Madhya Pradesh State Report February 2018

For updated information, please visit www.ibef.org February 2018
MADHYA PRADESH
THE LAND OF DIAMONDS

Table of Content
Executive Summary……………….….…….3
Advantage State…………………..….……..4
Vision 2018…………………………………..5
Madhya Pradesh – An Introduction….…....6
Budget 2016-17…………………….....……17
Business Opportunities .............................41
Doing Business in Madhya Pradesh......…71
State Acts & Policies…...…...................…72

For updated information, please visit www.ibef.orgMADHYA PRADESH3
EXECUTIVE SUMMARY
 GSDP of Madhya Pradesh grew at a compound annual growth rate (CAGR) of 15.21% between FY12 and
FY17.
Strong economy
 The state is rich in natural resources: fuels, minerals, agriculture & biodiversity.
 Madhya Pradesh has ample reserves of coal & coal-bed methane (8.38% of India’s total coal reserves & 218.04
BCM of methane).
 The state has the largest reserves of diamond & copper in India.
 Madhya Pradesh has significant reserves of limestone, manganese & dolomite.
Rich in natural resources
 Madhya Pradesh boasts of rich ancient cultural & religious heritage.
 Due to a thick forest cover, the state has immense potential for wild life, adventure & eco-tourism.
Potential for 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 Jabalpur, industry parks in Indore & food parks at multiple locations aim
to promote sectoral growth.
 MP is emerging as a solar power hub with an installed solar capacity of 1.14 GW as of October 2017.
Infrastructure support
Source: Directorate of Economics and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas, MNRE

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

MADHYA PRADESH VISION
Housing
 Improve civic infrastructure,
including public & household
sanitation facilities
 Expand availability of affordable
housing
Agriculture
 Expand the outreach of agriculture
technology & irrigation to remote
farms.
 Promote farm level diversification
and value addition.
Transport
 Develop the transportation
network to enhance rural
connectivity
 Reform the institutional
machinery for creating public
transport facilities
Infrastructure
Skill
development
Investment
promotion
 Skill development by expanding
training infrastructure & capacity to
aid 1 million youth in attaining
wages & self employment
 Make the state a world class
tourist destination
 Promote religious, adventure &
heritage tourism & attract private
investment
 Connect all villages through
world class highways
 To be a leader in renewable
energy & green technology
 Keep the state power surplus by
addition to the power generation
capacity
Vision
Environment  Promote social & agro forestry
 Revitalise ground water
resources
 Private sector participation in
maintaining waste disposal &
water conservation
Tourism
 Enhance the ease of doing
business for the benefit of
investors
 Attract higher investments in
manufacturing, services &
labour intensive sectors
Source: Government of Madhya Pradesh

MADHYA PRADESH FACT FILE
 Madhya Pradesh is located in central India. The state is surrounded
by Uttar Pradesh in North, Chhattisgarh in East, Maharashtra in
South, Gujarat and Rajasthan in west.
 The most commonly spoken language of the state is Hindi. English
and Marathi are the other languages used.
 Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of the key
cities of the state.
 There are 11 agro-climatic conditions and a variety of soils available
in the state to support cultivation of a wide range of crops.
Parameters Madhya Pradesh
Capital Bhopal
Geographical area (sq km) 308,000
Administrative districts (No) 51
Population density (persons per sq km) 236
Total population (million) 72.6
Male population (million) 37.6
Female population (million) 35.0
Sex ratio (females per 1,000 males) 931
Literacy rate (%) 70.6
Source: Government of Madhya Pradesh website, National Informatics Centre Madhya Pradesh

MADHYA PRADESH IN FIGURES … (1/2)
Parameter Madhya Pradesh All states Source
Economy 2016-17 2016-17
GSDP as a percentage of all states’ GSDP 4.20 100.0
Aranca Estimates based on “Advanced Estimates”
provided by Directorate of Economics and
Statistics of Madhya Pradesh
GSDP growth rate (%) 17.74 11.52
Per capita GSDP (US$) 1,261.89 NA
Physical Infrastructure
Installed power capacity (MW) 20,119.32 334,399.83 Central Electricity Authority, as of January 2018
Wireless subscribers (No) 73,099,362 1,167,435,645
Telecom Regulatory Authority of India, as of
December 2017
Internet subscribers (No) 21,830,000 429,230,000
Telecom Regulatory Authority of India, as of
September 2017
National Highway length (km) 7,854 115,435
NHAI & Roads and Building Department, as of
June 2017
Airports (No) 5 125 Airports Authority of India

MADHYA PRADESH IN FIGURES … (2/2)
Parameter Madhya Pradesh All states Source
Social Indicators
Literacy rate (%) 70.6 73.0 Census 2011
Birth rate (per 1,000 population) 25.1 20.4 SRS Bulletin
Investments
FDI equity inflows (US$ billion) 1.391 367.93
Department of Industrial Policy & Promotion, From
April 2000 to December 2017
Industrial Infrastructure
PPP projects completed & operational (No) 164 1,534
DEA, Ministry of Finance, Government of India,
February 2018
Operating SEZs (No) 3 222
Ministry of Commerce & Industry, Department of
Commerce, December 2017
1Including Chhattisgarh PPP: Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

ECONOMIC SNAPSHOT – GSDP
 At current prices, the gross state domestic product (GSDP) of
Madhya Pradesh for 2016-17 stood at US$ 99.41 billion.
 Between FY12 and FY17, GSDP of the state grew at a CAGR of
15.21%.
Visakhapatnam port traffic (million tonnes)GSDP of Madhya Pradesh at current prices (in US$ billion)
48.98
59.12
67.94
74.81
84.43
99.41
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR 15.21 %
Source: Advanced Estimates” provided by Directorate of Economics and Statistics, Government of Madhya Pradesh
Note: US$ 1 = Rs 64.4273

ECONOMIC SNAPSHOT – NSDP
 The net state domestic product (NSDP) of Madhya Pradesh was
about US$ 88.77 billion in 2016-17.
 Between FY12 and FY17, state’s NSDP grew at a CAGR of about
15.16%.
Visakhapatnam port traffic (million tonnes)NSDP of Madhya Pradesh at current prices (in US$ billion)
43.83
51.83
60.75
66.73
75.12
88.77
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR 15.16 %
Source: Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh, Government of Madhya Pradesh
Note: US$ 1 = Rs 64.4273

ECONOMIC SNAPSHOT – PER CAPITA GSDP
 The state’s per capita GSDP* in 2016-17 was US$ 1,261.89 in
comparison with US$ 668.68 in 2005-06.
 Per capita NSDP in the state increased at a CAGR of 13.54%
between FY12 and FY17.
Visakhapatnam port traffic (million tonnes)Per capita GSDP of Madhya Pradesh at current prices (in US$)
668.69
795.52
900.95
977.68
1087.47
1261.89
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR 13.54 %
Note: Per Capita GSDP^ - calculated using GSDP in million US$/population in million, Population estimated using NSDP and per capita NSDP figures provided by MOSPI

ECONOMIC SNAPSHOT – PER CAPITA NSDP
 The state’s per capita NSDP* in 2016-17 was US$ 1,126.83 in
comparison with US$ 598.35 in 2011-12.
 Per capita GSDP of the state increased at a CAGR of 13.50%
between FY12 and FY17.
Visakhapatnam port traffic (million tonnes)Per capita GSDP of Madhya Pradesh at current prices (in US$)
598.36
697.39
805.52
872.03
967.51
1126.83
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR 13.50 %
Note: Per Capita NSDP^ - calculated using NSDP in million US$/population in million, Population estimated using NSDP and per capita NSDP figures provided by MOSPI

ECONOMIC SNAPSHOT – PERCENTAGE
DISTRIBUTION OF GSVA
 In 2016-17, the primary sector contributed 41.43% to the state’s
GSVA at current prices, followed by tertiary sector with a contribution
of 38.80% & secondary sector contributing 19.77%.
 At a CAGR of 19.7%, the primary sector witnessed the fastest
growth among the three sectors, between FY12 and FY17.
 The tertiary sector expanded at a CAGR of 14.7% between FY12
and FY17. Growth has been driven by trade, hotels, real estate,
finance, insurance, transport, communications & other services.
 The secondary sector expanded at a CAGR of 7.9% between FY12
and FY17driven by manufacturing, electricity, gas & water supply &
construction sectors.
Visakhapatnam port traffic (million tonnes)GVA composition by sector
33.85%
41.43%
27.09% 19.77%
39.06% 38.80%
2011-12 2016-17
Primary Sector Secondary Sector Tertiary Sector
19.7%
14.7%
7.9%
CAGR
Source: MOSPI

ECONOMIC SNAPSHOT – AGRICULTURAL
PRODUCTION…(1/2)
 Agriculture is the main source of livelihood for the people of the
Madhya Pradesh. In 2016-17, the state recorded utilisation of
1,741.79 thousand hectares of land for production of horticulture
crops.
 Wheat, soyabean, gram, sugarcane, rice, maize, cotton, rapeseed,
mustard & arhar are the major crops of the state. In 2016-17, total
food grain production in the state stood at 32.98 million metric
tonnes.
 In 2016-17, total pulses production in the state stood at around 6.25
million tonnes.
 Madhya Pradesh is the largest producer of pulses, oilseeds
soyabean and gram in the country. The state is the 2nd highest
producer of wheat, masoor & mustard across India. It is one of the
leading producers of garlic & coriander. The production of wheat,
cotton, baajra, corn, gram, soyabean, mustard, groundnut, paddy,
jowar & corn in the state, is above the national average.
 US$ 674.14 million were allocated to farmers’ welfare and agriculture
development in state budget 2017-18.
Crop Annual production – 2016-17 (‘000 MT)
Wheat 17,939.3
Fruits 5,937.04
Vegetables 16,664.66
Sugarcane 4,730.0
Onion 2,256
Rice 4,226.8
Food grains 32,983.0
Spices 690.80
Honey 1.87
Coarse cereals 4,567.5
Total pulses 6,249.4
Source: MP State Facts Profile Department of Agriculture and Cooperation, National Horticulture Board, Aranca Research
Note: * 2nd advance estimates for 2016-17, US$1 = Rs 64.4273 for 2017-18 figures

ECONOMIC SNAPSHOT – AGRICULTURAL
PRODUCTION…(2/2)
 In August 2017, the state government launched ‘Bhavantar Bhugtan Yojana’ or ‘Price Deficit Financing Scheme’ will hedge price risks in
agriculture. Under the scheme, farmers will be compensated if they have to sell the notified crops at distressed prices which are below the
Minimum Support Price (MSP) set by the Union Government.
 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. As per budget 2017-18, provision of US$ 310 million has been made under
Prime Minister Crop Insurance Scheme for agriculture.
 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 2017-18, US$ 1.53 billion would be sanctioned by the state government for irrigation schemes and US$ 21 million for micro irrigation in the
state. Moreover, an allocation of US$ 118.8 million was made by the state government for horticulture & food processing sector.
Source: State Budget

ECONOMIC SNAPSHOT – FDI INFLOWS &
INVESTMENTS
 According to the Department of Industrial Policy & Promotion (DIPP),
cumulative FDI inflows*, from April 2000 to December 2017, totaled
to US$ 1.39 billion.
 Power generation & manufacturing were the key sectors which
attracted the majority share of FDI inflow during 2014-15. In addition,
the investments in real estate & services are also gaining
momentum.
 With a capital investment of US$ 488.62 million Government of
Madhya Pradesh approved 6 projects in January 2017.
Visakhapatnam port traffic (million tonnes)FDI equity inflows1, 2008-09 to 2017-18*(US$ million)
44
54
451
123
220
119
100
80
76
20
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18*
Source: Department Of Industrial Policy & Promotion1 Including Chhattisgarh
Note: * As of December 2017

STATE BUDGET 2017-18
Total budgeted expenditure in 2017-18 is estimated to be US$ 26.38 billion.
Department Budget 2017-18 (US$ million)
School Education 3,084.56
Energy 2,607.9
Rural Development 2,233,21
Urban Development and Environment 1,783.25
Public Works 1,331.11
Source: State Budget 2017-18
Note: US$ = Rs 64.4273

PHYSICAL INFRASTRUCTURE – ROADS
 Madhya Pradesh has national highways measuring 7,854* km. The
state also has 10,859 km of state highways.
 US$ 926 million has been allocated for construction of roads and
bridges in the state budget 2017-18.
 Development of major roads in the state is managed by Madhya
Pradesh Road Development Corporation Limited (MPRDC), which
executes tasks taken up under Public–Private Partnership (PPP) &
those supported by Asian Development Bank (ADB). As per the
Department of Economic Affairs, the state had 131 government PPP
projects in the roads sector at various stages of development.
 Under Prime Minister Graamin Sadak Yojana, 3,960.561 km of roads
have been completed in the state as of February 2018.
 For the development of various roads in the state, allocation of US$
1.12 billion has been proposed by the state government
 As per budget 2017-18, provision of US$ 62.08 million under
Mukhyamantri Gram Sadak Yojana & that of US$ 28.86 million for
State Rural Road Connectivity Scheme, have been made.
 In February 2017, the cabinet sanctioned the renovation of 10,000
km of rural roads, under the Chief Minister's Rural Roads Scheme.
Road type Road length (km) (2015)
National highways 7,854*
State highways 10,859
Major district roads 19,574
Village roads 24,209
Road length 59,835
 As per the state budget 2016-17, work on development of various
district roads had started in 2015-16 and the renovation of these
roads is expected to be completed over a span of three years.
However, for this purpose, the state government is trying to secure a
loan from ADB as well as new development banks.
 In November 2016, the New Development Bank created by BRICS
countries approved a loan of US$ 350 million for the development of
major district roads in the state.
Source: NHAI, Ministry of Road Transport & Highways, State Budget 2016-17, * - as of June 2017

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.
 In June 2017, Bhopal’s railway station Habibganj became the
country’s first railway station to be redeveloped into an attractive
commercial hub with hotels, offices & shops under a public-private
partnership within the next three years. The project for maintenance
& operations has been given to Bansal Group for 8 years.
 In December 2016, Madhya Pradesh Cabinet approved the detailed
project reports (DPRs) of the Metro rail projects for Bhopal & Indore,
costing US$2.12 billion. In September 2017, a joint venture between
DB Engineering & Consulting GmbH, Geodata Engineering S.p.A.
and Louis Berger Group won the contract for these two projects.
 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 & 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 & 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,
fertilizer & de-oiled cake.
Source: Maps of India

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
December 2017, passenger traffic at Indore airport reached 211,699
passengers with overall aircraft movement of 1,682 aircrafts. For the
same month, passenger traffic at Bhopal airport was 64,572
passengers with overall aircraft movement of 646 aircrafts.
 Both Indore & Bhopal airports have strong cargo handling capacity.
In December 2017, Indore airport handled 917 tonnes of cargo,
whereas Bhopal airport handled 92 tonnes of cargo. Modernisation
work of Bhopal & Indore airports has also been completed.
Airport 2016-17 2017-18*
Indore 1,784,073 1,654,958
Bhopal 676,015 529,265
No. of passengers
Airport indicators in Madhya Pradesh
Airport 2016-17 2017-18*
Indore 14,396 13,679
Bhopal 6,949 5,320
Aircraft movement
Airport 2016-17 2017-18*
Indore 7,668 8,229
Bhopal 904 868
Freight (in tonnes)
Source: Airports Authority of India, *for the period April 2017 to December 2017

PHYSICAL INFRASTRUCTURE – POWER … (1/3)
 In January 2018, Madhya Pradesh had total installed power
generation capacity of 20,119.32 MW, comprising 5,867.62 MW
under state utilities, 5,070.70 MW under central utilities & 9,181 MW
under the private sector.
 Of the total installed power generation capacity, 12,731.70 MW was
contributed by thermal power, 3,223.66 MW was contributed by
hydropower, 273.00 MW was contributed by nuclear power &
renewable power contributed 3,890.96 MW.
 Madhya Pradesh is on its way to become a solar power hub, with
114 projects currently. As on November 2017, Madhya Pradesh have
11 Small Hydro Power Projects with the capacity of 86.16 MW.
 The total budget allocation for the energy sector in the state is
estimated to be US$ 2.6 billion during 2017-18.
 In May 2017, 2 new indigenous nuclear power reactors of 700 MW
capacity each were approved by the Union Government. The
reactors will be built at Chutka in Madhya Pradesh.
 In December 2017, foundation stone was laid for the world’s largest
ultra mega solar power plant at Gurh in Madhya Pradesh for an
investment of Rs 4,500 crore (US$ 695.09 million), which will spread
across 1,600 hectares of land and generate 750 MW of electricity.
Installed power capacity (MW)
8,574
9,351
12,902
14,259
15,845
18,571
19,766
20,119
Break-up of installed capacity by source of power generation
(2017-18*)
63%
16%
19%
2%
Thermal Power
Hydropower
Renewable Power
Nuclear Power
Source: Central Electricity Authority
Source: Central Electricity Authority; * - as of January 2018, (1) – Figures as of June 2017

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

 Through the Atal Jyoti Abhiyaan, the state government aims to provide round-the-clock quality power supply.
 The scheme is currently operational in six districts, namely Jabalpur, Mandla, Shahdol, Umaria, Anooppur and Burhanpur.
 Under project name Vindhyachal, NTPC has commissioned the country’s largest power generation plant in the state. Unit-13 of Vindhyachal TPP-
V, with capacity of 500 MW, was commissioned in August 2015. With this the total approved capacity of 4,760 MW was installed by the company.
 The coal based Sasan UMPP aims to build large capacities at low cost. The resultant generated power would be sold at low tariffs. In April 2015,
the 3,960 MW Sasan ultra mega power project was 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% PLF (plant load factor).
 In April 2017, the state government signed a project agreement with solar power companies for Rewa Ultra Mega Solar Park. The project is being
led by Rewa Ultra Mega Solar Ltd. (RUMSL), a joint venture between the Solar Energy Corporation of India (SECI) and Madhya Pradesh Urja
Vikas Nigam Limited (MPUVN). International Finance Corporation (IFC), a member of the World Bank Group, will mobilise US$ 550 million in
private investment for the project.

PHYSICAL INFRASTRUCTURE – TELECOM
 According to Telecom Regulatory Authority of India (TRAI), Madhya
Pradesh (including Chhattisgarh) had nearly 73.10 million wireless
subscribers & 0.98 million wireline subscribers, as of December
2017.
 As of December 2017, teledensity (telephone connections per 100
persons) in Madhya Pradesh was 69.69%.
 The state has been identified by Ministry of Home Affairs for
provision of Telecom Connectivity in LWE affected areas. The
scheme is being executed by BSNL.
 At the end of December 2017, 24,166,009 people have submitted
requests for mobile number portability in the state.
 The state has given consent for establishment of BharatNet/ National
Optical Fibre Network (NOFN) project. The project is planned to
connect all gram panchayats through optical fibre, utilising existing
fibres of PSUs viz. BSNL, RailTel & Power Grid & laying incremental
fibre wherever necessary to bridge the connectivity gap between
gram panchayats (GPs) and blocks, for providing broadband
connectivity.
Some of the major telecom operators in Madhya Pradesh
 Bharat Sanchar Nigam Limited (BSNL)
 Bharti Airtel
 Vodafone Essar
 Idea Cellular
 Reliance Communications
 Tata Teleservices
Telecom infrastructure - as of December 2017
Wireless subscribers 73,099,362
Wire-line subscribers 978,193
Internet subscribers^ 21,830,000
Teledensity (in%) 69.69
Source: Telecom Regulatory Authority of India, Department of Telecommunications, *including Chhattisgarh
Note: ^ - as of September 2017

DEVELOPMENT PROJECTS: URBAN
INFRASTRUCTURE … (1/3)
 Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 27 projects costing around US$ 418.65 million were sanctioned for the
development of urban centers 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) program 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 were constructed in around 145 thousand personal and public toilets of the state, as of 2015-
16.
 In 2017 under Swachh Bharat Mission, Indore was declared the cleanest city whereas Bhopal was second out of approximately 500 cities.
 In 2015, Madhya Pradesh came up with set of programs and policies to make itself a manufacturing hub, with an aim to push for Make-in-Madhya
Pradesh initiative with focus on MSMEs.
 In May 2017, the state government announced that it will build 2 million households over the next two years for the urban and rural poor. Each
house will be built with US$ 4,462.29 in centre-state subsidy and US$ 2,974.86 in state supported financing.
Source: Bhopal Municipal Corporation, NNURM, Ministry of Urban Development, Government of India

 As per the budget 2016-17, following announcements were made for enhancement of urban infrastructure in the state:
• Allocation of US$ 1.63 billion was 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 was 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, and allocated US$ 543.2 million under
Pradhan Mantri Awas Yojna.
• 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 was also 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.
• US$ 155 million was allocated to ‘Housing for All’ scheme in urban areas and USD 1.78 billion to Urban Administration and Development.
• The presence of numerous prominent technical, management and other professional institutes have made Madhya Pradesh an ideal
destination for startups hub.
• Madhya Pradesh has aligned with the Government of India’s “Startup India Vision” by creating conducive innovative and technological
entrepreneurial ecosystem through ‘MP Incubation & Startup Policy 2016’ to encourage and promote a Startup culture within the state.
• In the state budget of 2017-18, the government allocated US$ 123.7 million for self-employment schemes under Industries and Employment.
Source: Budget 2016-17

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

DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE
PARTNERSHIP PROJECTS … (1/2)
Name of project Sector PPP type Status Project cost (US$ million)
Road upgradation (Lebad-Jaora) Project Build-Operate-Transfer (BOT) Transport 64.30 Operation and maintenance stage
Road Upgradation Project (Bankhlafata-
Kogawa-Borawa-Sarvardevala) Project
Not available Transport 5.14 Operation and maintenance stage
Road upgradation (Jaora-Nayagaon)
Project
Build-Operate-Transfer (BOT) Transport 61.73 Operation and maintenance stage
Road Upgradation Project (Bahari-
Hanumana) Project
Design-Build-Finance-
Operate-Transfer (DBFOT)
Transport 16.32 Operation and maintenance stage
Road Upgradation (Bhopal-Dewas)
Project
Road Upgradation Project (Badwani-
Palsood-Sendhawa) Project
Road Upgradation Project (Ashok Nagar-
Vidisha) Project
Build-Operate-Transfer (BOT)
Annuity
Electricity Distribution Project (Ujjain) Not available Energy 10.70 Operation and maintenance stage
Road Upgradation Project (Ashapur-
Khalwa-Singhot) Project
Build-Operate-Transfer
Annuity
Dewas-Ujjain-Badnagar-Badnawar Road
Project
Road Upgradation Project (Alirajpur-
Jobat) Project
Annuity
Source: Department of Economic Affairs

DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE
PARTNERSHIP PROJECTS … (2/2)
Name of project Sector PPP type Status Project cost (US$ million)
Road Upgradation Project (Waraseoni-
Lalbarra) Project
Road Upgradation (Tyonda-Ganjbasoda)
Project
Annuity
Road Upgradation Project (Umari-Phoop-
Pratapur) Project
Road Upgradation Project (Ujjain-Unhel-
Nagda-Ghiloda) Project
Road Upgradation Project (Ujjain-
Simhastha) Project
Annuity
Road Upgradation (Gwalior-Bhind up to
UP Border) Project
Road Upgradation Project (Uchera-
Nagod-Singhpur-Kalinnjer Road) Project
Road Upgradation (Sheopur-Badora-
Khawajapur) Project
Annuity
Road Upgradation Project (Tikamgarh-
Mehironi) Project
Road Upgradation (Dehgaon-Bamori)
Project
Annuity
Road Upgradation Project (Tikamgarh-
Jatara-Palera-Nowgaon) Project
Source: Department of Economic Affairs

DEVELOPMENT PROJECTS: SPECIAL ECONOMIC
ZONES (SEZs) … (1/2)
 The state has one operational SEZ with the name Crystal IT Park
SEZ for IT & ITeS enabled services.
 The SEZ aims to provide an international, competitive and hassle-
free environment for export-oriented production.
 It is exempted from custom duty on import of capital goods, raw
material and spares, among others. No licence is required for
imports.
 Central excise duty is exempted on procurement of capital goods,
raw material and spares among others from the domestic market.
Barring a few sectors, 100% FDI in the manufacturing sector is
allowed through the automatic route.
Some of the key companies in Indore SEZ
 SRF
 Flexituff
 India Nets
 New Tech Pipes
 Advance Enzyme Technology
 Ipca Laboratories
 Amulya Exports
 Emerald Tobacco
 Pratibha Synte
Indore SEZ
Notified area 1,113.72 hectares
Processing zone 519.95 hectare
Operational 26 industrial and 2 trading units
Number of allotments 123
Number of units operating 42
Investment under implementation US$ 62.2 million (9 units)
Exports (as of June 2017) US$ 214.54 million
Source: Ministry of Commerce & Industry

DEVELOPMENT PROJECTS: SPECIAL ECONOMIC
ZONES (SEZs) … (2/2)
 As of December 2017, the state had 10 formal approved SEZs that
are proposed to be set up in Madhya Pradesh.
 Bhopal, Indore, Gwalior and Jabalpur are the major locations where
SEZs have been approved. These SEZs have been proposed for
IT/ITeS, mineral-based, agro-based and multi-products.
Industry Location No of SEZs
Formally approved SEZs as of December 2017
IT/ITeS
Indore, Gwalior, Jabalpur,
Bhopal
8
Gems and Jewellery Indore 1
Multi Product Chhindwara 1
Notified SEZs as of December 2017
IT/ITeS Indore, Gwalior 5
Source: Special Economic Zones in India- Ministry of Commerce & Industry, Aranca Research

SOCIAL INFRASTRUCTURE – EDUCATION.. (1/2)
 Madhya Pradesh had a literacy rate of 70.6%; the male literacy rate
is 80.5% and the female literacy rate is 60.0%.
 During 2015-16 (till November 2015), under technical education, the
state had a total of 676 institutions with annual enrolment of 146
thousand students.
 Moreover, under the “Gaon Ki Beti Yojna”, which deals in providing
rural girls with high education, 36.79 thousand girls were benefited
during 2015-16 (till December 2015).
 “Make in Madhya Pradesh” is to further the agenda of CM who
recently called upon a business community from the US to bring their
expertise in the social sectors.
Category Literacy rate (%)
Total 70.6
Male 80.5
Female 60.0
Reputed institutes of Madhya Pradesh
 Indian Institute of Management (IIM), Indore
 Indian Institute of Forest Management, Bhopal
 Institute of Hotel Management, Bhopal
 International Institute of Professional Studies, Indore
 Indian Institute of Technology (IIT), Indore
Educational institutions (as of 2016-17)
Primary schools 83,983
Total high schools (including private) 4,774
Total higher secondary schools (including private) 5,211
#
Government colleges 457
Universities 16
#
Polytechnic institutes 69
Engineering & architecture colleges 232
Management institutes 266
#
Medical colleges 13
#
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, Aranca Research
Note: #Figures as of April 2015

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 the budget 2017-18, the government proposed an allocation of US$ 3.08 billion, US$ 355.97 million & US$ 212.21 million for the
development of school education, higher education & medical education departments in the state.
 Under Rashtriya Madhyamik Shiksha Abhiyan, allocation of US$ 75.61 million was proposed by the state government during 2016-17.
 During 2017-18, the state government is targeting upgradation of 520 high schools & 240 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.
 In the budget 2017-18, the government proposed an allocation of US$ 15.52 million under skill development scheme.
 In May 2017, the state government had decided to teach engineering in Hindi from the new academic session. The students will be asked to
choose between English and Hindi medium of study during admission to engineering courses.
Source: AICTE

SOCIAL INFRASTRUCTURE – HEALTH
 As of February 2018, the healthcare services network of Madhya
Pradesh comprised 52 district hospitals, 394 community health
centres, 1,435 primary health centres and 11,618 sub-health centres.
 During 2015-16 (till October 2015), around 965 thousand
beneficiaries were benefited with free services under Deendayal
Hospital Yojana.
 The state has a total of 604 ambulances under National Ambulance
Service, using which 479 thousand patients were benefited during
April-October 2015.
Health institutions (February 2018)
District hospitals 52
Primary health centres 1,435
Sub-Health centres 11,618
Community health centres 394
Civil hospitals* 66
Homeopathic hospitals* 2
Special newborn care units* 53
Nutrition rehabilitation centres* 316
Gram aarogya kendras* 48,959
 The state government proposed an allocation of US$ 883.5 million
for the development of Public Health And Family Welfare
Department in the state, during 2017-18.
 Under Public Health Engineering, an allocation of US$ 569.58 million
was made by the state government, as per the state budget 2017-18.
Health indicators of Madhya Pradesh
Birth rate
1
25.1
Death rate
1
7.1
Infant mortality rate
2
47
Life expectancy at birth (years)
Male (2011-15) 64.5
Female (2011-15) 65.3
Source: Ministry of Health & Family Welfare, Government of India, Sample Registration System (SRS) Bulletin, 1Per thousand persons, 2Per thousand live births
Note: * as of March 2017

CULTURAL INFRASTRUCTURE
 Madhya Pradesh’s history dates back to the pre-historic age. The
United Nations Educational, Scientific and Cultural Organisation
(UNESCO) has declared 3 locations in the state as heritage sites:
temples at Khajuraho, Buddhist monuments at Sanchi & rock
shelters of Bhimbetka.
 Bhimbetka cave paintings are the biggest repository of prehistoric art
in India. Sanchi Stupa, once a centre of Buddhist learning, stands
unique as one of the most well-preserved stupas of India. The
Directorate of Archaeology, Archives and Museums, is in charge of
the support of 349 memorials/landmarks and 44 museums over the
state.
 The state government has built up sports academies to advance
games like hockey, shooting, equestrian, water sports & martial arts.
Eminent sports personalities are awarded with the Vikram Awards,
the Ekalavya Awards & the Vishwamitra (lifetime achievement)
Award.
 In order to enhance the cultural infrastructure in the state, the
Government of Madhya Pradesh had allocated US$ 30.12 million
during 2016-17.
 For sports & youth welfare in the state, an allocation of US$ 34.73
million was proposed by the Government of Madhya Pradesh, as per
state budget 2017-18.
Type of museum (no)
State-level museums 6
District-level museums 12
Local museums 7
Site museums 6
District Archaeological
Association museums
16
 Among the cultural festivals of Madhya Pradesh, the Khajuraho
Festival of Dance & the Tansen Music Festival in Gwalior celebrate
classical Indian dance & music. These festivals are well attended by
both domestic & international tourists. The state government will also
provide an amount of US$ 34 million in the state budget of 2017-18
in order to increase the activities related to culture & archaeology.
State-level museums in Madhya Pradesh
 State Museum, Bhopal
 Central Museum, Indore
 Rani Durgawati Museum, Jabalpur
 Tulsi Museum, Ramvan, Satna
 Maharaja Chhatrasal Museum, Chhatarpur
 Gujri Mahal Museum, Gwalior
Source: Directorate of Archaeology, Archives and Museums, Government of Madhya Pradesh; State Budget 2015-16

INDUSTRIAL INFRASTRUCTURE … (1/4)
 Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) is the nodal agency for industrial growth in the state. It is the central
point to coordinate, activate and ensure implementation of mega infrastructure projects.
 MPSIDC has identified 19 industrial growth centres to attract medium and large industries & Non-Resident Indians (NRls) to the state and provide
various facilities and concessions to them. For a balanced & sustainable growth of industry across the state, MPSIDC established 7 growth
centres at Bhopal, Gwalior, Jabalpur, Indore, Rewa, Ujjain & Sagar. These growth centres are known as Madhya Pradesh Audyogik Kendra Vikas
Nigam Limited (AKVN).
Infrastructure Bhopal AKVN Gwalior AKVN Jabalpur AKVN
Area developed (hectares) 1,367 2,062 1,312
Growth centres Mandideep, Pillukhedi
Malanpur, Ghirongi, Banmore,
Chainpura
Borgaon, Maneri
Units established
Large and medium industries (LMI): 54
Small scale industries (SSI): 558
LMI: 69
SSI: 346
LMI: 17
SSI: 154
Major companies
HEG, Crompton Greaves, Procter &
Gamble, Godrej, Lupin, Oswal,
Vardhman
Surya Roshini, Godrej, Grasim,
Cadbury, JK, Crompton Greaves
Raymond, Hindustan Petroleum,
Ayur
Special infrastructure
Inland Container Depot (ICD), Food
Park
ICD, food park, stone park
Stone park, food park, mineral &
Agri specific SEZ
Proposed project
Engineering cluster, logistic hub, food
park, plastic park, textile park
Readymade garment park, food
park
Agri SEZ, food park, textile park,
apparel park
Source: MP Trade & Investment Facilitation Corp. Ltd.

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

 The Industrial Promotion Policy 2010 aims to upgrade industrial
infrastructure & provide land to investment projects without
difficulties.
 Under the provision of Madhya Pradesh Investment Facilitation Act
2008, the state government is keen to strengthen its single-window
system to attract investments.
 For a structured growth, the government has divided the state into 6
clusters: Indore, Bhopal, Jabalpur, Gwalior, Rewa & Sagar.
 The state has excellent infrastructure, with 19 industrial development
parks, 129 industrial areas, 6 food parks, 8 integrated development
centres, 3 dry parks, 1 stone park, 1 IT park, 1 SEZ & an apparel
park at Indore.
 A gems & jewellery park is being developed in Indore to promote the
diamond industry in the state. The government plans to develop the
project on its own, after failed attempts to find a suitable partner on
PPP basis.
 State owned NTPC plans to construct a 2,640 MW power plant in
Barethi in Chattarpur district of Madhya Pradesh at a cost of US$ 3
billion. The Expert Appraisal Committee (EAC) of Union Environment
Ministry has sought additional information with respect to clearance
from National Board for Wildlife.*
Potential clusters
Indore
Pharmaceutical, textile, food processing, IT, auto
components
Bhopal Engineering, textile, biotech, herbal, IT, food processing
Jabalpur Garment, mineral, stone, forest, herbal, food processing
Gwalior
Electronics, IT, FMCG, engineering, stone, food
processing
Rewa Mineral, cement, forest produce
Sagar Mineral processing, stone
 Under the Centre’s Plastic Park Scheme, Industries & Commerce
Department is developing plastic parks at an estimated cost of US$
27.93 million at Tamot in Raisen and Billoa district, Gwalior.
Source: MP Facilitation Centre for NRI, Indore Special Economic Zone, www.indoresez.nic.in, Aranca Research, SEZ: Special Economic Zone
Notes: * - As of February 2018, the project is still awaiting clearance.

Bhopal
Gwalior
Rewa
Sagar
Indore
Jabalpur
Industrial clusters in Madhya Pradesh
Source: Maps of India, Madhya Pradesh State Industrial Development Corporation

SMART CITIES
 As of March 2017,Madhya Pradesh was the first state to get 3 cities
shortlisted to be developed according to the smart cities parameters
for making them citizen friendly and sustainable.
 In an effort to revolutionise the infrastructure of the state, the state
government decided to revamp 7 cities of Madhya Pradesh, namely
Bhopal, Indore, Gwalior, Ujjain, Jabalpur, Sagar & Satna.
Cities Population Literacy rate
Bhopal 2,371,061 80.37%
Indore 3,276,697 80.87%
Gwalior 2,032,036 76.65%
Ujjain 1,986,864 72.34%
Jabalpur 2,463,289 81.07%
Sagar 2,378,458 76.46%
Satna 2,228,935 72.26%
Smart cities in Madhya Pradesh
Bhopal
Indore
Gwalior
Ujjain
Jabalpur
Sagar
Satna
Source: News Article, Census 2011 & Aranca Research

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, consumer
goods, medications & pharmaceuticals, mines & minerals,
manufacturing & textiles sectors.
 The state government is keen to develop a strong mechanical base.
The Madhya Pradesh State Industrial Development Corporation
Limited (MPSIDC) & its subsidiary, Madhya Pradesh Audyogik
Kendra Vikas Nigam Limited (MPAKVN) are the key nodal offices for
development in the state.
 Some of the major industrial areas in the state are Bhopal, Sehore,
Raisen, Harda, Mandideep, Dewas, Pithampur, Khandwa, Jhabua,
Dhar, Ujjain, Mandsaur, Ratlam, Jabalpur, Indore, Shajapur, Satna &
Gwalior.
 Under Industrial Promotion Policy 2010, the government aims to
promote agro-based & local natural resource-based industries.
 Tertiary sector was the largest contributor to the state economy with
a share of 38.8% of GSDP in 2016-17.
 The government approved a coated fabric manufacturing plant which
was 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.
 The number of IEMs filed in 2017 stood at 76 with proposed
investments worth US$ 1.11 billion.
Year IEMs filed Proposed investments (in US$ billion)
2015 99 2.02
2016 84 2.49
2017 76 1.11
Source: Madhya Pradesh State Portal, DIPP

KEY INDUSTRIES.. (2/2)
 In the state budget 2017-18, for the rural industries, Government of
Madhya Pradesh allocated an amount of US$ 40.03 million. Further,
the work on installation of 25 industrial units over 2,344 hectare land
is under process. However, work on 6 industrial units along with
Crystal IT park, readymade garment park, etc. over an area of 295
hectares was completed during 2015-16.
 After the validation of various self employment schemes in the state,
the government decided to start the Mukhya Mantri Yuva Udhyami
Yojana & Mukhya Mantri Aarthik Kalyan Yojana.
 Work on construction of IT parks in 4 major regions of the state,
including Indore, Gwalior, Bhopal & Jabalpur, was 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$ 9
million as per the Budget 2017-18.
 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.
 In 2017-18 budget, the state government allocated US$ 24.7 million
for New & Renewable Energy.
Key industries in Madhya Pradesh
 Auto and auto components
 Textile
 Cement
 Agro-based industries
 Forest based industries
 Pharmaceuticals
 Mineral based industries
 Manufacturing
 Tourism
 IT and ITeS
 Logistics & warehousing
 Biotechnology
Source: Madhya Pradesh State Portal, State Budget

KEY INDUSTRIES – AUTO AND AUTO COMPONENTS
… (1/2)
 Strategic location of the state, with its proximity to the automotive
hub of NCR, provide key advantages for well-connected regions of
Madhya Pradesh to emerge as auto clusters.
 Supported by facilities such as an auto testing track & auto research
centre, Pithampur region has emerged as a major auto cluster.
 The essential infrastructure foundation existing in the automotive
cluster includes power, water supply, telecommunication services &
roads.
 The Pithampur automotive cluster is among the industrial clusters in
India, which have been identified by the central government for
implementation of the Industrial Infrastructure Upgradation Scheme
(IIUS). The scheme aims at improving the competitiveness of
functional clusters across the country.
 It has numerous automotive original equipment manufacturers
(OEMs), such as Force Motors, Eicher Motors, Hindustan Motors &
Mahindra 2-Wheelers, a major tyre producing unit of Bridgestone &
about 30 auto component & ancillary units.
Some key players
 Eicher Motors Ltd
 Force Motors Ltd
 Hindustan Motors Ltd
 Mahindra Two Wheelers Ltd

KEY INDUSTRIES – AUTO AND AUTO COMPONENTS
… (2/2)
 Eicher Motors Limited, incorporated in 1982, is the flagship company of the Eicher Group in India and a leading
player in the Indian automobile industry. VE Commercial Vehicles Ltd (VECV), is a 50:50 joint venture between
the Volvo Group (Volvo) and Eicher Motors Limited (EML). The company has a state-of-the-art manufacturing
facility of buses and trucks at Pithampur with a production capacity of 48,000 vehicles, annually and an auto
component facility at Dewas (plant area of approximately 18,000 sq. m.). VECV is setting up a new engine plant in
the existing facility at Pithampur. The engine capacity was ramped up from 60,000 units to 160,000 units in the
financial year 2016-17. The company recorded revenues of US$ 357.19 million, in Q3 FY18.
 Force Motors is a vertically integrated automobile company, which designs, manufactures & markets its range of
vehicles – tractors, 3-wheelers, light commercial vehicles, multi-utility vehicles & heavy commercial vehicles. The
manufacturing plant at Pithampur was set up in 1987 under license from Daimler-Benz to manufacture utility
vehicles. The plant was further expanded in 1997. Subsequently, it also obtained ISO 9001:2000 certification in
2003. The total revenues recorded by the company stood at US$ 117.27 million in Q3 FY18.
 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$ 0.33 million in 2016-17.
 Mahindra 2-Wheelers Limited was founded in 2008 when Mahindra & Mahindra Limited (M&M), India's leading
automotive companies took over Pune-based Kinetic Motor Company Limited (KMCL). The company has a state-
of-the-art, ISO 9001 certified manufacturing facility at Pithampur in Madhya Pradesh.
Eicher Motors Ltd
Force Motors Ltd
Mahindra Two
Wheelers Ltd
Hindustan Motors Ltd

KEY INDUSTRIES – TEXTILES … (1/3)
 Madhya Pradesh is one of the major cotton producing states of India. In
2016-17*, cotton was grown on an estimated area of 599,000 hectares in
the state with a total production of around 2.10 million bales (170 kg each).
 Cotton textile mills are based in Indore, Dewas, Ujjain, Malanpur, Pithampur,
Khargone, Gwalior & Bhopal.
 An apparel park is located in the Indore SEZ & spreads over 133.38 acres of
land. The project is implemented by M.P. Audyogik Kendra Vikas Nigam
(Indore) Ltd.
 Indore has been identified as the region for infrastructure development
under the Textiles Centre Infrastructure Development Scheme (TCIDS). The
city is a cluster of the readymade garments industry with over 1,260
garment units.
 Extending support to the industry, the state government has announced
plans to upgrade existing apparel clusters at Indore & Jabalpur. The state
government has established a textile park in Chhindwara.
 The central government plans to develop a second textile park at Indore,
and US$ 6.6 million would be sanctioned for this purpose.
 Textile Research Association and Export Promotion Council are to be set up
in Madhya Pradesh.
 Trident Group is going to set up a mega industrial textile hub at Budhni in
the state. Setting up of the textile hub will entail an investment of Rs 6,250
crore (US$ 965.4 million) and generate employment for 16,500 persons.
Some key players
 Century Textiles and Industries Ltd
 Grasim Industries Ltd
 Vardhman Textiles Ltd
 Raymond Ltd
Textile infrastructure in Madhya Pradesh
Composite mills 20
Exclusive weaving units 8
Export oriented spinning units 12
Handlooms 47,000
Looms 6,500
Power looms 43,290
Power loom units 17,524
Rotors 14,348
Spindles 1,414,000
Spinning units 40
Source: Madhya Pradesh Business Line , Public-Private Partnerships in India, Madhya Pradesh State Industrial Development Corporation
Note: *provisional

 To attract investments into the sector, the government has provided an
interest subsidy for 5 years at a rate of 5% for textile projects and 7% for
composite textile projects without capping. Furthermore, the government
provided 100% assistance in plant & machinery for 8 years under Industrial
Investment Promotion Assistance Scheme.
 Under the Comprehensive Handloom Development Scheme (CHDS) &
National Handloom Development Programme Scheme (NHDP), the financial
assistance released in the last 3 years i.e. 2012-13 to 2014-15 & the current
year 2015-16 in the state stood at US$ 0.07 million.
 For the year 2016-17, the state recorded 97 MT of total raw silk production.
 There were 658 weavers covered under the Handloom Weavers’
Comprehensive Welfare Scheme in 2016-17.
 In January 2017, the government approved a textile project to Vardhman
Textile Ltd., at Mandideep, Sallapur & Budhni for modernisation &
expansion, with an estimated investment of US$ 215.68 million.
 An expansion project was granted to Sagar Manufacturing Pvt. Ltd. at
Tamot, with investment worth US$ 139.32 million in January 2017.
 In January 2017, the Defence Ministry announced its plans to set up a unit
of national importance at Morena, with investment worth US$ 223.11 million.
 The cotton production in Madhya Pradesh incresed from 1.5 million bales in
FY10 to 2.5 million bales in FY17.
Cotton production (in million bales) in Madhya Pradesh
1.5
1.8
2.0
2.2
1.7
1.8
2.1
2.5
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Cotton productivity (in kgs/hectare) in Madhya Pradesh
540.0
490.0
424.0
463.0
481.6
615.1
572.2
518.3
559.0
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15* FY16*
Source: The Cotton Corporation of India Ltd, 1 Projected, As per Cotton Advisory Board
Note: *provisional

 Century Textiles and Industries Ltd was incorporated in 1897. The company has interests in textile, rayon, cement
and paper. Yarn and denim production units of the textile business are located at Satrati in Madhya Pradesh. The
plant is equipped with 24,960 spindles for manufacturing of yarn and produced about 4,244.2 tonnes of yarn
during 2010–11. The denim division has a production capacity of 21 million metres of denim fabrics per annum.
 The company recorded revenues of US$ 322.3 million in Q3 FY18.
Century Textiles and
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 revenue earned by the company during Q3 FY18 stood at US$
691.17 million.Grasim Industries 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$ 244.31 million, Q3 FY18.
Vardhman Textiles 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$ 126.49 million, during
Q3 FY18.Raymond Ltd

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
significant opportunities for the growth of the cement industry.
 Satna, Jawad and Neemuch of Madhya Pradesh feature among the
seven major limestone clusters in India. These clusters provide easy
access to raw material resources for the cement industry.
 Most limestone deposits are concentrated in the districts of Damoh,
Dhar, Neemuch, Sheopur, Rewa, Satna & Sidhi. Total cement grade
limestone resources of the state are estimated at 4,326.3 million
tonnes.
 As of 2015, Madhya Pradesh had 13 cement plants, namely Birla
Vikas & Satna Cement Works (1), Cement Corporation of India Ltd.
(2), Century Cement (1), Heidelberg Cement India Ltd (1), Jaypee
Cement (4), K.J.S. Cement (1), Kymore Cement Works (1), Prism
Cement Ltd (1) & Ultratech- Vikram Cement Works (1).
 UltraTech Cement Ltd. has recently bought 2 cement plants &
related power assets of Jaiprakash Associates Ltd. in Madhya
Pradesh, for US$ 792.3 million.
Some of the key players
 Birla Corporation Ltd
 ACC Limited
 Jaiprakash Associates Ltd.
 Heidelberg Cement India Ltd
 Cement Corporation of India Ltd.
Source: Cement Information System (CIS)- Department of Industrial Policy & Promotion, Government of India; Cement Manufacturers’ Association, Aranca Research

KEY INDUSTRIES – CEMENT … (2/2)
 Birla Corporation Limited is the flagship company of the M P Birla Group with business interests in cement, jute
goods, polyvinyl chloride floor covering, auto trim parts and iron & steel casting. The cement plant of the company
is located in Satna, Madhya Pradesh. The plant has a capacity of 2.2 million tonnes per annum. In October 2013,
the company announced plans to set up 3 grinding cum blending units in Madhya Pradesh. The company recently
bought 2 cement plants & related power assets of Jaiprakash Associates. The total revenue recorded by the
company during Q3 FY18 was US$ 140.09 million.Birla Corp 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). For Q3 FY18, the company recorded total revenues of US$
546.85 million.
ACC Ltd
 Everest Industries Limited manufactures a range of building solutions, which include ceilings, walls, flooring,
cladding, doors, roofing and pre-engineered steel buildings. One of the five manufacturing facilities of the company
is located at Kymore in Madhya Pradesh. It is among the first manufacturers of fibre-cement roofing sheets and
accessories in India. The plant has been awarded by the state government for excellence in the fields of safety,
health and environment. The company recorded a revenue of US$ 45.34 million, during Q3 FY18.
Everest Industries Ltd
 Heidelberg Cement India Ltd is a subsidiary of Cementrum I.B.V. (a company incorporated under the laws of The
Netherlands, which is 100% controlled by HeidelbergCement AG, which is one of the largest cement
manufacturers in the world). The company has two cement plants at Damoh in Madhya Pradesh. Its cement is
sold under brand name ‘Mycem’. The company recorded a revenue of US$ 77.32 million, during Q3 FY18.Heidelberg Cement
India Ltd

KEY INDUSTRIES – PHARMACEUTICAL AND
BIOTECHNOLOGY INDUSTRY ... (1/2)
 Madhya Pradesh has a rich bio-diversity. About 25.2% of the state is
under forest cover; 11 of the 25 agro-climatic zones are present in
the state and a large variety of rare and valuable medicinal and
herbal plants are available.
 A nodal agency has been constituted to oversee the developments of
the sector. Incentives in the form of capital subsidies and training
assistance have been arranged to encourage investment.
 Biotechnology & pharmaceuticals have been recognised as thrust
sectors. The state has formulated a Biotechnology Policy, which has
created a conducive environment for the bio-pharmaceutical industry
in the state.
 Bio Technology Park (Indore) and Bio Fuel Park (Rewa) are major
infrastructure facilities operational in the state.
 Agricultural research on hybrid varieties and clinical trials are among
the key activities being undertaken by the state.
 Ipca Industries
 Lupin Ltd
 Piramal Healthcare Ltd
 Sun Pharmaceutical Industries Ltd
 Teva
Source: MP Trade & Investment Facilitation Corp Ltd, Aranca Research
 In 2016-17, the government sanctioned 2,000 new health centres in
the state. The government has also proposed to spend US$ 310
million under the Rashtriya Swasthya Mission.
 An amount of US$ 150 million is proposed to be spent on
construction of smart medical city near Sanchi.
 In January 2018, a non-financial, tripartite Memorandum of
Understanding (MoU) was signed between Godrej Consumer
Products Limited (GCPL) and the Department of Public Health and
Family Welfare, Government of Madhya Pradesh and Family Health
India (FHI), a local affiliate of FHI 360 (a US-based NGO), aimed at
achieving Malaria free Madhya Pradesh.

KEY INDUSTRIES – PHARMACEUTICAL AND
BIOTECHNOLOGY INDUSTRY ... (2/2)
 Ipca is a fully integrated Indian pharmaceutical company with a strong thrust on exports. The company has
operations in over 110 countries and exports account for around 60.0% of the sales. The company has 6 Active
Pharmaceutical Ingredient (API) manufacturing plants & 7 formulation plants in India. In Madhya Pradesh, it has
plants at Indore, Pithampur & Ratlam. The plants manufacture drug intermediaries, oral solids, liquids &
injectables, etc. & are certified by apex global agencies. During Q3 FY18, total income of the company reached
US$ 134.41 million.Ipca Laboratories Ltd
 Lupin Ltd is an innovation-led pharmaceutical company producing a wide range of generic & branded formulations
and Active Pharmaceutical Ingredients (APIs). The company has 2 plants in Madhya Pradesh – 1 at Indore for
formulations & another at Mandideep for API. The plant at Mandideep is approved by global authorities such as
World Health Organisation (WHO), United States Food and Drug Administration (USFDA) & United Kingdom
Medicine & Healthcare products Regulatory Agency (UKMHRA). The total revenue recorded by the company
during Q3 FY18 stood at US$ 394.69 million.Lupin Ltd
 Piramal Healthcare Ltd (PHL) is a globally integrated healthcare company and recorded revenues of US$ 138.68
million, during Q3 FY18. 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.
Piramal Healthcare Ltd
 Sun Pharmaceutical Industries Ltd, one of India's largest pharmaceutical companies, is an integrated, research-
based pharmaceutical company with a global presence. In the third quarter of FY 2018, the company recorded
total income of around US$ 321.08 million. 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.
Sun Pharmaceutical
Industries Ltd

KEY INDUSTRIES – MANUFACTURING … (1/2)
 Madhya Pradesh State Industrial Development Corporation & its
subsidiaries have developed numerous growth centres across the
state. The Industrial Policy of the state provides numerous incentives
for setting up manufacturing units.
 The manufacturing sector in Madhya Pradesh is witnessing strong
growth on account of improving industrial infrastructure, policy
incentives, labour resources & central location of the state.
 Districts such as Indore, Bhopal, Jabalpur, Ujjain, Gwalior, Dhar,
Satna, Dewas, Sagar & Khandwa are notable manufacturing hubs in
Madhya Pradesh. Between FY12 and FY17, gross value added
originating from the manufacturing sub-sector grew at a CAGR of
6.2%.
 For industrial modernisation, the state has undertaken measures
such as introduction of Progressive Industrial Policy, infrastructure
improvements & frequent investor meets. To facilitate the industry
with modern infrastructure, the state has initiated expansion of
existing IT parks, stone parks, apparel parks & SEZs.
 Bharat Heavy Electricals Ltd
 Kirloskar Brothers Ltd
 Kores (India) Ltd
 Crompton Greaves
Birla Corporation
Gross value added originating from manufacturing sub-sector
at
constant prices (US$ billion)
5.9
6.5 6.2
6.8
7.3
8.0
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Source: Aranca Estimates based on “Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh,

KEY INDUSTRIES – MANUFACTURING … (2/2)
 Bharat Heavy Electricals Ltd (BHEL) is a large engineering & manufacturing enterprise in India in the energy-
related & infrastructure sector. During Q3 FY18, the state recorded total income of US$ 1.04 billion. 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.
Bharat Heavy
Electricals Ltd
 Kirloskar Brothers Ltd (KBL) is the flagship company of the 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 revenue from operations of the company stood at US$ 282.94 million in 2016-17
& US$ 68.89 million during Q3 FY18. 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.Kirloskar Brothers 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.Kores (I) Ltd
 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 a revenue of US$ 145.94 million in quarter ending
December 2017.Crompton Greaves

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 establishing
consumer goods manufacturing facilities in the state.
 Many multinational companies, such as Mondelez, Procter &
Gamble, Hindustan Unilever Limited, Coca Cola & Cargill, have their
manufacturing plants in the state.
 A majority of the manufacturing plants are located in industrial areas
of the state such as Malanpur, Mandideep, Pithampur & Chhindwara.
 Procter & Gamble’s strategic move of relocating its central
warehouse for FMCG products to Bhopal has helped it save annual
logistics expenses of around US$ 20 million. Many FMCG
companies are now relocating their warehouses to replicate this
success.
 To promote growth in the FMCG sector, the state government has
established Gwalior as an FMCG cluster.
Some key players
 Mondelez India Foods Ltd
 Procter & Gamble (P&G) Home Products Ltd
 Dabur India Ltd
 Hindustan Unilever Ltd
 Patanjali Ayurveda Ltd. plans to set up a food processing unit in the
state, with an investment of US$ 76 million.
 The bottling division of Coca Cola in India, Hindustan Coca-Cola
Beverages Ltd. (HCCBL), is planning to invest US$ 111.56 million to
set up a bottling plant at in Hoshangabad, Madhya Pradesh. The 110
acre plant, would facilitate multiple bottling lines for its carbonated
beverages such as Coca-Cola, Sprite, Fanta, Thums Up and Limca.
 As of March 2017, Intex Technologies planned to invest US$ 74.31
million for setting up a manufacturing unit for mobiles, air
conditioners and consumer durable goods.

KEY INDUSTRIES – FAST MOVING CONSUMER
GOODS … (2/2)
 Mondelez India Foods Ltd is part of Mondelēz International, Inc. It operates in 5 categories – chocolate
confectionery, beverages, biscuits, gum & candy. Mondelez's key brands in India include Cadbury Dairy Milk,
Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang & Oreo. In India, the
company started its operations in 1948 and has 6 factories & 4 sales offices.
Mondelez India Foods
 P&G Home Products Ltd, one of India's largest consumer goods companies, is a 100% subsidiary of Procter &
Gamble Company, US. The company owns some of the reputed brands in the fabric, hair & baby care segments.
The company has its manufacturing plant at Mandideep in the Raisen district of Madhya Pradesh.
Procter & Gamble (P&G)
Home Products Ltd
 Dabur India Ltd is a leading consumer goods company in India with total income of US$ 307.2 million in Q4, FY17.
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 Q3 FY18 was US$ 233.22 million.
Dabur India 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 net revenue of US$ 1.35 billion during Q3 FY18.
Hindustan Unilever Ltd

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$ 118.85 million in. Budget estimate for farmer welfare as
well as development of agriculture, during 2017-18, in the state was recorded to be US$ 704.93 million. Madhya Pradesh is the largest producer of
oilseeds; it produced 8.68 million tonnes in 2016-17. accounting for around 27.05% 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 fourth largest milk producer in
India as of March 2017. Milk production in the state increased from 12.12 million tonnes in 2015-16 to 13.44 million tonnes in 2016-17. Egg
production in the state reached 1,693.96 million units in 2016-17, while, meat production in the state increased from 69.83 thousand tonnes in
2015-16 to 78.64 thousand tonnes in 2016-17.
 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 2016-17, the state recorded utilisation of 1741.79 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, Aranca Research

KEY INDUSTRIES – AGRO-BASED INDUSTRY … (2/2)
 Adani Wilmar Ltd (AWL) is a 50:50 joint venture between two global corporations - Adani Group of India and
Wilmar International Limited of Singapore. The company has production infrastructure across the country, with a
crushing capacity of over 5,750 tonnes per day and a refining capacity of over 9,000 tonnes per day. The company
has a production unit in Chhindwara and a packaging plant at Dewas in Madhya Pradesh. FORTUNE, King's,
RAAG, Bullet, Fryola and JUBILEE are the brands under which AWL sells its range of edible oils, vanaspati and
bakery shortening.Adani Wilmar Ltd
 Anik Industries Limited has business interests in dairy and milk derivative products, wind power, mining & coal,
ferro alloys, real estate and agri commodities. The company has three milk processing units in Madhya Pradesh
for manufacturing of dairy products, two at Dewas (capacity of 240,000 litres of milk per day and 400,000 litres of
milk per day) and one at Bhopal (capacity of 100,000 litres of milk per day). These units are supported by 11
chilling centres spread across the state, which collect milk from 5,000 villages. The company recorded revenue of
US$ 20.94 million during Q3 of FY2017-18.Anik Industries Ltd
 Ruchi Soya Industries Ltd is one of the major agro-based product manufacturers in India. The product portfolio of
the company includes edible oils, soya foods, bakery fat and vanaspati. It is also the largest exporter of soya foods
and lecithin from India. The company has a wide presence in Madhya Pradesh with six manufacturing plants
located at Mangla, Shujalpur, Guna, Piaparia, Gaderwada and Jabalpur and three depots at Gwalior, Jabalpur and
Indore. The company recorded total income of US$ 480.98 million in Q2 FY18.
Ruchi Soya
Industries Ltd

KEY INDUSTRIES – TOURISM … (1/2)
 Madhya Pradesh is blessed with scenic beauty, rich heritage of
pilgrim centres, temples & wildlife sanctuaries. The state government
has identified the tourism sector as a key growth area.
 In 2016, foreign tourist arrivals in the state were approximately
363.195 thousand while domestic tourists were 150.49 million.
 The state government has shortlisted 18 noteworthy centres, which
draw in large numbers of domestic and foreign tourists for further
development.
 The state government has taken initiatives to promote eco-, wildlife,
adventure, leisure, business & pilgrim tourism.
 The Ministry of Tourism has included Chitrakoot as one of the 35
mega tourist centres sanctioned to be developed. Chitrakoot will be
developed as a spiritual & wellness destination. The destination will
be developed as a part of the Ramayana Circuit. The government
has allocated a sum of US$ 10.69 million for development of this
circuit.
 As per budget 2017-18, the state government proposed an allocation
of US$ 39.75 million for the development of the state’s tourism
department.
 In February 2017, the state tourism advertisement ‘MP Mein Dil Hua
Bachche Sa’ bagged the prestigious AFI (American Film Institute)
award for the best ongoing campaign, which was launched in June
2016.
 The Central Sanctioning and Monitoring Committee (CSMC) for the
Swadesh Darshan Scheme in Ministry of Tourism has approved a
sum of US$ 15.28 million for the development of Heritage Circuit in
state of Madhya Pradesh. The circuit will cover cities of Gwalior-
Orchha-Khajuraho-Chanderi-Bhimbetka-Mandu. The project would
facilitate world class infrastructural development of the sites,
including developing a theme park & convention centre in Khajuraho.
Site illumination, construction of tourist facilitation centres & parking
area are other interventions proposed in the circuit.
 In 2016 Madhya Pradesh was among the top 5 tourist destination
state.
International tourist arrivals (in millions)
0.23
0.25
0.20
0.25
0.27
0.28
0.28
0.32
0.42
0.36
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: MP economic survey 2016-17

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:
• Kanha: One of the largest wild-life sanctuaries in Asia.
• Khajuraho: Some of the most famous sculptures in the world.
• Bhimbetka: The oldest cave paintings in the world.
• Sanchi: The oldest Buddhist Stupa in the world.
• Bandhavgarh: The highest density of tiger population in the
country.
• Bhedaghat: Scenic marble rocks rising up to 100 feet.
• The state has 9 national parks & 25 wildlife sanctuaries.
• Numerous festivals, such as All India Kalidasa Festival, Tansen
Samaroh (Gwalior), Lokranjan & Khajuraho Dance Festival
(Khajuraho), are celebrated in the state, which attract tourists.
 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.
Measures to promote tourism in Madhya Pradesh
 Promote and market as an attractive tourist destination.
 Providing decent accommodation in areas of tourist interest,
operating a transport fleet of coaches, cars and Gypsys
 Develop eco-friendly and sustainable tourism facilities.
 Develop and promote eco- and adventure tourism.
 Publicity and marketing of tourist destinations and facilities.
Source: Madhya Pradesh Tourism Policy

KEY INDUSTRIES – FOREST-BASED INDUSTRIES
 With a share of about 12.44 per cent 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% 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 2017-18 stood at US$ 419.68 million.
 Sale of forest products contributes significantly to the state revenues. Forest products are either sold through auction in commercial depots, or
through sale on pre-defined rates at Nistar depots. As of 2015, there were 40 commercial timber depots and 22 industrial bamboo depots in the
state.
Source: Forest Department, Madhya Pradesh, www.mpforest.org Trading & Development Co-Op Federation Ltd.

KEY INDUSTRIES – IT AND ITeS
 Madhya Pradesh has an optical fibre spine of more than 24,000 km
that covers 313 formative blocks over 45 districts.
 The state is home to the country’s 1st Indian Institute of Information
Technology & Management (IIITM), which is located in Gwalior. The
government has proposed to set up 21 IT SEZs across the state. 5
information technology parks, located at Bhopal, Indore (2), Gwalior
& Jabalpur, are at various stages of development.
 Around 20 companies have signed MoUs worth US$ 1.4 billion for
investments in the IT sector within the state.
 Various information technology infrastructures such as the wide area
networks, data centres, etc. are being used for exchanging the
information by different departments of the state government.
 A government society MAP_IT (Madhya Pradesh Agency for
Promotion of Information Technology), headed by the Chief Minister
& represented by the government & industry, has been established
to implement the IT policy & propel the growth of the IT industry in
Madhya Pradesh. The state government proposed allocation of US$
36.40 million for different activities under science & technology
during 2017-18.
 Contract for setting up a special IT processing centre was granted to
Fujitsu Optel Ltd., at Mandideep in Raisen, at an estimated cost of
US$ 8.48 million.
IT parks
Crystal IT Park (51,097 sq. m) Indore
Hardware and Software
Technology Park (200 acres)
Bhopal
Software Technology Park
(100,000 sq ft)
Indore
IT Park (50 acres) Gwalior
IT Park (90 acres) Jabalpur
Hardware & Software
Technology Park, Bhopal
Crystal IT Park,
Indore
Software
Technology Park,
Indore
IT Park, Gwalior
Jabalpur IT Park,
Jabalpur
IT projects in Madhya Pradesh
Source: Maps of India

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 2017-18 (for the period April 2017 to September 2017), value of all minerals produced in Madhya Pradesh was recorded to be US$ 1.17
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 2017-18 (for the period April 2017 to September 2017), value of fuel mineral produced in Madhya Pradesh was recorded to be US$ 1.01
billion.
 Major mineral-based industries in the state are cement, thermal power generation, ceramic-products, tiles and refractory.
 The Mineral Resources Department of Madhya Pradesh has planned to introduce online electronic transit pass (e-TP) services in Balaghat,
Sagar, Tikamgarh, Satna, Rajgarh, Betul, Indore, Ujjain, Neemuch, Gwalior, Bhind and Hoshangabad in December 2016.
Source: Indian Bureau of Mines

(2/3)
Mineral 2017-18 (till September 2017)
Coal 53,356
Bauxite 233,718
Copper ore 1,038,251
Copper conc. 33,139
Iron ore 1,016
Manganese ore 356,344
Phosphorite 55,766
Diamond (in carat) 18,388
Limestone 20,967
Mineral production in Madhya Pradesh (‘000 MT)
Source: Ministry of Mines, Government of India, Aranca Research

(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 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 Q3 FY18, the company
recorded a turnover of US$ 76.88 million.Hindustan Copper Ltd
 NMDC is a public sector unit involved in mining of a wide range of minerals such as iron, copper, limestone,
dolomite, gypsum, tin, graphite and diamond. The company is the single largest iron ore producer in the country.
NMDC is the only organised producer of diamonds in India and produces diamond from its Majhgawan mine at
Panna in Madhya Pradesh. The production capacity of the mine is around 84,000 carat per annum. The mine
employs around 199 persons. Total Income from operations of US$ 398.54 million was recorded by the company
during Q3 FY2018.
NMDC Ltd

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 customized 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

TRADE AND INVESTMENT FACILITATION
CORPORATION LIMITED … (2/2)
TRIFAC activities Description
APEX Level Investment Promotion
Empowered Committee
 For project investments over US$ 4.6 million, TRIFAC facilitates obtaining of customised economic
package through APEX Level Committee headed by 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 2008
 Acts as member secretary for APEX and State Level Committee, which ensures speedy approvals for
various clearances/consents/permissions.
Combined application form  Under the MP Investment Facilitation Act 2008, a single form for obtaining all necessary clearances.
Investment drive
 TRIFAC organises investor meets, conducts road shows and industry interactive sessions to stimulate
investments in the state.
Memorandum of Understanding
 TRIFAC acts as a nodal agency for executing the MoU process for investment plans related to the
industry sector.
Delhi-Mumbai Industrial Corridor  TRIFAC acts as a nodal agency for executing the project in the state.
Industrial Investment Promotion
Assistance 2004
 TRIFAC acts as a nodal agency for providing industrial investment assistance in the state.
Audyogik Kendra Vikas Nigam
Limited (AKVN)
 AKVN is the subsidiary company of MP TRIFAC.
Land Bank  Responsible for maintaining a land database meant for setting up industries in the state.
Source: MP Trade and Investment Facilitation Corporation Ltd, TRIFAC - Trade and Investment Facilitation Corporation Limited

KEY APPROVALS REQUIRED … (1/2)
List of approvals and clearances required Departments to be consulted
Prior to setting up the unit
Registration DIC for SSI/ SIA for large and medium industries
Allotment of land/shed DI/ SIDC/ Infrastructure Corporation/ SSIDC
Permission for land use
District authorities/ State DI/ Dept. of Town and Country Planning (in case
industry is located outside an industrial area)
No objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board
Approval for construction activity and building plan
Town and Country Planning/ Municipal and local authorities/ Chief Inspector of
Factories/ Pollution Control Board, Electricity Board
No objection certificate Fire Department
Provisional Trade Tax registrations Central and State Excise Departments, Sales Tax Department
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
Source: MP Trade & Investment Facilitation Corp. Ltd., Aranca Research SSIDC- Small Scale Industrial Development Corporation
Note: SIDC- State Industrial Development Corporation, SSI- Small Scale Industries, SIA- Secretariat of Industrial Assistance, DIC- District Industrial Center,

Madhya Pradesh State Report February 2018

Madhya Pradesh State Report February 2018

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Madhya Pradesh State Report February 2018