Madhya Pradesh: Industry and MSMEs

Industry in Madhya Pradesh is, in the state portal's words, largely natural resources driven, based on minerals such as limestone, coal, bauxite, iron ore, diamond and manganese ore, and on farm produce such as oilseeds, pulses, soya and cotton. Big industries are mostly in Indore, Bhopal, Gwalior and Jabalpur. Several figures on the portal's industry page are older ones (for example, growth rates for 2006-12 and 2011-12 and the Industrial Promotion Policy 2010), and are given here as the portal states them.

Industrial base

• The portal names textile, cement, steel, food processing, automobile and auto components, pharma and optical fibre as sectors with a strong industrial base.
• Cement, sugar, paper, textile, steel, soya, vehicles and medicine are listed as the major industries today.
• Mineral development and industries based on agricultural and forest produce remain the mainstay of industrial production.
• Notable Central Government units: BHEL (Bhopal), Government Ordnance Factory (Jabalpur), Currency Printing Press (Dewas), Alkaloid Factory (Neemuch) and Rail Coach Factory (Bhopal).

Infrastructure for industry

• 231 notified industrial areas, 19 growth centres, 4 notified Special Economic Zones and 12 product-specific industrial parks.
• Road network of 99403 km.
• Over 16,000 hectares of land for industrial use; a land database (16000 hectares) has been prepared for entrepreneurs.
• Wastelands and government farms of 50 to 3000 acres are offered for investment.
• The portal cites a population of over 70 million and a decadal urbanisation growth of 26%, with bigger cities growing up to 40%.

Resource base

• The state is the second richest in India in mineral resources.
• 14% of India's coal reserves are in Madhya Pradesh, and Asia's thickest coal seam is in Sidhi district.
• 144 BCM of coal bed methane reserves have been identified.
• The state has operational diamond mines, large limestone reserves, manganese and dolomite, and dimensional stones such as marble, granite and flagstone.
• 12% of India's forests are in the state.
• Farm base: largest producer of oilseeds (23.92% of output), first in pulses (25%), and largest producer of garlic and coriander.

Clusters

• Indore: pharma, textile, food processing, IT and auto components.
• Bhopal: engineering, textile, biotech, herbal, IT and food processing.
• Jabalpur: garments, mineral, stone, forest, herbal and food processing.
• Gwalior: electronics, IT, FMCG, engineering, stone and food processing.
• Rewa: minerals, cement, agro and forest produce.
• Sagar: mineral processing and stone.
• Cluster-based development is facilitated through the Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd. (MPAKVNs).

Industrial Promotion Policy 2010 (amended 2012)

• VAT refund for up to 10 years, limited to 100% of capital investment.
• Entry tax exemption for up to 9 years.
• 15% subsidy on fixed capital investment, and 5% interest subsidy for 7 years (limit INR 2 million), for micro and small industry.
• 75% land subsidy (on premium) for mega projects.
• 15% assistance on infrastructure cost for new industrial parks (limit INR 50 million).
• Special incentive packages for projects of INR 200,000 million or more, and customised packages above INR 250 million.
• Textiles: 10% investment subsidy for new units up to INR 10 million; 7-year entry tax exemption for units investing over INR1000 million; 2% interest subsidy for 5 years; 25% subsidy for an Apparel Training Institute.

Investment facilitation

• MPTRIFAC (MP Trade & Investment Facilitation Corporation) is the single window secretariat.
• The MP Investment Facilitation Act, 2008 was enacted.
• Investment promotion committees work at district (Collector), state (Industries Minister) and apex (Chief Minister) levels.
• The Project Clearance Implementation Board (PCIB) gives single-table clearance to mega projects; projects worth about Rs. 2,64,129 Crores have been facilitated.
• About 90,390 technical graduates and 2,70,000 graduates in all join the workforce each year.

Handicraft industry

• Mrignayani, a chain of government emporia, is run by the Madhya Pradesh Hastshilp Evam Hathkargha Vikas Nigam Ltd.
• Crafts include Bagh block prints, batik from Bhairongarh and Indore, Tussar sarees, lacquered toys from Budhni, lac bangles from Depalpur and Ratlam, iron work from Karera, and terracotta from Dhar, Indore, Ujjain and Dewas.