Amid competitive federalism, Madhya Pradesh Chief Minister Shivraj Chouhan claims the state is strategically located to attract investments due to the investor friendly policies. Chouhan, who was accompanied by industry minister Rajvardhan Singh Dattigaon, at the sidelines of interactive session jointly organised by the MP government and CII explains there is a policy continuity and amendments to the existing policies with the changing times.
Q: Why should investors invest in Madhya Pradesh especially when there are other competing states?
A: Madhya Pradesh shares a border with 5 states and offers access to 50% of the Indian population. Being equidistant from major country’s cities, the state has excellent connectivity with the rest of India. State is natural resource rich and a leading producer of agriculture and horticulture products and is the only producer of diamond in India. The state has 1.22 lakh acres of industrial land with 35,000 acres of online GIS based booking system, industry ready ecosystem with 96 developed and developing industrial areas. The state stops the list with 19.74% gross state domestic product. The state is not just self-reliant in the power sector but it is surplus. It is providing 24 hour power supply. State has abundant availability of skilled manpower. Besides, the state has a conducive and peaceful working environment with competitive labour cost and low attrition rates.
Q: What are the key policies in place to attract investments in the state?
A: The state government has released a number of policies for the benefit of the industry. These policies are crafted for various sectors including ethanol and biofuel, start ups, industrial, MSME, film, defence and aerospace, electric vehicles and rice milling. The government has adopted an innovative and proactive approach. The government has introduced a tax-delinked transparent policy with investment promotion assistance of up to 40% for manufacturing units and up to 60% for the food processing sector.
There is a single window clearance through Invest Portal whereby the industry can start business in flat 30 days. The government provides approvals of 9 departments and 44 services in 30 days. In addition, the government has launched Start Your Business in 30 days. There is an online system for issuing licenses and a GIS based land allotment system. The time for land allotment has been reduced to 24 days from 59 days. The government provides guarantees for the loans taken by MSMEs for their businesses. The unemployment rate is low at 0.8%. The government hopes that the ongoing and proposed investments in various sectors will generate more jobs.
The state has planned multiple industrial corridors like Atal Pragati Path, Narmada Industrial Corridor and working with NICDC on Delhi Mumbai Industrial Corridor, Delhi Nagpur Industrial Corridor to boost economic activity and generate employment across the state.
Q: Invest Madhya Pradesh conference will take place on January 11 and 12. What are the focused sectors in which the government expects investments?
A: The focused sectors are food processing, automobile, textile and garment, logistic and warehousing, pharmaceuticals, information technology, agriculture and food processing, chemicals and petrochemicals and tourism. There is an ecosystem available to make Madhya Pradesh a textile hub.
About 42 clusters are being developed for MSMEs including textile clusters. There are more than 30 OEMs and 200 plus auto component producers in the state while 25,000 people are working in the Pithampur auto cluster which is spread over 2,000 hectares.
To promote electric vehicles, the state government has announced a special industrial area. The government proposes to establish 4 pharmaceutical parks in Ratlam, Devas, Zambia and Dhar districts on 500 to 600 acres each.