Industrial Scenario of Madhya Pradesh
Industrial Scenario of Madhya Pradesh
Madhya Pradesh, a state in the heart of India is the 2
The state government has made an investment of more than $15.4 billion in support infrastructure in the last five years. The state has good connectivity to large markets and major metro cities such as New Delhi, Mumbai, Ahmedabad, Hyderabad and Kolkata.
MP possesses a road network of 160,000 KM, 455 trains passes through the state daily besides its air connectivity with major tier 1 cities in the country. To overcome the problem of land-lockedness, State has established 6 Inland Container Depots (ICDs).
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S. NO. | FINANCIAL YEAR | NO. OF UNITS | INVESTMENT IN CRORES – INR | EMPLOYMENT |
1 | 2011-2012 | 8 | 13,616.1 (136.1 billion) | 3, 507 |
2 | 2012-2013 | 13 | 1,011.46 (10.1 billion) | 2, 406 |
3 | 2013-2014 | 20 | 12,978 (12.9 billion) | 6, 190 |
4 | 2014-2015 | 21 | 5,974 (59.7 billion) | 7, 324 |
5 | 2015-2016 | 15 | 1,510.8 (15.1 billion) | 2, 664 |
TOTAL | 77 | 35,090.36 (340.9 billion) | 22, 091 |
Data from nddb.org
Prominent industrial hubs such as Mandideep, Pithampur, Dewas, Malanpur and Pilukhedi have witnessed significant growth in export business. The export business of Pithampur SEZ in the state was estimated at INR 4,000 crores (40 billion) in the year 2014-15 and INR 4,950 crores (49.5 billion) in the year 2015-16.
SEZ: Madhya Pradesh has India's 1st green-field SEZ in Pithampur which covers total area of 1,114 Hectare and is located 35 km from the city of Indore. A total of 49 industrial units have been established in Pithampur while 6 are upcoming. Total investment made in Pithampur SEZ is approximately INR 4,190 crores (41.9 billion), export business done till last year was approximately INR 12,300 crores (123 billion) and SEZ generated an employment of around 16,000.
Export Infrastructure in the state has been promoted thorough various schemes like Assistance to States for Infrastructure Development of Exports scheme (ASIDE) and Trade Infrastructure for Export Scheme (TIES). This has led to infrastructure development of parks and corridors like Pithampur Auto Cluster, water supply project in Dewas, Pithampur-Dhar- Mhow and Ratlam - Nagda as mega industrial region, Dewas-Shajapur and Neemuch-Nayagaon etc.
With continuous efforts of the State government, 2,630 intentions for setting of various industries were received by GoMP from October 2014 to October 2016 amounting to INR 5,62,847 crores (5628.4 billion). Out of these, 397 projects amounting to INR 1,37,855 crores (1378.5 billion) are under various stages of production and 127 projects with more than 10,000 crore – INR 10,000 crore (100 billion) investment have achieved commercial production.
To encourage investments and bring transparency, the State Government introduced a number of new/amended policies. IT Policy 2016, Tourism Policy 2016, Healthcare Policy 2016, Technical Education and Skill Development Policy 2012, Warehousing and Logistics Policy 2012, Wind Power and Solar Power Policy, Industrial Facilitation Act 2008 and Madhya Pradesh Land and Building Management Policy 2009 have been issues, Industry promotion Policy 2014 has been revised 2017 amendment has been introduced.
State Government has passed Madhya Pradesh State Investment Facilitation Act 2008 to simplify the rules and give clearances to various projects coming up in the State. Under the provisions of this Act the following empowered committees have been constituted for facilitation of new investment by simplifying the regulatory frame work, reducing procedural requirements and rationalizing documentation and to provide for friendly environment to an investor in the State.
- Apex Level Investment Promotion Empowered Committee headed by Chief Minister of State for Mega Project.
- State Level Investment Empowered Committee headed by Industry Minister.
- District Level Investment Empowered Committee headed by Collector of the concerned district.
Beside these committees State Government has developed a single table concept by the constituting Project Clearance and Implementation Board headed by the Chief Secretary to given clearance to the projects coming up in the State.
Under the provision of Madhya Pradesh Investment Facilitation Act 2008 Combined Application Form (CAF) for all necessary clearance/approvals has also been introduced. Investment proposals under the provisions of above Act are disposed of in specified time limit with the special focus on self-certification.
A fast track facilitation and escort service for common application filling pertaining the following departments
- Revenue
- Commercial taxes
- Labour
- Energy
- Housing and Environment
- Urban Administration and Development
- Panchayat and Rural Development
- Food and Drug Administration
The Empowered Apex Level Committee is headed by the Chief Minister. The minister for Commerce, Industry and Employment, Vice Chairman, Minister for Finance, Minister for Commercial Tax and Chief Secretary are the Members of the committee. This committee has the powers at par with that of cabinet committee on Economic Affairs. Obtaining customized economic assistance package from empowered committee.
State Government has constituted Project Clearance and Implementation Board (PCIB) under the Chairmanship of Chief Secretary in which 'in-principle' sanctions are given for projects related to industries, services and infrastructure and the problems are solved regarding implementation of the projects. In this Committee, Principal Secretaries/Secretaries of related departments is members. PCIB has the powers of allotment of barren land, approval and land allotment for tourism related projects and to recommend the proposals of SEZ to the Board of Approvals, Government of India. The Board is scheduled to meet twice a month.
State government has revised its Industrial promotion policy Post GST Implementation by the central government. Under earlier policy industries were being offered exemption and subsidy on CST, VAT and Entry fee whereas under new policy incentives have been de-linked from tax. Now, large industries will be incentivised 10% to 40% of the capital investment they make Plant & Machinery.
Madhya Pradesh has emerged as a major investment destination with presence of major industries.
Automobile and Engineering










Agri-business Food Processing







IT and ITES




Pharmaceuticals






Renewable Energy






Textile




Madhya Pradesh has India's 1st green-field SEZ in Pithampur which covers total area of 1,114 Hectare and is located 35 km from the city of Indore. A total of 49 industrial units have been established in Pithampur while 6 are upcoming. Total investment made in Pithampur SEZ is approximately INR 4,190 crores (41.9 billion), export business done till last year from the SEZ was approximately INR 12,300 crores (123 billion) and total employment generated is around 16,000.
Apart from Pithampur SEZ state has 4 IT SEZ, one Government's Crystal IT Park in Indore and three private operated SEZs - Infosys, TCS and Impetus, all in Indore. One more multi-purpose SEZ is proposed in Chhindwara.
Madhya Pradesh government has worked diligently to make investments for improvement of industrial infrastructure in the state. This has resulted in development of industrial corridors such as Bhopal-Indore, Bhopal-Bina, Jabalpur-Katni- Satni-Singrauli, Morena-Gwalior- Shivpuri-Guna and various sector specific parks in the state. Some of the major infrastructure development projects under taken by government are following:
- Special Economic Zone, Pithampur
- Japanese Industrial Township, Pithampur
- SEFEAN Industrial Township, Pithampur
- Crystal IT Park, Indore
- Plastic Park in Tamot and Gwalior
- Industrial Areas in Kiratpur, Mohasa, Shivpuri and Sitapur
- Vikram Udyogpuri, Ujjain
- Smart Industrial Park, Padora, Shivpuri
- Integrated Industrial Township, Polaykalan
Investment Promotion Assistance: Tax delinked investment assistance ranging from INR 4 crore ( 40 million) to INR 270 crores (2.7 billion) based on the amount of investment in plant and machinery, with 1.5 times incentive for food processing industry. Policy is applicable for industry with commencement of production from 1st April 2018 to 31st March 2022
Other Key Highlights of GoMP Industrial Promotion Policy:
- Mandi Fee Exemption is provided for food processing industry
- Interest Subsidy for Textile Industry : 5% to 7%
- Electricity Duty Exemption : 5 to 10 years for HT connection by a DISCOM
- Rebate on Power tariff : INR 1 per unit for a period of 5 years
- Green Industrialization Assistance
- Assistance to Industrial Parks : Maximum of INR 5 Crore
- Infrastructure Development Assistance : 50% assistance or INR 1 Crore subject to a maximum of INR 3 crore for developing power, water & road infrastructure, on private land or undeveloped government land