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MP
Gearing Up to be
India's IT Central
Hub
Madhya Pradesh,
the second largest
state is located
in the very heart
of the country.
It has a population
of over 50 million
and is easily accessible
from every corner
of the country.
From agriculture
to natural resources,
industry, power
and people, M.P.
has abundant potential.
Madhya Pradesh government
had announced its
IT policy in 1999.
It was revitalized
in 2006 and a new
IT policy was launched
with fresh aspirations
and willingness
to bring in a revolution
in e- governance
and induce IT investments
in the state.
IT Policy - Action
Plan
The broad vision
of the State in
the Information
Technology sector
is summarized as
follows:
“Madhya Pradesh
will use Information
Technology to achieve
the following:
• Improve
the life of the
common man leveraging
the strengths of
e-Governance
• Attracting
investment into
the sector so that
the educated youth
are able to contribute
to the development
of the State
• Create a
pool of highly skilled
professionals who
are at par with
the best in the
country.
• Transforming
the Resource-Based
Economy to a Knowledge-Based
Economy.
The four pillars
that govern the
foundation of the
State's IT Policy
are:
(A) E-Governance
(B) Attracting IT
Industry
(C) IT Education
- [HR Policy]
(D) Common Infrastructure
(A) E-Governance:
With increasing
literacy, citizens
demand better services
from the government,
in the shortest
time, at the place
of their choice
and in a transparent
and non-discriminatory
manner. The Madhya
Pradesh Government
focuses on e- Governance
through:
Websites & Content
Creation:
“All the web
sites of the state
will be in both
English as well
as Hindi, in Unicode
Fonts, common look
and feel and with
content relevant
to the user group
the site is intended
for”. The
following shall
be the actionable
points:
1. Department of
Information Technology
will develop a common
template for websites
within one month
of the promulgation
of the policy.
2. All Departments,
using the templates
and suggestion of
Department of IT
should reconstruct
their sites in English
and Hindi with content
relevant for the
user groups. Departments
shall be responsible
for updation of
their site and will
appoint a Webmaster
for this purpose.
3. A committee under
the chairmanship
of the Chief Secretary
shall review the
progress within
six months.
E-Governance Projects:
The Central Government
is funding 10 mission
mode projects of
the state that pertain
to the following
departments; Land
Records, Transport,
Police, Treasuries,
Property Registration,
Employment Exchange,
Agriculture, Municipalities,
Gram Panchayat,
Commercial Taxes.
More departments
to be covered by
State's initiatives
are Forest, Horticulture,
Health etc. The
Departments that
are not in this
list shall be computerised
by State's own resources.
E-Governance projects
shall be funded
as follows:
1. These projects
will be long term
(10 to 15 years).
Joint Venture of
CMM level 5 companies
and Empanelled Vendors
of the State will
be allowed to bid
for the project.
Madhya Pradesh State
Electronics Development
Corporation and
MAP-IT will empanel
the Vendors of the
State, after the
approval of a committee
headed by the Chief
Secretary. The Department
of Information Technology
will provide consultants
for preparing Request
for Proposal (RFP)
and Detailed Project
Report (DPR). The
concerned Department
will follow transparent
procedure for selecting
System Integrator
(SI). The SI will
provide hardware,
software, proprietary
software, manpower,
customised software
and maintenance.
a. Projects where
user charges can
be levied will be
funded under the
public private partnership
principles. Projects
such as Lumbering
Operation MIS of
the Forest Department,
e-Procurement /
e-Tendering and
computerisation
of the Collectors'
office are good
examples.
b. Adequate funds
will be provided
for computerisation
of those departments
submitting a project
proposal. The proposal
must include provision
for improving systems,
processes and procedures.
2. Some Departments
are getting funds
through externally
aided projects or
from the Central
line Ministries
(Water Resources,
Urban Local Bodies,
Police etc). These
departments will
get their projects
sanctioned from
the respective Agency.
3. Departments will
actively discourage
the use of pirated
software. Department
of IT will enter
into select agreements
with major software
companies so that
lowest prices can
be negotiated.
4. All the Departments
in one month from
the date the policy
is promulgated will
undertake the exercise
of identifying funding
source. The high
power committee
under the chairmanship
of the Chief Secretary
will review the
progress.
5. Evaluation of
IT Projects will
be based on a two-stage
evaluation process.
The first stage
will be prequalification
in which the quality
of the bidding companies
will be assessed.
Price bids of only
those companies
shall be opened
who are approved
in the prequalification
stage.
(B) Attracting IT
Industry:
a. The industry
grew in tier I cities
such as Bangalore,
Hyderabad, Chennai
and Delhi. Due to
congestion and infrastructural
problems it has
started looking
at tier II cities
such as Pune, Chandigarh,
Bhubaneswar and
Nagpur for expanding
operations and reducing
costs. The State
plans to capitalize
on this development
and promote investment
in Indore, Gwalior,
Bhopal and Jabalpur.
To attract the IT
industry and to
develop private
IT parks, following
will be the course
of action:
i. Software, Business
Process Outsourcing
(BPO), Information
Technology Enabled
Services (ITES)
and Computer Hardware
(as described in
the notification
number F-16-8-eleven-D-99
dated 28-01-2000
of the Industries
Department) will
qualify as the Information
Technology Industry.
ii. Large chunks
of land (Preferably
more than 100 acres)
near the Airports
of the above four
cities will be earmarked
by the State for
Information Technology
investment area.
Composite townships
with food courts,
hospitals, shopping
malls, residential
complexes, schools,
five star hotels,
and other entertainment
facilities for the
software professionals
will be allowed
in these areas.
Land earmarked for
this purpose will
not be diverted
for any other purpose
without the consent
of the high power
committee under
the chairmanship
of the Chief Secretary.
iii. The State Government
or its agencies
will not undertake
construction on
their own in the
IT investment area.
Suitable private
sector infrastructure
development agencies
will be identified
who will undertake
the development,
marketing and management
of the IT investment
area. The State
or its agency will
only be a facilitator
or a minority partner
in the Special Purpose
Vehicle.
iv. The Government
will facilitate
acquisition of private
land in accordance
with land acquisition
act for development
of IT investment
area by leading
and reputed private
sector companies
who posses experience
of making sizable
investment in this
sector.
v. Incentives by
the Government of
Madhya Pradesh
Incentive to the
Industry:
1. All incentives
provided under the
Industrial Policy
shall be applicable
to the IT Industries
established on Government
allotted land/private
land with a provision
of single window
processing/clearances
for all government
formalities.
2. The Government
shall reimburse
prospectively, 30
percent of the cost
incurred by an IT
Company operating
in the State and
employing more than
100 people, on securing
quality certification
of Capability Maturity
Model (CMM/CMMi)
Peoples Capability
Maturity Model (PCMM)
level 3 and above,
subject to a maximum
ceiling of four
lakhs. This incentive
will be available
only once to the
applicant company.
3. Exemptions up-to
twice the existing
FAR for entire IT
investment area.
4. Stamp duty payable
by IT companies
on mortgage/ hypothecation
with banks/financial
institutions in
IT investment area
will be exempted
provided the new
unit is certified
to be an IT outfit
by a designated
agency.
5. Stamp duty and
registration fee
exemption will be
applicable on Sale/lease
by financial institutions/
Government Agencies/
Pvt. Sector companies
which acquire space/premises
in the IT investment
area for subsequent
lease to IT units
provided the new
unit is certified
to be an IT outfit
by a designated
agency.
6. Rate of property
tax in the IT investment
area will be at
par with residential
premises.
7. No prior permission
will be required
for installation
of captive power
plant.
8. Rebate in Cost
of Land is being
included as one
of the major incentives
for attracting investments
in the state. IT
companies establishing
the facilities can
avail rebate in
the cost of land
linked to employment.
The terms for allotting
land and the procedure
for availing the
rebate is defined
below:
a) Rebate shall
be applicable only
on Government lands
and land belonging
to Development Authorities/
Government owned
Corporation.
b) Rebate shall
be restricted to
Rs. 25,000/- per
job created in the
unit.
Or
The applicant companies
proposing to have
fixed capital investment
(excluding working
capital) of Rs 10
Crore and above
will have the option
of land at the rate
of 25% of the prevalent
premium, subject
to availability
of land and with
the condition that
the investment in
fixed capital will
be made within a
period of three
years. Land to such
units will be allotted
according to the
table given below:
a) Minimum number
of employees hired
by a company in
order to avail the
concession shall
be 100.
b) Company taking
concession will
have to continue
operation for two
years
c) Companies providing
employment to more
than 500 persons
will be provided
further concession
on rate of land.
The Cabinet Committee
formed for implementation
of this policy shall
take decision in
this regard.
d) Land will be
allotted for 33
years on lease with
provision for further
renewal. A minimum
60% of the total
of the IT investment
area will be used
for IT operations
and the balance
40% can be used
for ancillary use
and support services.
The area so developed
should have facility
to create at least
350 jobs per acre.
2. IT Industry shall
be provided power
through a dedicated
feeder.
3. Exemption from
Factories Act, Maternity
Act, Contract Labour
Act, Payment of
Wages Act, Minimum
Wages Act, ESI Act.
4. Exemption from
electricity duty
tax, entry tax and
work contract tax.
5. IT units in IT
investment area
will be exempted
from payment of
Octroi, entry tax
and local bodies
tax for all capital
goods and raw material
purchased by them.
6. All incentives
will be for five
years from the date
the IT unit becomes
operational.
7. Companies establishing
IT industries in
the state shall
be entitled to Special
Economic Zone (SEZ)
status under the
Central Government
provisions.
8. Companies providing
employment to more
than 250 people
in the state will
get preference of
10% marks in the
prequalification
stage of the bidding
process of IT procurement.
( C ) IT Education
- [HR Policy]
Madhya Pradesh has
been able to produce
a large number of
graduate engineers
in IT and computer
sciences. Presently
the state has more
than 60 engineering
colleges. Graduates
from these colleges
are not able to
fulfill the needs
of the industry.
There is a need
to upgrade their
skills and make
the manpower compatible
with the industry
requirement. The
present government
schooling system
is not producing
manpower, which
can fulfill the
requirement of BPO
and ITES. NASSCOM
in consultation
with a leading IT
consultant, KPMG
has published a
report that predicts
the pattern of IT
manpower requirement
in the next five
years. It is indicated
that these two sectors
will be requiring
2.1 million people.
This sector requires
keyboard skills,
Internet browsing
skills; ability
to work on office
packages, data entry
and knowledge of
the laws of the
client country and
their procedures
In view of the description
given above, the
following is proposed
to be undertaken
during the Policy
implementation period:
1. Selected 500
government schools
will be provided
modern computing
hardware, software
and Internet connectivity.
These centers will
produce students
equipped for taking
jobs in the BPO/ITES
sectors. Department
of School Education
in consultation
with the state IT
Department, IT Industry,
other concerned
departments and
groups will prepare
a course curriculum
to be taught in
these schools. The
School Education
Department will
promote teaching
computers and technology
in these schools.
2. To improve the
standard of IT education
in the engineering
colleges and Government
Colleges to make
our graduates employable,
centres of excellence
will be established
in all Government
engineering colleges
and selected Government
colleges. The State
would invite large
reputed companies
to teach technology
and provide their
certification in
these centres.
3. English language
teaching will be
promoted in school
education.
4. A Centre for
E-governance will
be established in
Bhopal, which will
allow engineering
graduates from the
IT field to work
on live E-governance
projects. These
centres will be
based on a spectrum
of technologies
that would include
proprietary as well
as open source.
Noted IT professionals
would man these
centres. The Department
of IT will submit
a Detailed Project
Report [DPR] within
six months from
the announcement
of the Policy.
( D ) Common Infrastructure
i. Common infrastructure
such as State Wide
Area Network [SWAN],
Natural Resource
Management [GIS
based], Data Centre,
Disaster Recovery
Sites and Inter
Operability Standards
are required so
that all the departments
are able to utilize
these services without
bothering about
the maintenance
of these complex
facilities.
Building Investment
Opportunities &
Creating Positive
Vibes to Attract
Investors to the
State of Madhya
Pradesh IT SEZ
Madhya Pradesh is
one of the fast
growing destinations
for the investments
in the field of
Information Technology.
NASSCOM AT Kearney
Report reconfirms
the Investment Destination
as Madhya Pradesh.
Madhya Pradesh is
bestowed with excellent
location conditions,
bordering seven
Indian states which
allow easy access
to other parts of
the country. Availability
of resources, well
developed infrastructure,
availability of
trained and skilled
manpower in abundance,
a peaceful law and
order situation
are some of the
factors which are
conducive to favorable
environment for
influencing investment
decisions and attracting
investments. Madhya
Pradesh scores high
on all these counts.
Also, the Government
of Madhya Pradesh
has ambitious plans
to develop and upgrade
the state's road,
rail and air connectivity.
The IT sector provides
immense opportunities
for motivating flow
of investments into
the State. Madhya
Pradesh is making
remarkable achievements
in promoting IT
in Government as
well as private
areas, which includes
e-governance, computerization
in Government departments
and various IT related
activities for rural
areas. In Madhya
Pradesh IT has improved
the citizen-government
interface and made
it more transparent,
efficient and effective.
Emergence of IT
has opened new vistas
of investment opportunity
and to its support;
the State Government
has revitalized
its IT policy in
the Year 2006 to
attract private
investment in the
IT sector.
Several companies
have evinced interest
to invest in the
State. Besides,
the Government is
in process of setting
up of Software Technology
Parks at Bhopal,
Indore and Gwalior
so as to provide
the necessary infrastructure
for IT companies.
A brief detail about
the new IT infrastructure
is stated as below:
1. 11 IT SEZs “Formal
approval”
granted by BOA.
• 4 in Government
and 7 in private
sector
2. IT SEZs proposed
in Bhopal, Indore
and Jabalpur [Public
Private Partnership]
• 4 million
square feet of quality
office space to
be developed in
Bhopal, 1 millon
each in Gwalior
and Jabalpur
• Support
facilities like
5-star hotels, shopping
malls, food courts,
residential houses,
etc. to be built
Bhopal
• IT SEZ area
in 180 acres of
land at village
Badwai near airport.
• Compact
Disc Limited Chandigarh,
allotted five acres
of land
• Underhills
Technology, New
Jersey, USA allotted
10 acre of land
• Netlink
Infotech Ltd., allotted
10 acres of land
• STPI allotted
three acres of land
for an Incubation
Centre.
• SEZ Developer
identified, LOI
issued to UNITECH
Jabalpur
• 90 acres
of Govt land for
IT SEZ 15 km away
from the Airport.
• Essar Group
proposing to set
up their BPO (ITES)
centre.
• One million
square feet of quality
office space to
be developed.
• Identification
of developer in
process
Gwalior
• 30 acres
of Government land
for IT SEZ barely
10 km from the Airport
• STPI allotted
three acres of land
for incubation centre.
• 80,000 sq.
ft area ready to
occupy near SEZ
• One million
square feet of quality
office space to
be developed.
• Identification
of developer in
process
“Investment
is pouring in this
sector and the economy
& infrastructure
fundamentals are
proving to be robust
and perfect. Investors
are sure to make
the most of this
great opportunity.
This is just the
tip of the iceberg;
Madhya Pradesh is
on war footing to
be a winner.”
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