State Profile of Madhya Pradesh

POPULATION (2001 census) 60348023

MALES 31443652

FEMALESs 28904371

SEX RATIO (females/1000 males) 920

DENSITY OF POPULATION (Persons/ Square

Km)

196

URBAN POPULATION % 26.67

LITERACY RATE (census 2001) in % 63.7

MALE LITERACY in % 76.1

MALE LITERATE in numbers 19672274

FEMALE LITERACY in % 50.3

FEMALE LITERATE in numbers 11920289

BIRTH RATE (PER 1000) (2002)P 30.3

DEATH RATE (PER 1000) 9.7

NSDP at current prices (2002-2003)* Rs Crores 71387 Rs Crores *(2002-

2003)

PER CAPITA NSDP (2002-03) at current prices

Rs

11438 Rs *(2002-2003)

USEFUL INFORMATION

Economic Activity:

Manufacturing- 26%

Services- 28%

Agriculture - 46%

Investor Profile

Govt.. 42.2%

Foreign 13.1%

Indian 44.7%

State priority areas: Electronics; Minerals, food and agriculture industries; telecom;

Auto.

Investment Strengths: Proactiveness in seeking investment; non-disruptive labour

environment; connectivity to large northern and western markets

Road length per 1000 km : 460

Cell phone/ 100 persons: 0.29

Railway track length /00 sq km: 1.3

Surfaced roads/ 00 sq km: 20.8

Gwalior, Jabalpur, Bhopal and Indore are the domestic airports. Panna, and Khandwa

are the two non operational airports in Madhya Pradesh.

MAJOR INDUSTRIES

OPTICAL FIBRES

AUTOMOBILES

SOYABEAN

PROCESSING

CEMENT

FERTILIZERS

PAPER AND PULP

TYRE AND TUBES GASES

ELECTRONIC GOODS

Madhya Pradesh: Introduction & Overview

Historical Background:-

Madhya Pradesh was formed on November 1, 1956 comprising the seventeen districts of –Mahakoshal, two districts of Bhopal, eight districts of Vindhya Pradesh, Sixteen districts of Madhya Bharat. At the time of its formation, the state had 43 districts. Subsequently, two large districts were bifurcated .Sixteen more districts were formed in the year 1998. The Chhattisgarh region, comprising of 16districts, was separated to form a new state as per the provisions of Madhya Pradesh Re-organization Act, 2000 and recognized State of Madhya Pradesh came into existence on 1st November 2000. Again Three new districts i.e. Burhanpur, Ashok Nagar and Anooppur were formed in the year 2003.

The total geographical area of the state is now 308 thousand sq. km. Madhya Pradesh isSituated in the very heart of India and it is surrounded by five states viz. Rajasthan, Maharashtra, Gujarat, Chhattisgarh and Uttar Pradesh.

During the past five years the incidence of poverty in the State (including Chhattisgarh) hasDeclined from 42.52 in 1993-94 to 37.43 in 1999-2000 as against 26.10 per cent for the country as a whole. The State was the third poorest among 15 non-Special Category States in the year 1999-2000, the first being Orissa with 47.15 per cent, followed by Bihar with 42.60 per cent. The incidence of poverty in rural areas is substantially lower than in urban areas. In 1999-2000 the percentage of population living below poverty line in rural areas was 37.06 as against only 38.44 for urban areas.

Historical record reveals the fact of it being ruled by a number of famous empires of India. The empires included the Mauryas Empire to the Mughals and later off course by the British. During the rule of the Mughals, famous musician Tansen of

Madhya Pradesh used to be the official singer of the Mughal Samrat Akbar's court. There are many interesting legends and folklore related to Tansen and Birbal in the court of Akbar.

Madhya Pradesh is also the homeland of Kalidas, the famous immortal Indian poet and dramatist. The innumerable monuments, carved temples, stupas, forts and

palaces on hilltops signify the aesthetic sense of the empires and kingdoms, of great warriors and builders, poets and musicians, saints and philosophers.

In the earlier times influence of religions like Hinduism, Buddhism, Jainism and Islam are still evident in the historical places here. Dynasties like that of Sungas, Andhras, Satvahans, Ksaptrapas, Nagas and last but not the least the Guptas ruled over this place. During and after the tenth century different regions of the state were ruled by different dynasties like Chandellas, who ruled in Khajuraho, Muslims in Gwalior and the Holkar in Indore etc.

After the British took over the state, the state had been declared as the central province. After India gained her independence, under the provision of the state reorganization act of 1956, Madhya Pradesh was given the status of a full-fledged state with effect from 1st November 1956.

Chattisgarh has been carved out as a new state in November 2000 to fulfill a demand that was long due.

Geography of Madhya Pradesh

Madhya Pradesh lies in the middle of the India, sharing its border with six neighboring states.

The northern border of the state has two neighbor states namely the state of Rajasthan and Uttar Pradesh. The western border of the state is shared by a part of Rajasthan and a part of Maharashtra with Gujarat in between. On the southern part of the state of Madhya Pradesh lie the states Maharashtra and Andhra Pradesh. The entire eastern border of the state is bounded by the states of Chattisgarh and Jharkhand.

The total geographical area the state of Madhya Pradesh covers is approximately 308,000 sq km divided among the 45 districts of the state. Forests cover a major

part of the state and the cultivated area accounts to almost half of the total landmass of the state. The state covers a wide area of the Indian plateau region.

A number of significant rivers flow through this land. Thus, with the mountain ranges, rivers along with the plains, Madhya Pradesh has a varied physical feature.

People and Lifestyle of Madhya Pradesh

Tribal Women - People 0f Madhya Pradesh

People & Lifestyle - Magnificent At Heart

Most people in the state of Madhya Pradesh lead their lives on a slow and easy pace. Not many parts of the state can be exactly called developed and most of the areas of the state are inhabited by tribal People. There are in all 45 districts and 23 of them are primarily tribal dominated. But rest of the district are developed enough to compensate and help the state keep up with time. Apart from the tribal community, people of Hindu religion form the remaining portion of the population. You will also find small number of Parsis, Jainas and Muslims here. The geographical aspect of the region has been a prominent decider on the distribution of communities in the state. The tribes that have been living in the state from olden times have been living in the shelter of Vindhyas. Thus making them impervious to

any outside intrusions. This helped them maintain their culture and customs safe and continue it till the present day.

Tribes In Madhya Pradesh

The most prominent tribes in Madhya Pradesh are Gonds, Bhils, Bhilals, Korkens and Kols. They indulge in various activities to earn their livelihood. Earlier they

were semi nomadic people but most of them have now settled down and have choosen their occupation. The Khaiwas and the Panikas are into agriculture whereas occupation of Mangetri Pradhans is singing and dancing. Some tribes have slowly moved to the outskirts of the developed areas to find more rewarding profession. They generally work in shops, as street hawkers or as factory workers.

Customs and Traditions

There customs and traditions are also quite different. The most prominent being the custom of Ghotul. This ritual is for unmarried boys and girls of Muria tribe. The Ghotul is a kind of a hut or a group of huts where these young kids gather after sunsets. Here they are taught about the moral values and discipline that one should have. They also indulge in many fun activities that also turn out to be educational. This has become an important tool in shaping the lives of people of Muria tribe. Many tribes follow the Hindu rituals for performing marriage, death and birth ceremonies but there are many who still follow traditional methods. For marriage, tribes like Bhils and Bhilalas have a very peculiar method. People choose their spouse in a festival fair called Bhagoriya. If both girl and boy are willing for the marriage, they elope and are afterwards are accepted as husband and wife.

Traditional Costume of People of M.P

The dressing style of people in the state differ drastically in various regions. Major population in Madhya Pardesh wears dhoti. You will find people wearing a head gear throughout the state. In eastern part of the state, a cloth called Safa is used whereas a turban is used in the western parts of the state. A jacket called Bandi is also worn by the people of this state. Mostly all their clothes are vibrantly colored and give a pleasant feel to their outlook.

Arts & Culture of Madhya Pradesh

Madhya Pradesh is home to majority of India's tribal population who, in most cases, live apart from mainstream India. The Gonds tribe is found in the jungles south of Jabalpur. On the west lives the Bhils, while the Oraons inhabit the eastern part of the state. The Bhils get their name from a Dravidian word for bow, which is the hallmark of the tribe.

Despite the encroaching influence of 20th century urban life, the tribals have largely managed to retain their own way of life, relatively untouched by modernization. However, besides the original tribes of the region, a number of other people belonged to different ethnicity has settled in the major centers of the state for varied reason.

The art and craft of the state is unique from region to region. A long heritage of tradition continues to add a highly distinctive, individualistic touch to the crafts of Madhya Pradesh.

The state is famous for its hand printing, generally with vegetable dyes. The major hand printing centers of the state includes, Jawad, Bhairongarh, Mandsaur, Umedpura, Burhanpur, Bhopal Indore, Gotampura, Sohawal, Tarapur and many more. Garments, bedspreads, tablecloths and curtain material are produced at Umedpura and Tarapur in Nandana prints that were once in vogue amongst the villagers of the legendary Nimar plain. From Bhairongarh come printed quilt covers in attractive colors and designs, lungies, odhanis, jajams (floor coverings), bedspreads and tablecloths. Tie and dye chunris are the specialty of Tarapur and Mandsaur. Textile weaving in Madhya Pradesh is as refined as the hand printing craft. Soft, subtle shades in delicate weaves come off the looms in Chanderi, near Gwalior.

The famous Chanderi sarees some of them with gold checks and rich gold border along with two gold bands on the pallav, give each saree a special touch. The craftsmanship of the famous Maheshwari sarees has a wide variety of checks. Madhya Pradesh is also famous at producing tussar silk handloom fabrics. Skilled craftsmanship of Madhya Pradesh also displayed in a variety of zari embroidered (gold and silver threads) articles.

There are zari wall hangings, handbags, sarees and splendid brocade borders. Carpet weaving center of Gwalior, in Madhya Pradesh is regarded as Mecca of crafts.

Madhya Pradesh is not only the geographical center stage of India it also occupies a similar position in India's traditional heritage of music. Genius like Tansen who perfected the dhrupad style of singing was born here. Moreover, the Gwalior Gharana of Madhya Pradesh is a famous name in the world of Indian classical music today.

Natural Resources:

Land and its Use :

The reorganized state has a geographical area of 307.55 lakh hectares, out of which 149.62lakh hectares is the net area sown in 2001-02, and 14.99 lakh hectares are under permanent pastures, grazing lands and under miscellaneous tree crops. Another 12.41 lakh hectares are current and old fallow lands and 12.18 lakh hectares constitute cultivable waste land. The area under forests is 85.80lakh hectares.

Forest :

Madhya Pradesh has immense forest resources covering an area of 95.2 thousand square kilometers which is approximately 31 percent of the total geographical area.

Water Resources :

The ten major rivers of the state, namely, Mahi, Narmada, Tapti, Chambal, Betwa, Sone, Wainganga,Ken, Sinath and Pench originate in Madhya Pradesh and flow to the five bordering states. These rivers of the state offer an availability of 56.9 MAF of water, about 70 percent of which could be harnessed for irrigation purposes. Besides, about 22.3 MAF ground water is also available, of which 50 percent could be utilised for irrigation purposes. In the year 2001-02 the net irrigated area in the State was 44.9 lakh hectares which was 30.7 percent of the net area sown.

Agriculture

Though the contribution of the primary sector, which includes agriculture, to the total Net State.Domestic Product is coming down, agriculture is still the mainstay of the State's economy, as about 77 % of the population is still dependent upon agriculture. Agriculture in the state is still traditional. Madhya Pradesh has a number of advantages in setting up industries. It has abundant natural resources, location

advantage, peaceful industrial climate, better organizational delivery systems, availability of agricultural inputs and raw materials, and a number of State Government Undertakings for guidance and help. The power position of the state is in deficit at present.

POPULATION AND SEX RATIO IN MADHYA PRADESH

Madhya Pradesh is the largest state of the Republic of India in terms of area. In terms of population, it was the sixth most populous state at the 1991 population census with a population of 66.18 million. The average annual rate of growth of population in the state, during the decade 1981- 91, was 2.38 per cent per year. This rate is second highest in the country. Projections made by the Registrar General of India indicate that the population of the state will to increase to 155 million by the year 2016. About 5.88 percent of the country’s total population reside in Madhya Pradesh. According to Census of India 2001 the population of Madhya Pradesh has grown by 24.34 %. According to 1991 Census the total population of State was 48566242 and as per 2001 census it is now 60386118. The sex breakup shows that in total population 52.1% are male and rest 47.9 are female. The sex ratio comes out to be 920 female per 1000 male, which is slightly lower than all India average of 933. The total population is spread in 55.1 thousand inhabited villages and 394 towns out of total population

Economy & Industry

Overview

Madhya Pradesh’s economy largely depends on agriculture, industries and minerals. About 70% of the total work force of the state depends directly or indirectly on agriculture. Mines and industries play important roles in economic development of the state. There are many flourishing textile mills in the state and artificial silk manufacturing plants located at Ujjain, Nagda, Indore and Gwalior. Public sector industries including the Bhilai Steel plant, the Heavy Electrical and the Bailadilla are the major achievements. The Nepa Mills produces newsprint for the country. Diesel engines are manufactured at Indore and attractive pottery and carpets are produced at Gwalior.

A sizeable population in the villages makes traditional crafts such as

chanderi sarees, leather and clay toys. Secondary industries such as dyeing, calico printing and bleaching have also tended to concentrate in areas producing handloom cloth, silk and wool products. The state’s wood work and lacquer-ware are also very famous.

Important minerals found in M.P. are coal and iron. High quality iron-ore is found in Bastar, Jabalpur and Gwalior. The Panna region is famous for its diamond belt and is well known for the production of diamonds. Bauxite and marble are also found in several districts of Madhya Pradesh.

Agriculture: Madhya Pradesh is one of the leading producers of pulses like urad, mung and arhar. About one-fifth of the country’s total production of pulses comes from this state. Other min crops produced in Madhya Pradesh are wheat, soyabean and mustard.

The State Economy

Between 1994 and 2003, the compounded annual growth rate of bifurcated Madhya Pradesh’s real NSDP was 2.6 per cent, increasing from US$ 7.5 billion to US$ 9.8 billion.

During 1993-94 to 2002-03 Madhya Pradesh’s economy grew at average annual growth rate of 3.7 per cent. In 2002-03, Madhya Pradesh’s per capita income stood at US$ 254.

During the past decade (1993-2003), the share of agriculture in Madhya Pradesh’s economy reduced from 46 per cent to 24 per cent. In the same period, the share of industry and services increased by 7 per cent and 5 per cent respectively, indicating a positive trend in the state’s economic development.

41%

35%

24%

sector contribution of GDP

serviceagricultureindustry

Source: Review of Madhya Pradesh Economy, CMIE, August 20

Industrial Promotion Policy

For carrying out rapid industrial development in the state, the government of Madhya Pradesh has formulated an industrial promotion policy 2004 which is liberal enough for investment. The objectives of the new industrial promotion policy are to create industry-friendly administration, to maximize employment opportunities, to tackle industrial sickness, rationalize rates of commercial taxes and enlist participation of private sector in the efforts of industrialization. For more information on industrial policy.

To make Madhya Pradesh an attractive destination for industrial investment, the state government has recently adopted the Industrial Promotion Policy 2004.The main thrust of the policy is:

Effective implementation of single window system through establishment of a Madhya Pradesh Trade and Investment Facilitation

Corporation

Promotion of different industrial clusters in the state, in view of availability of raw material, skilled labour and market

Enhancement of infrastructure in the identified industrial clusters

Revival of sick industrial units by granting special packages

Setting up of an Industrial Infrastructure Development Fund

Major industrial sectors

Beverages & Soft Drink Based Industries Food Processing Based industries Forest Based Industries Electrical Engineering Based Industries Electronic Engineering Based Industries Mechanical Engineering Based Industries Drugs& Pharmaceuticals Based Industries Chemical Based Industries Petrochemical Based Industries Agro Based Industries Basic Metal Based Industries Non Metalic Minerals Based Industries Textile Based Industries Leather Based Industries

Rubber & Plastic based Industries

Business & Economy Of Madhya Pradesh

The economy of Madhya Pradesh is dominated by agriculture, on which 80 percent of the state's population depends for their livelihood. The principal crops of the state are rice, wheat, rapeseed, mustard and soyabean. It leads the country in the production of pulses and accounts for one-fifth of the total production of pulses in the country. 75 percent of the national output of soyabeens are produced by Madhya Pradesh. Besides that the black soil of the Malwa region facilitates cotton cultivation.

The abundance of forests in the state also gives an impetus to the business and economy of Madhya Pradesh. The primary forest produce of Madhya Pradesh include teak, sal, high quality timber wood and tendu leaves, all of which have significant economic ramifications for the rural economy. The important minerals of the state are coal, iron ore, limestone manganese and bauxite. The Panna region of Madhya Pradesh is renowned for the production of diamonds.

The state has a number of textile mills and artificial silk manufacturing plants in Ujjain, Indore and Gwalior, and Bhilai Steel Plant is perhaps the most important industrial endeavour of this state. Furthermore, Indore is famous for the manufacturing of diesel engines, while Gwalior is the address of exquisite pottery and carpets. The major industrial sectors of Madhya Pradesh include beverages and soft-drink based industries, food processing based industries, forest industries, drugs and pharmaceuticals industries, agro-based industries, basic metal industries, chemical based industries and electrical engineering based industries.

Traditional village crafts also play an important role in the business and economy of Madhya Pradesh. Madhya Pradesh has deservedly attracted fame for its traditional village crafts, which are amply reflected in Chanderi sarees, leather and clay toys. The wood work and lacquer-ware of Madhya Pradesh are also nationally renowned.

However, though agriculture accounts for maximum employment in the state, it contributes only 25 percent to the state's GDP. Services sector accounts for 41 percent of the state's GDP, which shows that the business and economy of Madhya Pradesh is gearing towards the modern trends, despite having its roots firmly entrenched, literally in the soil.

Business Opportunities

 

Key IndustriesThe economy of Madhya Pradesh is largely natural resource driven, leveraging the state’s advantage in agriculture and mineral resources. The key industries and sectors where Madhya Pradesh has competitive strength include cement, textiles, mining and food-processing.

Cement

Madhya pradesh has 3,625.98 million tonnes of limestone reserves. The districts of Balaghat, Damoh, Dhar, Hoshangabad, Jhabua, Katni, Khargone, Mandsaur, Morena, Narsinghpur, Panna, Rewa, Sagar, Satna and Sidhi are rich with limestone reserves. The state has seven major cement plants, with an annual installed capacity of 15.97 million tonnes. The availability of quality raw material, cheap labour and good industrial infrastructure has made Madhya Pradesh, the perfect choice for cement

producers in the country. The sector has a potential of attracting an additional USD 2.5 billion of investment.

Cement production in Madhya Pradesh reached 15.1 million metric ton during 2003-04, accounting for 13 per cent of the national Production. There are seven major cement plants in the state.

Prominent cement companies present in the state include ACC, Grasim Industries, Jaiprakash Associates,Century Textiles and Mysore Cements.

Auto and Auto Components

About 60 per cent of the auto industry in MP is dominated by auto component players. The size of the auto component industry in Madhya Pradesh is around USD 306 million. The Union Government of India has sanctioned an auto cluster in the Pithampur industrial area. The Government of India will grant an amount of USD 11 million. Madhya Pradesh has developed an industrial cluster at Pithampur to provide readily available infrastructure for companies to set up manufacturing facilities. This estate spreads over an area of 5,000 hectares.

Hindustan Motors plan to invest around US$ 16 million over a period of four years to manufacture and supply automobile engines at ransmission units to Ford India.

Prominent automobile and auto component players present in Madhya Pradesh are Kinetic Motors, Eicher Motors, Bajaj Tempo and Hindustan Motors. Some investment in the pipeline in this sector are Baja Tempo’s plans to invest US$ 80 million.

Textiles

Madhya Pradesh has got the best business opportunity in the field of textile manufacturing. There are a large number of cotton textile mills located in Indore, Ujjain and Burhapur. Some of the key industry players in the state are Bhaskar , Bhilwaras, Indo-Rama, Maikal Oswals, Parasrampuria and S Kumar.

Madhya Pradesh produces 157,000 ton of spun yarn representing 6 per cent of India’s total production and 38.6 million sq mt of fabric(mill made) accounting for 4 per cent of all India production.

The state’s key competitive advantage in the textile industry is the availability of raw material (cotton) and a skilled workforce. In 2002, the state produced 390,000 bales of cotton, representing 4 per cent of India’s cotton production .The production of cloth stood at 52 million meters in 2002-03.

The phasing out of export quota is expected to provide a fillip to India’s textile industry. With the global trade in textile and clothing expected to grow from US$ 356 billion at present to US$ 600 billion by 2010, Madhya Pradesh has an opportunity to leverage its existing strengths and capture a larger share of textile market.Mahavir Spinning Mills plans to invest US$ 160 million in an integrated textile unit near Bhopal. The unit is to be developed in two phases in a span of five years. The unit will produce 50 million metric ton of processed fabric.

Textile Infrastructure in Madhya Pradesh

Composite mills 20

Exclusive weaving mills 08

Export oriented weaving mills 12

Handlooms 47000

Looms 6500

Powerlooms 43290

Rotors 17524

Spindles 14348

Spinning units 40

Mining

Madhya Pradesh is endowed with significant mineral resources. With 604,000 carats of proven diamond reserves it accounts for 99 per cent of India’s total reserves. It is the sole producer of diamonds in the country. It also leads the country in the production of copper ore, slate, pyrophillite, diaspore, and is second in production of rock phosphate, clay and laterite. The state has the country’s largest open cast copper mine at Balaghat and the thickest coal seam of Asia at Singrauli coalfield in Sidhi district.

Madhya Pradesh is endowed with significant mineral resources. With 604,000 carats of proven diamond reserves it accounts for 99 per cent of India’s totalreserves. It is the sole producer of diamonds in the country.

The state has the country’s largest open cast copper mine at Balaghat and the thickest coal seam of Asia at Singrauli coalfield in Sidhi district. The mining and quarrying sector contributed to 4.5 per cent of the state’s GSDP (at current sprices) in 2008-09. Madhya Pradesh - Production of key minerals, 2008-09

Unit Production % share- All India

Fuel Minerals

Coal ‘ 000 ton 45414 14

Metallic Minerals

Copper Ore ‘000 ton 2101 81Manganese Ore ton 329265 21

Non-Metallic Minerals

Barium Carbonate ton 142285 23Diamonds carats 62071 100Diaspore 7847 59Fire Clay ton 58105 12Limestone ‘ 000 ton 21512 16

Other clays ton 164617 31Pyrophylite ton 94351 63

(Source: Review of Madhya Pradesh Economy, CMIE, August 2008)

Edible oils

Madhya Pradesh is among the leading producers of edible oils in India and the largest producer of oilseeds among the states. In 2002-03, the state produced 3 million tonnes of oilseeds, representing over 20 per cent of India’s production. The state government has taken steps to facilitate further development of the food processing industry in the state. These include setting up Food Parks with private investment. At present, six Food Parks are under implementation in various parts of the state. Prominent investors in Madhya Pradesh’s edible oil industry are Ruchi Soya, MP Glychem and Vippi Industries. Ruchi Soya is expanding the capacity of its edible oil refinery at Indore from 600 tonnes per day to 1,000 tonnes per day. Prosoya Foods, a subsidiary of ProSoya Inc. Canada has set up a soya milk extraction plant in Madhya Pradesh.

IT and ITS Infrastructure

Four Software Technology Parks (STP units) to be set up in Bhopal., Indore and Gwalior. There are 38 IT engineering colleges in the state providing education to

future IT professionals. Large IT players, such as HCL and Genpact have shown interest in setting up the facilities in the state.

IT Parks Location

Crystal IT Park (5,50,000 Sq. ft.) Indore

Hardware and software technology Park (200 acres) Bhopal

Software Technology Park (1,00,000 Sq. ft.) Indore

IT Park (50 acres) Gwalior

Investments

Investment climate in Madhya Pradesh has remarkably grown to offer the best that an investor can think of. The state has an abundance of natural resources, such as water, minerals and ores, power and electricity and labour force. The geographical and climatic conditions are also much encouraging for investment in Madhya Pradesh. A lot of investment opportunities exist in agro-based industry sector. The state government is much considerate about a favorable investment policies and allows heavy incentives.

Within manufacturing, key sectors include chemicals, machinery, transport equipment, non-metallic mineral products, metals and rubber. Among services, transport and community services including hospitals and tourism have the dominant share of investment. The key sectors attracting heavy foreign direct investment are fuels, metallurgical industries, textiles, among others.

23%

15%

38%

19%

5%

distribution of investment

irrigationmanufacturingelectricityservicesmining

(Source project today database 2008)

Potential Hubs for Investment

As a result of the state’s aggressive incentive policies, a number of sectors are emerging with substantial potential for private investment and business. The most prominent among them are automobiles and auto ancillary products and pharmaceutical sectors.

Automobiles & auto components

Madhya Pradesh’s location at the centre of India has led to its emergence as an important destination for automobile and auto component industry. The industrial belt around Indore has production facilities for a number of automobile

manufacturers. A network of vendors supplying auto components to these plants is being established. While Madhya Pradesh’s current share in India’s total automobile sector output is relatively small, it is expected to witness a significant increase. The projected growth rate for Indian automobile market is over 10 per cent per annum; this presents significant opportunity to the state. Prominent automobile and auto component players present in Madhya Pradesh are Kinetic Motors, Eicher Motors, Bajaj Tempo and Hindustan Motors. Some investment in the pipeline in this sector are Baja Tempo’s plans to invest US$ 80 million to manufacture heavy and light commercial trucks in technical collaboration with Maschinenfabrik Augsburg-Nurnberg (MAN) of Germany at Pithampur; Kinetic Motors new production line for manufacturing the Italjet range of scooters at Pithampur and Hindustan Motors plan to invest around US$ 16 million over a period of four years to manufacture and supply automobile engines and transmission units to Ford India.

Pharmaceuticals

By leveraging the existing manufacturing base, along with a low cost resource pool Madhya Pradesh has a potential to further develop the pharmaceutical industry in the state. Ranbaxy, India’s leading pharmaceuticals company, has a bulk drug and formulation plant at Dewas in Madhya Pradesh. IPCA Laboratories plans to invest US$ 22 million to expand its formulations capacity at Ratlam and invest US$ 14 million to set up a new export oriented formulations unit in Indore. The plant will come up in the SEZ and will be built according to USFDA specifications. Nicolas Piramal is investing US$ 7 million to invest in its opthalmology products facility at Pithampur. Biofill Pharma plans to invest US$ 25 million in Pithampur and Lupin Laboratories is expanding its manufacturing plant at Mandideep with an investment of US$ 4.5 million. Potential Hubs for Investment.

Madhya Pradesh Sugar Industry

Madhya Pradesh Sugar Industry is known to be one of the largest contributors to India's sugar industry. The sugar industry in Madhya Pradesh is comprised of a set of sugar mills located in various parts of the city. A large part of revenue in the Indian economy is earned from its sugar industry.

The areas of Madhya Pradesh where sugar factories have been set up include Shivpur, Narayanpura, Kareli, Babai, Banapura, Timami, Betul, Sanawad, Bhorawah, Navalnagar, and Nepanagar. Naturally, these are the areas in Madhya Pradesh where sugar production is highest. Some of the sugar factories in Madhya Pradesh that have been doing really well are as follows:

Indo Euro Industries Ltd (Betul)

The Bhopal Sugar Industries Ltd. (Babai, Dist. Hoshangabad)

Nepa Limited (Nepanagar, Burhanpur, Khandwa)

Raigarh S.S.K. Ltd (Sarannagar, Dist. Raigarh)

J. K. Arora, Som Agro Products Ltd (Timarni-Harda, Dist. Hoshangabad)

M.P. State Agro Industries Dev. Corpn. Ltd (Narainpur, Teh.- Raghogarh, Dist.- Guna)

Chattisgarh S.S.K. Ltd (Kurud, Dist. Raipur)

Bhaskar Industries Ltd Shivpur-Kala, Dist. Morena)

Shree Vindhya Papar Mills Ltd (Sanawad, Teh.Barwaha, Dist. Khargone)

General Foods Ltd (Banapura, Harda, Dist. Hosangabad)

Naveen Jindal (Sarang Garh, Dist. Raigarh)

Krishak S.S.K. Ltd (Narayanpura, Raghogarh, Guna)

Jawaharlal Nehru Sahakari Soot Mill Ltd (Bhorahwa, Kasarawad, Dist. Khargone)

M/s. Orient Cartons (P) Ltd (Teh. Kareli, Dist. Narsingpur)

Navalsingh S.S.K. Maryadit (Navalnagar, Burhanpur, Khandwa East Nimai)

The Sugar Industry is the second largest industry in agricultural sector after the textile industry. There are more than 45 million sugarcane producers all over India and a large part of it goes to the Madhya Pradesh sugar industry. The production of sugarcanes in Madhya Pradesh for 2002-03 was estimated at 0.85 lakh tons but the production reached 0.94 lakh tons. In 2004-05, the production rate was 0.85 lakh tons once again. There are 3 big sugar mills in Madhya Pradesh which are located in the state of Indore. They are:

Neori Khandsari Sugar Mill

Girdharilal Sugar And Allied Industries

Shiv Khandsari Sugar Mill The Sugar Industry in Madhya Pradesh is one of the big mill in the state.

Mineral Based Industries In Madhya Pradesh

S.No. Industry No. of Units Location

1 Cement 9Rewa, Satna, Damoh, Katni, Sidhi &

Neemuch

2 Thermal Power 10 Shahdol , Umaria, Sidhi, Satna, Betul,

Damoh, Katni, Rewa, Ujjain

3 Coal Washeries 3

 

Narsinghpur, Anuppur, Chhindwara

4 Asbestos Cement Sheet

1 Katni

5 Ceramics 2 Ratlam, & Jabalpur

6 Hydrated Lime 25 Katni & Satna

7 Slate Pencil 155 Mandsour

8 Potteries 2 Ujjain

9 Refractories 3 Katni, Ratlam & Jabalpur

10 Roofing (Manglore)Tiles

8 Hoshangabad & Balaghat

11 Marble cutting& polishing

4 Katni

12 Granite cutting& polishing

5 Chhatarpur, Tikamgarh

13 Flagstone cutting& polishing

150 Shivpuri, Gwalior, Panna &Vidisha

Energy Resources Of Madhya Pradesh

Energy resources in Madhya Pradesh have two major types, first conventional resources and second non-conventional resources. Conventional energy resources in Madhya Pradesh include coal, petroleum, natural gas, atomic mineral, and hydropower. Except hydropower, all the other conventional resources are non-renewable. In Madhya Pradesh, coal is one of the main sources of energy. Non-conventional energy source includes solar energy, wind energy, biogas, biomass energy, tidal energy, geo-thermal energy, etc. All these are renewable energy resources. Energy production in Madhya Pradesh has started from the year 1905. The main energy sources in the state are thermal power, hydropower, wind and solar energy. Thermal power is the main source of energy in the state. The main thermal power plants are located in the main coal producing areas. The main thermal power plants of Madhya Pradesh are Amarkantak Thermal Power Plant, Satpura Thermal Power Plant, Chandani Thermal Power Centre, Jabalpur Thermal Power Plant, Sanjay Gandhi Thermal Power Plant and Pench Thermal Power plant. Satpura Thermal Power Plant is located in Pather kheda coal area near Itarsi in Betul district, which is in the north slope of Satpura ranges. The construction in the plant was started in 1962 and completed in 1967. With the establishment of the plant the production was started in the same year. It is joint venture of Rajasthan and Madhya Pradesh government. Hydropower is one of the most important renewable energy resources used in

Madhya Pradesh. Along with declining natural resources due to excessive utilisation the importance of hydropower is remarkable. In Madhya Pradesh, there

are ideal situations for constructing dam projects, particularly in the western part where many perennial rivers originate and flow. The hydropower capacity of the state is 665 MW presently. Some of the main hydropower projects are Gandhi Sagar Hydropower Centre, Rana Pratap Sagar Hydropower Centre, Kota or Jawahar Sagar Hydropower Centre, Bergee Project and Ban Sagar Hydropower Centre. The degenerating trends of traditional energy resources due to excessive utilisation and limited availability pose severe threat for the future development of the area or region. The non-traditional resources are eco-friendly resources and they have much more capacity then to the traditional one. The non-traditional energy resources are solar energy, wind energy, biogas, biomass, etc. Madhya Pradesh also has the ideal conditions for the development solar energy generation. Wind energy is another popular.The installed electricity generation capacity of Madhya Pradesh is 3,008 MW. 95.66 per cent of Madhya Pradesh’s electricity generation capacity is based on thermal energy with the remaining from hydel generation.On a per capita basis, electricity consumption in Madhya Pradesh stands at 352 kWh per annum, close to the national average of 355 kWh per annum. Various electricity projects under implementation in the state aggregate to 790 MW.

Project Installed Capacity (MW)Hydel Power Projects (2005)

Ban Sagar IV 20Madhikheda 60Thermal Power Projects (2008)Sanjay Gandhi, Birsinghpur – Unit V 500Amarkantak extension 210 Total 790 Source: Madhya Pradesh State Electricity

Board

SEZ Indore

The state government has developed a Greenfield Special Economic Zone at Indore. It has also successfully leveraged private investment in transport. The state government has been taking steps to strengthen and reinforce a conducive investment climate for potential investors through progressive policies, simplification of procedures and investment incentives.

Special Economic Zones: Key advantages Tax incentives Faster approvals Single window zone administration Superior infrastructure

  

Public sector undertakings in Madhya Pradesh :

Public sector organizations like GAIL, NFL, CIL, Nepa Mills, Currency Printing Press, BHEL, HCL, MOIL and a few Ordnance Factories are located in M.P

Major Industrial Groups in Madhya Pradesh

In Madhya Pradesh there is a significant presence of Blue chip companies of India and a few well known multinational companies. They are :

•  Tata •  N.B.Group • A C C•  Birla •  Cocacola • J.K.Group•  Bhilwara •  Cadbury • S.M.Dychem•  Godrej •  Kinetic •  S Kumars Group•  Procter &

Gambel•  Eicher • Ranbaxy

•  Hindustan Lever •  L & T •  Crompton Greaves (Thapar Group)

•  Lupin • Optel    

Few Large & Medium Industries Under Implementation (Rs. in crores) :

• HP Bottling Plant Maneri 19.32

• Maral Overseas Nimrani 30.00

• Biofill Pharma Pithampur  110.00

• Caparo Engineering Pithampur  30.00

• Escorts Malanpur 40.00

• Pratibha Syntex Pithampur 85.00

• HEG Ltd. Mandideep 500.00

• Eicher Group Pithampur 110.00

• Coca Cola Pilukhedi 30.00

• Lupin Mandideep 20.00

• Enbee Pilukhedi  100.00

• LG Hotline Malanpur 500.00

• JK Industry Banmore 100.00

• MOIL Balaghat 20.00

• Hindustan Copper Balaghat 80.00

• STI Power Chainpura 1175.00

• Bina Thermal Bina  2440.00

• BORL Bina 5700.00  

A picture of Hindustan Motor Plant

A Profile Of Key Players Of Madhya Pradesh

ACC Ltd

ACC is one of the largest cement manufacturing companies in India, with a cement production capacity of 16 million tonnes per annum. In 2004-05, ACC revenues stood at US$ 1035 million. ACC is a pioneer in cement and RMC, a leader in refactories and one of the pioneers in the area of advanced materials.The company has a countrywide distribution network and manufactures all types of cement. In Madhya Pradesh, ACC has a 1.7 MTPA cement plant at Kymore.The company plans to invest US$ 3.3 million to expand its manufacturing capacity of roofing products at Kymore. This will increase its production from 68,000 tonnes of asbestos roofing to 78,000 tonnes.

Bajaj Tempo Ltd

Bajaj Tempo is a US$ 190 million manufacturer of utility and light commercial vehicles, agricultural tractors and diesel engines. It has an automobile manufacturing plant at Pithampur near Indore. Bajaj Tempo plans to invest US$ 80 million to manufacture heavy and light commercial trucks in technicalcollaboration with Maschinen fabrik Augsburg- Nurnberg (MAN) of Germany at its existing site at Pithampur near Indore.

Birla Corporation Ltd

Birla Corporation Ltd is the flagship company of the MP Birla Group.The company’s main areas of business are jute, cement, synthetic yarn, calciumcarbide, industrial gases, PVC coated fabrics, PVC floor coverings, auto trims, healthcare and education. Birla Corporation has joint ventures and collaborations with world leaders like DLW AG of Germany, Rhone Poulenc of France, Sweden-based Ericsson Cables & AB and ABB, GE, Toshiba and AEI Cables. In 2003-04, the company’s revenues was US$ 276 million and profits over US$ 9 million.

Cadbury India Ltd.

Cadbury India is a subsidiary of Cadbury Schweppes, the world’s largest confectionery and third largest soft drinks company. Cadbury India had sales of over US$ 150 million in 2003.The company employs nearly 2000 people across India. Cadbury India has one of its main production plants at Malanpur, near Gwalior.

Century Textiles and Industries Ltd

Century Textiles and Industries Ltd is the flagship company of the B K Birla Group. Century is involved in diversified businesses including cotton textiles andyarn, viscose filament yarn and rayon, tyre, industrial yarn, cement, paper and pulp. In 2004-05, it registered sales were over US$ 500 million. Century haspresence in Madhya Pradesh through a cement plant at Satna. The company is expanding the production capacity of its cement plant at Satna by 0.8 milliontonne per annum. It also has a 100 per cent export oriented cotton yarn and denim production plant near Indore. The unit has an ISO-9002 certification.

Eicher Motors Ltd

Eicher Motors, part of the US$ 355 million Eicher Group, is a significant player in the Indian automobile industry. Eicher Motors manufactures and marketscommercial vehicles with Gross Vehicle Weight (GVW) ranging from 5 to 25 tonnes. It is one of the leading manufacturers of commercial vehicles in India. The company has a manufacturing facility is Pithampur, Madhya Pradesh.This state-of-the-art plant has a total area of 72 acres with 18000 sq mt as the covered area. It houses some top-of-the-line equipments, a robust infrastructure and has an annualproduction capacity of 30,000 vehicles.The company has a world-class R&D centre that has helped the company successfully developed a wide range of commercial vehicles including trucks and buses. The company recently invested US$ 22 million for manufacturing heavy commercial vehicles at its pithampur plant.

Nicholas Piramal India Ltd

Nicholas Piramal India Ltd (NPIL) is one of India’s leading pharmaceutical and healthcare companies with sales of US$ 280 million. NPIL is ranked fourth in domestic formulations sales and second in total domestic pharmaceuticals sales. Its Pithampur plant in Madhya Pradesh is accredited by reputed organizations like Allergan, Novartis, Solvay and IVAX, among others. Nicolas Piramal plans to invest US$ 45 million to enhance its research and development activities besides strengthening its manufacturing facilities.

Ruchi Soya Industries Ltd

Ruchi Soya Industries Ltd is the largest edible oil company in India engaged in refining and trading of edible oils, soybean oil extraction, and export of soybean

meal. It has an annual turnover of over US$ 550 million. In 2003, the company embarked on an expansion programme at its edible oil refinery at Indore. The plant capacity is being raised from 600 tonnes per day to 1000 tonnes per day.

Grasim Industries Ltd

Grasim Industries is the flagship of the AV Birla Group, one of the most prominent Indian business houses.With the recent acquisition of cement business of L&T, Grasim has become the largest producer of cement in India. Grasim is also thelargest producer of Viscose Staple Fibre (VSF) in India and one of the largest textile and yarn manufacturers. In Madhya Pradesh, Grasim has a presence througha cement plant at Jawad, a VSF plant at Nagda and textile & fabric manufacturing plants near Gwalior.

Tourism industry of Madhya Pradesh

Vision StatementTo promote and sustainable tourism which enables socio economic development and establishers Madhya Pradesh as a destination that provides a complete tourism experience.

Set up an institutional mechanism to promote private investment.

Set up and effective regulatory mechanism for sustainable tourism.

Provide reception, assistance, information, amenities, hygiene, security and infrastructure for the tourists.

Adopt the principle of "First Conservation Later Tourism" for cultural Heritage.

Make eco-tourism an effective tool to sensitise masses regarding environmental conservation.

Ensure active and coordinated participation of Government Departments, voluntary organizations, community and all other stakeholders of tourism sector.

Role of MP State Tourism Development Corporation Ltd

The role of MP state Tourism Development Corporation Ltd. Shall be as follows:- Tourism Development CouncilsState Tourism Development Council: To provide vision, leadership and ensure convergence, State Tourism Development Council shall be set up under the Chairmanship of the Hon'ble Chief Minister of Madhya Pradesh. Ministers and officers of other Departments, representatives from the tourism sector, voluntary organization and other stakeholders shall be nominated as members of this apex

body.District Tourism promotion council: Efforts are being made at the local level by District Collectors and others to promote tourism related activities with local synergy. In some districts, Collectors have registered Societies to enable these activities. To bring about uniformity, Tourism Department shall prescribe the constitution of these societies and the manner in which they shall discharge their responsibilities. The minister in charge of the concerned district shall chair the Council.

Tourist Placesthere are so many tourist places in Madhya Pradesh. Which historic place of Khajuraho Temple, Mahakaleshwer, and so many wild life sancturies. Panna national park is also famous for the white tigers.

The total turnover of the tourism industry of Madhya Pradesh is about to 100million USD.

A picture of panna national park

khajuraho

Conclusion

The vibrancy and buoyancy of Madhya Pradesh economy is unmistakably clear today, which is supported by a strong entrepreneurial culture of its people and strong infrastructure focus of its policy makers. All these factors provide the state with an ideal platform to leapfrog to a much higher growth trajectory, which makes its performance comparable to global benchmarks.

This global comparative perspective is critical for Madhya Pradesh to dream bigger and achieve the vision of much improved economic performance. The government of Madhya Pradesh is actively working on various initiatives and ideas to continue the momentum at a broader level and gain acceleration for its core industry sectors. moreover, this can lead to a more broad based improvement in the living standerds of all sections of Madhya Pradesh society, there by leading to an inclusive growth environment.

Given the impressive achievements of the state so far, it would be beneficial for Madhya Pradesh to focus on some key enablers that would fulfill the above mentioned outlook. We believe that the state government needs to focus on enhancing three critical pillars of their economic expansion : global networking and communication, building on the infrastructure and bringing about focused implementation . global branding, already an advantage for the state, can bring improved investments; especially in sector that require huge infusion of capital. The existing infrastructure of Madhya Pradesh now needs to achive global standerds and this would need active policy intervention. And all of this would require focused and well executed programme implementation.

Reference

1. www.Google.com

2. www.mapofindia.com

3. www.mp.govt.in

4. www.ibef.com

5. www.madhyapradeshtourism.com

6. Hindustan Time