Madhya Pradesh Budget Recommendations by IIM Indore Students


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Summary of the Recommendations made by students of IIM Indore to the government of Madhya Pradesh for the upcoming budget session (2012)

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Madhya Pradesh Budget Recommendations by IIM Indore Students

  1. 1. IITIT IN
  2. 2. Water and IrrigationIndustriesIT Industry IITIT INNew Industrial ZonesE-GovernanceEducationTourism
  3. 3. Water and Irrigation IITIT IN
  4. 4. Budget and Irrigation - Recommendations • Increase of weather monitoring infrastructure like Doppler radars • Increase the area under micro irrigation scheme (sprinkler & drip irrigation) from 3% to 6% (Gujarat 11% Rajasthan 6%, Maharashtra 26%) • Join hands with National innovation foundation (NIF), situated in Gujarat to gain from innovative technologies in cultivation and irrigation • semi circular check dam – (4 days, Rs 10000 ) • Hand operated Water lifting device • Rain water harvesting and development of small ponds/ lakes for conserving rain water • Increase the current small hydro-power (SHP) output – potential is 410 MW but generation is 41 MW • Speed up projects like Rajghat Project, Rangawan Canal Project and Sukta projects
  5. 5. Budget and Irrigation• The efficiency of water supply utilities is poor in level 2 cities like Gwalior, Ratlam, Rewa, Bhind. However, that of small towns like Guna (99.27%) and Vidisha (99.63%) are the best in the state. These cities should adopt the operations or methods from Guna and other cities like Bhopal, Indore and improve on this front.• State wide drinking water grid to transfer water efficiently particularly during droughts• Government of M.P. earned around 0.56% from sale of water in 2008-09 which increased in 2009-10 by around 114%. This should be further exploited to earn a greater revenue.• Implementation of integrated software based water planning and evaluation system (like WEAP in Gujarat)• Increase the overall outlay for irrigation and water supply from 7% to 12% for a better growth of agriculture (currently targeted 5%)
  7. 7. Recommendations for Industries• SEZs Development: Land on lease, tax holidays, relax excise duty for 5-10 years• Automotive: Leveraging on auto components leadership to attract OEMs to set up their facilities;• Single window clearance system• Leverage on high tele-density (85%): – Mobile banking facilities for financial inclusion in rural areas – Agricultural information dissemination to farmers• Attract Investors: – Develop Investors Support System to strengthen information dissemination mechanism – Investors summit similar to ‘Vibrant Gujarat’
  8. 8. MP’s outlook towards SEZ Proposal to upgrade Indore airport as an international airport State to contribute equity in form of land Single agency clearance under a Development Commissioner for notified SEZ Freedom regarding generation, transmission and distribution of power within the SEZ along with connectivity to state grid SEZ to be declared as Industrial Township SEZ project to be implemented with private sector partnership
  9. 9. Action Plan for adopting the policy of NIMZ Supply of Labor – Seating capacity of existing 288 ITIs should be increased from 155 (average) to 300 – Third party/NGOs should be roped in for certification and grading of Skilled Labour – Existing institutes can register themselves as VTPs under Ministry of labor’s Skill Development Initiative (One time fund of 3 lakhs from center) – Expected cost of doing this – Rs 372 Crore Empowerment of MPSIDC: This will require MP Govt. to identify the zones and allocate the budget for land acquisition in advance. Expected Cost – (Will be based on the amount of land to be acquired approx – 40 to 50 thousand acres)• Twin policy for land acquisition : Participative policy for land owners who get market price for land acquired from them. They also get 10% of price secured from industries allocated to the land and 1% holding of developed plots.• Developing estates on PPP model - Sector Specific Industrial Parks can be set up by SMEs who will get 50% of costs reimbursed.
  10. 10. Action Plan for adopting the policy of NIMZ Hardware technology parks for manufacturing units in computers, telecommunication equipment, entertainment, electronics, auto, and related ancillaries would be established at Pithampur, Mandideep, Malanpur and other industrial growth centers Strengthening Investor Facilitation: – Set up State Investor Promotion and Infrastructure development Cell (IP-ID) – Set up an online portal to disseminate info about investment climate and facilities in MP and match making services – Symposiums in Indore, Mumbai, Delhi etc. for investment promotion – Collaborate with CII, FICCI, ASSOCHAM etc. to showcase state’s strengths – Special promotion to FDI and special packages for big industries and SSI / SME clusters – Development and maintenance of state highway under IP & ID - 230 crores
  12. 12. Recommendations for IT IndustryIncentive to both local and big players in setting up offices at Indore and Bhopalo In addition to getting the big companies to setup offices for IT/ITES in the IT parks of the state, give incentives for the local players to set up offices. e.g. Technopark, Keralao Extend the tax break for new joiners in the park and support budding entrepreneurso Give concessions to the new entrants on registration charges  Lower tax rates on computers and computer peripherals and on hardware maintenance  Exempt entry and purchase tax on infrastructure investment like buying computers, setting up logistics during the implementation stage. If required, extend this tax break to 5 years  Exempt from sales tax for 5 years up to a specified amount  For IT industry setting up their own power generation, exempt tax on power equipments  Pave way for completion of the unfinished IT park at Indore as soon as possible, thereby showing the intent of the government  Give incentive and tax break only to IT companies generating more than 1000 regular employments in the state  Single window clearance for setting up IT industry, minimize red tape & decrease set up time
  13. 13. Recommendations for IT IndustrySetting up communication and infrastructure of the IT centers Direct flights connected to all the major IT destinations of the country- Delhi, Mumbai , Hyderabad are already connected directly; push for direct flights from Kolkata, Bangalore, and Chennai Connectivity to the IT parks very convenient (Better roads, transportation & communities) Get the 4 approved IT parks operational as early as possible (within an year latest)Developing Manpower – Push towards building manpower for ITES-BPO Start investing in manpower for IT/ITES. IT as an elective at high-school level, such that by 2014 at least 30% students passing class 10 are capable of working in the ITES/BPO industry NAC (Nasscom Assessment of Competence) Test, is a standardized entry level exam for IT BPO Industry. Allow limited number of candidates from Madhya Pradesh to appear for this test free of cost each year in Indore/Bhopal. This would provide a huge locally available manpower for the ITES industry Soft-skill enhancement and English speaking training for youth to make them employable in the ITES industry. Provide free soft-skill training to government urban and rural schools Liberalize technical college education, so that people from all over the country can study in the technical colleges of the state and can get recruited in MP’s IT companies
  14. 14. E-Governance IITIT IN
  15. 15. Recommendations for E-governanceSpending• Increasing budget spending on e-governance process in priorities areas like healthcare, administration, general awareness, public distribution managementHealthcare• Target of achieving national level healthcare related indicators• Gradually increase e-governance spending in healthcare from 3% to 15%• E-governance setup in hospitals to improve administration in next two years• E-health and Tele-health to facilitate healthcare services in remote areasGeneral Awareness• To increase awareness among masses - providing information on the state welfare schemes one is eligible for by implementing mobile based servicesAdministration• Development of state level common e-governance infrastructure rather than districts implementing their own e-governance applications
  16. 16. education IITIT IN
  17. 17. RecommendationsSuggestion Implementation KPIMonetary incentive to •Similar to the provident fund •Monitor annual levelsfamilies that encourage concept of this fund- anthe girl child for higher •Deposit a certain amount in the indication of theeducation family’s name for every class the number of girls girl child passes pursuing education •Possibly higher amounts for •Monitor drop out higher classes and rates , goal is to college/technical education minimise drop outs •If the girl drops out, the family can withdraw only some portion of this amount, in accordance with the educational level the girl has ended with.
  18. 18. RecommendationsSuggestion Implementation KPIVocational •Contact SHGs to assess the •Monitor number of newEducation, demand of courses vocational centres coming upincreased focus •Token registration fee to be district wise and course wisefor women utilized during the course •Monitor increase in women •Incentive to vocational centres in engaged in vocations over a 5 rural areas (tax benefits or year period financial assistance) •Incentive to Centres that offer courses tailored for women •Seek private partnership to facilitate placements and financing issues
  19. 19. RecommendationsSuggestion Implementation KPIAllocation for •Facilitate education via literate •Formalise evaluationAdult literacy members of SHG’s, monetary incentive process, induce responsibility and •Current : Padhna-Badhna Andolan: 200 accountability via Rs. to the teacher for each candidate, CEOs average Rs 2000 per year, started in 1999 •Attendance for •Current status: Not Available classes taken •Increase the incentive •Regular evaluations like tests •52,117 inhabited villages in MP •31 crores to be allocated for the first year with Rs. 1000/month for each centre (1 centre per village, first phase- half of the inhabited villages)
  20. 20. TOURISM in mp IITIT IN
  21. 21. Development of Tourist Circuits• Develop, incentivize and aggressively market the four tourist circuit identified by the MP Govt• Priority approval to hotels, restaurants, resorts, amusement parks, safari projects• Electricity charges on a industrial basis and not on commercial basis for a 10 year period, as in the state of Gujarat• Providing subsidy on luxury tax on room tariffs, sales tax, entertainment tax and license fee for Foreign Liquor–III licenses • Removal of additional minimum guarantee over and above the previous year sale of liquor• Convert dilapidated heritage buildings and palaces to hotels through PPP• Urgent need for the development of infrastructure which is one of the major roadblock for tourism – roads, transport, and hotels• Provide interest and capital subsidy for tourism projects• Need to develop training institute to fulfill the human resource needs of tourism industry – Courses for catering, guides and non-supervisory hotel staff can be introduced in ITIs
  22. 22. MP as a Medical Tourism HubInvite hospital chains to MP (successful in AP) Advantage of brand-value and medical setup Govt.’s letter of support from center, state (secretary health services, tourism and NRI affairs) Land acquisition benefits: Location and Rate SEZ benefits: Duty free imports of equipments and supplies, income tax holidays for 5 years (on hospitals with 100+ beds) Targeted medicine discounts: Reduce state taxes on selected medicines Mega-project benefits as per state industrial policies: state level tax and duty concessions, power and water price concessions, various other concessions Find technology partners in the form of medical equipment manufacturing companies
  23. 23. MP as a Medical Tourism Hub• Invite private investors in Government hospitals – PILOT PROJECT – PPP in hospitals in successful in countries like Australia & UK Private investors should be allowed to open extension wings in existing government hospitals (under certain contract and with some minimal fee) 30% of their capacity (beds) will be used/available to BPL public as per the facilities provided by parent hospitals Private partner will be given all benefits mentioned in part 1 Machinery installed and medical staff facilities will be accessible to parent hospital as well Hospital will also receive extra charges on services provided such as surgery (as per decided upon rate list)