SANCHI STUPA IN SANCHI, THE LAND OF DIAMONDS July 2018
Table of Content Executive Summary......3 Introduction.........4 Economic Snapshot..9 Physical Infrastructure....14 Social Infrastructure.... 21 Industrial Infrastructure...24 Key Sectors... 26 Key Procedures And Policies... 33 Annexure... 40
EXECUTIVE SUMMARY Strong economy GSDP of Madhya Pradesh grew at a Compound Annual Growth Rate (CAGR) of 14.39 per cent* between FY12 and FY18. The state is rich in natural resources: fuels, minerals, agriculture & biodiversity. Rich in natural resources Madhya Pradesh has ample reserves of coal and coal-bed methane (8.38 per cent of India s total coal reserves and 218.04 BCM of methane). The state has the largest reserves of diamond and copper in India. Madhya Pradesh has significant reserves of limestone, manganese and dolomite. Potential for tourism Madhya Pradesh boasts of rich ancient cultural & religious heritage. Due to a thick forest cover, the state has immense potential for wild life, adventure & 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. Infrastructure support 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 with an installed solar capacity of 1.21 GW as of December 2017. Source: *in Rs terms Source: Directorate of Economics and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas, MNRE 3
INTRODUCTION
ADVANTAGE 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 favorably 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 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. Advantage Madhya Pradesh Attractive investment avenues With around 33 per cent of the region under forests, Madhya Pradesh has an enormous potential for drug, wood & agro-based commercial enterprises. Ideal soil & climatic conditions have made it a primary producer of coarse cereals, oilseeds & soybean in India. The cluster-based advancement methodology promotes investments in automotive, textiles & biotechnology. Plentiful limestone & coal reserves give development avenues for the cement industry. A rich cultural heritage, scenic beauty & wildlife sanctuaries offer a promising tourism industry. Indore is all set to be the new IT capital with TCS & Infosys opening their offices. Policy and infrastructure support Madhya Pradesh offers distinctive monetary & strategy/policy incentives for organisations under the Industrial Promotion Policy-2010 & Action Plan, other than strategies/ policies for IT, biotechnology, tourism & SEZs. To pull in investors and promote entrepreneurs, the state government has selected TRIFAC, an agency that encourages a single window system, for speedy approvals of different clearances & consents. The state government has made some well-planned infrastructure investments for roads & railroad systems. Government offers various subsidies under Industrial Investment Promotion Assistance (IIPA) under 2014 Schemes for investment in development of road, electrification, water, industrial parks, etc. 1 From Bhopal 5
VISION 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 Make the state a world class tourist destination Promote religious, adventure & heritage tourism & attract private investment Investment promotion Tourism Transport Agriculture Vision Skill development Infrastructure Housing Improve civic infrastructure, including public & household sanitation facilities Expand availability of affordable housing Environment Promote social & agro forestry Revitalise ground water resources 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 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 Capital Madhya Pradesh 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 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. Sex ratio (females per 1,000 males) 931 Literacy rate (per cent) 70.6 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. Source: Government of Madhya Pradesh website, National Informatics Centre Madhya Pradesh 7
IN FIGURES Madhya Pradesh s Contribution to Indian Economy (2017-18) Parameter GSDP as a percentage of all states GSDP Madhya Pradesh India 4.22 100.00 GSDP growth rate (%) 10.61 9.80 Per capita GSDP (US$) 1,372.41 1,975.05 Social Indicators Parameter Madhya Pradesh India Literacy rate (%) 70.6 73.0 Birth rate (per 1,000 population) 25.1 20.4 Physical Infrastructure in Madhya Pradesh Parameter Madhya Pradesh India Installed power capacity (MW) (June 2018)* Wireless subscribers (No) (as of April 2018) Internet subscribers (Mn) (as of December 2017) National highway length (km) 20,321.87 343,898.39 71,595,909 1,125,070,231 25.89 493.96 8,053 122,432 Airports (No) 5 125 Industrial Infrastructure Investments (as of December 2017) Parameter Madhya Pradesh India Operational PPP projects (No) 164 1,529 Operational SEZs (No) 4 221 Parameter Cumulative FDI equity inflows since April 2000 (US$ billion) Madhya Pradesh India 1.400 376.969 Note: PPP Public Private Partnership, SEZ Special Economic Zone, GSDP, per capita GSDP figures are taken at current prices, exchange rate used is average of 2017-18 i.e. 64.45 8
ECONOMIC SNAPSHOT
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 3.16 65.81 69.96 3.81 72.64 4.39 898.48 43082.00 941.29 51253.00 78.52 4.80 963.27 58278.00 81.03 5.30 1026.10 62746.00 1043.69 68320.00 95.28 6.39 1209.42 81140.00 109.70 7.07 1372.41 88452.00 ECONOMIC SNAPSHOT GSDP GSDP of Madhya Pradesh at current prices Per capita GSDP of Madhya Pradesh at current prices 120 CAGR (in Rs) 14.39 per cent 8 1600 CAGR (in Rs) 12.74 per cent 100000 100 80 7 6 5 1400 1200 1000 90000 80000 70000 60000 60 4 800 50000 40 20 3 2 1 600 400 200 40000 30000 20000 10000 0 0 0 0 US$ billion Rs trillion US$ Rs At current prices, the Gross State Domestic Product (GSDP) of Madhya Pradesh for 2017-18 stood at Rs 7.07 trillion (US$ 109.70 billion). Between FY12 and FY18, GSDP of the state grew at a CAGR of 14.39 per cent. The state s per capita GSDP in 2017-18 was Rs 88,452 (US$ 1,372.41) in comparison with Rs 43,082 (US$ 898.48) in 2011-12. Per capita NSDP in the state increased at a CAGR of 12.74 per cent between FY12 and FY18. Source: Ministry of Statistics and Programme Implementation 10
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2.82 38551.00 3.34 58.89 61.33 64.98 3.93 803.98 825.18 44931.00 861.64 52129.00 70.19 4.29 917.30 56093.00 72.59 4.75 934.98 61204.00 86.03 5.77 1092.09 73268.00 1239.83 79907.00 99.11 6.39 ECONOMIC SNAPSHOT NSDP NSDP of Madhya Pradesh at current prices Per capita NSDP of Madhya Pradesh at current prices 100.00 CAGR (in Rs) 14.57 per cent 7.00 1400.00 CAGR (in Rs) 12.92 per cent 90000 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 6.00 5.00 4.00 3.00 2.00 1.00 1200.00 1000.00 800.00 600.00 400.00 200.00 80000 70000 60000 50000 40000 30000 20000 10000 0.00 0.00 0.00 0 US$ billion Rs trillion US$ Rs The Net State Domestic Product (NSDP) of Madhya Pradesh was about Rs 6.39 trillion (US$ 99.11 billion) in 2017-18. Between FY12 and FY18, state s NSDP grew at a CAGR of about 14.57 per cent. The state s per capita NSDP in 2017-18 was Rs 79,907 (US$ 1,239.83) comparison with Rs 38,551.00 (US$ 803.98) in 2011-12. Per capita GSDP of the state increased at a CAGR of 12.92 per cent between FY12 and FY18. Source: Ministry of Statistics and Programme Implementation 11
ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSVA In 2017-18, the primary sector contributed 42.89 per cent to the state s GSVA at current prices, followed by tertiary sector with a contribution of 36.29 per cent & secondary sector contributing 20.82 per cent. At a CAGR of 18.35 per cent, the primary sector witnessed the fastest growth among the three sectors, between FY12 and FY18. The tertiary sector expanded at a CAGR of 12.38 per cent between FY12 and FY18. Growth has been driven by trade, hotels, real estate, finance, insurance, transport, communications & other services. Visakhapatnam GVA composition port traffic by (million sector tonnes) 39.06% CAGR* 36.29% 27.09% 12.38% 20.82% The secondary sector expanded at a CAGR of 8.89 per cent between FY12 and FY18 driven by manufacturing, electricity, gas & water supply & construction sectors. 33.85% 8.89% 42.89% 18.35% 2011-12 2017-18 Primary Sector Secondary Sector Tertiary Sector Note: CAGR* is in Rs terms Source: Ministry of Statistics and Programme Implementation 12
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows*, from April 2000 to March 2018, totaled to US$ 1.40 billion. The state will be holding the sixth edition of its Global Investors Summit in February 2019. At the previous edition, the state witnessed expression of interest s worth Rs 5,62,887 crore (US$ 83.75 billion). Investment intentions worth US$ 2.18 billion were filed in the state during 2018*. 2000 1500 1000 500 FDI Visakhapatnam Inflows in Madhya port traffic Pradesh^ (million (US$ tonnes) million) Cumulative from April 2000 654 777 123 997 220 1,115 118 1,216 101 1,296 80 76 1,372 1,400 28 0 451 Annual FDI Inflow Investment intentions in terms of IEMs filed, LOIs / DILs issued Year Number Proposed Investments (US$ billion) 2016 85 2.40 2017 76 1.10 2018* 52 2.18 Note: ^Including Chattissgarh, *up to May 2018 Source: Department Of Industrial Policy & Promotion 13
PHYSICAL INFRASTRUCTURE
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18* 7893.72 2926.66 2754.18 5180.92 4453.23 5081.97 3960.56 3006.27 10398.01 9163.26 PHYSICAL INFRASTRUCTURE ROADS Madhya Pradesh has national highways measuring 7,854* km. The state also has 10,859 km of state highways. Under Prime Minister Gram Sadak Yojana, 3,960.561 km of roads have been completed in the state as of February 2018. For the construction of rural roads in the state, allocation of US$ 42.48 million has been proposed by the state government in Budget 2018-19. Road type Road length (km) (January 2018) National highways 8,053* State highways 11,389 Major district roads 22,129 Village roads 23,395 Road length 64,719 As per budget 2018-19, provision of US$ 77.23 million under Mukhyamantri Gram Sadak Yojana & that of US$ 30.89 million for State Rural Road Connectivity Scheme, have been made. 12000 10000 Road Construction under PMGSY (in km) 8000 6000 4000 2000 0 Source: NHAI, Ministry of Road Transport & Highways, State Budget 2016-17, * - as of February 2018 15
PHYSICAL INFRASTRUCTURE RAILWAYS 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. Source: Maps of India Government of India has undertaken redevelopment of Habibganj Railways station in Bhopal. The station is being redeveloped at an estimated cost of Rs 100 crore (US$ 15.52 million) and the total value of development (including commercial development) has been estimated at Rs 450 crore (US$ 698.21 million). The work is expected to be completed by December 2018. 16
PHYSICAL INFRASTRUCTURE AIRPORTS Madhya Pradesh has 5 operating airports at Jabalpur, Bhopal, Indore, Gwalior & Khajuraho. Indore and Bhopal airports are the busiest airports in the state. During 2017-2018, passenger traffic at Indore airport reached 2,269,971 passengers with overall aircraft movement of 18,692 aircrafts. For the same period, passenger traffic at Bhopal airport was 722,243 passengers with overall aircraft movement of 7,205 aircrafts. Passenger traffic at Indore and Bhopal airport stood at 356,792 and 110,380 during Apr-May 2018. Both Indore and Bhopal airports have strong cargo handling capacity. During 2017-2018, Indore airport handled 10,851 tonnes of cargo, whereas Bhopal airport handled 1,153 tonnes of cargo. Passenger traffic Airport 2016-17 2017-18 2018-19* Indore 1,784,073 2,269,971 356,792 Bhopal 676,015 722,243 110,380 Aircraft movements Airport 2016-17 2017-18 2018-19* Indore 14,396 18,692 2,820 Bhopal 6,949 7,205 1,185 Freight traffic (in tonnes) Airport 2016-17 2017-18 2018-19* Indore 7,668 10,851 1,594 Bhopal 904 1,153 161 Note: *up to May 2018 Source: Airports Authority of India 17
8,381.34 8,779.90 10,631.65 13,846.60 15,876.80 18,813.65 19,618.28 20,321.87 PHYSICAL INFRASTRUCTURE POWER Installed power capacity (MW) Break-up of installed capacity by source of power generation (2017-18) 25,000 1.34% 20,000 19.78% Thermal Power 15,000 Hydropower 10,000 15.86% Renewable Power 5,000 63.01% Nuclear Power 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 As of June 2018, Madhya Pradesh had total installed power generation capacity of 20,321.87 MW, comprising 5,867.62 MW under state utilities, 5,144.41 MW under central utilities and 9,309.84 MW under private sector. Of the total installed power generation capacity, 12,805.41 MW was contributed by thermal power, 3,223.66 MW was contributed by hydropower, 273.00 MW was contributed by nuclear power & renewable power contributed 4,019.80 MW. The total budget allocation for the energy sector in the state is estimated to be US$ 2.75 billion during 2018-19. In December 2017, foundation stone was laid for the world s largest ultra mega solar power plant at Gurh in Madhya Pradesh. The project will entail an investment of Rs 4,500 crore (US$ 695.09 million), be spread across 1,600 hectares of land and generate 750 MW of electricity. As of July 2018, the project has started operations and will be supplying power to Delhi Metro. Source: Central Electricity Authority 18
PHYSICAL INFRASTRUCTURE TELECOM Performance status of Bharat Net project (as of April 22, 2018) Telecom infrastructure (as of April 2018) Total GPs 22,946 Wireless subscribers 71,595,909 Cable laid (kms.) 38,243 Wire-line subscribers 939,846 GPs for which cable laid 12,464 Internet subscribers* 25,890,000 GPs connected^ 12,336 Teledensity (in per cent) 66.99 Service ready GPs^ 11,137 Mobile Number Portability requests 25,032,541 According to Telecom Regulatory Authority of India (TRAI), Madhya Pradesh (including Chhattisgarh) had nearly 71.60 million wireless subscribers and 0.94 million wireline subscribers, as of April 2018. Internet subscribers in the state reached 25.89 million, as of March 2018. As of April 2018, tele-density (telephone connections per 100 persons) in Madhya Pradesh was 66.99 per cent. As of end of April 2018, 25,032,541 people have submitted requests for mobile number portability in the state. The first phase of the Bharat Net project has been completed. The second phase is being undertaken by BSNL and is expected to be completed by March 2019. Note: ^ - as of March 25, 2018, *As of March 2018 Source: Telecom Regulatory Authority of India, Department of Telecommunications, *including Chhattisgarh 19
PHYSICAL INFRASTRUCTURE URBAN In State Budget 2018-19, an allocation of Rs 700 crore (US$ 108.12 million) was made for the Smart Cities Mission. Seven cities of the state have been selected for Government of India s Smart Cities Mission. Also, the state is home to 34 cities which have been chosen for AMRUT Mission. Smart cities in Madhya Pradesh Cities Population Literacy rate Bhopal 2,371,061 80.37% Indore 3,276,697 80.87% Gwalior 2,032,036 76.65% Ujjain 1,986,864 72.34% Jabalpur 2,463,289 81.07% Sagar 2,378,458 76.46% Satna 2,228,935 72.26% Source: Bhopal Municipal Corporation, Ministry of Urban Development, Census 2011 20
SOCIAL INFRASTRCUTURE
SOCIAL INFRASTRUCTURE EDUCATION Madhya Pradesh had a literacy rate of 70.6 per cent; the male literacy rate is 80.5 per cent and the female literacy rate is 60.0 per cent. As per the budget 2018-19, the government proposed an allocation of US$ 3,355.58 million & US$ 346.77 million for the development of school education & higher education in the state. Under Sarva Shiksha Abhiyan, allocation of US$ 480.23 million was proposed by the state government during 2018-19. In the budget 2018-19, the government proposed an allocation of US$ 32.44 million under skill development scheme (Asian Development Bank projects). 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 (per cent) Total 70.6 Male 80.5 Female 60.0 Educational institutions (as of September 2017) Government Primary schools 83,890 Total high schools (including private) 7,882 Total higher secondary schools (including private) 9,074 Engineering & architecture colleges 180 MCA 49 MBA 164 B Pharma/D Pharma 100 Diploma (Engineering) 149 Source: AICTE, Directorate of Technical Education, Madhya Pradesh, Higher Education Department- Government colleges of Madhya Pradesh, Madhya Pradesh Education Portal, National Health Portal, Aranca Research 22
SOCIAL INFRASTRUCTURE HEALTH Health institutions (July 11, 2018) Health indicators of Madhya Pradesh Sub Centres 11,623 Primary Health Centres 1,460 Community Health Centres 394 Sub District Hospitals 85 District Hospitals 52 Birth rate 1 25.1 Death rate 1 7.1 Infant mortality rate 2 47 Life expectancy at birth (years) Male (2011-15) 64.5 Female (2011-15) 65.3 As of July 11, 2018, the healthcare services network of Madhya Pradesh comprised 52 district hospitals, 394 community health centres, 1,460 primary health centres and 11,623 sub-health centres. The state government proposed an allocation of US$ 878.78 million for the development of Public Health And Family Welfare Department in the state, during 2018-19. Under Public Health Engineering, an allocation of US$ 461.26 million was made by the state government, as per the State Budget 2018-19. Source: 1 Per thousand persons, 2 Per thousand live births Source: Ministry of Health & Family Welfare, Government of India, Sample Registration System (SRS) Bulletin 23
INDUSTRIAL INFRASTRUCTURE
INDUSTRIAL INFRASTRUCTURE 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 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). Work on development of infrastructure in 22 industrial units is underway with an investment of Rs 1,820 crore (US$ 281.12 million). The works is expected to be completed by December 2018. Operational SEZs in Madhya Pradesh (As of December 2017) Name of SEZ Industry Location Crystal IT Park IT/ITeS Indore Infosys Ltd IT Indore Impetus Infotech IT/ITeS Indore The state is home to three operational SEZs, five notified SEZs and ten formally approved SEZs. 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. Note: 2018* - up to March 2018 Source: MP Trade & Investment Facilitation Corp. Ltd, Department of Industrial Policy and Promotion 25
KEY SECTORS Agriculture and Allied Industries Textiles Tourism Mineral-based Industry
KEY SECTORS AGRICULTURE AND ALLIED INDUSTRIES Agriculture is the main source of livelihood for the people of the Madhya Pradesh. In 2017-18, the state produced 42.14 million metric tonnes of foodgrains. Wheat, soyabean, gram, sugarcane, rice, maize, cotton, rapeseed, mustard & arhar are the major crops of the state. In 2017-18, total pulses production in the state stood at around 9.17 million tonnes. US$ 1,433.26 million were allocated to farmers welfare and agriculture development in state budget 2018-19. Crop Annual production 2017-18 ( 000 MT) Rice* 7,305.00 Maize* 4,680.00 Wheat* 18,999.00 Food grains* 42,136.00 Pulses* 9,169.00 Oilseeds* 6,936.00 Sugarcane (in the form of jaggery)* 543.00 Cotton*^ 2,859.00 Fruits # 7,004.95 Vegetables # 18,208.79 Aromatics and Medicinal # 507.09 Spices # 1,083.28 Note: *Estimated, # as per first advance estimates, ^in 170 kg bales Source: MP State Facts Profile Department of Agriculture and Cooperation, National Horticulture Board, MP Economic Survey 2017-18, Aranca Research 27
1,236.10 111.00 105.00 1,929.00 2,148.00 195.00 2,838.00 2,859.00 248.00 257.00 KEY SECTORS TEXTILES (1/2) Cotton production (in MT) in Madhya Pradesh^ Silk production in Madhya Pradesh (in MT) 3000.00 300.0 2500.00 250.0 2000.00 200.0 1500.00 150.0 1000.00 100.0 500.00 50.0 0.00 FY14 FY15 FY16 FY17 FY18 0.0 FY14 FY15 FY16 FY17 FY18 Madhya Pradesh is one of the major cotton producing states of India. In 2017-18, cotton production in the state reached 2,859 million metric tonnes^. An apparel park is located in the Indore SEZ & spreads over 133.38 acres of land. The project is implemented by M.P. Audyogik Kendra Vikas Nigam (Indore) Ltd. To attract investments into the sector, the government has provided an interest subsidy for 5 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 per cent assistance in plant & machinery for 8 years under Industrial Investment Promotion Assistance Scheme. During 2017-18, silk production in the state stood at 105 million metric tonnes. Note: ^in bales of 170 kgs each, MT Metric Tonne, FY18* - up to November 2017 Source: The Cotton Corporation of India Ltd, 1 Projected, As per Cotton Advisory Board 28
KEY INDUSTRIES TEXTILES (2/2) Key players in textiles industry Trident Limited Trident Limited, the flagship company of Trident Group, is one of the largest integrated home textiles manufacturers over the world. The company has a bed linen manufacturing plant in Budni, Madhya Pradesh. The facility has capacity of 43.2 million metres per annum and is home to 500 looms. Also, the world s largest standalone terry towel manufacturing facility resides at the plant. Grasim Industries Ltd 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. Vardhman Textiles Ltd 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. Raymond Ltd 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. 29
38.08 44.12 0.23 0.20 13.89 22.09 23.11 53.20 63.11 63.61 58.94 0.25 0.25 77.98 0.27 0.28 0.28 0.26 0.32 0.36 0.42 150.49 KEY SECTORS TOURISM Foreign tourist arrivals (in millions) Domestic tourist visits (in millions) 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 160.00 140.00 120.00 100.00 80.00 60.00 40.00 20.00 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* Madhya Pradesh is blessed with scenic beauty, rich heritage of pilgrim centres, temples & wildlife sanctuaries. During Jan-Sept 2017, foreign tourist arrivals in the state were approximately 0.26 million while domestic tourist visits were 58.49 million. As per budget 2018-19, the state government proposed an allocation of US$ 36.84 million for the development of the state s tourism department. Major places of tourist interest in Madhya Pradesh are as follows: Kanha: One of the largest wild-life sanctuaries in Asia. Khajuraho: Some of the most famous sculptures in the world. Bhimbetka: The oldest cave paintings in the world. Sanchi: The oldest Buddhist Stupa in the world. Bandhavgarh: The highest density of tiger population in the country. Bhedaghat: Scenic marble rocks rising up to 100 feet. Note: *up to September 2017 Source: MP economic survey 2017-18 30
KEY SECTORS MINERAL-BASED INDUSTRY (1/2) Madhya Pradesh is one of the key mineral-producing states in India, providing tremendous potential for industrial growth. The state has rich deposits of coal, limestone and manganese. Bauxite, dolomite, fire clay, granite and marble stones are other mineral resources available. Major mineral-based industries in the state are cement, thermal power generation, ceramic-products, tiles and refractory. The state is also the sole diamond producing state in the country. Diamond production in the state reached 31,648 carats during Apr 2017-Jan 2018. Mineral production in Madhya Pradesh ( 000 MT) Mineral 2016-17 2017-18 (till January 2018) Coal 108.55 92.22 Bauxite 658.38 484.53 Copper ore 2,415.33 1,871.79 Copper conc. 68.19 60.97 Iron ore 1.73 1.70 Manganese ore 648.13 620.36 Phosphorite 68.80 98.30 Diamond (in carat) 36,516 31,648 Limestone 35,483 34,855 Source: Indian Bureau of Mines 31
KEY INDUSTRIES MINERAL-BASED INDUSTRY (2/2) Hindustan Copper Ltd Hindustan Copper Ltd (HCL) is a vertically integrated copper manufacturing company. In 1982, the company established its Malanjkhand copper project, which has the single-largest copper deposit in the country. The Malanjkhand mine has a copper deposit of 221 million tonnes with 1.3 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. 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. NMDC Ltd 32
KEY PROCEDURES AND POLICIES
KEY APPROVALS REQUIRED List of approvals and clearances required Departments to be consulted Prior to setting up the unit Registration Allotment of land/shed Permission for land use No objection certificate under Water and Air Act Approval for construction activity and building plan No objection certificate Provisional Trade Tax registrations DIC for SSI/ SIA for large and medium industries DI/ SIDC/ Infrastructure Corporation/ SSIDC District authorities/ State DI/ Dept. of Town and Country Planning (in case industry is located outside an industrial area) Madhya Pradesh Pollution Control Board Town and Country Planning/ Municipal and local authorities/ Chief Inspector of Factories/ Pollution Control Board, Electricity Board Fire Department Central and State Excise Departments, Sales Tax Department Before commencement of production No objection certificate under Water and Air Act No objection certificate Permanent trade tax registration under Central Sales Tax Act 1956 Registration under Central Sales Tax Act 1956 Madhya Pradesh Pollution Control Board Fire Department Central and State Excise Departments, Sales Tax Department After commencement of production/activity Registration Department of Commerce, Industry & Employment Note: SIDC- State Industrial Development Corporation, SSI- Small Scale Industries, SIA- Secretariat of Industrial Assistance, DIC- District Industrial Center, Source: MP Trade & Investment Facilitation Corp. Ltd., Aranca Research SSIDC- Small Scale Industrial Development Corporation 34
KEY INVESTMENT PROMOTION OFFICES Agency Department of Commerce, Industry & Employment 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 Centre 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 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. 35
CONTACT LIST Agency Department of Commerce, Industry & Employment Directorate of Industries Madhya Pradesh State Industrial Development Corporation Limited Contact information Mantralaya, Vallabh Bhawan Bhopal - 462 004 Madhya Pradesh, India Phone: 91-755-2441061 Website: www.mpindustry.org Directorate of Industries Vindhyachal Bhawan Bhopal Madhya Pradesh, India Phone: 91-755-2677988, 2677966 Email: indsbpl@mp.nic.in Website: www.mpindustry.org AVN Towers 192 Zone-1, M.P. Nagar Bhopal-462 011, Madhya Pradesh Phone: 91-755 - 427 0370 Fax: 91-755- 427 0280 E-mail: admin@mpsidc.org, mpsidc@sancharnet.in Website: www.mpsidc.org 36
COST OF DOING BUSINESS IN Cost parameter Cost estimate Source Cost of industrial land (per sq. ft.) US$ 4.8-28.7 Industry sources Hotel cost per room per night (four-star, five-star hotel) Residential rent (for a 2,000 sq ft house, per month) Commercial rent (per sq ft per month) Power cost (per kwh) US$ 76.6-95.7 US$ 268-335 US$ 0.7-3.2 Industrial: 8-12.4 US cents Leading hotels in the state Industry sources Industry sources Madhya Pradesh Electricity Regulatory Commission Labour cost (minimum wages per day) US$ 3.73 Labour Department, Madhya Pradesh Government Source: Madhya Pradesh State Portal, PwC Research 37
STATE ACTS & POLICIES (1/2) Objectives Information Technology Investment Policy 2014 Tourism Policy 2010 (As amended in 2014) Industrial Promotion Policy 2014 To facilitate the growth of the IT sector in the state. To accelerate the use of information technology in the government at all possible levels to improve efficiency, transparency, accountability and increased productivity. Read more 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 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 Madhya Pradesh Investment Facilitation Act 2008 Ensures quick and timely disposal of investors applications at various levels. To strengthen & make the single-window system more effective. Read more IT Policy 2006 To improve the life of common man by leveraging the strength of e-governance & attracting investments in the sector by providing a conducive environment & highly skilled manpower to transform the state from a resourcebased economy to a knowledge-based economy. Read more 38
STATE ACTS & POLICIES (2/2) Objectives Analog Semiconductor Fabrication Investment Policy 2015 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. BPO Policy 2014 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. Read more To generate and maximise employment opportunities for youth as well as development and infrastructure opportunities in smaller cities in the state. Read more Conservation of the state s biodiversity & sustainable use of biotechnology resources. Biotechnology Policy 2003 Production of high-yielding, draught and pest-resistant seeds for agriculture & horticulture crops suited to different agro-climatic zones. Read more Improvement of quality of livestock & poultry, especially the breeds indigenous to the state. Afforestation as well as production of cost-effective drugs to treat common diseases of the tropical & sub-tropical regions of the country. Special Economic Zone Policy 2000 To promote development of SEZs in the state. To increase employment opportunities in the state. Read more 39
ANNEXURE
ANNEXURE (1/2) - SOURCES Data Sources GSDP (state) Per capita GSDP figures Per Capita GSDP (India) Ministry of Statistics and Programme Implementation Ministry of Statistics and Programme Implementation Second Advance Estimates of National Income, Ministry of Statistics and Programme Implementation Installed power capacity (MW) Central Electricity Authority, as of June 2018 Wireless subscribers (No) Telecom Regulatory Authority of India, as of April 2018 Internet subscribers (Mn) Telecom Regulatory Authority of India, as of March 2018 National highway length (km) Airports (No) NHAI, Roads and Building Department-Government of India Airports Authority of India Literacy rate (%) Census 2011 Birth rate (per 1,000 population) Census 2011 Cumulative FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to March 2018 Operational PPP projects (No) Operational SEZs (No) DEA, Ministry of Finance, Government of India Notified as of February 2018, Ministry of Commerce & Industry, Department of Commerce, February 2018 41
ANNEXURE (2/2) - EXCHANGE RATES Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year) Year INR INR Equivalent of one US$ Year INR Equivalent of one US$ 2004 05 44.95 2005 06 44.28 2006 07 45.29 2007 08 40.24 2008 09 45.91 2009 10 47.42 2010 11 45.58 2011 12 47.95 2012 13 54.45 2013 14 60.50 2014-15 61.15 2015-16 65.46 2016-17 67.09 2017-18 64.45 Q1 2018-19 67.04 2005 44.11 2006 45.33 2007 41.29 2008 43.42 2009 48.35 2010 45.74 2011 46.67 2012 53.49 2013 58.63 2014 61.03 2015 64.15 2016 67.21 2017 65.12 Source: Reserve Bank of India, Average for the year 42
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