 2016-17, work on development of various district roads had started in 2015-16 and the renovation of these roads is expected to be completed over a span of three years. However, for this purpose, the state government is trying to secure a loan from ADB as well as new development banks. As of November 2016, the New Development Bank created by BRICS countries approved a loan of US$ 350 million for the development of major district roads in the state.
  • 19. 1919MARCH 2017 Madhya Pradesh has around 4,954 km of railway lines & the state is connected to different states of the country through more than 425 trains which travel on daily basis. The railway network in Madhya Pradesh primarily falls under the West-Central Railways, which was formed in 2002 and is headquartered in Jabalpur. Part of the state is also covered by Central and Western Railways. Being centrally located, the railway network in the state assumes great significance. Madhya Pradesh’s capital, Bhopal is one of the foremost railway junctions in the country, as 220 trains travel through the capital alone. Mineral and agro-based industries in Madhya Pradesh are highly dependent on the railway network of the state. It supports these industries by transporting bauxite, limestone, dolomite, clinker, fertiliser & de-oiled cake. In February 2015, the state government affirmed the constitution of Madhya Pradesh Metro Rail Company for the advancement of light metro projects in Bhopal and Indore. As per annual budget 2016-17, construction work on phase-I of 28 km long Bhopal metro rail & 31 km long Indore metro rail was initiated in 2015-16, and is expected to be completed by 2018-19. For these projects, a total loan of US$ 458.30 million & US$ 1.83 billion would be provided by the central government as well as Japan International Corporation Agency respectively. Source: Maps of India For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – RAILWAYS MADHYA PRADESH THE LAND OF DIAMONDS Moreover, during 2016-17, the state government allocated US$ 69.04 million for construction work on phase-I of the 28 km-long Bhopal metro rail and 31 km- long Indore metro rail. In December 2016, Madhya Pradesh Cabinet approved the detailed project reports (DPRs) of the Metro rail projects for Bhopal and Indore, costing US$2.12 billion
  • 20. 2020MARCH 2017 Madhya Pradesh has 5 operating airports at Jabalpur, Bhopal, Indore, Gwalior & Khajuraho. Indore & Bhopal airports are the busiest airports in the state. In March 2016, passenger traffic at Indore airport reached 141,765 passengers with overall aircraft movement of 1,209 aircrafts. For the same month, passenger traffic at Bhopal airport was 52,037 passengers with overall aircraft movement of 614 aircrafts. Both Indore & Bhopal airports have strong cargo handling capacity. In March 2016, Indore airport handled 621 tonnes of cargo, whereas Bhopal airport handled 78 tonnes of cargo. Modernisation work of Bhopal & Indore airports has also been completed. The government has announced to undertake development of Gwalior & Khajuraho airports under the 12th Five Year Plan. For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – AIRPORTS MADHYA PRADESH THE LAND OF DIAMONDS Source: Airports Authority of India No. of passengers Airport 2014-15 2015-16 Indore 1,353,300 1,692,892 Bhopal 416,284 662,615 Airport indicators in Madhya Pradesh Aircraft movement Airport 2014-15 2015-16 Indore 14,371 14,858 Bhopal 5,375 7,755 Freight (in tonnes) Airport 2014-15 2015-16 Indore 6,315 6,992 Bhopal 937 1,153
  • 21. 2121MARCH 2017 For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER … (1/3) MADHYA PRADESH THE LAND OF DIAMONDS Source: Central Electricity Authority; (1) – Figures as of August 2016 As of August 2016, Madhya Pradesh had total installed power generation capacity of 18,917.16 MW, comprising 5,867.62 MW under state utilities, 4,540.47 MW under central utilities and 8,509.07 MW under the private sector. Of the total installed power generation capacity, 12,216.23 MW was contributed by thermal power, 3,223.66 MW was contributed by hydropower, 273.24 MW was contributed by nuclear power and renewable power contributed 3,204.03 MW. Madhya Pradesh is on its way to become a solar power hub, with 114 projects currently. The total budget allocation for the energy sector in the state is estimated to be US$ 3.05 billion during 2016-17. Installed power capacity (MW) 8,574 9,351 12,902 14,259 16,813 18,571 18,917 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17(1) 65% 17% 16% 2% Thermal Power Hydropower Renewable Power Nuclear Power Break-up of installed capacity by source of power generation (2016-171) Source: Central Electricity Authority 1Upto August 2016
  • 22. 2222MARCH 2017 Madhya Pradesh Power Generating Corporation Ltd. is a state owned company engaged in electricity generation. The power distribution business is being managed through 3 government-controlled entities: Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Ltd., Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd., & Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Ltd. Madhya Pradesh Power Transmission Company carries out intra-state transmission of electricity, State Transmission Utility & State Load Dispatch Centre. Madhya Pradesh Power Trading Corporation Ltd. deals with power trading & other related activities. For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER … (2/3) MADHYA PRADESH THE LAND OF DIAMONDS Segment Company name Power generation • Madhya Pradesh Power Generating Corporation Limited Power distribution • Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited (MPPoKVVCL) • Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (MPPaKVVCL) • Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (MPMaKVVCL) Power transmission • Madhya Pradesh Power Transmission Corporation Limited Power trading • Madhya Pradesh Power Trading Corporation Limited Distributor Area covered MPPoKVVCL Jabalpur, Sagar, Shahdol and Rewa MPPaKVVCL Indore and Ujjain MPMaKVVCL Bhopal, Hoshangabad, Gwalior and Chambal Source: Energy Department-Government Of Madhya Pradesh
  • 23. 2323MARCH 2017 For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER … (3/3) MADHYA PRADESH THE LAND OF DIAMONDS Through the Atal Jyoti Abhiyaan, the state government aims to provide round-the-clock quality power supply. The scheme is currently operational in six districts, namely Jabalpur, Mandla, Shahdol, Umaria, Anooppur and Burhanpur. Under project name Vindhyachal, NTPC has commissioned the country’s largest power generation plant in the state. Unit- 13 of Vindhyachal TPP-V, with capacity of 500 MW, was commissioned in August 2015. With this the total approved capacity of 4,760 MW was installed by the company. The coal based Sasan UMPP aims to build large capacities at low cost. The resultant generated power would be sold at low tariffs. In April 2015, the 3,960 MW Sasan ultra mega power project has been fully commissioned in Madhya Pradesh. The project is being developed with an investment of US$ 4.21 billion. As of April 2016, the plant had achieved 100 per cent PLF (plant load factor). The Government of Madhya Pradesh allocated US$ 28.1 million for the development and promotion of new and renewable energy in the state during 2016-17.
  • 24. 2424MARCH 2017 Telecom infrastructure- as of May 2016 Wireless subscribers 64,379,812 Wire-line subscribers 1,035,085 Internet subscribers 1 21,270,000 Teledensity (in%) 62.49 Source: Telecom Regulatory Authority of India, Department of Telecommunications 1As of September 2016 According to Telecom Regulatory Authority of India (TRAI), Madhya Pradesh had nearly 64.37 million wireless subscribers & 1.035 million wireline subscribers, as of October 2016. As of October 2016, teledensity (telephone connections per 100 persons) in Madhya Pradesh was 62.49%. The state has been identified by Ministry of Home Affairs for provision of Telecom Connectivity in LWE affected areas. The scheme is being executed by BSNL. The state has given consent for establishment of BharatNet/ National Optical Fibre Network (NOFN) project. The project is planned to connect all gram panchayats through optical fibre, utilising existing fibres of PSUs viz. BSNL, RailTel & Power Grid & laying incremental fibre wherever necessary to bridge the connectivity gap between gram panchayats (GPs) and blocks, for providing broadband connectivity. For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – TELECOM MADHYA PRADESH THE LAND OF DIAMONDS Some of the major telecom operators in Madhya Pradesh Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel Vodafone Essar Idea Cellular Reliance Communications Tata Teleservices
  • 25. 2525MARCH 2017 For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (1/3) MADHYA PRADESH THE LAND OF DIAMONDS Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 27 projects costing around US$ 418.65 million have been sanctioned for the development of urban centres such as Bhopal, Indore, Jabalpur and Ujjain. Some of the key undertakings are in segments such as roads and flyovers, water supply, tempest-water drainage, sewerage, solid-waste management and mass rapid transport systems. The Asian Development Bank (ADB) has funded 16 ventures worth US$ 33.8 million for Bhopal in the regions of water supply, sewerage and sanitation, tempest-water drainage and solid-waste management. Of the 16 undertakings, two have been finished and others are at different phases of development. The state government has built the Madhya Pradesh Urban Infrastructure Fund (MPUIF) for the improvement of urban framework and the procurement of better administration in the state. MPUIF helps in sourcing funds for projects through various sources, for example capital markets, line of credits and GOI fund (e.g. JNNURM, UIDSSMT, PFDF, VGF, and RAY). The fund ensures cost administration and timely implementation of urban framework ventures. Under the Urban Infrastructure and Governance (UIG) programme of JNNURM, five projects worth US$ 36.4 million covering cities such as Bhopal, Indore and Ujjain have been approved and are in the transition phase. Under the first phase of Chief Minister Infrastructure Development Scheme, work on development of roads, gardens, footpaths, street lights, etc. was completed in across 277 cities of the state during 2015-16. Under Swachh Bharat Mission, a total of 5,068 seats have been constructed in around 145 thousand personal and public toilets of the state, as of 2015-16. Source: Bhopal Municipal Corporation, NNURM, Ministry of Urban Development, Government of India
  • 26. 26For updated information, please visit www.ibef.org MADHYA PRADESH THE LAND OF DIAMONDS MARCH 2017 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (2/3) As per the budget 2016-17, following announcements were made for enhancement of urban infrastructure in the state: Allocation of US$ 1.63 billion has been proposed by the state government for urban administration and development in the state. For the second phase of Chief Minister Infrastructure Development Scheme, the state government proposed an allocation of US$ 42.10 million. Under Affordable Housing in Partnership scheme, for each dwelling slum area, US$ 86 thousand has been allocated by the central and the state government. Provided sanction for the construction of 634 community and 1,77,807 individual toilets under Mukhya Mantri Shahri Swacchata Mission. The promotion of e-Governance has been started in the urban region of the state by E-Nagar Palika Project. For increasing developmental activities in the state, a sum of US$ 1.09 billion will be provided by the government to the state. By 2018, the government is also aiming to provide 5,00,000 houses in different cities of the state. Provided sanction for development of 60,000 houses for the urban poor by an allocation of US$ 248.8 million under urban development scheme. In addition to this, a sanction of US$ 139.5 million has also been provided for 15,340 houses under Rajeev Awas Yojna. HDFC Bank is planning to set up 10 new branches in Madhya Pradesh as a part of its expansion plan. In 2016 the bank had 130 branches in MP, and 8-10 new branches are being planned to be opened in the state in current financial year. Source: Budget 2016-17
  • 27. 2727MARCH 2017 Focus areas of urban development in Madhya Pradesh Water supply Sewerage system Solid-waste management Others The average per capita water supply in major cities, such as Indore, is around 80 litres per day. Under the JNNURM, cities are being planned to achieve per capita water supply of 135 litres per day between 2015 and 2021. Sixty seven projects worth US$ 243.8 million have been approved between March 13 and March 2014 and are in the transition phase for water supply under JNNURM. During 2015-16, the government proposed an outlay of US$ 355.87 million for improving rural & urban water supply under the Water Supply and Sanitation Scheme. In cities such as Indore, around 55% of the population is connected to a sewage network. Under the JNNURM, the entire population in the cities will be connected to the sewage network. Three projects worth US$ 100 million have been sanctioned in 2006-07 for sewage treatment under JNNURM. Indore and Ujjain generate around 500 tonnes per day (TPD) and 160 TPD of solid-waste, respectively. Under the JNNURM, the entire solid waste is expected to be collected and treated. A project worth US$ 10.7 million has been sanctioned. Three solid waste management projects have been identified in Dewas, Sagar and Katni. Two projects worth US$ 75.6 million have been sanctioned between 2006-07 and 2009-10 for improvement of the drainage systems. Seven projects worth around US$ 139.5 million have been sanctioned for improvement of the transport system. Source: MP Trade & Investment Facilitation Corporation Ltd., JNNURM, Ministry of Urban Development, Government of India, TechSci Research For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (3/3) MADHYA PRADESH THE LAND OF DIAMONDS
  • 28. 2828MARCH 2017 For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS … (1/2) MADHYA PRADESH THE LAND OF DIAMONDS Name of project Sector PPP type Status Project cost (US$ million) Road upgradation (Lebad-Jaora) Project Build-Operate-Transfer (BOT) Transport 64.30 Operation and maintenance stage Road Upgradation Project (Bankhlafata-Kogawa- Borawa-Sarvardevala) Project Not available Transport 5.14 Operation and maintenance stage Road upgradation (Jaora-Nayagaon) Project Build-Operate-Transfer (BOT) Transport 61.73 Operation and maintenance stage Road Upgradation Project (Bahari-Hanumana) Project Design-Build-Finance-Operate- Transfer (DBFOT) Transport 16.32 Operation and maintenance stage Road Upgradation (Bhopal-Dewas) Project Design-Build-Finance-Operate- Transfer (DBFOT) Transport 65.21 Operation and maintenance stage Road Upgradation Project (Badwani-Palsood- Sendhawa) Project Design-Build-Finance-Operate- Transfer (DBFOT) Transport 15.89 Operation and maintenance stage Road Upgradation Project (Ashok Nagar-Vidisha) Project Build-Operate-Transfer (BOT) Annuity Transport 13.31 Operation and maintenance stage Electricity Distribution Project (Ujjain) Not available Energy 10.70 Operation and maintenance stage Road Upgradation Project (Ashapur-Khalwa- Singhot) Project Build-Operate-Transfer Annuity Transport 17.28 Operation and maintenance stage Dewas-Ujjain-Badnagar-Badnawar Road Project Build-Operate-Transfer (BOT) Transport 7.53 Operation and maintenance stage Road Upgradation Project (Alirajpur-Jobat) Project Build-Operate-Transfer (BOT) Annuity Transport 6.92 Operation and maintenance stage Source: Department of Economic Affairs
  • 29. 2929MARCH 2017 For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS … (2/2) MADHYA PRADESH THE LAND OF DIAMONDS Name of project Sector PPP type Status Project cost (US$ million) Road Upgradation Project (Waraseoni-Lalbarra) Project Design-Build-Finance- Operate-Transfer (DBFOT) Transport 6.50 Operation and maintenance stage Road Upgradation (Tyonda-Ganjbasoda) Project Build-Operate-Transfer (BOT) Annuity Transport 22.32 Operation and maintenance stage Road Upgradation Project (Umari-Phoop-Pratapur) Project Design-Build-Finance- Operate-Transfer (DBFOT) Transport 11.51 Operation and maintenance stage Road Upgradation Project (Ujjain-Unhel-Nagda-Ghiloda) Project Design-Build-Finance- Operate-Transfer (DBFOT) Transport 28.89 Operation and maintenance stage Road Upgradation Project (Ujjain-Simhastha) Project Build-Operate-Transfer (BOT) Annuity Transport 10.79 Operation and maintenance stage Road Upgradation (Gwalior-Bhind up to UP Border) Project Build-Operate-Transfer (BOT) Transport 45.85 Operation and maintenance stage Road Upgradation Project (Uchera-Nagod-Singhpur- Kalinnjer Road) Project Design-Build-Finance- Operate-Transfer (DBFOT) Transport 17.22 Operation and maintenance stage Road Upgradation (Sheopur-Badora-Khawajapur) Project Build-Operate-Transfer (BOT) Annuity Transport 9.45 Operation and maintenance stage Road Upgradation Project (Tikamgarh-Mehironi) Project Design-Build-Finance- Operate-Transfer (DBFOT) Transport 4.49 Operation and maintenance stage Road Upgradation (Dehgaon-Bamori) Project Build-Operate-Transfer (BOT) Annuity Transport 5.51 Operation and maintenance stage Road Upgradation Project (Tikamgarh-Jatara-Palera- Nowgaon) Project Design-Build-Finance- Operate-Transfer (DBFOT) Transport 15.69 Operation and maintenance stage Source: Department of Economic Affairs
  • 30. 3030MARCH 2017 Source: Ministry of Commerce & Industry For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) … (1/2) MADHYA PRADESH THE LAND OF DIAMONDS Indore SEZ Notified area 1,113.72 hectares Processing zone 519.95 hectare Operational 26 industrial and 2 trading units Number of allotments 42 Number of units operating 41 Investment under implementation US$ 62.2 million (9 units) Exports (2014-15) US$ 489.25 million The state has one operational SEZ as of July 2016 with the name Crystal IT Park SEZ for IT & ITeS enabled services. The SEZ aims to provide an international, competitive and hassle-free environment for export-oriented production. It is exempted from custom duty on import of capital goods, raw material and spares, among others. No licence is required for imports. Central excise duty is exempted on procurement of capital goods, raw material and spares among others from the domestic market. Barring a few sectors, 100% FDI in the manufacturing sector is allowed through the automatic route. Some of the key companies in Indore SEZ • SRF • Flexituff • India Nets • New Tech Pipes • Advance Enzyme Technology • Ipca Laboratories • Amulya Exports • Emerald Tobacco • Pratibha Syntex
  • 31. 3131MARCH 2017 Source: Special Economic Zones in India- Ministry of Commerce & Industry, TechSci Research For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) … (2/2) MADHYA PRADESH THE LAND OF DIAMONDS Industry Location No of SEZs Formally approved SEZs as of July 2016 IT/ITeS Indore, Gwalior, Jabalpur, Bhopal 8 Gems and Jewellery Indore 1 In-principle approved SEZs Multi-product Chhindwara, Sehore 1 As of July 2016, the state had 9 formal approved SEZs that are proposed to be set up in Madhya Pradesh. Bhopal, Indore, Gwalior and Jabalpur are the major locations where SEZs have been approved. These SEZs have been proposed for IT/ITeS, mineral-based, agro-based and multi-products. Industry Location No of SEZs Notified SEZs as of July 2016 IT/ITeS Indore, Gwalior 5
  • 32. 3232MARCH 2017 Madhya Pradesh had a literacy rate of 70.6%; the male literacy rate is 80.5% and the female literacy rate is 60.0%. During 2015-16 (till November 2015), under technical education, the state had a total of 676 institutions with annual enrolment of 146 thousand students. Moreover, under the “Gaon Ki Beti Yojna”, which deals in providing rural girls with high education, 36.79 thousand girls were benefited during 2015-16 (till December 2015). “Make in Madhya Pradesh” is to further the agenda of CM who recently called upon a business community from the US to bring their expertise in the social sectors. For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – EDUCATION.. (1/2) Source: AICTE, Directorate of Technical Education, Madhya Pradesh, Higher Education Department- Government colleges of Madhya Pradesh, Madhya Pradesh Education Portal, National Health Portal, TechSci Research MADHYA PRADESH THE LAND OF DIAMONDS Reputed institutes of Madhya Pradesh Indian Institute of Management (IIM), Indore Indian Institute of Forest Management, Bhopal Institute of Hotel Management, Bhopal International Institute of Professional Studies, Indore Indian Institute of Technology (IIT), Indore Category Literacy rate (%) Total 70.6 Male 80.5 Female 60.0 Educational institutions (as of April 2015) Primary schools 84,011 Total high schools (including private) 6,636 Total higher secondary schools (including private) 5,211 Government colleges 342 Universities 16 Polytechnic institutes 64 Engineering & architecture colleges 229 Management institutes 266 Medical colleges 13 Dental Colleges 11
  • 33. 33For updated information, please visit www.ibef.org MADHYA PRADESH THE LAND OF DIAMONDS MARCH 2017 The state has one approved institute with foreign collaboration for the course of business studies. The name of the institute is Daly College Business School and is affiliated to De Montfort University, Leicester, UK. As per budget 2016-17, following announcements were made: The government proposed an allocation of US$ 3.20 billion, US$ 383.32 million & US$ 129.14 million for the development of school education, higher education & medical education departments in the state. Under Rashtriya Madhyamik Shiksha Abhiyan, allocation of US$ 75.61 million was proposed by the state government during 2016-17. During 2016-17, the state government is targeting building development of 120 high schools & higher secondary schools. The Government of Madhya Pradesh has committed US$ 237 99 million, for expansion of training infrastructure & building capacity for skill development in the state in January 2017 The scheme will be implemented over a period of 5 years & aims to generate employment for youth & provide desired skillset & manpower to the industries. Source: AICTE SOCIAL INFRASTRUCTURE – EDUCATION.. (2/2)
  • 34. 3434MARCH 2017 Source: Ministry of Health & Family Welfare, Government of India, Sample Registration System (SRS) Bulletin, 1Per thousand persons, 2Per thousand live births Health indicators of Madhya Pradesh Birth rate 1 26.3 Death rate 1 8.0 Infant mortality rate 2 54 Life expectancy at birth (years) Male (2011-15) 64.5 Female (2011-15) 65.3 During 2014-15, the healthcare services network of Madhya Pradesh comprised 51 district hospitals, 334 community health centres, 1,171 primary health centres and 9,192 sub- health centres. During 2015-16 (till October 2015), around 965 thousand beneficiaries were benefited with free services under Deendayal Hospital Yojana. The state has a total of 604 ambulances under National Ambulance Service, using which 479 thousand patients were benefited during April-October 2015. For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – HEALTH MADHYA PRADESH THE LAND OF DIAMONDS Health institutions (2014-15) District hospitals 51 Primary health centres 1,171 Sub-Health centres 9,192 Community health centres 334 Civil hospitals 66 Homeopathic hospitals 2 Special newborn care units 53 Nutrition rehabilitation centres 316 Gram aarogya kendras 48,959 The state government proposed an allocation of US$ 862.18 million for the development of Public Health And Family Welfare Department in the state, during 2016-17. Under Public Health Engineering, an allocation of US$ 397.10 million was made by the state government, as per the state budget 2016-17.
  • 35. 3535MARCH 2017 State-level museums in Madhya Pradesh • State Museum, Bhopal • Central Museum, Indore • Rani Durgawati Museum, Jabalpur • Tulsi Museum, Ramvan, Satna • Maharaja Chhatrasal Museum, Chhatarpur • Gujri Mahal Museum, Gwalior For updated information, please visit www.ibef.org CULTURAL INFRASTRUCTURE MADHYA PRADESH THE LAND OF DIAMONDS Madhya Pradesh’s history dates back to the pre-historic age. The United Nations Educational, Scientific and Cultural Organisation (UNESCO) has declared 3 locations in the state as heritage sites: temples at Khajuraho, Buddhist monuments at Sanchi & rock shelters of Bhimbetka. Bhimbetka cave paintings are the biggest repository of prehistoric art in India. Sanchi Stupa, once a centre of Buddhist learning, stands unique as one of the most well-preserved stupas of India. The Directorate of Archaeology, Archives and Museums, is in charge of the support of 349 memorials/landmarks and 44 museums over the state. The state government has built up sports academies to advance games like hockey, shooting, equestrian, water sports & martial arts. Eminent sports personalities are awarded with the Vikram Awards, the Ekalavya Awards & the Vishwamitra (lifetime achievement) Award. In order to enhance the cultural infrastructure in the state, the Government of Madhya Pradesh allocated US$ 30.12 million during 2016-17. However, for sports & youth welfare in the state, an allocation of US$ 33.11 million was proposed by the Government of Madhya Pradesh, as per state budget 2016-17. Among the cultural festivals of Madhya Pradesh, the Khajuraho Festival of Dance & the Tansen Music Festival in Gwalior celebrate classical Indian dance & music. These festivals are well attended by both domestic & international tourists. The state government will also provide an amount of US$ 23.56 million in order to increase the activities related to culture & archaeology. Type of museum (no) State-level museums 6 District-level museums 11 Local museums 6 Site museums 5 District Archaeological Association museums 16 Source: Directorate of Archaeology, Archives and Museums, Government of Madhya Pradesh; State Budget 2015-16
  • 36. 3636MARCH 2017 For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE … (1/4) MADHYA PRADESH THE LAND OF DIAMONDS Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) is the nodal agency for industrial growth in the state. It is the central point to coordinate, activate and ensure implementation of mega infrastructure projects. MPSIDC has identified 19 industrial growth centres to attract medium and large industries & Non-Resident Indians (NRls) to the state and provide various facilities and concessions to them. For a balanced & sustainable growth of industry across the state, MPSIDC established 7 growth centres at Bhopal, Gwalior, Jabalpur, Indore, Rewa, Ujjain & Sagar. These growth centres are known as Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (AKVN). Infrastructure Bhopal AKVN Gwalior AKVN Jabalpur AKVN Area developed (hectares) 1,367 2,062 1,312 Growth centres Mandideep, Pillukhedi Malanpur, Ghirongi, Banmore, Chainpura Borgaon, Maneri Units established Large and medium industries (LMI): 54 Small scale industries (SSI): 558 LMI: 69 SSI: 346 LMI: 17 SSI: 154 Major companies HEG, Crompton Greaves, Procter & Gamble, Godrej, Lupin, Oswal, Vardhman Surya Roshini, Godrej, Grasim, Cadbury, JK, Crompton Greaves Raymond, Hindustan Petroleum, Ayur Special infrastructure Inland Container Depot (ICD), Food Park ICD, food park, stone park Stone park, food park, mineral & Agri specific SEZ Proposed project Engineering cluster, logistic hub, food park, plastic park, textile park Readymade garment park, food park Agri SEZ, food park, textile park, apparel park Source: MP Trade & Investment Facilitation Corp. Ltd.
  • 37. 3737MARCH 2017 For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE … (2/4) MADHYA PRADESH THE LAND OF DIAMONDS Infrastructure Indore AKVN Rewa AKVN Ujjain AKVN Sagar AKVN Area developed (hectares) 3,332 307.4 431.6 359 Growth centres Pithampur, Kheda, Megh Nagar Rewa, Waidhan, Purena Dewas, Maxi Purena, Sidhgawa, Pratappura Units established LMI:272, SSI: 1213 LMI: 8, SSI: 99 LMI: 35, SSI: 171 LMI: 9; SSI: 199 Major companies Eicher, Bridgestone, Hindustan Motors, Man Force, Flexituff, Kinetic, Cummins Birla, Jaypee Ranbaxy, S.Kumars, Gajra, Kirloskar, Tata Ghadi Detergent, RSPL (Rohit Surfactant), Sanmati Foods Special infrastructure Multi-product SEZ, IT SEZ, Food Park, Apparel Park, Inland Container Depot (ICD), IIDC IIDC Food park, IIDC IIDC Proposed projects Auto testing track, food park, pharma cluster, namkeen park, logistics park Industrial area Knowledge city, new industrial area under the Delhi Mumbai Industrial Corridor project Industrial Area Source: MP Trade & Investment Facilitation Corp. Ltd., SEZ: Special Economic Zone
  • 38. 3838MARCH 2017 For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE … (3/4) MADHYA PRADESH THE LAND OF DIAMONDS Source: MP Facilitation Centre for NRI, Indore Special Economic Zone, www.indoresez.nic.in, TechSci Research SEZ: Special Economic Zone The Industrial Promotion Policy 2010 aims to upgrade industrial infrastructure & provide land to investment projects without difficulties. Under the provision of Madhya Pradesh Investment Facilitation Act 2008, the state government is keen to strengthen its single-window system to attract investments. For a structured growth, the government has divided the state into 6 clusters: Indore, Bhopal, Jabalpur, Gwalior, Rewa & Sagar. The state has excellent infrastructure, with 19 industrial development parks, 129 industrial areas, 6 food parks, 8 integrated development centres, 3 dry parks, 1 stone park, 1 IT park, 1 SEZ & an apparel park at Indore. A gems & jewellery park is being developed in Indore to promote the diamond industry in the state. The government plans to develop the project on its own, after failed attempts to find a suitable partner on PPP basis. State owned NTPC plans to construct a 2,640 MW power plant in Barethi in Chattarpur district of Madhya Pradesh at a cost of US$ 3 billion. As of July 2016, the project is still awaiting clearance from the Expert Appraisal Committee (EAC) of Union Environment Ministry. The committee has sought additional information with respect to clearance from National Board for Wildlife. Potential clusters Indore Pharmaceutical, textile, food processing, IT, auto components Bhopal Engineering, textile, biotech, herbal, IT, food processing Jabalpur Garment, mineral, stone, forest, herbal, food processing Gwalior Electronics, IT, FMCG, engineering, stone, food processing Rewa Mineral, cement, forest produce Sagar Mineral processing, stone Under the Centre’s Plastic Park Scheme, Industries & Commerce Department is developing plastic parks at an estimated cost of US$ 27.93 million at Tamot in Raisen and Billoa district, Gwalior.
  • 39. 3939MARCH 2017 For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE … (4/4) MADHYA PRADESH THE LAND OF DIAMONDS Industrial clusters in Madhya Pradesh Bhopal Gwalior Rewa Sagar Indore Jabalpur Source: Maps of India, Madhya Pradesh State Industrial Development Corporation
  • 40. 4040MARCH 2017 For updated information, please visit www.ibef.org MADHYA PRADESH THE LAND OF DIAMONDS SMART CITIES As of September 2015, 7 cities of Madhya Pradesh were announced to be developed as smart cities. In an effort to revolutionise the infrastructure of the state, the state government decided to revamp 7 cities of Madhya Pradesh, namely Bhopal, Indore, Gwalior, Ujjain, Jabalpur, Sagar & Satna. Smart cities in Madhya Pradesh Cities Population Literacy rate Bhopal 2,371,061 80.37% Indore 3,276,697 80.87% Gwalior 2,032,036 76.65% Ujjain 1,986,864 72.34% Jabalpur 2,463,289 81.07% Sagar 2,378,458 76.46% Satna 2,228,935 72.26% Source: News Article, Census 2011 & TechSci Research Bhopal Indore Gwalior Ujjain Jabalpur Sagar Satna
  • 41. 4141MARCH 2017 Wealth of natural assets including agro-based items, forest products & minerals, the state’s policy incentives & its central location have pulled in significant investments in the agro-products, consumer goods, medications & pharmaceuticals, mines & minerals, manufacturing & textiles sectors. The state government is keen to develop a strong mechanical base. The Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) & its subsidiary, Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (MPAKVN) are the key nodal offices for development in the state. Some of the major industrial areas in the state are Bhopal, Sehore, Raisen, Harda, Mandideep, Dewas, Pithampur, Khandwa, Jhabua, Dhar, Ujjain, Mandsaur, Ratlam, Jabalpur, Indore, Shajapur, Satna & Gwalior. Under Industrial Promotion Policy 2010, the government aims to promote agro-based & local natural resource-based industries. Tertiary sector is the largest contributor to the state economy with a share of 43% of GSDP in 2015-16. In January 2017, the government approved Pacific Iron Manufacturing Ltd. for setting up of an integrated steel plant to at an estimated cost of US$ 49.83 million The government approved a coated fabric manufacturing plant to be set up by Mayur Uniquoters Ltd. at Seetapur in Morena, worth US$ 16.21 million of investment, in January 2017. The government in January 2017, approved a furniture fittings & manufacturing unit in Pithampur by Hettich India Pvt. Ltd., with an investment of US$ 59.20 million. For updated information, please visit www.ibef.org KEY INDUSTRIES.. (1/2) MADHYA PRADESH THE LAND OF DIAMONDS Source: Madhya Pradesh State Portal, DIPP 1As of May 2016 Year IEMs filed Proposed investments (in US$ billion) 2010-11 226 33.89 2011-12 191 17.34 2012-13 126 1.75 2013-14 114 14.7 2014-15 99 2.03 2015-16 110 2.26 2016-17 1 28 0.59
  • 42. 42For updated information, please visit www.ibef.org MADHYA PRADESH THE LAND OF DIAMONDS MARCH 2017 KEY INDUSTRIES.. (2/2) In the state budget 2016-17, for the rural industries, Government of Madhya Pradesh allocated an amount of US$ 54.94 million. Further, the work on installation of 25 industrial units over 2,344 hectare land is under process. However, work on 6 industrial units along with Crystal IT park, readymade garment park, etc. over an area of 295 hectares was completed during 2015-16. After the validation of various self employment schemes in the state, the government decided to start the Mukhya Mantri Yuva Udhyami Yojana & Mukhya Mantri Aarthik Kalyan Yojana. Work on construction of IT parks in 4 major regions of the state, including Indore, Gwalior, Bhopal & Jabalpur, is expected to be initiated during 2016-17. Moreover, electronic manufacturing clusters are also being established in Jabalpur & Bhopal. For these new establishments, the Government of Madhya Pradesh allocated an amount of US$ 7.94 million as per the Budget 2016-17. With an investment of US$ 2.97 billion, as of January 2017, Aditya Birla Group is expanding its business in Madhya Pradesh, in sectors like cement, retail & telecom. Key industries in Madhya Pradesh Auto and auto components Mineral based industries Textile Manufacturing Cement Tourism Agro-based industries IT and ITeS Forest based industries Logistics & warehousing Pharmaceuticals Biotechnology Source: Madhya Pradesh State Portal, State Budget 2016-17
  • 43. 4343MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – AUTO AND AUTO COMPONENTS … (1/2) MADHYA PRADESH THE LAND OF DIAMONDS Strategic location of the state, with its proximity to the automotive hub of NCR, provide key advantages for well- connected regions of Madhya Pradesh to emerge as auto clusters. Supported by facilities such as an auto testing track & auto research centre, Pithampur region has emerged as a major auto cluster. The essential infrastructure foundation existing in the automotive cluster includes power, water supply, telecommunication services & roads. The Pithampur automotive cluster is among the industrial clusters in India, which have been identified by the central government for implementation of the Industrial Infrastructure Upgradation Scheme (IIUS). The scheme aims at improving the competitiveness of functional clusters across the country. It has numerous automotive original equipment manufacturers (OEMs), such as Force Motors, Eicher Motors, Hindustan Motors & Mahindra 2-Wheelers, a major tyre producing unit of Bridgestone & about 30 auto component & ancillary units. Some key players • Eicher Motors Ltd • Force Motors Ltd • Hindustan Motors Ltd • Mahindra Two Wheelers Ltd
  • 44. 4444MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – AUTO AND AUTO COMPONENTS … (2/2) MADHYA PRADESH THE LAND OF DIAMONDS Eicher Motors Ltd Force Motors Ltd Hindustan Motors Ltd Mahindra Two Wheelers Ltd • Eicher Motors Limited, incorporated in 1982, is the flagship company of the Eicher Group in India and a leading player in the Indian automobile industry. VE Commercial Vehicles Ltd (VECV), is a 50:50 joint venture between the Volvo Group (Volvo) and Eicher Motors Limited (EML). The company has a state-of-the-art manufacturing facility of buses and trucks at Pithampur with a production capacity of 48,000 vehicles, annually and an auto component facility at Dewas (plant area of approximately 18,000 sq. m.). VECV is setting up a new engine plant in the existing facility at Pithampur. The engine capacity would be ramped up from 60,000 units to 160,000 units by the financial year 2016-17. The company recorded revenues of US$ 2 billion during 2015-16. • Force Motors is a vertically integrated automobile company, which designs, manufactures & markets its range of vehicles – tractors, 3-wheelers, light commercial vehicles, multi-utility vehicles & heavy commercial vehicles. The manufacturing plant at Pithampur was set up in 1987 under license from Daimler-Benz to manufacture utility vehicles. The plant was further expanded in 1997. Subsequently, it also obtained ISO 9001:2000 certification in 2003. The total revenues recorded by the company stood at US$ 467.48 million during 2015-16. • Hindustan Motors Limited (HML), the pioneer in automobile manufacturing in India, is the flagship company of the C. K. Birla Group. The company manufactures passenger cars, multi-utility vehicles & Road-Trusted Vehicles (RTV). In technical collaboration with Australian OKA Motor Company, HML manufactures RTVs in its plant at Pithampur. The company’s total income stood at US$ 0.12 million in 2015-16. • Mahindra 2-Wheelers Limited was founded in 2008 when Mahindra & Mahindra Limited (M&M), India's leading automotive companies took over Pune-based Kinetic Motor Company Limited (KMCL). The company has a state-of-the-art, ISO 9001 certified manufacturing facility at Pithampur in Madhya Pradesh.
  • 45. 4545MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – TEXTILES … (1/3) Source: Madhya Pradesh Business Line , Public- Private Partnerships in India, Madhya Pradesh State Industrial Development Corporation MADHYA PRADESH THE LAND OF DIAMONDS Madhya Pradesh is one of the major cotton producing states of India. In 2014- 15, cotton was grown on an estimated area of 574,000 hectares in the state with a total production of around 1.75 million bales (170 kg each). Cotton textile mills are based in Indore, Dewas, Ujjain, Malanpur, Pithampur, Khargone, Gwalior & Bhopal. An apparel park is located in the Indore SEZ & would spread over 150 to 260 acres of land. The project is implemented by M.P. Audyogik Kendra Vikas Nigam (Indore) Ltd. Indore has been identified as the region for infrastructure development under the Textiles Centre Infrastructure Development Scheme (TCIDS). The city is a cluster of the readymade garments industry with over 1,260 garment units. Extending support to the industry, the state government has announced plans to upgrade existing apparel clusters at Indore & Jabalpur. The state government has established a textile park in Chhindwara. The central government plans to develop a second textile park at Indore, and US$ 6.6 million would be sanctioned for this purpose. Textile Research Association and Export Promotion Council are to be set up in Madhya Pradesh. During FY 2015-16, Government of Madhya Pradesh proposed the following outlays: US$ 103.66 thousand for implementation of Intensive Cotton Development Programme; US$ 2.27 million for supply of electricity to power loom weavers; US$ 38.19 thousand for institutional training to youth weavers; US$ 380.69 thousand for integrated cluster development of handloom / power loom & US$ 297.40 thousand for Handloom Development Scheme. Some key players • Century Textiles and Industries Ltd • Grasim Industries Ltd • Vardhman Textiles Ltd • Raymond Ltd Textile infrastructure in Madhya Pradesh Composite mills 20 Exclusive weaving units 8 Export oriented spinning units 12 Handlooms 47,000 Looms 6,500 Power looms 43,290 Power loom units 17,524 Rotors 14,348 Spindles 1,414,000 Spinning units 40
  • 46. 4646MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – TEXTILES … (2/3) Source: The Cotton Corporation of India Ltd, 1 Projected, As per Cotton Advisory Board, * Projected as per Cotton Advisory Board TechSci Research MADHYA PRADESH THE LAND OF DIAMONDS To attract investments into the sector, the government has provided an interest subsidy for 5 years at a rate of 5% for textile projects and 7% for composite textile projects without capping. Furthermore, the government provided 100% assistance in plant & machinery for 8 years under Industrial Investment Promotion Assistance Scheme. Production of 329.9 million kg of cotton yarn, was recorded in the state between April-June 2015. Under the Comprehensive Handloom Development Scheme (CHDS) & National Handloom Development Programme Scheme (NHDP), the financial assistance released in the last 3 years i.e. 2012-13 to 2014-15 & the current year 2015-16 in the state stood at US$ 0.07 million. During 2015-16, the state recorded 214 MT of total raw silk production. As per the budget 2015-16, to enhance the mulberry silk production in the state, the state government is targeting to provide employment opportunities to 24,940 beneficiaries. In January 2017, the government approved a textile project to Vardhman Textile Ltd., at Mandideep, Sallapur & Budhni for modernization & expansion, with an estimated investment of US$ 215.68 million. An expansion project was granted to Sagar Manufacturing Pvt. Ltd. at Tamot, with investment worth US$ 139.32 million in January 2017. In January 2017, the Defence Ministry announced its plans to set up a unit of national importance at Morena, with investment worth US$ 223.11 million. Cotton production (in lakh bales) in Madhya Pradesh Cotton productivity (in kgs/hectare) in Madhya Pradesh 20.0 18.0 15.3 17.7 20.0 22.0 17.3 17.5 18.0 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 ¹ FY 16* 540 490 424 463 481.6 615.1 572.2 518.3 559 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 ¹ FY 16*
  • 47. 4747MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – TEXTILES … (3/3) MADHYA PRADESH THE LAND OF DIAMONDS Century Textiles and Industries Ltd Grasim Industries Ltd Vardhman Textiles Ltd Raymond Ltd • Century Textiles and Industries Ltd was incorporated in 1897. The company has interests in textile, rayon, cement and paper. Yarn and denim production units of the textile business are located at Satrati in Madhya Pradesh. The plant is equipped with 24,960 spindles for manufacturing of yarn and produced about 4,244.2 tonnes of yarn during 2010–11. The denim division has a production capacity of 21 million metres of denim fabrics per annum. • The company recorded revenues of US$ 1.23 billion in 2015-16. • Grasim Industries Ltd, a flagship company of the Aditya Birla Group, is one of the leading companies in India with diverse interests in cement, chemicals and textiles. Its textile plants are located at Bhiwani, Haryana and Malanpur, Madhya Pradesh. The Malanpur unit of the company manufactures worsted dyed yarn spun from pure merino wool along with polyester and other blends. The company has a wide retail network and also serves international apparel manufacturers. The total income earned by the company during 2015-16 stood at US$ 5.60 billion. • The Vardhman Group is a leading textile conglomerate in India having a turnover of US$ 1.1 Billion. The yarn manufacturing units are located in Mandideep (130,994 spindles), Satlapur (222,624 spindles) and Bhudhni (60,000 spindles). In September 2013, the company added 36,288 spindles to its Satlapur plant. Furthermore, the Bhudhni plant has a fabric weaving unit (400 looms) and a fabric processing unit with a capacity of 40 million metres per annum. The company posted total revenues of US$ 888.25 million in 2015-16. • Raymond is a major fabric manufacturer in India. Besides, the company also has business interests in engineering and aviation. The company is one of the largest integrated manufacturers of worsted fabric in the world and commands over 60.0% market share in worsted suiting in India. The total production capacity of the company is around 38 million metres of wool and wool-blended products. One of the four plants of the company is located at Chhindwara in Madhya Pradesh. The revenue earned by the company stood at US$ 858.64 million during 2015-16.
  • 48. 4848MARCH 2017 The state is the 3rd largest producer of cement in the country & provides up to 13% of national demand. Being rich in limestone & coal reserves, the state represents significant opportunities for the growth of the cement industry. Satna, Jawad and Neemuch of Madhya Pradesh feature among the seven major limestone clusters in India. These clusters provide easy access to raw material resources for the cement industry. Most limestone deposits are concentrated in the districts of Damoh, Dhar, Neemuch, Sheopur, Rewa, Satna & Sidhi. Total cement grade limestone resources of the state are estimated at 4,326.3 million tonnes. As of 2015, Madhya Pradesh has 13 cement plants, namely Birla Vikas & Satna Cement Works (1), Cement Corporation of India Ltd. (2), Century Cement (1), Heidelberg Cement India Ltd (1), Jaypee Cement (4), K.J.S. Cement (1), Kymore Cement Works (1), Prism Cement Ltd (1) & Ultratech- Vikram Cement Works (1). UltraTech Cement Ltd. has recently bought 2 cement plants & related power assets of Jaiprakash Associates Ltd. in Madhya Pradesh, for US$ 792.3 million. For updated information, please visit www.ibef.org KEY INDUSTRIES – CEMENT … (1/2) MADHYA PRADESH THE LAND OF DIAMONDS Some of the key players • Birla Corporation Ltd • ACC Limited • Jaiprakash Associates Ltd. • Heidelberg Cement India Ltd • Cement Corporation of India Ltd. Source: Cement Information System (CIS)- Department of Industrial Policy & Promotion, Government of India; Cement Manufacturers’ Association, TechSci Research
  • 49. 4949MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – CEMENT … (2/2) MADHYA PRADESH THE LAND OF DIAMONDS Birla Corp Ltd ACC Ltd Everest Industries Ltd Heidelberg Cement India Ltd • Birla Corporation Limited is the flagship company of the M P Birla Group with business interests in cement, jute goods, polyvinyl chloride floor covering, auto trim parts and iron & steel casting. The cement plant of the company is located in Satna, Madhya Pradesh. The plant has a capacity of 2.2 million tonnes per annum. In October 2013, the company announced plans to set up 3 grinding cum blending units in Madhya Pradesh. The company recently bought 2 cement plants & related power assets of Jaiprakash Associates. The total income recorded by the company during 2015-16 was US$ 500.30 million. • ACC Limited is one of the largest cement manufacturers in India with 17 cement plants, more than 40 ready-mix concrete plants, 21 sales offices and over 9,000 dealers. In Madhya Pradesh, it has plants in Kymore with a capacity of 2.7 million tonnes per annum (MTPA). The company’s total income during 2015 was recorded to be US$ 1.78 billion and for the first quarter of 2016, the company recorded total revenues of US$ 444.9 million. • Everest Industries Limited manufactures a range of building solutions, which include ceilings, walls, flooring, cladding, doors, roofing and pre-engineered steel buildings. One of the five manufacturing facilities of the company is located at Kymore in Madhya Pradesh. It is among the first manufacturers of fibre-cement roofing sheets and accessories in India. The plant has been awarded by the state government for excellence in the fields of safety, health and environment. • Heidelberg Cement India Ltd is a subsidiary of Cementrum I.B.V. (a company incorporated under the laws of The Netherlands, which is 100% controlled by HeidelbergCement AG, which is one of the largest cement manufacturers in the world). The company has two cement plants at Damoh in Madhya Pradesh. Its cement is sold under brand name ‘Mycem’. The company recorded a total income of US$ 252.87 million during 2015-16 and US$ 70.27 million during the first quarter of 2016-17.
  • 50. 5050MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – PHARMACEUTICAL AND BIOTECHNOLOGY INDUSTRY ... (1/2) MADHYA PRADESH THE LAND OF DIAMONDS Madhya Pradesh has a rich bio-diversity. About 25.2% of the state is under forest cover; 11 of the 25 agro-climatic zones are present in the state and a large variety of rare and valuable medicinal and herbal plants are available. A nodal agency has been constituted to oversee the developments of the sector. Incentives in the form of capital subsidies and training assistance have been arranged to encourage investment. Biotechnology & pharmaceuticals have been recognised as thrust sectors. The state has formulated a Biotechnology Policy, which has created a conducive environment for the bio-pharmaceutical industry in the state. Bio Technology Park (Indore) and Bio Fuel Park (Rewa) are major infrastructure facilities operational in the state. Agricultural research on hybrid varieties and clinical trials are among the key activities being undertaken by the state. Some of the key players • Ipca Industries • Lupin Ltd • Piramal Healthcare Ltd • Sun Pharmaceutical Industries Ltd • Teva Source: MP Trade & Investment Facilitation Corp Ltd, TechSci Research In 2016-17, the government plans to sanction 2,000 new health centres in the state. The government has also proposed to spend US$ 310 million under the Rashtriya Swasthya Mission. An amount of US$ 150 million is proposed to be spent on construction of smart medical city near Sanchi.
  • 51. 5151MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – PHARMACEUTICAL AND BIOTECHNOLOGY INDUSTRY ... (2/2) MADHYA PRADESH THE LAND OF DIAMONDS Ipca Laboratories Ltd Lupin Ltd Piramal Healthcare Ltd Sun Pharmaceutical Industries Ltd • Ipca is a fully integrated Indian pharmaceutical company with a strong thrust on exports. The company has operations in over 110 countries and exports account for around 60.0% of the sales. The company has 6 Active Pharmaceutical Ingredient (API) manufacturing plants & 7 formulation plants in India. In Madhya Pradesh, it has plants at Indore, Pithampur & Ratlam. The plants manufacture drug intermediaries, oral solids, liquids & injectables, etc. & are certified by apex global agencies. During 2015-16, total income of the company reached US$ 433.69 million. • Lupin Ltd is an innovation-led pharmaceutical company producing a wide range of generic & branded formulations and Active Pharmaceutical Ingredients (APIs). The company has 2 plants in Madhya Pradesh – 1 at Indore for formulations & another at Mandideep for API. The plant at Mandideep is approved by global authorities such as World Health Organisation (WHO), United States Food and Drug Administration (USFDA) & United Kingdom Medicine & Healthcare products Regulatory Agency (UKMHRA). The total revenue recorded by the company during 2015-16 stood at US$ 2.10 billion • Piramal Healthcare Ltd (PHL) is a globally integrated healthcare company and recorded total income of US$ 1.1 billion during 2015-16. The company caters to a large range of therapeutic products under a number of divisions such as acute care, biotech, cardiac, diabetes, general medicine, orthopaedic, pain management, etc. The company has 6 manufacturing facilities in India, one of which is located at Pithampur in Madhya Pradesh. • Sun Pharmaceutical Industries Ltd, one of India's largest pharmaceutical companies, is an integrated, research-based pharmaceutical company with a global presence. In 2015-16, the company recorded total income of around US$ 4.31 billion. The company announced the acquisition of Ranbaxy Laboratories Limited in April 2014, and completed the acquisition deal in March 2015. The company manufactures a wide range of generic medicines in its 45 manufacturing sites across the globe. Sun Pharma Industries Ltd. has two manufacturing facilities in Madhya Pradesh at Dewas & Malanpur.
  • 52. 5252MARCH 2017 Madhya Pradesh State Industrial Development Corporation & its subsidiaries have developed numerous growth centres across the state. The Industrial Policy of the state provides numerous incentives for setting up manufacturing units. The manufacturing sector in Madhya Pradesh is witnessing strong growth on account of improving industrial infrastructure, policy incentives, labour resources & central location of the state. Districts such as Indore, Bhopal, Jabalpur, Ujjain, Gwalior, Dhar, Satna, Dewas, Sagar & Khandwa are notable manufacturing hubs in Madhya Pradesh. Between 2005-06 and 2014-15, income originating from the manufacturing sub-sector grew at a CAGR of 0.9%. For industrial modernisation, the state has undertaken measures such as introduction of Progressive Industrial Policy, infrastructure improvements & frequent investor meets. To facilitate the industry with modern infrastructure, the state has initiated expansion of existing IT parks, stone parks, apparel parks & SEZs. For updated information, please visit www.ibef.org KEY INDUSTRIES – MANUFACTURING … (1/2) MADHYA PRADESH THE LAND OF DIAMONDS Some of the key players • Bharat Heavy Electricals Ltd • Kirloskar Brothers Ltd • Kores (India) Ltd • Crompton Greaves • Birla Corporation NSDP originating from manufacturing sub- sector at constant prices (US$ billion) 10.25 10.92 13.25 11.64 11.71 12.95 13.44 11.68 10.48 10.79 1.38 2.04 2.29 2.60 2.79 2.47 2.46 2.12 1.85 1.82 Unregistered Registered Source: TechSci Estimates based on “Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh,
  • 53. 5353MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – MANUFACTURING … (2/2) MADHYA PRADESH THE LAND OF DIAMONDS Bharat Heavy Electricals Ltd Kirloskar Brothers Ltd Kores (I) Ltd Crompton Greaves • Bharat Heavy Electricals Ltd (BHEL) is a large engineering & manufacturing enterprise in India in the energy- related & infrastructure sector. During the 3rd quarter of 2015-16, the state recorded total revenues of US$ 813.57 million. The Bhopal unit of BHEL was set up in Piplani in 1956 with technical assistance from Associated Electricals (India) Limited, a UK-based company. The unit has the capability to manufacture hydro, steam, marine, nuclear turbines, heat exchangers, hydro, turbo generators, transformers, switchgears, control gears, transportation equipment, capacitors, bushings, electrical motors, rectifiers, oil drilling rig equipments & diesel generating sets. • Kirloskar Brothers Ltd (KBL) is the flagship company of the US$ 2.1 billion Kirloskar Group. KBL has business interests in large infrastructure projects such as water supply, power generation & irrigation, manufacturing of pumps for domestic, agricultural & industrial use. The total income of the company stood at US$ 416.72 million in 2015-16 & US$ 262.62 million during 1st quarter of 2016-17. The company has 6 manufacturing plants, one of which at Dewas in Madhya Pradesh was established in 1962. The plant manufactures pumps for domestic & agricultural use. • Kores (India) Ltd was incorporated in 1936 & has business interest in diverse fields such as office products, foundry, textiles, pharmaceuticals, engineering, etc. The engineering division of the company has a plant at Pithampur in Madhya Pradesh. The plant is set up on an area of 71,192 sq m & has facilities such as machining, fabrication, assembly & testing. The company produces hydrostatic rigs, pumps, drills & related accessories in the plant at Pithampur. • Crompton Greaves is a part of the US$ 4 billion Avantha Group. The company is engaged in designing, manufacturing & marketing of technologically advanced electrical products & services. The company manufactures transformers at its plants in Mandideep & Malanpur & industrial systems (rotating machines & railway signalling unit) in Pithampur. The company recorded total income of US$ 805.4 million in 2015-16.
  • 54. 5454MARCH 2017 Factors such as industrial infrastructure in growth centres, cheap labour & central location are the key influencers for establishing consumer goods manufacturing facilities in the state. Many multinational companies, such as Mondelez, Procter & Gamble, Hindustan Unilever Limited, Coca Cola & Cargill, have their manufacturing plants in the state. A majority of the manufacturing plants are located in industrial areas of the state such as Malanpur, Mandideep, Pithampur & Chhindwara. Procter & Gamble’s strategic move of relocating its central warehouse for FMCG products to Bhopal has helped it save annual logistics expenses of around US$ 20 million. Many FMCG companies are now relocating their warehouses to replicate this success. To promote growth in the FMCG sector, the state government has established Gwalior as an FMCG cluster. For updated information, please visit www.ibef.org KEY INDUSTRIES – FAST MOVING CONSUMER GOODS … (1/2) MADHYA PRADESH THE LAND OF DIAMONDS Some key players • Mondelez India Foods Ltd • Procter & Gamble (P&G) Home Products Ltd • Dabur India Ltd • Hindustan Unilever Ltd Patanjali Ayurveda Ltd. plans to set up a food processing unit in the state, with an investment of US$76 million. The bottling division of Coca Cola in India, Hindustan Coca-Cola Beverages Ltd. (HCCBL), is planning to invest US$ 111.56 million to set up a bottling plant at in Hoshangabad, Madhya Pradesh. The 110 acre plant, would facilitate multiple bottling lines for its carbonated beverages such as Coca-Cola, Sprite, Fanta, Thums Up and Limca.
  • 55. 5555MARCH 2017 Mondelez India Foods Procter & Gamble (P&G) Home Products Ltd Dabur India Ltd Hindustan Unilever Ltd For updated information, please visit www.ibef.org • Mondelez India Foods Ltd is part of Mondelēz International, Inc. It operates in 5 categories – chocolate confectionery, beverages, biscuits, gum & candy. Mondelez's key brands in India include Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang & Oreo. In India, the company started its operations in 1948 and has 6 factories & 4 sales offices. • P&G Home Products Ltd, one of India's largest consumer goods companies, is a 100% subsidiary of Procter & Gamble Company, US. The company owns some of the reputed brands in the fabric, hair & baby care segments. The company has its manufacturing plant at Mandideep in the Raisen district of Madhya Pradesh. • Dabur India Ltd is a leading consumer goods company in India with revenues of US$ 0.4 billion in H1, FY15. The company has 2 major divisions: consumer care business & international business division. One of the 17 manufacturing plants of the company is located at Katni in Madhya Pradesh. The total income recorded by Dabur India Ltd during 2015-16 was US$ 1.3 billion. • Hindustan Unilever Ltd (HUL) is a subsidiary of Uniliver and is India's largest consumer goods company with a portfolio of brands in 20 distinct categories. Established in 1930, the company has its manufacturing plant at Chhindwara in Madhya Pradesh. HUL recorded total income of US$ 4.21 billion during 2015-16. KEY INDUSTRIES – FAST MOVING CONSUMER GOODS … (2/2) MADHYA PRADESH THE LAND OF DIAMONDS
  • 56. 5656MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – AGRO-BASED INDUSTRY … (1/2) MADHYA PRADESH THE LAND OF DIAMONDS Madhya Pradesh is an agrarian state. Around 74% of the population of the state is directly or indirectly, dependent on agriculture. Of the total gross area under crop cultivation in the state, 54.2% is sown during the kharif season while the other 45.7% is sown during the rabi season. Budget estimate for the horticulture and food processing sectors in the state stood at US$ 113.5 million. Budget estimate for farmer welfare as well as development of agriculture, during 2016-17, in the state was recorded to be US$ 450.62 million. Madhya Pradesh is the largest producer of oilseeds; it produced 7.22 million tonnes in 2015-16. accounting for around 36.32% of the national production. Madhya Pradesh is one of the leading producers of spices such as ginger, chilli and garlic. Jawaharlal Nehru Krishi Vishwavidyalaya is located in Jabalpur and serves as a centre for teaching and research in agriculture and allied sciences. The state was the third largest milk producer in India in 2015-16. Milk production in the state increased from 10.8 million tonnes in 2014-15 to 12.12 million tonnes in 2015-16. Egg production in the state reached 1,441.36 million units in 2015-16, while, meat production in the state increased from 58.89 thousand tonnes in 2014-15 to 73 thousand tonnes in 2015-16. Dhar, Ujjain, Chhindwara, Jabalpur, Hoshangabad, Guna, Ashok Nagar, Dewas, Indore, Shajapur, Vidisha, Sagar, Ratlam, Sehore, Mandsaur and Khargone are the major districts involved in agriculture and allied industries. The state received the “Krishi Karman” award for the third consecutive year. Horticulture is an emerging sector in the state. Through the export of aromatic and medicinal plants, the horticulture segment is a potential foreign exchange earner. In 2015-16, the state recorded utilisation of 22,501.8 thousand hectares of land for production of horticulture crops. The state has invested resources into the making of water assets, new plantations, flower gardens and organic farming. Plans are being laid out to set up suitable post-harvest facilities like packing houses, cold storage and mobile processing units. Source: Ministry of Agriculture, Farmer Welfare & Agriculture Development Department Madhya Pradesh Solvent Extractors’ Association of India, TechSci Research
  • 57. 5757MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – AGRO-BASED INDUSTRY … (2/2) MADHYA PRADESH THE LAND OF DIAMONDS Adani Wilmar Ltd Anik Industries Ltd K S Oils Ltd Ruchi Soya Industries Ltd • Adani Wilmar Ltd (AWL) is a 50:50 joint venture between two global corporations - Adani Group of India and Wilmar International Limited of Singapore. The company has production infrastructure across the country, with a crushing capacity of over 5,750 tonnes per day and a refining capacity of over 9,000 tonnes per day. The company has a production unit in Chhindwara and a packaging plant at Dewas in Madhya Pradesh. FORTUNE, King's, RAAG, Bullet, Fryola and JUBILEE are the brands under which AWL sells its range of edible oils, vanaspati and bakery shortening. • Anik Industries Limited has business interests in dairy and milk derivative products, wind power, mining & coal, ferro alloys, real estate and agri commodities. The company has three milk processing units in Madhya Pradesh for manufacturing of dairy products, two at Dewas (capacity of 240,000 litres of milk per day and 400,000 litres of milk per day) and one at Bhopal (capacity of 100,000 litres of milk per day). These units are supported by 11 chilling centres spread across the state, which collect milk from 5,000 villages. The company recorded total income of US$ 234.78 million during 2015-16. • K S Oils is a leading Indian integrated edible oil company, which produces and markets mustard oil, refined oil and vanaspati. The company has its fully integrated plant at Morena in Madhya Pradesh with a crushing capacity of 1,475 metric tonnes of mustard seeds per day. The plant also has an in-house packaging unit. The company’s total income during Q3 of 2015-16 was US$ 0.55 million. • Ruchi Soya Industries Ltd is one of the major agro-based product manufacturers in India. The product portfolio of the company includes edible oils, soya foods, bakery fat and vanaspati. It is also the largest exporter of soya foods and lecithin from India. The company has a wide presence in Madhya Pradesh with six manufacturing plants located at Mangla, Shujalpur, Guna, Piaparia, Gaderwada and Jabalpur and three depots at Gwalior, Jabalpur and Indore. The company recorded revenues of US$ 4.24 billion in 2015-16.
  • 58. 5858MARCH 2017 Madhya Pradesh is blessed with scenic beauty, rich heritage of pilgrim centres, temples & wildlife sanctuaries. The state government has identified the tourism sector as a key growth area. In 2015, foreign tourist arrivals in the state were recorded to be 421.36 thousand. The state government has shortlisted 18 noteworthy centres, which draw in large numbers of domestic and foreign tourists for further development. The state government has taken initiatives to promote eco-, wildlife, adventure, leisure, business & pilgrim tourism. The Ministry of Tourism has included Chitrakoot as one of the 35 mega tourist centres sanctioned to be developed. Chitrakoot will be developed as a spiritual & wellness destination. The destination will be developed as a part of the Ramayana Circuit. The government has allocated a sum of US$ 10.69 million for development of this circuit. As per budget 2016-17, the state government proposed an allocation of US$ 38.81 million for the development of the state’s tourism department. In February 2017, the state tourism advertisement ‘MP Mein Dil Hua Bachche bagged the prestigious AFI (American Film Institute) award for the best ongoing campaign, which was launched in June 2016. For updated information, please visit www.ibef.org KEY INDUSTRIES – TOURISM … (1/2) Source: Tourism Statistics 2014-15 MADHYA PRADESH THE LAND OF DIAMONDS International tourist arrivals (in millions) 0.23 0.25 0.2 0.25 0.27 0.28 0.28 0.32 0.42 2007 2008 2009 2010 2011 2012 2013 2014 2015 The Central Sanctioning and Monitoring Committee (CSMC) for the Swadesh Darshan Scheme in Ministry of Tourism has approved a sum of US$ 15.28 million for the development of Heritage Circuit in state of Madhya Pradesh. The circuit will cover cities of Gwalior- Orchha-Khajuraho-Chanderi- Bhimbetka-Mandu. The project would facilitate world class infrastructural development of the sites, including developing a theme park & convention centre in Khajuraho. Site illumination, construction of tourist facilitation centres & parking area are other interventions proposed in the circuit.
  • 59. 5959MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – TOURISM … (2/2) Source: Annual Plan of Madhya Pradesh, 2012-13 MADHYA PRADESH THE LAND OF DIAMONDS The state has 382 tourist sites, including world heritage sites. Major places of tourist interest in Madhya Pradesh are as follows: Kanha: One of the largest wild-life sanctuaries in Asia. Khajuraho: Some of the most famous sculptures in the world. Bhimbetka: The oldest cave paintings in the world. Sanchi: The oldest Buddhist Stupa in the world. Bandhavgarh: The highest density of tiger population in the country. Bhedaghat: Scenic marble rocks rising up to 100 feet. The state has 9 national parks & 25 wildlife sanctuaries. Numerous festivals, such as All India Kalidasa Festival, Tansen Samaroh (Gwalior), Lokranjan & Khajuraho Dance Festival (Khajuraho), are celebrated in the state, which attract tourists. Measures to promote tourism in Madhya Pradesh • Promote and market as an attractive tourist destination. • Provide basic infrastructure at lesser known tourist locations. • Develop eco-friendly and sustainable tourism facilities. • Develop and promote eco- and adventure tourism. • Invite PPP to convert old palaces into heritage hotels. In January 2017, the Government of Madhya Pradesh developed Hanuwantiya Island, with an investment of US$ 1.19 million, to promote water tourism in the state. The island is located in the reservoir of Indira Sagar Dam, situated on Narmada river.
  • 60. 6060MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – FOREST-BASED INDUSTRIES MADHYA PRADESH THE LAND OF DIAMONDS With a share of about 12.44% of the total forest area of the country, Madhya Pradesh has the largest area covered by forests among all the states in India. In Madhya Pradesh, the average annual production of tendu leaves is estimated around 2.5 million standard bags, accounting for nearly 25.0% of all tendu leaves produced in India. Tendu leaves, sal seed and kullu gum are nationalised forest produce. Other non-wood forest products are non-nationalised and can be collected and traded freely. Other important forest products popularly traded include Chebulic Myrobalan, Mahua, Sal seeds, Kullu gum and bamboo. Estimated budget for the forest department during 2016-17 stood at US$ 386.02 million. Sale of forest products contributes significantly to the state revenues. Forest products are either sold through auction in commercial depots, or through sale on pre-defined rates at Nistar depots. As of 2015, there were 40 commercial timber depots and 22 industrial bamboo depots in the state. Source: Forest Department, Madhya Pradesh, www.mpforest.org Trading & Development Co-Op Federation Ltd.
  • 61. 6161MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – IT AND ITeS MADHYA PRADESH THE LAND OF DIAMONDS Madhya Pradesh has an optical fibre spine of more than 24,000 km that covers 313 formative blocks over 45 districts. The state is home to the country’s 1st Indian Institute of Information Technology & Management (IIITM), which is located in Gwalior. The government has proposed to set up 21 IT SEZs across the state. 5 information technology parks, located at Bhopal, Indore (2), Gwalior & Jabalpur, are at various stages of development. Around 20 companies have signed MoUs worth US$ 1.4 billion for investments in the IT sector within the state. Various information technology infrastructures such as the wide area networks, data centres, etc. are being used for exchanging the information by different departments of the state government. A government society MAP_IT (Madhya Pradesh Agency for Promotion of Information Technology), headed by the Chief Minister & represented by the government & industry, has been established to implement the IT policy & propel the growth of the IT industry in Madhya Pradesh. The state government proposed allocation of US$36.16 million for different activities under science & technology during 2015- 16. Contract for setting up a special IT processing centre was granted to Fujitsu Optel Ltd., at Mandideep in Raisen, at an estimated cost of US$ 8.48 million. IT parks Crystal IT Park (51,097 sq. m) Indore Hardware and Software Technology Park (200 acres) Bhopal Software Technology Park (100,000 sq ft) Indore IT Park (50 acres) Gwalior IT Park (90 acres) Jabalpur IT projects in Madhya Pradesh Hardware & Software Technology Park, Bhopal Crystal IT Park, Indore Software Technology Park, Indore IT Park, Gwalior Jabalpur IT Park, Jabalpur Source: Maps of India
  • 62. 6262MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – MINERAL-BASED INDUSTRY … (1/3) MADHYA PRADESH THE LAND OF DIAMONDS Madhya Pradesh is one of the key mineral-producing states in India, providing tremendous potential for industrial growth. With 26 major and minor minerals being mined in the state, it ranks fourth in mineral production. The state has rich deposits of coal, limestone and manganese. Bauxite, dolomite, fire clay, granite and marble stones are other mineral resources available. During 2015-16 (till February 2016), value of all minerals produced in Madhya Pradesh was recorded to be US$ 2.4 billion. Madhya Pradesh, with its 1,045,318 carats of proven diamond reserves, is the sole producer of diamonds in India. Madhya Pradesh is the leading producer of minerals such as pyrophyllite and copper. During 2015-16 (till February 2016), value of fuel mineral produced in Madhya Pradesh was recorded to be US$ 2.17 billion. Major mineral-based industries in the state are cement, thermal power generation, ceramic-products, tiles and refractory. The Mineral Resources Department of Madhya Pradesh has planned to introduce online electronic transit pass (e-TP) services in Balaghat, Sagar, Tikamgarh, Satna, Rajgarh, Betul, Indore, Ujjain, Neemuch, Gwalior, Bhind and Hoshangabad in December 2016. Source: Indian Bureau of Mines
  • 63. 6363MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – MINERAL-BASED INDUSTRY … (2/3) Source: Ministry of Mines, Government of India, TechSci Research MADHYA PRADESH THE LAND OF DIAMONDS Mineral production in Madhya Pradesh (‘000 MT) Mineral 2015-16 (till February 2016) Coal 96,436 Bauxite 505.8 Copper ore 2,300 Copper conc. 62.11 Iron ore 2,291 Manganese ore 638.2 Phosphorite 62.68 Diamond (in carat) 32.06 Limestone 34,576 Mineral production of Madhya Pradesh as a share of India’s reserves in per cent in 2015-16 (till February 2016)) 1.66% 1.93% 4.54% 12.61% 16.93% 33.92% 48.82% 64.96% 100% Iron Ore Bauxite Phosphorite Limestone Coal Manganese ore Copper Conc Copper Ore Diamond
  • 64. 6464MARCH 2017 For updated information, please visit www.ibef.org KEY INDUSTRIES – MINERAL-BASED INDUSTRY … (3/3) MADHYA PRADESH THE LAND OF DIAMONDS Hindustan Copper Ltd NMDC Ltd • Hindustan Copper Ltd (HCL) is a vertically integrated copper manufacturing company. In 1982, the company established its Malanjkhand copper project, which has the single-largest copper deposit in the country. The Malanjkhand mine has a copper deposit of 221 million tonnes with 1.3% copper concentration. The company possesses an open-pit mine with a capacity of 2 million tonnes per annum, concentrator plant, tailing disposal system and other auxiliary facilities. The plant contributes around 80.0% of the copper production of the company. HCL’s mines and plants are spread across Rajasthan, Jharkhand, Madhya Pradesh and Maharashtra. HCL plans to expand its flagship Malanjkhand mine with an investment of US$ 308.1 million. During 2015-16, the company recorded revenues of US$ 147.99 million. • NMDC is a public sector unit involved in mining of a wide range of minerals such as iron, copper, limestone, dolomite, gypsum, tin, graphite and diamond. The company is the single largest iron ore producer in the country. NMDC is the only organised producer of diamonds in India and produces diamond from its Majhgawan mine at Panna in Madhya Pradesh. The production capacity of the mine is around 84,000 carat per annum. The mine employs around 199 persons. Income of US$ 986.2 million was recorded by the company during 2015-16.
  • 65. 6565MARCH 2017 TRIFAC, established in 2004, is the state’s single window clearance facility. As a nodal agency, it extends customised incentives to mega projects (investment over US$ 4.6 million). TRIFAC is a coordinating interface between entrepreneurs and government agencies and provides effective pre-investment and post-investment services. For updated information, please visit www.ibef.org TRADE AND INVESTMENT FACILITATION CORPORATION LIMITED … (1/2) MADHYA PRADESH THE LAND OF DIAMONDS Source: MP Trade and Investment Facilitation Corporation Ltd TRIFAC - Trade and Investment Facilitation Corporation Limited
  • 66. 6666MARCH 2017 TRIFAC activities Description APEX Level Investment Promotion Empowered Committee • For project investments over US$ 4.6 million, TRIFAC facilitates obtaining of customised economic package through APEX Level Committee headed by Chief Minister. Project Clearance and Implementation Board • Acts as an empowered body to grant in-principle approval to mega projects. Madhya Pradesh Investment Facilitation Act 2008 • Acts as member secretary for APEX and State Level Committee, which ensures speedy approvals for various clearances/consents/permissions. Combined application form • Under the MP Investment Facilitation Act 2008, a single form for obtaining all necessary clearances. Investment drive • TRIFAC organises investor meets, conducts road shows and industry interactive sessions to stimulate investments in the state. Memorandum of Understanding • TRIFAC acts as a nodal agency for executing the MoU process for investment plans related to the industry sector. Delhi-Mumbai Industrial Corridor • TRIFAC acts as a nodal agency for executing the project in the state. Industrial Investment Promotion Assistance 2004 • TRIFAC acts as a nodal agency for providing industrial investment assistance in the state. Audyogik Kendra Vikas Nigam Limited (AKVN) • AKVN is the subsidiary company of MP TRIFAC. Land Bank • Responsible for maintaining a land database meant for setting up industries in the state. For updated information, please visit www.ibef.org TRADE AND INVESTMENT FACILITATION CORPORATION LIMITED … (2/2) MADHYA PRADESH THE LAND OF DIAMONDS Source: MP Trade and Investment Facilitation Corporation Ltd TRIFAC - Trade and Investment Facilitation Corporation Limited
  • 67. 6767MARCH 2017 For updated information, please visit www.ibef.org KEY APPROVALS REQUIRED … (1/2) MADHYA PRADESH THE LAND OF DIAMONDS List of approvals and clearances required Departments to be consulted Prior to setting up the unit Registration DIC for SSI/ SIA for large and medium industries Allotment of land/shed DI/ SIDC/ Infrastructure Corporation/ SSIDC Permission for land use District authorities/ State DI/ Dept. of Town and Country Planning (in case industry is located outside an industrial area) No objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board Approval for construction activity and building plan Town and Country Planning/ Municipal and local authorities/ Chief Inspector of Factories/ Pollution Control Board, Electricity Board No objection certificate Fire Department Provisional Trade Tax registrations Central and State Excise Departments, Sales Tax Department Source: MP Trade & Investment Facilitation Corp. Ltd., TechSci Research Note: SIDC- State Industrial Development Corporation, SSI- Small Scale Industries, SIA- Secretariat of Industrial Assistance, DIC- District Industrial Center, SSIDC- Small Scale Industrial Development Corporation
  • 68. 6868MARCH 2017 For updated information, please visit www.ibef.org KEY APPROVALS REQUIRED … (2/2) MADHYA PRADESH THE LAND OF DIAMONDS List of approvals and clearances required Departments to be consulted Before commencement of production No objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board No objection certificate Fire Department Permanent trade tax registration under Central Sales Tax Act 1956 Central and State Excise Departments, Sales Tax Department Registration under Central Sales Tax Act 1956 After commencement of production/activity Registration Department of Commerce, Industry & Employment