Madhya Pradesh …

A Strategic Destination for I.T. Investments

Unmatched opportunities, culturally rich lifestyle and blissful solitude…. are the hallmarks of Madhya Pradesh. The state has a mesmerizing mystique made up of nature’s bounty, a rich cultural heritage, a cosmopolitan life style, and immense possibilities for growth.

Madhya Pradesh, India's second largest state, lies across the very heart of the country, occupying an area of 3,08,144 sq. km. Surrounded by five states - Uttar Pradesh, Maharashtra, Gujarat, Chattisgarh and Rajasthan, it is made up of the Malwa plateau in the north-west covered with black cotton-soil and rolling plains interspersed with hills of the Vindhyanchal range which run east-west across the middle, river valleys and thick forests. Madhya Pradesh is one of the most fascinating tourist destinations of the country.

Unexplored avenues and untapped possibilities offer potential investors the opportunity to be partners in the future development of the state.

Advantage Location

Madhya Pradesh, because of its central location in India, has remained a crucible of historical currents from North, South, East and West. Its central location makes the state a strategic hub with many logistical advantages. Easy reach, convenient travel and good connectivity make Madhya Pradesh a choice destination.

Nature’s Bliss: The Climate

Madhya Pradesh is known for its tropical yet pleasant climate. Summerevenings are cool and the rainy season a visual spectacle. The monsoon season spreads from the month of June to September with average rainfall of 700 mm in the west to 1500 mm in the east. The maximum temperature during the summer ranges from 33°C to 44°C and minimum 30°C to 19°C and during the winter from 27°C to 10°C. November to February are considered the mostpleasant months.

Contribution of Agriculture

Madhya Pradesh is the largest producer of oil seeds & pulses in India. 60% of country's Soybean & 40% of Gram is grown here. Madhya Pradesh is the largest producer in India of spices such as Garlic & Coriander. Internationally exportable variety of wheat & potato are grown here. 11 out of 16 Agro climatic zones in India pass through Madhya Pradesh. Rare species of medicinal plants are grown in 10000 hectares.

Legal frame work for Contract framing is operational in M.P. & is benefiting thousands of farmers.

In spite of being the 2nd leading State in the areas of fruits & vegetables in India, the food-processing sector in Madhya Pradesh is relatively un-developed. Now it is being treated as a thrust sector in the New Industrial Policy and various concessions & incentives have been provided for this sector.

In the year 2003-2004 Government of India has sanctioned six "Agriculture Export Zones" (AEZ) for six agro products in Madhya Pradesh. This initiative would strengthen the infrastructure in Food Processing.

The M.P. villages are well connected by ITC e- Chaupal model and contract farming is being done by corporate sector. Notable among them is Pepsi, which is doing contract farming in 10000 ha of land in Ujjain division for potato farming (Chip variety).

Madhya Pradesh offers a host of post harvest facilities – cold storages, depots and warehouses to support its Agro based industries. The knowledge pool on Agriculture & Herbal sector is very high in M.P. It could be an ideal State for investments in Agro, Herbal & Bio tech sectors because of its biodiversity. It is an ideal location for modern biotech industries

Jewels and Minerals

Madhya Pradesh has the only running Diamond mine (at Panna) in the country. A state of art Gems & Jewellery park at is under construction. Madhya Pradesh is one of the largest producers of gems and precious stones. Huge reserves of these gems are still untapped and there is great potential for investors to explore this opportunity.

Rich Cultural heritage

The cultural heritage of Madhya Pradesh is extremely ancient and spreads from Stone Age to the time when the rule was of kings and Nawabs. Exquisitely carved temples, stupas, forts and palacestake the visitors into the romance of history.

India's immortal poet-dramatist Kalidasa and the great musician of the Mughal court, Tansen, hailed from this region. Customs and beliefs in each erahave added colour to the fairs and festivals. Shivratri in Khajuraho, Bhojpur, Pachmarhi and Ujjain, Ramnaumi in Chitrakoot and Orchha, Bhagoriya in Jhabua and the annual festival of classic dances at Khajuraho are major tourist attractions. The Malwa Festival in Indore, Mandu and Ujjain and the Pachmarhi Festival bring alive the rich folk and tribal culture of the state.

Tourism

Madhya Pradesh is proud to be the location of one of the biggest lakes and one of the biggest mosques at Bhopal. The State is endowed with unparalleled scenic beauty and exquisite art and architecture. India's famous national parks i.e. Kanha and Bandhavgarh lie in this state. Khajuraho, the World Heritage Site with its unbelievable erotic carvings and architecture is one of the most important tourist destinations in the country. Among the other attractions of the state are the fort of Gwalior, the historic city of Bhopal with its mosques and lakes, Mandu with its romance and the world famous Buddhist site of Sanchi. The grand palaces of Indore and Gwalior are also places to cherish.

Vibrant Life

The important cities of Madhya Pradesh which include Indore, Bhopal, Gwalior and Jabalpur have good shopping complexes, movie theatres, clubs and a cosmopolitan life style which is a result of the presence of industry, civil services and the armed forces. With the evolution of urban life styles led by the nation's metros tier two cities like Indore, Bhopal, Jabalpur and Gwalior are quickly catching up with metro life in terms of markets, food courts, malls and entertainments.

Strong Knowledge Base

To meet the growing requirements for skilled technical manpower the State has the following infrastructure:

For Technical Education and Training.

Course / Govt./
Grant in aid / Private / Total / Enrolment Capacity
BE/ B.Arch / 07 / 79 / 86 / 29,433
MBA / 04 / 59 / 63 / 4,900
MCA / 05 / 62 / 67 / 3,790
Hotel Management (Degree) / 00 / 02 / 02 / 120
Diploma( Engg.) / 44 / 00 / 44 / 9,789
Pharmacy (Deg/Diploma) / 03 / 90 / 93 / 5,409
Hotel Management (Diploma) / 00 / 01 / 01 / 60
ITI / 149 / 34 / 183 / 17,844
TOTAL / 213 / 329 / 542 / 71,345
For Arts & Commerce
Arts faculty / 128442
Commerce faculty / 73211
Science faculty / 57128
Home Science / 3077
Law / 8251
Sanskrit / 2287
Management / 3430
Pharmacy (Deg) / 3195
Pharmacy (Dip) / 1935
Total Statistic in Madhya Pradesh
1 / Graduate Level / 229845
2 / Post Graduate Level / 42451
3 / Total Student / 272296

Leading Institutions / Organizations:

  • Maulana Azad National Institute of Technology, Bhopal.
  • Indian Institute of Management, Indore
  • Indian Institute of Forest Management, Bhopal
  • Shri Atal Bihari Vajpayee -Indian Institute of Information Technology and Management, Gwalior.
  • Rajiv Gandhi Proudyogiki Vishwavidyalaya, Bhopal
  • Centre for Research and Industrial Staff Performance (CRISP), Bhopal
  • Samarat Ashok Technological Institute, Vidisha
  • Laxmi Narayan college of Technology, Bhopal
  • Institute of Architecture, Indore
  • Institute of Environmental Planning and Technology, Indore.
  • Indian Institute of Forest Management, Bhopal
  • NationalLawInstituteUniversity, Bhopal.
  • Regional Research Laboratory, Bhopal.
  • PDPM Indian Institute of Information Technology, Design and Manufacturing, Jabalpur.

Good English medium public schools

  • EmeraldHeightsSchool, Indore.
  • ImperialAcademy, Indore.
  • SiccaSchool, Indore.
  • SatyaSaiSchool, Indore.
  • IndorePublic School, Indore.
  • DalyCollege, Indore.
  • St. Joseph's Co-EdSchool, Bhopal.
  • St. Joseph’s Convent
  • DelhiPublic School, Indore, BhopalJabalpur
  • CampionSchool, Bhopal
  • Carmel ConventSchool, Bhopal
  • St. Xavier’s School, Bhopal
  • JawaharLalNehruSchool, Bhopal
  • ChristChurchGirlsSchool, Jabalpur
  • ChristChurchBoysSchool, Jabalpur
  • St. Allocious School, Jabalpur
  • St. JosephConventSchool, Jabalpur
  • GyanGangaHigh School, Jabalpur
  • Scindia Kanya Vidyalaya, Gwalior
  • ScindiaBoysSchool, Gwalior
  • MitshellSchool, Gwalior
  • NationalConventSchool,Gwalior

Connectivity

Air

Presence of major airlines in the state viz Indian airlines, Air- Deccan, Kingfisher and Jet airways link Delhi, Bombay, Bhopal, Jabalpur, Gwalior, Indore and Khajuraho.

Roads

The total length of roads in the state is about 73311 kms. The length of national highways is 4280 kms, State highway 8729 kms. Major district road have a length of 11572 Kms and rural roads measure about 48730 kms. In the past two and half years all the major roads in the state have been rehabilitated or taken up for rehabilitation. 2000 Kms of road projects are already being completed under the BOT scheme in which, for the first time, private sector participation has ensured that Government spends only 50% of the capital cost of renovating the roads. Another 2000 Kms. of road are planned on a BOT basis 1100 Kms. of roads are to be completed under an Asian Development Bank Road Project. Consequently all the major towns and District Head Quarters are today linked with roads having quality road surface and riding comfort.

Freedom from Traffic Hazards

Madhya Pradesh enjoys a great advantage of being free from traffic hazards. Whereas most metros today have dense automobile traffic which makes commuting extremely tiresome and risky, the towns and cities of Madhya Pradesh enjoy hassle free driving comfort to work place within short distances. In Bhopal and Indore maximum time taken by any employee to reach his /her work place is approx 15 to 20 min. The roads are free from traffic congestion as compared to traffic in metros.

Railway

The main rail route linking northern India with southern India passes through Madhya Pradesh. Main junctions in the state are Bhopal, Bina, Gwalior, Indore, Itarsi, Jabalpur, Katni, Ratlam and Ujjain. The divisional railways headquarters are at Bhopal, Ratlam and Jabalpur.

Power

Madhya Pradesh is rich in coal suitable for power generation and also has immense potential of hydro-energy. Total installed power generation capacity in year 2003 was 2900 M.W. Since last 3 years the power capacity has increased by 2398 M.W. The major contributors are:-

Indirasagar / 1000.0 / M.W.
Sardarsarovar / 826.5 / M.W.
Birsinghpur / 500.0 / M.W.

Apart from on-going projects on the river Narmada at Punasa and the Onkareshwar Project, several other projects are being flagged off. The Maheshwar Hydro Electric Project shall start its work soon. Madhya Pradesh Govt is setting up a 1000 Mega Watt Thermal Power Plant at Khandwa.The state would be power surplus by the year 2008-09.

State is providing uninterrupted power supply to the Industry since last three years. Also the State has a very attractive Captive Power Policy. It includes:-

  • Full Exemption from electricity duty for captive power generating units up to 10 KVA on the electricity produced in the State.
  • New captive power generating units are exempted from payment of electricity duty based on Fixed capital investment for a period as specified below:-

1 / Rs. 25 crore to 100 crore / 5 years
2 / Rs. 100 crore to 500 crore / 7 years
3 / Rs. 500 crore & above / 10 years
  • Resolution passed in the state assembly regarding exemption of Cess @ 10 paise per unit [Urja Vikas Upkar (Cess)] applicable on the electricity generated by captive power generating units.
  • State government approval is not required for setting up of captive power generating units. Layout plan is required to be approved by office of electrical Inspectorate only for security reasons.

Telecom & IT Connectivity

Madhya Pradesh is totally geared up to handle its telecom requirement. It has 24000 kms of optical fibre backbone reaching up to the block level and below across the whole state. Presence of public & private players like BSNL, Bharti, Tata, Reliance etc. ensure complete connectivity and service. The State is in the process of providing Broad Band Connection to the last mile through State Wide Area Network (SWAN) by June, 2008. This would open possibilities for creating new markets based on e-governance and e-business. The state plans to have in position over 9200 IT Kiosks spread across the state to provide all kinds of citizen centric services made possible by IT to the rural areas.

Man Power Cost Advantage

Cost to Company for the same executive is cheaper by 30-35% in Madhya Pradesh along with greater saving potential for the executive on account of cheaper land, cheaper housing and cheaper labour.

Source : Indo-US Business Sep-Oct. o5 Edition

Land Cost Advantage

In terms of cost advantage the most significant advantage is in terms of land cost. The following chart indicates the kind of difference that exists in the price of land in Madhya Pradesh and other IT/Industrial Centres of the country.

Source : Indo-US Business Sep-Oct. o5 Edition

Futuristic Policies in Place for Investors

New IT Policy 2006

The State has recently announced its IT Policy which has been designed to promote e-governance in the State and to attract IT Investments. To attract IT investment into the State, the Policy has provided incentives comparable to the best being offered in the country. In addition the State has decided to provide rebate on government land linked to the employment generated by the companies. The state is committed to welcome investors by facilitating them in a hassle free one step clearance environment, free from the red tapism.

The State is committed to implement the NeGP at the earliest. For that the State Wide Area Network would be in place by June, 2008 followed by over 9200 IT Kiosks in position spread across the state to provide all kinds of citizen centric services to the rural areas.The State intends to take e-governance, e-business & e-banking to the last mile.

To meet the requirements, the State is also committed to promoting IT Education in a big way by involving IT companies in school & college education. This is intended to upgrade the skills of prospective manpower.

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  • New Industrial Policy

The new policy envisages creating an industry-friendly atmosphere, maximizing employment opportunitiesand rationalizing rates of commercial taxes and bolstering private sector participation.

The main thrust of the policy is:-

  • Enacting an Industrial Facilitation Act and to change rules of business with a view to make single window system decisive and result oriented .Establishment of MADHYA PRADESH TRADE & INVESTMENT FACILITATION CORPORATION LTD. (TRIFAC) which is a Single Table clearance facility wherein the investor submits his project proposals for initial approvals. Under the Single Table System - Clearance pertaining to departments of Housing & Environment, Madhya Pradesh State Electricity Board, Food & Drug Administration, Energy, Commercial Taxes, Revenue, Labour, Industry & Urban Administration are issued in a time bound manner.
  • Developing infrastructure for enhancing identified industrial clusters.
  • Reviving industrial units by granting special packages.
  • A promotional assistance equivalent to 50-75% of the Commercial Tax & Central Sales Tax deposited in the first year shall be given in the second year
  • Special package for mega project.
  • Concession/Exemption of stamp duty.
  • Exemption from” Electricity Duty” for first 5 years on Captive power generation.
  • Partial reimbursement of expenditure for Quality Certification
  • Capital Investment Subsidy, Exemption from Entry Tax for 5 years.
  • Subsidy to Industry under thrust sector, Exemption from Mandi Tax for Agro Processing Industry.

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Existing IT scenario of the state

1.Presence of FirstSoftwareTechnologyPark in Indore.

2.CSC contributes biggest share to the total IT output of the state.

3.Crystal IT Park, at Indore ready for accommodating potential investors

4.Huge market available for ITES / BPO operations in the state.

5.Upcoming sites for Software Technology Parks - Bhopal and Gwalior on the anvil.

6.Investor friendly IT policy rolled out for attracting investors to the state

e-Governance initiatives in Madhya Pradesh commended by first survey of major Indian states

IDC India, the Indian arm of global market research major IDC (International Data Corporation), teamed up with India's leading IT magazine, Dataquest (a Cyber Media Group publication) to launch a study of the e-Governance initiatives of 15 major Indian states. The results of the study, published in Dataquest magazine (March 15, 2006 issue) ranked Madhya Pradesh as the fourth leading state in the countryin terms of overall perceived improvement in the delivery of government services through e-Governance initiatives. The top five states are: Kerala, Delhi, Gujarat, Madhya Pradesh and Goa, in that order.

This extensive study was conducted on several parameters affecting citizens' lives. The findings of the study revealed that Madhya Pradesh is one of the leading states in terms of perceived improvement in delivery of government services through e-Governance initiatives.

In fact, Madhya Pradesh emerged as one of the leading states in the country as far as perceived improvement in delivery of several government services to citizens is concerned, as shown in the table below.

COMPARISON OF SELECT STATES: PERCEIVED IMPROVEMENT IN DELIVERY OF GOVERNMENT SERVICES TO CITIZENS THROUGH E-GOVERNMENT INITIATIVES

Sr. No. / e-Governance Assisted Service Delivery Area / Highest Score / STATE SCORES
Gujarat / Madhya Pradesh / Kerala / Uttar Pradesh / Karnataka
Water Utility - service delivery & support / 91.4 / 85.0 / 91.2 / 82.2 / 80.0 / 83.4
Municipal Taxes - payment & information / 89.6 / 88.6 / 89.6 / 84.0 / 75.6 / 84.2
Applying for birth/death/ marriage certificates / 89.6 / 89.6 / 89.6 / 82.4 / 76.8 / 70.8
Power Utility - service delivery & support / 92.4 / 92.4 / 88.6 / 80.0 / 80.0 / 85.2
Filing of Income Tax Returns / 91.4 / 91.4 / 87.8 / 90.0 / 82.6 / 80.6

Source: IDC, 2006

The study further revealed that Madhya Pradesh is also perceived as one of the leading states in terms of delivery of government services to corporates, through e-Governance initiatives.

COMPARISON OF SELECT STATES: PERCEIVED IMPROVEMENT IN DELIVERY OF GOVERNMENT SERVICES TO CORPORATES THROUGH E-GOVERNMENT INITIATIVES

S. No. / e-Governance Assisted Service Delivery Area / Highest Score* / STATE SCORES
Andhra Pradesh / Maharashtra / Madhya Pradesh / Gujarat / Karnataka
Income Tax Department - filing of tax returns / 94.6 / 85.6 / 80.0 / 92.4 / 90.4 / 82.0
Registration of Land / 91.4 / 88.0 / 71.2 / 90.6 / 83.4 / 71.6
Executing sale/purchase of land/property / 93.6 / 93.6 / 72.8 / 90.4 / 80.0 / 70.0
Income Tax Department - Application for PAN number / 94.4 / 84.2 / 77.2 / 89.6 / 90.4 / 82.2
Sales Tax/Service Tax – filing of returns / 89.6 / 89.6 / 74.6 / 89.6 / 84.6 / 75.8

Source: IDC, 2006