The State is emerging as a thriving industrial centre, thanks to the governments industry-friendly policies.
MADHYA PRADESH, the second largest State in India, has several advantages for industrial development: abundant natural resources, central location and high agricultural productivity. The State draws strength from its rich history and cultural heritage in its march towards industrial and economic progress. The dynamic Chief Minister, Shivraj Singh Chouhan, has made it his personal agenda to put the State on the road to development that is, development with a human face. His persistent efforts to bring about qualitative changes in the lives of the common man have borne fruit.
Madhya Pradesh, which is called a BIMARU State along with Bihar, Rajasthan and Uttar Pradesh in view of the low human development index value and slow economic growth, has now acquired a reputation for being one of the fastest-growing States. A large number of major industries, educational and health care institutions of national and international repute, power projects, dams, bridges and roads are coming up at a frenetic pace. Moreover, within a short span of time, the government was able to tap the States immense tourism potential, with the result that the tourism industry is thriving today. The State has entered the era of hi-tech revolution by investing heavily in electronics, telecommunications, automobiles and information technology industries. It is producing optical fibre for telecommunication needs.
A number of automobile industries have come up at Pithampur near Indore. The prominent industries in the public sector are Bharat Heavy Electricals Ltd. in Bhopal, the Security Paper Mill in Hoshangabad, the Bank Note Press in Dewas, the Newsprint Factory in Nepanagar and the Alkaloid Factory at Neemuch. In order to give impetus to industrial development, the Central government has started an air cargo complex and sanctioned the setting up of a National Auto Testing and Research and Development Infrastructure Project, both at Pithampur.
A greenfield special economic zone (SEZ) has been developed as a globally competitive investment destination in Indore. An Industrial Infrastructure Fund has been set up, and SEZ Indore Ltd., a special purpose vehicle, is being formed to implement the SEZ policy with assistance from a strategic private partner. Several units have started commercial production in the zone.
The government is promoting foreign direct investment through its comprehensive Economic Development Policy. It has announced an Industries Promotion Policy offering incentives for investors. Letters of intent have been received for the setting up of industries with an investment of Rs.52,000 crore. Decks have been cleared for the establishment of the Rs.10,300-crore Oman Bina Refinery Project at Bina in Sagar district.
Owing to the governments industry-friendly policies, the State has emerged as a thriving business centre. Renowned names in areas ranging from automobile makers to pharmaceuticals are based here. The governments success in attracting industrial investment was evident at the recently concluded Gwalior Investors Meet, where 62 memoranda of understanding were signed for an investment of Rs.88,018 crore.
Other measures taken to promote industrial activity include constitution of an Industry Advisory Council, comprising the Chief Minister, some Ministers and prominent industry leaders; setting up of a three-tiered committee for the speedy disposal of investment proposals with an apex-level committee headed by the Chief Minister; and setting up of a single-agency system, with the Trade and Investment Facilitation Corporation (TRAFFIC) as a fast-track facilitation and escort service, for the filing of a common application pertaining to the departments of revenue, commercial taxes, labour, energy, housing, environment, urban development, rural development and food and drug administration.
What has actually worked for the State in its quest for development is the revolutionary step of deregulation and decentralisation, which includes the path-breaking concept of self-certification and the simplified procedure for consent under the Water and Air (Prevention and Control of Pollution) Act for non-polluting industries.
The States rich mineral wealth of copper ore, magnesium ore, limestone, diamonds, coal and coal-bed methane has also acted as a catalyst for industrial development. Minerals worth Rs.5,050.05 crore were produced in 2004-05. The State produces 21 types of minerals. It has 14 per cent of Indias coal reserves, which makes it an ideal destination for cement, iron and steel and other related industries. Interestingly, Asias thickest coal seam is located in Sidhi district. Madhya Pradesh also has the only working diamond mine in India. In addition, the State has large reserves of limestone. Besides, exotic varieties of dimensional stones, that is, marble, granite and flagstone, are also available, and this makes the State an attractive destination for the construction industry.
Realising the importance of uninterrupted power supply for industrial activity, the State has taken steps to overhaul this sector too. Besides starting the SEZ, the State has also invested in setting up industrial parks with specialised infrastructure. Some of them are the Crystal IT Park at Indore, the gems and jewellery parks in tandem with the IT park, and the food parks and agri-export zones at Mandsaur, Khargone, Chhindwara, Hoshangabad and Bhind. A new IT policy, which seeks to empower citizens through e-governance, has been formulated.
In order to promote the IT industry, the government is encouraging private partnership by providing land concessions and tax rebates. IT education has also been given a boost.
