Madhya Pradesh: Means Business
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Transcript of Madhya Pradesh: Means Business
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Madhya Pradesh: Means Business
Roads
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Overview
MP is the second largest State in the Country stretching over 308,000 sq kms.
The State is blessed with large mineral resources of coal, diamond, limestone, methane etc.
MP is among the top 4 states of the Country for industrial investments.
Per capita GSDP USD 369**
Manufacturing sector USD 8.5 bn**
(Registered & Unregistered)
Gross state domestic product (GSDP) USD 23,983.63 Mn**
Average growth rate 5.5% per annum
Advantage MP
Total electricity generation capacity 6,449.25 MW*
India’s first greenfield SEZ Indore SEZ
Industrial Centers 8
The State is centrally located
Investor friendly Government policies
Madhya Pradesh has one of the upcoming industrial base in India
Economic Snapshot Madhya Pradesh is emerging as a key growth center for the Country
Madhya Pradesh (MP) – State that means businessOverview
MP is rich in low grade coal suitable for power generation. Potential of hydro-energy generation. Installed power capacity (MP’s share)
Hydel Power Generation: 852.7 MW* Thermal Power Generation: 2,147.5 MW*
Power Electricity generation capacity at present is 6,449.25 MW and estimated to rise to a surplus in 2008-09
*Ministry of Power (powermin.nic.in) **Source: Indiastat.com (as on 23 Feb 2006)
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• The State is well connected with the rest
of India with almost 425 trains passing
through the State on a daily basis. Of
these 175 trains pass through the State
capital Bhopal alone.
• The total length of roads spanning MP is 67,600 kms.**
• National highways of 5,200 kms run through the State.*
• 18 National highways including trunk routes of Delhi-Mumbai, Delhi-Chennai, Delhi-Bangalore, Delhi- Hyderabad.
• The total length of State highways in the State is 9,885 kms.**
• Convenient linkages to western ports i.e. Kandla Port, Jawahar Nehru Port Trust.
• 25 airstrips.**
• Convenient air links from key Indian cities like Delhi & Mumbai to Bhopal, Jabalpur, Gwalior, Indore and Khajuraho.
• 5 operational airports.
• Indore airport has the capability of handling international cargo.
• An international airport proposed in Bhopal.
Enabling Infrastructure
MP IS CENTRALLY LOCATED AND WELL
CONNECTED WITH ALL MAJOR CITIES IN INDIA
*Source: Department of Road Transport & Shipping (morth.nic.in) **Source: www.destinationmadhyapradesh.com
INDORE BHOPAL
JABALPUR
GWALIOR
KHAJURAHO
4
Third largest producer of
cement in India*
12 blocks with reserves
totalling 2,585 million tons
of coal has been identified
Largest producer of pulses
and oilseeds in the Country
(~75% of soyabean
production)
31% of the State under forest
cover with a largely unexploited
species of rare, valuable
medicinal- herbal plants
Over 2,000 kms of roads
being developed with
Private Partnership (BOT)
Over 18,000 technical
graduates and 230,000
graduates add to workforce
each year
Over 144 BCM of coal bed
methane reserves available
Over 100 agricultural farms with
an area of over 20,000 acres is
available on lease to investor
India’s 1st operational
Greenfield SEZ at Indore
Favourable climatic
conditions for cotton
and over 40,000 power-
looms are driving the
textile industry
Availability of coal and natural gas
(G.A.I.L pipeline) along with support
from Government to make investment
in Thermal Power Plants lucrative
Offers diverse tourists destinations
catering to various segments of
tourism such as religious (Bhojpur),
eco/ adventure (Panchmari), heritage
(Sanchi, Khajuraho) tourism etc.
Madhya Pradesh: A Preferred Investment Destination
Various blocks available
for power, cement, iron
and steel units
*Source: www.mpsidc.org & Brochure: MP Means Business
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0%
20%
40%
60%
80%
100%Vishakapatnam
Chennai
Greater Noida
Chandigarh
Jaipur
Indore
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50
100
150Mumbai
Delhi
Bangalore
Chennai
PuneHyderabad
Indore
Bhopal
Ahemadabad
Mumbai(780 Kms)
(MPV - 1000) Pune(800 Kms)
(MPV - 206.51)
Bangalore(1400 Kms)
(MPV - 254.52)
Chennai(1430 Kms)
(MPV - 362.84)
Hyderabad(840 Kms)
(MPV - 257.9)
Delhi(740 Kms)
(MPV - 789.5)
Ahmedabad(570 Kms)
(MPV - 220.63)
Kolkata(1350 Kms)
(MPV - 613.19)
Key Markets
(Distance From Bhopal)
MPV – Market Potential Value
Source: (Reference: RK Swamy)
MP: The Right Place with the Right Environment
MP is centrally located. The State is at an easy distance from
all the key consumer markets in the Country.
DESTINATION MADHYA PRADESH
- Distances rounded off**Source: India Today (September ‘06 Issue)
Fastest mover* in overall
performance among the
big States in the Country.
Fastest mover in agriculture
Fastest mover in
infrastructure development.
Ranks 2nd in terms of
governance.
Ranks 3rd in terms of law &
order
Cost of skilled labour is USD
2.4/day vis-a-vis USD 3.5 –
USD 4.0/day in metros
* Fastest mover is the State where the rate of improvement between 2003 & 2006 was greater than that between 1991 & 2003
Bhopal and Indore have substantial cost
advantages, even when compared to other Tier
III and IV cities.
Savings in Office Space Rates
(A comparison of rates in Central Business Districts)
The cost of land is one of the lowest in the Country. Even central hubs such as Indore and Bhopal fare well against other cities in terms of low land cost.
(Estimated Values for Multi-product SEZs)
Savings in Land Cost
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Industrial Policy: Catalyst for the InvestmentsThe Government of MP has devised an investor friendly industrial policy,
which is aimed at achieving global competitiveness. The policy emphasizes
on industrial growth in the state through adopting cluster approach,
establishing specialized infrastructure and offering favourable incentives.
The main thrust of this policy is:
• Establishment of a Madhya Pradesh Trade and Investment
Facilitation Corporation which would take decisions about
rationalization of taxes, facilities of mega projects and other related
matters.
• Enacting an Industrial Facilitation Act and to change the rules of
business with a view to make single window system decisive and result
oriented.
• Developing infrastructure for supporting the identified industrial
clusters
• Reviving closed down/ sick industrial units by granting special packages.
• Attractive incentive schemes.
CLUSTER APPROACH
• Indore – Pharmaceutical, Textile, Food Processing, IT, Auto Components
• Bhopal – Engineering, Biotechnology, Herbal, IT, Food Processing
• Jabalpur – Garment, Mineral, Forest & Herbal, Food Processing
• Gwalior – Electronics, IT, FMCG, Engineering, Food Processing
• Rewa – Refractories, Lime Stone, Forest Based
• Sagar – Mineral Processing
• Special package for Mega Projects on project basis by apex level investment promotion empowered committee headed by the Chief Minister.
• Industrial investment promotion assistance – 50% to 75% of commercial tax for 3-10 years
• Concessional registration charges and stamp duty exemption for Term Loans.
• Interest subsidy on term loan for 5 – years @ 3% to 5%.
• For thrust sector industries, 25% capital subsidy would be provided limiting up to a maximum of USD 56,000
• Land on 75% concessive rate for Mega Projects limited to USD 4.4 million.
• Entry tax exemption for 5 years.
• 5 years electricity duty exemption on captive power generation
• 15% capital subsidy to SSI up to USD 33,000 in backward areas
• Infrastructure grant up to USD 0.22 million crore for developing private sector industrial parks
• Partial reimbursement for Project report, ISO Certification, Patent and Technology Purchase cost
SPECIAL INCENTIVES
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E Crystal IT Park Indore
Food ParksMandsaur, Khargone, Chhindwara, Hoshagabad, Mandla and Bhind
Stone Park Katni
Herbal Park Rewa
Granite Park Chhatarpur
Life Sciences Project Bhopal
Apparel Park Indore (SEZ)
Gems & Jewellery Park Indore
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Area Developed: 2,492 Hectares
Allotted: 1431 Hectares
Units established: 575
Major Groups: Tata, Ranbaxy, Eicher,
Bridgestone, Hindustan Motors, Kinetic,
SRF, S Kumars, Gajra, Nicholas Piramal,
Indorama, IPCA, Bhilwara
Special Infrastructure: SEZ, Crystal IT
Park, Food Park, Apparel Park
In a bid to build a competitive environment; industries and their ancillaries would be promoted in clusters based on the availability of raw materials,
skilled labour and market potential. Under this Industrial Policy through Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd (MPAKVNs)
scheme, the State Government, has identified industrial clusters. Many of the industrial giants have their establishments in these areas, however 44% of
developed area is still untapped and open for investment.
Total developed area
7,147 Hectares
Total allotted area3,089
Hectares
Total units established
1,360
Growth centres 19
Doing Business Made Easy Through MPAKVNIN
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Area Developed: 1,330 Hectares
Allotted: 618 Hectares
Units established: 286
Major Groups:HEG, Crompton
Greaves, P&G, Godrej, Lupin, IFB,
Oswal, Nahar
Special Infrastructure: ICD, Food
Park
Area Developed: 2,262 Hectares
Allotted: 800 Hectares
Units established: 326
Major Groups: JK, Surya Roshini,
Godrej, Grasim, Cadbury, Hotline,
Crompton Greaves
Special Infrastructure: ICD, Food
Park
Area Developed: 273 Hectares
Allotted: 115 Hectares
Units established: 121
Major Groups: Birla, Jaypee
Special Infrastructure: Integrated
infrastructure development centres
(IIDC)
Area Developed: 790 Hectares
Allotted: 125 Hectares
Units established: 52
Major Groups: Raymond, Hindustan
Petroleum, PBM, Ayur
Special Infrastructure: Stone Park,
Food Park
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Pithampur, Kheda, Dewas, Maksi, Megh Nagar
Malanpur, Malanpur Phase II, Banmore, Chainpura, Siddhgawan, Pratappura
Rewa, Waidhan
Borgaon, Maneri, Purena
Mandideep, Pillukhedi,
Mandideep Phase II
Source: MPSIDC
Sector Profile
Roads
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Roads: Motoring Away
MP: Connecting India
MP: Offering Specific Incentives
Government Initiatives: MP Road Policy
MP: An Investment Destination
Way Forward
Connecting Further
Sector Profile: Roads
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• India has one of the largest road networks in the world (over 3.3 million km).
The roads carry nearly 70% of freight and 85% of passenger traffic in the
country.
• Government expenditure on roads in India is significant - 12% of capital and
3% of total expenditure. Investment in the road sector is expected to touch
USD 66.50 billion in 2005-07. As per National Highways Authority of India
(NHAI), a total of 23,546 kms of roads would be constructed in the next two
years. This construction would be conducted under following four programs,
namely:
Golden Quadrilateral (Program Under NHAI)
North-South and East-West (Program Under NHAI)
Port connectivity and other projects
Non NHDP (National Highway Development Program) Projects.
• The focus of successive Governments on improving road connectivity across
the country, has brought about significant investments in road development.
• As per a recent World Bank study, the cumulative funding shortfall over the
10 year period is estimated at USD. 23.22 billion , approximating 39% of the
total requirement. The funding gap assumes that all the road user charges
generated on the highways are returned to the highway sector. If the current
proportion of road-user charge revenue is returned (56%), then available
funding for highways would be less than the maintenance needs, and the
funding gap would rise to USD 39.11 billion.
Roads - Motoring AwayIndian Road Network*
Indian road network of over 3.31 million Km. is second largest in the world and consists of :
Length (In Km)
Expressways 200
National Highways 66,590
State Highways 1,28,000
Major District Roads 4,70,000
Rural and Other Roads 26,50,000
Total Length 3.31 million km
(Approx)
Status of National Highways as on 31st July, 2006*
Single Lane/Intermediate Lane 32%
Double Lane 56%
Four or more Lanes 12%
*Source: National Highway Authority of India (www.nhai.org)
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• MP has a well developed transport infrastructure of roads, rails
and airports. 5200 km* of National Highway runs across the
state with total length of the roads estimated around 67,600
km*.
• MP has the 3rd largest network of National highways in the
Country after Uttar Pradesh and Rajasthan.
• Since MP is centrally located within the country, most of the
long haul road traffic in the north-south and east-west direction
in the country has to pass through the state.
• 18 National Highways including trunk routes of Delhi-
Mumbai, Delhi-Chennai, Delhi-Bangalore, Delhi-
Hyderabad complete their stretch by passing through the
State.
• State highways are of 9885 kms* length, connecting key urban
and tourist centers within the state
• State roads provide convenient linkages to Kandla Port,
Jawahar Nehru Port Trust.
FROM TO DIST.
Bhopal Delhi 740 Km
Bhopal Mumbai 780 Km
Bhopal Chennai 1435 Km
Bhopal Bangalore 1400 Km
Bhopal Hyderabad 840 Km
Bhopal Kolkata 1350 Km
Bhopal Kandla 930 Km
Bhopal Ahmedabad 570 Km
MP: Connecting India
DISTANCES OF MAJOR CITIES FROM THE STATE CAPITAL*
Distances rounded offSource: NHAI (www.nhai.org)
ROAD MAP OF MP
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• Foreign investments in the development of selected stretches
of State Highways to maintain and operate them generally for a
period up to 30 years (concession period) after opening the
facility for traffic and the entrepreneur is permitted to collect and
retain toll as approved by the Government
• Private entrepreneurs will design, construct, maintain and
operate the facility from their own resources or funds borrowed
from financial institutions, banks, open market etc.
• To ensure free flow of traffic, the normal checks by the authorities
will be conducted at entry and exit points only. The traffic on such
facilities will be normally regulated by the entrepreneur.
• Basic facilities for the traffic en route, provision for developing
and operating highway related facilities such as restaurants,
motels, fuel stations, rest/parking areas, shopping malls,
transport nagars and other related facilities could be made.
The income from such facilities will also enhance the viability of
the project.
FEATURES OF MP BOT SCHEME• In terms of infrastructure, roads in particular has been recognised as the thrust area by the Government of MP.
• In order to promote involvement of the private sector in construction and maintenance of roads, the Government has decided to offer projects on a Build-Operate-Transfer (BOT) basis.
• Private sector participation initiative has been taken by MP Government as large funding amounts are required for such mega ventures.
Type Of Projects Identified For Private Sector Participation
• Considering the usefulness to serve the economy, the intention of the Government is to involve Private Sector for taking up development of following type of projects on State Highways :
(i) By passes
(ii) Bridges
(iii) Railway Over Bridges
(iv) Widening of existing roads
(v) Ring Roads near big cities.
(vi) Improvement/ maintenance of existing roads etc.
• There is a significant opportunity for BOT in the national highways segment as they carry more than 40% of the traffic even though they constitute just about 2% of the total road network in the country.
MP: Offering Specific Incentives
The Government is paying special attention towards the quality of roads being constructed. With the number of projects proposed, the private sector
participation is foreseen for the overall development of the State.
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MP: Offering Specific Incentives• The State Government is also focusing on the development of
the National Highways that run through the State to promote the participation of private investors. These works include the following:
• Rehabilitation of the roads
• Maintenance
• Construction of new patches
• For NHDP in particular, the private sector has responded enthusiastically. Under this programme, projects valued at over USD 1.33 billion are being implemented. The NHDP has been extended to cover a 50,000 km road network, and these future works will be undertaken on a BOT basis (through toll or annuity).
GOVERNMENT DIRECT SUPPORT
• The State Government will identify priority projects, and allow the private sector to design, construct and operate the toll roads. The choice of entry/ exit points may be mutually agreed between the Government and the entrepreneur.
• The land for highway development will be acquired by the Government and given to the entrepreneurs on certain terms and conditions for the land.
• Tax holiday for five years for road infrastructure development project as per the policy decision of Central Govt.
OTHER SUPPORT FROM THE GOVERNMENT
1. Project Implementation
• The entrepreneurs will enjoy full freedom in carrying out the assigned project. However, they will have comply with certain standards, safety of structures, specifications, satisfactory operations and management as laid by the Government.
• The Public Works Department (PWD) will play a major role in approvals and implementation.
2. Registration of entrepreneurs under special category
• The State Government has registered entrepreneurs for carrying out work on a B.O.T. basis.
• 35 firms have already been approved under this category
3. Modification in B.O.T. contract
• Further to the inputs received from the entrepreneurs, the contract agreement to be used for the B.O.T. scheme has been modified and made more comprehensive to facilitate smooth working and execution.
Source: www.mp.nic.in/pwd
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Government Initiatives: MP Road Policy • The main aim of the MP Road Policy is to work towards the up
gradation of the existing road infrastructure so as to provide
an efficient road network system along the length and breadth of
the State keeping in mind that the accruing benefits may be
passed on evenly to all sections of the society
• Government of MP has made recent amendments in the Indian
Tolls Act of 1932, so as to encourage private sector
participation in mega ventures.
• The major roads in the State have been rehabilitated or have been
taken up for rehabilitation. The State has come up with road
renewal programmes under which maintenance of the existing
road infrastructure will be undertaken. The envisaged activities will
be according to the following renewal regime:
• National Highways - One third of the road length every year
• State Highways - One fifth of the road length every year
• Major District Roads - One sixth of the road length every year
• Village Roads - One eighth of the road length every year
• All the major towns and district headquarters are linked with roads
having high quality surfacing and riding comfort
The main objectives of the Road Policy are:
• To provide connectivity to villages with a population of more
than 1000.
• The road network for villages having population less than 500,
will be so planned that an all weather road will be available at a
distance of 3 km in plain areas and at a distance of 5 km in hilly
areas.
• Improvement of existing State road network system to 2 lane/ 4
lane roads to cater the need of the projected traffic.
• To enhance the road infrastructure in towns and cities.
• To effectively utilise the present resources.
• To constantly update the highway technology by adopting
modern techniques of construction and training of department
personnel.
• To ensure high standard of road safety and travel comfort.
MADHYA PRADESH ROAD POLICY
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MP: An Investment Destination• The State Government of MP has taken initiatives to improve
the condition of the roads on a priority basis. The budgetary
allocation for roads has been increased from USD 90 Mn in
2003-04 to around USD 210 Mn in 2005-06.
• In the past 2 years, 12,500 kms of roads were constructed
which is now projected to increase to 40,000 kms more in the
next 3 years
• The State Government is encouraging the involvement of
private sector to take up the projects on a BOT basis.
• These initiatives by the Government are showing immediate
results, with the traveling time being decreased significantly.
Distance Before At Present
Hoshangabad - Harda 100 km 8 hrs 2 hrs
Hoshangabad - Seoni 90 mins 45 mins
• At present 1000 kms of roads have already been laid down
on a B.O.T. basis and construction of another 1100 kms is in
progress.
• Madhya Pradesh Road Development Corporation (MPRDC)
is the nodal agency carrying out all the developmental work in
association with the private sector.
• It is proposed that MPRDC will carry out the development of
3000 kms of road in the next 3 years with assistance from
NABARD and the Central Government.
Name of the Project Length (Kms) Project Cost (Mn USD)
Dewas – Ujjain - Badnawar 98.26 11.09
Hoshangabad – Piparia - Panchmarhi 126.00 12.66
Hoshangabad – Harda – Khandwa 185.00 18.00
Satna – Maihar – Umaria 141.00 11.84
Rewa – Amarkantak 246.00 24.72
Indore – Edelabad 203.00 27.56
Ujjain – Jhalawad 134.00 14.82
Jabalpur – Narsinghpur – Piparia 140.00 16.65
Raisen – Rahatgarh 101.40 12.82
SOME SUCCESSFULLY COMPLETED BOT PROJECTS
• All the divisional headquarters have been connected to the
State capital by road. It is now proposed that all the district
headquarters will be connected to the Divisional
headquarters.
Leading Road Developers such as Ramky Infrastructure
Construction Private Limited, Unitech Limited, KNR
Constructions Limited, Madhucon Projects have sizeable
presence in the State and are involved in several National and
State Government projects. The peaceful environment in the State
and the cooperative State Government facilitates faster
implementation of the project thereby increasing the profitability of
the project.
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B.O.T. PROJECTS (PROPOSED)
S.No Name of projectLength (kms)
Estimated cost (Mn USD)
1 Sehore – Dewas 142 ~103.00
2 Lebad – Nayagaon 250 ~184.00
3 Chandrapur – Badwani 100 ~12.50
4Matkuli – Tamia – Chindwada
108 ~21.00
5Mandsaur – Sitamau (up to Rajasthan Border)
44 ~5.60
NATIONAL HIGHWAY PROJECTS (PROPOSED)
S.No Name of projectLength (kms)
Estimated cost (Mn USD)
1 NH 75 (Km 0 to 85) 108 ~120.00
2 NH 7 (Km 544 to 652) 104 ~115.50
3NH 3 (Khalghat to Maharashtra Border)
88DPR IN
PROGRESS
4NH 12 (Bhopal – Deori – Jabalpur)
297DPR IN
PROGRESS
5NH 59 (Indore – Jhabua – Ahmedabad)
169
6NH 69 (O’ganj – Bhimbhekta)
13DPR IN
PROGRESS
7NH 75 (Jhansi to Khajuraho)
100
8NH 86 Ext (Bhopal to Sanchi)
40
ADB PHASE III (STATE HIGHWAY PROJECTS COMING UP)
S.No. Name of project SH no. Total length (kms)
1 Shivpuri – Sheopur – Pali 06 143.60
2 Kurwai – Chanderi – Pichoore 19 183.00
3 Bareli – Piparia 19 32.00
4 Damoh – Hata – Amanganj 49 112.00
5 Chhilpi – Baiihar – Balaghat 26 135.00
6 Khandwa – Khargone 26 87.00
7 Satna – Chitrakoot 11 74.00
8 Chiraidongri – Seoni 11A 97.00
9 Malhara – Amanganj 10 90.00
10Hoshangabad – Nasarrullaganj – Khategaon
22 90.00
11 Silvani – NH12 Junction 16 53.00
12 Banher – Bistan (Maharashtra) 31 25.00
13 Khargone – Mandleshwar – Mhow 01 119.00
14 Balaghat – Nainpur 11 75.00
15 Tala – Shahdol 10 85.00
16 Morena – Porsa 02 50.00
17 Indore – Ujjain 17 55.00
18 Shyampur – Goras 23 58.00
19 Dindori – Mandla – Lakhnadon 40 134.00
20 Katni – Barhi – Tala 10 60.00
21 Gairatganj – Gadarwra 44 85.00
22 Bela – Govindgarh – Churhat 52 63.50
The State Government has already completed the work on a total of 2977.25 km length of roads with the total cost of USD 361.22 bn*. There are various projects where the Government is seeking private partner investment. Following are some of the identified projects that are proposed to come up in the near future. Many of these high density roads will be developed under BOT/ private development methods. This offers a significant opportunity for infrastructure players to invest in the sector.
Way Forward…
Considering the successful completion of other mega projects and the potential lying in the up coming ventures, the road sector in MP is poised to become the most lucrative areas for private investors in times to come.
BO
T
Source: mprdc.nic.in
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Connecting Further
National Highways Authority of India www.nhai.org
Public Works Department, Madhya Pradesh www.mp.nic.in/pwdmp
Madhya Pradesh Road Development Corporation mprdc.nic.in