MADHYA PRADESH THE LAND OF DIAMONDS - February 2018 - IBEF

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MADHYA PRADESH THE LAND OF DIAMONDS - February 2018 - IBEF
MADHYA PRADESH
 THE LAND OF DIAMONDS

For updated information, please visit www.ibef.org   February 2018
MADHYA PRADESH THE LAND OF DIAMONDS - February 2018 - IBEF
Table of Content

   Executive Summary……………….….…….3

   Advantage State…………………..….……..4

   Vision 2018…………………………………..5

   Madhya Pradesh – An Introduction….…....6

   Budget 2016-17…………………….....……17

   Business Opportunities .............................41

   Doing Business in Madhya Pradesh......…71

   State Acts & Policies…...…...................…72
MADHYA PRADESH THE LAND OF DIAMONDS - February 2018 - IBEF
EXECUTIVE SUMMARY

                                                 GSDP of Madhya Pradesh grew at a compound annual growth rate (CAGR) of 15.21% between FY12 and
     Strong economy
                                                  FY17.

                                                 The state is rich in natural resources: fuels, minerals, agriculture & biodiversity.

                                                 Madhya Pradesh has ample reserves of coal & coal-bed methane (8.38% of India’s total coal reserves & 218.04
     Rich in natural resources                    BCM of methane).

                                                 The state has the largest reserves of diamond & copper in India.

                                                 Madhya Pradesh has significant reserves of limestone, manganese & dolomite.

                                                 Madhya Pradesh boasts of rich ancient cultural & religious heritage.
     Potential for tourism
                                                 Due to a thick forest cover, the state has immense potential for wild life, adventure & eco-tourism.

                                                 Due to its centralised location, Madhya Pradesh has excellent connectivity. Many FMCG companies have
                                                  moved their warehouses here to save on logistics expenses.

      Infrastructure support                     Upcoming theme based SEZs near Jabalpur, industry parks in Indore & food parks at multiple locations aim
                                                  to promote sectoral growth.

                                                 MP is emerging as a solar power hub with an installed solar capacity of 1.14 GW as of October 2017.

    Source: Directorate of Economics and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas, MNRE

3        MADHYA PRADESH                                                                                               For updated information, please visit www.ibef.org
MADHYA PRADESH THE LAND OF DIAMONDS - February 2018 - IBEF
ADVANTAGE MADHYA PRADESH

                            Strategically located business hub                                                    Attractive investment avenues
            The state is centrally located in India. Major consumer goods multinationals      With around 33% of the region under forests, Madhya Pradesh has an
             are situated in Madhya Pradesh in order to access major consumer markets           enormous potential for drug, wood & agro-based commercial enterprises.
             & metro urban communities like New Delhi (740 km1), Mumbai (780 km1),              Ideal soil & climatic conditions have made it a primary producer of coarse
             Kolkata (1,350 km1) & Chennai (1,435 km1)                                          cereals, oilseeds & soybean in India.
                                                                                               The cluster-based advancement methodology promotes investments in
            Geographical proximity with the automotive hub of NCR has favorably
                                                                                                automotive, textiles & biotechnology.
             impacted Madhya Pradesh’s auto ancillary industry. The state’s well
                                                                                               Plentiful limestone & coal reserves give development avenues for the
             developed automotive cluster is now home to around 30 auto component &
                                                                                                cement industry.
             ancillary units.
                                                                                               A rich cultural heritage, scenic beauty & wildlife sanctuaries offer a
                                                                                                promising tourism industry. Indore is all set to be the new IT capital with
                                                                                                TCS & Infosys opening their offices.
                                                                                           
                                                                                     Advantage
                                                                                      Madhya
                                                                                      Pradesh
                                      Rich resource pool                                                         Policy and infrastructure support
            Madhya Pradesh adds around 270,000 graduates to the workforce each                Madhya Pradesh offers distinctive monetary & strategy/policy incentives for
             year, of which around 90,000 have technical skills. At labour costs of US$         organisations under the Industrial Promotion Policy-2010 & Action Plan,
             3.7 per day, the state has a significant cost advantage over metros.               other than strategies/ policies for IT, biotechnology, tourism & SEZs. To pull
                                                                                                in investors and promote entrepreneurs, the state government has selected
            The state houses some of the country’s most reputed institutes including
                                                                                                TRIFAC, an agency that encourages a single window system, for speedy
             Indian Institute of Management, Indian Institute of Foreign Management &
                                                                                                approvals of different clearances & consents.
             Indian Institute of Technology.
                                                                                               The state government has made some well-planned infrastructure
                                                                                                investments for roads & railroad systems. Government offers various
                                                                                                subsidies under ‘Industrial Investment Promotion Assistance (IIPA) under
                                                                                                2014 Schemes’ for investment in development of road, electrification,
                                                                                                water, industrial parks, etc.

    1   From Bhopal

4            MADHYA PRADESH                                                                                      For updated information, please visit www.ibef.org
MADHYA PRADESH THE LAND OF DIAMONDS - February 2018 - IBEF
MADHYA PRADESH VISION

                                                            Develop the transportation                  Skill development by expanding
                                                             network to enhance rural                     training infrastructure & capacity to
                                                             connectivity                                 aid 1 million youth in attaining
                                                                                                          wages & self employment
                                                            Reform the institutional
                                                             machinery for creating public
                                                             transport facilities

                       Enhance the ease of doing
                        business for the benefit of                                                      Skill                                  Improve civic infrastructure,
                        investors                                                Transport           development                                 including public & household
                                                                                                                                                 sanitation facilities
                       Attract higher investments in
                        manufacturing, services &                                                                                               Expand availability of affordable
                                                                  Investment
                        labour intensive sectors                                                                      Housing                    housing
                                                                   promotion
                                                                                             Vision
                      Make the state a world class                 Tourism                                        Environment                   Promote social & agro forestry
                       tourist destination                                                                                                       Revitalise ground water
                      Promote religious, adventure &                                                                                             resources
                       heritage tourism & attract private                        Agriculture     Infrastructure                                  Private sector participation in
                       investment                                                                                                                 maintaining waste disposal &
                                                                                                                                                  water conservation

                                                           Expand the outreach of agriculture          Connect all villages through
                                                            technology & irrigation to remote            world class highways
                                                            farms.                                      To be a leader in renewable
                                                           Promote farm level diversification           energy & green technology
                                                            and value addition.                         Keep the state power surplus by
                                                                                                         addition to the power generation
                                                                                                         capacity

    Source: Government of Madhya Pradesh

5        MADHYA PRADESH                                                                                                     For updated information, please visit www.ibef.org
MADHYA PRADESH THE LAND OF DIAMONDS - February 2018 - IBEF
MADHYA PRADESH FACT FILE

                                                                                                There are 11 agro-climatic conditions and a variety of soils available
                                                                                                 in the state to support cultivation of a wide range of crops.

                                                                                               Parameters                                      Madhya Pradesh

                                                                                               Capital                                               Bhopal
                                                                                               Geographical area (sq km)                            308,000
                                                                                               Administrative districts (No)                           51
                                                                                               Population density (persons per sq km)                 236
                                                                                               Total population (million)                             72.6
                                                                                                 Male population (million)                            37.6
                                                                                                 Female population (million)                          35.0
                                                                                               Sex ratio (females per 1,000 males)                    931
      Madhya Pradesh is located in central India. The state is surrounded
                                                                                               Literacy rate (%)                                      70.6
       by Uttar Pradesh in North, Chhattisgarh in East, Maharashtra in
       South, Gujarat and Rajasthan in west.

      The most commonly spoken language of the state is Hindi. English
       and Marathi are the other languages used.

      Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of the key
       cities of the state.

    Source: Government of Madhya Pradesh website, National Informatics Centre Madhya Pradesh

6        MADHYA PRADESH                                                                                            For updated information, please visit www.ibef.org
MADHYA PRADESH IN FIGURES … (1/2)

    Parameter                                     Madhya Pradesh    All states      Source

    Economy                                          2016-17         2016-17

                                                                                    Aranca Estimates based on “Advanced Estimates”
       GSDP as a percentage of all states’ GSDP        4.20           100.0         provided by Directorate of Economics and
                                                                                    Statistics of Madhya Pradesh

                                                                                    Aranca Estimates based on “Advanced Estimates”
       GSDP growth rate (%)                           17.74           11.52         provided by Directorate of Economics and
                                                                                    Statistics of Madhya Pradesh

                                                                                    Aranca Estimates based on “Advanced Estimates”
       Per capita GSDP (US$)                         1,261.89          NA           provided by Directorate of Economics and
                                                                                    Statistics of Madhya Pradesh

    Physical Infrastructure

       Installed power capacity (MW)                 20,119.32      334,399.83      Central Electricity Authority, as of January 2018

                                                                                    Telecom Regulatory Authority of India, as of
       Wireless subscribers (No)                    73,099,362     1,167,435,645
                                                                                    December 2017

                                                                                    Telecom Regulatory Authority of India, as of
       Internet subscribers (No)                    21,830,000     429,230,000
                                                                                    September 2017

                                                                                    NHAI & Roads and Building Department, as of
       National Highway length (km)                   7,854          115,435
                                                                                    June 2017

       Airports (No)                                    5              125          Airports Authority of India

7      MADHYA PRADESH                                                              For updated information, please visit www.ibef.org
MADHYA PRADESH IN FIGURES … (2/2)

      Parameter                                                       Madhya Pradesh                  All states             Source

      Social Indicators

          Literacy rate (%)                                                  70.6                        73.0                Census 2011

          Birth rate (per 1,000 population)                                  25.1                        20.4                SRS Bulletin

      Investments

                                                                                                                             Department of Industrial Policy & Promotion, From
          FDI equity inflows (US$ billion)                                   1.391                      367.93
                                                                                                                             April 2000 to December 2017

      Industrial Infrastructure

                                                                                                                             DEA, Ministry of Finance, Government of India,
          PPP projects completed & operational (No)                           164                       1,534
                                                                                                                             February 2018
                                                                                                                             Ministry of Commerce & Industry, Department of
          Operating SEZs (No)                                                  3                          222
                                                                                                                             Commerce, December 2017

    1Including   Chhattisgarh PPP: Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

8         MADHYA PRADESH                                                                                                For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – GSDP

      At current prices, the gross state domestic product (GSDP) of                              GSDP ofVisakhapatnam
                                                                                                          Madhya Pradesh
                                                                                                                       port
                                                                                                                         at traffic
                                                                                                                             current(million
                                                                                                                                      pricestonnes)
                                                                                                                                             (in US$ billion)
       Madhya Pradesh for 2016-17 stood at US$ 99.41 billion.

      Between FY12 and FY17, GSDP of the state grew at a CAGR of                                                              CAGR 15.21 %
       15.21%.

                                                                                                                                                              99.41
                                                                                                                                                    84.43
                                                                                                                                          74.81
                                                                                                                                67.94
                                                                                                                     59.12
                                                                                                          48.98
                                                                                                          2011-12

                                                                                                                     2012-13

                                                                                                                                2013-14

                                                                                                                                          2014-15

                                                                                                                                                    2015-16

                                                                                                                                                              2016-17
    Note: US$ 1 = Rs 64.4273
    Source: Advanced Estimates” provided by Directorate of Economics and Statistics, Government of Madhya Pradesh

9        MADHYA PRADESH                                                                                             For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – NSDP

      The net state domestic product (NSDP) of Madhya Pradesh was                            NSDP ofVisakhapatnam
                                                                                                      Madhya Pradesh
                                                                                                                   port
                                                                                                                     at traffic
                                                                                                                         current(million
                                                                                                                                  pricestonnes)
                                                                                                                                         (in US$ billion)
       about US$ 88.77 billion in 2016-17.

      Between FY12 and FY17, state’s NSDP grew at a CAGR of about                                                          CAGR 15.16 %
       15.16%.

                                                                                                                                                             88.77
                                                                                                                                                   75.12
                                                                                                                                         66.73
                                                                                                                               60.75
                                                                                                                  51.83
                                                                                                      43.83
                                                                                                      2011-12

                                                                                                                  2012-13

                                                                                                                               2013-14

                                                                                                                                         2014-15

                                                                                                                                                   2015-16

                                                                                                                                                             2016-17
 Note: US$ 1 = Rs 64.4273
 Source: Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh, Government of Madhya Pradesh

10     MADHYA PRADESH                                                                                            For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – PER CAPITA GSDP

      The state’s per capita GSDP* in 2016-17 was US$ 1,261.89 in                            Per capitaVisakhapatnam
                                                                                                         GSDP of Madhya
                                                                                                                      port
                                                                                                                        Pradesh
                                                                                                                           traffic (million
                                                                                                                                   at current
                                                                                                                                            tonnes)
                                                                                                                                              prices (in US$)
       comparison with US$ 668.68 in 2005-06.

      Per capita NSDP in the state increased at a CAGR of 13.54%                                                               CAGR 13.54 %
       between FY12 and FY17.

                                                                                                                                                                      1261.89
                                                                                                                                                            1087.47
                                                                                                                                               977.68
                                                                                                                                  900.95
                                                                                                                     795.52
                                                                                                         668.69
                                                                                                         2011-12

                                                                                                                     2012-13

                                                                                                                                  2013-14

                                                                                                                                               2014-15

                                                                                                                                                            2015-16

                                                                                                                                                                      2016-17
 Note: Per Capita GSDP^ - calculated using GSDP in million US$/population in million, Population estimated using NSDP and per capita NSDP figures provided by MOSPI

11     MADHYA PRADESH                                                                                               For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – PER CAPITA NSDP

      The state’s per capita NSDP* in 2016-17 was US$ 1,126.83 in                             Per capitaVisakhapatnam
                                                                                                          GSDP of Madhya
                                                                                                                       port
                                                                                                                         Pradesh
                                                                                                                            traffic (million
                                                                                                                                    at current
                                                                                                                                             tonnes)
                                                                                                                                               prices (in US$)
       comparison with US$ 598.35 in 2011-12.

      Per capita GSDP of the state increased at a CAGR of 13.50%                                                               CAGR 13.50 %
       between FY12 and FY17.

                                                                                                                                                                      1126.83
                                                                                                                                                            967.51
                                                                                                                                               872.03
                                                                                                                                  805.52
                                                                                                                      697.39
                                                                                                         598.36
                                                                                                         2011-12

                                                                                                                      2012-13

                                                                                                                                  2013-14

                                                                                                                                               2014-15

                                                                                                                                                            2015-16

                                                                                                                                                                      2016-17
 Note: Per Capita NSDP^ - calculated using NSDP in million US$/population in million, Population estimated using NSDP and per capita NSDP figures provided by MOSPI

12     MADHYA PRADESH                                                                                               For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – PERCENTAGE
                  DISTRIBUTION OF GSVA

      In 2016-17, the primary sector contributed 41.43% to the state’s          Visakhapatnam
                                                                                        GVA composition
                                                                                               port trafficby
                                                                                                            (million
                                                                                                              sectortonnes)
       GSVA at current prices, followed by tertiary sector with a contribution
       of 38.80% & secondary sector contributing 19.77%.

      At a CAGR of 19.7%, the primary sector witnessed the fastest                   39.06%         CAGR            38.80%
       growth among the three sectors, between FY12 and FY17.

      The tertiary sector expanded at a CAGR of 14.7% between FY12
                                                                                                     14.7%
       and FY17. Growth has been driven by trade, hotels, real estate,
       finance, insurance, transport, communications & other services.

      The secondary sector expanded at a CAGR of 7.9% between FY12
                                                                                      27.09%                         19.77%
       and FY17driven by manufacturing, electricity, gas & water supply &
       construction sectors.                                                                          7.9%

                                                                                                                     41.43%

                                                                                      33.85%

                                                                                                     19.7%

                                                                                      2011-12                        2016-17

                                                                                 Primary Sector   Secondary Sector    Tertiary Sector

 Source: MOSPI

13      MADHYA PRADESH                                                                  For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – AGRICULTURAL
                   PRODUCTION…(1/2)

      Agriculture is the main source of livelihood for the people of the                     Crop                          Annual production – 2016-17 (‘000 MT)
       Madhya Pradesh. In 2016-17, the state recorded utilisation of
                                                                                              Wheat                                        17,939.3
       1,741.79 thousand hectares of land for production of horticulture
       crops.                                                                                 Fruits                                       5,937.04

      Wheat, soyabean, gram, sugarcane, rice, maize, cotton, rapeseed,                       Vegetables                                  16,664.66
       mustard & arhar are the major crops of the state. In 2016-17, total
                                                                                              Sugarcane                                     4,730.0
       food grain production in the state stood at 32.98 million metric
       tonnes.                                                                                Onion                                         2,256

      In 2016-17, total pulses production in the state stood at around 6.25                  Rice                                          4,226.8
       million tonnes.                                                                        Food grains                                  32,983.0
      Madhya Pradesh is the largest producer of pulses, oilseeds                             Spices                                        690.80
       soyabean and gram in the country. The state is the 2nd highest
       producer of wheat, masoor & mustard across India. It is one of the                     Honey                                          1.87
       leading producers of garlic & coriander. The production of wheat,                      Coarse cereals                                4,567.5
       cotton, baajra, corn, gram, soyabean, mustard, groundnut, paddy,
       jowar & corn in the state, is above the national average.                              Total pulses                                  6,249.4

      US$ 674.14 million were allocated to farmers’ welfare and agriculture
       development in state budget 2017-18.

 Note: * 2nd advance estimates for 2016-17, US$1 = Rs 64.4273 for 2017-18 figures
 Source: MP State Facts Profile Department of Agriculture and Cooperation, National Horticulture Board, Aranca Research

14      MADHYA PRADESH                                                                                               For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – AGRICULTURAL
                  PRODUCTION…(2/2)

      In August 2017, the state government launched ‘Bhavantar Bhugtan Yojana’ or ‘Price Deficit Financing Scheme’ will hedge price risks in
       agriculture. Under the scheme, farmers will be compensated if they have to sell the notified crops at distressed prices which are below the
       Minimum Support Price (MSP) set by the Union Government.

      In order to overcome the drawbacks of National Agricultural insurance Scheme, a new scheme – Prime Minister Crop Insurance Scheme was
       announced by the Prime Minister, which would be effective from 2016. As per budget 2017-18, provision of US$ 310 million has been made under
       Prime Minister Crop Insurance Scheme for agriculture.

      Moreover, for agricultural soil, water conservation as well as agricultural research & education, the state government has allocated an amount of
       US$ 373.96 million as per the budget 2016-17.

      During 2017-18, US$ 1.53 billion would be sanctioned by the state government for irrigation schemes and US$ 21 million for micro irrigation in the
       state. Moreover, an allocation of US$ 118.8 million was made by the state government for horticulture & food processing sector.

 Source: State Budget

15      MADHYA PRADESH                                                                              For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – FDI INFLOWS &
                     INVESTMENTS

       According to the Department of Industrial Policy & Promotion (DIPP),      FDI equity inflows1, 2008-09
                                                                                       Visakhapatnam    port traffic
                                                                                                                to 2017-18*(US$
                                                                                                                     (million tonnes)
                                                                                                                                  million)
        cumulative FDI inflows*, from April 2000 to December 2017, totaled
        to US$ 1.39 billion.

       Power generation & manufacturing were the key sectors which
        attracted the majority share of FDI inflow during 2014-15. In addition,

                                                                                                       451
        the investments in real estate & services are also gaining
        momentum.

       With a capital investment of US$ 488.62 million Government of
        Madhya Pradesh approved 6 projects in January 2017.

                                                                                                                           220
                                                                                                                 123

                                                                                                                                     119

                                                                                                                                               100

                                                                                                                                                         80

                                                                                                                                                                   76

                                                                                                                                                                             20
                                                                                            54
                                                                                  44
                                                                                  2008-09

                                                                                            2009-10

                                                                                                       2010-11

                                                                                                                 2011-12

                                                                                                                           2012-13

                                                                                                                                     2013-14

                                                                                                                                               2014-15

                                                                                                                                                                   2016-17

                                                                                                                                                                             2017-18*
                                                                                                                                                         2015-16
     Note: * As of December 2017
 Source: Department Of Industrial Policy & Promotion1 Including Chhattisgarh

16       MADHYA PRADESH                                                                               For updated information, please visit www.ibef.org
STATE BUDGET 2017-18

     Total budgeted expenditure in 2017-18 is estimated to be US$ 26.38 billion.

     Department                                                                    Budget 2017-18 (US$ million)

     School Education                                                                         3,084.56

     Energy                                                                                   2,607.9

     Rural Development                                                                        2,233,21

     Urban Development and Environment                                                        1,783.25

     Public Works                                                                             1,331.11

 Note: US$ = Rs 64.4273
 Source: State Budget 2017-18

17      MADHYA PRADESH                                                             For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – ROADS

      Madhya Pradesh has national highways measuring 7,854* km. The                         Road type                                Road length (km) (2015)
       state also has 10,859 km of state highways.
                                                                                             National highways                                 7,854*
      US$ 926 million has been allocated for construction of roads and
                                                                                             State highways                                   10,859
       bridges in the state budget 2017-18.
                                                                                             Major district roads                             19,574
      Development of major roads in the state is managed by Madhya
       Pradesh Road Development Corporation Limited (MPRDC), which                           Village roads                                    24,209
       executes tasks taken up under Public–Private Partnership (PPP) &
                                                                                             Road length                                      59,835
       those supported by Asian Development Bank (ADB). As per the
       Department of Economic Affairs, the state had 131 government PPP
       projects in the roads sector at various stages of development.                         As per the state budget 2016-17, work on development of various
                                                                                               district roads had started in 2015-16 and the renovation of these
      Under Prime Minister Graamin Sadak Yojana, 3,960.561 km of roads
                                                                                               roads is expected to be completed over a span of three years.
       have been completed in the state as of February 2018.
                                                                                               However, for this purpose, the state government is trying to secure a
      For the development of various roads in the state, allocation of US$                    loan from ADB as well as new development banks.
       1.12 billion has been proposed by the state government
                                                                                              In November 2016, the New Development Bank created by BRICS
      As per budget 2017-18, provision of US$ 62.08 million under                             countries approved a loan of US$ 350 million for the development of
       Mukhyamantri Gram Sadak Yojana & that of US$ 28.86 million for                          major district roads in the state.
       State Rural Road Connectivity Scheme, have been made.

      In February 2017, the cabinet sanctioned the renovation of 10,000
       km of rural roads, under the Chief Minister's Rural Roads Scheme.

 Source: NHAI, Ministry of Road Transport & Highways, State Budget 2016-17, * - as of June 2017

18      MADHYA PRADESH                                                                                              For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – RAILWAYS

      Madhya Pradesh has around 4,954 km of railway lines & the state is
       connected to different states of the country through more than 425
       trains which travel on daily basis.
      In June 2017, Bhopal’s railway station Habibganj became the
       country’s first railway station to be redeveloped into an attractive
       commercial hub with hotels, offices & shops under a public-private
       partnership within the next three years. The project for maintenance
       & operations has been given to Bansal Group for 8 years.
      In December 2016, Madhya Pradesh Cabinet approved the detailed
       project reports (DPRs) of the Metro rail projects for Bhopal & Indore,
       costing US$2.12 billion. In September 2017, a joint venture between
       DB Engineering & Consulting GmbH, Geodata Engineering S.p.A.
       and Louis Berger Group won the contract for these two projects.                                         Source: Maps of India

      The railway network in Madhya Pradesh primarily falls under the
       West-Central Railways, which was formed in 2002 and is
       headquartered in Jabalpur. Part of the state is also covered by
       Central & Western Railways.
      Being centrally located, the railway network in the state assumes
       great significance. Madhya Pradesh’s capital, Bhopal is one of the
       foremost railway junctions in the country, as 220 trains travel
       through the capital alone.
      Mineral & agro-based industries in Madhya Pradesh are highly
       dependent on the railway network of the state. It supports these
       industries by transporting bauxite, limestone, dolomite, clinker,
       fertilizer & de-oiled cake.

19      MADHYA PRADESH                                                          For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – AIRPORTS

      Madhya Pradesh has 5 operating airports at Jabalpur, Bhopal,                 Airport indicators in Madhya Pradesh
       Indore, Gwalior & Khajuraho.
                                                                                    No. of passengers
      Indore & Bhopal airports are the busiest airports in the state. In
       December 2017, passenger traffic at Indore airport reached 211,699
                                                                                    Airport                    2016-17                  2017-18*
       passengers with overall aircraft movement of 1,682 aircrafts. For the
       same month, passenger traffic at Bhopal airport was 64,572                   Indore                    1,784,073                 1,654,958
       passengers with overall aircraft movement of 646 aircrafts.
                                                                                    Bhopal                     676,015                   529,265
      Both Indore & Bhopal airports have strong cargo handling capacity.
       In December 2017, Indore airport handled 917 tonnes of cargo,
       whereas Bhopal airport handled 92 tonnes of cargo. Modernisation             Aircraft movement
       work of Bhopal & Indore airports has also been completed.
                                                                                    Airport                    2016-17                  2017-18*

                                                                                    Indore                     14,396                    13,679

                                                                                    Bhopal                      6,949                    5,320

                                                                                    Freight (in tonnes)

                                                                                    Airport                    2016-17                  2017-18*

                                                                                    Indore                      7,668                     8,229

                                                                                    Bhopal                       904                       868

 Source: Airports Authority of India, *for the period April 2017 to December 2017

20      MADHYA PRADESH                                                                               For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – POWER … (1/3)

      In January 2018, Madhya Pradesh had total installed power                                              Installed power capacity (MW)
       generation capacity of 20,119.32 MW, comprising 5,867.62 MW
       under state utilities, 5,070.70 MW under central utilities & 9,181 MW
       under the private sector.

                                                                                                                                                                     20,119
                                                                                                                                                            19,766
                                                                                                                                                  18,571
      Of the total installed power generation capacity, 12,731.70 MW was

                                                                                                                                       15,845
                                                                                                                              14,259
       contributed by thermal power, 3,223.66 MW was contributed by

                                                                                                                   12,902
       hydropower, 273.00 MW was contributed by nuclear power &

                                                                                                      9,351
                                                                                            8,574
       renewable power contributed 3,890.96 MW.

      Madhya Pradesh is on its way to become a solar power hub, with
       114 projects currently. As on November 2017, Madhya Pradesh have
       11 Small Hydro Power Projects with the capacity of 86.16 MW.
                                                                               Source: Central Electricity Authority
      The total budget allocation for the energy sector in the state is
       estimated to be US$ 2.6 billion during 2017-18.                             Break-up of installed capacity by source of power generation
                                                                                                            (2017-18*)
      In May 2017, 2 new indigenous nuclear power reactors of 700 MW
       capacity each were approved by the Union Government. The                                                                             Thermal Power
       reactors will be built at Chutka in Madhya Pradesh.                                                    2%                            Hydropower
                                                                                                    19%
      In December 2017, foundation stone was laid for the world’s largest                                                                  Renewable Power
       ultra mega solar power plant at Gurh in Madhya Pradesh for an                                                                        Nuclear Power
       investment of Rs 4,500 crore (US$ 695.09 million), which will spread
       across 1,600 hectares of land and generate 750 MW of electricity.                      16%
                                                                                                                            63%

                                                                               Source: Central Electricity Authority; * - as of January 2018, (1) – Figures as of June 2017

21      MADHYA PRADESH                                                                                        For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – POWER … (2/3)

      Madhya Pradesh Power Generating Corporation Ltd. is a state             Segment                                 Company name
       owned company engaged in electricity generation.
                                                                                                          Madhya Pradesh Power Generating
                                                                               Power generation
      The power distribution business is being managed through 3                                          Corporation Limited
       government-controlled entities: Madhya Pradesh Poorv Kshetra
                                                                                                          Madhya Pradesh Poorv Kshetra Vidyut
       Vidyut Vitaran Company Ltd., Madhya Pradesh Paschim Kshetra
                                                                                                           Vitaran Company Limited (MPPoKVVCL)
       Vidyut Vitaran Company Ltd., & Madhya Pradesh Madhya Kshetra
       Vidyut Vitaran Company Ltd.                                                                        Madhya Pradesh Paschim Kshetra Vidyut
                                                                               Power distribution
                                                                                                           Vitaran Company Limited (MPPaKVVCL)
      Madhya Pradesh Power Transmission Company carries out intra-
       state transmission of electricity, State Transmission Utility & State                              Madhya Pradesh Madhya Kshetra Vidyut
       Load Dispatch Centre.                                                                               Vitaran Company Limited (MPMaKVVCL)
      Madhya Pradesh Power Trading Corporation Ltd. deals with power                                     Madhya Pradesh Power Transmission
                                                                               Power transmission
       trading & other related activities.                                                                 Corporation Limited
                                                                                                          Madhya Pradesh Power Trading Corporation
                                                                               Power trading
                                                                                                           Limited

                                                                               Distributor                               Area covered

                                                                               MPPoKVVCL                   Jabalpur, Sagar, Shahdol and Rewa

                                                                               MPPaKVVCL                   Indore and Ujjain

                                                                               MPMaKVVCL                   Bhopal, Hoshangabad, Gwalior and Chambal

                                                                               MPPoKVVCL                   Jabalpur, Sagar, Shahdol and Rewa

                                                                               MPPaKVVCL                   Indore and Ujjain

 Source: Energy Department-Government Of Madhya Pradesh

22      MADHYA PRADESH                                                                              For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – POWER … (3/3)

      Through the Atal Jyoti Abhiyaan, the state government aims to provide round-the-clock quality power supply.

      The scheme is currently operational in six districts, namely Jabalpur, Mandla, Shahdol, Umaria, Anooppur and Burhanpur.

      Under project name Vindhyachal, NTPC has commissioned the country’s largest power generation plant in the state. Unit-13 of Vindhyachal TPP-
       V, with capacity of 500 MW, was commissioned in August 2015. With this the total approved capacity of 4,760 MW was installed by the company.

      The coal based Sasan UMPP aims to build large capacities at low cost. The resultant generated power would be sold at low tariffs. In April 2015,
       the 3,960 MW Sasan ultra mega power project was fully commissioned in Madhya Pradesh. The project is being developed with an investment of
       US$ 4.21 billion. As of April 2016, the plant had achieved 100% PLF (plant load factor).

      In April 2017, the state government signed a project agreement with solar power companies for Rewa Ultra Mega Solar Park. The project is being
       led by Rewa Ultra Mega Solar Ltd. (RUMSL), a joint venture between the Solar Energy Corporation of India (SECI) and Madhya Pradesh Urja
       Vikas Nigam Limited (MPUVN). International Finance Corporation (IFC), a member of the World Bank Group, will mobilise US$ 550 million in
       private investment for the project.

23      MADHYA PRADESH                                                                             For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – TELECOM

      According to Telecom Regulatory Authority of India (TRAI), Madhya                      Telecom infrastructure - as of December 2017
       Pradesh (including Chhattisgarh) had nearly 73.10 million wireless
       subscribers & 0.98 million wireline subscribers, as of December                        Wireless subscribers                                 73,099,362
       2017.
                                                                                              Wire-line subscribers                                 978,193
      As of December 2017, teledensity (telephone connections per 100
                                                                                              Internet subscribers^                                21,830,000
       persons) in Madhya Pradesh was 69.69%.
                                                                                              Teledensity (in%)                                      69.69
      The state has been identified by Ministry of Home Affairs for
       provision of Telecom Connectivity in LWE affected areas. The
       scheme is being executed by BSNL.                                                      Some of the major telecom operators in Madhya Pradesh
      At the end of December 2017, 24,166,009 people have submitted                           Bharat Sanchar Nigam Limited (BSNL)
       requests for mobile number portability in the state.
                                                                                               Bharti Airtel
      The state has given consent for establishment of BharatNet/ National
                                                                                               Vodafone Essar
       Optical Fibre Network (NOFN) project. The project is planned to
       connect all gram panchayats through optical fibre, utilising existing                   Idea Cellular
       fibres of PSUs viz. BSNL, RailTel & Power Grid & laying incremental
                                                                                               Reliance Communications
       fibre wherever necessary to bridge the connectivity gap between
       gram panchayats (GPs) and blocks, for providing broadband                               Tata Teleservices
       connectivity.

  Note: ^ - as of September 2017
 Source: Telecom Regulatory Authority of India, Department of Telecommunications, *including Chhattisgarh

24      MADHYA PRADESH                                                                                            For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: URBAN
                  INFRASTRUCTURE … (1/3)

      Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 27 projects costing around US$ 418.65 million were sanctioned for the
       development of urban centers such as Bhopal, Indore, Jabalpur and Ujjain.

      Some of the key undertakings are in segments such as roads and flyovers, water supply, tempest-water drainage, sewerage, solid-waste
       management and mass rapid transport systems.

      The Asian Development Bank (ADB) has funded 16 ventures worth US$ 33.8 million for Bhopal in the regions of water supply, sewerage and
       sanitation, tempest-water drainage and solid-waste management. Of the 16 undertakings, two have been finished and others are at different
       phases of development.

      The state government has built the Madhya Pradesh Urban Infrastructure Fund (MPUIF) for the improvement of urban framework and the
       procurement of better administration in the state. MPUIF helps in sourcing funds for projects through various sources, for example capital markets,
       line of credits and GOI fund (e.g. JNNURM, UIDSSMT, PFDF, VGF, and RAY). The fund ensures cost administration and timely implementation of
       urban framework ventures.

      Under the Urban Infrastructure and Governance (UIG) program of JNNURM, five projects worth US$ 36.4 million covering cities such as Bhopal,
       Indore and Ujjain have been approved and are in the transition phase.

      Under the first phase of Chief Minister Infrastructure Development Scheme, work on development of roads, gardens, footpaths, street lights, etc.
       was completed in across 277 cities of the state during 2015-16.

      Under Swachh Bharat Mission, a total of 5,068 seats were constructed in around 145 thousand personal and public toilets of the state, as of 2015-
       16.

      In 2017 under Swachh Bharat Mission, Indore was declared the cleanest city whereas Bhopal was second out of approximately 500 cities.

      In 2015, Madhya Pradesh came up with set of programs and policies to make itself a manufacturing hub, with an aim to push for Make-in-Madhya
       Pradesh initiative with focus on MSMEs.

      In May 2017, the state government announced that it will build 2 million households over the next two years for the urban and rural poor. Each
       house will be built with US$ 4,462.29 in centre-state subsidy and US$ 2,974.86 in state supported financing.

 Source: Bhopal Municipal Corporation, NNURM, Ministry of Urban Development, Government of India

25      MADHYA PRADESH                                                                               For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: URBAN
                   INFRASTRUCTURE … (2/3)

      As per the budget 2016-17, following announcements were made for enhancement of urban infrastructure in the state:

        •   Allocation of US$ 1.63 billion was proposed by the state government for urban administration and development in the state.

        •   For the second phase of Chief Minister Infrastructure Development Scheme, the state government proposed an allocation of US$ 42.10 million.

        •   Under Affordable Housing in Partnership scheme, for each dwelling slum area, US$ 86 thousand was allocated by the central and the state
            government.

        •   Provided sanction for the construction of 634 community and 1,77,807 individual toilets under Mukhya Mantri Shahri Swacchata Mission.

        •   The promotion of e-Governance has been started in the urban region of the state by E-Nagar Palika Project. For increasing developmental
            activities in the state, a sum of US$ 1.09 billion will be provided by the government to the state.

        •   By 2018, the government is also aiming to provide 5,00,000 houses in different cities of the state, and allocated US$ 543.2 million under
            Pradhan Mantri Awas Yojna.

        •   Provided sanction for development of 60,000 houses for the urban poor by an allocation of US$ 248.8 million under urban development
            scheme. In addition to this, a sanction of US$ 139.5 million was also provided for 15,340 houses under Rajeev Awas Yojna.

        •   HDFC Bank is planning to set up 10 new branches in Madhya Pradesh as a part of its expansion plan. In 2016 the bank had 130 branches in
            MP, and 8-10 new branches are being planned to be opened in the state in current financial year.

        •   US$ 155 million was allocated to ‘Housing for All’ scheme in urban areas and USD 1.78 billion to Urban Administration and Development.

        •   The presence of numerous prominent technical, management and other professional institutes have made Madhya Pradesh an ideal
            destination for startups hub.

        •   Madhya Pradesh has aligned with the Government of India’s “Startup India Vision” by creating conducive innovative and technological
            entrepreneurial ecosystem through ‘MP Incubation & Startup Policy 2016’ to encourage and promote a Startup culture within the state.

        •   In the state budget of 2017-18, the government allocated US$ 123.7 million for self-employment schemes under Industries and Employment.

 Source: Budget 2016-17

26      MADHYA PRADESH                                                                               For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: URBAN
                   INFRASTRUCTURE … (3/3)

     Focus areas of urban development in Madhya Pradesh

                 Water supply                           Sewerage system                         Solid-waste management                                Others
        The average per capita water             In cities such as Indore, around           Indore and Ujjain generate                  Two projects worth US$ 75.6
         supply in major cities, such as           55% of the population is                    around 500 tonnes per day                    million were sanctioned
         Indore, is around 80 litres per           connected to a sewage                       (TPD) and 160 TPD of solid-                  between 2006-07 and 2009-10
         day.                                      network.                                    waste, respectively.                         for improvement of the
        Under the JNNURM, cities are             Under the JNNURM, the entire               Under the JNNURM, the entire                 drainage systems.
         being planned to achieve per              population in the cities will be            solid waste is expected to be               Seven projects worth around
         capita water supply of 135 litres         connected to the sewage                     collected and treated.                       US$ 139.5 million were
         per day between 2015 and                  network.                                   A project worth US$ 10.7                     sanctioned for improvement of
         2021.                                    Three projects worth US$ 100                million was sanctioned.                      the transport system.
        Sixty seven projects worth US$            million were sanctioned in                 Three solid waste management
         243.8 million were approved               2006-07 for sewage treatment                projects have been identified in
         between March 13 and March                under JNNURM.                               Dewas, Sagar and Katni.
         2014 and are in the transition
         phase for water supply under
         JNNURM.
        During 2015-16, the
         government proposed an outlay
         of US$ 355.87 million for
         improving rural & urban water
         supply under the Water Supply
         and Sanitation Scheme.

 Source: MP Trade & Investment Facilitation Corporation Ltd., JNNURM, Ministry of Urban Development, Government of India, Aranca Research

27       MADHYA PRADESH                                                                                            For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE
                   PARTNERSHIP PROJECTS … (1/2)

     Name of project                                       Sector               PPP type        Status      Project cost (US$ million)

     Road upgradation (Lebad-Jaora) Project      Build-Operate-Transfer (BOT)   Transport       64.30       Operation and maintenance stage

     Road Upgradation Project (Bankhlafata-
                                                        Not available           Transport        5.14       Operation and maintenance stage
     Kogawa-Borawa-Sarvardevala) Project

     Road upgradation (Jaora-Nayagaon)
                                                 Build-Operate-Transfer (BOT)   Transport       61.73       Operation and maintenance stage
     Project

     Road Upgradation Project (Bahari-              Design-Build-Finance-
                                                                                Transport       16.32       Operation and maintenance stage
     Hanumana) Project                            Operate-Transfer (DBFOT)

     Road Upgradation (Bhopal-Dewas)                Design-Build-Finance-
                                                                                Transport       65.21       Operation and maintenance stage
     Project                                      Operate-Transfer (DBFOT)

     Road Upgradation Project (Badwani-             Design-Build-Finance-
                                                                                Transport       15.89       Operation and maintenance stage
     Palsood-Sendhawa) Project                    Operate-Transfer (DBFOT)

     Road Upgradation Project (Ashok Nagar-      Build-Operate-Transfer (BOT)
                                                                                Transport       13.31       Operation and maintenance stage
     Vidisha) Project                                      Annuity

     Electricity Distribution Project (Ujjain)          Not available            Energy         10.70       Operation and maintenance stage

     Road Upgradation Project (Ashapur-             Build-Operate-Transfer
                                                                                Transport       17.28       Operation and maintenance stage
     Khalwa-Singhot) Project                               Annuity

     Dewas-Ujjain-Badnagar-Badnawar Road
                                                 Build-Operate-Transfer (BOT)   Transport        7.53       Operation and maintenance stage
     Project

     Road Upgradation Project (Alirajpur-        Build-Operate-Transfer (BOT)
                                                                                Transport        6.92       Operation and maintenance stage
     Jobat) Project                                        Annuity

 Source: Department of Economic Affairs

28      MADHYA PRADESH                                                                      For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE
                  PARTNERSHIP PROJECTS … (2/2)

     Name of project                                     Sector               PPP type        Status      Project cost (US$ million)
     Road Upgradation Project (Waraseoni-         Design-Build-Finance-
                                                                              Transport        6.50       Operation and maintenance stage
     Lalbarra) Project                          Operate-Transfer (DBFOT)
     Road Upgradation (Tyonda-Ganjbasoda)      Build-Operate-Transfer (BOT)
                                                                              Transport       22.32       Operation and maintenance stage
     Project                                             Annuity
     Road Upgradation Project (Umari-Phoop-       Design-Build-Finance-
                                                                              Transport       11.51       Operation and maintenance stage
     Pratapur) Project                          Operate-Transfer (DBFOT)
     Road Upgradation Project (Ujjain-Unhel-      Design-Build-Finance-
                                                                              Transport       28.89       Operation and maintenance stage
     Nagda-Ghiloda) Project                     Operate-Transfer (DBFOT)
     Road Upgradation Project (Ujjain-         Build-Operate-Transfer (BOT)
                                                                              Transport       10.79       Operation and maintenance stage
     Simhastha) Project                                  Annuity
     Road Upgradation (Gwalior-Bhind up to
                                               Build-Operate-Transfer (BOT)   Transport       45.85       Operation and maintenance stage
     UP Border) Project
     Road Upgradation Project (Uchera-            Design-Build-Finance-
                                                                              Transport       17.22       Operation and maintenance stage
     Nagod-Singhpur-Kalinnjer Road) Project     Operate-Transfer (DBFOT)
     Road Upgradation (Sheopur-Badora-         Build-Operate-Transfer (BOT)
                                                                              Transport        9.45       Operation and maintenance stage
     Khawajapur) Project                                 Annuity
     Road Upgradation Project (Tikamgarh-         Design-Build-Finance-
                                                                              Transport        4.49       Operation and maintenance stage
     Mehironi) Project                          Operate-Transfer (DBFOT)
     Road Upgradation (Dehgaon-Bamori)         Build-Operate-Transfer (BOT)
                                                                              Transport        5.51       Operation and maintenance stage
     Project                                             Annuity
     Road Upgradation Project (Tikamgarh-         Design-Build-Finance-
                                                                              Transport       15.69       Operation and maintenance stage
     Jatara-Palera-Nowgaon) Project             Operate-Transfer (DBFOT)

 Source: Department of Economic Affairs

29      MADHYA PRADESH                                                                    For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: SPECIAL ECONOMIC
                  ZONES (SEZs) … (1/2)

      The state has one operational SEZ with the name Crystal IT Park     Indore SEZ
       SEZ for IT & ITeS enabled services.

      The SEZ aims to provide an international, competitive and hassle-   Notified area                              1,113.72 hectares
       free environment for export-oriented production.                    Processing zone                              519.95 hectare
      It is exempted from custom duty on import of capital goods, raw     Operational                          26 industrial and 2 trading units
       material and spares, among others. No licence is required for
                                                                           Number of allotments                               123
       imports.
                                                                           Number of units operating                           42
      Central excise duty is exempted on procurement of capital goods,
       raw material and spares among others from the domestic market.      Investment under implementation         US$ 62.2 million (9 units)
       Barring a few sectors, 100% FDI in the manufacturing sector is      Exports (as of June 2017)                  US$ 214.54 million
       allowed through the automatic route.
                                                                           Some of the key companies in Indore SEZ
                                                                            SRF
                                                                            Flexituff
                                                                            India Nets
                                                                            New Tech Pipes
                                                                            Advance Enzyme Technology
                                                                            Ipca Laboratories
                                                                            Amulya Exports
                                                                            Emerald Tobacco
                                                                            Pratibha Synte

 Source: Ministry of Commerce & Industry

30      MADHYA PRADESH                                                                        For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: SPECIAL ECONOMIC
                  ZONES (SEZs) … (2/2)

      As of December 2017, the state had 10 formal approved SEZs that                       Industry                        Location             No of SEZs
       are proposed to be set up in Madhya Pradesh.
                                                                                             Formally approved SEZs as of December 2017
      Bhopal, Indore, Gwalior and Jabalpur are the major locations where
                                                                                                                     Indore, Gwalior, Jabalpur,
       SEZs have been approved. These SEZs have been proposed for                            IT/ITeS                                                   8
                                                                                                                              Bhopal
       IT/ITeS, mineral-based, agro-based and multi-products.
                                                                                             Gems and Jewellery                  Indore                1

                                                                                             Multi Product                 Chhindwara                  1

                                                                                             Notified SEZs as of December 2017

                                                                                             IT/ITeS                      Indore, Gwalior              5

 Source: Special Economic Zones in India- Ministry of Commerce & Industry, Aranca Research

31      MADHYA PRADESH                                                                                        For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – EDUCATION.. (1/2)

      Madhya Pradesh had a literacy rate of 70.6%; the male literacy rate                 Category                                         Literacy rate (%)
       is 80.5% and the female literacy rate is 60.0%.
                                                                                           Total                                                    70.6
      During 2015-16 (till November 2015), under technical education, the
                                                                                           Male                                                     80.5
       state had a total of 676 institutions with annual enrolment of 146
       thousand students.                                                                  Female                                                   60.0
      Moreover, under the “Gaon Ki Beti Yojna”, which deals in providing
       rural girls with high education, 36.79 thousand girls were benefited                Educational institutions (as of 2016-17)
       during 2015-16 (till December 2015).

      “Make in Madhya Pradesh” is to further the agenda of CM who                         Primary schools                                                     83,983
       recently called upon a business community from the US to bring their
                                                                                           Total high schools (including private)                               4,774
       expertise in the social sectors.
                                                                                                                                                                           #
                                                                                           Total higher secondary schools (including private)                   5,211
     Reputed institutes of Madhya Pradesh
                                                                                           Government colleges                                                   457
      Indian Institute of Management (IIM), Indore                                                                                                                 #
                                                                                           Universities                                                          16
      Indian Institute of Forest Management, Bhopal
                                                                                           Polytechnic institutes                                                 69
      Institute of Hotel Management, Bhopal
      International Institute of Professional Studies, Indore                             Engineering & architecture colleges                                   232
                                                                                                                                                                       #
      Indian Institute of Technology (IIT), Indore                                        Management institutes                                                 266
                                                                                                                                                                    #
                                                                                           Medical colleges                                                      13
                                                                                                                                                                    #
                                                                                           Dental Colleges                                                       11

 Note: #Figures as of April 2015
 Source: AICTE, Directorate of Technical Education, Madhya Pradesh, Higher Education Department- Government colleges of Madhya Pradesh, Madhya Pradesh Education Portal,
 National Health Portal, Aranca Research

32      MADHYA PRADESH                                                                                           For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – EDUCATION.. (2/2)

      The state has one approved institute with foreign collaboration for the course of business studies. The name of the institute is Daly College
       Business School and is affiliated to De Montfort University, Leicester, UK.

      As per the budget 2017-18, the government proposed an allocation of US$ 3.08 billion, US$ 355.97 million & US$ 212.21 million for the
       development of school education, higher education & medical education departments in the state.

      Under Rashtriya Madhyamik Shiksha Abhiyan, allocation of US$ 75.61 million was proposed by the state government during 2016-17.

      During 2017-18, the state government is targeting upgradation of 520 high schools & 240 higher secondary schools.

      The Government of Madhya Pradesh has committed US$ 237 99 million, for expansion of training infrastructure & building capacity for skill
       development in the state in January 2017 The scheme will be implemented over a period of 5 years & aims to generate employment for youth &
       provide desired skillset & manpower to the industries.

      In the budget 2017-18, the government proposed an allocation of US$ 15.52 million under skill development scheme.

      In May 2017, the state government had decided to teach engineering in Hindi from the new academic session. The students will be asked to
       choose between English and Hindi medium of study during admission to engineering courses.

 Source: AICTE

33      MADHYA PRADESH                                                                            For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – HEALTH

      As of February 2018, the healthcare services network of Madhya                           Health institutions (February 2018)
       Pradesh comprised 52 district hospitals, 394 community health
       centres, 1,435 primary health centres and 11,618 sub-health centres.
                                                                                                District hospitals                                                52
      During 2015-16 (till October 2015), around 965 thousand                                  Primary health centres                                           1,435
       beneficiaries were benefited with free services under Deendayal
                                                                                                Sub-Health centres                                               11,618
       Hospital Yojana.
                                                                                                Community health centres                                          394
      The state has a total of 604 ambulances under National Ambulance
       Service, using which 479 thousand patients were benefited during                         Civil hospitals*                                                  66
       April-October 2015.                                                                      Homeopathic hospitals*                                             2

     Health indicators of Madhya Pradesh                                                        Special newborn care units*                                       53
                                                                                                Nutrition rehabilitation centres*                                 316
              1
     Birth rate                                                   25.1                          Gram aarogya kendras*                                            48,959
                  1
     Death rate                                                    7.1
                             2
     Infant mortality rate                                          47                           The state government proposed an allocation of US$ 883.5 million
     Life expectancy at birth (years)                                                             for the development of Public Health And Family Welfare
                                                                                                  Department in the state, during 2017-18.
     Male (2011-15)                                               64.5
                                                                                                 Under Public Health Engineering, an allocation of US$ 569.58 million
     Female (2011-15)                                             65.3
                                                                                                  was made by the state government, as per the state budget 2017-18.

 Note: * as of March 2017
 Source: Ministry of Health & Family Welfare, Government of India, Sample Registration System (SRS) Bulletin, 1Per thousand persons, 2Per thousand live births

34      MADHYA PRADESH                                                                                                 For updated information, please visit www.ibef.org
CULTURAL INFRASTRUCTURE

      Madhya Pradesh’s history dates back to the pre-historic age. The                    Among the cultural festivals of Madhya Pradesh, the Khajuraho
       United Nations Educational, Scientific and Cultural Organisation                     Festival of Dance & the Tansen Music Festival in Gwalior celebrate
       (UNESCO) has declared 3 locations in the state as heritage sites:                    classical Indian dance & music. These festivals are well attended by
       temples at Khajuraho, Buddhist monuments at Sanchi & rock                            both domestic & international tourists. The state government will also
       shelters of Bhimbetka.                                                               provide an amount of US$ 34 million in the state budget of 2017-18
                                                                                            in order to increase the activities related to culture & archaeology.
      Bhimbetka cave paintings are the biggest repository of prehistoric art
       in India. Sanchi Stupa, once a centre of Buddhist learning, stands                 Type of museum (no)
       unique as one of the most well-preserved stupas of India. The
       Directorate of Archaeology, Archives and Museums, is in charge of                  State-level museums                                   6
       the support of 349 memorials/landmarks and 44 museums over the
                                                                                          District-level museums                               12
       state.
                                                                                          Local museums                                         7
      The state government has built up sports academies to advance
                                                                                          Site museums                                          6
       games like hockey, shooting, equestrian, water sports & martial arts.
       Eminent sports personalities are awarded with the Vikram Awards,                   District Archaeological
                                                                                                                                               16
       the Ekalavya Awards & the Vishwamitra (lifetime achievement)                       Association museums
       Award.
                                                                                          State-level museums in Madhya Pradesh
      In order to enhance the cultural infrastructure in the state, the
                                                                                           State Museum, Bhopal
       Government of Madhya Pradesh had allocated US$ 30.12 million
       during 2016-17.                                                                     Central Museum, Indore

      For sports & youth welfare in the state, an allocation of US$ 34.73                 Rani Durgawati Museum, Jabalpur
       million was proposed by the Government of Madhya Pradesh, as per                    Tulsi Museum, Ramvan, Satna
       state budget 2017-18.
                                                                                           Maharaja Chhatrasal Museum, Chhatarpur
                                                                                           Gujri Mahal Museum, Gwalior

 Source: Directorate of Archaeology, Archives and Museums, Government of Madhya Pradesh; State Budget 2015-16

35      MADHYA PRADESH                                                                                          For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE … (1/4)

      Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) is the nodal agency for industrial growth in the state. It is the central
       point to coordinate, activate and ensure implementation of mega infrastructure projects.

      MPSIDC has identified 19 industrial growth centres to attract medium and large industries & Non-Resident Indians (NRls) to the state and provide
       various facilities and concessions to them. For a balanced & sustainable growth of industry across the state, MPSIDC established 7 growth
       centres at Bhopal, Gwalior, Jabalpur, Indore, Rewa, Ujjain & Sagar. These growth centres are known as Madhya Pradesh Audyogik Kendra Vikas
       Nigam Limited (AKVN).

     Infrastructure                                      Bhopal AKVN                       Gwalior AKVN                          Jabalpur AKVN

     Area developed (hectares)                              1,367                              2,062                                   1,312

                                                                                    Malanpur, Ghirongi, Banmore,
     Growth centres                                Mandideep, Pillukhedi                                                         Borgaon, Maneri
                                                                                             Chainpura

                                         Large and medium industries (LMI): 54                LMI: 69                                 LMI: 17
     Units established
                                            Small scale industries (SSI): 558                 SSI: 346                               SSI: 154

                                          HEG, Crompton Greaves, Procter &
                                                                                   Surya Roshini, Godrej, Grasim,        Raymond, Hindustan Petroleum,
     Major companies                        Gamble, Godrej, Lupin, Oswal,
                                                                                   Cadbury, JK, Crompton Greaves                     Ayur
                                                     Vardhman

                                           Inland Container Depot (ICD), Food                                            Stone park, food park, mineral &
     Special infrastructure                                                          ICD, food park, stone park
                                                          Park                                                                  Agri specific SEZ

                                         Engineering cluster, logistic hub, food   Readymade garment park, food          Agri SEZ, food park, textile park,
     Proposed project
                                            park, plastic park, textile park                  park                                apparel park

 Source: MP Trade & Investment Facilitation Corp. Ltd.

36      MADHYA PRADESH                                                                                  For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE … (2/4)

     Infrastructure                            Indore AKVN                            Rewa AKVN             Ujjain AKVN                 Sagar AKVN

     Area developed (hectares)                     3,332                                 307.4                  431.6                       359

                                        Pithampur, Kheda, Megh                                                                       Purena, Sidhgawa,
     Growth centres                                                         Rewa, Waidhan, Purena           Dewas, Maxi
                                                Nagar                                                                                   Pratappura

     Units established                     LMI:272, SSI: 1213                        LMI: 8, SSI: 99      LMI: 35, SSI: 171           LMI: 9; SSI: 199

                                          Eicher, Bridgestone,
                                                                                                                                   Ghadi Detergent, RSPL
                                         Hindustan Motors, Man                                          Ranbaxy, S.Kumars,
     Major companies                                                                 Birla, Jaypee                                   (Rohit Surfactant),
                                         Force, Flexituff, Kinetic,                                     Gajra, Kirloskar, Tata
                                                                                                                                       Sanmati Foods
                                                Cummins

                                       Multi-product SEZ, IT SEZ,
                                       Food Park, Apparel Park,
     Special infrastructure                                                               IIDC             Food park, IIDC                  IIDC
                                        Inland Container Depot
                                               (ICD), IIDC

                                                                                                         Knowledge city, new
                                         Auto testing track, food
                                                                                                       industrial area under the
     Proposed projects                   park, pharma, namkeen                       Industrial area                                   Industrial Area
                                                                                                        Delhi Mumbai Industrial
                                           park, logistics park
                                                                                                           Corridor project

 Source: MP Trade & Investment Facilitation Corp. Ltd., SEZ: Special Economic Zone

37      MADHYA PRADESH                                                                                    For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE … (3/4)

      The Industrial Promotion Policy 2010 aims to upgrade industrial                       Under the Centre’s Plastic Park Scheme, Industries & Commerce
       infrastructure & provide land to investment projects without                           Department is developing plastic parks at an estimated cost of US$
       difficulties.                                                                          27.93 million at Tamot in Raisen and Billoa district, Gwalior.

      Under the provision of Madhya Pradesh Investment Facilitation Act
       2008, the state government is keen to strengthen its single-window                   Potential clusters
       system to attract investments.
                                                                                                               Pharmaceutical, textile, food processing, IT, auto
      For a structured growth, the government has divided the state into 6                 Indore
                                                                                                               components
       clusters: Indore, Bhopal, Jabalpur, Gwalior, Rewa & Sagar.
                                                                                            Bhopal             Engineering, textile, biotech, herbal, IT, food processing
      The state has excellent infrastructure, with 19 industrial development
       parks, 129 industrial areas, 6 food parks, 8 integrated development
       centres, 3 dry parks, 1 stone park, 1 IT park, 1 SEZ & an apparel                    Jabalpur           Garment, mineral, stone, forest, herbal, food processing
       park at Indore.
                                                                                                               Electronics, IT, FMCG, engineering, stone, food
                                                                                            Gwalior
      A gems & jewellery park is being developed in Indore to promote the                                     processing
       diamond industry in the state. The government plans to develop the
                                                                                            Rewa               Mineral, cement, forest produce
       project on its own, after failed attempts to find a suitable partner on
       PPP basis.
                                                                                            Sagar              Mineral processing, stone
      State owned NTPC plans to construct a 2,640 MW power plant in
       Barethi in Chattarpur district of Madhya Pradesh at a cost of US$ 3
       billion. The Expert Appraisal Committee (EAC) of Union Environment
       Ministry has sought additional information with respect to clearance
       from National Board for Wildlife.*

  Notes: * - As of February 2018, the project is still awaiting clearance.
 Source: MP Facilitation Centre for NRI, Indore Special Economic Zone, www.indoresez.nic.in, Aranca Research, SEZ: Special Economic Zone

38      MADHYA PRADESH                                                                                             For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE … (4/4)

     Industrial clusters in Madhya Pradesh

                                                                                  Gwalior

                                Bhopal
                                                                                                        Rewa

                                                                                                              Jabalpur

                   Indore

                                                                                            Sagar

 Source: Maps of India, Madhya Pradesh State Industrial Development Corporation

39     MADHYA PRADESH                                                                  For updated information, please visit www.ibef.org
SMART CITIES

      As of March 2017,Madhya Pradesh was the first state to get 3 cities
       shortlisted to be developed according to the smart cities parameters
       for making them citizen friendly and sustainable.

      In an effort to revolutionise the infrastructure of the state, the state
       government decided to revamp 7 cities of Madhya Pradesh, namely                         Gwalior
       Bhopal, Indore, Gwalior, Ujjain, Jabalpur, Sagar & Satna.

     Smart cities in Madhya Pradesh

     Cities                     Population                 Literacy rate                                           Satna

     Bhopal                      2,371,061                    80.37%
                                                                                    Ujjain            Sagar
     Indore                      3,276,697                    80.87%
                                                                                             Bhopal
                                                                                                              Jabalpur
     Gwalior                     2,032,036                    76.65%
                                                                                  Indore
     Ujjain                      1,986,864                    72.34%

     Jabalpur                    2,463,289                    81.07%

     Sagar                       2,378,458                    76.46%

     Satna                       2,228,935                    72.26%

 Source: News Article, Census 2011 & Aranca Research

40      MADHYA PRADESH                                                                For updated information, please visit www.ibef.org
KEY INDUSTRIES.. (1/2)

      Wealth of natural assets including agro-based items, forest products
                                                                                Year         IEMs filed     Proposed investments (in US$ billion)
       & minerals, the state’s policy incentives & its central location have
       pulled in significant investments in the agro-products, consumer         2015             99                          2.02
       goods, medications & pharmaceuticals, mines & minerals,
                                                                                2016             84                          2.49
       manufacturing & textiles sectors.
                                                                                2017             76                          1.11
      The state government is keen to develop a strong mechanical base.
       The Madhya Pradesh State Industrial Development Corporation
       Limited (MPSIDC) & its subsidiary, Madhya Pradesh Audyogik
       Kendra Vikas Nigam Limited (MPAKVN) are the key nodal offices for        The government approved a coated fabric manufacturing plant which
       development in the state.                                                 was set up by Mayur Uniquoters Ltd. at Seetapur in Morena, worth
                                                                                 US$ 16.21 million of investment, in January 2017.
      Some of the major industrial areas in the state are Bhopal, Sehore,
       Raisen, Harda, Mandideep, Dewas, Pithampur, Khandwa, Jhabua,             The government in January 2017, approved a furniture fittings &
       Dhar, Ujjain, Mandsaur, Ratlam, Jabalpur, Indore, Shajapur, Satna &       manufacturing unit in Pithampur by Hettich India Pvt. Ltd., with an
       Gwalior.                                                                  investment of US$ 59.20 million.

      Under Industrial Promotion Policy 2010, the government aims to           The number of IEMs filed in 2017 stood at 76 with proposed
       promote agro-based & local natural resource-based industries.             investments worth US$ 1.11 billion.

      Tertiary sector was the largest contributor to the state economy with
       a share of 38.8% of GSDP in 2016-17.

 Source: Madhya Pradesh State Portal, DIPP

41      MADHYA PRADESH                                                                           For updated information, please visit www.ibef.org
KEY INDUSTRIES.. (2/2)

      In the state budget 2017-18, for the rural industries, Government of      Key industries in Madhya Pradesh
       Madhya Pradesh allocated an amount of US$ 40.03 million. Further,          Auto and auto components
       the work on installation of 25 industrial units over 2,344 hectare land
                                                                                  Textile
       is under process. However, work on 6 industrial units along with
       Crystal IT park, readymade garment park, etc. over an area of 295          Cement
       hectares was completed during 2015-16.                                     Agro-based industries
      After the validation of various self employment schemes in the state,      Forest based industries
       the government decided to start the Mukhya Mantri Yuva Udhyami
                                                                                  Pharmaceuticals
       Yojana & Mukhya Mantri Aarthik Kalyan Yojana.
                                                                                  Mineral based industries
      Work on construction of IT parks in 4 major regions of the state,
       including Indore, Gwalior, Bhopal & Jabalpur, was initiated during         Manufacturing
       2016-17. Moreover, electronic manufacturing clusters are also being        Tourism
       established in Jabalpur & Bhopal. For these new establishments, the
                                                                                  IT and ITeS
       Government of Madhya Pradesh allocated an amount of US$ 9
       million as per the Budget 2017-18.                                         Logistics & warehousing

      With an investment of US$ 2.97 billion, as of January 2017, Aditya         Biotechnology
       Birla Group is expanding its business in Madhya Pradesh, in sectors
       like cement, retail & telecom.

      In 2017-18 budget, the state government allocated US$ 24.7 million
       for New & Renewable Energy.

 Source: Madhya Pradesh State Portal, State Budget

42      MADHYA PRADESH                                                                             For updated information, please visit www.ibef.org
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