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Overview
Overview Madhya Pradesh (MP) – State that means business
MP is the second largest State in the Country stretching over 308,000 sq kms.
The State is blessed with large mineral resources of coal, diamond, limestone, methane etc.
MP is among the top 4 states of the Country for industrial investments.
Economic Snapshot Madhya Pradesh is emerging as a key growth center for the Country
Advantage MP Madhya Pradesh has one of the upcoming industrial base in India
Power Electricity generation capacity at present is 6,449.25 MW and estimated to rise to a surplus in 2008-09
MP is rich in low grade coal suitable for power generation.
Potential of hydro-energy generation.
Installed power capacity (MP’s share)
Hydel Power Generation: 852.7 MW*
Thermal Power Generation: 2,147.5 MW*
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*Ministry of Power (powermin.nic.in) **Source: Indiastat.com (as on 23 Feb 2006)
Enabling Infrastructure
• The State is well connected with the rest
RAILWAY NETWORK
of India with almost 425 trains passing
MP IS CENTRALLY LOCATED AND WELL
through the State on a daily basis. Of
CONNECTED WITH ALL MAJOR CITIES IN INDIA
these 175 trains pass through the State
• 25 airstrips.**
• Convenient air links from key Indian
GWALIOR cities like Delhi & Mumbai to Bhopal,
Jabalpur, Gwalior, Indore and
AIRPORTS
Khajuraho.
KHAJURAHO • 5 operational airports.
• Indore airport has the capability of
INDORE BHOPAL
handling international cargo.
JABALPUR
• An international airport proposed in
Bhopal.
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*Source: Department of Road Transport & Shipping (morth.nic.in) **Source: www.destinationmadhyapradesh.com
Madhya Pradesh: A Preferred Investment
Destination
31% of the State under forest Over 2,000 kms of roads India’s 1st operational Offers diverse tourists destinations
cover with a largely unexploited being developed with Greenfield SEZ at Indore catering to various segments of
species of rare, valuable Private Partnership (BOT) tourism such as religious (Bhojpur),
medicinal- herbal plants eco/ adventure (Panchmari), heritage
(Sanchi, Khajuraho) tourism etc.
Availability of coal and natural gas Over 144 BCM of coal bed 12 blocks with reserves
(G.A.I.L pipeline) along with support methane reserves available totalling 2,585 million tons
from Government to make investment of coal has been identified
in Thermal Power Plants lucrative
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*Source: www.mpsidc.org & Brochure: MP Means Business
MP: The Right Place with the Right Environment
Savings in Office Space Rates
(A comparison of rates in Central Business Districts)
Fastest mover* in overall
DESTINATION MADHYA PRADESH Mum bai
150
Hyderabad Pune
Delhi
(740 Kms)
(MPV - 789.5)
Fastest mover in
Ahmedabad Bhopal and Indore have substantial cost
infrastructure development. (570 Kms)
(MPV - 220.63) advantages, even when compared to other Tier
III and IV cities.
Chandigarh
Cost of skilled labour is USD
2.4/day vis-a-vis USD 3.5 –
USD 4.0/day in metros
The cost of land is one of the lowest in the Country.
MP is centrally located. The State is at an easy distance from
Even central hubs such as Indore and Bhopal fare
* Fastest mover is the State where the rate of all the key consumer markets in the Country. well against other cities in terms of low land cost.
improvement between 2003 & 2006 was greater
than that between 1991 & 2003
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**Source: India Today (September ‘06 Issue) Source: (Reference: RK Swamy) - Distances rounded off
Industrial Policy: Catalyst for the
Investments
The Government of MP has devised an investor friendly industrial policy, SPECIAL INCENTIVES
which is aimed at achieving global competitiveness. The policy emphasizes
• Special package for Mega Projects on project basis by apex level
on industrial growth in the state through adopting cluster approach, investment promotion empowered committee headed by the Chief
establishing specialized infrastructure and offering favourable incentives. Minister.
• Industrial investment promotion assistance – 50% to 75% of commercial
The main thrust of this policy is: tax for 3-10 years
• Concessional registration charges and stamp duty exemption for
• Establishment of a Madhya Pradesh Trade and Investment Term Loans.
Facilitation Corporation which would take decisions about • Interest subsidy on term loan for 5 – years @ 3% to 5%.
rationalization of taxes, facilities of mega projects and other related • For thrust sector industries, 25% capital subsidy would be provided
limiting up to a maximum of USD 56,000
matters.
• Land on 75% concessive rate for Mega Projects limited to USD 4.4
million.
• Enacting an Industrial Facilitation Act and to change the rules of
• Entry tax exemption for 5 years.
business with a view to make single window system decisive and result
• 5 years electricity duty exemption on captive power generation
oriented. • 15% capital subsidy to SSI up to USD 33,000 in backward areas
• Developing infrastructure for supporting the identified industrial • Infrastructure grant up to USD 0.22 million crore for developing private
sector industrial parks
clusters
• Partial reimbursement for Project report, ISO Certification, Patent and
Technology Purchase cost
• Reviving closed down/ sick industrial units by granting special packages.
• Attractive incentive schemes.
Crystal IT Park Indore
CLUSTER APPROACH
SPECIALIZED INFRASTRUCTURE
• Indore – Pharmaceutical, Textile, Food Food Parks Mandsaur, Khargone, Chhindwara,
Processing, IT, Auto Components Hoshagabad, Mandla and Bhind
• Bhopal – Engineering, Biotechnology, Herbal, Stone Park Katni
IT, Food Processing
• Jabalpur – Garment, Mineral, Forest & Herbal, Herbal Park Rewa
Food Processing Granite Park Chhatarpur
• Gwalior – Electronics, IT, FMCG, Engineering,
Food Processing Life Sciences Project Bhopal
• Rewa – Refractories, Lime Stone, Forest Based Apparel Park Indore (SEZ)
• Sagar – Mineral Processing
Gems & Jewellery Park Indore
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Doing Business Made Easy Through
MPAKVN
In a bid to build a competitive environment; industries and their ancillaries would be promoted in clusters based on the availability of raw materials,
skilled labour and market potential. Under this Industrial Policy through Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd (MPAKVNs)
scheme, the State Government, has identified industrial clusters. Many of the industrial giants have their establishments in these areas, however 44% of
developed area is still untapped and open for investment.
Area Developed: 1,330 Hectares Area Developed: 2,262 Hectares Area Developed: 790 Hectares Area Developed: 273 Hectares
JABALPUR AKVN
Allotted: 125 Hectares Allotted: 115 Hectares
GWALIOR AKVN
BHOPAL AKVN
REWA AKVN
Units established: 286 Units established: 326
Units established: 52 Units established: 121
Major Groups:HEG, Crompton Major Groups: JK, Surya Roshini,
Major Groups: Raymond, Hindustan Major Groups: Birla, Jaypee
Greaves, P&G, Godrej, Lupin, IFB, Godrej, Grasim, Cadbury, Hotline,
Crompton Greaves Petroleum, PBM, Ayur
Oswal, Nahar Special Infrastructure: Integrated
Special Infrastructure: ICD, Food Special Infrastructure: ICD, Food Special Infrastructure: Stone Park, infrastructure development centres
Hectares
Rewa, Waidhan
Major Groups: Tata, Ranbaxy, Eicher,
Total allotted area 3,089
Bridgestone, Hindustan Motors, Kinetic, Hectares
SRF, S Kumars, Gajra, Nicholas Piramal, Mandideep,
Pillukhedi,
Mandideep Phase II Total units 1,360
Indorama, IPCA, Bhilwara established
Borgaon, Maneri,
Pithampur, Kheda, Purena
Special Infrastructure: SEZ, Crystal IT
Dewas, Maksi, Growth centres 19
Park, Food Park, Apparel Park Megh Nagar
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Source: MPSIDC
Sector Profile
Roads
Sector Profile: Roads
Roads: Motoring Away
Way Forward
Connecting Further
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Roads - Motoring Away
• India has one of the largest road networks in the world (over 3.3 million km). Indian Road Network*
The roads carry nearly 70% of freight and 85% of passenger traffic in the Indian road network of over 3.31 million Km. is
second largest in the world and consists of :
country.
Length (In Km)
• Government expenditure on roads in India is significant - 12% of capital and
Expressways 200
3% of total expenditure. Investment in the road sector is expected to touch
National Highways 66,590
USD 66.50 billion in 2005-07. As per National Highways Authority of India
State Highways 1,28,000
(NHAI), a total of 23,546 kms of roads would be constructed in the next two
Major District Roads 4,70,000
years. This construction would be conducted under following four programs,
Rural and Other Roads 26,50,000
namely:
Total Length 3.31 million km (Approx)
Golden Quadrilateral (Program Under NHAI)
• As per a recent World Bank study, the cumulative funding shortfall over the Status of National Highways as on 31st July, 2006*
10 year period is estimated at USD. 23.22 billion , approximating 39% of the Single Lane/Intermediate Lane 32%
total requirement. The funding gap assumes that all the road user charges Double Lane 56%
generated on the highways are returned to the highway sector. If the current
proportion of road-user charge revenue is returned (56%), then available Four or more Lanes 12%
funding for highways would be less than the maintenance needs, and the
funding gap would rise to USD 39.11 billion.
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*Source: National Highway Authority of India (www.nhai.org)
MP: Connecting India
• MP has a well developed transport infrastructure of roads, rails ROAD MAP OF MP
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Source: NHAI (www.nhai.org) Distances rounded off
MP: Offering Specific Incentives
• In terms of infrastructure, roads in particular has been recognised FEATURES OF MP BOT SCHEME
as the thrust area by the Government of MP.
• Foreign investments in the development of selected stretches
• In order to promote involvement of the private sector in
of State Highways to maintain and operate them generally for a
construction and maintenance of roads, the Government has
period up to 30 years (concession period) after opening the
decided to offer projects on a Build-Operate-Transfer (BOT)
facility for traffic and the entrepreneur is permitted to collect and
basis. retain toll as approved by the Government
• Private sector participation initiative has been taken by MP • Private entrepreneurs will design, construct, maintain and
Government as large funding amounts are required for such mega operate the facility from their own resources or funds borrowed
ventures. from financial institutions, banks, open market etc.
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MP: Offering Specific Incentives
• The State Government is also focusing on the development of OTHER SUPPORT FROM THE GOVERNMENT
the National Highways that run through the State to promote 1. Project Implementation
the participation of private investors. These works include
• The entrepreneurs will enjoy full freedom in carrying out the
the following: assigned project. However, they will have comply with
• Rehabilitation of the roads certain standards, safety of structures, specifications,
satisfactory operations and management as laid by the
• Maintenance Government.
• Construction of new patches • The Public Works Department (PWD) will play a major role
in approvals and implementation.
• For NHDP in particular, the private sector has responded
enthusiastically. Under this programme, projects valued at
2. Registration of entrepreneurs under special category
over USD 1.33 billion are being implemented. The NHDP has
• The State Government has registered entrepreneurs for
been extended to cover a 50,000 km road network, and
carrying out work on a B.O.T. basis.
these future works will be undertaken on a BOT basis (through
toll or annuity). • 35 firms have already been approved under this category
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Source: www.mp.nic.in/pwd
Government Initiatives: MP Road Policy
• The main aim of the MP Road Policy is to work towards the up MADHYA PRADESH ROAD POLICY
participation in mega ventures. • Improvement of existing State road network system to 2 lane/ 4
lane roads to cater the need of the projected traffic.
• The major roads in the State have been rehabilitated or have been
• To enhance the road infrastructure in towns and cities.
taken up for rehabilitation. The State has come up with road
• To effectively utilise the present resources.
renewal programmes under which maintenance of the existing
• To constantly update the highway technology by adopting
road infrastructure will be undertaken. The envisaged activities will modern techniques of construction and training of department
be according to the following renewal regime: personnel.
• Major District Roads - One sixth of the road length every year
• All the major towns and district headquarters are linked with roads
having high quality surfacing and riding comfort
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MP: An Investment Destination
• The State Government of MP has taken initiatives to improve • All the divisional headquarters have been connected to the
the condition of the roads on a priority basis. The budgetary State capital by road. It is now proposed that all the district
allocation for roads has been increased from USD 90 Mn in headquarters will be connected to the Divisional
2003-04 to around USD 210 Mn in 2005-06. headquarters.
• In the past 2 years, 12,500 kms of roads were constructed SOME SUCCESSFULLY COMPLETED BOT PROJECTS
which is now projected to increase to 40,000 kms more in the Name of the Project Length (Kms) Project Cost (Mn USD)
next 3 years Dewas – Ujjain - Badnawar 98.26 11.09
• The State Government is encouraging the involvement of Hoshangabad – Piparia - Panchmarhi 126.00 12.66
private sector to take up the projects on a BOT basis. Hoshangabad – Harda – Khandwa 185.00 18.00
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Way Forward…
The State Government has already completed the work on a total of 2977.25 km length of roads with the total cost of USD 361.22 bn*.
There are various projects where the Government is seeking private partner investment. Following are some of the identified projects that
are proposed to come up in the near future. Many of these high density roads will be developed under BOT/ private development
methods. This offers a significant opportunity for infrastructure players to invest in the sector.
B.O.T. PROJECTS (PROPOSED) ADB PHASE III (STATE HIGHWAY PROJECTS COMING UP)
S.No Name of project Length Estimated cost (Mn S.No. Name of project SH no. Total length (kms)
(kms) USD)
1 Shivpuri – Sheopur – Pali 06 143.60
1 Sehore – Dewas 142 ~103.00
2 Kurwai – Chanderi – Pichoore 19 183.00
2 Lebad – Nayagaon 250 ~184.00
3 Bareli – Piparia 19 32.00
3 Chandrapur – Badwani 100 ~12.50
4 Damoh – Hata – Amanganj 49 112.00
4 Matkuli – Tamia – 108 ~21.00
Chindwada 5 Chhilpi – Baiihar – Balaghat 26 135.00
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Source: mprdc.nic.in
Connecting Further
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