madhya pradesh - ibef · 2016-02-22 · 4 •madhya pradesh is located in central india.the state...

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MADHYA PRADESHNovember 2010

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Investment climate of a state is determined by a mix of factors

Investment climate of a state

Resources/Inputs

Incentives to industryPhysical and social

infrastructure

Regulatory framework

• Skilled and cost-effective labour

• Labour market flexibility

• Labour relations

• Availability of raw materials and natural

resources

• Tax incentives and exemptions

• Investment subsidies and other incentives

• Availability of finance at cost-effective terms

• Incentives for foreign direct investment (FDI)

• Profitability of the industry

• Procedures for entry and exit of firms

• Industrial regulation, labour regulation, other

government regulations

• Certainty about rules and regulations

• Security, law and order situation

• Condition of physical infrastructure such as

power, water, roads, etc.

• Information infrastructure such as telecom, IT,

etc.

• Social infrastructure such as educational and

medical facilities

MADHYA PRADESH November 2010

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Contents

Advantage Madhya Pradesh

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Madhya Pradesh


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• Madhya Pradesh is located in central India. The state covers area of 308,000 sq km and has population of around 60.3 million.

• Until November 2000, Madhya Pradesh was the largest state in India, when the state of Chhattisgarh was carved out of it for ease of administering a large state.

• The state, now, has 50 districts. Its administrative capital is Bhopal and its largest city is Indore. Other key cities are Gwalior, Jabalpur and Ujjain.

• Madhya Pradesh has two major rivers flowing through it: the Narmada and the Tapi.

Madhya Pradesh – State profile … (1/2)

Source: Maps of India

Madhya Pradesh November 2010

ADVANTAGE MADHYA PRADESH

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• There are 11 agro-climatic conditions and a variety of soils available in the state to support cultivation of a wide range of crops.

• Around 31 per cent of the total area of the state is forest land which is over 12 per cent of the total forest area of India.

• The most commonly spoken language of the state is Hindi. English and Marathi are the other languages used.

Madhya Pradesh – State profile … (2/2)




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Central location of the state

Policy incentive

Being centrally located, companies in the state have access

to key consumer markets and major cities such as Delhi

(740 km*), Mumbai (780 km*), Kolkata (1,350 km*) and

Chennai (1,430 km*). Because of this advantage, a large

number of consumer goods companies have manufacturing

bases in the state.

The state offers wide range of fiscal and policy incentives

for businesses under the Industrial Promotion Policy - 2004

& Action Plan (including the provisions as amended in

2007). Additionally, the state has policies for the IT,

biotechnology, food processing, tourism sectors and special

economic zones (SEZ).

Agricultural and forest resources

Around 31 per cent of the state is under forest cover with

abundant natural resources. Favourable soil and climatic

conditions have helped the state to be leading producer of

coarse cereals, oilseeds and soybean in the country. The

state has attracted a large number of agro-based industries

because of its agricultural products.

Advantage Madhya Pradesh … (1/2)


* From Bhopal



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Mineral resources

Madhya Pradesh has rich mineral resources and has the largest reserves

of diamond and copper in India. Besides, the state has significant reserves

of coal, coal-bed methane, manganese and dolomite.

Large industrial base

The state is manufacturing base for a number of large and medium scale

industries from diverse sectors such as automobile and auto-

components, cement, agro-processing, consumer goods,

pharmaceuticals, etc. It also has a large pool of industrial labour.

Potential for tourism

Because of its forest cover, the state has immense potential for tourism,

particularly, wild-life and adventure tourism and eco-tourism. It also has

globally renowned locations of historical and religious significance. The

state attracts large number of domestic and international tourists.

Advantage Madhya Pradesh … (2/2)




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Madhya Pradesh in figures … (1/2)

Parameter Madhya Pradesh All-states Source

Economy

GSDP as percentage of all states‟ GSDP 3.6 100.0 CMIE, as of 2007-08, current prices

Average GSDP growth rate (%)* 8.8 11.8CMIE, 2000-01 to 2007-08, current

prices

Per capita GSDP (US$) 519.3 992.5 CMIE, as of 2007-08, current prices

Physical infrastructure

Installed power capacity (MW) 8,324.0 159,398.5Central Electricity Authority,

as of March 2010

GSM cellular subscribers (No) 25,010,843 456,586,162Cellular Operators Association of India,

as of June 2010

Broadband subscribers (No) 168,951^ 4,981,976 As of October 2008

National highway length (km) 4,670 70,548Ministry of Road Transport & Highways,

Annual Report 2008-09

Airports (No) 5 133 Industry sources

Social indicators

Literacy rate (%) 63.7 64.8 Census of India, 2001

Birth rate (per 1,000 live birth) 28.0 22.8Ministry of Health & Family Welfare,

RHS Bulletin, March 2008


* In Indian rupee terms

^Includes Chhattisgarh


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Madhya Pradesh in figures … (2/2)

Parameter Madhya Pradesh All-states Source

Ease of doing business

FDI inflows (US$ billion) 0.2* 120.2Department of Industrial Policy & Promotion,

April 2000 to May 2010

Outstanding investments

(US$ billion) 78.4 1,972.6 CMIE, as of March 2010

Industrial infrastructure

PPP projects (no) 39 515 www.pppindiadatabase.com

SEZs (No) 1 114Functional as of August 2010,

www.sezindia.nic.in

Parameter Madhya Pradesh Government

Policy support

Sectors with specific policies IT, biotechnology, SEZ, tourism, food processing

Availability of labour Large base of industrial labour available.

*Includes Chhattisgarh

PPP: public private partnership, SEZ: special economic zone



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Medium HighLow

Medium

High

IT and ITeS

Industry attractiveness matrix

*Factor advantage

Polic

y th

rust

*Factor advantages include benefits due to geographical location and availability of factors like talent pool, natural resources and capital

Key industries with policy thrust and factor advantages

Manufacturing

Tourism

Pharmaceutical and

biotechnology

Minerals

Agro- and

forest-based

industry

Consumer

goods

Textile

Auto and auto

components


Food

processing


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Socio-economic snapshot of Madhya Pradesh

Sources: Website of Government of Madhya Pradesh (www.mp.gov.in), CMIE, Census 2001

Parameters Madhya Pradesh

Capital Bhopal

Geographical area (sq km) 308,000

Administrative districts (No) 50

Population density (persons per sq km) 196

Total population (million) 60.3

Male population (million) 31.4

Female population (million) 28.9

Decadal population growth rate (%) 24.3

Sex ratio (females per 1,000 males) 919

Literacy rate (%) 63.7

Male (%) 76.1

Female (%) 50.3

Average life expectancy (years) 57.7

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


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17.2 16.418.1 19.0

23.5 23.626.0

31.1

35.4

0.0

10.0

20.0

30.0

40.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

• At current prices, the Gross State Domestic Product (GSDP) of Madhya Pradesh for 2007-08 was US$ 35.4 billion.

• Between1999-2000 and 2007-08, the average annual GSDP growth rate was 9.5 per cent.

• The growth in GSDP has primarily come about as a result of the growth in mining and quarrying, construction and services sectors.

Madhya Pradesh‟s GSDP (US$ billion)

Source: CMIE

Madhya Pradesh‟s GSDP

CAGR

9.5%



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15.6 14.716.2 16.8

20.8 20.722.7

27.0

30.7

0.0

10.0

20.0

30.0

40.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

• The Net State Domestic Product (NSDP) of Madhya Pradesh was about US$ 30.7 billion in 2007-08.

• The average NSDP growth rate between 1999-2000 and 2007-08, was about 8.8 per cent.

Madhya Pradesh‟s NSDP (US$ billion)

Source: CMIE

Madhya Pradesh‟s NSDP

CAGR

8.8%



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The tertiary sector has an increasing share in Madhya Pradesh‟s

economy

• In 2007-08, at US$ 16.6 billion, the tertiary sector contributed 46.8 per cent to the GSDP at current prices. It was followed by the primary sector, contributing US$ 10.9 billion (30.7 per cent), and the secondary sector, contributing US$ 8 billion (22.6 per cent).

• The secondary sector has also been the fastest growing at 10.7 per cent from 1999-2000 to 2007-08, followed by the tertiary and primary sectors.

Source: CMIE

CAGR

Percentage distribution of GSDP


33.3 30.7

20.6 22.6

46.0 46.8

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

1999-00 2007-08

Primary sector Secondary sector Tertiary sector

8.3%

10.7%

9.7%


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Per capita GSDP

• The per capita GSDP of Madhya Pradesh increased almost 1.8 times from US$ 293.1 in 1999-2000 to US$ 519.3 in 2007-08.

• In 2007-08, the per capita GSDP grew at about 12 per cent over the previous year.

• Robust tertiary sector has helped Madhya Pradesh increase its average per capita GSDP by around 7.4 per cent between 1999-2000 and 2007-08.

US$

Source: CMIE

Per capita GSDP


293.1273.9

296.0 305.6

370.5 365.1394.2

463.4

519.3

0.0

100.0

200.0

300.0

400.0

500.0

600.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

CAGR

12.0%


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Key industries in Madhya Pradesh

• The natural resources including agro-based products, forest products and minerals, the state‟s policy incentives and its central location have attracted major investments in the agro-products, consumer goods, drugs and pharmaceuticals, mines and minerals, manufacturing and textiles sectors.

• The State Government is keen to develop industrial infrastructure. The Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) and its subsidiary, Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (MPAKVN) are the key nodal agencies for industrial development in the state.

• Major industrial areas in the state are Bhopal, Sehore, Raisen, Harda, Mandideep, Dewas, Pithampur, Khandwa, Jhabua, Dhar, Ujjain and Mandsaur.

Key industries in Madhya Pradesh

• Auto and auto components

• Textile

• Cement

• Agro-based industries

• Forest-based industries

• Pharmaceuticals

• Mineral-based industries

• Manufacturing

• Tourism



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Madhya Pradesh is among the largest producers of pulses,

oilseeds and soybean in the country

CropAnnual production*

(„000 tonnes)

Wheat 5,896.0

Soybean 5,001.0

Sugarcane 3,180.0

Rice 1,409.0

Cotton 658.0

Rapeseed and mustard 510.0

Arhar 292.0

• Wheat, soybean, sugarcane, rice, cotton, rapeseed, mustard and arhar are the major crops of the state.

• In 2007-08, total production of the major crops of the state was around 17.0 million tonnes.

• Wheat, soybean and sugarcane, together, accounted for 83 per cent of the total production of the major crops.

• In 2006-07, Madhya Pradesh was the largest producer of pulses, oilseeds and soybean in the country.

*As of 2007-08

Source: CMIE



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18.6%

3.0%

58.4%

8.8%

8.8%

2.4%

Manufacturing

Mining

Electricity

Services

Irrigation

Construction

• According to the Reserve Bank of India, FDI inflows from April 2000 to May 2010 amounted to US$ 206 million*.

• As of March 2010, total outstanding investments were US$ 78.4 billion. Electricity accounted for around 58.4 per cent of the outstanding investments, followed by manufacturing, accounting for around 18.6 per cent.

Investments and FDI inflows

Break up of investments by sector

Electricity includes generation and distribution

Services excludes financial services

Source: CMIE

As of March 2010


*Including Chhattisgarh


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Contents








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• Madhya Pradesh has 16 National Highways in the state, measuring 4,670 km. Madhya Pradesh also has 8,728 km of State Highways.

• The total road length in the state is around 72,000 km, of which around 60,000 km are surfaced.

• Construction of major roads in the state is supervised by Madhya Pradesh Road Development Corporation Limited (MPRDC), which implements projects taken up under public private partnership and those funded by Asian Development Bank (ADB).

• The state has 31 public private partnership (PPP) projects in the roads sector, at various stages of development. Further, 18 projects funded by ADB are under progress.

• The state is well connected to the major cities of the country, consumer markets, and ports on the West-coast such as Kandla and Jawaharlal Nehru Port Trust.

Road network


INFRASTRUCTURE STATUS


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• Madhya Pradesh has around 5,900 km of railway lines passing through it.

• The railway network in Madhya Pradesh primarily falls under the West-Central Railways, which was formed in 2003 and is headquartered in Jabalpur. Chhattisgarh is the other state under the West-Central Railways. Part of the state is also covered by Central and Western Railways.

• Because of the central location of the state, the railway network in Madhya Pradesh plays an important role. Bhopal, the state‟s capital, is one of the major railway junctions in India.

• The railway network supports the mineral- and agro-based industries in the state by carrying bauxite, limestone, dolomite and clinker, fertiliser and de-oiled cake.

Railway network




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• Madhya Pradesh has five operational airports, one each at: Bhopal, Jabalpur, Gwalior, Indore and Khajuraho.

• Indore is the busiest airport in the state.

Airports

Domestic airport

INDORE BHOPAL

JABALPUR

GWALIOR

KHAJURAHO




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• As of December 2009, Madhya Pradesh had 2,560 telephone exchanges and 28.6 million telephone connections (wire-line and cellular).

• There were 27.3 million cellular subscribers and 1.3 million wire-line subscribers in the state.

• As of December 2009, tele-density (telephone connections per 100 persons) in Madhya Pradesh was 40.4, compared to 30.1 in March 2009.

• The total number of broadband users, as of October 2008, was 168,951 (including Chhattisgarh).

Telecom

Major telecom companies in Madhya Pradesh

Bharat Sanchar

Nigam Limited (BSNL)

Bharti Airtel

Vodafone Essar

Idea Cellular

Reliance Communications

Tata Teleservices

Sources: Cellular Operators Association of India, company websites

Telecom infrastructure in Madhya Pradesh

Parameter December

2009

March

2009

No of telephone exchanges 2,560 2,558

No of telephone connections (million) 28.6 21.1

No of wire-line telephone (million) 1.3 1.4

Tele-density (per 100 persons) 40.4 30.1

Source: Department of Telecommunication, Government of India



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• As of March 2010, Madhya Pradesh had total installed power generation capacity of 8,324 MW, which comprised 4,582.9 MW under state utilities, 3,525 MW under central utilities and 216.1 MW under the private sector.

• Coal-based thermal power and hydro power contribute around 51.4 per cent and 38.7 per cent to the total installed capacity, respectively. Balance generation capacity is based on nuclear and renewable energy sources.

• NTPC, the central-sector operator in the state, had plants of another 3,260 MW of thermal power generation in the state.

• An ultra-mega power plant (UMPP) is being constructed in Sasan, with an installed capacity of 3,950 MW.

Installed power capacity (MW)

Source: Central Electricity Authority

Power


5,770.06,648.3

7,751.9 8,113.3 8,324.0

0.0

2,000.0

4,000.0

6,000.0

8,000.0

10,000.0

2005-06 2006-07 2007-08 2008-09 2009-10


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Urban infrastructure … (1/2)

• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 22 projects (of value US$ 479 million) have been sanctioned for urban centres such as Bhopal, Indore, Jabalpur and Ujjain.

• Some of the key projects are in sectors such as roads and flyovers, water supply, storm-water drainage, sewerage, solid-waste management and mass rapid transport systems.

• Projects of value US$ 3.0 million have been completed in Bhopal and Indore. Those were related to urban renewal and roads and flyovers. In 2008-09, funds worth US$ 26 million have been released for 10 projects.

• The Asian Development Bank (ADB) has funded 16 projects worth US$ 33.8 million for Bhopal in the areas of water supply, sewerage and sanitation, storm-water drainage and solid-waste management. Out of the 16 projects, two have been completed and others are at various stages of development.


Sources: Bhopal Municipal Corporation website, www.bhopalmunicipal.com, JNNURM Ministry of Urban Development, Government of India


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Urban infrastructure … (2/2)

Water supply Sewerage system Solid-waste management Others

• The average per capita supply of water in major cities such as Indore is around 80 litres per day.

• Under the JNNRUM, cities are planned to achieve per capita water supply of 135 litres per day between 2015 and 2021.

• Six projects worth US$ 183 million have been sanctioned for water supply under the JNNURM.

• In cities such as Indore, around 50 per cent of the population is connected to sewage network.

• Under the JNNRUM, the entire population in the cities will be connected to sewage network.

• Three projects worth US$ 100 million have been sanctioned for sewage treatment under the JNNURM.

• Indore and Ujjain generate around 500 tonnes per day (tpd) and 160 tpd of solid-waste respectively.

• Under the JNNRUM, the entire solid-waste is expected to be collected and treated.

• A project worth US$ 9.4 million has been sanctioned.

• Two projects worth US$ 77.6 million have been sanctioned for improvement of drainage system.

• Six projects worth US$ 69.2 million have been sanctioned for improvement of transport system.

Source: JNNURM, Ministry of Urban Development, Government of India


Focus areas of urban development in Madhya Pradesh


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Project name Sector PPP typeProject cost

(US$ million)Status

Development of central business district in South

TT Nagar, BhopalUrban development BOT-toll 326.1 Under bidding

Sports city, international convention centre, star

hotel, shopping complex and residential complexUrban development BOT-toll 195.7 Construction

Gwalior-Jhansi National Highway road project Roads BOT-annuity 131.1 Construction

Khalaghat-Maharashtra border Roads BOT-toll 119.3 Construction

Indore to Khalaghat Roads BOT-toll 102.6 Construction

Four-laning of Bhopal-Devas State Highway Roads BOT-toll 92.8 Construction

Four-laning of Lebad-Jaora State Highway Roads BOT-toll 91.5 Construction

50 km road between Jhansi-Lalitpur on NH-25 and

NH-26Roads BOT-annuity 91.5 Construction

Lakhnadon to Maharashtra border Roads BOT-annuity 88.7 Construction

Four-laning of Joura-Nayagaon State Highway Roads BOT-toll 87.8 Construction

Water supply augmentation at Khandwa Urban development BOT-annuity 22.6 Construction

Key public private partnership projects

BOT: Build-operate-transfer

Source: www.pppindiadatabase.com



http://www.pppindiadatabases.com/

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Education sector

• The state had a literacy rate of 63.7 per cent in 2001, compared to 44.2 per cent in 1991.

• In 2001, literacy rate among male was 76.1 per cent and literacy rate among female was 50.3 per cent.

• The state has 159 engineering colleges, 139 management institutes and five medical colleges.

Educational institution Number

Primary schools 94,890

Higher secondary schools 8,504

Degree colleges 303

Universities 12

Polytechnic institutes 158

Industrial training institutes 343

Engineering colleges 159

Management institutes 139

Medical colleges* 5

*Recognised by Medical Council of India

Sources: Madhya Pradesh at a Glance, 2008, Economic Survey

2008-09, Website of Government of Madhya Pradesh

(www.mp.gov.in)

Reputed institutes of Madhya Pradesh

• Indian Institute of Management (IIM), Indore

• Indian Institute of Forest Management, Bhopal

• Indian Institute of Hotel Management, Bhopal

• International Institute of Professional Studies, Indore



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• As of March 2009, the healthcare services network of Madhya Pradesh comprises 50 district hospitals (13,400 beds), 333 community health centres, 1,155 primary health centres and 8,659 sub-centres.

• It also has 34 ayurvedic, 22 homoeopathic and two unani hospitals.

• As of 2007-08, the total number of in-patient beds in Madhya Pradesh (excluding medical colleges) were 26,971.

Health infrastructure

Health institutions (2009)

District hospitals 50

Primary health centres 1,155

Sub-centres 8,659

Community health centres 333

Ayurvedic hospitals 34^

Unani hospitals 2^

Homeopathic hospitals 22^

^As of March 2008

Sources: Directorate of Health Services, Government of

Madhya Pradesh, Ministry of Health & Family Welfare,

Government of India



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• 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: Devi Jagadambika temples at Khajuraho, Buddhist monuments at Sanchi and rock shelters of Bhimbetka.

• The Directorate of Archaeology, Archives and Museums, is responsible for the upkeep of 349 monuments and 44 museums across the state.

• The State Government has established sports academies to promote sports such as 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.

• 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.

Cultural infrastructure


Type of museum (No)

State-level museums 6

District-level museums 11

Local museums 6

Site museums 5

District Archaeological Association

museums

16

Source: Directorate of Archaeology, Archives and Museums,

Government of Madhya Pradesh

State-level museums in Madhya Pradesh

• State Museum, Bhopal

• Central Museum, Indore

• Rani Durgawati Museum, Jabalpur

• Tulsi Museum, Ramvan, Satna

• Maharaja Chhatrasal Museum, Chhatarpur

• Gujrimahal Museum, Gwalior


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• Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) is the nodal agency for industrial growth in the state.

• For balanced and sustainable growth of industry across the state, MPSIDC has set up Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (AKVN) at Bhopal, Gwalior, Jabalpur, Indore, Rewa and Ujjain.

Industrial infrastructure … (1/3)

Infrastructure Bhopal AKVN Gwalior AKVN Jabalpur AKVN

Area developed

(hectare)1,350.7 2,473.8 1,250.0

Growth centres Mandideep, Pillukhedi, Babai, Piparia

Malanpur, Ghirongi, Banmore,

Chainpura, Siddhgawan,

Pratappura, Naugaw

Borgaon, Maneri

Units establishedLarge and medium industries (LMI): 40

Small scale industries (SSI): 328

LMI: 44

SSI: 223

LMI: 10

SSI: 44

Major companiesHEG, Crompton Greaves, Procter &

Gamble, Godrej, Lupin.

Surya Roshini, Godrej, Grasim,

Cadbury, Crompton Greaves

Raymond, Hindustan

Petroleum, Ayur

Special

infrastructure

Inland Container Depot (ICD), food

parkICD, food park, stone park Stone park, food park

Proposed projectEngineering cluster, logistic hub, food

parkHabitat centre, SEZ SEZ (agro-based)

SEZ: special economic zone

Source: MPSIDC



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Infrastructure Indore AKVN Rewa AKVN Ujjain AKVN

Area developed (hectare) 3,254.8 307.4 431.6

Growth centres Pithampur, Kheda, Megh Nagar Rewa, Waidhan, Purena,

MaiherUjjain, Dewas, Maksi, Jaggakhedi

Units established LMI:153, SSI: 832 LMI: 14, SSI: 139 LMI: 52, SSI: 23

Major companiesEicher, Bridgestone, Hindustan

Motors, Force, Mahindra Birla, Jaypee Ranbaxy, S.Kumars, Gajra, Kirloskar

Special infrastructureSEZ, food park, apparel park,

ICD - Food park, ICD

Proposed project Auto testing track, food park Industrial area

Knowledge city, new industrial area

under the Delhi Mumbai Industrial

Corridor project


Source: MPSIDC



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Bhopal

Gwalior

Rewa

Ujjain

Indore

Jabalpur

Industrial clusters in Madhya Pradesh


Sources: Maps of India, Madhya Pradesh State Industrial Development Corporation



35

SEZs and industrial clusters … (1/2)

• As of August 2010, formal approval has been given to 14 SEZs 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 mineral-based, agro-based and multi-product industries.

• There is one operational multi-product SEZ in Indore.


Indore SEZ

• Area: 2,500 acre (1,114 hectares)

• Number of allotment: 42

• Number of units operating: 20

• Total investment: US$ 216.7

• Investment under implementation: US$ 106.7 (13 units)

• Export (2008-09): US$ 210.9 million

Key companies in Indore SEZ

• SRF

• Flexituff

• India Nets

• New Tech Abrasives

• Advance Enzyme Technology

• Ipca Laboratories

• Amulya Exports

• Emerald Tobacco

• Pratibha Syntex

Source: Madhya Pradesh State Industrial Development Corporation

Source: Madhya Pradesh State Industrial

Development Corporation


36

SEZs and industrial clusters … (2/2)

Industry Location No of

SEZs

Formally approved SEZ

IT/ITeS Indore, Gwalior,

Chindwara,

Jabalpur, Bhopal

11

Multi-services Gwalior 1

Mineral-based Jabalpur 1

Agro-based Jabalpur 1

In-principle approved SEZ

Multi-product Gwalior, Indore,

Chindwara,

Sehore

4

IT/ITeS Bhopal 1

Agri-products Indore 1

Aluminium Singroli 1


Source: www.sezindia.nic.in


Gwalior

Multi-product (1)

Formally approved SEZ

In-principle approved SEZ

Gwalior

IT/ITeS (1)

Multi-services (1)

Bhopal

IT/ITeS (1)

Bhopal

IT/ITeS (1)

Sehore

Multi-product (1)

Indore

IT/ITeS (7)

Indore

Multi-product (1)

Agro-products (1)Chhindwara

IT/ITeS (1)

Chindwara

Multi-product (1)

Agro-products (1)

Jabalpur

IT/ITeS (1)

Mineral-based (1)

Agro-based (1)

Number of SEZ in parenthesis

Sources: Maps of India, www.sezindia.nic.in

Operational SEZ

SEZs in Madhya Pradesh

Singroli

Aluminium (1)


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Infrastructure type Investments (US$ million)

Power* 14,237.7

Roads 1,300.3

Coal 800.2

Oil and gas 5.9

Railway 211.5

Airport 73.2

Total 16,628.8

Infrastructure investments

*Generation and distribution

Source: CMIE

• As of March 2010, infrastructure investments of over US$ 16.6 billion had been made in Madhya Pradesh.

• Around 85.6 per cent of investments in infrastructure were in the area of power generation and distribution.

• Other major investments were in the road transport (7.8 per cent of total investments) and the coal sectors (4.8 per cent of total investments).



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39

Madhya Pradesh Food Processing Policy, 2008

Aim: The policy aims to create, facilitate and strengthen the enabling environment for developing an integrated and cohesive value

chain in the food processing sector encompassing end to end solution.

Key incentives and initiatives:

• Expenditure incurred in obtaining necessary national and international quality certifications such as FPO, Agmark, BIS, Euro

Standard will be reimbursed, up to a maximum of US$ 2,109.

• In order to encourage research and development in food processing industries, 10 per cent of actual expenditure incurred will

be reimbursed up to a maximum of US$ 2,109.

• Small scale industries will be provided subsidy (US$ 1,582 in first year, US$ 1,055 in second year, US$ 527 in third year) for

putting up stalls and promotional measures at national- and state-level exhibitions and seminars.

• No mandi fee will be charged on agriculture produce purchased from outside the state for use as raw material.

• Incentives will be provided to units being set up in food parks and for industries based on perishable foods.

• Mega projects and projects with special importance which induct modern technology and have fixed capital investment of more

than US$ 1.05 million will be considered for further economic incentive, on a case by case basis.

Exclusion:

• Incentives provided through Industrial Promotion Policy-2004 & Action Plan (including provisions as amended in 2007) will not

be available for certain industries such as slaughter house, aerated cold drinks (excluding pulp-based cold drinks), wine, tobacco

and tobacco-based products, pan masala, gutkha.

Sector specific policies … (1/9)

STATE POLICIES AND INCENTIVES


40

Industrial Promotion Policy-2004 & Action Plan (including provisions as amended in 2007)

Aims: The policy envisages creating an industry-friendly administration, quality infrastructure, maximizing employment

opportunities, tackling industrial sickness, rationalising rates of commercial taxes and bolstering private sector participation.

Incentives provided to industrial units commencing operation on or after April 1, 2004 are as follows:

• For companies with investment between US$ 0.217 million and US$ 2.17 million, 50 per cent of the commercial tax and central

sales tax (excluding commercial tax on purchase of raw material) will be reimbursed for three years for those located in

economically advanced districts and five years for those located in the backward districts.

• For companies with investment above US$ 2.17 million, 75 per cent reimbursement on taxes will be available for a period of

three to 10 years depending on investment amount and location of unit.

• Projects with investments above US$ 5.43 million will be considered as mega projects and five to 20 acres of land at

concessional rate of 25 per cent of stipulated premium rate would be provided, subject to availability of land.

• Mega projects, which involve modern technology and management will be provided with further benefits on case-to-case basis.

Industrial units in food and agro-processing, milk products, herbal and forest-based products will be considered as mega projects

for investment of US$ 2.17 million and above.

• Partial or full exemption from stamp duty and registration charges will be provided on loan related mortgage agreements based

on location of units.




41

Industrial Promotion Policy-2004 & Action Plan (including provisions as amended in 2007), (continued)

Incentives:

• Exemption from electricity duty on captive power generation will be provided for five years.

• Interest subsidy, at the rate of 3 to 5 per cent will be provided for five to seven years for a total amount of US$ 20,000 to US$

40,000, depending on location of units.

• Industries such as textiles, IT, biotechnology, automobiles, pharmaceuticals and herbal, food processing, agriculture and urban

waste processing with fixed capital of US$ 0.11 million have been categorised as thrust sectors.

• A special subsidy at the rate of 25 per cent of fixed investment, up to US$ 22,000 to US$ 54,000, will be provided based on the

location of the unit.

• Food processing industry will be exempted from –mandi fee levied on the agricultural produce brought as raw material from

outside the state.




42

IT Policy, 2006

Objectives: The objective of the policy is to improve the life of common man by leveraging the strength of e-governance and

attract investment in the sector by providing conducive environment and highly skilled manpower to transform the state from a

resource-based economy to a knowledge-based economy.

Key initiatives:

• Software, business process outsourcing (BPO), ITeS and computer hardware will be considered as IT industry. The state intends

to promote IT industry in four cities, viz., Indore, Gwalior, Bhopal and Jabalpur.

• Select 500 government schools will be provided modern computing hardware, software and Internet connectivity.

• Centres of excellence will be established in all government engineering colleges and select other government colleges. Large and

reputed companies will be invited to teach technology and provide their certification in these centres.

• English language teaching will be promoted in school education to equip students with language skills required in the IT industry.

• A cabinet committee will be created for ensuring successful implementation of the policy.




43

IT Policy, 2006 (continued)

Key incentives:

• All incentives provided under the industrial policy will be applicable to the IT Industries. Single-window clearance will be provided for setting up IT units.

• Reimbursement of 30 per cent of the cost (with a ceiling of US$ 8,700) on acquiring capability maturity model (CMM) and peoples capability maturity model (PCMM) level-three certification will be provided.

• Exemption up to twice the existing floor area ratio (FAR) will be provided for IT investment area.

• Rate of property tax in the IT investment area will be at par with that of residential premises.

• IT industry will be provided power through a dedicated feeder. No prior permission will be required for installing captive powerplant for IT industry.

• Rebate on the cost of land, linked to employment generation capacity of the investment will be provided.

• Exemption from electricity duty, entry tax and work-contract tax will be provided.

• IT units in IT investment area will be exempted from payment of octroi, entry tax and local bodies‟ tax for all capital goods and raw material purchased by them.

• All incentives will be for five years from the date the IT unit becomes operational.

• Companies establishing IT industries in the state will be entitled to special economic zone (SEZ) status under the Central Government provisions.




44

Biotechnology Policy, 2003

Key objectives:

• Conservation of the state's biodiversity and the sustainable use of its biotic 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.

• Enhancement of productive potential of the aquatic eco-system.

• Promotion and cultivation of medicinal and aromatic plants.

• Production of cost effective drugs that help counter diseases common in the tropical and sub-tropical regions of the country.

• Promotion of environmentally safe technologies to reduce pollution, and treatment of urban waste and industrial effluents.

• Efforts to increase the number of those species whose numbers are declining.

Key initiatives:

• Agriculture, animal husbandry, fisheries, forest, medicinal and aromatic plants, health, environment protection, education,

training, research and development have been identified as the key areas for development.

• Eco-friendly agriculture involving practices based on locally available biodegradable waste, bio-fertilizers and bio-pesticides will be

steadily expanded to cover the entire state.

• Research programme and application of biotechnology for improvement of quality of livestock and fish stock will be emphasised.




45

Biotechnology Policy, 2003 (continued)

Key initiatives:

• Endeavour will be made to identify traits in the commercially important species available in the vast forest land in the state and comprehensive hybridisation programme will be taken up.

• Modern techniques of biotechnology will be encouraged for cultivation of medicinal and aromatic plants.

• The State Government will participate in the development of strategies for prevention and cure of diseases induced by malnutrition, faulty diet and lifestyles through application of medical biotechnology.

• Bio-remediation will be encouraged as an alternative to chemical treatment of industrial effluents and urban waste.

• Partnerships between rural and tribal communities and research institutions will be established to improve and expand the applications environment for traditional knowledge and practices.

• The existing educational facilities will be expanded by encouraging universities and colleges to set up facilities for under-graduate and post-graduate level programs in biotechnology.

• An appropriate policy framework for biotechnology industry will be created, which will have incentives and concessions for large, medium and small scale industries. Integrated biotechnology parks will be set up in the state.

• To implement the salient features of the policy, world-class institutes of life sciences and technology, biotechnology parks, bio-centres will be set up at selected farms of the state agriculture department, medicinal and aromatic plant information exchange.

• Expansion of bio-village programme will be taken up.




46

Special Economic Zone Policy

Aim: To promote development of SEZ in the state.

Objectives:

• All SEZ developers and units will receive exemption from payment of commercial tax, turnover tax, value added tax, octroi,

mandi tax, purchase tax, electricity cess, stamp duty or any other kind of cess or levy of the State Government for any

transaction between them, within the zone as well as on sales made to domestic tariff area.

• SEZ units will receive all required clearances under the single-window system.

• The State Government will provide adequate water supply for drinking, industrial and other use.

• Processes for obtaining consents and clearances pertaining to pollution control will be simplified.

• The SEZ will be exempted from electricity duty, cess and any other tax or levy on sale of electricity for self generated and

purchased power.




47

Tourism Policy, 1995

Aim: The policy envisages creation of conducive environment to attract private investment in the tourism sector and more

meaningful role of the Government.

Incentives and initiatives:

• Projects with at least ten rooms for accommodation and investment of US$ 110,000 will be considered for incentive package.

• Incentives will be provided to hotels, motels, recreation centres, ropeways, museums, amusement parks, craft villages,

convention centres, air-conditioned buses for transportation of tourists and other tourism related activities such as adventure

tourism, gliding, parasailing, river rafting, boating, trekking, rock climbing, etc.

• Government land will be provided as equity contribution to the project.

• Exemption under the Urban Land Ceiling Act will be provided on a case-to-case basis.

• New projects will be exempted from luxury tax, entertainment tax and sales tax for ten years since commencement of

operations.




48

Logos used in this section are registered trade marks of the respective companies

Contents








49

Auto and auto components

Key players

• Bridgestone India Private Limited

• Eicher Motors Limited

• Force Motors Limited

• Hindustan Motors Limited

• Jaya Hind Industries Limited

• Mahindra Two Wheelers Limited

• Caparo India

• MAN FORCE TRUCKS Private Limited

• Gajra Group

• J K Tyre

• Madhya Pradesh has an automotive cluster located at Pithampur, which is an industrial growth centre near Indore.

• The basic industrial infrastructure available in the automotive cluster includes power, water supply, telecommunication services, road and a dry port.

• The Pithampur automotive cluster is among the industrial clusters in India that have been identified by the Central Government for implementation of the Industrial Infrastructure Up-gradation Scheme (IIUS). The scheme aims at improving the competitiveness of functional clusters across the country.

• The Pithampur automotive cluster has automotive original equipment manufacturers (OEMs) such as Force Motors, Eicher Motors, Hindustan Motors and Mahindra Two wheelers, major tyre producing unit of Bridgestone and about 30 auto component and ancillary units.

BUSINESS OPPORTUNITIES


50

Auto and auto components – company profiles … (1/3)

Bridgestone India Private

Limited

Bridgestone India Private Limited is a part of Bridgestone Corporation, Japan, and is one of the

leading manufacturers of tyres in India. The company started commercial production of tyres in

1998 in its plant at Kheda in Madhya Pradesh. The company produces around 2.7 million tyres,

annually, including passenger steel belted radial tyres and tubes, and light commercial vehicle

steel belted radial tyres and tubes. It is major supplier to car manufacturers and has over 1,000

dealers across India. It employs around 900 people .

Eicher Motors Limited Eicher began its business operations in 1959 with the rolling out of the first tractor in India.

Today, the Eicher Group has diversified business interests such as design and development,

manufacturing and local/international marketing of trucks and buses, motorcycles, automotive

gears and components. The Pithampur plant of Eicher has a state-of-the-art manufacturing

facilities with capacity of producing 40,000 vehicles, annually. It has an auto component

manufacturing facility at Pithampur (an SEZ covering 38,000 sq metre) and Dewas (plant area of

18,000 sq metre). Volvo-Eicher Commercial Vehicles (VECV), a joint venture of EML with AB

Volvo, Sweden will invest US$ 60.8 million for a new engine plant in the existing facility at

Pithampur. The new plant, which will be completed by 2012, will add capacity of 85,000 units and

will serve domestic and export markets. The company recorded revenues of US$ 79.7 million in

the year ending December 2009.

Force Motors Limited 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 1997. Subsequently, it also obtained ISO 9001: 2000 certification. The company

recorded revenues of US$ 217 million in 2009-2010.



51

Hindustan Motors Limited Hindustan Motors Limited (HML), pioneer in automobile manufacturing in India, is the flagship

company of the C. K. Birla Group. The company manufactures passenger cars, multi-utility

vehicles and road-trusted vehicles (RTV). In technical collaboration with Australian OKA Motor

Company, HML manufactures RTV in its plant at Pithampura. The company recorded revenues

of US$ 122.4 million in 2009-2010.

Jaya Hind Industries Limited Jaya Hind Industries, a group company of Force Motors, was established in 1947 with business

interest in auto and auto component manufacturing. The company has its manufacturing plants

in Urse and Akrudi in Maharashtra and the fabrication division in Pithampura in Madhya

Pradesh. The company has established a tipper manufacturing facility with capacity of 200

tippers per month which will be supplied to another group company MAN Force Trucks

Private Limited.

Mahindra Two Wheelers

Limited

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 with capacity to assemble about 450,000 units per annum. The

group company, M&M recorded revenues of US$ 3.9 billion in 2009-2010.




52


Caparo India The Caparo Group is a UK-based US$ 1.3 billion company with business interest in steel,

automotive and general engineering goods. Caparo India, the Indian business arm of the group,

provides complete solutions in designing, developing and manufacturing of automotive systems,

assemblies and components to original equipment manufacturers and engineering industries.

The company has two plants at Pithampur for manufacturing of stamping and serves Eicher

Motors and Force Motors. The plants, together, have a capacity of 15.4 million strokes per year

and employ around 468 personnel. It also has a steel tube manufacturing plant at Dewas with

capacity of 48,600 tonnes per year and employs around 540 people.

MAN FORCE TRUCKS Private

Limited

MAN FORCE TRUCKS Private Limited is a joint venture between MAN Nutzfahrzeuge AG of

Germany and FORCE Motors Limited of India. The company manufactures commercial vehicles

in its plant at Pithampur in Madhya Pradesh. The range of products manufactured includes

mining and construction tippers, haulage tractors and multi axle trucks. The plant has installed

capacity of 24,000 vehicles per annum and almost 50 per cent of the production is earmarked

for exports.

Gajra Group The Gajra Group has business interest in manufacturing of transmission and differential gear,

cutting tools and tooling (jigs and fixtures). The company earns around 50 per cent of its

revenue from exporting these products. It has a manufacturing plant at Dewas in Madhya

Pradesh, which has 130,000 sq ft of machine shop and 29,000 sq ft of heat treatment facilities.

J K Tyre J K Tyre is one of the leading tyre manufacturers in India. The company was pioneer in

introducing radial tyres in India. It has a manufacturing plant in Banmore in Madhya Pradesh.

Radial tyres for passenger cars are manufactured in the plant, which has been awarded the

“Golden Peacock Environment Management Award” for excellence in environment protection.

The company recorded revenues of US$ 834.7 million in 2009-2010.



53

Textiles

• Madhya Pradesh is one of the major cotton producing states of India. In 2008-09, cotton was grown on 650,000 hectares in the state with a total production of 1.8 million bales.

• A large number of cotton textile mills are clustered around Indore, Dewas, Ujjain and Malanpur.

• The Indore SEZ has been identified by Central Government for setting up an apparel park under the Apparel Park for Exports Scheme (APES). Further, Indore has been identified for infrastructure development under the Textiles Centre Infrastructure Development Scheme (TCIDS).

Key players

• Century Textiles and Industries Limited

• Grasim Industries Limited

• Maral Overseas Limited (Bhilwara)

• S. Kumars Nationwide Limited

• S R F Limited

• Vardhman Textiles Limited

• Raymond Limited

• Dhar Textiles

• Abhishek Industries Limited



54

Textiles – company profiles … (1/2)

Century Textiles and Industries

Limited

Century Textiles and Industries Ltd was incorporated in 1897. The company has interest 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 4,541 tonnes of yarn during 2008-09. The denim

division has production capacity of 21 million meters of denim fabrics per annum. The company

recorded revenues of US$ 955.5 million in 2009-2010.

Grasim Industries Limited Grasim Industries Limited, a flagship company of the Aditya Birla Group, is one of the leading

companies in India with diverse interest 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 revenues of US$ 1.8 billion in 2009-2010.

Maral Overseas Limited

(Bhilwara)

Maral Overseas Limited, one of India‟s largest vertically integrated textile companies is a part of

LNJ Bhilwara group. The company has manufacturing capability of producing 1,500 tonnes of

grey yarn, 125 tonnes of dyed yarn, 400 tonnes of knitted fabric and 500,000 pieces of garments

every month. One of the two units of the company are located at Khargone in Madhya Pradesh

which produces yarn and fabrics. The unit also has a 10 MW captive power plant. The company




55


S Kumars Nationwide Limited S Kumars Nationwide Limited is one of India‟s leading textile and apparel company with

expertise in multi-fibre manufacturing. The company has four state of art manufacturing units

with collective capacity of 200,000 metre of fabric per day. Its Chamunda standard mills and

Amana manufacturing unit in the outskirts of Dewas, Madhya Pradesh manufacture a fine variety

of fabric – Damask. Product of the plant caters to domestic market as well as exported to

Europe. The company recorded revenues of US$ 459.6 million in 2009-2010.

SRF Limited SRF Limited is a manufacturer of chemical-based industrial intermediates with presence in UAE,

Thailand and South Africa apart from India. The company is a global leader in technical textile

business and is a domestic leader in refrigerants, engineering plastics and industrial yarns as

well. SRF manufactures tyre cord fabrics in its Malanpur plant in Madhya Pradesh. The company

has an ultra-modern packaging plant in the Indore SEZ with an annual capacity of 21,000 tonnes.

The company recorded revenues of US$ 462.8 million in 2009-2010.

Vardhman Textiles Limited The Vardhman Group is a leading textile conglomerate in India having a turnover of US$ 700

million. The company has manufacturing plants in Mandideep, Satlapur and Bhudhni in Madhya

Pradesh. The yarn manufacturing units are located in Mandideep (74,496 spindles), Satlapur

(170,528 spindles) and Bhudhni (60,000 spindles). Further, the Bhudhni plant has fabric weaving

unit (400 looms) and a fabric processing unit with capacity of 40 million metre per annum. The

company recorded revenues of US$ 583.4 million in 2009-2010.



56


Raymond Limited Raymond is a major fabric manufacturer in India. Besides, the company has also business

interests in engineering and aviation. The company is one of the large integrated manufacturer

of worsted fabric in the world and commands around 60 per cent market share 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$ 285.7 million in 2009-2010.

Dhar Textiles Dhar Textile is a manufacturer and exporter of yarns, fabrics and garments. It has a spinning

unit in Pithampur, Madhya Pradesh with 1,296 rotors and 3,840 spindles and installed capacity

of 3,600 tonnes per annum. The weaving division of the company is equipped with 30 airjet

looms and eight rotary printing and curing ranges with loop steamer. The garment

manufacturing plant of the company has capacity of 50,000 units per month.

Abhishek Industries Limited Abhishek Industries is the flagship company of US$ 543 million Trident Group, which has

business interest in textiles, paper, yarn, chemicals and energy. The company has five yarn

manufacturing units in India, of which one is located at Budhni In Madhya Pradesh. The

combined capacity of all these plants is 176,352 spindles and 1,920 rotors. The company




57

Cement

• Jawad and Neemuch of Madhya Pradesh belong to one of the seven major lime stone clusters in India and hence provide easy access to critical raw material resource for the cement industry.

• The state has total limestone reserves of 3,625.9 million tonnes, spread across more than15 districts.

• In 2009, total installed capacity in the state was around 20 million tonnes of cement per annum –one of the highest among Indian states. The cement plants in the state operate at a high efficiency level with total production being close to capacity.

Key players

• Birla Corporation Limited

• ACC Limited

• Everest Industries Limited

• Heidelberg Cement India Limited

• Jaypee Group

• Prism Cement Limited



58

Cement – company profiles

Birla Corporation Limited Birla Corporation Limited is the flagship company of the M P Birla group with business interests

in cement, jute, polyvinyl chloride, floor covering and auto trims. The cement plant of the

company is located in Satna, Madhya Pradesh. The plant with 1.73 million tonnes per annum

capacity, produced 1.7 million tonnes of cement in 2008-09. The plant also has 50 MW of

captive power generation capacity. The company recorded revenues of US$ 463.8 million in

2009-2010.

ACC Limited ACC Limited is one of the largest cement manufacturers in India with 16 cement plants, more

than 40 ready-mix concrete plants, 20 sales offices and over 9,000 dealers. In Madhya Pradesh,

it has plants in Kymore with a capacity of 2.2 million tonnes per annum (MTPA). The company

recorded revenues of US$ 1.7 billion in in the year ending December 2009.

Everest Industries Limited Everest Industries Limited manufactures a range of building solutions which include ceilings,

walls, flooring, cladding, doors, roofing and pre-engineered steel buildings. In 2009-2010, total

revenue of the company was US$ 143.6 million. 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 State

Government for excellence in the fields of safety, health and environment.



59

Cement – company profiles

Heidelberg Cement India

Limited

Heidelberg Cement India Limited is a subsidiary of the Heidelberg Cement Group, which is one

of the largest cement manufacturers in the world. The company has a cement plant at Damoh

in Madhya Pradesh. Its cement is sold under brand name „Mycem‟. In August 2010, the plant

produced 108,675 tonnes of clinker and 83,119 tonnes of cement. The company recorded

revenues of US$ 207.1 million in in the year ending December 2009.

Jaypee Group The Jaypee group has 13 cement plants in North India, with total installed capacity of about

21.3 million tonnes. In 2008-09, the company produced around 8 million tonnes of cement. The

company has three plants in Madhya Pradesh – at Rewa (with an installed capacity of 3 million

tonnes), Bela (2.4 million tonnes) and Sidhi (2 million tonnes). In 2009-2010, total production in

these plants was 6 million tonnes.

Prism Cement Limited Prism cement has a cement plant at Satna in Madhya Pradesh with installed capacity of 2.5

million tonnes. The company is setting up another plant at Satna with capacity of 3.6 MTPA. It

also has a tile manufacturing facility at Dewas. The company recorded revenues of US$ 602.8

million in in 2009-2010.



60

Pharmaceutical and biotechnology industry

• Madhya Pradesh has rich bio-diversity. About 31 per cent of the state is under forest cover; 11 of the 25 agro-climatic zones are present in the state and a large variety of rare and valuable medicinal and herbal plants are available.

• The state has formulated a biotechnology policy, which is expected to create a conducive environment for bio-pharmaceutical industry in the state.

• Biotechnology and pharmaceuticals have been recognised as thrust sectors and incentives are provided for setting up industries in these sectors.

Key players

• Alpa Laboratories

• Ipca Laboratories Limited

• Lupin Limited

• Piramal Healthcare Limited

• Ranbaxy Laboratories Limited



61

Pharmaceutical – company profiles

Alpa Laboratories Alpa Laboratories manufactures and markets pharmaceutical products for human and veterinary use.

In 2009-2010, total revenue of the company was US$ 19.7 million. It has manufacturing facility spread

across 110,000 sq ft built-up area at Indore. The range of products manufactured includes injectables,

tablets, capsules, creams, gels and ointments. The company is certified by World Health

Organisation.

Ipca Laboratories Limited Ipca is a fully integrated Indian pharmaceutical company with a strong thrust on exports. In 2009-

2010, total revenue of the company was US$ 336 million. The company has operations in over 100

countries and exports account for over 50 per cent of the income. The company has eight

manufacturing plants in India. In Madhya Pradesh, it has plants at Indore (plant area of 6,503 sq m),

Pithampur (200,000 sq m) and Ratlam (272,900 sq m). The plants manufacture drug intermediaries,

tablets liquids, injectables, etc., and are certified by apex global agencies.



62

Pharmaceutical – company profiles

Lupin Limited Lupin Limited is an innovation-led pharmaceutical company producing wide range of generic and

branded formulations and active pharmaceutical ingredients (API). 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 2009-2010, the company recorded revenues of US$

782.4 million.

Piramal Healthcare

Limited

Piramal Healthcare Limited (PHL) is a globally integrated healthcare company with revenue of around

US$ 571 million in 2009-2010. 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.

Ranbaxy Laboratories

Limited

Ranbaxy Laboratories, one of India's largest pharmaceutical company, is an integrated, research-

based pharmaceutical company with global presence. In 2009, the total revenue of the company was

US$ 1 billion. The company manufactures a wide range of generic medicines in its manufacturing

facilities located in seven countries. It has a manufacturing facility at Dewas, Madhya Pradesh, where

it has three independent units engaged in the production of cephalopsorins, semi-synthetic penicillin

and non-beta-lactum products.



63

Manufacturing

• Madhya Pradesh State Industrial Development Corporation and its subsidiaries have successfully developed several growth centres across the state.

• The industrial policy of the state provides incentives for setting up manufacturing units.

• Industrial infrastructure, policy incentives, labour resources and central location of the state are some of the growth drivers for manufacturing industry in the state.

Key players

• Bharat Heavy Electricals Limited

• Birla Ericsson Optical Limited

• Kirloskar Brothers Limited

• Kores (India) Limited

• Crompton Greaves

• HEG Limited

• AVTEC Limited

• L&T-Case Equipment Private Limited



64

Manufacturing – company profiles … (1/2)

Bharat Heavy Electricals

Limited

Bharat Heavy Electricals Limited (BHEL) is a large engineering and manufacturing enterprise in

India in the energy-related and infrastructure sector. In 2009-2010, total revenue of the

company was US$ 7.3 billion. The Bhopal unit of BHEL was set up in 1956 with technical

assistance from Associated Electricals (India) Limited, a UK-based company. The unit has

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 equipment 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.

Birla Ericsson Optical Limited Birla Ericsson Optical Limited (BEOL), an M.P. Birla Group company, was established with

technical and financial collaboration with Ericsson Network Technologies AB of Sweden. In

2009-2010, total revenue of the company was US$ 22.1 million. The company has a plant in

Rewa, near Bhopal with an installed capacity of more than 53,000 cable km per annum of

optical-fibre and 4.3 million conductor km of jelly-filled copper telephone cables. The company

exports products to a large number of countries in Asia, Europe and Australia.



65


Kirloskar Brothers Limited Kirloskar Brothers Limited (KBL) is the flagship company of the US$1.2 billion Kirloskar Group.

KBL has business interest in large infrastructure projects such as water supply, power

generation and irrigation, manufacturing of pumps for domestic, agricultural and industrial use.

The total sales of KBL in 2009-2010 was around US$ 590 million. The company has four

manufacturing plants, one of which at Dewas in Madhya Pradesh was established in 1962. The

plant manufactures pumps for domestic and agricultural use. The company recorded revenues

of US$ 428.5 million in 2009-2010.

Kores (India) Limited Kores (India) Limited 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 plant at Pithampur in Madhya Pradesh. The plant is set up on an area over

70,000 sq m and has facilities such as machine shop, fabrication shop and assembly shop. The

company produces hydraulic tank, pump and drills in the plant at Pithampur.

Crompton Greaves Crompton Greaves is a part of US$ 3 billion Avantha Group. The company is engaged in

designing, manufacturing and marketing of technologically advanced electrical products and

services. The company manufactures transformers and DC machines at its plant in Mandideep,

Madhya Pradesh. The company has another plant in Malanpur where it manufactures

transformers. The company recorded revenues of US$ 1.1 billion in 2009-2010.



66

HEG Limited HEG limited is a part of the Bhilwara group and is a manufacturer of graphite electrodes and carbon

specialities. The company manufactures graphite electrode at its plant in Mandideep. The plant spread

across 170 acre has capacity to produce 52,000 tonnes of ultra high performance grade electrodes. It

also has a 40 mega watt captive power plant. Around 80 per cent of the production of the plant is

exported. The plant is one of the largest in Southeast Asia and Middle-East in its category and employs

983 personnel. The graphite electrode business of the company accounts for around 80 per cent of

the company‟s revenue (US$ 243 million in 2009-2010).

AVTEC Limited AVTEC is one of the largest independent manufacturers of engines and transmissions (power trains) in

India and supplies critical auto components to reputed Indian and global original equipment

manufacturers. The company has four manufacturing plants across the country. The power unit is

located at Pithampur where engine and transmissions components for automobiles are manufactured.

The plant manufactures engines from 1.3 litre to 3.9 litre capacity of both petrol and diesel variant.

The plant is located on a 60 acre area with 36 acre of developed land.

L&T-Case Equipment

Private Limited

L&T-Case Equipment Private Limited was formed in November 1998, and is a 50:50 joint venture

between Larsen & Toubro Limited and CNH Global N.V. The company designs, manufactures and

supplies construction and road building equipment such as loader backhoes and vibratory compactors.

The manufacturing facility of the company is located at Pithampur in Madhya Pradesh. It is spread over

40 acres with over 12,000 sq m of built-up space, equipped with state-of-the-art facilities.




67

Fast moving consumer goods

• A number of factors such as industrial infrastructure in growth centres, labour pool and central location of the state are the drivers for setting up consumer goods manufacturing facilities in Madhya Pradesh.

• A number of multinational companies such as Cadbury, Procter & Gamble, Hindustan Unilever Limited, Coca Cola and Cargill have their manufacturing plants in the state.

• Majority of the manufacturing plants are located in industrial areas of the state such as Malanpur, Mandideep, Pithampur and Chhindwara.

Key players

• Cadbury India Limited

• Procter & Gamble (P&G) Home Products

Limited

• Dabur India Limited

• Hindustan Uniliver Limited

• Jyothy Laboratories Limited

• Godrej Consumer Products Limited

• Coca Cola India

• Cargill India Private Limited



68

Cadbury India Limited Cadbury is a leading global confectionery company with a portfolio of chocolate, gum and candy

brands and operations in over 60 countries. In India, the company started its operation in 1948

and has five factories and four sales offices. The company has a factory at Malanpur industrial area

in Gwalior. In 2008-09, total revenue of the company was US$ 431 million.

Procter & Gamble (P&G)

Home Products Limited

P&G Home Products Limited, one of India's large consumer goods companies, is a 100 per cent

subsidiary of Procter & Gamble Company, USA. The company owns some of the reputed brands

in fabric care products, hair care and baby care segments. The company has its manufacturing

plant at Mandideep in the Raisen district of Madhya Pradesh.

Dabur India Limited Dabur India Limited is one of the leading consumer goods company in India with revenues of US$

608 million in 2009-2010. The company has three major divisions: consumer care, consumer

health and international business. One of the17 manufacturing plants of the company, is located at

Katni in Madhya Pradesh.

Hindustan Unilever Limited Hindustan Unilever Limited (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

28 manufacturing plants across India and employs 15,000 persons. The company has its

manufacturing plant at Chhindwara in Madhya Pradesh. The company recorded revenues of US$

3.8 billion in 2009-2010.

Fast moving consumer goods – company profiles … (1/2)



69

Fast moving consumer goods – company profiles … (2/2)

Jyothy Laboratories

Limited

Established in 1983, Jyothy Laboratories is a multi-product company with six business divisions

and pan-India presence. The company manufactures and markets fabric care, insecticides, utensil

cleaners, fragrances and personal care products. The company has 21 manufacturing plants

spread across 14 locations. One of the manufacturing plants is located at Pithampur in Madhya

Pradesh. In 2009-2010, the company recorded revenues of US$ 122.7 million.

Godrej Consumer

Products Limited

Godrej Consumer Products (GCPL) is one of the leading consumer goods companies in India

with personal and home care products. In 2009-2010, total revenue of the company was US$ 273

million. The company has a pan-India presence with four branch offices and five manufacturing

plants. One of the manufacturing plants is located at Malanpur, in Madhya Pradesh.

Coca Cola India Coca Cola is one of the major beverage companies in the world. The Indian operation of the

company has 50 bottling plants and a network of 21 contract packers. The company has

manufacturing units at Ricchi industrial area in Jabalpur and at Pilukhedi which serve markets of

Central India.

Cargill India Private

Limited

Cargill in India has business interest in a wide range of products, including refined oils, grain and

oilseeds, sugar, cotton and animal feed. In addition, Cargill develops flavour systems and operates

a value investing business. Cargill has a soybean processing plant in Madhya Pradesh.



70

Agro-based industry• Of the total gross area under crop cultivation in the

state, 59 per cent is sown in the Kharif season while the other 41 per cent is sown in the Rabi season.

• About 24 per cent of the area under crop cultivation in the state can be used for cultivation throughout the year.

• In 2007-08, Madhya Pradesh was the largest producer of soybean with total production of around 5 million tonnes.

• The state is the largest producer of oilseeds; it produced 6.4 million tonnes in 2007-08, accounting for 21.3 per cent of the national production.

• The state leads in the production of spices and is the largest producer of garlic, accounting for around 37 per cent of the total national production.

• Jawaharlal Nehru Krishi Vishwavidyalaya is located in Jabalpur and serves as a centre for teaching and research in agriculture and allied sciences.

Key players

• Adani Wilmar Limited

• Anik Industries Limited

• Gujarat Ambuja Exports Limited

• K S Oils Limited

• Ruchi Soya Industries Limited

• Dewas Soya Limited

Agri export zones in MP for various products/ crops

Pulses Oranges

Seed spices-coriander and fenugreekWheat



71

Agro-based industry – company profiles … (1/2)

Adani Wilmar Limited Adani Wilmar Limited (AWL) is a 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 6,000 tonnes per day and

refining capacity of over 5,000 tonnes per day. The company has a production unit in

Chindwara and a packaging plant at Dewas in Madhya Pradesh.

Anik Industries Limited Anik Industries Limited manufactures and markets dairy and milk derivative products, wind

power, soya protein isolate and concentrate. The company has two milk processing unit in

Madhya Pradesh for manufacturing of dairy products– one at Dewas (capacity of 240,000 litre

of milk per day) and another at Bhopal (capacity of 100,000 litre of milk per day). These units

are supported by 11 chilling centres spread across the state which collect milk from more than

5,000 villages. The company recorded revenues of US$ 256.2 million in 2009-2010.

Gujarat Ambuja Exports

Limited

Gujarat Ambuja Exports Limited (GAEL) is involved in agro-processing and trading with a major

focus at export. The company has three manufacturing plants, with combined capacity of 4,000

tonnes per day. One of the soya processing plants of the company is located at Pithampur,

near Indore in Madhya Pradesh. Products of the company are exported to Southeast Asia,

Middle East and other Asian countries. The company recorded revenues of US$ 297.6 million in

2009-2010.



72

Agro-based industry – company profiles … (2/2)

K S Oils Limited 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 crushing capacity of 1,475 metric tonnes of mustard seed per day. The plant also

has an in-house packaging unit. In 2009-2010, a plant at Guna has been commissioned with

1,200 metric tonnes day (mtpd) of oil mill, 1,650 mtpd of solvent extraction and 200 mtpd of

refining capacities. The upcoming plant at Ratlam will have 1,000 mtpd of oil mill, a solvent

extraction plant with capacity of 1,000 mtpd and a refinery of 200 mtpd. The company


Ruchi Soya Industries Limited Ruchis Soya Industries Limited is one of the major agro-based product manufacturers in India.

Product portfolio of the company includes edible oil, soya foods, bakery fat and vanaspati. It is

also the largest exporter of soya foods and lecithin from India. The company has 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$ 2.8 billion in 2009-2010.

Dewas Soya Limited Dewas Soya Limited, a company of Hind Group, commenced operations of its soybean

extraction plant in Dewas, Madhya Pradesh in 1995. The extraction plant and the refinery of the

company has capacity of 900 tonnes per day and 140 tonnes per day, respectively. It also has

150 tonnes per day plant for producing soy flour and grits. The company exports soy meal

internationally.



73

Tourism … (1/2)

• The State Government has identified the tourism sector as one of the key areas for growth.

• In 2009, domestic tourist inflow stood at over 23 million, registering average growth of 34 per cent per annum over last four years. In 2009, foreign tourist arrival was over 201,000.

• The State Government has shortlisted 18 major centres, which attract a large number of domestic and foreign tourists, for comprehensive development.

• The State Government has taken initiatives to promote eco-tourism, wild-life and adventure tourism, leisure and business tourism and pilgrim tourism.

• The Ministry of Tourism, Government of India has identified Chitrakoot as one of the 29 mega tourist centres to be developed across the country. Chitrakoot will be developed as a spiritual and wellness destination.

Source: Tourism Statistics 2009, Ministry of Tourism

Domestic tourist arrivals

International tourist arrivals

Tou

rist

s (m

illio

n)

Tou

rist

s ('

00

0)


7.1

11.1

13.9

22.123.1

0.0

5.0

10.0

15.0

20.0

25.0

2005 2006 2007 2008 2009

160.8186.6

234.2251.7

201

0.0

50.0

100.0

150.0

200.0

250.0

300.0

2005 2006 2007 2008 2009


74

Tourism … (2/2)

Major places of tourist interest in Madhya Pradesh are as follows:

• Kanha: One of the largest wild-life sanctuary in Asia.

• Khajuraho: has some of the most famous sculptures in the world.

• Bhimbetka: has the oldest cave paintings in the world.

• Sanchi: houses the oldest Buddhist stupa in the world.

• In addition, the state has nine national parks and 25 game sanctuaries.


Tourist map of Madhya Pradesh


• A number of festivals such as All India Kalidasa festival, Tansen samaroh (Gwalior), Lokranjan and Khajuraho dance festival (Khajuraho) are celebrated in the state, which attracts tourists.


75

Forest-based industries

Forest map of Madhya Pradesh • Madhya Pradesh has forest area of 94,689.4 sq km, which accounts for nearly 31 per cent of the total area of the state.

• With a share of nearly 12 per cent of the total forest area of the country, Madhya Pradesh has the largest area covered by forest among all the states in India.

• Forest-based industries are key contributors to the economy of the state (as of 2007-08, forestry and logging contributed US$ 546 million) and also provide employment to a large part of the population (estimated 30 million man-days per year).

• Madhya Pradesh accounts for nearly 25 per cent of all tendu leaves produced in India. The average annual production of tendu leaves in the state is around 2.5 million standard bags.

• In 2009-2010, 243,000 cubic metre of timber was produced and the total revenue received from sale of forest products was US$ 170 million.




76

IT and ITeS

IT parks

Crystal IT Park (5,50,000 sq ft) Indore

Hardware and Software Technology Park (200 acres)

Bhopal

Software Technology Park (1,00,000 sq ft)

Indore

IT Park (50 acres) Gwalior

IT Park (90 acres) Jabalpur

IT projects in MP

• The state has optical fibre backbone of over 24,000 km that cover its 313 developmental blocks across 45 districts.

• The state is home to the country‟s first Indian Institute of Information Technology and Management (IIITM), which is located in Gwalior.

• Five information technology parks, located at Bhopal, Indore (2), Gwalior and Jabalpur, are at various stages of development.

• All the IT parks in the state has been given SEZ status.

• The IT policy of the state provides incentives to the investors in the information technology sector.

• A government society MAP_IT headed by the Chief Minister of the state and represented by government and industry has been established to implement the IT policy and propel the growth of IT in Madhya Pradesh.

Hardware & Software

Technology Park, Bhopal

Crystal IT Park, Indore

Software Technology Park,

Indore

IT Park, Gwalior

Jabalpur IT Park, Jabalpur




77

Mineral reserves as percentage of India‟s reserves

Mineral-based industry… (1/3)

• The state has vast mineral deposits of diamonds, slate, pyrophyllite, diaspore, coal, limestone, copper ore and manganese among others.

• In 2007-08, mining and quarrying contributed US$ 1.7 billion to the GSDP of the state.

• Madhya Pradesh is the sole producer of diamonds in India. Besides, the state is the largest producer of minerals such as pyrophyllite and copper.

• The state has over 60 per cent of the total national reserves of copper ore.

• 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: Directorate of Geology and Mining, Madhya Pradesh

As of 2005

100.065.4

61.5

50.0

36.3

19.9

11.8

10.0

7.8

6.3

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Diamond

Diaspore

Copper Ore

Pyrophyllite

Rock Phosphate

Manganese Ore

Dolomite

Coal Bed Methane

Coal

Limestone



78

Mineral-based industry… (2/3)

Reserves and production of minerals in Madhya Pradesh

^Reserve: proved and probable

**Unit for diamond reserve in thousand carat #As of January 2006

*Production between March and December 2008

Source: Directorate of Geology and Mining, Madhya Pradesh

NameReserves^ as of 2005

(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 ** 1,205 100.0 498 100.0

Pyrophyllite 10.3 50.0 118,201 79.1

Copper ore 227.1 61.5 1,202,000 54.8

Diaspore 2.0 65.4 8,701 43.8

Manganese ore 27.5 19.9 439,000 21.3

Clay (others) - - 95,000 19.4

Shale - - 414,000 18.4

Coal# 19,758.4 7.8 51,426,000 15.1

Limestone 795.1 6.25 19,312,000 12.8

Rock phosphate 19.2 36.3 162,000 12.3



79

Mineral-based industry – company profiles… (3/3)

Hindustan Copper Limited Hindustan Copper Limited (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 1.31 per cent

copper concentration. The company possesses an open-pit mine with capacity of 2 million tonnes

per annum, concentrator plant, tailing disposal system and other auxiliary facilities. The plant

contributes to 90 per cent of the production of the company. The company recorded revenues of

US$ 275.2 million in 2009-2010.

NMDC Limited NMDC is a public sector unit involved in mining of wide range of minerals such as iron, copper, lime

stone, dolomite, gypsum, tin, graphite, diamond among others. NMDC is the only organised

producer of diamond in India and produces diamond from its Majhgawan mine at Penna in Madhya

Pradesh. The production capacity at the mine is around 84,000 carat per annum. The mine employs

around 240 persons. The company recorded revenues of US$ 1.3 billion in 2009-2010.



80

Major industrial projects being implemented

Project Sector PromoterInvestment

(US$ million)Location

Sasan ultra mega power project Power Sasan Power Limited 4,347.8 Sasan

Bina refinery RefineryBharat Oman Refineries

Limited2,256.1 Bina

Aluminium smelter (Sidhi) project Aluminium Hindalco Industries Limited 1,673.9 Orgari

Vindhyachal super thermal power project –

stage-IVPower NTPC Limited 1,285.9 Vindhyanagar

Indira Sagar (Narmada Sagar) irrigation project IrrigationNarmada Valley Development

Authority (NVDA)1,119.6 Punasa

Pithead coal-based power (Sidhi) project Power Essar Power Limited 1,065.2 Sidhi

Western Region grid strengthening scheme-IIPower

distributionPower Grid Corporation of

India Limited1,043.5

Madhya

Pradesh*

Coal-based power (Khandwa) project PowerMadhya Pradesh Power

Generating Company Limited978.3 Khandwa

Omkareshwar irrigation project Irrigation NVDA 898.7 East Nimar

Bargi diversion irrigation project – RBC^ Irrigation NVDA 566.1 Jabalpur

Maheshwar hydel power project PowerShree Maheshwar Hydel

Power Corporation Limited532.7 Mandleshwar

*Partially in Madhya Pradesh

^Right Bank Canal

Source: www.projectstoday.com



81

Key industrial projects being planned

Project Sector PromoterInvestment

(US$ million)Location

Integrated steel (Parasia) projectFinished

steelSKS Ispat & Power Limited 1,630.5 Parasia

Coal-based power (Bhokha Dongri) project Power Reliable Thermal Power Limited 1,435.8 Manpur

Coal-based power (Singroli) project Power DB Power Limited 1,304.3 Singroli

Coal-based power (Anuppur) project Power Vandana Power Ventures Limited 1,304.3 Anuppur

Coal-based power (Shadol) project Power Jain Energy Limited 1,260.9 Shahdol

Coal-based power (Gotegaon) project PowerToday Energy (M P) Private

Limited1,174 Gotegaon

Coal-based power (Sidhi) project Power Jaiprakash Power Ventures Limited 1,087.0 Nigrie

Cement (Madhya Pradesh) project Cement Bhushan Steel Limited 869.5 Damoh

Cement (Maihar) project, Phase-I Cement Reliance Cementation Limited 543.5 Satna

Steel (Damoh) projectFinished

steelSPJ Steel & Minerals Private

Limited489.1 Damoh

Cement (Maihero) project Cement Adhunik Corporation Limited 242.6 Satna

Coal-based power (Sidhi) project PowerD V Steel Industries Private

Limited210.1 Sidhi

Source: www.projectstoday.com



82

Contents








83

Key approvals required

List of approvals and clearances required Departments to be consulted

Prior to setting up the unit

RegistrationDistrict Trade and Industries Centre

Allotment of land/shed

Permission for land use District authorities

No-objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board

Approval for construction activity and building plan Development authority

No-objection certificate Fire department

Provisional trade tax registrations Central and state excise departments

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 Central and state excise departments

Registration under Central Sales Tax Act 1956

After commencement of production/activity

Registration Department of Commerce, Industry & Employment

DOING BUSINESS IN MADHYA PRADESH


84

Cost of doing business in Madhya Pradesh

Cost parameter Cost estimate Source

Cost of land

(per sq m)US$ 3 to US$ 11

Madhya Pradesh State Industrial

Development Centre

Hotel costs per room per night

(four-star, five-star hotel)US$ 90 to US$ 120 Leading hotels in the state

Residential rent

(per month for1,200 sq ft apartment )US$ 130 to US$ 220 Industry sources

Commercial rent

(per sq ft per month)US$ 0.7 to US$ 1.1 Industry sources

Power cost (industrial, high tension)

Monthly fixed charges: US$ 3.5

(11KV) to US$ 7.4 (132 KV)

Energy charges: US 7.3 cents per

kWh (11KV) to US 6.5 cents per

kWh (132 KV)

Madhya Pradesh State Electricity Board

Labour (man year) US$ 1,075 to US$ 1,160Department of Labour, Government of

Madhya Pradesh



85

Key nodal agencies in Madhya Pradesh

Department of Commerce,

Industry & Employment

The department is responsible for industrialisation in the state by way of development of small,

medium and large scale industries and new investment. 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.



86

Contact list

Key agency Contact information

Department of Commerce, Industry & Employment

Vindhyachal BhawanBhopal-462 004, Madhya PradeshPhone: 91-755-255 1534E-mail: [email protected] Website: http://www.mpindustry.org

District Trade and Industries Centre

District Trade and Industries CentreVindhyachal BhawanBhopal-462 004, Madhya PradeshPhone: 91-755-255 1015

Madhya Pradesh State Industrial Development

Corporation

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: [email protected], [email protected]

Website: www.mpsidc.org



mailto:[email protected]

mailto:[email protected]

http://www.mpsidc.org/

87

Annexure

Exchange rates

Year INR equivalent of 1 US$

2000 46.6

2001 48.3

2002 48.0

2003 45.6

2004 43.7

2005 45.2

2006 45.0

2007 42.0

2008 40.2

2009 46.0

2010 47.4

Average for the year



88

India Brand Equity Foundation (“IBEF”) engaged

ICRA Management Consulting Services Limited (IMaCS)

to prepare this presentation and the same has been

prepared by IMaCS in consultation with IBEF.

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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

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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 IMaCS‟s and IBEF‟s knowledge and belief, the

content is not to be construed in any manner whatsoever

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