MADHYA PRADESH THE LAND OF DIAMONDS

Transcription

1 (As of 24 March 2017) 1

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

3 EXECUTIVE SUMMARY Strong economic growth GSDP of Madhya Pradesh grew at a compound annual growth rate (CAGR) of 11.86% during to 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 & 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 & ecotourism. 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 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 & metro urban communities like New Delhi (740 km 1 ), Mumbai (780 km 1 ), Kolkata (1,350 km 1 ) & 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 & ancillary units Ȧdvantage Madhya Pradesh 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. 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 & 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. 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 & capacity to aid 1 million youth in attaining wages & self employment Enhance the ease of doing business for the benefit of investors Attract higher investments in manufacturing, services & labour intensive sectors Investment promotion Transport Vision 2018 Skill development Housing Improve civic infrastructure, including public & household sanitation facilities Expand availability of affordable housing Make the state a world class tourist destination Promote religious, adventure & heritage tourism & attract private investment Tourism Agriculture Environment Promote social & agro forestry Revitalise ground water resources Infrastructure Private sector participation in maintaining waste disposal & water conservation 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 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, ,546 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) 18, , Central Electricity Authority, as of August 2016 Wireless subscribers (no) 64,379,812 1,078,422,215 Internet subscribers (no) 21,270, ,480,000 Telecom Regulatory Authority of India, as of October 2016 Telecom Regulatory Authority of India, as of September 2016 National Highway length (km) 5, , 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 March 2016 Industrial Infrastructure PPP projects completed & operational (no) 110 1,246 Operational SEZs (No) DEA, Ministry of Finance, Government of India, July 2016 Ministry of Commerce & Industry, Department of Commerce, July Including Chhattisgarh PPP: Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 8

9 MADHYA PRADESH THE LAND OF DIAMONDS ECONOMIC SNAPSHOT GSDP At current prices, the gross state domestic product (GSDP*) of Madhya Pradesh for stood at US$ billion. GSDP of Madhya Pradesh at current prices (in US$ billion) Between and , 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 9

10 MADHYA PRADESH THE LAND OF DIAMONDS ECONOMIC SNAPSHOT NSDP The net state domestic product (NSDP # ) of Madhya Pradesh was about US$ billion in NSDP of Madhya Pradesh at current prices (in US$ billion) During and , state s NSDP grew at a CAGR of about 12.06% Source: NSDP # - Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh, Government of Madhya Pradesh 10

11 MADHYA PRADESH THE LAND OF DIAMONDS ECONOMIC SNAPSHOT PER CAPITA GSDP The state s per capita GSDP^ in was US$ in comparison with US$ in Per capita GSDP of Madhya Pradesh at current prices (in US$) Per capita GSDP of the state increased at a CAGR of 10.78% during and Source: Per Capita GSDP^ - calculated using GSDP in million US$/population in million 11

12 MADHYA PRADESH THE LAND OF DIAMONDS ECONOMIC SNAPSHOT PER CAPITA NSDP The state s per capita NSDP & in was US$ in comparison with US$ 377 in Per capita NSDP of Madhya Pradesh at current prices (in US$) Per capita NSDP in the state increased at a CAGR of 10.98%, during and Source: per capita NSDP & - calculated using NSDP million US$/ Population in million 12

13 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP In , the tertiary sector µ contributed 43% to the state s GSDP at current prices, followed by primary sector µ with a contribution of 39.23% & secondary sector µ contributing 17.8%. At a CAGR of 15.32%, the primary sector witnessed the fastest growth among the 3 sectors, during to This was driven by agriculture, forest & logging & fishing. The tertiary sector expanded at a CAGR of 11.37% between & 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 and driven by manufacturing, electricity, gas & water supply & construction sectors. Madhya Pradesh will be the 1 st state in India to release a happiness index in 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. GSDP composition by sector CAGR 45% 43% 11.37% 27% 28% 7.69% 15.32% 7.80% 39.23% Primary Secondary Tertiary Source: Sector-wise %share of GSDP µ - Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh, Government of Madhya Pradesh 13

14 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION (1/2) Agriculture is the main source of livelihood for the people of the Madhya Pradesh. In , 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 , total food grain production in the state stood at million metric tonnes. In , 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 2 nd 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. Crop Annual production in ( 000 metric tonnes) Wheat 15,644.1 Fruits 6,290 Vegetables 14, Sugarcane 4,716.1 Onion 2,848 Rice 3,408.4 Food grains 27,876.6 Spices Honey Coarse cereals 3,658.8 Total pulses 4,820 Total budget allocation for the agricultural & allied industries during is estimated to be US$ million. Source: MP State Facts Profile Department of Agriculture and Cooperation, National Horticulture Board, TechSci Research 1 Thousand bales of 170 kg each 14

15 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION (2/2) As per budget , various seminars were conducted during , for promotion & development of bio-products as well as bio-agriculture in the state. During , 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 Moreover, for agricultural soil, water conservation as well as agricultural research & education, the state government has allocated an amount of US$ million as per the budget During , US$ 1.14 billion would be sanctioned by the state government for irrigation & flood control sector in the state. Moreover, an allocation of US$ million was made by the state government for horticulture & food processing sector. 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 March 2016, totalled to US$ 1.29 billion. FDI equity inflows 1, to (US$ million) Power generation & manufacturing were the key sectors which attracted the majority share of FDI inflow during In addition, the investments in real estate & 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 & With a capital investment of US$ million Government of Madhya Pradesh approved 6 projects in January Source: Department Of Industrial Policy & Promotion 1 Including Chhattisgarh; 16

17 Annual budget allocation in the state, for , is proposed to be US$ 9.76 billion. STATE BUDGET Sector Budget (US$ million) Agriculture & allied activities Rural development 1,771.6 Irrigation and flood control 1, Industry and mining Transport Science, technology and environment General economic services Social services 4, General services Source: State Budget

18 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) & 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 , 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 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. PHYSICAL INFRASTRUCTURE ROADS Road type Road length (km) (2015) National highways 5, State highways 10,859 Major district roads 19,574 Village roads 24,209 Road length 59,835 As per the state budget , work on development of various district roads had started in 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. Source: NHAI, Ministry of Road Transport & Highways, State Budget

19 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 , construction work on phase-i of 28 km long Bhopal metro rail & 31 km long Indore metro rail was initiated in , and is expected to be completed by For these projects, a total loan of US$ million & US$ 1.83 billion would be provided by the central government as well as Japan International Corporation Agency respectively. PHYSICAL INFRASTRUCTURE RAILWAYS Source: Maps of India Moreover, during , the state government allocated US$ million for construction work on phase-i of the 28 km-long Bhopal metro rail and 31 kmlong 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 19

20 PHYSICAL INFRASTRUCTURE AIRPORTS 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 12 th Five Year Plan. Airport indicators in Madhya Pradesh No. of passengers Airport Indore 1,353,300 1,692,892 Bhopal 416, ,615 Aircraft movement Airport Indore 14,371 14,858 Bhopal 5,375 7,755 Freight (in tonnes) Airport Indore 6,315 6,992 Bhopal 937 1,153 Source: Airports Authority of India 20

21 PHYSICAL INFRASTRUCTURE POWER (1/3) As of August 2016, Madhya Pradesh had total installed power generation capacity of 18, MW, comprising 5, MW under state utilities, 4, MW under central utilities and 8, MW under the private sector. 8,574 9,351 Installed power capacity (MW) 18,571 18,917 16,813 14,259 12,902 Of the total installed power generation capacity, 12, MW was contributed by thermal power, 3, MW was contributed by hydropower, MW was contributed by nuclear power and renewable power contributed 3, 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 (1) 17% 16% 2% 65% Source: Central Electricity Authority 1 Upto August 2016 Break-up of installed capacity by source of power generation ( ) Thermal Power Hydropower Renewable Power Nuclear Power Source: Central Electricity Authority; (1) Figures as of August

22 PHYSICAL INFRASTRUCTURE POWER (2/3) Madhya Pradesh Power Generating Corporation Ltd. is a state owned company engaged in electricity generation. Segment Company name 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. 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 22

23 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. Unit- 13 of Vindhyachal TPP-V, with capacity of 500 MW, was commissioned in August 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

24 PHYSICAL INFRASTRUCTURE TELECOM According to Telecom Regulatory Authority of India (TRAI), Madhya Pradesh had nearly million wireless subscribers & million wireline subscribers, as of October 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. 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%) 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, Department of Telecommunications 1 As of September

25 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. 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 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 Source: Bhopal Municipal Corporation, NNURM, Ministry of Urban Development, Government of India 25

26 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE (2/3) As per the budget , 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$ 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$ 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. 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

27 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. During , the government proposed an outlay of US$ 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 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 27

28 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (1/2) Name of project Sector PPP type Status Road upgradation (Lebad-Jaora) Project Build-Operate-Transfer (BOT) Transport Road Upgradation Project (Bankhlafata-Kogawa- Borawa-Sarvardevala) Project Not available Transport 5.14 Road upgradation (Jaora-Nayagaon) Project Build-Operate-Transfer (BOT) Transport Road Upgradation Project (Bahari-Hanumana) Project Road Upgradation (Bhopal-Dewas) Project Road Upgradation Project (Badwani-Palsood- Sendhawa) Project Road Upgradation Project (Ashok Nagar-Vidisha) Project Design-Build-Finance-Operate- Transfer (DBFOT) Design-Build-Finance-Operate- Transfer (DBFOT) Design-Build-Finance-Operate- Transfer (DBFOT) Build-Operate-Transfer (BOT) Annuity Transport Transport Transport Transport Electricity Distribution Project (Ujjain) Not available Energy Road Upgradation Project (Ashapur-Khalwa- Singhot) Project Build-Operate-Transfer Annuity Transport Dewas-Ujjain-Badnagar-Badnawar Road Project Build-Operate-Transfer (BOT) Transport 7.53 Road Upgradation Project (Alirajpur-Jobat) Project Build-Operate-Transfer (BOT) Annuity Transport 6.92 Project cost (US$ million) Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Source: Department of Economic Affairs 28

29 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (2/2) Name of project Sector PPP type Status Road Upgradation Project (Waraseoni-Lalbarra) Project Road Upgradation (Tyonda-Ganjbasoda) Project Road Upgradation Project (Umari-Phoop-Pratapur) Project Road Upgradation Project (Ujjain-Unhel-Nagda-Ghiloda) Project Road Upgradation Project (Ujjain-Simhastha) Project Design-Build-Finance- Operate-Transfer (DBFOT) Build-Operate-Transfer (BOT) Annuity Design-Build-Finance- Operate-Transfer (DBFOT) Design-Build-Finance- Operate-Transfer (DBFOT) Build-Operate-Transfer (BOT) Annuity Transport 6.50 Transport Transport Transport Transport Road Upgradation (Gwalior-Bhind up to UP Border) Project Build-Operate-Transfer (BOT) Transport Road Upgradation Project (Uchera-Nagod-Singhpur- Kalinnjer Road) Project Road Upgradation (Sheopur-Badora-Khawajapur) Project Road Upgradation Project (Tikamgarh-Mehironi) Project Road Upgradation (Dehgaon-Bamori) Project Road Upgradation Project (Tikamgarh-Jatara-Palera- Nowgaon) Project Design-Build-Finance- Operate-Transfer (DBFOT) Build-Operate-Transfer (BOT) Annuity Design-Build-Finance- Operate-Transfer (DBFOT) Build-Operate-Transfer (BOT) Annuity Design-Build-Finance- Operate-Transfer (DBFOT) Transport Transport 9.45 Transport 4.49 Transport 5.51 Transport Project cost (US$ million) Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Source: Department of Economic Affairs 29

30 DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) (1/2) 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. 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 30

31 DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) (2/2) 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. IT/ITeS Industry Location No of SEZs Formally approved SEZs as of July 2016 Indore, Gwalior, Jabalpur, Bhopal 8 Gems and Jewellery Indore 1 Industry Location No of SEZs In-principle approved SEZs Notified SEZs as of July 2016 IT/ITeS Indore, Gwalior 5 Multi-product Chhindwara, Sehore 1 Source: Special Economic Zones in India- Ministry of Commerce & Industry, TechSci Research 31

32 SOCIAL INFRASTRUCTURE EDUCATION.. (1/2) 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 (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, thousand girls were benefited during (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. 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 32

33 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$ 3.20 billion, US$ million & US$ million for the development of school education, higher education & medical education departments in the state. Under Rashtriya Madhyamik Shiksha Abhiyan, allocation of US$ million was proposed by the state government during During , the state government is targeting building development of 120 high schools & higher secondary schools. The Government of Madhya Pradesh has committed US$ 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 33

34 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. During (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 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 the development of Public Health And Family Welfare Department in the state, during Under Public Health Engineering, an allocation of US$ million was made by the state government, as per the state budget Source: Ministry of Health & Family Welfare, Government of India, Sample Registration System (SRS) Bulletin, 1 Per thousand persons, 2 Per thousand live births 34

35 CULTURAL INFRASTRUCTURE 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$ million during However, for sports & youth welfare in the state, an allocation of US$ million was proposed by the Government of Madhya Pradesh, as per state budget 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$ 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 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

36 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 & 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. 36

37 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 37

38 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. INDUSTRIAL INFRASTRUCTURE (3/4) Under the Centre s Plastic Park Scheme, Industries & Commerce Department is developing plastic parks at an estimated cost of US$ million at Tamot in Raisen and Billoa district, Gwalior. 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 38

39 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 39

40 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. Gwalior Smart cities in Madhya Pradesh Cities Population Literacy rate Satna Bhopal 2,371, % Ujjain Sagar Indore 3,276, % Gwalior 2,032, % Indore Bhopal Jabalpur Ujjain 1,986, % Jabalpur 2,463, % Sagar 2,378, % Satna 2,228, % Source: News Article, Census 2011 & TechSci Research 40

41 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 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$ million The government approved a coated fabric manufacturing plant to be set up by Mayur Uniquoters Ltd. at Seetapur in Morena, worth US$ million of investment, in January The government in January 2017, approved a furniture fittings & manufacturing unit in Pithampur by Hettich India Pvt. Ltd., with an investment of US$ million. Year KEY INDUSTRIES.. (1/2) IEMs filed Proposed investments (in US$ billion) Source: Madhya Pradesh State Portal, DIPP 1 As of May

42 KEY INDUSTRIES.. (2/2) In the state budget , for the rural industries, Government of Madhya Pradesh allocated an amount of US$ 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 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 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 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