MADHYA PRADESH - IBEF• Madhya Pradesh adds around 270,000 graduates to the workforce each year, of...

11MARCH 2017 For updated information, please visit www.ibef.org

MADHYA PRADESH THE LAND OF DIAMONDS

MARCH 2017 (As of 24 March 2017)

22MARCH 2017

❖ Executive Summary …………….………. 3

❖ Advantage State ………………………… 4

❖ Vision 2018 ………………………….…… 5

❖ Madhya Pradesh – An Introduction …… 6

❖ Budget 2016-17…….………………..…. 17

❖ Business Opportunities …………..….... 41

❖ Doing Business in Madhya Pradesh .... 71

❖ State Acts & Policies …………..….…... 72

For updated information, please visit www.ibef.org


MARCH 2017


EXECUTIVE SUMMARY

Strong economic growth• GSDP of Madhya Pradesh grew at a compound annual growth rate (CAGR) of 11.86%

during 2005-06 to 2015-16.

Rich in natural

resources

• The state is rich in natural resources: fuels, minerals, agriculture & biodiversity.

• Madhya Pradesh has ample reserves of coal & coal-bed methane (8.38% of India’s total

coal reserves & 218.04 BCM of methane).

• The state has the largest reserves of diamond & copper in India.

• Madhya Pradesh has significant reserves of limestone, manganese & dolomite.

Potential for tourism

• Madhya Pradesh boasts of rich ancient cultural & religious heritage.

• Due to a thick forest cover, the state has immense potential for wild life, adventure & eco-

tourism.

Infrastructure support

• Due to its centralised location, Madhya Pradesh has excellent connectivity. Many FMCG

companies have moved their warehouses here to save on logistics expenses.

• Upcoming theme based SEZs near Jabalpur, industry parks in Indore & food parks at

multiple locations aim to promote sectoral growth.

• MP is emerging as a solar power hub & is targeting generation of 2,650 MW of solar

power by 2017.


Source: TechSci Estimates based on “Advanced Estimates” provided by Directorate of Economics

and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas

44MARCH 2017 For updated information, please visit www.ibef.org1 From Bhopal

Strategically located business hub

• The state is centrally located in India. Major consumer goods

multinationals are situated in Madhya Pradesh in order to

access major consumer markets & metro urban communities

like New Delhi (740 km1), Mumbai (780 km1), Kolkata (1,350

km1) & Chennai (1,435 km1)

• Geographical proximity with the automotive hub of NCR has

favourably impacted Madhya Pradesh’s auto ancillary

industry. The state’s well developed automotive cluster is

now home to around 30 auto component & ancillary units.Advantage

Madhya

Pradesh

ADVANTAGE MADHYA PRADESH


Attractive investment avenues

• With around 33% of the region under forests, Madhya Pradesh has an enormous potential for drug, wood & agro-based commercial enterprises. Ideal soil & climatic conditions have made it a primary producer of coarse cereals, oilseeds & soybean in India.

• The cluster-based advancement methodology promotes investments in automotive, textiles & biotechnology.

• Plentiful limestone & coal reserves give development avenues for the cement industry.

• A rich cultural heritage, scenic beauty & wildlife sanctuaries offer a promising tourism industry. Indore is all set to be the new IT capital with TCS & Infosys opening their offices.

Policy and infrastructure support

• Madhya Pradesh offers distinctive monetary & strategy/policy

incentives for organisations under the Industrial Promotion Policy-

2010 & Action Plan, other than strategies/ policies for IT,

biotechnology, tourism & SEZs. To pull in investors and promote

entrepreneurs, the state government has selected TRIFAC, an

agency that encourages a single window system, for speedy

approvals of different clearances & consents.

• The state government has made some well-planned infrastructure

investments for roads & railroad systems. Government offers

various subsidies under ‘Industrial Investment Promotion

Assistance (IIPA) under 2014 Schemes’ for investment in

development of road, electrification, water, industrial parks, etc.

Rich resource pool

• Madhya Pradesh adds around 270,000 graduates to the

workforce each year, of which around 90,000 have technical

skills. At labour costs of US$ 3.7 per day, the state has a

significant cost advantage over metros.

• The state houses some of the country’s most reputed institutes

including Indian Institute of Management, Indian Institute of

Foreign Management & Indian Institute of Technology.


MADHYA PRADESH VISION 2018


Agriculture

Skill

development

Infrastructure

Transport

HousingInvestment

promotion

Tourism

• Expand the outreach of

agriculture technology &

irrigation to remote farms.

• Promote farm level

diversification and value

addition.

• Connect all villages through

world class highways

• To be a leader in renewable

energy & green technology

• Keep the state power surplus by

addition to the power generation

capacity

• Skill development by expanding

training infrastructure & capacity

to aid 1 million youth in attaining

wages & self employment

• Develop the transportation

network to enhance rural

connectivity

• Reform the institutional

machinery for creating public

transport facilities

• Improve civic infrastructure,

including public & household

sanitation facilities

• Expand availability of

affordable housing

• Enhance the ease of doing

business for the benefit of

investors

• Attract higher investments in

manufacturing, services &

labour intensive sectors

• Make the state a world class

tourist destination

• Promote religious, adventure

& heritage tourism & attract

private investment

Environment • Promote social & agro forestry

• Revitalise ground water

resources

• Private sector participation in

maintaining waste disposal &

water conservation

Vision 2018

Source: Government of Madhya Pradesh


MADHYA PRADESH FACT FILE

Madhya Pradesh is located in central India. The state is

surrounded by Uttar Pradesh in North, Chhattisgarh in East,

Maharashtra in South, Gujarat and Rajasthan in west.

The most commonly spoken language of the state is Hindi.

English and Marathi are the other languages used.

Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of

the key cities of the state.

There are 11 agro-climatic conditions and a variety of soils

available in the state to support cultivation of a wide range

of crops.

Source: Government of Madhya Pradesh website, National Informatics

Centre Madhya Pradesh

ParametersMadhya

Pradesh

Capital Bhopal

Geographical area (sq km) 308,000

Administrative districts (No) 51

Population density (persons per sq km) 236

Total population (million) 72.6

Male population (million) 37.6

Female population (million) 35.0

Sex ratio (females per 1,000 males) 931

Literacy rate (%) 70.6


Source: Maps of India

77MARCH 2017

ParameterMadhya

PradeshAll states Source

Economy 2015-16 2015-16

GSDP as a percentage of all states’ GSDP 4.16 100.0TechSci Estimates based on “Advanced Estimates”

provided by Directorate of Economics and

Statistics of Madhya Pradesh

GSDP growth rate (%) 16.6 8.71TechSci Estimates based on “Advanced Estimates”



Per capita GSDP (US$) 1,188.98 1,546TechSci Estimates based on “Advanced Estimates”



Physical Infrastructure

Installed power capacity (MW) 18,917.16 305,554.25 Central Electricity Authority, as of August 2016

Wireless subscribers (no) 64,379,812 1,078,422,215Telecom Regulatory Authority of India, as of

October 2016

Internet subscribers (no) 21,270,000 367,480,000Telecom Regulatory Authority of India, as of

September 2016

National Highway length (km) 5,193.57 100,087.08 NHAI & Roads and Building Department

Airports (no) 5 125 Airports Authority of India


MADHYA PRADESH IN FIGURES … (1/2)


88MARCH 2017

ParameterMadhya

PradeshAll states Source

Social Indicators

Literacy rate (%) 70.6 73.0 Census 2011

Birth rate (per 1,000 population) 26.3 21.6 SRS Bulletin

Investment

FDI equity inflows (US$ billion) 1.291 288.63Department of Industrial Policy & Promotion,

From April 2000 to March 2016

Industrial Infrastructure

PPP projects completed & operational (no) 110 1,246DEA, Ministry of Finance, Government of India,

July 2016

Operational SEZs (No) 1 186Ministry of Commerce & Industry, Department

of Commerce, July 2016

1Including Chhattisgarh

PPP: Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System


MADHYA PRADESH IN FIGURES … (2/2)


99MARCH 2017

At current prices, the gross state domestic

product (GSDP*) of Madhya Pradesh for 2015-

16 stood at US$ 86.32 billion.

Between 2005-06 and 2015-16, GSDP of the

state grew at a CAGR of 11.86%.

Source: GSDP* - “Advanced Estimates” provided by Directorate of

Economics and Statistics, Government of Madhya Pradesh

GSDP of Madhya Pradesh at current prices (in US$ billion)


ECONOMIC SNAPSHOT – GSDP


28.15 32.0340.1 42.75 48.08

57.766.49 68.52

74.884.27 86.32

20

05-0

6

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06-0

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1010MARCH 2017

The net state domestic product (NSDP#) of

Madhya Pradesh was about US$ 77.55 billion in

2015-16.

During 2005-06 and 2015-16, state’s NSDP

grew at a CAGR of about 12.06%.

NSDP of Madhya Pradesh at current prices (in US$ billion)


ECONOMIC SNAPSHOT – NSDP


Source: NSDP# - “Advanced Estimates” provided by Directorate of Economics

and Statistics of Madhya Pradesh, Government of Madhya Pradesh

24.83 28.2835.49 38.03 42.74

51.059.05 61.61 67.4

75.6 77.55

20

05-0

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1111MARCH 2017

The state’s per capita GSDP^ in 2015-16 was US$ 1188.98

in comparison with US$ 389.4 in 2005-06.

Per capita GSDP of the state increased at a CAGR of

10.78% during 2005-06 and 2015-16.

Source: Per Capita GSDP^ - calculated using GSDP in million

US$/population in million

Per capita GSDP of Madhya Pradesh at current prices (in US$)


ECONOMIC SNAPSHOT – PER CAPITA GSDP


427 477587 616 680

805.0912 926 995.0

11211188.98

20

05-0

6

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06-0

7

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07-0

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08-0

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1212MARCH 2017

The state’s per capita NSDP& in 2015-16 was US$ 1068.26

in comparison with US$ 377 in 2005-06.

Per capita NSDP in the state increased at a CAGR of

10.98%, during 2005-06 and 2015-16.

Source: per capita NSDP& - calculated using NSDP million US$/ Population in million

Per capita NSDP of Madhya Pradesh at current prices (in US$)


ECONOMIC SNAPSHOT – PER CAPITA NSDP


377 422520 548 604

711.0810 828 896.0

10061068.26

20

05-0

6

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7

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ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP


In 2015-16, the tertiary sectorµ contributed 43% to the state’s

GSDP at current prices, followed by primary sectorµ with a

contribution of 39.23% & secondary sectorµ contributing

17.8%.

At a CAGR of 15.32%, the primary sector witnessed the

fastest growth among the 3 sectors, during 2004-05 to 2015-

16. This was driven by agriculture, forest & logging & fishing.

The tertiary sector expanded at a CAGR of 11.37% between

2004-05 & 2015-16. Growth has been driven by trade, hotels,

real estate, finance, insurance, transport, communications &

other services.

The secondary sector expanded at a CAGR of 7.69% between

2004-05 and 2015-16 driven by manufacturing, electricity, gas

& water supply & construction sectors.

Madhya Pradesh will be the 1st state in India to release a

happiness index in 2018. The index, based on questionnaires

will assist the government in gauging the happiness quotient

of people in India.

A 4-member team of the newly constituted happiness

department is to visit Bhutan in March 2017, to study &

understand the Bhutanese model, to execute, implement &

achieve the objective. The government has passed an amount

of US$ 0.71 million in the budget, for the same.

Source: Sector-wise %share of GSDPµ - “Advanced Estimates”

provided by Directorate of Economics and Statistics of Madhya

Pradesh, Government of Madhya Pradesh

GSDP composition by sector

CAGR

15.32%

11.37%

7.69%

28%39.23%

27%7.80%

45% 43%

2004-05 2015-16

Primary Secondary Tertiary

1414MARCH 2017

Source: MP State Facts Profile

Department of Agriculture and Cooperation, National Horticulture

Board, TechSci Research1Thousand bales of 170 kg each

Crop

Annual production in

2015-16

(‘000 metric tonnes)

Wheat 15,644.1

Fruits 6,290

Vegetables 14,797.74

Sugarcane 4,716.1

Onion 2,848

Rice 3,408.4

Food grains 27,876.6

Spices 699.10

Honey 1.8520

Coarse cereals 3,658.8

Total pulses 4,820

Agriculture is the main source of livelihood for the people of

the Madhya Pradesh. In 2015-16, the state recorded

utilisation of 22,501.8 thousand hectares of land for

production of horticulture crops.

Wheat, soyabean, gram, sugarcane, rice, maize, cotton,

rapeseed, mustard & arhar are the major crops of the state. In

2015-16, total food grain production in the state stood at

27.88 million metric tonnes.

In 2014-15, total pulses production in the state stood at

around 4.82 million tonnes. In addition, the share of Madhya

Pradesh in the overall production of pulses in India was

around 27.8%.

Madhya Pradesh is the largest producer of pulses, oilseeds

soyabean and gram in the country. The state is the 2nd

highest producer of wheat, masoor & mustard across India. It

is one of the leading producers of garlic & coriander. The

production of wheat, cotton, baajra, corn, gram, soyabean,

mustard, groundnut, paddy, jowar & corn in the state, is above

the national average.

Total budget allocation for the agricultural & allied industries

during 2016-17 is estimated to be US$ 843.42 million.


ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION…(1/2)


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MARCH 2017

As per budget 2016-17, various seminars were conducted during 2015-16, for promotion & development of bio-products as well

as bio-agriculture in the state.

During 2016-17, the government decided to establish custom hiring centre & implement grant schemes for the delivery of

agricultural instruments across the state.

In order to overcome the drawbacks of National Agricultural insurance Scheme, a new scheme – Prime Minister Crop Insurance

Scheme was announced by the Prime Minister, which would be effective from 2016.

Moreover, for agricultural soil, water conservation as well as agricultural research & education, the state government has

allocated an amount of US$ 373.96 million as per the budget 2016-17.

During 2016-17, US$ 1.14 billion would be sanctioned by the state government for irrigation & flood control sector in the state.

Moreover, an allocation of US$ 113.5 million was made by the state government for horticulture & food processing sector.

ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION…(2/2)

Source: State Budget 2015-16


ECONOMIC SNAPSHOT – FDI INFLOWS & INVESTMENTS


According to the Department of Industrial Policy &

Promotion (DIPP), cumulative FDI inflows1, from April

2000 to March 2016, totalled to US$ 1.29 billion.

Power generation & manufacturing were the key sectors

which attracted the majority share of FDI inflow during

2014-15. In addition, the investments in real estate &

services are also gaining momentum.

In 2014-15, exports from Madhya Pradesh reached US$

4.19 billion in value terms, reflecting a CAGR of 8.4%

between 2008-09 & 2014-15

With a capital investment of US$ 488.62 million

Government of Madhya Pradesh approved 6 projects in

January 2017.

FDI equity inflows1, 2008-09 to 2014-15 (US$

million)

Source: Department Of Industrial Policy & Promotion1Including Chhattisgarh;

44 54

451

123

220

119 100 80

1717MARCH 2017

Source: State Budget 2016-17


STATE BUDGET 2016-17


Annual budget allocation in the state, for 2016-17, is proposed to be US$ 9.76 billion.

Sector Budget - 2016-17 (US$ million)

Agriculture & allied activities 843.42

Rural development 1,771.6

Irrigation and flood control 1,144.96

Industry and mining 424.77

Transport 711.61

Science, technology and environment 35.69

General economic services 141.58

Social services 4,635.95

General services 50.66


Madhya Pradesh has 20 national highways measuring

5,184.57 km. The state also has 10,859 km of state

highways.

Development of major roads in the state is managed by

Madhya Pradesh Road Development Corporation

Limited (MPRDC), which executes tasks taken up under

Public–Private Partnership (PPP) & those supported by

Asian Development Bank (ADB). As per the Department

of Economic Affairs, the state had 131 government PPP

projects in the roads sector at various stages of

development.

Under Prime Minister Graamin Sadak Yojana, during

2016-17, the state government has set a target of

constructing around 2,000 km of roads in the state.

For the development of various roads in the state,

allocation of US$ 1.12 billion has been proposed by the

state government

As per the Budget Scheme 2015-16 construction of

7,575 roads with total length of 19,386 km for linking

9,109 villages under Mukhyamantri Gram Sadak Yojana

is targeted by the Government of Madhya Pradesh.

In February 2017, the cabinet sanctioned the renovation

of 10,000 km of rural roads, under the Chief Minister's

Rural Roads Scheme. Source: NHAI, Ministry of Road Transport & Highways, State Budget 2016-1712015-16

Road type Road length (km) (2015)

National highways 5,193.571

State highways 10,859

Major district roads 19,574

Village roads 24,209

Road length 59,835

PHYSICAL INFRASTRUCTURE – ROADS


As per the state budget 2016-17, work on development of

various district roads had started in 2015-16 and the

renovation of these roads is expected to be completed over

a span of three years. However, for this purpose, the state

government is trying to secure a loan from ADB as well as

new development banks.

As of November 2016, the New Development Bank created

by BRICS countries approved a loan of US$ 350 million for

the development of major district roads in the state.

1919MARCH 2017

Madhya Pradesh has around 4,954 km of railway lines & the state

is connected to different states of the country through more than

425 trains which travel on daily basis.

The railway network in Madhya Pradesh primarily falls under the

West-Central Railways, which was formed in 2002 and is

headquartered in Jabalpur. Part of the state is also covered by

Central and Western Railways.

Being centrally located, the railway network in the state assumes

great significance. Madhya Pradesh’s capital, Bhopal is one of the

foremost railway junctions in the country, as 220 trains travel

through the capital alone.

Mineral and agro-based industries in Madhya Pradesh are highly

dependent on the railway network of the state. It supports these

industries by transporting bauxite, limestone, dolomite, clinker,

fertiliser & de-oiled cake.

In February 2015, the state government affirmed the constitution

of Madhya Pradesh Metro Rail Company for the advancement of

light metro projects in Bhopal and Indore.

As per annual budget 2016-17, construction work on phase-I of 28

km long Bhopal metro rail & 31 km long Indore metro rail was

initiated in 2015-16, and is expected to be completed by 2018-19.

For these projects, a total loan of US$ 458.30 million & US$ 1.83

billion would be provided by the central government as well as

Japan International Corporation Agency respectively.



PHYSICAL INFRASTRUCTURE – RAILWAYS


Moreover, during 2016-17, the state government

allocated US$ 69.04 million for construction work on

phase-I of the 28 km-long Bhopal metro rail and 31 km-

long Indore metro rail.

In December 2016, Madhya Pradesh Cabinet approved

the detailed project reports (DPRs) of the Metro rail

projects for Bhopal and Indore, costing US$2.12 billion

2020MARCH 2017

Madhya Pradesh has 5 operating airports at Jabalpur, Bhopal, Indore, Gwalior & Khajuraho.

Indore & Bhopal airports are the busiest airports in the state. In March 2016, passenger traffic at Indore airport reached 141,765

passengers with overall aircraft movement of 1,209 aircrafts. For the same month, passenger traffic at Bhopal airport was 52,037

passengers with overall aircraft movement of 614 aircrafts.

Both Indore & Bhopal airports have strong cargo handling capacity. In March 2016, Indore airport handled 621 tonnes of cargo,

whereas Bhopal airport handled 78 tonnes of cargo. Modernisation work of Bhopal & Indore airports has also been completed. The

government has announced to undertake development of Gwalior & Khajuraho airports under the 12th Five Year Plan.


PHYSICAL INFRASTRUCTURE – AIRPORTS


Source: Airports Authority of India

No. of passengers

Airport 2014-15 2015-16

Indore 1,353,300 1,692,892

Bhopal 416,284 662,615

Airport indicators in Madhya Pradesh

Aircraft movement

Airport 2014-15 2015-16

Indore 14,371 14,858

Bhopal 5,375 7,755

Freight (in tonnes)

Airport 2014-15 2015-16

Indore 6,315 6,992

Bhopal 937 1,153


PHYSICAL INFRASTRUCTURE – POWER … (1/3)


Source: Central Electricity Authority;

(1) – Figures as of August 2016

As of August 2016, Madhya Pradesh had total

installed power generation capacity of 18,917.16

MW, comprising 5,867.62 MW under state utilities,

4,540.47 MW under central utilities and 8,509.07

MW under the private sector.

Of the total installed power generation capacity,

12,216.23 MW was contributed by thermal power,

3,223.66 MW was contributed by hydropower,

273.24 MW was contributed by nuclear power and

renewable power contributed 3,204.03 MW.

Madhya Pradesh is on its way to become a solar

power hub, with 114 projects currently.

The total budget allocation for the energy sector in

the state is estimated to be US$ 3.05 billion during

2016-17.

Installed power capacity (MW)

8,574 9,351

12,90214,259

16,813

18,571 18,917

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17(1)

65%

17%

16%

2%

Thermal Power

Hydropower

Renewable Power

Nuclear Power

Break-up of installed capacity by source of power

generation (2016-171)

Source: Central Electricity Authority1Upto August 2016

2222MARCH 2017

Madhya Pradesh Power Generating Corporation Ltd. is a

state owned company engaged in electricity generation.

The power distribution business is being managed through

3 government-controlled entities: Madhya Pradesh Poorv

Kshetra Vidyut Vitaran Company Ltd., Madhya Pradesh

Paschim Kshetra Vidyut Vitaran Company Ltd., & Madhya

Pradesh Madhya Kshetra Vidyut Vitaran Company Ltd.

Madhya Pradesh Power Transmission Company carries out

intra-state transmission of electricity, State Transmission

Utility & State Load Dispatch Centre.

Madhya Pradesh Power Trading Corporation Ltd. deals with

power trading & other related activities.




Segment Company name

Power generation• Madhya Pradesh Power

Generating Corporation Limited

Power distribution

• Madhya Pradesh Poorv

Kshetra Vidyut Vitaran

Company Limited

(MPPoKVVCL)

• Madhya Pradesh Paschim


Company Limited

(MPPaKVVCL)

• Madhya Pradesh Madhya


Company Limited

(MPMaKVVCL)

Power

transmission

• Madhya Pradesh Power

Transmission Corporation

Limited

Power trading• Madhya Pradesh Power

Trading Corporation Limited

Distributor Area covered

MPPoKVVCLJabalpur, Sagar, Shahdol and

Rewa

MPPaKVVCL Indore and Ujjain

MPMaKVVCLBhopal, Hoshangabad, Gwalior

and Chambal Source: Energy Department-Government Of Madhya Pradesh




Through the Atal Jyoti Abhiyaan, the state government aims to provide round-the-clock quality power supply.

The scheme is currently operational in six districts, namely Jabalpur, Mandla, Shahdol, Umaria, Anooppur and Burhanpur.

Under project name Vindhyachal, NTPC has commissioned the country’s largest power generation plant in the state. Unit-

13 of Vindhyachal TPP-V, with capacity of 500 MW, was commissioned in August 2015. With this the total approved

capacity of 4,760 MW was installed by the company.

The coal based Sasan UMPP aims to build large capacities at low cost. The resultant generated power would be sold at low

tariffs. In April 2015, the 3,960 MW Sasan ultra mega power project has been fully commissioned in Madhya Pradesh. The

project is being developed with an investment of US$ 4.21 billion. As of April 2016, the plant had achieved 100 per cent PLF

(plant load factor).

The Government of Madhya Pradesh allocated US$ 28.1 million for the development and promotion of new and renewable

energy in the state during 2016-17.

2424MARCH 2017

Telecom infrastructure- as of May 2016

Wireless subscribers 64,379,812

Wire-line subscribers 1,035,085

Internet subscribers1

21,270,000

Teledensity (in%) 62.49

Source: Telecom Regulatory Authority of India,

Department of Telecommunications1As of September 2016

According to Telecom Regulatory Authority of India (TRAI),

Madhya Pradesh had nearly 64.37 million wireless

subscribers & 1.035 million wireline subscribers, as of

October 2016.

As of October 2016, teledensity (telephone connections per

100 persons) in Madhya Pradesh was 62.49%.

The state has been identified by Ministry of Home Affairs for

provision of Telecom Connectivity in LWE affected areas.

The scheme is being executed by BSNL.

The state has given consent for establishment of BharatNet/

National Optical Fibre Network (NOFN) project. The project

is planned to connect all gram panchayats through optical

fibre, utilising existing fibres of PSUs viz. BSNL, RailTel &

Power Grid & laying incremental fibre wherever necessary

to bridge the connectivity gap between gram panchayats

(GPs) and blocks, for providing broadband connectivity.


PHYSICAL INFRASTRUCTURE – TELECOM


Some of the major telecom operators in Madhya

Pradesh

Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Vodafone Essar

Idea Cellular

Reliance Communications

Tata Teleservices


DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (1/3)


Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 27 projects costing around US$ 418.65 million

have been sanctioned for the development of urban centres such as Bhopal, Indore, Jabalpur and Ujjain.

Some of the key undertakings are in segments such as roads and flyovers, water supply, tempest-water drainage,

sewerage, solid-waste management and mass rapid transport systems.

The Asian Development Bank (ADB) has funded 16 ventures worth US$ 33.8 million for Bhopal in the regions of water

supply, sewerage and sanitation, tempest-water drainage and solid-waste management. Of the 16 undertakings, two have

been finished and others are at different phases of development.

The state government has built the Madhya Pradesh Urban Infrastructure Fund (MPUIF) for the improvement of urban

framework and the procurement of better administration in the state. MPUIF helps in sourcing funds for projects through

various sources, for example capital markets, line of credits and GOI fund (e.g. JNNURM, UIDSSMT, PFDF, VGF, and

RAY). The fund ensures cost administration and timely implementation of urban framework ventures.

Under the Urban Infrastructure and Governance (UIG) programme of JNNURM, five projects worth US$ 36.4 million

covering cities such as Bhopal, Indore and Ujjain have been approved and are in the transition phase.

Under the first phase of Chief Minister Infrastructure Development Scheme, work on development of roads, gardens,

footpaths, street lights, etc. was completed in across 277 cities of the state during 2015-16.

Under Swachh Bharat Mission, a total of 5,068 seats have been constructed in around 145 thousand personal and public

toilets of the state, as of 2015-16.

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



MARCH 2017


As per the budget 2016-17, following announcements were made for enhancement of urban infrastructure in the state:

Allocation of US$ 1.63 billion has been proposed by the state government for urban administration and development

in the state.

For the second phase of Chief Minister Infrastructure Development Scheme, the state government proposed an

allocation of US$ 42.10 million.

Under Affordable Housing in Partnership scheme, for each dwelling slum area, US$ 86 thousand has been allocated

by the central and the state government.

Provided sanction for the construction of 634 community and 1,77,807 individual toilets under Mukhya Mantri Shahri

Swacchata Mission.

The promotion of e-Governance has been started in the urban region of the state by E-Nagar Palika Project. For

increasing developmental activities in the state, a sum of US$ 1.09 billion will be provided by the government to the

state.

By 2018, the government is also aiming to provide 5,00,000 houses in different cities of the state.

Provided sanction for development of 60,000 houses for the urban poor by an allocation of US$ 248.8 million under

urban development scheme. In addition to this, a sanction of US$ 139.5 million has also been provided for 15,340

houses under Rajeev Awas Yojna.

HDFC Bank is planning to set up 10 new branches in Madhya Pradesh as a part of its expansion plan. In 2016 the

bank had 130 branches in MP, and 8-10 new branches are being planned to be opened in the state in current

financial year.

Source: Budget 2016-17

2727MARCH 2017

Focus areas of urban development in Madhya Pradesh

Water supply Sewerage system Solid-waste management Others

The average per capita water

supply in major cities, such as

Indore, is around 80 litres per day.

Under the JNNURM, cities are

being planned to achieve per capita

water supply of 135 litres per day

between 2015 and 2021.

Sixty seven projects worth US$

243.8 million have been approved

between March 13 and March 2014

and are in the transition phase for

water supply under JNNURM.

During 2015-16, the government

proposed an outlay of US$ 355.87

million for improving rural & urban

water supply under the Water

Supply and Sanitation Scheme.

In cities such as Indore,

around 55% of the

population is connected

to a sewage network.

Under the JNNURM,

the entire population in

the cities will be

connected to the

sewage network.

Three projects worth

US$ 100 million have

been sanctioned in

2006-07 for sewage

treatment under

JNNURM.

Indore and Ujjain generate

around 500 tonnes per day

(TPD) and 160 TPD of

solid-waste, respectively.

Under the JNNURM, the

entire solid waste is

expected to be collected

and treated.

A project worth US$ 10.7

million has been

sanctioned.

Three solid waste

management projects have

been identified in Dewas,

Sagar and Katni.

Two projects worth US$

75.6 million have been

sanctioned between

2006-07 and 2009-10

for improvement of the

drainage systems.

Seven projects worth

around US$ 139.5

million have been

sanctioned for

improvement of the

transport system.

Source: MP Trade & Investment Facilitation Corporation Ltd., JNNURM, Ministry of Urban

Development, Government of India, TechSci Research





DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS … (1/2)


Name of project Sector PPP type StatusProject cost

(US$ million)

Road upgradation (Lebad-Jaora) Project Build-Operate-Transfer (BOT) Transport 64.30Operation and

maintenance stage

Road Upgradation Project (Bankhlafata-Kogawa-

Borawa-Sarvardevala) ProjectNot available Transport 5.14

Operation and

maintenance stage

Road upgradation (Jaora-Nayagaon) Project Build-Operate-Transfer (BOT) Transport 61.73Operation and

maintenance stage

Road Upgradation Project (Bahari-Hanumana)

Project

Design-Build-Finance-Operate-

Transfer (DBFOT)Transport 16.32

Operation and

maintenance stage

Road Upgradation (Bhopal-Dewas) ProjectDesign-Build-Finance-Operate-


Operation and

maintenance stage

Road Upgradation Project (Badwani-Palsood-

Sendhawa) Project

Design-Build-Finance-Operate-


Operation and

maintenance stage

Road Upgradation Project (Ashok Nagar-Vidisha)

Project

Build-Operate-Transfer (BOT)

AnnuityTransport 13.31

Operation and

maintenance stage

Electricity Distribution Project (Ujjain) Not available Energy 10.70Operation and

maintenance stage

Road Upgradation Project (Ashapur-Khalwa-

Singhot) ProjectBuild-Operate-Transfer Annuity Transport 17.28

Operation and

maintenance stage

Dewas-Ujjain-Badnagar-Badnawar Road Project Build-Operate-Transfer (BOT) Transport 7.53Operation and

maintenance stage

Road Upgradation Project (Alirajpur-Jobat) ProjectBuild-Operate-Transfer (BOT)


Operation and

maintenance stage

Source: Department of Economic Affairs


DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS … (2/2)


Name of project Sector PPP type StatusProject cost

(US$ million)

Road Upgradation Project (Waraseoni-Lalbarra) ProjectDesign-Build-Finance-

Operate-Transfer (DBFOT)Transport 6.50

Operation and

maintenance stage

Road Upgradation (Tyonda-Ganjbasoda) ProjectBuild-Operate-Transfer (BOT)


Operation and

maintenance stage

Road Upgradation Project (Umari-Phoop-Pratapur) ProjectDesign-Build-Finance-


Operation and

maintenance stage

Road Upgradation Project (Ujjain-Unhel-Nagda-Ghiloda)

Project

Design-Build-Finance-


Operation and

maintenance stage

Road Upgradation Project (Ujjain-Simhastha) ProjectBuild-Operate-Transfer (BOT)


Operation and

maintenance stage

Road Upgradation (Gwalior-Bhind up to UP Border) Project Build-Operate-Transfer (BOT) Transport 45.85Operation and

maintenance stage

Road Upgradation Project (Uchera-Nagod-Singhpur-

Kalinnjer Road) Project



Operation and

maintenance stage

Road Upgradation (Sheopur-Badora-Khawajapur) ProjectBuild-Operate-Transfer (BOT)


Operation and

maintenance stage

Road Upgradation Project (Tikamgarh-Mehironi) ProjectDesign-Build-Finance-


Operation and

maintenance stage

Road Upgradation (Dehgaon-Bamori) ProjectBuild-Operate-Transfer (BOT)


Operation and

maintenance stage

Road Upgradation Project (Tikamgarh-Jatara-Palera-

Nowgaon) Project



Operation and

maintenance stage

Source: Department of Economic Affairs

3030MARCH 2017

Source: Ministry of Commerce & Industry


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


Indore SEZ

Notified area 1,113.72 hectares

Processing zone 519.95 hectare

Operational26 industrial and 2 trading

units

Number of allotments 42

Number of units operating 41

Investment under

implementationUS$ 62.2 million (9 units)

Exports (2014-15) US$ 489.25 million

The state has one operational SEZ as of July 2016 with the name Crystal IT Park SEZ for IT & ITeS enabled services.

The SEZ aims to provide an international, competitive and hassle-free environment for export-oriented production.

It is exempted from custom duty on import of capital goods, raw material and spares, among others. No licence is required

for imports.

Central excise duty is exempted on procurement of capital goods, raw material and spares among others from the domestic

market. Barring a few sectors, 100% FDI in the manufacturing sector is allowed through the automatic route.

Some of the key companies in Indore SEZ

• SRF

• Flexituff

• India Nets

• New Tech Pipes

• Advance Enzyme Technology

• Ipca Laboratories

• Amulya Exports

• Emerald Tobacco

• Pratibha Syntex

3131MARCH 2017

Source: Special Economic Zones in India- Ministry of Commerce &

Industry, TechSci Research


DEVELOPMENT PROJECTS: SPECIAL ECONOMIC ZONES (SEZs) … (2/2)


Industry Location No of SEZs

Formally approved SEZs as of July 2016

IT/ITeS

Indore, Gwalior,

Jabalpur,

Bhopal

8

Gems and

JewelleryIndore 1

In-principle approved SEZs

Multi-productChhindwara,

Sehore1

As of July 2016, the state had 9 formal approved SEZs that

are proposed to be set up in Madhya Pradesh.

Bhopal, Indore, Gwalior and Jabalpur are the major

locations where SEZs have been approved. These SEZs

have been proposed for IT/ITeS, mineral-based, agro-based

and multi-products.

Industry Location No of SEZs

Notified SEZs as of July 2016

IT/ITeS Indore, Gwalior 5

3232MARCH 2017

Madhya Pradesh had a literacy rate of 70.6%; the male literacy

rate is 80.5% and the female literacy rate is 60.0%.

During 2015-16 (till November 2015), under technical

education, the state had a total of 676 institutions with annual

enrolment of 146 thousand students.

Moreover, under the “Gaon Ki Beti Yojna”, which deals in

providing rural girls with high education, 36.79 thousand girls

were benefited during 2015-16 (till December 2015).

“Make in Madhya Pradesh” is to further the agenda of CM who

recently called upon a business community from the US to

bring their expertise in the social sectors.


SOCIAL INFRASTRUCTURE – EDUCATION.. (1/2)

Source: AICTE, Directorate of Technical Education, Madhya Pradesh, Higher

Education Department- Government colleges of Madhya Pradesh, Madhya Pradesh

Education Portal, National Health Portal, TechSci Research


Reputed institutes of Madhya Pradesh

Indian Institute of Management (IIM), Indore

Indian Institute of Forest Management, Bhopal

Institute of Hotel Management, Bhopal

International Institute of Professional Studies, Indore

Indian Institute of Technology (IIT), Indore

Category Literacy rate (%)

Total 70.6

Male 80.5

Female 60.0

Educational institutions (as of April 2015)

Primary schools 84,011

Total high schools (including private) 6,636

Total higher secondary schools

(including private) 5,211

Government colleges 342

Universities 16

Polytechnic institutes 64

Engineering & architecture colleges 229

Management institutes 266

Medical colleges 13

Dental Colleges 11



MARCH 2017

The state has one approved institute with foreign collaboration for the course of business studies. The name of the institute is

Daly College Business School and is affiliated to De Montfort University, Leicester, UK.

As per budget 2016-17, following announcements were made:

The government proposed an allocation of US$ 3.20 billion, US$ 383.32 million & US$ 129.14 million for the

development of school education, higher education & medical education departments in the state.

Under Rashtriya Madhyamik Shiksha Abhiyan, allocation of US$ 75.61 million was proposed by the state government

during 2016-17.

During 2016-17, the state government is targeting building development of 120 high schools & higher secondary

schools.

The Government of Madhya Pradesh has committed US$ 237 99 million, for expansion of training infrastructure & building

capacity for skill development in the state in January 2017 The scheme will be implemented over a period of 5 years & aims to

generate employment for youth & provide desired skillset & manpower to the industries.

Source: AICTE

SOCIAL INFRASTRUCTURE – EDUCATION.. (2/2)

3434MARCH 2017

Source: Ministry of Health & Family Welfare, Government of India, Sample

Registration System (SRS) Bulletin, 1Per thousand persons, 2Per thousand live births

Health indicators of Madhya Pradesh

Birth rate1

26.3

Death rate1

8.0

Infant mortality rate2

54

Life expectancy at birth (years)

Male (2011-15) 64.5

Female (2011-15) 65.3

During 2014-15, the healthcare services network of Madhya

Pradesh comprised 51 district hospitals, 334 community

health centres, 1,171 primary health centres and 9,192 sub-

health centres.

During 2015-16 (till October 2015), around 965 thousand

beneficiaries were benefited with free services under

Deendayal Hospital Yojana.

The state has a total of 604 ambulances under National

Ambulance Service, using which 479 thousand patients

were benefited during April-October 2015.


SOCIAL INFRASTRUCTURE – HEALTH


Health institutions (2014-15)

District hospitals 51

Primary health centres 1,171

Sub-Health centres 9,192

Community health centres 334

Civil hospitals 66

Homeopathic hospitals 2

Special newborn care units 53

Nutrition rehabilitation centres 316

Gram aarogya kendras 48,959

The state government proposed an allocation of US$

862.18 million for the development of Public Health And

Family Welfare Department in the state, during 2016-17.

Under Public Health Engineering, an allocation of US$

397.10 million was made by the state government, as per

the state budget 2016-17.

3535MARCH 2017

State-level museums in Madhya Pradesh• State Museum, Bhopal

• Central Museum, Indore

• Rani Durgawati Museum, Jabalpur

• Tulsi Museum, Ramvan, Satna

• Maharaja Chhatrasal Museum, Chhatarpur

• Gujri Mahal Museum, Gwalior


CULTURAL INFRASTRUCTURE


Madhya Pradesh’s history dates back to the pre-historic age.

The United Nations Educational, Scientific and Cultural

Organisation (UNESCO) has declared 3 locations in the state

as heritage sites: temples at Khajuraho, Buddhist monuments

at Sanchi & rock shelters of Bhimbetka.

Bhimbetka cave paintings are the biggest repository of

prehistoric art in India. Sanchi Stupa, once a centre of Buddhist

learning, stands unique as one of the most well-preserved

stupas of India. The Directorate of Archaeology, Archives and

Museums, is in charge of the support of 349

memorials/landmarks and 44 museums over the state.

The state government has built up sports academies to

advance games like hockey, shooting, equestrian, water sports

& martial arts. Eminent sports personalities are awarded with

the Vikram Awards, the Ekalavya Awards & the Vishwamitra

(lifetime achievement) Award.

In order to enhance the cultural infrastructure in the state, the

Government of Madhya Pradesh allocated US$ 30.12 million

during 2016-17.

However, for sports & youth welfare in the state, an allocation

of US$ 33.11 million was proposed by the Government of

Madhya Pradesh, as per state budget 2016-17.

Among the cultural festivals of Madhya Pradesh, the

Khajuraho Festival of Dance & the Tansen Music Festival in

Gwalior celebrate classical Indian dance & music. These

festivals are well attended by both domestic & international

tourists. The state government will also provide an amount of

US$ 23.56 million in order to increase the activities related to

culture & archaeology.

Type of museum (no)

State-level museums 6

District-level museums 11

Local museums 6

Site museums 5

District Archaeological Association museums 16

Source: Directorate of Archaeology, Archives and Museums, Government of Madhya

Pradesh; State Budget 2015-16


INDUSTRIAL INFRASTRUCTURE … (1/4)


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

is the central point to coordinate, activate and ensure implementation of mega infrastructure projects.

MPSIDC has identified 19 industrial growth centres to attract medium and large industries & Non-Resident Indians (NRls) to the state

and provide various facilities and concessions to them. For a balanced & sustainable growth of industry across the state, MPSIDC

established 7 growth centres at Bhopal, Gwalior, Jabalpur, Indore, Rewa, Ujjain & Sagar. These growth centres are known as

Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (AKVN).

Infrastructure Bhopal AKVN Gwalior AKVN Jabalpur AKVN

Area developed

(hectares)1,367 2,062 1,312

Growth centres Mandideep, PillukhediMalanpur, Ghirongi, Banmore,

ChainpuraBorgaon, Maneri

Units establishedLarge and medium industries (LMI): 54

Small scale industries (SSI): 558

LMI: 69

SSI: 346

LMI: 17

SSI: 154

Major companies

HEG, Crompton Greaves, Procter &

Gamble, Godrej, Lupin, Oswal,

Vardhman

Surya Roshini, Godrej, Grasim,

Cadbury, JK, Crompton Greaves

Raymond, Hindustan

Petroleum, Ayur

Special infrastructureInland Container Depot (ICD), Food

ParkICD, food park, stone park

Stone park, food park,

mineral & Agri specific

SEZ

Proposed projectEngineering cluster, logistic hub, food

park, plastic park, textile park

Readymade garment park, food

park

Agri SEZ, food park,

textile park, apparel park

Source: MP Trade & Investment Facilitation Corp. Ltd.




Infrastructure Indore AKVN Rewa AKVN Ujjain AKVN Sagar AKVN

Area developed

(hectares)3,332 307.4 431.6 359

Growth centresPithampur, Kheda, Megh

Nagar Rewa, Waidhan, Purena Dewas, Maxi

Purena, Sidhgawa,

Pratappura

Units established LMI:272, SSI: 1213 LMI: 8, SSI: 99 LMI: 35, SSI: 171 LMI: 9; SSI: 199

Major companies

Eicher, Bridgestone,

Hindustan Motors, Man

Force, Flexituff, Kinetic,

Cummins

Birla, JaypeeRanbaxy, S.Kumars,

Gajra, Kirloskar, Tata

Ghadi Detergent,

RSPL (Rohit

Surfactant), Sanmati

Foods

Special infrastructure

Multi-product SEZ, IT SEZ,

Food Park, Apparel Park,

Inland Container Depot

(ICD), IIDC

IIDC Food park, IIDC IIDC

Proposed projects

Auto testing track, food

park, pharma cluster,

namkeen park, logistics

park

Industrial area

Knowledge city, new

industrial area under

the Delhi Mumbai

Industrial Corridor

project

Industrial Area

Source: MP Trade & Investment Facilitation Corp. Ltd., SEZ: Special Economic Zone




Source: MP Facilitation Centre for NRI, Indore Special

Economic Zone, www.indoresez.nic.in, TechSci Research

SEZ: Special Economic Zone

The Industrial Promotion Policy 2010 aims to upgrade

industrial infrastructure & provide land to investment

projects without difficulties.

Under the provision of Madhya Pradesh Investment

Facilitation Act 2008, the state government is keen to

strengthen its single-window system to attract investments.

For a structured growth, the government has divided the

state into 6 clusters: Indore, Bhopal, Jabalpur, Gwalior,

Rewa & Sagar.

The state has excellent infrastructure, with 19 industrial

development parks, 129 industrial areas, 6 food parks, 8

integrated development centres, 3 dry parks, 1 stone park, 1

IT park, 1 SEZ & an apparel park at Indore.

A gems & jewellery park is being developed in Indore to

promote the diamond industry in the state. The government

plans to develop the project on its own, after failed attempts

to find a suitable partner on PPP basis.

State owned NTPC plans to construct a 2,640 MW power

plant in Barethi in Chattarpur district of Madhya Pradesh at

a cost of US$ 3 billion. As of July 2016, the project is still

awaiting clearance from the Expert Appraisal Committee

(EAC) of Union Environment Ministry. The committee has

sought additional information with respect to clearance from

National Board for Wildlife.

Potential clusters

IndorePharmaceutical, textile, food processing,

IT, auto components

BhopalEngineering, textile, biotech, herbal, IT,

food processing

JabalpurGarment, mineral, stone, forest, herbal,

food processing

GwaliorElectronics, IT, FMCG, engineering,

stone, food processing

Rewa Mineral, cement, forest produce

Sagar Mineral processing, stone

Under the Centre’s Plastic Park Scheme, Industries &

Commerce Department is developing plastic parks at an

estimated cost of US$ 27.93 million at Tamot in Raisen

and Billoa district, Gwalior.




Industrial clusters in Madhya Pradesh

Bhopal

Gwalior

Rewa

Sagar

Indore

Jabalpur

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



SMART CITIES

As of September 2015, 7 cities of Madhya Pradesh were

announced to be developed as smart cities.

In an effort to revolutionise the infrastructure of the state,

the state government decided to revamp 7 cities of Madhya

Pradesh, namely Bhopal, Indore, Gwalior, Ujjain, Jabalpur,

Sagar & Satna.

Smart cities in Madhya Pradesh

Cities Population Literacy rate

Bhopal 2,371,061 80.37%

Indore 3,276,697 80.87%

Gwalior 2,032,036 76.65%

Ujjain 1,986,864 72.34%

Jabalpur 2,463,289 81.07%

Sagar 2,378,458 76.46%

Satna 2,228,935 72.26% Source: News Article, Census 2011 & TechSci

Research

Bhopal

Indore

Gwalior

Ujjain

Jabalpur

Sagar

Satna

4141MARCH 2017

Wealth of natural assets including agro-based items, forest

products & minerals, the state’s policy incentives & its central

location have pulled in significant investments in the agro-products,

consumer goods, medications & pharmaceuticals, mines &

minerals, manufacturing & textiles sectors.

The state government is keen to develop a strong mechanical base.

The Madhya Pradesh State Industrial Development Corporation

Limited (MPSIDC) & its subsidiary, Madhya Pradesh Audyogik

Kendra Vikas Nigam Limited (MPAKVN) are the key nodal offices

for development in the state.

Some of the major industrial areas in the state are Bhopal, Sehore,

Raisen, Harda, Mandideep, Dewas, Pithampur, Khandwa, Jhabua,

Dhar, Ujjain, Mandsaur, Ratlam, Jabalpur, Indore, Shajapur, Satna

& Gwalior.

Under Industrial Promotion Policy 2010, the government aims to

promote agro-based & local natural resource-based industries.

Tertiary sector is the largest contributor to the state economy with a

share of 43% of GSDP in 2015-16.

In January 2017, the government approved Pacific Iron

Manufacturing Ltd. for setting up of an integrated steel plant to at an

estimated cost of US$ 49.83 million

The government approved a coated fabric manufacturing plant to

be set up by Mayur Uniquoters Ltd. at Seetapur in Morena, worth

US$ 16.21 million of investment, in January 2017.

The government in January 2017, approved a furniture fittings &

manufacturing unit in Pithampur by Hettich India Pvt. Ltd., with an

investment of US$ 59.20 million.


KEY INDUSTRIES.. (1/2)


Source: Madhya Pradesh State Portal, DIPP1As of May 2016

Year IEMs filedProposed investments

(in US$ billion)

2010-11 226 33.89

2011-12 191 17.34

2012-13 126 1.75

2013-14 114 14.7

2014-15 99 2.03

2015-16 110 2.26

2016-171

28 0.59



MARCH 2017

KEY INDUSTRIES.. (2/2)

In the state budget 2016-17, for the rural

industries, Government of Madhya Pradesh

allocated an amount of US$ 54.94 million. Further,

the work on installation of 25 industrial units over

2,344 hectare land is under process. However,

work on 6 industrial units along with Crystal IT

park, readymade garment park, etc. over an area

of 295 hectares was completed during 2015-16.

After the validation of various self employment

schemes in the state, the government decided to

start the Mukhya Mantri Yuva Udhyami Yojana &

Mukhya Mantri Aarthik Kalyan Yojana.

Work on construction of IT parks in 4 major

regions of the state, including Indore, Gwalior,

Bhopal & Jabalpur, is expected to be initiated

during 2016-17. Moreover, electronic

manufacturing clusters are also being established

in Jabalpur & Bhopal. For these new

establishments, the Government of Madhya

Pradesh allocated an amount of US$ 7.94 million

as per the Budget 2016-17.

With an investment of US$ 2.97 billion, as of

January 2017, Aditya Birla Group is expanding its

business in Madhya Pradesh, in sectors like

cement, retail & telecom.

Key industries in Madhya Pradesh

Auto and auto components Mineral based industries

Textile Manufacturing

Cement Tourism

Agro-based industries IT and ITeS

Forest based industries Logistics & warehousing

Pharmaceuticals Biotechnology

Source: Madhya Pradesh State Portal, State Budget 2016-17


KEY INDUSTRIES – AUTO AND AUTO COMPONENTS … (1/2)


Strategic location of the state, with its proximity to the

automotive hub of NCR, provide key advantages for well-

connected regions of Madhya Pradesh to emerge as auto

clusters.

Supported by facilities such as an auto testing track & auto

research centre, Pithampur region has emerged as a major

auto cluster.

The essential infrastructure foundation existing in the

automotive cluster includes power, water supply,

telecommunication services & roads.

The Pithampur automotive cluster is among the industrial

clusters in India, which have been identified by the central

government for implementation of the Industrial

Infrastructure Upgradation Scheme (IIUS). The scheme

aims at improving the competitiveness of functional clusters

across the country.

It has numerous automotive original equipment

manufacturers (OEMs), such as Force Motors, Eicher

Motors, Hindustan Motors & Mahindra 2-Wheelers, a major

tyre producing unit of Bridgestone & about 30 auto

component & ancillary units.

Some key players

• Eicher Motors Ltd

• Force Motors Ltd

• Hindustan Motors Ltd

• Mahindra Two Wheelers Ltd


KEY INDUSTRIES – AUTO AND AUTO COMPONENTS … (2/2)


Eicher Motors Ltd

Force Motors Ltd

Hindustan Motors Ltd

Mahindra Two

Wheelers Ltd

• Eicher Motors Limited, incorporated in 1982, is the flagship company of the Eicher Group in India and a

leading player in the Indian automobile industry. VE Commercial Vehicles Ltd (VECV), is a 50:50 joint venture

between the Volvo Group (Volvo) and Eicher Motors Limited (EML). The company has a state-of-the-art

manufacturing facility of buses and trucks at Pithampur with a production capacity of 48,000 vehicles, annually

and an auto component facility at Dewas (plant area of approximately 18,000 sq. m.). VECV is setting up a

new engine plant in the existing facility at Pithampur. The engine capacity would be ramped up from 60,000

units to 160,000 units by the financial year 2016-17. The company recorded revenues of US$ 2 billion during

2015-16.

• Force Motors is a vertically integrated automobile company, which designs, manufactures & markets its range

of vehicles – tractors, 3-wheelers, light commercial vehicles, multi-utility vehicles & 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 in 2003. The total revenues recorded by the company stood at US$ 467.48 million

during 2015-16.

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

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

Vehicles (RTV). In technical collaboration with Australian OKA Motor Company, HML manufactures RTVs in

its plant at Pithampur. The company’s total income stood at US$ 0.12 million in 2015-16.

• Mahindra 2-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.


KEY INDUSTRIES – TEXTILES … (1/3)

Source: Madhya Pradesh Business Line , Public-

Private Partnerships in India, Madhya Pradesh

State Industrial Development Corporation


Madhya Pradesh is one of the major cotton producing states of India. In 2014-

15, cotton was grown on an estimated area of 574,000 hectares in the state with

a total production of around 1.75 million bales (170 kg each).

Cotton textile mills are based in Indore, Dewas, Ujjain, Malanpur, Pithampur,

Khargone, Gwalior & Bhopal.

An apparel park is located in the Indore SEZ & would spread over 150 to 260

acres of land. The project is implemented by M.P. Audyogik Kendra Vikas

Nigam (Indore) Ltd.

Indore has been identified as the region for infrastructure development under

the Textiles Centre Infrastructure Development Scheme (TCIDS). The city is a

cluster of the readymade garments industry with over 1,260 garment units.

Extending support to the industry, the state government has announced plans

to upgrade existing apparel clusters at Indore & Jabalpur. The state government

has established a textile park in Chhindwara.

The central government plans to develop a second textile park at Indore, and

US$ 6.6 million would be sanctioned for this purpose.

Textile Research Association and Export Promotion Council are to be set up in

Madhya Pradesh.

During FY 2015-16, Government of Madhya Pradesh proposed the following

outlays: US$ 103.66 thousand for implementation of Intensive Cotton

Development Programme; US$ 2.27 million for supply of electricity to power

loom weavers; US$ 38.19 thousand for institutional training to youth weavers;

US$ 380.69 thousand for integrated cluster development of handloom / power

loom & US$ 297.40 thousand for Handloom Development Scheme.

Some key players

• Century Textiles and Industries Ltd

• Grasim Industries Ltd

• Vardhman Textiles Ltd

• Raymond Ltd

Textile infrastructure in Madhya Pradesh

Composite mills 20

Exclusive weaving units 8

Export oriented spinning units 12

Handlooms 47,000

Looms 6,500

Power looms 43,290

Power loom units 17,524

Rotors 14,348

Spindles 1,414,000

Spinning units 40



Source: The Cotton Corporation of India Ltd, 1 Projected, As per Cotton Advisory Board, * Projected as per Cotton Advisory Board

TechSci Research


To attract investments into the sector, the government has

provided an interest subsidy for 5 years at a rate of 5% for

textile projects and 7% for composite textile projects without

capping. Furthermore, the government provided 100%

assistance in plant & machinery for 8 years under Industrial

Investment Promotion Assistance Scheme.

Production of 329.9 million kg of cotton yarn, was recorded

in the state between April-June 2015.

Under the Comprehensive Handloom Development Scheme

(CHDS) & National Handloom Development Programme

Scheme (NHDP), the financial assistance released in the

last 3 years i.e. 2012-13 to 2014-15 & the current year

2015-16 in the state stood at US$ 0.07 million.

During 2015-16, the state recorded 214 MT of total raw silk

production.

As per the budget 2015-16, to enhance the mulberry silk

production in the state, the state government is targeting to

provide employment opportunities to 24,940 beneficiaries.

In January 2017, the government approved a textile project

to Vardhman Textile Ltd., at Mandideep, Sallapur & Budhni

for modernization & expansion, with an estimated

investment of US$ 215.68 million.

An expansion project was granted to Sagar Manufacturing

Pvt. Ltd. at Tamot, with investment worth US$ 139.32

million in January 2017.

In January 2017, the Defence Ministry announced its plans

to set up a unit of national importance at Morena, with

investment worth US$ 223.11 million.

Cotton production (in lakh bales) in Madhya Pradesh

Cotton productivity (in kgs/hectare) in Madhya Pradesh

20.018.0

15.317.7

20.022.0

17.3 17.5 18.0

FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 ¹ FY 16*

540490

424463 481.6

615.1572.2

518.3559

FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 ¹ FY 16*




Century Textiles and

Industries Ltd

Grasim Industries Ltd

Vardhman Textiles Ltd

Raymond Ltd

• Century Textiles and Industries Ltd was incorporated in 1897. The company has interests in textile, rayon, cement

and paper. Yarn and denim production units of the textile business are located at Satrati in Madhya Pradesh. The

plant is equipped with 24,960 spindles for manufacturing of yarn and produced about 4,244.2 tonnes of yarn

during 2010–11. The denim division has a production capacity of 21 million metres of denim fabrics per annum.

• The company recorded revenues of US$ 1.23 billion in 2015-16.

• Grasim Industries Ltd, a flagship company of the Aditya Birla Group, is one of the leading companies in India with

diverse interests in cement, chemicals and textiles. Its textile plants are located at Bhiwani, Haryana and

Malanpur, Madhya Pradesh. The Malanpur unit of the company manufactures worsted dyed yarn spun from pure

merino wool along with polyester and other blends. The company has a wide retail network and also serves

international apparel manufacturers. The total income earned by the company during 2015-16 stood at US$ 5.60

billion.

• The Vardhman Group is a leading textile conglomerate in India having a turnover of US$ 1.1 Billion. The yarn

manufacturing units are located in Mandideep (130,994 spindles), Satlapur (222,624 spindles) and Bhudhni

(60,000 spindles). In September 2013, the company added 36,288 spindles to its Satlapur plant. Furthermore,

the Bhudhni plant has a fabric weaving unit (400 looms) and a fabric processing unit with a capacity of 40 million

metres per annum. The company posted total revenues of US$ 888.25 million in 2015-16.

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

engineering and aviation. The company is one of the largest integrated manufacturers of worsted fabric in the

world and commands over 60.0% market share in worsted suiting in India. The total production capacity of the

company is around 38 million metres of wool and wool-blended products. One of the four plants of the

company is located at Chhindwara in Madhya Pradesh. The revenue earned by the company stood at US$

858.64 million during 2015-16.

4848MARCH 2017

The state is the 3rd largest producer of cement in the country &

provides up to 13% of national demand.

Being rich in limestone & coal reserves, the state represents

significant opportunities for the growth of the cement industry.

Satna, Jawad and Neemuch of Madhya Pradesh feature among

the seven major limestone clusters in India. These clusters

provide easy access to raw material resources for the cement

industry.

Most limestone deposits are concentrated in the districts of

Damoh, Dhar, Neemuch, Sheopur, Rewa, Satna & Sidhi. Total

cement grade limestone resources of the state are estimated at

4,326.3 million tonnes.

As of 2015, Madhya Pradesh has 13 cement plants, namely Birla

Vikas & Satna Cement Works (1), Cement Corporation of India

Ltd. (2), Century Cement (1), Heidelberg Cement India Ltd (1),

Jaypee Cement (4), K.J.S. Cement (1), Kymore Cement Works

(1), Prism Cement Ltd (1) & Ultratech- Vikram Cement Works (1).

UltraTech Cement Ltd. has recently bought 2 cement plants &

related power assets of Jaiprakash Associates Ltd. in Madhya

Pradesh, for US$ 792.3 million.


KEY INDUSTRIES – CEMENT … (1/2)


Some of the key players

• Birla Corporation Ltd

• ACC Limited

• Jaiprakash Associates Ltd.

• Heidelberg Cement India Ltd

• Cement Corporation of India Ltd.

Source: Cement Information System (CIS)- Department of Industrial

Policy & Promotion, Government of India; Cement Manufacturers’

Association, TechSci Research


KEY INDUSTRIES – CEMENT … (2/2)


Birla Corp Ltd

ACC Ltd

Everest Industries Ltd

Heidelberg Cement

India Ltd

• Birla Corporation Limited is the flagship company of the M P Birla Group with business interests in

cement, jute goods, polyvinyl chloride floor covering, auto trim parts and iron & steel casting. The

cement plant of the company is located in Satna, Madhya Pradesh. The plant has a capacity of 2.2

million tonnes per annum. In October 2013, the company announced plans to set up 3 grinding

cum blending units in Madhya Pradesh. The company recently bought 2 cement plants & related

power assets of Jaiprakash Associates. The total income recorded by the company during 2015-16

was US$ 500.30 million.

• ACC Limited is one of the largest cement manufacturers in India with 17 cement plants, more

than 40 ready-mix concrete plants, 21 sales offices and over 9,000 dealers. In Madhya Pradesh,

it has plants in Kymore with a capacity of 2.7 million tonnes per annum (MTPA). The company’s

total income during 2015 was recorded to be US$ 1.78 billion and for the first quarter of 2016,

the company recorded total revenues of US$ 444.9 million.

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

walls, flooring, cladding, doors, roofing and pre-engineered steel buildings. One of the five

manufacturing facilities of the company is located at Kymore in Madhya Pradesh. It is among

the first manufacturers of fibre-cement roofing sheets and accessories in India. The plant has

been awarded by the state government for excellence in the fields of safety, health and

environment.

• Heidelberg Cement India Ltd is a subsidiary of Cementrum I.B.V. (a company incorporated

under the laws of The Netherlands, which is 100% controlled by HeidelbergCement AG, which

is one of the largest cement manufacturers in the world). The company has two cement plants

at Damoh in Madhya Pradesh. Its cement is sold under brand name ‘Mycem’. The company

recorded a total income of US$ 252.87 million during 2015-16 and US$ 70.27 million during the

first quarter of 2016-17.


KEY INDUSTRIES – PHARMACEUTICAL AND BIOTECHNOLOGY INDUSTRY ... (1/2)


Madhya Pradesh has a rich bio-diversity. About 25.2% 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.

A nodal agency has been constituted to oversee the

developments of the sector. Incentives in the form of capital

subsidies and training assistance have been arranged to

encourage investment.

Biotechnology & pharmaceuticals have been recognised as

thrust sectors. The state has formulated a Biotechnology

Policy, which has created a conducive environment for the

bio-pharmaceutical industry in the state.

Bio Technology Park (Indore) and Bio Fuel Park (Rewa) are

major infrastructure facilities operational in the state.

Agricultural research on hybrid varieties and clinical trials

are among the key activities being undertaken by the state.


• Ipca Industries

• Lupin Ltd

• Piramal Healthcare Ltd

• Sun Pharmaceutical Industries Ltd

• Teva

Source: MP Trade & Investment Facilitation Corp Ltd, TechSci Research

In 2016-17, the government plans to sanction 2,000 new

health centres in the state. The government has also

proposed to spend US$ 310 million under the Rashtriya

Swasthya Mission.

An amount of US$ 150 million is proposed to be spent on

construction of smart medical city near Sanchi.


KEY INDUSTRIES – PHARMACEUTICAL AND BIOTECHNOLOGY INDUSTRY ... (2/2)


Ipca Laboratories Ltd

Lupin Ltd

Piramal Healthcare Ltd

Sun Pharmaceutical

Industries Ltd

• Ipca is a fully integrated Indian pharmaceutical company with a strong thrust on exports. The

company has operations in over 110 countries and exports account for around 60.0% of the

sales. The company has 6 Active Pharmaceutical Ingredient (API) manufacturing plants & 7

formulation plants in India. In Madhya Pradesh, it has plants at Indore, Pithampur & Ratlam. The

plants manufacture drug intermediaries, oral solids, liquids & injectables, etc. & are certified by

apex global agencies. During 2015-16, total income of the company reached US$ 433.69 million.

• Lupin Ltd is an innovation-led pharmaceutical company producing a wide range of generic &

branded formulations and Active Pharmaceutical Ingredients (APIs). The company has 2 plants

in Madhya Pradesh – 1 at Indore for formulations & 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) & United Kingdom Medicine & Healthcare

products Regulatory Agency (UKMHRA). The total revenue recorded by the company during

2015-16 stood at US$ 2.10 billion

• Piramal Healthcare Ltd (PHL) is a globally integrated healthcare company and recorded total

income of US$ 1.1 billion during 2015-16. 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 6 manufacturing facilities in

India, one of which is located at Pithampur in Madhya Pradesh.

• Sun Pharmaceutical Industries Ltd, one of India's largest pharmaceutical companies, is an

integrated, research-based pharmaceutical company with a global presence. In 2015-16, the

company recorded total income of around US$ 4.31 billion. The company announced the

acquisition of Ranbaxy Laboratories Limited in April 2014, and completed the acquisition deal in

March 2015. The company manufactures a wide range of generic medicines in its 45

manufacturing sites across the globe. Sun Pharma Industries Ltd. has two manufacturing

facilities in Madhya Pradesh at Dewas & Malanpur.

5252MARCH 2017

Madhya Pradesh State Industrial Development

Corporation & its subsidiaries have developed

numerous growth centres across the state. The

Industrial Policy of the state provides numerous

incentives for setting up manufacturing units.

The manufacturing sector in Madhya Pradesh is

witnessing strong growth on account of improving

industrial infrastructure, policy incentives, labour

resources & central location of the state.

Districts such as Indore, Bhopal, Jabalpur, Ujjain,

Gwalior, Dhar, Satna, Dewas, Sagar & Khandwa

are notable manufacturing hubs in Madhya

Pradesh. Between 2005-06 and 2014-15, income

originating from the manufacturing sub-sector grew

at a CAGR of 0.9%.

For industrial modernisation, the state has

undertaken measures such as introduction of

Progressive Industrial Policy, infrastructure

improvements & frequent investor meets. To

facilitate the industry with modern infrastructure,

the state has initiated expansion of existing IT

parks, stone parks, apparel parks & SEZs.


KEY INDUSTRIES – MANUFACTURING … (1/2)



• Bharat Heavy Electricals Ltd

• Kirloskar Brothers Ltd

• Kores (India) Ltd

• Crompton Greaves

• Birla Corporation

NSDP originating from manufacturing sub-

sector at constant prices (US$ billion)

10.25 10.9213.25 11.64 11.71 12.95 13.44 11.68 10.48 10.79

1.38 2.042.29

2.60 2.79 2.47 2.462.12

1.85 1.82

Unregistered Registered

Source: TechSci Estimates based on “Advanced Estimates” provided

by Directorate of Economics and Statistics of Madhya Pradesh,


KEY INDUSTRIES – MANUFACTURING … (2/2)


Bharat Heavy

Electricals Ltd

Kirloskar Brothers Ltd

Kores (I) Ltd

Crompton Greaves

• Bharat Heavy Electricals Ltd (BHEL) is a large engineering & manufacturing enterprise in India in the energy-

related & infrastructure sector. During the 3rd quarter of 2015-16, the state recorded total revenues of US$

813.57 million. The Bhopal unit of BHEL was set up in Piplani in 1956 with technical assistance from

Associated Electricals (India) Limited, a UK-based company. The unit has the capability to manufacture

hydro, steam, marine, nuclear turbines, heat exchangers, hydro, turbo generators, transformers, switchgears,

control gears, transportation equipment, capacitors, bushings, electrical motors, rectifiers, oil drilling rig

equipments & diesel generating sets.

• Kirloskar Brothers Ltd (KBL) is the flagship company of the US$ 2.1 billion Kirloskar Group. KBL has business

interests in large infrastructure projects such as water supply, power generation & irrigation, manufacturing of

pumps for domestic, agricultural & industrial use. The total income of the company stood at US$ 416.72 million

in 2015-16 & US$ 262.62 million during 1st quarter of 2016-17. The company has 6 manufacturing plants, one

of which at Dewas in Madhya Pradesh was established in 1962. The plant manufactures pumps for domestic &

agricultural use.

• Kores (India) Ltd was incorporated in 1936 & has business interest in diverse fields such as office

products, foundry, textiles, pharmaceuticals, engineering, etc. The engineering division of the company

has a plant at Pithampur in Madhya Pradesh. The plant is set up on an area of 71,192 sq m & has

facilities such as machining, fabrication, assembly & testing. The company produces hydrostatic rigs,

pumps, drills & related accessories in the plant at Pithampur.

• Crompton Greaves is a part of the US$ 4 billion Avantha Group. The company is engaged in designing,

manufacturing & marketing of technologically advanced electrical products & services. The company

manufactures transformers at its plants in Mandideep & Malanpur & industrial systems (rotating machines &

railway signalling unit) in Pithampur. The company recorded total income of US$ 805.4 million in 2015-16.

5454MARCH 2017

Factors such as industrial infrastructure in growth centres,

cheap labour & central location are the key influencers for

establishing consumer goods manufacturing facilities in the

state.

Many multinational companies, such as Mondelez, Procter

& Gamble, Hindustan Unilever Limited, Coca Cola & Cargill,

have their manufacturing plants in the state.

A majority of the manufacturing plants are located in

industrial areas of the state such as Malanpur, Mandideep,

Pithampur & Chhindwara.

Procter & Gamble’s strategic move of relocating its central

warehouse for FMCG products to Bhopal has helped it save

annual logistics expenses of around US$ 20 million. Many

FMCG companies are now relocating their warehouses to

replicate this success.

To promote growth in the FMCG sector, the state

government has established Gwalior as an FMCG cluster.


KEY INDUSTRIES – FAST MOVING CONSUMER GOODS … (1/2)


Some key players

• Mondelez India Foods Ltd

• Procter & Gamble (P&G) Home Products Ltd

• Dabur India Ltd

• Hindustan Unilever Ltd

Patanjali Ayurveda Ltd. plans to set up a food processing

unit in the state, with an investment of US$76 million.

The bottling division of Coca Cola in India, Hindustan

Coca-Cola Beverages Ltd. (HCCBL), is planning to invest

US$ 111.56 million to set up a bottling plant at in

Hoshangabad, Madhya Pradesh. The 110 acre plant,

would facilitate multiple bottling lines for its carbonated

beverages such as Coca-Cola, Sprite, Fanta, Thums Up

and Limca.

5555MARCH 2017

Mondelez India Foods

Procter & Gamble (P&G)

Home Products Ltd

Dabur India Ltd

Hindustan Unilever Ltd


• Mondelez India Foods Ltd is part of Mondelēz International, Inc. It operates in 5 categories –

chocolate confectionery, beverages, biscuits, gum & candy. Mondelez's key brands in India

include Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls,

Éclairs, Bubbaloo, Tang & Oreo. In India, the company started its operations in 1948 and has 6

factories & 4 sales offices.

• P&G Home Products Ltd, one of India's largest consumer goods companies, is a 100%

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

in the fabric, hair & baby care segments. The company has its manufacturing plant at

Mandideep in the Raisen district of Madhya Pradesh.

• Dabur India Ltd is a leading consumer goods company in India with revenues of US$ 0.4 billion

in H1, FY15. The company has 2 major divisions: consumer care business & international

business division. One of the 17 manufacturing plants of the company is located at Katni in

Madhya Pradesh. The total income recorded by Dabur India Ltd during 2015-16 was US$ 1.3

billion.

• Hindustan Unilever Ltd (HUL) is a subsidiary of Uniliver and is India's largest consumer goods

company with a portfolio of brands in 20 distinct categories. Established in 1930, the company

has its manufacturing plant at Chhindwara in Madhya Pradesh. HUL recorded total income of

US$ 4.21 billion during 2015-16.

KEY INDUSTRIES – FAST MOVING CONSUMER GOODS … (2/2)



KEY INDUSTRIES – AGRO-BASED INDUSTRY … (1/2)


Madhya Pradesh is an agrarian state. Around 74% of the population of the state is directly or indirectly, dependent on agriculture.

Of the total gross area under crop cultivation in the state, 54.2% is sown during the kharif season while the other 45.7% is sown

during the rabi season. Budget estimate for the horticulture and food processing sectors in the state stood at US$ 113.5 million.

Budget estimate for farmer welfare as well as development of agriculture, during 2016-17, in the state was recorded to be US$

450.62 million. Madhya Pradesh is the largest producer of oilseeds; it produced 7.22 million tonnes in 2015-16. accounting for

around 36.32% of the national production.

Madhya Pradesh is one of the leading producers of spices such as ginger, chilli and garlic. Jawaharlal Nehru Krishi

Vishwavidyalaya is located in Jabalpur and serves as a centre for teaching and research in agriculture and allied sciences. The

state was the third largest milk producer in India in 2015-16. Milk production in the state increased from 10.8 million tonnes in

2014-15 to 12.12 million tonnes in 2015-16. Egg production in the state reached 1,441.36 million units in 2015-16, while, meat

production in the state increased from 58.89 thousand tonnes in 2014-15 to 73 thousand tonnes in 2015-16.

Dhar, Ujjain, Chhindwara, Jabalpur, Hoshangabad, Guna, Ashok Nagar, Dewas, Indore, Shajapur, Vidisha, Sagar, Ratlam,

Sehore, Mandsaur and Khargone are the major districts involved in agriculture and allied industries. The state received the “Krishi

Karman” award for the third consecutive year. Horticulture is an emerging sector in the state. Through the export of aromatic and

medicinal plants, the horticulture segment is a potential foreign exchange earner. In 2015-16, the state recorded utilisation of

22,501.8 thousand hectares of land for production of horticulture crops. The state has invested resources into the making of water

assets, new plantations, flower gardens and organic farming. Plans are being laid out to set up suitable post-harvest facilities like

packing houses, cold storage and mobile processing units.

Source: Ministry of Agriculture, Farmer Welfare & Agriculture Development Department Madhya Pradesh

Solvent Extractors’ Association of India, TechSci Research


KEY INDUSTRIES – AGRO-BASED INDUSTRY … (2/2)


Adani

Wilmar Ltd

Anik Industries

Ltd

K S Oils Ltd

Ruchi Soya

Industries Ltd

• Adani Wilmar Ltd (AWL) is a 50:50 joint venture between two global corporations - Adani Group of India

and Wilmar International Limited of Singapore. The company has production infrastructure across the

country, with a crushing capacity of over 5,750 tonnes per day and a refining capacity of over 9,000

tonnes per day. The company has a production unit in Chhindwara and a packaging plant at Dewas in

Madhya Pradesh. FORTUNE, King's, RAAG, Bullet, Fryola and JUBILEE are the brands under which

AWL sells its range of edible oils, vanaspati and bakery shortening.

• Anik Industries Limited has business interests in dairy and milk derivative products, wind power, mining &

coal, ferro alloys, real estate and agri commodities. The company has three milk processing units in

Madhya Pradesh for manufacturing of dairy products, two at Dewas (capacity of 240,000 litres of milk per

day and 400,000 litres of milk per day) and one at Bhopal (capacity of 100,000 litres of milk per day).

These units are supported by 11 chilling centres spread across the state, which collect milk from 5,000

villages. The company recorded total income of US$ 234.78 million during 2015-16.

• K S Oils is a leading Indian integrated edible oil company, which produces and markets mustard oil, refined

oil and vanaspati. The company has its fully integrated plant at Morena in Madhya Pradesh with a crushing

capacity of 1,475 metric tonnes of mustard seeds per day. The plant also has an in-house packaging unit.

The company’s total income during Q3 of 2015-16 was US$ 0.55 million.

• Ruchi Soya Industries Ltd is one of the major agro-based product manufacturers in India. The product

portfolio of the company includes edible oils, soya foods, bakery fat and vanaspati. It is also the largest

exporter of soya foods and lecithin from India. The company has a wide presence in Madhya Pradesh with

six manufacturing plants located at Mangla, Shujalpur, Guna, Piaparia, Gaderwada and Jabalpur and three

depots at Gwalior, Jabalpur and Indore. The company recorded revenues of US$ 4.24 billion in 2015-16.

5858MARCH 2017

Madhya Pradesh is blessed with scenic beauty, rich

heritage of pilgrim centres, temples & wildlife sanctuaries.

The state government has identified the tourism sector as a

key growth area.

In 2015, foreign tourist arrivals in the state were recorded to

be 421.36 thousand.

The state government has shortlisted 18 noteworthy

centres, which draw in large numbers of domestic and

foreign tourists for further development.

The state government has taken initiatives to promote eco-,

wildlife, adventure, leisure, business & pilgrim tourism.

The Ministry of Tourism has included Chitrakoot as one of

the 35 mega tourist centres sanctioned to be developed.

Chitrakoot will be developed as a spiritual & wellness

destination. The destination will be developed as a part of

the Ramayana Circuit. The government has allocated a sum

of US$ 10.69 million for development of this circuit.

As per budget 2016-17, the state government proposed an

allocation of US$ 38.81 million for the development of the

state’s tourism department.

In February 2017, the state tourism advertisement ‘MP Mein

Dil Hua Bachche bagged the prestigious AFI (American

Film Institute) award for the best ongoing campaign, which

was launched in June 2016.


KEY INDUSTRIES – TOURISM … (1/2)

Source: Tourism Statistics 2014-15


International tourist arrivals (in millions)

0.230.25

0.2

0.250.27 0.28 0.28

0.32

0.42

2007 2008 2009 2010 2011 2012 2013 2014 2015

The Central Sanctioning and Monitoring Committee (CSMC)

for the Swadesh Darshan Scheme in Ministry of Tourism has

approved a sum of US$ 15.28 million for the development of

Heritage Circuit in state of Madhya Pradesh. The circuit will

cover cities of Gwalior- Orchha-Khajuraho-Chanderi-

Bhimbetka-Mandu. The project would facilitate world class

infrastructural development of the sites, including developing

a theme park & convention centre in Khajuraho. Site

illumination, construction of tourist facilitation centres &

parking area are other interventions proposed in the circuit.


KEY INDUSTRIES – TOURISM … (2/2)

Source: Annual Plan of Madhya Pradesh, 2012-13


The state has 382 tourist sites, including world heritage

sites. Major places of tourist interest in Madhya Pradesh are

as follows:

Kanha: One of the largest wild-life sanctuaries in

Asia.

Khajuraho: Some of the most famous sculptures in

the world.

Bhimbetka: The oldest cave paintings in the world.

Sanchi: The oldest Buddhist Stupa in the world.

Bandhavgarh: The highest density of tiger

population in the country.

Bhedaghat: Scenic marble rocks rising up to 100

feet.

The state has 9 national parks & 25 wildlife

sanctuaries.

Numerous festivals, such as All India Kalidasa

Festival, Tansen Samaroh (Gwalior), Lokranjan &

Khajuraho Dance Festival (Khajuraho), are

celebrated in the state, which attract tourists.

Measures to promote tourism in Madhya Pradesh

• Promote and market as an attractive tourist

destination.

• Provide basic infrastructure at lesser known tourist

locations.

• Develop eco-friendly and sustainable tourism

facilities.

• Develop and promote eco- and adventure tourism.

• Invite PPP to convert old palaces into heritage

hotels.

In January 2017, the Government of Madhya Pradesh

developed Hanuwantiya Island, with an investment of US$

1.19 million, to promote water tourism in the state. The island

is located in the reservoir of Indira Sagar Dam, situated on

Narmada river.


KEY INDUSTRIES – FOREST-BASED INDUSTRIES


With a share of about 12.44% of the total forest area of the country, Madhya Pradesh has the largest area covered by

forests among all the states in India.

In Madhya Pradesh, the average annual production of tendu leaves is estimated around 2.5 million standard bags,

accounting for nearly 25.0% of all tendu leaves produced in India.

Tendu leaves, sal seed and kullu gum are nationalised forest produce. Other non-wood forest products are non-nationalised

and can be collected and traded freely.

Other important forest products popularly traded include Chebulic Myrobalan, Mahua, Sal seeds, Kullu gum and bamboo.

Estimated budget for the forest department during 2016-17 stood at US$ 386.02 million.

Sale of forest products contributes significantly to the state revenues. Forest products are either sold through auction in

commercial depots, or through sale on pre-defined rates at Nistar depots. As of 2015, there were 40 commercial timber

depots and 22 industrial bamboo depots in the state.

Source: Forest Department, Madhya Pradesh, www.mpforest.org

Trading & Development Co-Op Federation Ltd.


KEY INDUSTRIES – IT AND ITeS


Madhya Pradesh has an optical fibre spine of more than

24,000 km that covers 313 formative blocks over 45

districts.

The state is home to the country’s 1st Indian Institute of

Information Technology & Management (IIITM), which is

located in Gwalior. The government has proposed to set up

21 IT SEZs across the state. 5 information technology

parks, located at Bhopal, Indore (2), Gwalior & Jabalpur, are

at various stages of development.

Around 20 companies have signed MoUs worth US$ 1.4

billion for investments in the IT sector within the state.

Various information technology infrastructures such as the

wide area networks, data centres, etc. are being used for

exchanging the information by different departments of the

state government.

A government society MAP_IT (Madhya Pradesh Agency

for Promotion of Information Technology), headed by the

Chief Minister & represented by the government & industry,

has been established to implement the IT policy & propel

the growth of the IT industry in Madhya Pradesh. The state

government proposed allocation of US$36.16 million for

different activities under science & technology during 2015-

16.

Contract for setting up a special IT processing centre was

granted to Fujitsu Optel Ltd., at Mandideep in Raisen, at an

estimated cost of US$ 8.48 million.

IT parks

Crystal IT Park (51,097 sq. m) Indore

Hardware and Software Technology Park

(200 acres)Bhopal

Software Technology Park (100,000 sq ft) Indore

IT Park (50 acres) Gwalior

IT Park (90 acres) Jabalpur

IT projects in Madhya Pradesh

Hardware & Software

Technology Park, Bhopal

Crystal IT Park,

Indore

Software Technology

Park, Indore

IT Park, Gwalior

Jabalpur IT Park, Jabalpur



KEY INDUSTRIES – MINERAL-BASED INDUSTRY … (1/3)


Madhya Pradesh is one of the key mineral-producing states in India, providing tremendous potential for industrial growth.

With 26 major and minor minerals being mined in the state, it ranks fourth in mineral production.

The state has rich deposits of coal, limestone and manganese. Bauxite, dolomite, fire clay, granite and marble stones are

other mineral resources available.

During 2015-16 (till February 2016), value of all minerals produced in Madhya Pradesh was recorded to be US$ 2.4 billion.

Madhya Pradesh, with its 1,045,318 carats of proven diamond reserves, is the sole producer of diamonds in India.

Madhya Pradesh is the leading producer of minerals such as pyrophyllite and copper.

During 2015-16 (till February 2016), value of fuel mineral produced in Madhya Pradesh was recorded to be US$ 2.17 billion.

Major mineral-based industries in the state are cement, thermal power generation, ceramic-products, tiles and refractory.

The Mineral Resources Department of Madhya Pradesh has planned to introduce online electronic transit pass (e-TP)

services in Balaghat, Sagar, Tikamgarh, Satna, Rajgarh, Betul, Indore, Ujjain, Neemuch, Gwalior, Bhind and Hoshangabad

in December 2016.

Source: Indian Bureau of Mines



Source: Ministry of Mines, Government of India, TechSci Research


Mineral production in Madhya Pradesh (‘000 MT)

Mineral2015-16

(till February 2016)

Coal 96,436

Bauxite 505.8

Copper ore 2,300

Copper conc. 62.11

Iron ore 2,291

Manganese ore 638.2

Phosphorite 62.68

Diamond (in carat) 32.06

Limestone 34,576

Mineral production of Madhya Pradesh as a

share of India’s reserves in per cent in 2015-16

(till February 2016))

1.66%

1.93%

4.54%

12.61%

16.93%

33.92%

48.82%

64.96%

100%

Iron Ore

Bauxite

Phosphorite

Limestone

Coal

Manganese ore

Copper Conc

Copper Ore

Diamond




Hindustan Copper Ltd

NMDC Ltd

• Hindustan Copper Ltd (HCL) is a vertically integrated copper manufacturing company. In 1982,

the company established its Malanjkhand copper project, which has the single-largest copper

deposit in the country. The Malanjkhand mine has a copper deposit of 221 million tonnes with

1.3% copper concentration. The company possesses an open-pit mine with a capacity of 2

million tonnes per annum, concentrator plant, tailing disposal system and other auxiliary

facilities. The plant contributes around 80.0% of the copper production of the company. HCL’s

mines and plants are spread across Rajasthan, Jharkhand, Madhya Pradesh and Maharashtra.

HCL plans to expand its flagship Malanjkhand mine with an investment of US$ 308.1 million.

During 2015-16, the company recorded revenues of US$ 147.99 million.

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

copper, limestone, dolomite, gypsum, tin, graphite and diamond. The company is the single

largest iron ore producer in the country. NMDC is the only organised producer of diamonds in

India and produces diamond from its Majhgawan mine at Panna in Madhya Pradesh. The

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

199 persons. Income of US$ 986.2 million was recorded by the company during 2015-16.

6565MARCH 2017

TRIFAC, established in 2004, is the state’s single window clearance facility. As a nodal agency, it extends customised

incentives to mega projects (investment over US$ 4.6 million).

TRIFAC is a coordinating interface between entrepreneurs and government agencies and provides effective pre-investment

and post-investment services.


TRADE AND INVESTMENT FACILITATION CORPORATION LIMITED … (1/2)


Source: MP Trade and Investment Facilitation Corporation Ltd

TRIFAC - Trade and Investment Facilitation Corporation Limited

6666MARCH 2017

TRIFAC activities Description

APEX Level Investment Promotion

Empowered Committee

• For project investments over US$ 4.6 million, TRIFAC facilitates obtaining ofcustomised economic package through APEX Level Committee headed byChief Minister.

Project Clearance and Implementation Board • Acts as an empowered body to grant in-principle approval to mega projects.

Madhya Pradesh Investment Facilitation Act

2008

• Acts as member secretary for APEX and State Level Committee, whichensures speedy approvals for various clearances/consents/permissions.

Combined application form• Under the MP Investment Facilitation Act 2008, a single form for obtaining

all necessary clearances.

Investment drive• TRIFAC organises investor meets, conducts road shows and industry

interactive sessions to stimulate investments in the state.

Memorandum of Understanding• TRIFAC acts as a nodal agency for executing the MoU process for

investment plans related to the industry sector.

Delhi-Mumbai Industrial Corridor • TRIFAC acts as a nodal agency for executing the project in the state.

Industrial Investment Promotion Assistance

2004

• TRIFAC acts as a nodal agency for providing industrial investmentassistance in the state.

Audyogik Kendra Vikas Nigam Limited (AKVN) • AKVN is the subsidiary company of MP TRIFAC.

Land Bank• Responsible for maintaining a land database meant for setting up industries

in the state.


TRADE AND INVESTMENT FACILITATION CORPORATION LIMITED … (2/2)


Source: MP Trade and Investment Facilitation Corporation Ltd

TRIFAC - Trade and Investment Facilitation Corporation Limited


KEY APPROVALS REQUIRED … (1/2)


List of approvals and clearances required Departments to be consulted

Prior to setting up the unit

Registration DIC for SSI/ SIA for large and medium industries

Allotment of land/shed DI/ SIDC/ Infrastructure Corporation/ SSIDC

Permission for land use

District authorities/ State DI/ Dept. of Town and

Country Planning (in case industry is located

outside an industrial area)

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

Approval for construction activity and building plan

Town and Country Planning/ Municipal and local

authorities/ Chief Inspector of Factories/ Pollution

Control Board, Electricity Board

No objection certificate Fire Department

Provisional Trade Tax registrationsCentral and State Excise Departments, Sales Tax

Department

Source: MP Trade & Investment Facilitation Corp. Ltd., TechSci Research

Note: SIDC- State Industrial Development Corporation, SSI- Small Scale Industries, SIA-

Secretariat of Industrial Assistance, DIC- District Industrial Center,

SSIDC- Small Scale Industrial Development Corporation


KEY APPROVALS REQUIRED … (2/2)


List of approvals and clearances required Departments to be consulted

Before commencement of production

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

No objection certificate Fire Department

Permanent trade tax registration under Central Sales Tax Act 1956 Central and State Excise Departments, Sales Tax

DepartmentRegistration under Central Sales Tax Act 1956

After commencement of production/activity

Registration Department of Commerce, Industry & Employment


KEY INVESTMENT PROMOTION OFFICES


Agency Description

Department of Commerce, Industry

& Employment

• The department is responsible for industrialisation in the state throughdevelopment of small, medium and large scale industries and new investments.The department is also responsible for creation of basic infrastructure anddevelopment of industrial parks. The department has several support institutionssuch 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 areempowered to provide clearance for setting up industrial units.

Madhya Pradesh State Industrial

Development Corporation

• Madhya Pradesh State Industrial Development Corporation (MPSIDC) is a supportinstitution of Department of Commerce, Industry and Employment of the stategovernment. The organisation had the mandate to promote the state as anindustrial destination and help companies set up and expand industries in MadhyaPradesh.

7070MARCH 2017

Agency Contact information

Department of Commerce, Industry &

Employment

Mantralaya, Vallabh BhawanBhopal - 462 004

Madhya Pradesh, IndiaPhone: 91-755-2441061

Website: www.mpindustry.org

Directorate of Industries

Directorate of IndustriesVindhyachal Bhawan

BhopalMadhya Pradesh, India

Phone: 91-755-2677988, 2677966Email: [email protected]

Website: www.mpindustry.org

Madhya Pradesh State Industrial Development

Corporation Limited

AVN Towers 192 Zone-1, M.P. Nagar

Bhopal-462 011, Madhya PradeshPhone: 91-755 - 427 0370

Fax: 91-755- 427 0280E-mail: [email protected], [email protected]

Website: www.mpsidc.org


CONTACT LIST



COST OF DOING BUSINESS IN MADHYA PRADESH


Cost parameter Cost estimate Source

Cost of industrial land

(per sq. ft.)US$ 4.8-28.7 Industry sources

Hotel cost per room per night

(four-star, five-star hotel)US$ 76.6-95.7 Leading hotels in the state

Residential rent

(for a 2,000 sq ft house, per month)US$ 268-335 Industry sources

Commercial rent

(per sq ft per month)US$ 0.7-3.2 Industry sources

Power cost (per kWh) Industrial: 8-12.4 US centsMadhya Pradesh Electricity Regulatory

Commission

Labour cost (minimum wages per day) US$ 3.73Labour Department, Madhya Pradesh

Government

Source: Madhya Pradesh State Portal, PwC Research

7272MARCH 2017

Tourism Policy 2010 (As amended in 2014)

• To promote balanced and sustainable tourism, which enables socio-economic development and

establishes Madhya Pradesh as a destination that provides a complete tourism experience.

• Aims at providing an effective regulatory mechanism for sustainable tourism and developing the

sector through PPP.

Read more

Objectives

Information Technology Investment Policy 2014

• To increase the flow of investments in the state in the information technology industry.

• To maximise direct and indirect employment generation opportunities for the youth in the state.

Read more

Objectives

Industrial Promotion Policy 2014

• To improve investor facilitation and ensure rapid economic development and employment

opportunities through sustainable use of available resources.

• Promotes SMEs and ensures PPP initiatives for industrialisation.

• Envisages an industry-friendly administration and attracting investments by developing quality

infrastructure.

Read more

Objectives


STATE ACTS & POLICIES … (1/3)


http://www.mptourism.com/pdf/Tourism policy 2014 (Englishj).pdf

http://www.invest.mp.gov.in/policies.action?OWASP_IFAMS=DMKP-HIQH-Q7YO-K6CK-GEXW-AIVQ-6WM0-KDPI





IT Policy 2006

• To improve the life of common man by leveraging the strength of e-governance & attracting

investments in the sector by providing a conducive environment & highly skilled manpower to

transform the state from a resource-based economy to a knowledge-based economy.

Read more

Objective

Madhya Pradesh Investment Facilitation Act 2008

• Ensures quick and timely disposal of investors’ applications at various levels.

• To strengthen & make the single-window system more effective.

Read more

Objectives

Biotechnology Policy 2003

• Conservation of the state’s biodiversity & sustainable use of biotechnology resources.

• Production of high-yielding, draught and pest-resistant seeds for agriculture & horticulture crops

suited to different agro-climatic zones.

• Improvement of quality of livestock & poultry, especially the breeds indigenous to the state.

• Afforestation as well as production of cost-effective drugs to treat common diseases of the

tropical & sub-tropical regions of the country.

Objectives

Read more

http://mpnricentre.nic.in/governmentpolicy/ITPOLICY.pdf


http://www.mpbiotech.nic.in/policy.pdf

7474MARCH 2017

Special Economic Zone Policy 2000

• To promote development of SEZs in the state.

• To increase employment opportunities in the state.

Read more

Objectives




Analog Semiconductor Fabrication Investment Policy 2015

• To increase the flow of investments in the field of electronics manufacturing in the state.

• Maximising employment generation opportunities and promoting establishment of FAB units.Objectives

BPO Policy 2014

• To boost the flow of investments in the BPO/BPM industry along with promoting establishment of

IT/ITeS units in the urban as well as rural areas in the state.

• To generate and maximise employment opportunities for youth as well as development and

infrastructure opportunities in smaller cities in the state.Read more

Objectives

Source: MP Trade & Investment Facilitation Corp. Ltd.,

Read more

http://www.sezindia.nic.in/writereaddata/statePolicies/mp_policy.pdf

http://www.invest.mp.gov.in/policies.action?OWASP_IFAMS=A60U-U4S9-H6MM-R9MH-FKWX-O55L-Y0UC-V4X6

http://www.invest.mp.gov.in/policies.action?OWASP_IFAMS=A60U-U4S9-H6MM-R9MH-FKWX-O55L-Y0UC-V4X6



CONFERENCES/SUMMITS FOR 2016-17

SummitVenue of

SummitDate

International Conference on Advances in Engineering, Science & Technology (ICEST-16) Gwalior 21st August, 2016

International Conference on Electrical, Electronics, Computer , Civil and Mechanical

Engineering (ICEECCME-16)Indore 11th September, 2016

International Congress on Engineering and Technology(ICET-16) Bhopal 18th September, 2016

International Conference on Engineering and Technology(ICET-16) Bhopal 16th October, 2016

International Symposium on Current Research in Mechanical, Mechatronics, Robotics and

Civil Engineering(ISMMRCE-16)Indore 30th October, 2016

International Conference on Advances in Engineering, Science & Technology (ICEST-16) Gwalior 13th November, 2016

International Conference on Electrical, Electronics, Computer , Civil and Mechanical

Engineering (ICEECCME-16)

Gwalior 11th December, 2016

Source: India Conference Alerts

7676MARCH 2017

Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 46.88

2012-13 54.31

2013-14 60.28

2014-15 60.28

2015-16 65.46

2016-17 67.23

Average exchange rates

ANNEXURE


Source: RBI


7777MARCH 2017

India Brand Equity Foundation (“IBEF”) engaged TechSci to prepare this presentation and the same has been

prepared by TechSci in consultation with IBEF.

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modified or in any manner communicated to any third party except with the written approval of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of TechSci and IBEF’s knowledge and belief, the

content is not to be construed in any manner whatsoever as a substitute for professional advice.

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