MADHYA PRADESH THE LAND OF DIAMONDS

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❖ 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

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EXECUTIVE SUMMARY

• GSDP of Madhya Pradesh grew at a compound annual growth rate (CAGR) of 11.86% Strong economic growth during 2005-06 to 2015-16.

• The state is rich in natural resources: fuels, minerals, agriculture & biodiversity. Rich in natural • Madhya Pradesh has ample reserves of coal & coal-bed methane (8.38% of ’s total coal reserves & 218.04 BCM of methane). resources • The state has the largest reserves of diamond & copper in India. • Madhya Pradesh has significant reserves of limestone, manganese & dolomite.

• Madhya Pradesh boasts of rich ancient cultural & religious heritage. Potential for tourism • Due to a thick forest cover, the state has immense potential for wild life, adventure & eco- tourism.

• Due to its centralised location, Madhya Pradesh has excellent connectivity. Many FMCG companies have moved their warehouses here to save on logistics expenses. • Upcoming theme based SEZs near , industry parks in & food parks at Infrastructure support 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

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ADVANTAGE MADHYA PRADESH

Strategically located business hub Attractive investment avenues • With around 33% of the region under forests, Madhya Pradesh • The state is centrally located in India. Major consumer goods has an enormous potential for drug, wood & agro-based multinationals are situated in Madhya Pradesh in order to commercial enterprises. Ideal soil & climatic conditions have access major consumer markets & metro urban communities made it a primary producer of coarse cereals, oilseeds & like New Delhi (740 km1), Mumbai (780 km1), Kolkata (1,350 soybean in India. 1 1 • The cluster-based advancement methodology promotes km ) & Chennai (1,435 km ) investments in automotive, textiles & biotechnology. • Geographical proximity with the automotive hub of NCR has • Plentiful limestone & coal reserves give development avenues favourably impacted Madhya Pradesh’s auto ancillary for the cement industry. • A rich cultural heritage, scenic beauty & wildlife sanctuaries industry. The state’s well developed automotive cluster is offer a promising tourism industry. Indore is all set to be the now home to around 30 auto component & ancillary units. new IT capital with TCS & Infosys opening their offices. Advantage Madhya Pradesh Policy and infrastructure support • Madhya Pradesh offers distinctive monetary & strategy/policy Rich resource pool incentives for organisations under the Industrial Promotion Policy- 2010 & Action Plan, other than strategies/ policies for IT, • Madhya Pradesh adds around 270,000 graduates to the biotechnology, tourism & SEZs. To pull in investors and promote workforce each year, of which around 90,000 have technical entrepreneurs, the state government has selected TRIFAC, an skills. At labour costs of US$ 3.7 per day, the state has a agency that encourages a single window system, for speedy significant cost advantage over metros. approvals of different clearances & consents. • The state government has made some well-planned infrastructure • The state houses some of the country’s most reputed institutes investments for roads & railroad systems. Government offers including Indian Institute of Management, Indian Institute of various subsidies under ‘Industrial Investment Promotion Foreign Management & Indian Institute of Technology. Assistance (IIPA) under 2014 Schemes’ for investment in development of road, electrification, water, industrial parks, etc.

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MADHYA PRADESH VISION 2018

• Develop the transportation • Skill development by expanding network to enhance rural training infrastructure & capacity connectivity to aid 1 million youth in attaining • Reform the institutional wages & self employment machinery for creating public transport facilities

• Enhance the ease of doing Transport Skill • Improve civic infrastructure, business for the benefit of including public & household development investors sanitation facilities • Attract higher investments in • Expand availability of manufacturing, services & Investment Housing affordable housing labour intensive sectors promotion Vision 2018

• Make the state a world class Tourism Environment • Promote social & agro forestry tourist destination • Revitalise ground water • Promote religious, adventure resources & heritage tourism & attract Agriculture Infrastructure • Private sector participation in private investment maintaining waste disposal & water conservation

• Expand the outreach of • Connect all villages through agriculture technology & world class highways irrigation to remote farms. • To be a leader in renewable • Promote farm level energy & green technology diversification and value • Keep the state power surplus by addition. addition to the power generation capacity Source: Government of Madhya Pradesh

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MADHYA PRADESH FACT FILE

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

Madhya Parameters Pradesh Capital Bhopal Geographical area (sq km) 308,000 Administrative districts (No) 51

Population density (persons per sq km) 236

Source: Maps of India Total population (million) 72.6 Male population (million) 37.6 Madhya Pradesh is located in central India. The state is surrounded by Uttar Pradesh in North, Chhattisgarh in East, Female population (million) 35.0 Maharashtra in South, Gujarat and Rajasthan in west. Sex ratio (females per 1,000 males) 931

The most commonly spoken language of the state is . Literacy rate (%) 70.6 English and Marathi are the other languages used.

Bhopal, Indore, Gwalior, Jabalpur and are some of Source: Government of Madhya Pradesh website, National Informatics the key cities of the state. Centre Madhya Pradesh

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MADHYA PRADESH IN FIGURES … (1/2)

Madhya Parameter All states Source Pradesh

Economy 2015-16 2015-16

TechSci Estimates based on “Advanced Estimates” GSDP as a percentage of all states’ GSDP 4.16 100.0 provided by Directorate of Economics and Statistics of Madhya Pradesh TechSci Estimates based on “Advanced Estimates” GSDP growth rate (%) 16.6 8.71 provided by Directorate of Economics and Statistics of Madhya Pradesh TechSci Estimates based on “Advanced Estimates” Per capita GSDP (US$) 1,188.98 1,546 provided by Directorate of Economics and Statistics of Madhya Pradesh Physical Infrastructure Installed power capacity (MW) 18,917.16 305,554.25 Central Electricity Authority, as of August 2016 Telecom Regulatory Authority of India, as of Wireless subscribers (no) 64,379,812 1,078,422,215 October 2016 Telecom Regulatory Authority of India, as of Internet subscribers (no) 21,270,000 367,480,000 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

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MADHYA PRADESH IN FIGURES … (2/2)

Madhya Parameter All states Source Pradesh Social Indicators

Literacy rate (%) 70.6 73.0 Census 2011

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

Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion) 1.291 288.63 From April 2000 to March 2016

Industrial Infrastructure

DEA, Ministry of Finance, Government of India, PPP projects completed & operational (no) 110 1,246 July 2016 Ministry of Commerce & Industry, Department Operational SEZs (No) 1 186 of Commerce, July 2016

1Including Chhattisgarh PPP: Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

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ECONOMIC SNAPSHOT – GSDP

At current prices, the gross state domestic GSDP of Madhya Pradesh at current prices (in US$ billion) 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%. 84.27 86.32 74.8 66.49 68.52 57.7 48.08 40.1 42.75

28.15 32.03

2008-09 2005-06 2006-07 2007-08 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Source: GSDP* - “Advanced Estimates” provided by Directorate of Economics and Statistics, Government of Madhya Pradesh

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ECONOMIC SNAPSHOT – NSDP

NSDP of Madhya Pradesh at current prices (in US$ billion) The net state domestic product (NSDP#) of Madhya Pradesh was about US$ 77.55 billion in 2015-16.

During 2005-06 and 2015-16, state’s NSDP 75.6 77.55 67.4 grew at a CAGR of about 12.06%. 59.05 61.61 51.0 42.74 35.49 38.03

24.83 28.28

2014-15 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2015-16

Source: NSDP# - “Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh, Government of Madhya Pradesh

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ECONOMIC SNAPSHOT – PER CAPITA GSDP

The state’s per capita GSDP^ in 2015-16 was US$ 1188.98 Per capita GSDP of Madhya Pradesh at current prices (in US$) in comparison with US$ 389.4 in 2005-06.

Per capita GSDP of the state increased at a CAGR of 10.78% during 2005-06 and 2015-16.

11211188.98 912 926 995.0 805.0 587 616 680

427 477

2006-07 2005-06 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Source: Per Capita GSDP^ - calculated using GSDP in million US$/population in million

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ECONOMIC SNAPSHOT – PER CAPITA NSDP

The state’s per capita NSDP& in 2015-16 was US$ 1068.26 Per capita NSDP of Madhya Pradesh at current prices (in US$) in comparison with US$ 377 in 2005-06.

Per capita NSDP in the state increased at a CAGR of 10.98%, during 2005-06 and 2015-16. 10061068.26 810 828 896.0 711.0 520 548 604

377 422

2013-14 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2014-15 2015-16

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

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ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP

In 2015-16, the tertiary sectorµ contributed 43% to the state’s GSDP composition by sector 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 CAGR fastest growth among the 3 sectors, during 2004-05 to 2015- 45% 43% 16. This was driven by agriculture, forest & logging & fishing. 11.37% The tertiary sector expanded at a CAGR of 11.37% between 2004-05 & 2015-16. Growth has been driven by trade, hotels, 7.80% real estate, finance, insurance, transport, communications & 27% 7.69% other services. The secondary sector expanded at a CAGR of 7.69% between 39.23% 15.32% 2004-05 and 2015-16 driven by manufacturing, electricity, gas 28% & water supply & construction sectors. Madhya Pradesh will be the 1st state in India to release a 2004-05 2015-16 happiness index in 2018. The index, based on questionnaires Primary Secondary Tertiary will assist the government in gauging the happiness quotient of people in India. Source: Sector-wise %share of GSDPµ - “Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya A 4-member team of the newly constituted happiness Pradesh, Government of Madhya Pradesh 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.

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ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION…(1/2)

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 Annual production in production of horticulture crops. Crop 2015-16 (‘000 metric tonnes) Wheat, soyabean, gram, sugarcane, rice, maize, cotton, rapeseed, mustard & arhar are the major crops of the state. In Wheat 15,644.1 2015-16, total food grain production in the state stood at Fruits 6,290 27.88 million metric tonnes. Vegetables 14,797.74

In 2014-15, total pulses production in the state stood at Sugarcane 4,716.1 around 4.82 million tonnes. In addition, the share of Madhya Onion 2,848 Pradesh in the overall production of pulses in India was around 27.8%. Rice 3,408.4 Food grains 27,876.6 Madhya Pradesh is the largest producer of pulses, oilseeds Spices 699.10 soyabean and gram in the country. The state is the 2nd highest producer of wheat, masoor & mustard across India. It Honey 1.8520 is one of the leading producers of garlic & coriander. The Coarse cereals 3,658.8 production of wheat, cotton, baajra, corn, gram, soyabean, mustard, groundnut, paddy, jowar & corn in the state, is above Total pulses 4,820 the national average.

Total budget allocation for the agricultural & allied industries during 2016-17 is estimated to be US$ 843.42 million. Source: MP State Facts Profile Department of Agriculture and Cooperation, National Horticulture Board, TechSci Research 1Thousand bales of 170 kg each

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ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION…(2/2)

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.

Source: State Budget 2015-16

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ECONOMIC SNAPSHOT – FDI INFLOWS & INVESTMENTS

According to the Department of Industrial Policy & FDI equity inflows1, 2008-09 to 2014-15 (US$ Promotion (DIPP), cumulative FDI inflows1, from April million) 2000 to March 2016, totalled to US$ 1.29 billion. 451 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 & 220 services are also gaining momentum. 123 119 100 80 44 54 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.

Source: Department Of Industrial Policy & Promotion 1Including Chhattisgarh;

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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

Source: State Budget 2016-17

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PHYSICAL INFRASTRUCTURE – ROADS Madhya Pradesh has 20 national highways measuring 5,184.57 km. The state also has 10,859 km of state Road type Road length (km) (2015) highways. 1 National highways 5,193.57 Development of major roads in the state is managed by State highways 10,859 Madhya Pradesh Road Development Corporation Limited (MPRDC), which executes tasks taken up under Major district roads 19,574 Public–Private Partnership (PPP) & those supported by Asian Development Bank (ADB). As per the Department Village roads 24,209 of Economic Affairs, the state had 131 government PPP projects in the roads sector at various stages of Road length 59,835 development.

Under Prime Minister Graamin Sadak Yojana, during As per the state budget 2016-17, work on development of 2016-17, the state government has set a target of various district roads had started in 2015-16 and the constructing around 2,000 km of roads in the state. renovation of these roads is expected to be completed over a span of three years. However, for this purpose, the state For the development of various roads in the state, government is trying to secure a loan from ADB as well as allocation of US$ 1.12 billion has been proposed by the new development banks. state government As of November 2016, the New Development Bank created As per the Budget Scheme 2015-16 construction of by BRICS countries approved a loan of US$ 350 million for 7,575 roads with total length of 19,386 km for linking the development of major district roads in the state. 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 2016-17 12015-16 MARCH 2017 For updated information, please visit www.ibef.org 18 MADHYA PRADESH THE LAND OF DIAMONDS

PHYSICAL INFRASTRUCTURE – RAILWAYS Madhya Pradesh has around 4,954 km of railway lines & the state is connected to different states of the country through more than 425 trains which travel on daily basis. The railway network in Madhya Pradesh primarily falls under the West-Central Railways, which was formed in 2002 and is headquartered in Jabalpur. Part of the state is also covered by Central and Western Railways. Being centrally located, the railway network in the state assumes great significance. Madhya Pradesh’s capital, Bhopal is one of the foremost railway junctions in the country, as 220 trains travel through the capital alone. 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. Source: Maps of India In February 2015, the state government affirmed the constitution of Madhya Pradesh Metro Rail Company for the advancement of light metro projects in Bhopal and Indore. Moreover, during 2016-17, the state government As per annual budget 2016-17, construction work on phase-I of 28 allocated US$ 69.04 million for construction work on km long Bhopal metro rail & 31 km long Indore metro rail was phase-I of the 28 km-long Bhopal metro rail and 31 km- initiated in 2015-16, and is expected to be completed by 2018-19. long Indore metro rail. For these projects, a total loan of US$ 458.30 million & US$ 1.83 In December 2016, Madhya Pradesh Cabinet approved billion would be provided by the central government as well as the detailed project reports (DPRs) of the Metro rail Japan International Corporation Agency respectively. projects for Bhopal and Indore, costing US$2.12 billion

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PHYSICAL INFRASTRUCTURE – AIRPORTS

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.

Airport indicators in Madhya Pradesh

No. of passengers Aircraft movement

Airport 2014-15 2015-16 Airport 2014-15 2015-16 Indore 1,353,300 1,692,892 Indore 14,371 14,858 Bhopal 416,284 662,615 Bhopal 5,375 7,755

Freight (in tonnes)

Airport 2014-15 2015-16 Indore 6,315 6,992

Bhopal 937 1,153 Source: Airports Authority of India

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PHYSICAL INFRASTRUCTURE – POWER … (1/3)

Installed power capacity (MW) As of August 2016, Madhya Pradesh had total 18,917 installed power generation capacity of 18,917.16 18,571 16,813 MW, comprising 5,867.62 MW under state utilities, 14,259 12,902 4,540.47 MW under central utilities and 8,509.07 MW under the private sector. 8,574 9,351

Of the total installed power generation capacity, 12,216.23 MW was contributed by thermal power, 3,223.66 MW was contributed by hydropower, 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17(1) 273.24 MW was contributed by nuclear power and renewable power contributed 3,204.03 MW. Source: Central Electricity Authority 1Upto August 2016 Madhya Pradesh is on its way to become a solar Break-up of installed capacity by source of power power hub, with 114 projects currently. 2% generation (2016-171) 16% The total budget allocation for the energy sector in Thermal Power the state is estimated to be US$ 3.05 billion during 2016-17. Hydropower Renewable Power 17% Nuclear Power 65%

Source: Central Electricity Authority; (1) – Figures as of August 2016

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PHYSICAL INFRASTRUCTURE – POWER … (2/3)

Madhya Pradesh Power Generating Corporation Ltd. is a state owned company engaged in electricity generation. Segment Company name

• Madhya Pradesh Power The power distribution business is being managed through Power generation Generating Corporation Limited 3 government-controlled entities: Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Ltd., Madhya Pradesh • Madhya Pradesh Poorv Paschim Kshetra Vidyut Vitaran Company Ltd., & Madhya Kshetra Vidyut Vitaran Pradesh Madhya Kshetra Vidyut Vitaran Company Ltd. Company Limited (MPPoKVVCL) Madhya Pradesh Power Transmission Company carries out • Madhya Pradesh Paschim Kshetra Vidyut Vitaran intra-state transmission of electricity, State Transmission Power distribution Utility & State Load Dispatch Centre. Company Limited (MPPaKVVCL) • Madhya Pradesh Madhya Madhya Pradesh Power Trading Corporation Ltd. deals with Kshetra Vidyut Vitaran power trading & other related activities. Company Limited (MPMaKVVCL) • Madhya Pradesh Power Power Distributor Area covered Transmission Corporation transmission Limited Jabalpur, Sagar, Shahdol and MPPoKVVCL • Madhya Pradesh Power Rewa Power trading Trading Corporation Limited MPPaKVVCL Indore and Ujjain Bhopal, Hoshangabad, Gwalior MPMaKVVCL and Chambal Source: Energy Department-Government Of Madhya Pradesh

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PHYSICAL INFRASTRUCTURE – POWER … (3/3)

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

The scheme is currently operational in six districts, namely Jabalpur, , 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.

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PHYSICAL INFRASTRUCTURE – TELECOM

According to Telecom Regulatory Authority of India (TRAI), Madhya Pradesh had nearly 64.37 million wireless Telecom infrastructure- as of May 2016 subscribers & 1.035 million wireline subscribers, as of Wireless subscribers 64,379,812 October 2016. Wire-line subscribers 1,035,085 As of October 2016, teledensity (telephone connections per 1 100 persons) in Madhya Pradesh was 62.49%. Internet subscribers 21,270,000 The state has been identified by Ministry of Home Affairs for Teledensity (in%) 62.49 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 & Some of the major telecom operators in Madhya Power Grid & laying incremental fibre wherever necessary Pradesh to bridge the connectivity gap between gram panchayats (GPs) and blocks, for providing broadband connectivity. Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel Vodafone Essar Idea Cellular Reliance Communications Tata Teleservices

Source: Telecom Regulatory Authority of India, Department of Telecommunications 1As of September 2016

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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

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DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (2/3)

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

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DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (3/3)

Focus areas of urban development in Madhya Pradesh

Water supply Sewerage system Solid-waste management Others

The average per capita water In cities such as Indore, Indore and Ujjain generate Two projects worth US$ supply in major cities, such as around 55% of the around 500 tonnes per day 75.6 million have been Indore, is around 80 litres per day. population is connected (TPD) and 160 TPD of sanctioned between to a sewage network. solid-waste, respectively. 2006-07 and 2009-10 Under the JNNURM, cities are for improvement of the being planned to achieve per capita Under the JNNURM, Under the JNNURM, the drainage systems. water supply of 135 litres per day the entire population in entire solid waste is between 2015 and 2021. the cities will be expected to be collected Seven projects worth connected to the and treated. around US$ 139.5 Sixty seven projects worth US$ sewage network. million have been 243.8 million have been approved A project worth US$ 10.7 sanctioned for between March 13 and March 2014 Three projects worth million has been improvement of the and are in the transition phase for US$ 100 million have sanctioned. transport system. water supply under JNNURM. been sanctioned in 2006-07 for sewage Three solid waste During 2015-16, the government treatment under management projects have proposed an outlay of US$ 355.87 JNNURM. been identified in Dewas, million for improving rural & urban Sagar and . water supply under the Water Supply and Sanitation Scheme.

Source: MP Trade & Investment Facilitation Corporation Ltd., JNNURM, Ministry of Urban Development, Government of India, TechSci Research

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

Project cost Name of project Sector PPP type Status (US$ million) Operation and Road upgradation (Lebad-Jaora) Project Build-Operate-Transfer (BOT) Transport 64.30 maintenance stage Road Upgradation Project (Bankhlafata-Kogawa- Operation and Not available Transport 5.14 Borawa-Sarvardevala) Project maintenance stage Operation and Road upgradation (Jaora-Nayagaon) Project Build-Operate-Transfer (BOT) Transport 61.73 maintenance stage Road Upgradation Project (Bahari-Hanumana) Design-Build-Finance-Operate- Operation and Transport 16.32 Project Transfer (DBFOT) maintenance stage Design-Build-Finance-Operate- Operation and Road Upgradation (Bhopal-Dewas) Project Transport 65.21 Transfer (DBFOT) maintenance stage Road Upgradation Project (Badwani-Palsood- Design-Build-Finance-Operate- Operation and Transport 15.89 Sendhawa) Project Transfer (DBFOT) maintenance stage Road Upgradation Project (Ashok Nagar-Vidisha) Build-Operate-Transfer (BOT) Operation and Transport 13.31 Project Annuity maintenance stage Operation and Electricity Distribution Project (Ujjain) Not available Energy 10.70 maintenance stage Road Upgradation Project (Ashapur-Khalwa- Operation and Build-Operate-Transfer Annuity Transport 17.28 Singhot) Project maintenance stage Operation and Dewas-Ujjain-Badnagar-Badnawar Road Project Build-Operate-Transfer (BOT) Transport 7.53 maintenance stage Build-Operate-Transfer (BOT) Operation and Road Upgradation Project (Alirajpur-Jobat) Project Transport 6.92 Annuity maintenance stage

Source: Department of Economic Affairs MARCH 2017 For updated information, please visit www.ibef.org 28 MADHYA PRADESH THE LAND OF DIAMONDS

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

Project cost Name of project Sector PPP type Status (US$ million) Design-Build-Finance- Operation and Road Upgradation Project (-Lalbarra) Project Transport 6.50 Operate-Transfer (DBFOT) maintenance stage Build-Operate-Transfer (BOT) Operation and Road Upgradation (Tyonda-Ganjbasoda) Project Transport 22.32 Annuity maintenance stage Design-Build-Finance- Operation and Road Upgradation Project (Umari-Phoop-Pratapur) Project Transport 11.51 Operate-Transfer (DBFOT) maintenance stage Road Upgradation Project (Ujjain-Unhel-Nagda-Ghiloda) Design-Build-Finance- Operation and Transport 28.89 Project Operate-Transfer (DBFOT) maintenance stage Build-Operate-Transfer (BOT) Operation and Road Upgradation Project (Ujjain-Simhastha) Project Transport 10.79 Annuity maintenance stage Operation and Road Upgradation (Gwalior-Bhind up to UP Border) Project Build-Operate-Transfer (BOT) Transport 45.85 maintenance stage Road Upgradation Project (Uchera-Nagod-Singhpur- Design-Build-Finance- Operation and Transport 17.22 Kalinnjer Road) Project Operate-Transfer (DBFOT) maintenance stage Build-Operate-Transfer (BOT) Operation and Road Upgradation (Sheopur-Badora-Khawajapur) Project Transport 9.45 Annuity maintenance stage Design-Build-Finance- Operation and Road Upgradation Project (Tikamgarh-Mehironi) Project Transport 4.49 Operate-Transfer (DBFOT) maintenance stage Build-Operate-Transfer (BOT) Operation and Road Upgradation (Dehgaon-Bamori) Project Transport 5.51 Annuity maintenance stage Road Upgradation Project (Tikamgarh-Jatara-Palera- Design-Build-Finance- Operation and Transport 15.69 Nowgaon) Project Operate-Transfer (DBFOT) maintenance stage

Source: Department of Economic Affairs MARCH 2017 For updated information, please visit www.ibef.org 29 MADHYA PRADESH THE LAND OF DIAMONDS

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

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.

Indore SEZ Some of the key companies in Indore SEZ Notified area 1,113.72 hectares • SRF • Processing zone 519.95 hectare Flexituff • India Nets 26 industrial and 2 trading Operational • New Tech Pipes units • Advance Enzyme Technology Number of allotments 42 • Ipca Laboratories Number of units operating 41 • Amulya Exports • Emerald Tobacco Investment under US$ 62.2 million (9 units) implementation • Pratibha Syntex Exports (2014-15) US$ 489.25 million Source: Ministry of Commerce & Industry

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

As of July 2016, the state had 9 formal approved SEZs that are proposed to be set up in Madhya Pradesh. Industry Location No of SEZs Formally approved SEZs as of July 2016 Bhopal, Indore, Gwalior and Jabalpur are the major locations where SEZs have been approved. These SEZs Indore, Gwalior, have been proposed for IT/ITeS, mineral-based, agro-based IT/ITeS Jabalpur, 8 and multi-products. Bhopal

Gems and Indore 1 Jewellery Industry Location No of SEZs In-principle approved SEZs

Chhindwara, Notified SEZs as of July 2016 Multi-product 1 Sehore IT/ITeS Indore, Gwalior 5

Source: Special Economic Zones in India- Ministry of Commerce & Industry, TechSci Research

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SOCIAL INFRASTRUCTURE – EDUCATION.. (1/2)

Madhya Pradesh had a literacy rate of 70.6%; the male literacy Category Literacy rate (%) rate is 80.5% and the female literacy rate is 60.0%. Total 70.6 During 2015-16 (till November 2015), under technical Male 80.5 education, the state had a total of 676 institutions with annual Female 60.0 enrolment of 146 thousand students.

Moreover, under the “Gaon Ki Beti Yojna”, which deals in Educational institutions (as of April 2015) providing rural girls with high education, 36.79 thousand girls Primary schools 84,011 were benefited during 2015-16 (till December 2015). Total high schools (including private) 6,636 “Make in Madhya Pradesh” is to further the agenda of CM who Total higher secondary schools recently called upon a business community from the US to 5,211 bring their expertise in the social sectors. (including private) Government colleges 342 Universities 16 Reputed institutes of Madhya Pradesh Polytechnic institutes 64 Indian Institute of Management (IIM), Indore Engineering & architecture colleges 229 Indian Institute of Forest Management, Bhopal Management institutes 266 Institute of Hotel Management, Bhopal International Institute of Professional Studies, Indore Medical colleges 13 Indian Institute of Technology (IIT), Indore Dental Colleges 11 Source: AICTE, Directorate of Technical Education, Madhya Pradesh, Higher Education Department- Government colleges of Madhya Pradesh, Madhya Pradesh Education Portal, National Health Portal, TechSci Research

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SOCIAL INFRASTRUCTURE – EDUCATION.. (2/2)

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 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

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SOCIAL INFRASTRUCTURE – HEALTH

During 2014-15, the healthcare services network of Madhya Pradesh comprised 51 district hospitals, 334 community Health institutions (2014-15) health centres, 1,171 primary health centres and 9,192 sub- District hospitals 51 health centres. Primary health centres 1,171 During 2015-16 (till October 2015), around 965 thousand beneficiaries were benefited with free services under Sub-Health centres 9,192 Deendayal Hospital Yojana. Community health centres 334

The state has a total of 604 ambulances under National Civil hospitals 66 Ambulance Service, using which 479 thousand patients Homeopathic hospitals 2 were benefited during April-October 2015. Special newborn care units 53 Nutrition rehabilitation centres 316 Health indicators of Madhya Pradesh Gram aarogya kendras 48,959 1 Birth rate 26.3 1 Death rate 8.0 The state government proposed an allocation of US$ 2 862.18 million for the development of Public Health And Infant mortality rate 54 Family Welfare Department in the state, during 2016-17. Life expectancy at birth (years) Under Public Health Engineering, an allocation of US$ Male (2011-15) 64.5 397.10 million was made by the state government, as per the state budget 2016-17. Female (2011-15) 65.3 Source: Ministry of Health & Family Welfare, Government of India, Sample Registration System (SRS) Bulletin, 1Per thousand persons, 2Per thousand live births

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CULTURAL INFRASTRUCTURE

Madhya Pradesh’s history dates back to the pre-historic age. Among the cultural festivals of Madhya Pradesh, the The United Nations Educational, Scientific and Cultural Khajuraho Festival of Dance & the Tansen Music Festival in Organisation (UNESCO) has declared 3 locations in the state Gwalior celebrate classical Indian dance & music. These as heritage sites: temples at Khajuraho, Buddhist monuments festivals are well attended by both domestic & international at Sanchi & rock shelters of Bhimbetka. tourists. The state government will also provide an amount of US$ 23.56 million in order to increase the activities related to Bhimbetka cave paintings are the biggest repository of culture & archaeology. prehistoric art in India. Sanchi Stupa, once a centre of Buddhist learning, stands unique as one of the most well-preserved Type of museum (no) stupas of India. The Directorate of Archaeology, Archives and State-level museums 6 Museums, is in charge of the support of 349 District-level museums 11 memorials/landmarks and 44 museums over the state. Local museums 6 The state government has built up sports academies to Site museums 5 advance games like hockey, shooting, equestrian, water sports District Archaeological Association museums 16 & martial arts. Eminent sports personalities are awarded with the Vikram Awards, the Ekalavya Awards & the Vishwamitra (lifetime achievement) Award. State-level museums in Madhya Pradesh • State Museum, Bhopal In order to enhance the cultural infrastructure in the state, the • Government of Madhya Pradesh allocated US$ 30.12 million Central Museum, Indore during 2016-17. • Rani Durgawati Museum, Jabalpur • Tulsi Museum, Ramvan, Satna However, for sports & youth welfare in the state, an allocation • Maharaja Chhatrasal Museum, Chhatarpur of US$ 33.11 million was proposed by the Government of • Gujri Mahal Museum, Gwalior Madhya Pradesh, as per state budget 2016-17. Source: Directorate of Archaeology, Archives and Museums, Government of Madhya Pradesh; State Budget 2015-16 MARCH 2017 For updated information, please visit www.ibef.org 35 MADHYA PRADESH THE LAND OF DIAMONDS

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

Malanpur, Ghirongi, Banmore, Growth centres Mandideep, Pillukhedi Borgaon, Maneri Chainpura

Large and medium industries (LMI): 54 LMI: 69 LMI: 17 Units established Small scale industries (SSI): 558 SSI: 346 SSI: 154 HEG, Crompton Greaves, Procter & Surya Roshini, Godrej, Grasim, Raymond, Hindustan Major companies Gamble, Godrej, Lupin, Oswal, Cadbury, JK, Crompton Greaves Petroleum, Ayur Vardhman Stone park, food park, Inland Container Depot (ICD), Food Special infrastructure ICD, food park, stone park mineral & Agri specific Park SEZ Engineering cluster, logistic hub, food Readymade garment park, food Agri SEZ, food park, Proposed project park, plastic park, textile park park textile park, apparel park

Source: MP Trade & Investment Facilitation Corp. Ltd. MARCH 2017 For updated information, please visit www.ibef.org 36 MADHYA PRADESH THE LAND OF DIAMONDS

INDUSTRIAL INFRASTRUCTURE … (2/4)

Infrastructure Indore AKVN Rewa AKVN Ujjain AKVN Sagar AKVN Area developed 3,332 307.4 431.6 359 (hectares) Pithampur, Kheda, Megh Purena, Sidhgawa, Growth centres Rewa, Waidhan, Purena Dewas, Maxi Nagar Pratappura Units established LMI:272, SSI: 1213 LMI: 8, SSI: 99 LMI: 35, SSI: 171 LMI: 9; SSI: 199 Eicher, Bridgestone, Ghadi Detergent, Hindustan Motors, Man Ranbaxy, S.Kumars, RSPL (Rohit Major companies Birla, Jaypee Force, Flexituff, Kinetic, Gajra, Kirloskar, Tata Surfactant), Sanmati Cummins Foods Multi-product SEZ, IT SEZ, Food Park, Apparel Park, Special infrastructure IIDC Food park, IIDC IIDC Inland Container Depot (ICD), IIDC Knowledge city, new Auto testing track, food industrial area under park, pharma cluster, Proposed projects Industrial area the Delhi Mumbai Industrial Area namkeen park, logistics Industrial Corridor park project

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

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INDUSTRIAL INFRASTRUCTURE … (3/4) The Industrial Promotion Policy 2010 aims to upgrade industrial infrastructure & provide land to investment Under the Centre’s Plastic Park Scheme, Industries & projects without difficulties. Commerce Department is developing plastic parks at an estimated cost of US$ 27.93 million at Tamot in Raisen Under the provision of Madhya Pradesh Investment and Billoa district, Gwalior. 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 Potential clusters state into 6 clusters: Indore, Bhopal, Jabalpur, Gwalior, Pharmaceutical, textile, food processing, Indore Rewa & Sagar. IT, auto components Engineering, textile, biotech, herbal, IT, The state has excellent infrastructure, with 19 industrial Bhopal food processing development parks, 129 industrial areas, 6 food parks, 8 integrated development centres, 3 dry parks, 1 stone park, 1 Garment, mineral, stone, forest, herbal, Jabalpur IT park, 1 SEZ & an apparel park at Indore. food processing Electronics, IT, FMCG, engineering, A gems & jewellery park is being developed in Indore to Gwalior stone, food processing promote the diamond industry in the state. The government plans to develop the project on its own, after failed attempts Rewa Mineral, cement, forest produce to find a suitable partner on PPP basis. Sagar Mineral processing, stone 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 Source: MP Facilitation Centre for NRI, Indore Special National Board for Wildlife. Economic Zone, www.indoresez.nic.in, TechSci Research SEZ: Special Economic Zone MARCH 2017 For updated information, please visit www.ibef.org 38 MADHYA PRADESH THE LAND OF DIAMONDS

INDUSTRIAL INFRASTRUCTURE … (4/4)

Industrial clusters in Madhya Pradesh

Gwalior

Bhopal Rewa

Jabalpur

Indore

Sagar

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

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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 Gwalior Pradesh, namely Bhopal, Indore, Gwalior, Ujjain, Jabalpur, Sagar & Satna.

Smart cities in Madhya Pradesh Satna Cities Population Literacy rate

Bhopal 2,371,061 80.37% Ujjain Sagar Bhopal Indore 3,276,697 80.87% Jabalpur Indore 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

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KEY INDUSTRIES.. (1/2) 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, Proposed investments consumer goods, medications & pharmaceuticals, mines & Year IEMs filed minerals, manufacturing & textiles sectors. (in US$ billion) The state government is keen to develop a strong mechanical base. 2010-11 226 33.89 The Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) & its subsidiary, Madhya Pradesh Audyogik 2011-12 191 17.34 Kendra Vikas Nigam Limited (MPAKVN) are the key nodal offices 2012-13 126 1.75 for development in the state. Some of the major industrial areas in the state are Bhopal, Sehore, 2013-14 114 14.7 Raisen, Harda, Mandideep, Dewas, Pithampur, Khandwa, Jhabua, 2014-15 99 2.03 Dhar, Ujjain, Mandsaur, Ratlam, Jabalpur, Indore, Shajapur, Satna & Gwalior. 2015-16 110 2.26 1 Under Industrial Promotion Policy 2010, the government aims to 2016-17 28 0.59 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. Source: Madhya Pradesh State Portal, DIPP 1As of May 2016

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KEY INDUSTRIES.. (2/2)

In the state budget 2016-17, for the rural Key industries in Madhya Pradesh industries, Government of Madhya Pradesh allocated an amount of US$ 54.94 million. Further, Auto and auto components Mineral based industries the work on installation of 25 industrial units over Textile Manufacturing 2,344 hectare land is under process. However, work on 6 industrial units along with Crystal IT Cement Tourism park, readymade garment park, etc. over an area Agro-based industries IT and ITeS of 295 hectares was completed during 2015-16. After the validation of various self employment Forest based industries Logistics & warehousing schemes in the state, the government decided to Pharmaceuticals Biotechnology 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.

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

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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- Some key players connected regions of Madhya Pradesh to emerge as auto clusters. • Eicher Motors Ltd • Force Motors Ltd Supported by facilities such as an auto testing track & auto • Hindustan Motors Ltd research centre, Pithampur region has emerged as a major • Mahindra Two Wheelers Ltd 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.

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

• Eicher Motors Limited, incorporated in 1982, is the flagship company of the Eicher Group in India and a leading player in the Indian automobile industry. VE Commercial Vehicles Ltd (VECV), is a 50:50 joint venture between the Volvo Group (Volvo) and Eicher Motors Limited (EML). The company has a state-of-the-art Eicher Motors Ltd 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 Force Motors Ltd 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 Ltd • Hindustan Motors Limited (HML), the pioneer in automobile manufacturing in India, is the flagship company of the C. K. Birla Group. The company manufactures passenger cars, 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 Two • Mahindra 2-Wheelers Limited was founded in 2008 when Mahindra & Mahindra Limited (M&M), India's Wheelers Ltd 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.

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KEY INDUSTRIES – TEXTILES … (1/3) 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 Textile infrastructure in Madhya Pradesh a total production of around 1.75 million bales (170 kg each). Composite mills 20 Cotton textile mills are based in Indore, Dewas, Ujjain, Malanpur, Pithampur, Exclusive weaving units 8 Khargone, Gwalior & Bhopal. Export oriented spinning units 12 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 Handlooms 47,000 Nigam (Indore) Ltd. Looms 6,500 Indore has been identified as the region for infrastructure development under Power looms 43,290 the Textiles Centre Infrastructure Development Scheme (TCIDS). The city is a cluster of the readymade garments industry with over 1,260 garment units. Power loom units 17,524 Extending support to the industry, the state government has announced plans Rotors 14,348 to upgrade existing apparel clusters at Indore & Jabalpur. The state government Spindles 1,414,000 has established a textile park in . Spinning units 40 The central government plans to develop a second textile park at Indore, and US$ 6.6 million would be sanctioned for this purpose. Some key players Textile Research Association and Export Promotion Council are to be set up in Madhya Pradesh. • Century Textiles and Industries Ltd During FY 2015-16, Government of Madhya Pradesh proposed the following • Grasim Industries Ltd outlays: US$ 103.66 thousand for implementation of Intensive Cotton • Vardhman Textiles Ltd Development Programme; US$ 2.27 million for supply of electricity to power • Raymond Ltd loom weavers; US$ 38.19 thousand for institutional training to youth weavers; US$ 380.69 thousand for integrated cluster development of handloom / power Source: Madhya Pradesh Business Line , Public- loom & US$ 297.40 thousand for Handloom Development Scheme. Private Partnerships in India, Madhya Pradesh State Industrial Development Corporation MARCH 2017 For updated information, please visit www.ibef.org 45 MADHYA PRADESH THE LAND OF DIAMONDS

KEY INDUSTRIES – TEXTILES … (2/3) 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 Cotton production (in lakh bales) in Madhya Pradesh capping. Furthermore, the government provided 100% 22.0 assistance in plant & machinery for 8 years under Industrial 20.0 20.0 Investment Promotion Assistance Scheme. 18.0 17.7 17.3 17.5 18.0 15.3 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 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 ¹ FY 16* 2015-16 in the state stood at US$ 0.07 million. During 2015-16, the state recorded 214 MT of total raw silk Cotton productivity (in kgs/hectare) in Madhya Pradesh production.

As per the budget 2015-16, to enhance the mulberry silk 615.1 production in the state, the state government is targeting to 572.2 559 540 518.3 provide employment opportunities to 24,940 beneficiaries. 490 463 481.6 424 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. FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 ¹ FY 16* In January 2017, the Defence Ministry announced its plans to set up a unit of national importance at Morena, with Source: The Cotton Corporation of India Ltd, investment worth US$ 223.11 million. 1 Projected, As per Cotton Advisory Board, * Projected as per Cotton Advisory Board TechSci Research MARCH 2017 For updated information, please visit www.ibef.org 46 MADHYA PRADESH THE LAND OF DIAMONDS

KEY INDUSTRIES – TEXTILES … (3/3)

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

Vardhman Textiles Ltd • The Vardhman Group is a leading textile conglomerate in India having a turnover of US$ 1.1 Billion. The yarn manufacturing units are located in Mandideep (130,994 spindles), Satlapur (222,624 spindles) and Bhudhni (60,000 spindles). In September 2013, the company added 36,288 spindles to its Satlapur plant. Furthermore, the Bhudhni plant has a fabric weaving unit (400 looms) and a fabric processing unit with a capacity of 40 million metres per annum. The company posted total revenues of US$ 888.25 million in 2015-16.

Raymond Ltd • Raymond is a major fabric manufacturer in India. Besides, the company also has business interests in engineering and aviation. The company is one of the largest integrated manufacturers of worsted fabric in the world and commands over 60.0% 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.

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KEY INDUSTRIES – CEMENT … (1/2)

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 Some of the key players

significant opportunities for the growth of the cement industry. • Birla Corporation Ltd Satna, Jawad and Neemuch of Madhya Pradesh feature among • ACC Limited the seven major limestone clusters in India. These clusters • Jaiprakash Associates Ltd. provide easy access to raw material resources for the cement • Heidelberg Cement India Ltd industry. • Cement Corporation of India Ltd. 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 Source: Cement Information System (CIS)- Department of Industrial 4,326.3 million tonnes. Policy & Promotion, Government of India; Cement Manufacturers’ Association, TechSci Research As of 2015, Madhya Pradesh has 13 cement plants, namely Birla Vikas & Satna Cement Works (1), Cement Corporation of India Ltd. (2), Century Cement (1), Heidelberg Cement India Ltd (1), Jaypee Cement (4), K.J.S. Cement (1), 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.

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KEY INDUSTRIES – CEMENT … (2/2)

• Birla Corporation Limited is the flagship company of the M P Birla Group with business interests in Birla Corp Ltd 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 Ltd • ACC Limited is one of the largest cement manufacturers in India with 17 cement plants, more than 40 ready-mix concrete plants, 21 sales offices and over 9,000 dealers. In Madhya Pradesh, it has plants in Kymore with a capacity of 2.7 million tonnes per annum (MTPA). The company’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, Everest Industries Ltd 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 Heidelberg Cement under the laws of The Netherlands, which is 100% controlled by HeidelbergCement AG, which India Ltd 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.

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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 Some of the key players

zones are present in the state and a large variety of rare • Ipca Industries and valuable medicinal and herbal plants are available. • Lupin Ltd • Piramal Healthcare Ltd A nodal agency has been constituted to oversee the • Sun Pharmaceutical Industries Ltd developments of the sector. Incentives in the form of capital subsidies and training assistance have been arranged to • Teva encourage investment. Source: MP Trade & Investment Facilitation Corp Ltd, TechSci Research Biotechnology & pharmaceuticals have been recognised as thrust sectors. The state has formulated a Biotechnology Policy, which has created a conducive environment for the In 2016-17, the government plans to sanction 2,000 new bio-pharmaceutical industry in the state. health centres in the state. The government has also proposed to spend US$ 310 million under the Rashtriya Bio Technology Park (Indore) and Bio Fuel Park (Rewa) are Swasthya Mission. major infrastructure facilities operational in the state. An amount of US$ 150 million is proposed to be spent on Agricultural research on hybrid varieties and clinical trials construction of smart medical city near Sanchi. are among the key activities being undertaken by the state.

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

• Ipca is a fully integrated Indian pharmaceutical company with a strong thrust on exports. The Ipca Laboratories Ltd 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 & Lupin Ltd 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 Piramal Healthcare Ltd 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 • 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 Industries Ltd 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.

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KEY INDUSTRIES – MANUFACTURING … (1/2)

Madhya Pradesh State Industrial Development Some of the key players Corporation & its subsidiaries have developed

numerous growth centres across the state. The • Bharat Heavy Electricals Ltd Industrial Policy of the state provides numerous • Kirloskar Brothers Ltd incentives for setting up manufacturing units. • Kores (India) Ltd • Crompton Greaves The manufacturing sector in Madhya Pradesh is witnessing strong growth on account of improving • Birla Corporation industrial infrastructure, policy incentives, labour resources & central location of the state. NSDP originating from manufacturing sub- sector at constant prices (US$ billion) 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 2.29 2.47 2.46 2.60 2.79 2.12 originating from the manufacturing sub-sector grew 1.38 2.04 1.85 1.82 at a CAGR of 0.9%. 13.25 12.95 13.44 10.25 10.92 11.64 11.71 11.68 10.48 10.79

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, Unregistered Registered the state has initiated expansion of existing IT parks, stone parks, apparel parks & SEZs. Source: TechSci Estimates based on “Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh,

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KEY INDUSTRIES – MANUFACTURING … (2/2)

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

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

Factors such as industrial infrastructure in growth centres, cheap labour & central location are the key influencers for Some key players establishing consumer goods manufacturing facilities in the • Mondelez India Foods Ltd state. • Procter & Gamble (P&G) Home Products Ltd • Dabur India Ltd Many multinational companies, such as Mondelez, Procter & Gamble, Hindustan Unilever Limited, Coca Cola & Cargill, • Hindustan Unilever Ltd have their manufacturing plants in the state.

A majority of the manufacturing plants are located in Patanjali Ayurveda Ltd. plans to set up a food processing industrial areas of the state such as Malanpur, Mandideep, unit in the state, with an investment of US$76 million. Pithampur & Chhindwara.

The bottling division of Coca Cola in India, Hindustan Procter & Gamble’s strategic move of relocating its central Coca-Cola Beverages Ltd. (HCCBL), is planning to invest warehouse for FMCG products to Bhopal has helped it save US$ 111.56 million to set up a bottling plant at in annual logistics expenses of around US$ 20 million. Many Hoshangabad, Madhya Pradesh. The 110 acre plant, FMCG companies are now relocating their warehouses to would facilitate multiple bottling lines for its carbonated replicate this success. beverages such as Coca-Cola, Sprite, Fanta, Thums Up and Limca. To promote growth in the FMCG sector, the state government has established Gwalior as an FMCG cluster.

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

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

Procter & Gamble (P&G) • P&G Home Products Ltd, one of India's largest consumer goods companies, is a 100% Home Products Ltd 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 Dabur India Ltd 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 • 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.

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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

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

Adani • Adani Wilmar Ltd (AWL) is a 50:50 joint venture between two global corporations - Adani Group of India Wilmar Ltd 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 • Anik Industries Limited has business interests in dairy and milk derivative products, wind power, mining & Ltd 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 Ltd • 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 • 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 Industries Ltd 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.

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KEY INDUSTRIES – TOURISM … (1/2)

Madhya Pradesh is blessed with scenic beauty, rich International tourist arrivals (in millions) heritage of pilgrim centres, temples & wildlife sanctuaries. The state government has identified the tourism sector as a 0.42 key growth area. In 2015, foreign tourist arrivals in the state were recorded to 0.32 be 421.36 thousand. 0.27 0.28 0.28 0.25 0.25 0.23 The state government has shortlisted 18 noteworthy 0.2 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 2007 2008 2009 2010 2011 2012 2013 2014 2015 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 Central Sanctioning and Monitoring Committee (CSMC) the Ramayana Circuit. The government has allocated a sum for the Swadesh Darshan Scheme in Ministry of Tourism has of US$ 10.69 million for development of this circuit. approved a sum of US$ 15.28 million for the development of Heritage Circuit in state of Madhya Pradesh. The circuit will As per budget 2016-17, the state government proposed an cover cities of Gwalior- Orchha-Khajuraho-Chanderi- allocation of US$ 38.81 million for the development of the Bhimbetka-Mandu. The project would facilitate world class state’s tourism department. infrastructural development of the sites, including developing In February 2017, the state tourism advertisement ‘MP Mein a theme park & convention centre in Khajuraho. Site Dil Hua Bachche bagged the prestigious AFI (American illumination, construction of tourist facilitation centres & Film Institute) award for the best ongoing campaign, which parking area are other interventions proposed in the circuit. was launched in June 2016.

Source: Tourism Statistics 2014-15

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KEY INDUSTRIES – TOURISM … (2/2) The state has 382 tourist sites, including world heritage sites. Major places of tourist interest in Madhya Pradesh are as follows: Measures to promote tourism in Madhya Pradesh Kanha: One of the largest wild-life sanctuaries in

Asia. • Promote and market as an attractive tourist Khajuraho: Some of the most famous sculptures in destination. the world. • Provide basic infrastructure at lesser known tourist Bhimbetka: The oldest cave paintings in the world. locations. Sanchi: The oldest Buddhist Stupa in the world. • Develop eco-friendly and sustainable tourism Bandhavgarh: The highest density of tiger facilities. population in the country. : Scenic marble rocks rising up to 100 • Develop and promote eco- and adventure tourism. feet. • Invite PPP to convert old palaces into heritage The state has 9 national parks & 25 wildlife hotels. sanctuaries. Numerous festivals, such as All India Kalidasa Festival, Tansen Samaroh (Gwalior), Lokranjan & Source: Annual Plan of Madhya Pradesh, 2012-13 Khajuraho Dance Festival (Khajuraho), are celebrated in the state, which attract tourists.

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.

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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.

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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. IT parks st The state is home to the country’s 1 Indian Institute of Crystal IT Park (51,097 sq. m) Indore Information Technology & Management (IIITM), which is Hardware and Software Technology Park located in Gwalior. The government has proposed to set up Bhopal 21 IT SEZs across the state. 5 information technology (200 acres) parks, located at Bhopal, Indore (2), Gwalior & Jabalpur, are Software Technology Park (100,000 sq ft) Indore at various stages of development. Around 20 companies have signed MoUs worth US$ 1.4 IT Park (50 acres) Gwalior billion for investments in the IT sector within the state. Various information technology infrastructures such as the IT Park (90 acres) Jabalpur wide area networks, data centres, etc. are being used for exchanging the information by different departments of the IT projects in Madhya Pradesh state government. A government society MAP_IT (Madhya Pradesh Agency IT Park, Gwalior 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 Hardware & Software government proposed allocation of US$36.16 million for Technology Park, Bhopal different activities under science & technology during 2015- 16. Software Technology Crystal IT Park, Park, Indore Contract for setting up a special IT processing centre was Jabalpur IT Park, Jabalpur Indore granted to Fujitsu Optel Ltd., at Mandideep in Raisen, at an estimated cost of US$ 8.48 million.

Source: Maps of India MARCH 2017 For updated information, please visit www.ibef.org 61 MADHYA PRADESH THE LAND OF DIAMONDS

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 , Sagar, Tikamgarh, Satna, Rajgarh, Betul, Indore, Ujjain, Neemuch, Gwalior, Bhind and Hoshangabad in December 2016.

Source: Indian Bureau of Mines

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KEY INDUSTRIES – MINERAL-BASED INDUSTRY … (2/3)

Mineral production in Madhya Pradesh (‘000 MT) Mineral production of Madhya Pradesh as a share of India’s reserves in per cent in 2015-16 2015-16 Mineral (till February 2016)) (till February 2016)

Diamond 100% Coal 96,436

Copper Ore 64.96% Bauxite 505.8 Copper Conc 48.82% Manganese ore 33.92% Copper ore 2,300 Coal 16.93% Copper conc. 62.11 Limestone 12.61%

Phosphorite 4.54% Iron ore 2,291 Bauxite 1.93% Manganese ore 638.2 Iron Ore 1.66%

Phosphorite 62.68

Diamond (in carat) 32.06

Limestone 34,576

Source: Ministry of Mines, Government of India, TechSci Research MARCH 2017 For updated information, please visit www.ibef.org 63 MADHYA PRADESH THE LAND OF DIAMONDS

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

• 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 Hindustan Copper Ltd 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, NMDC Ltd 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.

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

TRIFAC, established in 2004, is the state’s single window clearance facility. As a nodal agency, it extends customised incentives to mega projects (investment over US$ 4.6 million).

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

Source: MP Trade and Investment Facilitation Corporation Ltd TRIFAC - Trade and Investment Facilitation Corporation Limited

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

TRIFAC activities Description

• For project investments over US$ 4.6 million, TRIFAC facilitates obtaining of APEX Level Investment Promotion customised economic package through APEX Level Committee headed by Empowered Committee Chief Minister.

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

Madhya Pradesh Investment Facilitation Act • Acts as member secretary for APEX and State Level Committee, which 2008 ensures speedy approvals for various clearances/consents/permissions.

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

• TRIFAC organises investor meets, conducts road shows and industry Investment drive interactive sessions to stimulate investments in the state.

• TRIFAC acts as a nodal agency for executing the MoU process for Memorandum of Understanding 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 • TRIFAC acts as a nodal agency for providing industrial investment 2004 assistance in the state.

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

• Responsible for maintaining a land database meant for setting up industries Land Bank in the state.

Source: MP Trade and Investment Facilitation Corporation Ltd TRIFAC - Trade and Investment Facilitation Corporation Limited MARCH 2017 For updated information, please visit www.ibef.org 66 MADHYA PRADESH THE LAND OF DIAMONDS

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

District authorities/ State DI/ Dept. of Town and Permission for land use Country Planning (in case industry is located outside an industrial area)

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

Town and Country Planning/ Municipal and local Approval for construction activity and building plan authorities/ Chief Inspector of Factories/ Pollution Control Board, Electricity Board

No objection certificate Fire Department

Central and State Excise Departments, Sales Tax Provisional Trade Tax registrations 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 MARCH 2017 For updated information, please visit www.ibef.org 67 MADHYA PRADESH THE LAND OF DIAMONDS

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 Department Registration under Central Sales Tax Act 1956

After commencement of production/activity

Registration Department of Commerce, Industry & Employment

MARCH 2017 For updated information, please visit www.ibef.org 68 MADHYA PRADESH THE LAND OF DIAMONDS

KEY INVESTMENT PROMOTION OFFICES

Agency Description

• The department is responsible for industrialisation in the state through development of small, medium and large scale industries and new investments. Department of Commerce, Industry The department is also responsible for creation of basic infrastructure and & Employment development of industrial parks. The department has several support institutions such as Madhya Pradesh State Industrial Development Corporation (MPSIDC) and Audhyogik Kendra Vikas Nigam (AKVN) in six cities.

• District Trade and Industries Centres are district-level offices of the Department of District Trade and Industries Centre Commerce, Industry and Employment of the state government. These centres are empowered to provide clearance for setting up industrial units.

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

MARCH 2017 For updated information, please visit www.ibef.org 69 MADHYA PRADESH THE LAND OF DIAMONDS

CONTACT LIST

Agency Contact information

Mantralaya, Vallabh Bhawan Bhopal - 462 004 Department of Commerce, Industry & Madhya Pradesh, India Employment Phone: 91-755-2441061 Website: www.mpindustry.org

Directorate of Industries Vindhyachal Bhawan Bhopal Directorate of Industries Madhya Pradesh, India Phone: 91-755-2677988, 2677966 Email: [email protected] Website: www.mpindustry.org

AVN Towers 192 Zone-1, M.P. Nagar Bhopal-462 011, Madhya Pradesh Madhya Pradesh State Industrial Development Phone: 91-755 - 427 0370 Corporation Limited Fax: 91-755- 427 0280 E-mail: [email protected], [email protected] Website: www.mpsidc.org

MARCH 2017 For updated information, please visit www.ibef.org 70 MADHYA PRADESH THE LAND OF DIAMONDS

COST OF DOING BUSINESS IN MADHYA PRADESH

Cost parameter Cost estimate Source

Cost of industrial land US$ 4.8-28.7 Industry sources (per sq. ft.)

Hotel cost per room per night US$ 76.6-95.7 Leading hotels in the state (four-star, five-star hotel)

Residential rent US$ 268-335 Industry sources (for a 2,000 sq ft house, per month) Commercial rent US$ 0.7-3.2 Industry sources (per sq ft per month) Madhya Pradesh Electricity Regulatory Power cost (per kWh) Industrial: 8-12.4 US cents Commission

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

Source: Madhya Pradesh State Portal, PwC Research

MARCH 2017 For updated information, please visit www.ibef.org 71 MADHYA PRADESH THE LAND OF DIAMONDS

STATE ACTS & POLICIES … (1/3)

Information Technology Investment Policy 2014

Objectives • To increase the flow of investments in the state in the information technology industry. • To maximise direct and indirect employment generation opportunities for the youth in the state. Read more

Tourism Policy 2010 (As amended in 2014)

Objectives • To promote balanced and sustainable tourism, which enables socio-economic development and establishes Madhya Pradesh as a destination that provides a complete tourism experience. • Aims at providing an effective regulatory mechanism for sustainable tourism and developing the sector through PPP. Read more

Industrial Promotion Policy 2014

Objectives • To improve investor facilitation and ensure rapid economic development and employment opportunities through sustainable use of available resources. • Promotes SMEs and ensures PPP initiatives for industrialisation. • Envisages an industry-friendly administration and attracting investments by developing quality infrastructure. Read more

MARCH 2017 For updated information, please visit www.ibef.org 72 MADHYA PRADESH THE LAND OF DIAMONDS

STATE ACTS & POLICIES … (2/3)

Madhya Pradesh Investment Facilitation Act 2008

Objectives • Ensures quick and timely disposal of investors’ applications at various levels. • To strengthen & make the single-window system more effective. Read more

IT Policy 2006

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

Biotechnology Policy 2003

Objectives • 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. Read more

MARCH 2017 For updated information, please visit www.ibef.org 73 MADHYA PRADESH THE LAND OF DIAMONDS

STATE ACTS & POLICIES … (3/3)

Special Economic Zone Policy 2000

• To promote development of SEZs in the state. Objectives • To increase employment opportunities in the state. Read more

Analog Semiconductor Fabrication Investment Policy 2015

• To increase the flow of investments in the field of electronics manufacturing in the state. Objectives • Maximising employment generation opportunities and promoting establishment of FAB units.

Read more

BPO Policy 2014

• To boost the flow of investments in the BPO/BPM industry along with promoting establishment of Objectives IT/ITeS units in the urban as well as rural areas in the state. • To generate and maximise employment opportunities for youth as well as development and infrastructure opportunities in smaller cities in the state. Read more

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

MARCH 2017 For updated information, please visit www.ibef.org 74 MADHYA PRADESH THE LAND OF DIAMONDS

CONFERENCES/SUMMITS FOR 2016-17

Venue of Summit Date Summit

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

International Conference on Electrical, Electronics, Computer , Civil and Mechanical Indore 11th September, 2016 Engineering (ICEECCME-16)

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

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

International Conference on Electrical, Electronics, Computer , Civil and Mechanical Gwalior 11th December, 2016 Engineering (ICEECCME-16)

Source: India Conference Alerts MARCH 2017 For updated information, please visit www.ibef.org 75 MADHYA PRADESH THE LAND OF DIAMONDS

ANNEXURE

Average exchange rates

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 Source: RBI

MARCH 2017 For updated information, please visit www.ibef.org 76 MADHYA PRADESH THE LAND OF DIAMONDS

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MARCH 2017 For updated information, please visit www.ibef.org 77