MADHYA PRADESH AUGUST 2015 THE LAND OF DIAMONDS. For updated information, please visit

Transcription

1 1

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 Rich in natural resources Potential for tourism Madhya Pradesh is among the fastest growing states in India; GSDP grew at a compound annual growth rate (CAGR) of per cent during to 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. 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. 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 Infrastructure support Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas Note: *Data for

4 ADVANTAGE Attractive investment avenues 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*), Mumbai (780 km*), Kolkata (1,350 km*) and Chennai (1,435 km*) 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 Advantage Madhya Pradesh 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. 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 Policy2010 & 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. *From Bhopal 4

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

6 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 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. Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of the key cities of the state. Madhya Pradesh Capital Bhopal Geographical area (sq km) 308,000 Administrative districts (No) 51 Population density (persons per sq km) 236 Total population (million) 72.6 Male population (million) 37.6 Female population (million) 35.0 Sex ratio (females per 1,000 males) 931 Literacy rate (%) 69.3 Source: Government of Madhya Pradesh website, National Informatics Centre Madhya Pradesh Census

7 IN FIGURES (1/2) Parameter Madhya Pradesh All states Economy TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh GSDP growth rate (%) TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh Per capita GSDP (US$) 1,121 1, TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh 16,445.11^ 272, Central Electricity Authority, as of May ,280,196^^ 973,347,094 Telecom Regulatory Authority of India-April 2015 Broadband subscribers (No) 2,660,000* 100,760,000 Telecom Regulatory Authority of India-April 2015 National Highway length (km) 5,185 92, National Highway Authority of India April Airports Authority of India-April 2015 GSDP as a percentage of all states GSDP Source Physical Infrastructure Installed power capacity (MW) Wireless subscribers (No) Airports (No) ^As of June 2015, ^^As of May 2015, *As of March

8 IN FIGURES (2/2) Madhya Pradesh All states Source Literacy rate (%) Census 2011 Birth rate (per 1,000 population) SRS Bulletin, September 2014 FDI equity inflows (US$ billion) 1.26* Department of Industrial Policy & Promotion, April 2000 to March 2015 Outstanding investments (US$ billion) ,414.2 CMIE (March, 2014) Government PPP projects (No) 158 1,409 DEA, Ministry of Finance, Government of India SEZs (Formally Approved) Notified as of March 2015, Ministry of Commerce & Industry Parameter Social Indicators Investment Industrial Infrastructure *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. GSDP of Madhya Pradesh at current prices (in US$ billion) CAGR: 12.83% Between and , the GSDP of the state grew at a CAGR of per cent Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics, Government of Madhya Pradesh 9

10 ECONOMIC SNAPSHOT NSDP NSDP of Madhya Pradesh at current prices (in US$ billion) The net state domestic product (NSDP) of Madhya Pradesh was about US$ billion in CAGR: 12.99% The CAGR for NSDP between and was about per cent 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$) 1,121 Per capita GSDP has increased at a CAGR of per cent during and CAGR: 11.16% 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$) CAGR: 11.31% The per capita NSDP increased at a CAGR of per cent during and ,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. GSDP composition by sector CAGR 45.19% 22.32% 32.49% 10.97% 14.89% Primary sector The secondary sector expanded at a CAGR of per cent between and driven by manufacturing, electricity, gas & water supply and construction % 12.06% 18.90% 38.92% Secondary sector Tertiary sector Source: Central Statistical Organisation (CSO), TechSci Research 13

14 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION 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 was around 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 and soyabean in the country. The state is a leading producer of garlic and coriander. Crop Wheat Soybean Annual production in ( 000 metric tonnes) 16,518 5,346.2 Gram 3,812.4 Sugarcane 2,516.1 Cotton 1,900* Rice 2,122.0 Maize 1,534 Rapeseed & mustard 480 Arhar 332 Total oilseeds 8,624.8 Total pulses 4,557.3 Source: MP State Facts Profile Department of Agriculture and Cooperation, TechSci Research *Thousand bales of 170 kg each 14

15 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows from April 2000 to May 2015 totalled US$ billion*. FDI equity inflows, to (US$ million)* 451 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 Source: Department Of Industrial Policy & Promotion *Including Chhattisgarh 15

16 STATE BUDGET The annual budget for the state is proposed to be US$ 1.68 billion for Sector Budget (US$ million) Police Education, sports, art & culture Irrigation 83.0 Agriculture & allied services 7.87 Industries & minerals Employment 2.53 Housing & urban development Forest & wildlife Medical & social health, family welfare, water supply & sanitation Construction of 150,000 houses in under Mukhya Mantri Gramin Awas Mission for rural areas Increase the area under horticulture crops by 75 thousand hectares in Construction of 7,575 km roads under Mukhyamantri Gram Sadak Yojana Facilitate 5 lakh houses in city areas by year 2018 Investment of US$ million for super speciality health services in medical colleges in Jabalpur, Gwalior and Rewa Source: State Budget , *Assumed exchange rate of US$ 1= Rs for JUNE

17 PHYSICAL INFRASTRUCTURE ROADS In January 2014, the state invited bids to develop the Khandwa Bypass, Guna-Aaron-Sironj (SH-23), and UjjainMaksi roads on BOT basis. As of July 2015, Guna-AaronSironj (SH-23) road is under construction. As of July 2015, the Madhya Pradesh Road Development Corporation Limited (MPRDC) invited bids to construct the Ujjain-Badnagar Road (SH-18) on percentage rate basis. Furthermore, MPRDC invited online requests for proposals (RFP) for development of Morena-Sabalgarh road section of SH-2; Ambala Pinhat road & Tekna-Manpur-Rameshwar road on EPC mode. Source: Maps of India Madhya Pradesh has 19 national highways measuring 5,185 km. The state also has 10,859 km of state highways. The total road length in the state is around 99,914 km. 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). The state had 185 PPP projects in the roads sector at various stages of development as of March The state is well connected with major urban cities of the nation, consumer markets, and ports on the West Coast, for example Kandla and Jawaharlal Nehru Port Trust. Road type Road length (km) National highways 5,185 State highways 10,859 Major district roads 19,574 Source: Ministry of Road Transport & Highways, PPP Cell Directorate of Institutional Finance, Madhya Pradesh 17

18 PHYSICAL INFRASTRUCTURE RAILWAYS Madhya Pradesh has around 4,954 km of railway lines passing through it. 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. 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. Source: Maps of India 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. 18

19 PHYSICAL INFRASTRUCTURE AIRPORTS Madhya Pradesh has five operating airports at Jabalpur, Bhopal, Indore, Gwalior and Khajuraho. Gwalior Indore and Bhopal airports are the busiest airport in the state. In , Indore airport had passenger traffic of 1.3 million with overall aircraft movement of 14,371. For the same year, Bhopal airport had passenger traffic of 1.24 million with aircraft movement of 6,206. Khajuraho Bhopal Jabalpur Both Indore and Bhopal airports have strong cargo handling capacity. In , Indore airport handled 6,315 tonnes of cargo, whereas Bhopal airport handled 4,467 tonnes 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 12th Five Year Plan. The government plans to set up an air cargo hub at either Bhopal or Indore. The cargo hub is expected to boost the business within the state. Indore Domestic airport Source: Maps of India Source: Airports Authority of India The Madhya Pradesh Road Development Corporation (MPRDC) with contribution to the private sector plans to develop an airport at Singrauli. 19

20 PHYSICAL INFRASTRUCTURE POWER (1/3) As of June 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 Installed power capacity (MW) 16, ,902 8,574 9, , Source: Central Electricity Authority 20

21 PHYSICAL INFRASTRUCTURE POWER (2/3) Madhya Pradesh Power Generating Corporation Limited is a state owned company engaged in electricity generation. The power distribution business was unbundled in 2005 and is 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. Segment Power generation Company name 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 Company carries out intra-state transmission of electricity, State Transmission Utility, and State Load Dispatch Centre. Power distribution Madhya Pradesh Power Trading Corporation Limited deals with power trading and other related activities. Distributor Area covered MPPoKVVCL Jabalpur, Sagar, Shahdol and Rewa MPPaKVVCL Indore and Ujjain MPMaKVVCL Bhopal, Hoshangabad, Gwalior and Chambal Power transmission Power trading Madhya Pradesh Power Transmission Corporation Limited Madhya Pradesh Power Trading Corporation Limited Source: Energy Department-Government Of Madhya Pradesh (Annual Report ), TechSci Research 21

22 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 state has been awarded with the country s first Ultra-Mega Power Plant (UMPP), Sasan UMPP, with an installed capacity of 3,960 MW. The fifth 660-MW unit was commissioned in August 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. In February 2014, the Anil Dhirubhai Ambani Group (ADAG) announced plans to invest US$ million to set up a 4,000 MW power plant at Chitrangi. Tata Power is looking to venture into the solar power arena in Madhya Pradesh and is expected to set up a 240 MW solar project in the state. 22

23 PHYSICAL INFRASTRUCTURE TELECOM As of May 2015, Madhya Pradesh had 3,227 electronic telephone exchanges. According to Telecom Regulatory Authority of India (TRAI), Madhya Pradesh had nearly million wireless subscribers and 1.08 million wireline subscribers, as of March As of May 2015, teledensity (telephone connections per 100 persons) in Madhya Pradesh was per cent. Telecom infrastructure- May 2015 Wireless connections 612,801,96 Wire-line connections 108,833,3 Broadband subscribers 266,000,0* Post offices 8,318 Telephone exchanges 3,227 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 *As of March

24 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE (1/2) 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. It is in collaboration with the British Department for International Development (DFID). 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. Under Urban Infrastructure Development Scheme for Small & Medium Towns (UIDSSMT) programme of JNNURM, 134 projects worth US$ million were approved from March 2013 to March 2014 and are in the transition phase. Source: Bhopal Municipal Corporation website, JNNURM, Ministry of Urban Development, Government of India 24

25 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE (2/2) Focus areas of urban development in Madhya Pradesh Water supply Sewerage system Solid-waste management The average per capita water supply in major cities, such as Indore, is around 80 litres per day. In cities such as Indore, around 55.0 per cent of the population is connected to a sewage network. Indore and Ujjain generate around 500 tonnes per day (TPD) and 160 TPD of solid-waste, respectively. Under the JNNURM, cities are being planned to achieve per capita water supply of 135 litres per day between 2015 and Under the JNNURM, the entire population in the cities will be connected to the sewage network. Under the JNNURM, the entire solid waste is expected to be collected and treated. Three projects worth US$100 million have been sanctioned in for sewage treatment under JNNURM. A project worth US$ 10.7 million has been sanctioned. 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. Others 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. Three solid waste management projects have been identified in Dewas, Sagar and Katni. Source: MP Trade & Investment Facilitation Corporaton Ltd., JNNURM, Ministry of Urban Development, Government of India, TechSci Research 25

26 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (1/2) Sector PPP type Project cost (US$ million) Status Mangawan to MP/UP border four-lane (NH-27) km Transport BOT Under construction Airport (Indore) Project - Upgradation Transport Under construction Airstrip & Civil Aviation Training Social and commercial BOTAnnuity 1.36 Under construction CBD at Bhopal Social and commercial Under construction Indore to Khalaghat Transport BOT-Toll Completed 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 - - Under Construction Four-laning of Gwalior bypass on NH-3 Transport BOTAnnuity Completed Four-laning of Joura-Nayagaon State Highway Transport BOT-Toll 67 Under construction Water sanitation BOTAnnuity Under construction Name of project Water supply augmentation at Khandwa Source: Department of Economic Affairs 26

27 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS (2/2) Sector PPP type Project cost (US$ million) Status Social and Commercial Under construction Transport PPP Under construction Water Sanitation Under construction Four Laning of Lebad Jaura State Highway Transport PPP Under construction Indore-Dewas NH-3 Road Project Transport PPP 137 Under Construction Sidhi-Singrauli four-lane (NH-75E) Transport PPP Under construction Sports PPP Under construction Name of project Development of CBD in South TT Nagar Bhopal Bhopal-Biaora four-lane (NH 12) Dewas Industrial Water Supply Scheme Lakhnadon to MP/MH Border (Km to Km ) Source: Department of Economic Affairs 27

28 DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) (1/3) One multi-product SEZ is operational in Indore. 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. Indore SEZ Notified area Processing zone Operational Some of the key companies in Indore SEZ 1, hectares hectare 26 industrial and 2 trading units Number of allotments 42 Number of units operating 41 Investment under implementation Exports ( *) US$ 62.2 million (9 units) US$ million SRF Flexituff India Nets New Tech Pipes Advance Enzyme Technology Ipca Laboratories Amulya Exports Emerald Tobacco Pratibha Syntex Source: Ministry of Commerce & Industry 28

29 DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) (2/3) As of July 2015, formal approval has been given to 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. Notified SEZs as of July 2015 Industry Location No of SEZs Indore, Gwalior 5 Mineral-based Jabalpur 1 Agro-based Jabalpur 1 Aluminium Singrauli 1 IT/ITeS Industry Location No of SEZs Formally approved SEZs as of July 2015 Indore, Gwalior, Jabalpur, Bhopal 8 Mineral based Jabalpur 1 Agro-based Jabalpur 1 Aluminium Singroli 1 Gems and Jewellery Indore 1 IT/ITeS In-principle approved SEZs Multi-product Chhindwara, Sehore 1 Source: Special Economic Zones in India- Ministry of Commerce & Industry, TechSci Research 29

30 DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) (3/3) SEZs in Madhya Pradesh Gwalior IT/ITeS (1) Bhopal IT/ITeS (1) Indore IT/ITeS (5) Gems and jewellery (1) Operational SEZ Formally approved SEZ In-principle approved SEZ Jabalpur IT/ITeS (1) Mineral based (1) Agro-based (1) Chindwara Multi-product (1) Source: Maps of India, TechSci Research 30

31 SOCIAL INFRASTRUCTURE EDUCATION Madhya Pradesh has a literacy rate of 69.3 per cent according to the final data of Census 2011; the male literacy rate is 78.7 per cent and the female literacy rate is 54.5 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, 3,912 high schools and 3,599 higher secondary 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 69.3 Male 78.7 Female 54.5 Educational institutions (as of April 2015) Primary schools 84,011 High schools 3,912 Higher secondary schools 3,599 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 31

32 SOCIAL INFRASTRUCTURE HEALTH As of 2014, the healthcare services network of Madhya Pradesh comprised 51 district hospitals, 334 community health centres, 1,157 primary health centres and 8,860 subcentres. There are 21 ayurvedic hospitals and 2 homoeopathic hospitals in the state. In 2012, the state launched a consolidated health service (Sampoorna Swasthya Sabke Liye) in all its 52,000 villages. This includes all the health schemes launched by the central and state governments. Health institutions (2014) District hospitals 51 Primary health centres 1,157 Sub-centres 8,869 Community health centres 334 Ayurvedic hospitals 21 Homeopathic hospitals 2 Madhya Pradesh and Free State of South Africa have signed an MoU to further strength cooperation in healthcare. Health indicators of Madhya Pradesh (2013) Birth rate* 26.3 Death rate* 8.0 Infant mortality rate** 54 Source: Department of AYUSH, Ministry of Health & Family Welfare, Government of India, Sample Registration System (SRS) Bulletin September 2014, *Per thousand persons, **Per thousand live births Life expectancy at birth (years) Male ( ) 64.5 Female ( )

33 CULTURAL INFRASTRUCTURE 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. 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. 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 wellpreserved stupas of India. Type of museum (no) 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. 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 33

34 INDUSTRIAL INFRASTRUCTURE (1/5) 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 Engineering cluster, logistic hub, food park, plastic park, textile park Readymade garment park, food park Agri SEZ, food park, textile park, apparel park Proposed project Source: MP Trade & Investment Facilitation Corp. Ltd. 34

35 INDUSTRIAL INFRASTRUCTURE (2/5) 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 Eicher, Bridgestone, Hindustan Motors, Man Force, Flexituff, Kinetic, Cummins Birla, Jaypee Ranbaxy, S.Kumars, Gajra, Kirloskar, Tata Ghadi Detergent, RSPL (Rohit Surfactant), Sanmati Foods Multi-product SEZ, IT SEZ, Food Park, Apparel Park, Inland Container Depot (ICD), IIDC IIDC Food park, IIDC IIDC Industrial area Knowledge city, new industrial area under the Delhi Mumbai Industrial Corridor project Industrial Area Special infrastructure Proposed projects Auto testing track, food park, pharma cluster, namkeen park, logistics park Source: MP Trade & Investment Facilitation Corp. Ltd., SEZ: Special Economic Zone 35

36 INDUSTRIAL INFRASTRUCTURE (3/5) 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. Potential clusters Indore Pharmaceutical, textile, food processing, IT, auto components Bhopal Engineering, textile, biotech, herbal, IT, food processing Jabalpur Garment, mineral, stone, forest, herbal, food processing Gwalior Electronics, IT, FMCG, engineering, stone, food processing Rewa Mineral, cement, forest produce Sagar Mineral processing, stone Source: MP Facilitation Centre for NRI, Indore Special Economic Zone, TechSci Research SEZ: Special Economic Zone 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. Total exports from Indore SEZ stood at US$ million in

37 INDUSTRIAL INFRASTRUCTURE (4/5) The state is developing two SEZs at Hargarh and UmariyaDungariya. Once operational, the Hargarh SEZ will provide infrastructure support to mineral-based industries, while Umariya-Dungariya will cater to the agriculture and food processing industries. A US$ 4.82 million mega project for establishing an apparel park at Indore will have state-of-the-art common effluent treatment facilities. The park would span acres and boost the apparel industry in the state. MPSIDC plans to develop power plants, and as of 2015, plants by Reliance Energy ltd. and Essar Power Ltd. are under-construction. It has also undertaken a US$ 13.3 million project to bring water from Narmada river to Dewas under the BOT scheme, which will likely resolve the water problems of 460 industries and facilitate further industrialisation of the Dewas industrial belt. In April 2014, GE announced an investment of US$ 24 million in Neemuch for a 151 MW solar photovoltaic power project in partnership with Welspun Renewables Energy. Proposed mega investments in the infrastructure sector Madhya Pradesh (US$ million) Reliance Energy Ltd 4,000 Essar Power Ltd 1,600 Auto Testing Track (NATRIP) 86.8 BLA Power 60 GAIL 55.2 Tata Power 41 Food parks in Madhya Pradesh Jaggakhedi (Distt. Mandsaur) Nimrani (Distt. Khargone) Piparia-Babai (Distt. Hoshangabad) Borgaon (Distt. Chhindwara) Maneri (Distt. Mandla) Malanpur-Ghirongi (Distt. Bhind) Source: MP Facilitation Centre for NRI, TechSci Research 37

38 INDUSTRIAL INFRASTRUCTURE (5/5) Industrial clusters in Madhya Pradesh Gwalior Bhopal Rewa Jabalpur Indore Sagar Source: Maps of India, Madhya Pradesh State Industrial Development Corporation 38

39 SMART CITIES Seven cities of Madhya Pradesh are announced to be developed as a smart cities as of July In an effort to revolutionise the infrastructure of the state, the state government has decided to revamp the seven cities, namely Bhopal, Indore, Gwalior, Burhanpur, Jabalpur, Sagar and Satna. Gwalior Smart Cities in Madhya Pradesh Satna Cities Population Area (sq km) Literacy rate Bhopal 2,371,061 2, % Indore 3,276,697 3, % Gwalior 2,032,036 4, % Burhanpur 757,847 3, % Jabalpur 2,463,289 5, % Sagar 2,378,458 10, % Satna 2,228,935 7, % Sagar Bhopal Jabalpur Indor Burhanpur Source: Census 2011 & TechSci Research 39

40 KEY INDUSTRIES 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. Key industries in Madhya Pradesh 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. 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 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 Service % 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: TechSci Research Estimates, News Articles 40

41 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. Some key players 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 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. 41

42 KEY INDUSTRIES AUTO AND AUTO COMPONENTS (2/2) 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 total revenues of US$ 1.57 billion in the period and has invested a total of US$ million at its Madhya Pradesh plant. 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 company recorded revenues of US$ million in Hindustan Motors Ltd 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, multiutility vehicles and Road-Trusted Vehicles (RTV). In technical collaboration with Australian OKA Motor Company, HML manufactures RTVs in its plant at Pithampur. The company recorded revenues of US$ 3.48 million in Mahindra Two Wheelers Ltd 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 Eicher Motors Ltd Force Motors Ltd 42

43 KEY INDUSTRIES TEXTILES (1/3) Madhya Pradesh is one of the major cotton producing states of India. In *, cotton was grown on an estimated area of 574,000 hectares in the state with a total production of around 1.75 million bales (170 kg each). Cotton textile mills are based in Indore, Dewas, Ujjain, Malanpur, Pithampur, Khargone, Gwalior and Bhopal. An apparel park is located in the Indore SEZ and would spread over 150 to 260 acres of land. The project is implemented by M.P. Audyogik Kendra Vikas Nigam (Indore) Ltd. Indore has been identified as the region for infrastructure development under the Textiles Centre Infrastructure Development Scheme (TCIDS). The city is a cluster of the readymade garments industry with over 1,260 garment units. Extending support to the industry, the state government has announced plans to upgrade existing apparel clusters at Indore and Jabalpur. The state government has established a textile park in Chhindwara. As of July 2015, work of main water supply pipeline is under progress. The central government plans to develop a second textile park at Indore, and US$ 6.6 million would be sanctioned for this purpose. Textile Research Association and Export Promotion Council are to be set up in Madhya Pradesh. Textile infrastructure in Madhya Pradesh Composite mills 20 Exclusive weaving units 8 Export oriented spinning units 12 Handlooms 47,000 Looms 6,500 Power looms 43,290 Power loom units 17,524 Rotors 14,348 Spindles 1,414,000 Spinning units 40 Some key players Century Textiles and Industries Ltd Grasim Industries Ltd Vardhman Textiles Ltd Raymond Ltd Source: Madhya Pradesh Business Line, Public-Private Partnerships in India, Madhya Pradesh State Industrial Development Corporation Note: *3rd Advanced Estimates 43

44 KEY INDUSTRIES TEXTILES (2/3) To attract investments into the sector, the government has provided an interest subsidy for five years at a rate of 5 per cent for textile projects and 7 per cent for composite textile projects without capping. Furthermore, the government provided 100% assistance in plant and machinery for eight years under Industrial Investment Promotion Assistance Scheme. Cotton production and productivity in Madhya Pradesh FY08 FY09 FY10 FY11 Production (Lakh Bales, LHS) FY12 FY13 FY14 FY15* Yield (Kgs/Hectare, RHS) Source: The Cotton Corporation of India Ltd, *Projected, As per Cotton Advisory Board, TechSci Research 44

45 KEY INDUSTRIES TEXTILES (3/3) Century Textiles and Industries Ltd Grasim Industries Ltd Century Textiles and Industries Ltd was incorporated in The company has interests in textile, rayon, cement and paper. Yarn and denim production units of the textile business are located at Satrati in Madhya Pradesh. The plant is equipped with 24,960 spindles for manufacture of yarn and produced about 4,244.2 tonnes of yarn during The denim division has a production capacity of 21 million metres of denim fabrics per annum. The company recorded revenues of US$ 1.25 billion in Grasim Industries Ltd, a flagship company of the Aditya Birla Group, is one of the leading companies in India with diverse interests in cement, chemicals and textiles. Its textile plants are located at Bhiwani, Haryana and Malanpur, Madhya Pradesh. The Malanpur unit of the company manufactures worsted dyed yarn spun from pure merino wool along with polyester and other blends. The company has a wide retail network and also serves international apparel manufacturers. The company recorded total revenues of US$ 1.05 billion in The Vardhman Group is a leading textile conglomerate in India having a turnover of US$ 1.1 Billion. The yarn manufacturing units are located in Mandideep (130,994 spindles), Satlapur (222,624 spindles) and Bhudhni (60,000 spindles). In September 2013, the company added 36,288 spindles to its Satlapur plant. Furthermore, the Bhudhni plant has a fabric weaving unit (400 looms) and a fabric processing unit with a capacity of 40 million metres per annum. The company posted total revenues of US$ million in Raymond is a major fabric manufacturer in India. Besides, the company also has business interests in engineering and aviation. The company is one of the largest integrated manufacturers of worsted fabric in the world and commands over 60.0 per cent market share in worsted suiting in India. The total production capacity of the company is around 38 million metres of wool and wool-blended products. One of the four plants of the company is located at Chhindwara in Madhya Pradesh. The company recorded revenues of US$ million in Vardhman Textiles Ltd Raymond Ltd 45

46 KEY INDUSTRIES CEMENT (1/2) The state is the third largest producer of cement in the country and provides up to 13 per cent of national demand. Being rich in limestone and coal reserves, the state represents significant opportunities for the growth of the cement industry. Satna, Jawad and Neemuch of Madhya Pradesh feature among the seven major limestone clusters in India. These clusters provide easy access to raw material resources for the cement industry. Most limestone deposits are concentrated in the districts of Damoh, Dhar, Neemuch, Sheopur, Rewa, Satna and Sidhi. Total cement grade limestone resources of the state are estimated at million tonnes. Some of the key players Birla Corporation Ltd ACC Limited Jaiprakash Associates Ltd. Heidelberg Cement India Ltd Cement Corporation of India Ltd. Source: Cement Information System (CIS)- Department of Industrial Policy & Promotion, Government of India; Cement Manufacturers Association, TechSci Research As of 2015, Madhya Pradesh has 13 cement plants, namely Birla Vikas & Satna Cement Works (1), Cement Corporation of India Ltd. (2), Century Cement (1), Heidelberg Cement India Ltd (1), Jaypee Cement (4), K.J.S. Cement (1), Kymore Cement Works (1), Prism Cement Ltd (1) and Ultratech- Vikram Cement Works (1). In February 2014, the Anil Dhirubhai Ambani Group (ADAG) announced plans to invest US$ million towards setting up a 5 metric tonne capacity cement plant at Maihar. As of February 2015, the company has established the plant and is targeting northern and eastern market through this plant. 46

47 KEY INDUSTRIES CEMENT (2/2) Birla Corp Ltd Birla Corporation Limited is the flagship company of the M P Birla Group with business interests in cement, jute goods, polyvinyl chloride floor covering, auto trim parts and iron & steel casting. The cement plant of the company is located in Satna, Madhya Pradesh. The plant has a capacity of 2.2 million tonnes per annum. In October 2013, the company announced plans to set up three grinding cum blending units in Madhya Pradesh. The company recorded revenues of US$ million in ACC Ltd ACC Limited is one of the largest cement manufacturers in India with 17 cement plants, more than 40 ready-mix concrete plants, 21 sales offices and over 9,000 dealers. In Madhya Pradesh, it has plants in Kymore with a capacity of 2.7 million tonnes per annum (MTPA). The company recorded revenues of US$ 1.01 billion during January 2015-June 2015*. Everest Industries Limited manufactures a range of building solutions, which include ceilings, walls, flooring, cladding, doors, roofing and pre-engineered steel buildings. One of the five manufacturing facilities of the company is located at Kymore in Madhya Pradesh. It is among the first manufacturers of fibre-cement roofing sheets and accessories in India. The plant has been awarded by the state government for excellence in the fields of safety, health and environment. In , the company posted a total revenue of US$ million. Heidelberg Cement India Ltd is a subsidiary of Cementrum I.B.V. (a company incorporated under the laws of The Netherlands, which is 100 per cent controlled by HeidelbergCement AG, which is one of the largest cement manufacturers in the world). The company has two cement plants at Damoh in Madhya Pradesh. Its cement is sold under brand name Mycem. In (fifteen months), the company posted a total revenue of US$ million. Everest Industries Ltd Heidelberg Cement India Ltd Source: *Six months ending June 30, 2015, Unaudited results 47

48 KEY INDUSTRIES PHARMACEUTICAL AND BIOTECHNOLOGY INDUSTRY... (1/2) Madhya Pradesh has a rich bio-diversity. About 25.2 per cent of the state is under forest cover; 11 of the 25 agroclimatic zones are present in the state and a large variety of rare and valuable medicinal and herbal plants are available. A nodal agency has been constituted to oversee the developments of the sector. Incentives in the form of capital subsidies and training assistance have been arranged to encourage investment. Some of the key players Ipca Industries Lupin Ltd Piramal Healthcare Ltd Sun Pharmaceutical Industries Ltd Teva Source: MP Trade & Investment Facilitation Corp Ltd, TechSci Research Biotechnology and pharmaceuticals have been recognised as thrust sectors. The state has formulated a Biotechnology Policy, which has created a conducive environment for the bio-pharmaceutical industry in the state. Bio Technology Park (Indore) and Bio Fuel Park (Rewa) are major infrastructure facilities operational in the state. Agricultural research on hybrid varieties and clinical trials are among the key activities being undertaken by the state. 48

49 KEY INDUSTRIES PHARMACEUTICAL AND BIOTECHNOLOGY INDUSTRY... (2/2) Ipca is a fully integrated Indian pharmaceutical company with a strong thrust on exports. The company has operations in over 110 countries and exports account for around 60.0 per cent of the sales. The company has six Active Pharmaceutical Ingredient (API) manufacturing plants and seven formulation plants in India. In Madhya Pradesh, it has plants at Indore, Pithampur and Ratlam. The plants manufacture drug intermediaries, oral solids, liquids and injectables, etc., and are certified by apex global agencies. In , total revenues of the company reached US$ million. Lupin Ltd is an innovation-led pharmaceutical company producing a wide range of generic and branded formulations and Active Pharmaceutical Ingredients (APIs). The company has two plants in Madhya Pradesh one at Indore for formulations and another at Mandideep for API. The plant at Mandideep is approved by global authorities such as World Health Organisation (WHO), United States Food and Drug Administration (USFDA) and United Kingdom Medicine and Healthcare products Regulatory Agency (UKMHRA). In , the company recorded revenues of US$ 2.09 billion. Piramal Healthcare Ltd (PHL) is a globally integrated healthcare company with revenues of around US$ million in The company caters to a large range of therapeutic products under a number of divisions such as acute care, biotech, cardiac, diabetes, general medicine, orthopaedic, pain management, etc. The company has six manufacturing facilities in India, one of which is located at Pithampur in Madhya Pradesh. Sun Pharmaceutical Industries Ltd, one of India's largest pharmaceutical companies, is an integrated, research-based pharmaceutical company with a global presence. In , the total revenue of the company was around US$ 4.55 billion. The company announced the acquisition of Ranbaxy Laboratories Limited in April 2014, and completed the acquisition deal in March The company manufactures a wide range of generic medicines in its 45 manufacturing sites across the globe. Sun Pharma Industries Ltd. has two manufacturing facilities in Madhya Pradesh at Dewas and Malanpur. Ipca Laboratories Ltd Lupin Ltd Piramal Healthcare Ltd Sun Pharmaceutical Industries Ltd 49

50 KEY INDUSTRIES MANUFACTURING (1/3) Madhya Pradesh State Industrial Development Corporation and its subsidiaries have developed numerous growth centres across the state. The Industrial Policy of the state provides numerous incentives for setting up manufacturing units. The manufacturing sector in Madhya Pradesh is witnessing strong growth on account of improving industrial infrastructure, policy incentives, labour resources and central location of the state. Some of the key players Bharat Heavy Electricals Ltd Kirloskar Brothers Ltd Kores (India) Ltd Crompton Greaves Birla Corporation Districts such as Indore, Bhopal, Jabalpur, Ujjain, Gwalior, Dhar, Satna, Dewas, Sagar and Khandwa are notable manufacturing hubs in Madhya Pradesh. 50

51 KEY INDUSTRIES MANUFACTURING (2/3) Between and , income originating from the manufacturing sub-sector grew at a CAGR of 0.9 per cent. For industrial modernisation, the state has undertaken measures such as introduction of Progressive Industrial Policy, infrastructure improvements and frequent investor meets. To facilitate the industry with modern infrastructure, the state has initiated expansion of existing IT parks, stone parks, apparel parks and SEZs. NSDP originating from manufacturing sub-sector at constant prices (US$ billion) Unregistered Registered Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Madhya Pradesh, Government of Madhya Pradesh 51

52 KEY INDUSTRIES MANUFACTURING (3/3) Bharat Heavy Electricals Ltd (BHEL) is a large engineering and manufacturing enterprise in India in the energy-related and infrastructure sector. In , total revenue of the company was US$ 5.01 billion. The Bhopal unit of BHEL was set up in Piplani in 1956 with technical assistance from Associated Electricals (India) Limited, a UK-based company. The unit has the capability to manufacture hydro, steam, marine and nuclear turbines, heat exchangers, hydro and turbo generators, transformers, switchgears, control gears, transportation equipment, capacitors, bushings, electrical motors, rectifiers, oil drilling rig equipments and diesel generating sets. The unit also has a material testing and instrument calibration laboratory and a township spread across 20 sq km for its employees. Kirloskar Brothers Ltd (KBL) is the flagship company of the US$ 2.1 billion Kirloskar Group. KBL has business interests in large infrastructure projects such as water supply, power generation and irrigation, manufacturing of pumps for domestic, agricultural and industrial use. The net sales of KBL in were at around US$ million. The company has six manufacturing plants, one of which at Dewas in Madhya Pradesh was established in The plant manufactures pumps for domestic and agricultural use. Kores (India) Ltd was incorporated in 1936 and has business interest in diverse fields such as office products, foundry, textiles, pharmaceuticals, engineering, etc. The engineering division of the company has a plant at Pithampur in Madhya Pradesh. The plant is set up on an area of 71,192 sq m and has facilities such as machining, fabrication, assembly and testing. The company produces hydrostatic rigs, pumps, drills and related accessories in the plant at Pithampur. Crompton Greaves is a part of the US$ 4 billion Avantha Group. The company is engaged in designing, manufacturing and marketing of technologically advanced electrical products and services. The company manufactures transformers at its plants in Mandideep and Malanpur and industrial systems (rotating machines & railway signalling unit) in Pithampur. The company recorded revenues of US$ 2.32 billion in Bharat Heavy Electricals Ltd Kirloskar Brothers Ltd Kores (I) Ltd Crompton Greaves 52

53 KEY INDUSTRIES FAST MOVING CONSUMER GOODS (1/2) Factors such as industrial infrastructure in growth centres, cheap labour and central location are the key influencers for establishing consumer goods manufacturing facilities in the state. Many multinational companies, such as Mondelez, Procter & Gamble, Hindustan Unilever Limited, Coca Cola and Cargill, have their manufacturing plants in the state. Some key players Mondelez India Foods Ltd Procter & Gamble (P&G) Home Products Ltd Dabur India Ltd Hindustan Unilever Ltd A majority of the manufacturing plants are located in industrial areas of the state such as Malanpur, Mandideep, Pithampur and Chhindwara. Procter & Gamble s strategic move of relocating its central warehouse for FMCG products to Bhopal has helped it save annual logistics expenses of around US$ 20 million. Many FMCG companies are now relocating their warehouses to replicate this success. To promote growth in the FMCG sector, the state government has established Gwalior as an FMCG cluster. 53

54 KEY INDUSTRIES FAST MOVING CONSUMER GOODS (2/2) Mondelez India Foods Ltd is part of Mondelēz International, Inc. It operates in five categories chocolate confectionery, beverages, biscuits, gum and candy. Mondelez's key brands in India include Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo. In India, the company started its operations in 1948 and has six factories and four sales offices. Procter & Gamble (P&G) Home Products Ltd P&G Home Products Ltd, one of India's largest consumer goods companies, is a 100 per cent subsidiary of Procter & Gamble Company, US. The company owns some of the reputed brands in the fabric, hair and baby care segments. The company has its manufacturing plant at Mandideep in the Raisen district of Madhya Pradesh. Dabur India Ltd Dabur India Ltd is a leading consumer goods company in India with revenues of US$ 0.4 billion in H1, FY15. The company has two major divisions: consumer care business and international business division. One of the 17 manufacturing plants of the company is located at Katni in Madhya Pradesh. Dabur India Ltd recorded revenues of US$ 1.29 billion in Hindustan Unilever Ltd Hindustan Unilever Ltd (HUL) is a subsidiary of Uniliver and is India's largest consumer goods company with a portfolio of brands in 20 distinct categories. Established in 1930, the company has its manufacturing plant at Chhindwara in Madhya Pradesh. HUL recorded revenues of US$ 5.11 billion in Mondelez India Foods 54

55 KEY INDUSTRIES AGRO-BASED INDUSTRY (1/3) Madhya Pradesh is an agrarian state. Around 74 per cent of the population of the state is directly or indirectly, dependent on agriculture. Of the total gross area under crop cultivation in the state, 54.2 per cent is sown during the kharif season while the other 45.7 per cent is sown during the rabi season. The net cultivable land area is around million hectares. In , the net sown area during Kharif and Rabi season was million hectares and million hectares respectively. The percentage of rain fed and irrigated areas in was 63.5 per cent and 36.5 per cent. In , Madhya Pradesh was one of the leading producers of soybean with a total production of around 5.3 million tonnes. The state is the largest producer of oilseeds; it produced 8.6 million tonnes in , accounting for around per cent of the national production. Madhya Pradesh is one of the leading producers of spices such as ginger, chilli and garlic. Jawaharlal Nehru Krishi Vishwavidyalaya is located in Jabalpur and serves as a centre for teaching and research in agriculture and allied sciences. In , with production of 10.7 million metric tonnes (MMT) of milk, the state was the fourth largest milk producer in India. Dhar, Ujjain, Chhindwara, Jabalpur, Hoshangabad, Guna, Ashok Nagar, Dewas, Indore, Shajapur, Vidisha, Sagar, Ratlam, Sehore, Mandsaur and Khargone are the major districts involved in agriculture and allied industries. The state received the Krishi Karman award from the President in due to its highest production of food grains. Source: Ministry of Agriculture, Farmer Welfare & Agriculture Development Department Madhya Pradesh Solvent Extractors Association of India, TechSci Research 55

56 KEY INDUSTRIES AGRO-BASED INDUSTRY (2/3) Horticulture is an emerging sector in the state. Through the export of aromatic and medicinal plants, the horticulture segment is a potential foreign exchange earner. Over , production of horticultural crops has increased at a CAGR of 9.03 per cent. The state has invested resources into the making of water assets, new plantations, flower gardens and organic farming. Plans are being laid out to set up suitable postharvest facilities like packing houses, cold storage and mobile processing units. Production and area under horticulture Production ('000 MT, LHS) * Area ('000 HA, RHS) Some of the key players Adani Wilmar Ltd Anik Industries Ltd K S Oils Ltd Ruchi Soya Industries Ltd Source: National Horticulture Board, *1st Advanced estimates, TechSci Research 56

57 KEY INDUSTRIES AGRO-BASED INDUSTRY (3/3) Adani Wilmar Ltd (AWL) is a 50:50 joint venture between two global corporations - Adani Group of India and Wilmar International Limited of Singapore. The company has production infrastructure across the country, with a crushing capacity of over 5,750 tonnes per day and a refining capacity of over 9,000 tonnes per day. The company has a production unit in Chhindwara and a packaging plant at Dewas in Madhya Pradesh. FORTUNE, King's, RAAG, Bullet, Fryola and JUBILEE are the brands under which AWL sells its range of edible oils, vanaspati and bakery shortening. It is investing US$ 5 million to set up a new processing facility. Anik Industries Limited has business interests in dairy and milk derivative products, wind power, mining & coal, ferro alloys, real estate and agri commodities. The company has three milk processing units in Madhya Pradesh for manufacturing of dairy products, two at Dewas (capacity of 240,000 litres of milk per day and 400,000 litres of milk per day) and one at Bhopal (capacity of 100,000 litres of milk per day). These units are supported by 11 chilling centres spread across the state, which collect milk from 5,000 villages. The company recorded revenues of US$ million in K S Oils is a leading Indian integrated edible oil company, which produces and markets mustard oil, refined oil and vanaspati. The company has its fully integrated plant at Morena in Madhya Pradesh with a crushing capacity of 1,475 metric tonnes of mustard seeds per day. The plant also has an in-house packaging unit. Ruchi Soya Industries Ltd is one of the major agro-based product manufacturers in India. The product portfolio of the company includes edible oils, soya foods, bakery fat and vanaspati. It is also the largest exporter of soya foods and lecithin from India. The company has a wide presence in Madhya Pradesh with six manufacturing plants located at Mangla, Shujalpur, Guna, Piaparia, Gaderwada and Jabalpur and three depots at Gwalior, Jabalpur and Indore. The company recorded revenues of US$ 5.24 billion in Adani Wilmar Ltd Anik Industries Ltd K S Oils Ltd Ruchi Soya Industries Ltd 57

58 KEY INDUSTRIES TOURISM (1/2) Domestic tourist arrivals (in millions) Madhya Pradesh is blessed with scenic beauty, rich heritage of pilgrim centres, temples and wildlife sanctuaries. The state government has identified the tourism sector as a key growth area. In 2014, domestic tourist inflows stood at million, registering an average growth of per cent between 2008 and In 2014, foreign tourist arrivals were at 0.32 million. The state government has shortlisted 18 noteworthy centres, which draw in large numbers of domestic and foreign tourists for further development. The state government has taken initiatives to promote eco-, wildlife, adventure, leisure, business and pilgrim tourism International tourist arrivals (in millions) The Ministry of Tourism has included Chitrakoot as one of the 35 mega tourist centres sanctioned to be developed. Chitrakoot will be developed as a spiritual and wellness destination Source: Tourism Statistics 2014, Ministry of Tourism, Government of India, TechSci Research 58

59 KEY INDUSTRIES TOURISM (2/2) The state has 382 tourist sites, including world heritage sites. Major places of tourist interest in Madhya Pradesh are as follows: Kanha: The largest wild-life sanctuaries in Asia. Khajuraho: Some of the most famous sculptures in the world. Bhimbetka: The oldest cave paintings in the world. Sanchi: The oldest Buddhist Stupa in the world. Bandhavgarh: The highest population in the country. density of Measures to promote tourism in Madhya Pradesh Promote and market as an attractive tourist destination. Provide basic infrastructure at lesser known tourist locations. Develop eco-friendly and sustainable tourism facilities. Develop and promote eco- and adventure tourism. Invite PPP to convert old palaces into heritage hotels. tiger Bhedaghat: Scenic marble rocks rising up to hundred feet. Source: Annual Plan of Madhya Pradesh, The state has nine national parks and 25 wildlife sanctuaries. Numerous festivals, such as All India Kalidasa Festival, Tansen Samaroh (Gwalior), Lokranjan and Khajuraho Dance Festival (Khajuraho), are celebrated in the state, which attract tourists. 59

60 KEY INDUSTRIES FOREST-BASED INDUSTRIES In 2013, Madhya Pradesh had a forest area of around 77,522 square km, which accounts for nearly per cent of the total area of the state. With a share of about per cent of the total forest area of the country, Madhya Pradesh has the largest area covered by forests among all the states in India. In Madhya Pradesh, the average annual production of tendu leaves is estimated around 2.5 million standard bags, accounting for nearly 25.0 per cent of all tendu leaves produced in India. Tendu leaves, sal seed and kullu gum are nationalised forest produce. Other non-wood forest products are non-nationalised and can be collected and traded freely. Other important forest products popularly traded include Chebulic Myrobalan, Mahua, Sal seeds, Kullu gum and bamboo. In , the state government allocated US$ million to forestry and wildlife, which is same as the previous year s budget. Sale of forest products contributes significantly to the state revenues. Forest products are either sold through auction in commercial depots, or through sale on pre-defined rates at Nistar depots. As of 2015, there are 40 commercial timber depots and 22 industrial bamboo depots in the state. Source: Forest Department, Madhya Pradesh, Trading & Development Co-Op Federation Ltd. 60

61 KEY INDUSTRIES IT AND ITeS Madhya Pradesh has an optical fibre spine of more than 24,000 km that covers 313 formative blocks over 45 districts. The state is home to the country s first Indian Institute of Information Technology and Management (IIITM), which is located in Gwalior. The government has proposed to set up 21 IT SEZs across the state. Five information technology parks, located at Bhopal, Indore (two), Gwalior and Jabalpur, are at various stages of development. Around 20 companies have signed MoUs worth US$ 1.4 billion for investments in the IT sector within the state. IT parks Crystal IT Park (51,097sq m) Indore Hardware and Software Technology Park (200 acres) Bhopal Software Technology Park (100,000 sq ft) Indore IT Park (50 acres) Gwalior IT Park (90 acres) Jabalpur IT projects in Madhya Pradesh IT Park, Gwalior The IT Policy of the state provides a number of incentives to investors in the IT sector. A government society MAP_IT (Madhya Pradesh Agency for Promotion of Information Technology), headed by the Chief Minister and represented by the government and industry, has been established to implement the IT policy and propel the growth of the IT industry in Madhya Pradesh. Hardware & Software Technology Park, Bhopal Software Technology Crystal IT Park, Park, Indore Indore Jabalpur IT Park, Jabalpur Indore is gradually emerging as the IT hub of the state, with exports from its SEZ rising by 1.37 per cent in over the previous year. Source: Maps of India 61

62 KEY INDUSTRIES MINERAL-BASED INDUSTRY (1/4) Madhya Pradesh is one of the key mineral-producing states in India, providing tremendous potential for industrial growth. With 26 major and minor minerals being mined in the state, it ranks fourth in mineral production. The state has rich deposits of coal, limestone and manganese. Bauxite, dolomite, fire clay, granite and marble stones are other mineral resources available. In , mining and quarrying contributed around US$ 904 million to the GSDP of the state. This value reached US$ 1,846 million in Madhya Pradesh, with its 1,045,318 carats of proven diamond reserves, is the sole producer of diamonds in India. Madhya Pradesh is the leading producer of minerals such as pyrophyllite and copper. The state represents 8.38 per cent of the country s coal reserves and has BCM of estimated coal-bed methane reserves. The thickest coal seam (135 m) of Asia is found at the Singrauli coalfield in the Sidhi district of Madhya Pradesh. Major mineral-based industries in the state are cement, thermal power generation, ceramic-products, tiles and refractory. Source: Indian Bureau of Mines 62

63 KEY INDUSTRIES MINERAL-BASED INDUSTRY (2/4) Mineral production* of Madhya Pradesh as a share of India s reserves (per cent) ( ) Diamond % Pyrophyllite 80.55% Copper Ore 62.90% Diaspore 45.10% Manganese Ore Shale Limestone Dolomite Mineral production* in Madhya Pradesh ( 000 MT) 29.82% 15.12% 13.24% 7.95% Coal 75,948 76,055 Bauxite Copper ore 2, , Iron ore 2,115 1,225 Manganese ore Dolomite Fire clay Limestone 36,917 35,536 Diamond (in carat) 37,515 31,988 Source: Monthly Statistics of Mineral Production- March Indian Bureau of Mines, TechSci Research *Excluding atomic & minor minerals 63

64 KEY INDUSTRIES MINERAL-BASED INDUSTRY (3/4) Reserves and production of minerals in Madhya Pradesh Reserves^ (million tonnes) Share of the state in the national reserve^ (per cent) Production (tonnes) Share of the state in the national production (per cent) Diamond** 31, Pyrophyllite , Copper ore ,376, Diaspore , Manganese ore , Dolomite , , ,536, , Name Limestone Shale Source: Statistical Profiles of Minerals , Monthly Statistics of Mineral Production- March Indian Bureau of Mines, TechSci Research **Unit for diamond in thousand carat ^Reserves: Proved and probable as of March

65 KEY INDUSTRIES MINERAL-BASED INDUSTRY (4/4) Hindustan Copper Ltd (HCL) is a vertically integrated copper manufacturing company. In 1982, the company established its Malanjkhand copper project, which has the single-largest copper deposit in the country. The Malanjkhand mine has a copper deposit of 221 million tonnes with 1.3 per cent copper concentration. The company possesses an open-pit mine with a capacity of 2 million tonnes per annum, concentrator plant, tailing disposal system and other auxiliary facilities. The plant contributes around 80.0 per cent of the copper production of the company. HCL s mines and plants are spread across Rajasthan, Jharkhand, Madhya Pradesh and Maharashtra. HCL plans to expand its flagship Malanjkhand mine with an investment of US$ million. The company recorded revenues of US$ million in NMDC is a public sector unit involved in mining of a wide range of minerals such as iron, copper, limestone, dolomite, gypsum, tin, graphite and diamond. The company is the single largest iron ore producer in the country. NMDC is the only organised producer of diamonds in India and produces diamond from its Majhgawan mine at Panna in Madhya Pradesh. The production capacity of the mine is around 84,000 carat per annum. The mine employs around 199 persons. The company recorded revenues of US$ 2.05 billion in Hindustan Copper Ltd NMDC Ltd 65

66 TRADE AND INVESTMENT FACILITATION CORPORATION LIMITED (1/2) TRIFAC, established in 2004, is the state s single window clearance facility. As a nodal agency, it extends customised incentives to mega projects (investment over US$ 4.6 million). TRIFAC is a coordinating interface between entrepreneurs and government agencies and provides effective pre-investment and post-investment services. Source: MP Trade and Investment Facilitation Corporation Ltd TRIFAC - Trade and Investment Facilitation Corporation Limited 66

67 TRADE AND INVESTMENT FACILITATION CORPORATION LIMITED (2/2) TRIFAC activities Description APEX Level Investment Promotion Empowered Committee For project investments over US$ 4.6 million, TRIFAC facilitates obtaining of customised economic package through APEX Level Committee headed by Chief Minister. Project Clearance and Implementation Board Acts as an empowered body to grant in-principle approval to mega projects. Madhya Pradesh Investment Facilitation Act 2008 Acts as member secretary for APEX and State Level Committee, which ensures speedy approvals for various clearances/consents/permissions. Under the MP Investment Facilitation Act 2008, a single form for obtaining all necessary clearances. TRIFAC organises investor meets, conducts road shows and industry interactive sessions to stimulate investments in the state. TRIFAC acts as a nodal agency for executing the MoU process for investment plans related to the industry sector. Delhi-Mumbai Industrial Corridor TRIFAC acts as a nodal agency for executing the project in the state. Industrial Investment Promotion Assistance 2004 TRIFAC acts as a nodal agency for providing industrial investment assistance in the state. Audyogik Kendra Vikas Nigam Limited (AKVN) AKVN is the subsidiary company of MP TRIFAC. Responsible for maintaining a land database meant for setting up industries in the state. Combined application form Investment drive Memorandum of Understanding Land Bank Source: MP Trade and Investment Facilitation Corporation Ltd TRIFAC - Trade and Investment Facilitation Corporation Limited 67

68 KEY APPROVALS REQUIRED (1/2) List of approvals and clearances required Departments to be consulted Prior to setting up the unit Registration DIC for SSI/ SIA for large and medium industries Allotment of land/shed DI/ SIDC/ Infrastructure Corporation/ SSIDC Permission for land use District authorities/ State DI/ Dept. of Town and Country Planning (in case industry is located outside an industrial area) No objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board Approval for construction activity and building plan Town and Country Planning/ Municipal and local authorities/ Chief Inspector of Factories/ Pollution Control Board, Electricity Board No objection certificate Fire Department Provisional Trade Tax registrations Central and State Excise Departments, Sales Tax Department Source: MP Trade & Investment Facilitation Corp. Ltd., TechSci Research Note: SIDC- State Industrial Development Corporation, SSI- Small Scale Industries, SIASecretariat of Industrial Assistance, DIC- District Industrial Center, SSIDC- Small Scale Industrial Development Corporation 68

69 KEY APPROVALS REQUIRED (2/2) List of approvals and clearances required Departments to be consulted Before commencement of production No objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board No objection certificate Fire Department Permanent trade tax registration under Central Sales Tax Act 1956 Registration under Central Sales Tax Act 1956 Central and State Excise Departments, Sales Tax Department After commencement of production/activity Registration Department of Commerce, Industry & Employment 69

70 KEY INVESTMENT PROMOTION OFFICES Agency Description The department is responsible for industrialisation in the state through development of small, medium and large scale industries and new investments. The department is also responsible for creation of basic infrastructure and development of industrial parks. The department has several support institutions such as Madhya Pradesh State Industrial Development Corporation (MPSIDC) and Audhyogik Kendra Vikas Nigam (AKVN) in six cities. District Trade and Industries Centres are district-level offices of the Department of Commerce, Industry and Employment of the state government. These centres are empowered to provide clearance for setting up industrial units. Madhya Pradesh State Industrial Development Corporation (MPSIDC) is a support institution of Department of Commerce, Industry and Employment of the state government. The organisation had the mandate to promote the state as an industrial destination and help companies set up and expand industries in Madhya Pradesh. Department of Commerce, Industry & Employment District Trade and Industries Centre Madhya Pradesh State Industrial Development Corporation 70

71 CONTACT LIST Agency Contact information Department of Commerce, Industry & Employment Mantralaya, Vallabh Bhawan Bhopal Madhya Pradesh, India Phone: Website: Directorate of Industries Directorate of Industries Vindhyachal Bhawan Bhopal Madhya Pradesh, India Phone: , indsbpl@mp.nic.in Website: Madhya Pradesh State Industrial Development Corporation Limited AVN Towers 192 Zone-1, M.P. Nagar Bhopal , Madhya Pradesh Phone: Fax: admin@mpsidc.org, mpsidc@sancharnet.in Website: 71

72 COST OF DOING BUSINESS IN Cost parameter Cost estimate Source Cost of industrial land (per sq ft)* US$ Industry sources Hotel cost per room per night (four-star, five-star hotel)* US$ Leading hotels in the state Residential rent (per month for 1,200 sq ft apartment)* US$ Industry sources Commercial rent (per sq ft per month)* US$ Industry sources Power cost (per kwh)* Industrial: US cents Madhya Pradesh Electricity Regulatory Commission Labour cost (minimum wages per day) US$ 3.73 Labour Department, Madhya Pradesh Government *Source: PwC Research 72

73 STATE ACTS & POLICIES (1/3) Information Technology Investment Policy 2014 Objectives To increase the flow of investments in the state in the information technology industry. To maximise direct and indirect employment generation opportunities for the youth in the state. Read more Tourism Policy 2010 (As amended in 2014) Objectives To promote balanced and sustainable tourism, which enables socio-economic development and establishes Madhya Pradesh as a destination that provides a complete tourism experience. Aims at providing an effective regulatory mechanism for sustainable tourism and developing the sector through PPP. Read more Industrial Promotion Policy 2014 Objectives To improve investor facilitation and ensure rapid economic development and employment opportunities through sustainable use of available resources. Promotes SMEs and ensures PPP initiatives for industrialisation. Envisages an industry-friendly administration and attracting investments by developing quality infrastructure. Read more 73

74 STATE ACTS & POLICIES (2/3) Madhya Pradesh Investment Facilitation Act 2008 Objectives Ensures quick and timely disposal of investors applications at various levels. To strengthen and make the single-window system more effective. Read more IT Policy 2006 Objective To improve the life of common man by leveraging the strength of e-governance and attracting investments in the sector by providing a conducive environment and highly skilled manpower to transform the state from a resource-based economy to a knowledge-based economy. Read more Biotechnology Policy 2003 Objectives Conservation of the state s biodiversity and sustainable use of biotechnology resources. Production of high-yielding, draught and pest-resistant seeds for agriculture and horticulture crops suited to different agro-climatic zones. Improvement of quality of livestock and poultry, especially the breeds indigenous to the state. Afforestation as well as production of cost-effective drugs to treat common diseases of the tropical and sub-tropical regions of the country. Read more 74

75 STATE ACTS & POLICIES (3/3) Special Economic Zone Policy 2000 Objectives To promote development of SEZs in the state. To increase employment opportunities in the state. Read more Analog Semiconductor Fabrication Investment Policy 2015 Objectives To increase the flow of investments in the field of electronics manufacturing in the state. Maximising employment generation opportunities and promoting establishment of FAB units. Read more BPO Policy 2014 Objectives To boost the flow of investments in the BPO/BPM industry along with promoting establishment of IT/ITeS units in the urban as well as rural areas in the state. To generate and maximise employment opportunities for youth as well as development and infrastructure opportunities in smaller cities in the state. Read more Source: MP Trade & Investment Facilitation Corp. Ltd., 75

76 CONFERENCES/SUMMITS FOR Summit Venue of Summit Date International Conference on Recent Advances in Engineering and Technology Bhopal 16th August 2015 International Conference on Industrial Electronics and Electrical Engineering Bhopal 22th August 2015 International Conference on Current Research in Engineering and Technology Bhopal 30th August 2015 International Conference Electronics and Computer Science Bhopal 6th September 2015 IEEE International Conference on Computer Communication and Control Indore 10th September 2015 Bhopal 27th September 2015 Khajuraho 3rd December 2015 Jabalpur 4th February 2016 NIER-International Conference on Current Research in Engineering and Technology 16th Annual National Conference of Indian Association of Private Psychiatry 2015 International Conference on Rural Development (ICRD) Source: India Conference Alerts 76

77 ANNEXURE Average exchange rates Year INR equivalent of one US$ Q Source: RBI 77

78 DISCLAIMER India Brand Equity Foundation ( IBEF ) engaged TechSci to prepare this presentation and the same has been prepared by TechSci in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of TechSci and IBEF s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation. 78