Madhya Pradesh
The Frontrunner for Foreign Investment

In an amazing turn-round, Madhya Pradesh has embarked on the path of development in every sphere. Landlocked and centrally located, the State is taking full advantage of connectivity in terms of logistics. The State Government, under the stewardship of Chief Minister Shivraj Singh Chouhan has initiated a number of policy measures to facilitate investments in a big way. Attractive incentives for infrastructure development have been announced. Special Economic Zones (SEZs) have taken off. Today Madhya Pradesh is among the frontrunners, successfully wooing investors, especially NRIs and other major overseas players. As a first step towards this end, the State Government is hosting an investor's meet in the historical city of Khajuraho on 16 and 17 January 2007. This meet will be part of and predecessor to the larger event The Destination Madhya Pradesh - Global Investors' Summit 2007, which will be held on 4 and 5 October 2007 in the State Capital of Bhopal.

Khajuraho Meet
16-17 Jan '07
Global Summit
Bhopal 4-5 Oct '07

Investors' Meet - 16 & 17 Jan '07
Khajuraho Calling

The Madhya Pradesh Government is hosting an investors' meet in Khajuraho on 16 and 17 January 2007 at Hotel Clarks, to make identified key non-resident Indians (NRIs) and other prospective overseas investors aware of the exciting investment opportunities now available in the State.

This event will be part of and predecessor to the larger event The Destination Madhya Pradesh - Global Investors' Summit 2007, which will be held on 4 and 5 October 2007 in the State Capital of Bhopal.
The Khajuraho meet is aimed at motivating investors to come to the State individually or collaborate in joint ventures with industrialists already operating there.
The Khajuraho meet, where Chief Minister Shivraj Singh Chouhan will be present, will provide an interactive platform to investors, industrialists and businessmen to have focused and direct discussions with key officials of the State Government.
The State Government will take the opportunity to present various project profiles presently available in the identified sectors and areas. Senior state functionaries would elaborate on the new initiatives being taken by government for stepping up the inflow of fresh investments and advantages of setting up new industries and businesses in Madhya Pradesh.
The State Government will facilitate on the spot signing of Memoranda of Understanding (MOUs) and Expressions of Interest (EOIs) of firmed up and bankable project proposals of prospective investors.

Investor-friendly Industrial Policy
The Government of MP has devised an investor friendly industrial policy, which is aimed at achieving global competitiveness. The policy emphasizes industrial growth in the state through adopting a 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.
In order to facilitate a larger flow of investments, the government has announced a Special Incentive Package for Mega Projects. The package features include:
• Clearance of projects by apex level investment promotion empowered committee headed by the Chief Minister.
• Industrial investment promotion assistance 50 percent to 75 percent 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 5 percent.
• 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 percent 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
Madhya Pradesh: An Emerging Industrial Powerhouse
Madhya Pradesh is an emerging industrial powerhouse of the country. The State houses around 1,800 companies and 19 industrial growth centers (located across 7147 hectares) that are close to major cities. This makes good social infrastructure accessible to industrial units.
Further, there are around 171,000 small-scale industries that contribute significantly to the economy.
MNCs like Cadbury, Bridgestone, Hindustan Lever, Coke and renowned Indian companies like Ranbaxy, Tata, Grasim, Hindustan Motors, Eicher, Kinetic, Hotline, Raymonds, Lupin, Crompton Greaves, Surya Roshni, Nahar Spinning, Anant Spinning, Godrej, HEG and several other big groups have presence in Madhya Pradesh.
These companies not only meet local requirements, but also export a variety of products and services to both developed and developing countries.

The Great Locational Advantage
Madhya Pradesh offers an unparalleled locational advantage to companies as they incur lower transportation cost for transferring goods to every corner of the country. Further, cost of basic requirement such as land, water, skilled manpower is less as compared to other states.
On the labour front, the state provides peaceful & conducive atmosphere for industrialization, law and order situation in the state is under control.

Captive Power Plants
State also allows the industrial units to have captive power plants to produce power as per their requirement. The State Government desires to have a higher rate of economic development through rapid industrialization. Some of the key initiatives taken by government recently include:
• New Industrial Policy-2004
• Madhya Pradesh Trade and Investment Facilitation Corporation (TRIFAC)
• Udyog Mitra Yojana- 2004
• Industrial Facilitation Council
• Industrial Projects SEZ, Indore, Food Park, Apparel Parks, etc
• Modernization of Roads and other infrastructure
• Power Sector Reforms

Enabling Infrastructure
The State Government is committed to support the investors & provide them a hassle free atmosphere in the Government machinery. The state has taken several initiatives to promote investments in the state by creating enabling infrastructure. Some of the key initiatives are highlighted below.
• A Special Economic Zone at Indore is being established in 1038 hectares of land with the investment of US$ 222 million, has become operational.
• Eight IIDs (Integrated Infrastructure Development Centre) are being setup at Nandantola, Nimrani, Jagga Khedi, Lamtara, Naogaon, Sindiya, Pratappura, Jaderua
• As many as 165 Industrial Areas with basic infrastructure facilities are functional.

Investment Highlights
• 217 proposals of foreign direct investment with an investment of US$ 1.3 billion are cleared by GOI for M.P.
• 207 letter of Intent with a proposed investment of US$ 804 million are cleared by GOI for M.P.
• 1978 Industrial Entrepreneurs Memorandum have been issued by GOI in favour of industrial groups who have shown interest to invest in M.P. with a proposed investment of US$ 14.43 billion.

SEZ Advantage
The Madhya Pradesh Government has adopted the SEZ policy for developing Special Economic Zones in the state. The SEZs, earmarked as duty-free enclaves, aim at promoting rapid industrial development and employment generation. The approved policy regime includes:
• Exemption of all state and local taxes
• Exemption from stamp duty and registration fees
• Grant of labour, energy, environment, industrial health and safety related permits and approvals through a dedicated single window mechanism
• Exemption from electricity duty; cess and any other tax or levy on sale of electricity for self generated and purchased power.
• Expeditious process for land acquisition to set up SEZs

Thrust Areas:
Industry in Madhya Pradesh is largely resource-driven, leveraging the state's natural wealth in the form of limestone, coal, soya, cotton, bauxite, iron-ore, silica etc. Therefore the state has a strong industrial base in sectors like textile, cement, steel, soya processing and optical fibers.
However, there have been a few exceptions to the resource driven industrialization and the State as a result of its aggressive incentive policies and strong solicitation/facilitation is developing into a strong base in the Auto, auto ancillary and textile sectors.
Substantial opportunity would emerge in following sectors.
• Cement • Auto & Auto Components • Textiles & Apparels
• Pharmaceuticals • Engineering & Electrical Equipment • Chemicals