MADHYA PRADESH THE LAND OF DIAMONDS

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2 Executive Summary.. 3 Advantage State 4 Vision Madhya Pradesh An Introduction 6 Infrastructure Status Business Opportunities Doing Business in Madhya Pradesh State Acts & Policies

3 EXECUTIVE SUMMARY Strong economic growth Madhya Pradesh is among the fastest growing states in India; GSDP grew at a compound annual growth rate (CAGR) of per cent during to Rich in natural resources The state is rich in natural resources: fuels, minerals, agriculture and biodiversity. Madhya Pradesh has ample reserves of coal and coal-bed methane (8.38 per cent of India s total coal reserves and BCM of methane). The state has the largest reserves of diamond and copper in India. Madhya Pradesh has significant reserves of limestone, manganese and dolomite. Potential for tourism Madhya Pradesh boasts of rich ancient cultural and religious heritage. Due to a thick forest cover, the state has immense potential for wild life, adventure and 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 and food parks at multiple locations aim to promote sectoral growth. MP is aggressively emerging as a solar power hub, and is targeting generation of 2,650 MW of solar power by Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas 3

4 ADVANTAGE MADHYA PRADESH 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 and metro urban communities like New Delhi (740 km 1 ), Mumbai (780 km 1 ), Kolkata (1,350 km 1 ) and Chennai (1,435 km 1 ) 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 and ancillary units. Rich resource pool The state is rich in minerals and has the highest stone, diamond and copper reserves in India, notwithstanding noteworthy reserves of coal, coal-bed methane, manganese and dolomite. 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 and Indian Institute of Technology. Advantage Madhya Pradesh Attractive investment avenues With around 33 per cent of the region under forests, Madhya Pradesh has an enormous potential for drug, wood and agrobased commercial enterprises. Ideal soil and climatic conditions have made it a primary producer of coarse cereals, oilseeds and soybean in India. The cluster-based advancement methodology promotes investments in automotive, textiles and biotechnology. Plentiful limestone and coal reserves give development avenues for the cement industry. A rich cultural heritage, scenic beauty and wildlife sanctuaries offer a promising tourism industry. Indore is all set to be the new IT capital with TCS and Infosys opening their offices. Policy and infrastructure support Madhya Pradesh offers distinctive monetary and strategy/policy incentives for organisations under the Industrial Promotion Policy & Action Plan, other than strategies/ policies for IT, biotechnology, tourism and 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 and consents. The state government has made some well-planned infrastructure investments for roads and 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. 1 From Bhopal 4

5 MADHYA PRADESH VISION 2018 Develop the transportation network to enhance rural connectivity Reform the institutional machinery for creating public transport facilities Skill development by expanding training infrastructure and capacity to aid 1 million youth in attaining wages and self employment Enhance the ease of doing business for the benefit of investors Attract higher investments in manufacturing, services and labour intensive sectors Investment promotion Transport Vision 2018 Skill development Housing Improve civic infrastructure, including public and household sanitation facilities Expand availability of affordable housing Make the state a world class tourist destination Promote religious, adventure and heritage tourism and attract private investment Tourism Agriculture Expand the outreach of agriculture technology and irrigation to remote farms. Promote farm level diversification and value addition. Environment Promote social and agro forestry Revitalise ground water Infrastructure resources Private sector participation in maintaining waste disposal and water conservation Connect all villages through world class highways To be a leader in renewable energy and green technology Keep the state power surplus by addition to the power generation capacity Source: Government of Madhya Pradesh 5

6 MADHYA PRADESH FACT FILE There are 11 agro-climatic conditions and a variety of soils available in the state to support cultivation of a wide range of crops. Parameters Capital Madhya Pradesh Bhopal Geographical area (sq km) 308,000 Administrative districts (No) 51 Population density (persons per sq km) 236 Source: Maps of India 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. 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 Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of the key cities of the state. Source: Government of Madhya Pradesh website, National Informatics Centre Madhya Pradesh 6

7 MADHYA PRADESH IN FIGURES (1/2) Parameter Madhya Pradesh All states Source Economy GSDP as a percentage of all states GSDP GSDP growth rate (%) Per capita GSDP (US$) 1,121 1, Physical Infrastructure TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh Installed power capacity (MW) 16, , Central Electricity Authority, as of November 2015 Wireless subscribers (no) 63,183,099 1,003,487,792 Internet subscribers (no) 18,160, ,420,000 Telecom Regulatory Authority of India, as of October 2015 Telecom Regulatory Authority of India, as of June 2015 National Highway length (km) 5, ,214 NHAI & Roads and Building Department Airports (no) Airports Authority of India 7

8 MADHYA PRADESH IN FIGURES (2/2) Parameter Madhya Pradesh All states Source Social Indicators Literacy rate (%) Census 2011 Birth rate (per 1,000 population) SRS Bulletin Investment FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, From April 2000 to September 2015 Industrial Infrastructure PPP projects completed & operational (no) 88 1,382 DEA, Ministry of Finance, Government of India Operational SEZs (No) Ministry of Commerce & Industry, Department of Commerce 1 Including Chhattisgarh PPP: Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 8

9 ECONOMIC SNAPSHOT GSDP At current prices, the gross state domestic product (GSDP) of Madhya Pradesh for was US$ billion. Between and , the GSDP of the state grew at a CAGR of per cent. GSDP of Madhya Pradesh at current prices (in US$ billion) CAGR: % Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics, Government of Madhya Pradesh 9

10 ECONOMIC SNAPSHOT NSDP The net state domestic product (NSDP) of Madhya Pradesh was about US$ billion in The CAGR for NSDP between and was about per cent. NSDP of Madhya Pradesh at current prices (in US$ billion) CAGR: % Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh, Government of Madhya Pradesh 10

11 ECONOMIC SNAPSHOT PER CAPITA GSDP The state s per capita GSDP in was US$ 1,121 compared with US$ in Per capita GSDP of Madhya Pradesh at current prices (in US$) Per capita GSDP has increased at a CAGR of per cent during and CAGR: 11.16% ,121 Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh, Government of Madhya Pradesh 11

12 ECONOMIC SNAPSHOT PER CAPITA NSDP The state s per capita NSDP in was US$ 1,006 compared with US$ in Per capita NSDP of Madhya Pradesh at current prices (in US$) The per capita NSDP increased at a CAGR of per cent during and CAGR: 11.31% ,006 Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh, Government of Madhya Pradesh 12

13 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP In , the tertiary sector contributed per cent to the state s GSDP at current prices, followed by primary sector (38.92 per cent) and secondary sector (18.90 per cent). At a CAGR of per cent, the primary sector has been the fastest growing among the three sectors from to This was driven by agriculture, forest & logging, and fishing. The tertiary sector expanded at a CAGR of per cent between and The growth has been driven by trade, hotels, real estate, finance, insurance, transport, communications and other services. The secondary sector expanded at a CAGR of per cent between and driven by manufacturing, electricity, gas & water supply and construction. GSDP composition by sector 22.32% CAGR 45.19% 42.18% 12.06% 10.97% 18.90% 32.49% 38.92% 14.89% Primary sector Secondary sector Tertiary sector Source: Central Statistical Organisation (CSO), TechSci Research 13

14 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION (1/2) Agriculture is the main source of livelihood for the people of the Madhya Pradesh. As of 2015, the state had million hectare of area under cultivation. Wheat, soyabean, gram, sugarcane, rice, maize, cotton, rapeseed, mustard and arhar are the major crops of the state. In , total food grain production of the state stood at million metric tonnes. In , total pulses production by the state was around 4.55 million tonnes. In addition, the share of Madhya Pradesh in India s production of oilseeds and pulses was around 28%. Madhya Pradesh is the largest producer of pulses, oilseeds soyabean and gram in the country. The state is the second highest producer of wheat, masoor and mustard across India. It is one of the leading producers of garlic and coriander. The production of wheat, cotton, baajra, corn, gram, soyabean, mustard, groundnut, paddy, jowar and corn in the state, is above the national average. In , 1,265.8 thousand hectare of land was used for the cultivation of horticulture crops and the Government of Madhya Pradesh is targeting to increase the area of horticulture crops by 75 thousand hectare in the state during Crop Annual production in ( 000 metric tonnes) Wheat 13,371.8 Soyabean 5,346.2 Gram 3,812.4 Sugarcane 2,516.1 Cotton 1,900 1 Rice 3,309.5 Maize 1,534.0 Vegetables & fruits 19,450.3 Rapeseed & mustard Arhar Total oilseeds 8,624.8 Total pulses 4,557.4 Source: MP State Facts Profile Department of Agriculture and Cooperation, TechSci Research 1 Thousand bales of 170 kg each 14

15 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION (2/2) As per state budget , the state government is aiming to set up six fertilisers quality laboratories and nine seed quality laboratories in the state for the input quality control of the crops. The total budget allocation for the agricultural and allied industries during is estimated to be US$ 867 million. For , the aim of the government is to distribute loans of US$ 2.99 billion through co-operative banks and expand the horticulture crop area approximately by million hectares in the state. During , the government has taken various decisions for establishing Polyclinics and Disease Research Laboratories in every district of the state. In addition to this, the government announced plans to set up 100 fish markets in the state in For this purpose, under the Fishermen Housing Scheme, a total of 500 houses are anticipated to be given free for the same period. The government also sanctioned a new Ambitious Narmada Gambhir Link Project for an approximate amount of US$ million. In addition to this, lift irrigation schemes were also proposed by the government for the Sihada and Dabri in Khandwa and Alirajpur districts during US$ 1.24 billion will be sanctioned to the state by the government for the irrigation purpose during and the government has also proposed to develop an irrigation capacity of 2,50,000 hectare in the state during Source: State Budget

16 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows 1 from April 2000 to September 2015 totalled US$ 1.26 billion. Power generation and manufacturing were the key sectors which attracted the majority share of FDI inflow during In addition, the investments in real estate and services are also gaining momentum. In , exports from Madhya Pradesh reached US$ 4.19 billion in value terms, reflecting a CAGR of 8.4% between and FDI equity inflows 1, to (US$ million) Source: Department Of Industrial Policy & Promotion 1 Including Chhattisgarh; 2 From April 2015-September

17 STATE BUDGET The annual budget allocation in the state is proposed to be US$ billion for Sector Budget (US$ million) Sports & youth development Tourism Forest Agriculture & allied services 867 Basic education 2, Higher education Technical education Medical education Industrial development Transportation Source: State Budget

18 PHYSICAL INFRASTRUCTURE ROADS Madhya Pradesh has 20 national highways measuring 5, 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) and 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 Lok Nirman Vibhag, the Government of Madhya Pradesh constructed 2,500 km of roads and 40 bridges in The Government of Madhya Pradesh also renovated road with 2,000 km length. Under Pradhan Mantri Gram Sadak Yojana, the Government of Madhya Pradesh constructed roads of 2,558 km length and renovated roads of 1,678 km length. For linking 9,109 villages under Mukhyamantri Gram Sadak Yojana, construction of 7,575 roads of total length of 19,386 km is targeted by the Government of Madhya Pradesh. Road type Road length (km) (2015) National highways 5,184 State highways 10,859 Major district roads 19,574 Village roads 24,209 Road length 59,835 The state government is targeting construction of 50 bridges and 2,500 km of roads in under the Public Works Department, for which an amount of US$ million was sanctioned by the state government. Source: NHAI, Ministry of Road Transport & Highways, State Budget

19 PHYSICAL INFRASTRUCTURE RAILWAYS Madhya Pradesh has around 4,954 km of railway lines and 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 and clinker, and fertiliser and 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. Source: Maps of India The government has also started a feasibility study for constructing these rail metros in Jabalpur and Gwalior. As per the Annual Budget , the government is undergoing various activities for the completion of light metro rail projects in Indore and Bhopal 19

20 PHYSICAL INFRASTRUCTURE AIRPORTS.. (1/2) Madhya Pradesh has five operating airports at Jabalpur, Bhopal, Indore, Gwalior and Khajuraho. Indore and Bhopal airports are the busiest airports in the state. In September 2015, passenger traffic at Indore airport reached 137,337 passengers with overall aircraft movement of 1,208. For the same month, passenger traffic at Bhopal airport was 52,834 passengers with overall aircraft movement of 652. Both Indore and Bhopal airports have strong cargo handling capacity. In September 2015, Indore airport handled 580 tonnes of cargo, whereas Bhopal airport handled 100 tonnes of cargo. Bhopal and Indore airports in the state have been modernised. The government has announced to undertake development of Gwalior and Khajuraho airports under the 12 th Five Year Plan. Airport indicators in Madhya Pradesh No. of passengers Airport Indore 1,114,073 1,353,300 Bhopal 429, ,284 Aircraft movement Airport Indore 13,785 14,371 Bhopal 7,446 5,375 Freight (in tonnes) Airport Indore Bhopal Source: Airports Authority of India 20

21 PHYSICAL INFRASTRUCTURE AIRPORTS.. (2/2) Airport Indicators in Madhya Pradesh Number of passengers (April-September) Airport Indore 630, Bhopal 187, ,444 Jabalpur 55,241 88,661 Khajuraho 15,795 13,620 Gwalior 5,106 4,086 Aircraft movements (April-September) Airport Indore 7,340 7,518 Bhopal 2,540 3,871 Freight-Tonnes (April-September) Airport Indore Jabalpur 936 1,400 Khajuraho Gwalior Bhopal Jabalpur 0 0 Khajuraho 0 0 Gwalior 0 0 Source: Airports Authority of India 21

22 PHYSICAL INFRASTRUCTURE POWER (1/3) As of November 2015, Madhya Pradesh had total installed power generation capacity of 16, MW, which comprised 6, MW under state utilities, 4, MW under central utilities and 6, MW under the private sector. Of the total installed power generation capacity, 11, MW was contributed by thermal power, 3, MW was contributed by hydropower, MW was contributed by nuclear power and renewable power contributed 1, MW. Madhya Pradesh is on its way to become a solar power hub, with 114 projects currently The total budget allocation for energy sector in state is estimated to be US$ million during ,574 Installed power capacity (MW) 9,351 12,902 14,259 16, ¹ 19% Break-up of installed capacity by source of power generation ( ) 10% 2% Thermal Power 69% Hydropower Renewable Power Nuclear Power Source: Central Electricity Authority; 1 As of November

23 PHYSICAL INFRASTRUCTURE POWER (2/3) Madhya Pradesh Power Generating Corporation Limited is a state owned company engaged in electricity generation. Segment Company name The power distribution business is being managed through three government-controlled entities: Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited, Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited, and Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited. Madhya Pradesh Power Transmission Company carries out intra-state transmission of electricity, State Transmission Utility, and State Load Dispatch Centre. Madhya Pradesh Power Trading Corporation Limited deals with power trading and other related activities. Distributor MPPoKVVCL MPPaKVVCL MPMaKVVCL Area covered Jabalpur, Sagar, Shahdol and Rewa Indore and Ujjain Bhopal, Hoshangabad, Gwalior and Chambal Power generation Power distribution Power transmission Power trading Madhya Pradesh Power Generating Corporation Limited 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) Madhya Pradesh Power Transmission Corporation Limited Madhya Pradesh Power Trading Corporation Limited Source: Energy Department-Government Of Madhya Pradesh 23

24 PHYSICAL INFRASTRUCTURE POWER (3/3) 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. Of the total approved 4,760 MW, the company has installed 3,760 MW until date. 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. The Government of Madhya Pradesh allocated US$ 1.61 billion for the state s energy department and US$ 9.06 million for the promotion of renewable energy in the state during

25 PHYSICAL INFRASTRUCTURE TELECOM According to Telecom Regulatory Authority of India (TRAI), Madhya Pradesh had nearly million wireless subscribers and 1.05 million wireline subscribers, as of August As of August 2015, teledensity (telephone connections per 100 persons) in Madhya Pradesh was per cent. Telecom infrastructure- as of October 2015 Wireless subscribers 63,183,099 Wire-line subscribers 1,053,996 Internet subscribers 1 18,160,000 Teledensity (in per cent) Some of the major telecom operators in Madhya Pradesh Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel Vodafone Essar Idea Cellular Reliance Communications Tata Teleservices Source: Telecom Regulatory Authority of India 1 As of June

26 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE (1/3) Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 27 projects costing around US$ 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. The state government recently inaugurated Utthan an urban infrastructure investment programme, which is a three year partnership programme from and it is in collaboration with the British Department for International Development (DFID), and the Government of United Kingdom. Utthan helps the urban poor with facilities such as roads, water, street light and drains. The project has directly benefited about 71,000 slum dwelling families in the state. 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. Source: Bhopal Municipal Corporation, NNURM, Ministry of Urban Development, Government of India 26

27 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE (2/3) As per the Budget , following announcements were made for enhancement of urban infrastructure in the state: In order to fulfil the target of a planned urban development, the state government would prepare development plans for around 14 cities in The government decided to prepare a separate urban transport fund, which would be dedicated towards smooth operations related to urban public transport. Provided sanction for the construction of 634 community and 1,77,807 individual toilets under Mukhya Mantri Shahri Swacchata Mission. An amount of US$ million will be provided for Simhastha-2016 which will be held in Ujjain district. The promotion of e-governance has been started in the urban region of the state by E-Nagar Palika Project. For increasing the 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 the development of 60,000 houses for the urban poor by providing an amount of US$ million under urban development scheme. In addition to this, a sanction of US$ million has also been provided for 15,340 houses under Rajeev Awas Yojna. Source: Budget

28 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE (3/3) 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 Sixty seven projects worth US$ million have been approved between March 13 and March 2014 and are in the transition phase for water supply under JNNURM. In cities such as Indore, around 55.0 per cent 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$100 million have been sanctioned in for sewage treatment under JNNURM. Indore and Ujjain generate around 500 tonnes per day (TPD) and 160 TPD of solid-waste, respectively. Under the JNNURM, the entire solid waste is expected to be collected and treated. A project worth US$ 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 and for improvement of the drainage systems. Seven projects worth around US$ 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 28

29 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (1/2) Name of project Sector PPP type Mangawan to MP/UP border four-lane (NH-27) km Project cost (US$ million) Status Transport BOT Under construction Airport (Indore) Project - Upgradation Transport Under construction Airstrip & Civil Aviation Training Social and commercial BOT- Annuity 1.36 Under construction CBD at Bhopal Social and commercial Under construction Indore to Khalaghat Transport BOT-Toll Completed Multilevel parkings & places in Indore Transport BOT 2.32 Operational Four-laning of Bhopal-Devas State Highway Transport BOT-Toll Under construction Four-laning of Lebad-Joura State Highway Transport BOT-Toll Under construction Construction of 100 bus stops with LED screens Transport - - Four-laning of Gwalior bypass on NH-3 Transport BOT- Annuity Under Construction Completed Four-laning of Joura-Nayagaon State Highway Transport BOT-Toll 67 Under construction Water supply augmentation at Khandwa Water sanitation BOT- Annuity Under construction Source: Department of Economic Affairs 29

30 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (2/2) Name of project Sector PPP type Project cost (US$ million) Waste based power unit (Khatonda) Energy DBFOT Development of CBD in South TT Nagar Bhopal Social and commercial Bhopal-Biaora four-lane (NH 12) Transport PPP Dewas Industrial Water Supply Scheme Water sanitation Four Laning of Lebad Jaura State Highway Transport PPP Indore-Dewas NH-3 Road Project Transport PPP 137 Barlai Sugar Factory- Indore Social and commercial Status Under construction Under construction Under construction Under construction Under construction Under Construction DBFOT 5.08 Operational Sidhi-Singrauli four-lane (NH-75E) Transport PPP Lakhnadon to MP/MH Border (Km to Km ) Sports PPP Under construction Under construction Source: Department of Economic Affairs 30

31 DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) (1/3) The state has two operational SEZ. One is for multi-product in Indore with the name Indore SEZ and another one is for IT and ITeS products. 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 per cent FDI in the manufacturing sector is allowed through the automatic route. Notified area Processing zone Operational Indore SEZ 1, hectares hectare 26 industrial and 2 trading units Number of allotments 42 Number of units operating 41 Investment under implementation US$ 62.2 million (9 units) 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 Exports ( ) US$ million Source: Ministry of Commerce & Industry 31

32 DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) (2/3) As of November 2015, the state has formal approvals for 12 SEZs, which 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 Formally approved SEZs as of November 2015 IT/ITeS Indore, Gwalior, Jabalpur, Bhopal 8 Mineral based Jabalpur 1 Industry Location No of SEZs Notified SEZs as of November 2015 IT/ITeS Indore, Gwalior 5 Mineral-based Jabalpur 1 Agro-based Jabalpur 1 Aluminium Singrauli 1 Agro-based Jabalpur 1 Aluminium Singroli 1 Gems and Jewellery Multi-product Indore 1 In-principle approved SEZs Chhindwara, Sehore 1 Source: Special Economic Zones in India- Ministry of Commerce & Industry, TechSci Research 32

33 SOCIAL INFRASTRUCTURE EDUCATION.. (1/2) Madhya Pradesh had a literacy rate of 70.6 per cent; the male literacy rate is 80.5 per cent and the female literacy rate is 60.0 per cent. In , the state had 229 engineering & architecture colleges, 266 management institutes, 74 institutes running MCA, 94 colleges of pharmacy, thirteen medical colleges and six institutes of hotel management. As of April 2015, the state had 84,011 primary schools, a total of 6,636 high schools and 5,211 higher secondary schools (including the private schools). 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. 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 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 33

34 SOCIAL INFRASTRUCTURE EDUCATION.. (2/2) 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 , following announcements were made: The government proposed an allocation of US$ 2.61 billion for the development of education departments during Construction of toilets in each and every school of the state for fulfilling the campaign of Swachch Bharat Swachch Vidalaya. For higher education in the state, the government proposed an allocation of US$ million. In addition, US$ million would be provided for the technical education and development of skills in the state. Various projects related to development of super speciality health services in Jabalpur, Gwalior and Rewa medical colleges have been proposed by the government for an amount of US$ million. Source: AICTE 34

35 SOCIAL INFRASTRUCTURE HEALTH During , the healthcare services network of Madhya Pradesh comprised 51 district hospitals, 334 community health centres, 1,171 primary health centres and 9,192 subhealth centres. There are 53 special new born care units and 66 civil hospitals in the state. Madhya Pradesh and Free State of South Africa have signed an MoU to further strength cooperation in healthcare. In order to extend the health infrastructure in the state, a facility of free dialysis would be provided to patients in district hospitals of the state. Health indicators of Madhya Pradesh Birth rate Death rate Infant mortality rate 2 54 Life expectancy at birth (years) Male ( ) 64.5 Female ( ) 65.3 Health institutions ( ) 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$ million for various health services during , under the Public Health And Family Welfare Department. US$ million was the total allocated budget estimate for public health and family welfare during Source: Ministry of Health & Family Welfare, Government of India, Sample Registration System (SRS) Bulletin, 1 Per thousand persons, 2 Per thousand live births 35

36 Madhya Pradesh s history dates back to the pre-historic age. The United Nations Educational, Scientific and Cultural Organisation (UNESCO) has declared three locations in the state as heritage sites: temples at Khajuraho, Buddhist monuments at Sanchi and 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 and martial arts. Eminent sports personalities are awarded with the Vikram Awards, the Ekalavya Awards and the Vishwamitra (lifetime achievement) Award. In order to enhance the cultural infrastructure in the state the government would provide US$ million for the sports and infrastructure related developments. The Government of Madhya Pradesh proposed plans to construct Tagore Arts Complex in order to promote the art & culture in the state. The complex will be established in Khandwa and Vidisha districts of the state. CULTURAL INFRASTRUCTURE Among the cultural festivals of Madhya Pradesh, the Khajuraho Festival of Dance and the Tansen Music Festival in Gwalior celebrate classical Indian dance and music. These festivals are well attended by both domestic and international tourists. The state government will also provide an amount of US$ million in order to increase the activities related to culture and archaeology. Type of museum (no) State-level museums 6 District-level museums 11 Local museums 6 Site museums 5 District Archaeological Association museums 16 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 Source: Directorate of Archaeology, Archives and Museums, Government of Madhya Pradesh; State Budget

37 INDUSTRIAL INFRASTRUCTURE (1/4) 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, and Non-Resident Indians (NRls) to the state and provide various facilities and concessions to them. For a balanced and sustainable growth of industry across the state, MPSIDC established seven growth centres at Bhopal, Gwalior, Jabalpur, Indore, Rewa, Ujjain and 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

38 INDUSTRIAL INFRASTRUCTURE (2/4) Infrastructure Indore AKVN Rewa AKVN Ujjain AKVN Sagar AKVN Area developed (hectares) 3, 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 Special infrastructure Proposed projects Eicher, Bridgestone, Hindustan Motors, Man Force, Flexituff, Kinetic, Cummins Multi-product SEZ, IT SEZ, Food Park, Apparel Park, Inland Container Depot (ICD), IIDC Auto testing track, food park, pharma cluster, namkeen park, logistics park Birla, Jaypee Ranbaxy, S.Kumars, Gajra, Kirloskar, Tata Ghadi Detergent, RSPL (Rohit Surfactant), Sanmati Foods IIDC Food park, IIDC IIDC 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

39 INDUSTRIAL INFRASTRUCTURE (3/4) The Industrial Promotion Policy 2010 aims to upgrade industrial infrastructure and 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 six clusters: Indore, Bhopal, Jabalpur, Gwalior, Rewa and Sagar. The state has excellent infrastructure, with 19 industrial development parks, 129 industrial areas, 6 food parks, 8 integrated development centres, 3 dry parks, one stone park, one IT park, one SEZ and an apparel park at Indore. A gems and jewellery park is being developed in Indore to promote the diamond industry in the state. 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. Indore Bhopal Jabalpur Gwalior Rewa Sagar Potential clusters Pharmaceutical, textile, food processing, IT, auto components Engineering, textile, biotech, herbal, IT, food processing Garment, mineral, stone, forest, herbal, food processing Electronics, IT, FMCG, engineering, stone, food processing Mineral, cement, forest produce Mineral processing, stone Source: MP Facilitation Centre for NRI, Indore Special Economic Zone, TechSci Research SEZ: Special Economic Zone 39

40 INDUSTRIAL INFRASTRUCTURE (4/4) Industrial clusters in Madhya Pradesh Gwalior Bhopal Rewa Jabalpur Indore Sagar Source: Maps of India, Madhya Pradesh State Industrial Development Corporation 40

41 SMART CITIES As of September 2015, seven 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 seven cities of Madhya Pradesh, namely Bhopal, Indore, Gwalior, Ujjain, Jabalpur, Sagar and Satna. Gwalior Smart cities in Madhya Pradesh Cities Population Literacy rate Bhopal 2,371, % Indore 3,276, % Gwalior 2,032, % Ujjain 1,986, % Jabalpur 2,463, % Sagar 2,378, % Ujjain Indore Bhopal Sagar Satna Jabalpur Satna 2,228, % Source: News Article, Census 2011 & TechSci Research 41

42 KEY INDUSTRIES.. (1/2) Wealth of natural assets including agro-based items, forest products and minerals, the state s policy incentives and its central location have pulled in significant investments in the agro-products, consumer goods, medications and pharmaceuticals, mines and minerals, manufacturing and textiles sectors. The state government is keen to develop a strong mechanical base. The Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) and its subsidiary, Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (MPAKVN) are the key nodal offices for development in the state. Year IEMs filed Proposed investments (in US$ billion) 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 and Gwalior. Under Industrial Promotion Policy 2010, the government aims to promote agro-based and local natural resourcebased industries. Tertiary sector is the largest contributor to the state economy with a share of per cent of GSDP in Source: Madhya Pradesh State Portal, DIPP 1 As of October

43 KEY INDUSTRIES.. (2/2) In the state budget , a new scheme related to industrial investment promotion was declared for enhancing industrial activities in the state. In addition, the government framed various policies to attract more investments in different sectors such as tourism, IT, renewable energy, technical education, skill development, public health, etc. After the validation of various self employment schemes in the state, the government decided to start the Mukhya Mantri Yuva Udhyami Yojana and Mukhya Mantri Aarthik Kalyan Yojana. For assisting investment promotion in the state as well as infrastructure development in the industrial areas, the government proposed an allocation of US$ million to the state s commerce industries and employment department during 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 GSDP contribution by sectors Year Agriculture and allied Industry Services % 25.92% 44.26% % 25.00% 44.50% % 25.31% 45.90% % 24.75% 45.99% % 22.68% 45.54% % 20.32% 43.92% % 18.90% 42.19% Source: Madhya Pradesh State Portal, State Budget

44 KEY INDUSTRIES AUTO AND AUTO COMPONENTS (1/2) Strategic location of the state, with its proximity to the automotive hub of NCR, provide key advantages for wellconnected regions of Madhya Pradesh to emerge as auto clusters. Supported by facilities such as an auto testing track and auto research centre, Pithampur region has emerged as a major auto cluster. Eicher Motors Ltd Force Motors Ltd Hindustan Motors Ltd Some key players Mahindra Two Wheelers Ltd The essential infrastructure foundation existing in the automotive cluster includes power, water supply, telecommunication services and 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 and Mahindra Two Wheelers, a major tyre producing unit of Bridgestone and about 30 auto component and ancillary units. 44

45 KEY INDUSTRIES AUTO AND AUTO COMPONENTS (2/2) 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 The company recorded revenues of US$ million during September 2014-September 2015 Force Motors is a vertically integrated automobile company, which designs, manufactures and markets its range of vehicles tractors, three wheelers, light commercial vehicles, multi-utility vehicles and 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 Subsequently, it also obtained ISO 9001:2000 certification in The total revenues recorded by the company stood at US$ million during and US$ million during April-September 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 and 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$ 2.5 million in and US$ 0.06 million during April-September Mahindra Two 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. The company recorded total revenues of around US$ million in