An emerging investment destination

Published : Jun 02, 2006 00:00 IST

In a short span of time, the State has projected for itself an investor-friendly image.

PURNIMA S. TRIPATHI in bhopal

DESPITE the tremendous resources at its disposal, Madhya Pradesh has so far failed to emerge as an attractive destination for investors. This situation, however, is set to change now with the State government's proactive initiatives. In a short span of time, the State has projected itself as investor-friendly, with the government ever willing to help out private players. Towards this end, the government has constituted a high-level committee headed by the Chief Secretary for speedy clearance of projects worth more than Rs.25 crores. To facilitate investment, the "single window" concept has been changed to a "single table" one. The result is evident: Investment proposals worth Rs.72,778 crores.

Madhya Pradesh's unique geographical location - it is centrally located sharing borders with six States - and its vast mineral resources are great incentives for prospective investors. Being a mineral-rich State, it has tremendous potential for cement, ceramic and asbestos manufacturing industries. Besides, Madhya Pradesh is the only Indian State to have diamond mines. So cutting and polishing of diamonds can emerge as a major industrial activity here, fuelling the growth of the jewellery manufacturing industry. Rich coal, copper, manganese, and dolomite reserves have attracted investors in large numbers.

The State also offers vast possibilities in the food processing industry. In the Malwa region alone, it has over 26,000 hectares under potato cultivation. Cash crops such as coriander and garlic are grown abundantly. In the field of biotechnology and the production of herbal medicines too the State has tremendous possibilities. Approximately, 20,000 metric tonnes of medicinal herbs are produced in Madhya Pradesh. The textile, garments, auto components, information technology and power generation sectors too have several investment opportunities.

In terms of human resources the State has rich potential. As a result of the vast network of technical education institutions, every year 18,000 technically qualified people become available to prospective employers. The State has highly reputed educational institutions such as the Indian Institute of Information Technology, the National Law School, the National Institute of Travel and Tourism Management, the Indian Institute of Management and the Indian Forest Management Institute. Owing to the presence of large number of educational institutions in Indore, the city has emerged as an academic hub. A number of projects are coming up in SEZ Indore, the country's first greenfield special economic zone.

Information technology is another sector where the State offers tremendous opportunities. The government's new information technology policy has gone a long way in attracting investors to this sector. The policy aims to turn cities such as Bhopal, Indore, Gwalior and Jabalpur into IT hubs. The State government has earmarked large tracts of land near the airports in these cities to be developed as software technology parks. They will be equipped with facilities such as residential units, commercial complexes, shopping malls, hospitals and entertainment centres. The government will also provide various exemptions in taxes and the "single table" process will ensure speedy clearance to all projects in the IT sector. In a major initiative, the government has offered to reimburse 30 per cent of the project cost to those IT projects which furnish quality certification. The only condition will be that the company will employ 100 or more people in the State. Besides, the government will provide exemption from stamp duty for properties mortgaged to banks or other financial institutions. In addition, no prior approval will be needed by IT companies to set up captive power plants. Major concessions in land prices is another incentive that the State government has offered to the industry, provided each company employs a minimum of 100 people. For those employing more than 500 people, land will be given free.

The business process outsourcing (BPO) and IT-Enabled Services sectors have got the government's special attention. To meet the ever-increasing demands of this sector, the government has selected 500 schools all over the State to provide world class hardware and software education

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