1

2
 3

State Profile of Madhya Pradesh

POPULATION (2001 census) 60348023

MALES 31443652

FEMALESs 28904371

SEX RATIO (females/1000 males) 920

DENSITY OF POPULATION (Persons/ Square 196

Km)

URBAN POPULATION % 26.67

LITERACY RATE (census 2001) in % 63.7

MALE LITERACY in % 76.1

MALE LITERATE in numbers 19672274

FEMALE LITERACY in % 50.3

FEMALE LITERATE in numbers 11920289

BIRTH RATE (PER 1000) (2002)P 30.3

DEATH RATE (PER 1000) 9.7

NSDP at current prices (2002-2003)* Rs Crores 71387 Rs Crores *(2002-

2003)

PER CAPITA NSDP (2002-03) at current prices 11438 Rs *(2002-2003)

Rs
 4

USEFUL INFORMATION

Economic Activity:

Manufacturing- 26%

Services- 28%

Agriculture - 46%

Investor Profile

Govt.. 42.2%

Foreign 13.1%

Indian 44.7%

State priority areas: Electronics; Minerals, food and agriculture industries; telecom;
Auto.

Investment Strengths: Proactiveness in seeking investment; non-disruptive labour

environment; connectivity to large northern and western markets

Road length per 1000 km : 460

Cell phone/ 100 persons: 0.29
Railway track length /00 sq km: 1.3
Surfaced roads/ 00 sq km: 20.8
Gwalior, Jabalpur, Bhopal and Indore are the domestic airports. Panna, and Khandwa
are the two non operational airports in Madhya Pradesh.
 5

MAJOR INDUSTRIES

OPTICAL FIBRES

AUTOMOBILES

SOYABEAN

PROCESSING

CEMENT

FERTILIZERS

PAPER AND PULP

TYRE AND TUBES GASES

ELECTRONIC GOODS
 6

Madhya Pradesh: Introduction & Overview

Historical Background:-

Madhya Pradesh was formed on November 1, 1956 comprising the seventeen

districts of Mahakoshal, two districts of Bhopal, eight districts of Vindhya
Pradesh, Sixteen districts of Madhya Bharat. At the time of its formation, the state
had 43 districts. Subsequently, two large districts were bifurcated .Sixteen more
districts were formed in the year 1998. The Chhattisgarh region, comprising of
16districts, was separated to form a new state as per the provisions of Madhya
Pradesh Re-organization Act, 2000 and recognized State of Madhya Pradesh came
into existence on 1st November 2000. Again Three new districts i.e. Burhanpur,
Ashok Nagar and Anooppur were formed in the year 2003.

The total geographical area of the state is now 308 thousand sq. km. Madhya
Pradesh is
Situated in the very heart of India and it is surrounded by five states viz. Rajasthan,
Maharashtra, Gujarat, Chhattisgarh and Uttar Pradesh.

During the past five years the incidence of poverty in the State (including
Chhattisgarh) has
Declined from 42.52 in 1993-94 to 37.43 in 1999-2000 as against 26.10 per cent
for the country as a whole. The State was the third poorest among 15 non-Special
Category States in the year 1999-2000, the first being Orissa with 47.15 per cent,
followed by Bihar with 42.60 per cent. The incidence of poverty in rural areas is
substantially lower than in urban areas. In 1999-2000 the percentage of population
living below poverty line in rural areas was 37.06 as against only 38.44 for urban
areas.

Historical record reveals the fact of it being ruled by a number of famous empires
of India. The empires included the Mauryas Empire to the Mughals and later off
course by the British. During the rule of the Mughals, famous musician Tansen of
Madhya Pradesh used to be the official singer of the Mughal Samrat Akbar's court.
There are many interesting legends and folklore related to Tansen and Birbal in the
court of Akbar.

Madhya Pradesh is also the homeland of Kalidas, the famous immortal Indian poet
and dramatist. The innumerable monuments, carved temples, stupas, forts and
 7

palaces on hilltops signify the aesthetic sense of the empires and kingdoms, of
great warriors and builders, poets and musicians, saints and philosophers.

In the earlier times influence of religions like Hinduism, Buddhism, Jainism and
Islam are still evident in the historical places here. Dynasties like that of Sungas,
Andhras, Satvahans, Ksaptrapas, Nagas and last but not the least the Guptas ruled
over this place. During and after the tenth century different regions of the state
were ruled by different dynasties like Chandellas, who ruled in Khajuraho,
Muslims in Gwalior and the Holkar in Indore etc.

After the British took over the state, the state had been declared as the central
province. After India gained her independence, under the provision of the state
reorganization act of 1956, Madhya Pradesh was given the status of a full-fledged
state with effect from 1st November 1956.

Chattisgarh has been carved out as a new state in November 2000 to fulfill a
demand that was long due.

Geography of Madhya Pradesh

Madhya Pradesh lies in the middle of the India, sharing its border with six
neighboring states.

The northern border of the state has two neighbor states namely the state of
Rajasthan and Uttar Pradesh. The western border of the state is shared by a part of
Rajasthan and a part of Maharashtra with Gujarat in between. On the southern part
of the state of Madhya Pradesh lie the states Maharashtra and Andhra Pradesh. The
entire eastern border of the state is bounded by the states of Chattisgarh and
Jharkhand.

The total geographical area the state of Madhya Pradesh covers is approximately
308,000 sq km divided among the 45 districts of the state. Forests cover a major
part of the state and the cultivated area accounts to almost half of the total
landmass of the state. The state covers a wide area of the Indian plateau region.

A number of significant rivers flow through this land. Thus, with the mountain
ranges, rivers along with the plains, Madhya Pradesh has a varied physical feature.
 8

People and Lifestyle of Madhya Pradesh

Tribal Women - People 0f Madhya Pradesh

People & Lifestyle - Magnificent At Heart

Most people in the state of Madhya Pradesh lead their lives on a slow and easy
pace. Not many parts of the state can be exactly called developed and most of the
areas of the state are inhabited by tribal People. There are in all 45 districts and 23
of them are primarily tribal dominated. But rest of the district are developed
enough to compensate and help the state keep up with time. Apart from the tribal
community, people of Hindu religion form the remaining portion of the population.
You will also find small number of Parsis, Jainas and Muslims here. The
geographical aspect of the region has been a prominent decider on the distribution
of communities in the state. The tribes that have been living in the state from olden
times have been living in the shelter of Vindhyas. Thus making them impervious to
any outside intrusions. This helped them maintain their culture and customs safe
and continue it till the present day.

Tribes In Madhya Pradesh

The most prominent tribes in Madhya Pradesh are Gonds, Bhils, Bhilals, Korkens
and Kols. They indulge in various activities to earn their livelihood. Earlier they
 9

were semi nomadic people but most of them have now settled down and have
choosen their occupation. The Khaiwas and the Panikas are into agriculture
whereas occupation of Mangetri Pradhans is singing and dancing. Some tribes
have slowly moved to the outskirts of the developed areas to find more rewarding
profession. They generally work in shops, as street hawkers or as factory workers.

Customs and Traditions

There customs and traditions are also quite different. The most prominent being the
custom of Ghotul. This ritual is for unmarried boys and girls of Muria tribe. The
Ghotul is a kind of a hut or a group of huts where these young kids gather after
sunsets. Here they are taught about the moral values and discipline that one should
have. They also indulge in many fun activities that also turn out to be educational.
This has become an important tool in shaping the lives of people of Muria tribe.
Many tribes follow the Hindu rituals for performing marriage, death and birth
ceremonies but there are many who still follow traditional methods. For marriage,
tribes like Bhils and Bhilalas have a very peculiar method. People choose their
spouse in a festival fair called Bhagoriya. If both girl and boy are willing for the
marriage, they elope and are afterwards are accepted as husband and wife.

Traditional Costume of People of M.P

The dressing style of people in the state differ drastically in various regions. Major
population in Madhya Pardesh wears dhoti. You will find people wearing a head
gear throughout the state. In eastern part of the state, a cloth called Safa is used
whereas a turban is used in the western parts of the state. A jacket called Bandi is
also worn by the people of this state. Mostly all their clothes are vibrantly colored
and give a pleasant feel to their outlook.
 10

Arts & Culture of Madhya Pradesh

Madhya Pradesh is home to majority of India's tribal population who, in most
cases, live apart from mainstream India. The Gonds tribe is found in the jungles
south of Jabalpur. On the west lives the Bhils, while the Oraons inhabit the eastern
part of the state. The Bhils get their name from a Dravidian word for bow, which is
the hallmark of the tribe.

Despite the encroaching influence of 20th century urban life, the tribals have
largely managed to retain their own way of life, relatively untouched by
modernization. However, besides the original tribes of the region, a number of
other people belonged to different ethnicity has settled in the major centers of the
state for varied reason.

The art and craft of the state is unique from region to region. A long heritage of
tradition continues to add a highly distinctive, individualistic touch to the crafts of
Madhya Pradesh.

The state is famous for its hand printing, generally with vegetable dyes. The major
hand printing centers of the state includes, Jawad, Bhairongarh, Mandsaur,
Umedpura, Burhanpur, Bhopal Indore, Gotampura, Sohawal, Tarapur and many
more. Garments, bedspreads, tablecloths and curtain material are produced at
Umedpura and Tarapur in Nandana prints that were once in vogue amongst the
villagers of the legendary Nimar plain. From Bhairongarh come printed quilt
covers in attractive colors and designs, lungies, odhanis, jajams (floor coverings),
bedspreads and tablecloths. Tie and dye chunris are the specialty of Tarapur and
Mandsaur. Textile weaving in Madhya Pradesh is as refined as the hand printing
craft. Soft, subtle shades in delicate weaves come off the looms in Chanderi, near
Gwalior.

The famous Chanderi sarees some of them with gold checks and rich gold border
along with two gold bands on the pallav, give each saree a special touch. The
craftsmanship of the famous Maheshwari sarees has a wide variety of checks.
Madhya Pradesh is also famous at producing tussar silk handloom fabrics. Skilled
craftsmanship of Madhya Pradesh also displayed in a variety of zari embroidered
(gold and silver threads) articles.
 11

There are zari wall hangings, handbags, sarees and splendid brocade borders.
Carpet weaving center of Gwalior, in Madhya Pradesh is regarded as Mecca of
crafts.

Madhya Pradesh is not only the geographical center stage of India it also occupies
a similar position in India's traditional heritage of music. Genius like Tansen who
perfected the dhrupad style of singing was born here. Moreover, the Gwalior
Gharana of Madhya Pradesh is a famous name in the world of Indian classical
music today.
 12

Natural Resources:

Land and its Use :

The reorganized state has a geographical area of 307.55 lakh hectares, out of which
149.62lakh hectares is the net area sown in 2001-02, and 14.99 lakh hectares are
under permanent pastures, grazing lands and under miscellaneous tree crops.
Another 12.41 lakh hectares are current and old fallow lands and 12.18 lakh
hectares constitute cultivable waste land. The area under forests is 85.80
lakh hectares.

Forest :
Madhya Pradesh has immense forest resources covering an area of 95.2 thousand
square kilometers which is approximately 31 percent of the total geographical area.

Water Resources :
The ten major rivers of the state, namely, Mahi, Narmada, Tapti, Chambal, Betwa,
Sone, Wainganga,Ken, Sinath and Pench originate in Madhya Pradesh and flow to
the five bordering states. These rivers of the state offer an availability of 56.9 MAF
of water, about 70 percent of which could be harnessed for irrigation purposes.
Besides, about 22.3 MAF ground water is also available, of which 50 percent could
be utilised for irrigation purposes. In the year 2001-02 the net irrigated area in the
State was 44.9 lakh hectares which was 30.7 percent of the net area sown.

Agriculture

Though the contribution of the primary sector, which includes agriculture, to the
total Net State.
Domestic Product is coming down, agriculture is still the mainstay of the State's
economy, as about 77 % of the population is still dependent upon agriculture.
Agriculture in the state is still traditional. Madhya Pradesh has a number of
advantages in setting up industries. It has abundant natural resources, location
 13

advantage, peaceful industrial climate, better organizational delivery systems,

availability of agricultural inputs and raw materials, and a number of State
Government Undertakings for guidance and help. The power position of the state is
in deficit at present.
 14

POPULATION AND SEX RATIO IN MADHYA PRADESH

Madhya Pradesh is the largest state of the Republic of India in terms of area. In
terms of population, it was the sixth most populous state at the 1991 population
census with a population of 66.18 million. The average annual rate of growth of
population in the state, during the decade 1981- 91, was 2.38 per cent per year.
This rate is second highest in the country. Projections made by the Registrar
General of India indicate that the population of the state will to increase to 155
million by the year 2016. About 5.88 percent of the countrys total population
reside in Madhya Pradesh. According to Census of India 2001 the population of
Madhya Pradesh has grown by 24.34 %. According to 1991 Census the total
population of State was 48566242 and as per 2001 census it is now 60386118. The
sex breakup shows that in total population 52.1% are male and rest 47.9 are
female. The sex ratio comes out to be 920 female per 1000 male, which is slightly
lower than all India average of 933. The total population is spread in 55.1 thousand
inhabited villages and 394 towns out of total population
 15

Economy & Industry

Overview

Madhya Pradeshs economy largely depends on agriculture, industries and

minerals. About 70% of the total work force of the state depends directly or
indirectly on agriculture. Mines and industries play important roles in
economic development of the state. There are many flourishing textile mills
in the state and artificial silk manufacturing plants located at Ujjain, Nagda,
Indore and Gwalior. Public sector industries including the Bhilai Steel plant,
the Heavy Electrical and the Bailadilla are the major achievements. The
Nepa Mills produces newsprint for the country. Diesel engines are
manufactured at Indore and attractive pottery and carpets are produced at
Gwalior.

A sizeable population in the villages makes traditional crafts such as

chanderi sarees, leather and clay toys. Secondary industries such as dyeing,
calico printing and bleaching have also tended to concentrate in areas
producing handloom cloth, silk and wool products. The states wood work
and lacquer-ware are also very famous.

Important minerals found in M.P. are coal and iron. High quality iron-ore is
found in Bastar, Jabalpur and Gwalior. The Panna region is famous for its
diamond belt and is well known for the production of diamonds. Bauxite and
marble are also found in several districts of Madhya Pradesh.

Agriculture: Madhya Pradesh is one of the leading producers of pulses like

urad, mung and arhar. About one-fifth of the countrys total production of
pulses comes from this state. Other min crops produced in Madhya Pradesh
are wheat, soyabean and mustard.
 16

The State Economy

Between 1994 and 2003, the compounded annual growth rate of bifurcated
Madhya Pradeshs real NSDP was 2.6 per cent, increasing from US$ 7.5
billion to US$ 9.8 billion.

During 1993-94 to 2002-03 Madhya Pradeshs economy grew at average

annual growth rate of 3.7 per cent. In 2002-03, Madhya Pradeshs per capita
income stood at US$ 254.

During the past decade (1993-2003), the share of agriculture in Madhya

Pradeshs economy reduced from 46 per cent to 24 per cent. In the same
period, the share of industry and services increased by 7 per cent and 5 per
cent respectively, indicating a positive trend in the states economic
development.

sector contribution of GDP

24%

41%
service
agriculture
industry

35%

Source: Review of Madhya Pradesh Economy,

CMIE, August 20
 17

Industrial Promotion Policy

For carrying out rapid industrial development in the state, the government of
Madhya Pradesh has formulated an industrial promotion policy 2004 which
is liberal enough for investment. The objectives of the new industrial
promotion policy are to create industry-friendly administration, to maximize
employment opportunities, to tackle industrial sickness, rationalize rates of
commercial taxes and enlist participation of private sector in the efforts of
industrialization. For more information on industrial policy.

To make Madhya Pradesh an attractive destination for industrial investment,

the state government has recently adopted the Industrial Promotion Policy
2004.The main thrust of the policy is:

Effective implementation of single window system through

establishment of a Madhya Pradesh Trade and Investment Facilitation
Corporation

Promotion of different industrial clusters in the state, in view of

availability of raw material, skilled labour and market

Enhancement of infrastructure in the identified industrial clusters

Revival of sick industrial units by granting special packages

Setting up of an Industrial Infrastructure Development Fund

 18

Major industrial sectors

Beverages & Soft Drink Based Industries
Food Processing Based industries
Forest Based Industries
Electrical Engineering Based Industries
Electronic Engineering Based Industries
Mechanical Engineering Based Industries
Drugs& Pharmaceuticals Based Industries
Chemical Based Industries
Petrochemical Based Industries
Agro Based Industries
Basic Metal Based Industries
Non Metalic Minerals Based Industries
Textile Based Industries
Leather Based Industries
Rubber & Plastic based Industries
 19

Business & Economy Of Madhya Pradesh

The economy of Madhya Pradesh is dominated by agriculture, on which 80
percent of the state's population depends for their livelihood. The principal
crops of the state are rice, wheat, rapeseed, mustard and soyabean. It leads
the country in the production of pulses and accounts for one-fifth of the total
production of pulses in the country. 75 percent of the national output of
soyabeens are produced by Madhya Pradesh. Besides that the black soil of
the Malwa region facilitates cotton cultivation.

The abundance of forests in the state also gives an impetus to the business
and economy of Madhya Pradesh. The primary forest produce of Madhya
Pradesh include teak, sal, high quality timber wood and tendu leaves, all of
which have significant economic ramifications for the rural economy. The
important minerals of the state are coal, iron ore, limestone manganese and
bauxite. The Panna region of Madhya Pradesh is renowned for the
production of diamonds.

The state has a number of textile mills and artificial silk manufacturing plants
in Ujjain, Indore and Gwalior, and Bhilai Steel Plant is perhaps the most
important industrial endeavour of this state. Furthermore, Indore is famous
for the manufacturing of diesel engines, while Gwalior is the address of
exquisite pottery and carpets. The major industrial sectors of Madhya
Pradesh include beverages and soft-drink based industries, food processing
based industries, forest industries, drugs and pharmaceuticals industries,
agro-based industries, basic metal industries, chemical based industries and
electrical engineering based industries.

Traditional village crafts also play an important role in the business and
economy of Madhya Pradesh. Madhya Pradesh has deservedly attracted
fame for its traditional village crafts, which are amply reflected in Chanderi
sarees, leather and clay toys. The wood work and lacquer-ware of Madhya
Pradesh are also nationally renowned.

However, though agriculture accounts for maximum employment in the

state, it contributes only 25 percent to the state's GDP. Services sector
accounts for 41 percent of the state's GDP, which shows that the business
and economy of Madhya Pradesh is gearing towards the modern trends,
 20

despite having its roots firmly entrenched, literally in the soil.

Business Opportunities
Key Industries
The economy of Madhya Pradesh is largely natural resource driven,
leveraging the states advantage in agriculture and mineral resources. The
key industries and sectors where Madhya Pradesh has competitive
strength include cement, textiles, mining and food-processing.

Cement
Madhya pradesh has 3,625.98 million tonnes of limestone reserves. The
districts of Balaghat, Damoh, Dhar, Hoshangabad, Jhabua, Katni,
Khargone, Mandsaur, Morena, Narsinghpur, Panna, Rewa, Sagar, Satna
and Sidhi are rich with limestone reserves. The state has seven major
cement plants, with an annual installed capacity of 15.97 million tonnes.
The availability of quality raw material, cheap labour and good industrial
infrastructure has made Madhya Pradesh, the perfect choice for cement
producers in the country. The sector has a potential of attracting an
additional USD 2.5 billion of investment.

Cement production in Madhya Pradesh reached 15.1 million metric ton

during 2003-04, accounting for 13 per cent of the national Production.
There are seven major cement plants in the state.

Prominent cement companies present in the state include ACC, Grasim

Industries, Jaiprakash Associates,Century Textiles and Mysore Cements.

Auto and Auto Components

About 60 per cent of the auto industry in MP is dominated by auto
component players. The size of the auto component industry in Madhya
Pradesh is around USD 306 million. The Union Government of India has
sanctioned an auto cluster in the Pithampur industrial area. The
Government of India will grant an amount of USD 11 million. Madhya
Pradesh has developed an industrial cluster at Pithampur to provide
readily available infrastructure for companies to set up manufacturing
facilities. This estate spreads over an area of 5,000 hectares.
 21

Hindustan Motors plan to invest around US$ 16 million over a period of

four years to manufacture and supply automobile engines at ransmission
units to Ford India.

Prominent automobile and auto component players present in Madhya

Pradesh are Kinetic Motors, Eicher Motors, Bajaj Tempo and Hindustan
Motors. Some investment in the pipeline in this sector are Baja Tempos
plans to invest US$ 80 million.

Textiles
Madhya Pradesh has got the best business opportunity in the field of
textile manufacturing. There are a large number of cotton textile mills
located in Indore, Ujjain and Burhapur. Some of the key industry players
in the state are Bhaskar , Bhilwaras, Indo-Rama, Maikal Oswals,
Parasrampuria and S Kumar.

Madhya Pradesh produces 157,000 ton of spun yarn representing 6 per

cent of Indias total production and 38.6 million sq mt of fabric
(mill made) accounting for 4 per cent of all India production.

The states key competitive advantage in the textile industry is the

availability of raw material (cotton) and a skilled workforce. In 2002, the
state produced 390,000 bales of cotton, representing 4 per cent of Indias
cotton production .The production of cloth stood at 52 million meters in
2002-03.

The phasing out of export quota is expected to provide a fillip to Indias

textile industry. With the global trade in textile and clothing expected to
grow from US$ 356 billion at present to US$ 600 billion by 2010,
Madhya Pradesh has an opportunity to leverage its existing strengths and
capture a larger share of textile market.
Mahavir Spinning Mills plans to invest US$ 160 million in an integrated
textile unit near Bhopal. The unit is to be developed in two phases in a
span of five years. The unit will produce 50 million metric ton of
processed fabric.
 22

Textile Infrastructure in Madhya Pradesh

Composite mills 20

Exclusive weaving mills 08

Export oriented weaving mills 12

Handlooms 47000

Looms 6500

Powerlooms 43290

Rotors 17524

Spindles 14348

Spinning units 40

Mining
Madhya Pradesh is endowed with significant mineral resources. With 604,000
carats of proven diamond reserves it accounts for 99 per cent of Indias total
reserves. It is the sole producer of diamonds in the country. It also leads the
country in the production of copper ore, slate, pyrophillite, diaspore, and is second
in production of rock phosphate, clay and laterite. The state has the countrys
largest open cast copper mine at Balaghat and the thickest coal seam of Asia at
Singrauli coalfield in Sidhi district.

Madhya Pradesh is endowed with significant mineral resources. With 604,000

carats of proven diamond reserves it accounts for 99 per cent of Indias total
reserves. It is the sole producer of diamonds in the country.

The state has the countrys largest open cast copper mine at Balaghat and the
thickest coal seam of Asia at Singrauli coalfield in Sidhi district. The mining and
quarrying sector contributed to 4.5 per cent of the states GSDP (at current sprices)
in 2008-09.
 23

Madhya Pradesh - Production of key minerals, 2008-09

Unit Production % share- All India

Fuel Minerals

Coal 000 ton 45414 14

Metallic Minerals

Copper Ore 000 ton 2101 81

Manganese Ore ton 329265 21

Non-Metallic Minerals

Barium Carbonate ton 142285 23

Diamonds carats 62071 100
Diaspore 7847 59
Fire Clay ton 58105 12
Limestone 000 ton 21512 16
Other clays ton 164617 31
Pyrophylite ton 94351 63

(Source: Review of Madhya Pradesh Economy, CMIE, August 2008)

 24

Edible oils

Madhya Pradesh is among the leading producers of edible oils in India and the
largest producer of oilseeds among the states. In 2002-03, the state produced 3
million tonnes of oilseeds, representing over 20 per cent of Indias production. The
state government has taken steps to facilitate further development of the food
processing industry in the state. These include setting up Food Parks with private
investment. At present, six Food Parks are under implementation in various parts
of the state. Prominent investors in Madhya Pradeshs edible oil industry are Ruchi
Soya, MP Glychem and Vippi Industries. Ruchi Soya is expanding the capacity of
its edible oil refinery at Indore from 600 tonnes per day to 1,000 tonnes per day.
Prosoya Foods, a subsidiary of ProSoya Inc. Canada has set up a soya milk
extraction plant in Madhya Pradesh.

IT and ITS Infrastructure

Four Software Technology Parks (STP units) to be set up in Bhopal., Indore and
Gwalior. There are 38 IT engineering colleges in the state providing education to
future IT professionals. Large IT players, such as HCL and Genpact have shown
interest in setting up the facilities in the state.

IT Parks Location
Crystal IT Park (5,50,000 Sq. ft.) Indore
Hardware and software technology Park (200 acres) Bhopal
Software Technology Park (1,00,000 Sq. ft.) Indore
IT Park (50 acres) Gwalior

Investments
Investment climate in Madhya Pradesh has remarkably grown to offer the best that
an investor can think of. The state has an abundance of natural resources, such as
water, minerals and ores, power and electricity and labour force. The geographical
and climatic conditions are also much encouraging for investment in Madhya
Pradesh. A lot of investment opportunities exist in agro-based industry sector. The
state government is much considerate about a favorable investment policies and
allows heavy incentives.
 25

Within manufacturing, key sectors include chemicals, machinery, transport

equipment, non-metallic mineral products, metals and rubber. Among services,
transport and community services including hospitals and tourism have the
dominant share of investment. The key sectors attracting heavy foreign direct
investment are fuels, metallurgical industries, textiles, among others .

distribution of investment

5%

23%
19% irrigation
manufacturing
electricity
services
15%
mining

38%

(Source project today database 2008)

 26

Potential Hubs for Investment

As a result of the states aggressive incentive policies, a number of sectors are

emerging with substantial potential for private investment and business. The most
prominent among them are automobiles and auto ancillary products and
pharmaceutical sectors.

Automobiles & auto components

Madhya Pradeshs location at the centre of India has led to its emergence as an
important destination for automobile and auto component industry. The industrial
belt around Indore has production facilities for a number of automobile
manufacturers. A network of vendors supplying auto components to these plants is
being established.
While Madhya Pradeshs current share in Indias total automobile sector output is
relatively small, it is expected to witness a significant increase. The projected
growth rate for Indian automobile market is over 10 per cent per annum; this
presents significant opportunity to the state. Prominent automobile and auto
component players present in Madhya Pradesh are Kinetic Motors, Eicher Motors,
Bajaj Tempo and Hindustan Motors.
Some investment in the pipeline in this sector are Baja Tempos plans to invest
US$ 80 million to manufacture heavy and light commercial trucks in technical
collaboration with Maschinenfabrik Augsburg-Nurnberg (MAN) of Germany at
Pithampur; Kinetic Motors new production line for manufacturing the Italjet range
of scooters at Pithampur and Hindustan Motors plan to invest around US$ 16
million over a period of four years to manufacture and supply automobile engines
and transmission units to Ford India.

Pharmaceuticals
By leveraging the existing manufacturing base, along with a low cost resource
pool Madhya Pradesh has a potential to further develop the pharmaceutical
industry in the state. Ranbaxy, Indias leading pharmaceuticals company, has a
bulk drug and formulation plant at Dewas in Madhya Pradesh. IPCA Laboratories
plans to invest US$ 22 million to expand its formulations capacity at Ratlam and
invest US$ 14 million to set up a new export oriented formulations unit in Indore.
 27

The plant will come up in the SEZ and will be built according to USFDA
specifications. Nicolas Piramal is investing US$ 7 million to invest in its
opthalmology products facility at Pithampur. Biofill Pharma plans to invest US$
25 million in Pithampur and Lupin Laboratories is expanding its manufacturing
plant at Mandideep with an investment of US$ 4.5 million. Potential Hubs for
Investment.
 28

Madhya Pradesh Sugar Industry

Madhya Pradesh Sugar Industry is known to be one of the largest contributors to

India's sugar industry. The sugar industry in Madhya Pradesh is comprised of a set
of sugar mills located in various parts of the city. A large part of revenue in the
Indian economy is earned from its sugar industry.

The areas of Madhya Pradesh where sugar factories have been set up include
Shivpur, Narayanpura, Kareli, Babai, Banapura, Timami, Betul, Sanawad,
Bhorawah, Navalnagar, and Nepanagar. Naturally, these are the areas in Madhya
 29

Pradesh where sugar production is highest. Some of the sugar factories in Madhya
Pradesh that have been doing really well are as follows:

Indo Euro Industries Ltd (Betul)

The Bhopal Sugar Industries Ltd. (Babai, Dist. Hoshangabad)

Nepa Limited (Nepanagar, Burhanpur, Khandwa)

Raigarh S.S.K. Ltd (Sarannagar, Dist. Raigarh)

J. K. Arora, Som Agro Products Ltd (Timarni-Harda, Dist. Hoshangabad)

M.P. State Agro Industries Dev. Corpn. Ltd (Narainpur, Teh.- Raghogarh,
Dist.- Guna)

Chattisgarh S.S.K. Ltd (Kurud, Dist. Raipur)

Bhaskar Industries Ltd Shivpur-Kala, Dist. Morena)

Shree Vindhya Papar Mills Ltd (Sanawad, Teh.Barwaha, Dist. Khargone)

General Foods Ltd (Banapura, Harda, Dist. Hosangabad)

Naveen Jindal (Sarang Garh, Dist. Raigarh)

Krishak S.S.K. Ltd (Narayanpura, Raghogarh, Guna)

Jawaharlal Nehru Sahakari Soot Mill Ltd (Bhorahwa, Kasarawad, Dist.

Khargone)

M/s. Orient Cartons (P) Ltd (Teh. Kareli, Dist. Narsingpur)

Navalsingh S.S.K. Maryadit (Navalnagar, Burhanpur, Khandwa East Nimai)

The Sugar Industry is the second largest industry in agricultural sector after the
textile industry. There are more than 45 million sugarcane producers all over India
and a large part of it goes to the Madhya Pradesh sugar industry. The production of
 30

sugarcanes in Madhya Pradesh for 2002-03 was estimated at 0.85 lakh tons but the
production reached 0.94 lakh tons. In 2004-05, the production rate was 0.85 lakh
tons once again.
There are 3 big sugar mills in Madhya Pradesh which are located in the state of
Indore. They are:

Neori Khandsari Sugar Mill

Girdharilal Sugar And Allied Industries

Shiv Khandsari Sugar Mill The Sugar Industry in Madhya Pradesh is one of the
big mill in the state.
 31

Mineral Based Industries In Madhya Pradesh

S.No. Industry No. of Units Location

1 Cement
2 Thermal Power
3 Coal Washeries
Rewa, Satna, Damoh, Katni, Sidhi &
9
Neemuch
Shahdol , Umaria, Sidhi, Satna, Betul,
10
Damoh, Katni, Rewa, Ujjain
3 Narsinghpur, Anuppur, Chhindwara

4 Asbestos Cement
Sheet
5 Ceramics
6 Hydrated Lime
7 Slate Pencil
8 Potteries
9 Refractories
1 Katni
2 Ratlam, & Jabalpur
25 Katni & Satna
155 Mandsour
2 Ujjain
3 Katni, Ratlam & Jabalpur

10 Roofing
8 Hoshangabad & Balaghat
(Manglore)Tiles

11 Marble cutting&
4 Katni
polishing

12 Granite cutting&
5 Chhatarpur, Tikamgarh
polishing
13 Flagstone
150 Shivpuri, Gwalior, Panna &Vidisha
cutting& polishing
 32

Energy Resources Of Madhya Pradesh

Energy resources in Madhya Pradesh have two major types, first

conventional resources and second non-conventional resources. Conventional
energy resources in Madhya Pradesh include coal, petroleum, natural gas, atomic
mineral, and hydropower. Except hydropower, all the other conventional resources
are non-renewable. In Madhya Pradesh, coal is one of the main sources of energy.
Non-conventional energy source includes solar energy, wind energy, biogas,
biomass energy, tidal energy, geo-thermal energy, etc. All these are renewable
energy resources. Energy production in Madhya Pradesh has started from the year
1905. The main energy sources in the state are thermal power, hydropower, wind
and solar energy.
Thermal power is the main source of energy in the state. The main thermal power
plants are located in the main coal producing areas. The main thermal power plants
of Madhya Pradesh are Amarkantak Thermal Power Plant, Satpura Thermal Power
Plant, Chandani Thermal Power Centre, Jabalpur Thermal Power Plant, Sanjay
Gandhi Thermal Power Plant and Pench Thermal Power plant. Satpura Thermal
 33

Power Plant is located in Pather kheda coal area near Itarsi in Betul district, which
is in the north slope of Satpura ranges. The construction in the plant was started in
1962 and completed in 1967. With the establishment of the plant the production
was started in the same year. It is joint venture of Rajasthan and Madhya Pradesh
government.
Hydropower is one of the most important renewable energy resources used in
Madhya Pradesh. Along with declining natural resources due to excessive
utilisation the importance of hydropower is remarkable. In Madhya Pradesh, there
are ideal situations for constructing dam projects, particularly in the western part
where many perennial rivers originate and flow. The hydropower capacity of the
state is 665 MW presently. Some of the main hydropower projects are Gandhi
Sagar Hydropower Centre, Rana Pratap Sagar Hydropower Centre, Kota or
Jawahar Sagar Hydropower Centre, Bergee Project and Ban Sagar Hydropower
Centre. The degenerating trends of traditional energy resources due to excessive
utilisation and limited availability pose severe threat for the future development of
the area or region. The non-traditional resources are eco-friendly resources and
they have much more capacity then to the traditional one. The non-traditional
energy resources are solar energy, wind energy, biogas, biomass, etc. Madhya
Pradesh also has the ideal conditions for the development solar energy generation.
Wind energy is another popular.
The installed electricity generation capacity of Madhya Pradesh is 3,008 MW.
95.66 per cent of Madhya Pradeshs electricity generation capacity is based on
thermal energy with the remaining from hydel generation.
On a per capita basis, electricity consumption in Madhya Pradesh stands at 352
kWh per annum, close to the national average of 355 kWh per annum. Various
electricity projects under implementation in the state aggregate to 790 MW.

Project Installed Capacity (MW)

Hydel Power Projects (2005)

Ban Sagar IV 20
Madhikheda
60
Thermal Power Projects (2008)
Sanjay Gandhi, Birsinghpur Unit V 500
Amarkantak extension 210
Total 790
Source: Madhya Pradesh State Electricity Board
 34

SEZ Indore

The state government has developed a Greenfield Special Economic Zone at

Indore. It has also successfully leveraged private investment in transport. The state
government has been taking steps to strengthen and reinforce a conducive
investment climate for potential investors through progressive policies,
simplification of procedures and investment incentives.

Special Economic Zones: Key advantages

Tax incentives
Faster approvals
Single window zone administration
Superior infrastructure
 35

Public sector undertakings in Madhya Pradesh :

Public sector organizations like GAIL, NFL, CIL, Nepa Mills, Currency
Printing Press, BHEL, HCL, MOIL and a few Ordnance Factories are located in
M.P

Major Industrial Groups in Madhya Pradesh

In Madhya Pradesh there is a significant presence of Blue chip companies of India

and a few well known multinational companies. They are :

Tata N.B.Group ACC

Birla Cocacola J.K.Group
Bhilwara Cadbury S.M.Dychem
Godrej Kinetic S Kumars Group
Procter & Eicher Ranbaxy
Gambel
Hindustan Lever L&T Crompton Greaves
(Thapar Group)
Lupin Optel
 36

Few Large & Medium Industries Under Implementation (Rs. in

crores) :
HP Bottling Plant Maneri 19.32
Maral Overseas Nimrani 30.00
Biofill Pharma Pithampur 110.00
Caparo Engineering Pithampur 30.00
Escorts Malanpur 40.00
Pratibha Syntex Pithampur 85.00
HEG Ltd. Mandideep 500.00
Eicher Group Pithampur 110.00
Coca Cola Pilukhedi 30.00
Lupin Mandideep 20.00
Enbee Pilukhedi 100.00
LG Hotline Malanpur 500.00
JK Industry Banmore 100.00
MOIL Balaghat 20.00
Hindustan Copper Balaghat 80.00
STI Power Chainpura 1175.00
Bina Thermal Bina 2440.00
BORL Bina 5700.00

A picture of Hindustan Motor Plant

 37

A Profile Of Key Players Of Madhya Pradesh

ACC Ltd

ACC is one of the largest cement manufacturing companies in India, with a cement
production capacity of 16 million tonnes per annum. In 2004-05, ACC revenues
stood at US$ 1035 million. ACC is a pioneer in cement and RMC, a leader in
refactories and one of the pioneers in the area of advanced materials.The company
has a countrywide distribution network and manufactures all types of cement. In
Madhya Pradesh, ACC has a 1.7 MTPA cement plant at Kymore.The company
plans to invest US$ 3.3 million to expand its manufacturing capacity of roofing
products at Kymore. This will increase its production from 68,000 tonnes of
asbestos roofing to 78,000 tonnes.

Bajaj Tempo Ltd

Bajaj Tempo is a US$ 190 million manufacturer of utility and light commercial
vehicles, agricultural tractors and diesel engines. It has an automobile
manufacturing plant at Pithampur near Indore. Bajaj Tempo plans to invest US$ 80
million to manufacture heavy and light commercial trucks in technical
collaboration with Maschinen fabrik Augsburg- Nurnberg (MAN) of Germany at
its existing site at Pithampur near Indore.

Birla Corporation Ltd

Birla Corporation Ltd is the flagship company of the MP Birla Group.The

companys main areas of business are jute, cement, synthetic yarn, calcium
carbide, industrial gases, PVC coated fabrics, PVC floor coverings, auto trims,
healthcare and education. Birla Corporation has joint ventures and collaborations
with world leaders like DLW AG of Germany, Rhone Poulenc of France, Sweden-
based Ericsson Cables & AB and ABB, GE, Toshiba and AEI Cables. In 2003-04,
the companys revenues was US$ 276 million and profits over US$ 9 million.

Cadbury India Ltd.

Cadbury India is a subsidiary of Cadbury Schweppes, the worlds largest
confectionery and third largest soft drinks company. Cadbury India had sales of
 38

over US$ 150 million in 2003.The company employs nearly 2000 people across
India. Cadbury India has one of its main production plants at Malanpur, near
Gwalior.

Century Textiles and Industries Ltd

Century Textiles and Industries Ltd is the flagship company of the B K Birla
Group. Century is involved in diversified businesses including cotton textiles and
yarn, viscose filament yarn and rayon, tyre, industrial yarn, cement, paper and
pulp. In 2004-05, it registered sales were over US$ 500 million. Century has
presence in Madhya Pradesh through a cement plant at Satna. The company is
expanding the production capacity of its cement plant at Satna by 0.8 million
tonne per annum. It also has a 100 per cent export oriented cotton yarn and denim
production plant near Indore. The unit has an ISO-9002 certification.

Eicher Motors Ltd

Eicher Motors, part of the US$ 355 million Eicher Group, is a significant player in
the Indian automobile industry. Eicher Motors manufactures and markets
commercial vehicles with Gross Vehicle Weight (GVW) ranging from 5 to 25
tonnes. It is one of the leading manufacturers of commercial vehicles in India. The
company has a manufacturing facility is Pithampur, Madhya Pradesh.This state-of-
the-art plant has a total area of 72 acres with 18000 sq mt as the covered area. It
houses some top-of-the-line equipments, a robust infrastructure and has an annual
production capacity of 30,000 vehicles.The company has a world-class R&D
centre that has helped the company successfully developed a wide range of
commercial vehicles including trucks and buses. The company recently invested
US$ 22 million for manufacturing heavy commercial vehicles at its pithampur
plant.

Nicholas Piramal India Ltd

Nicholas Piramal India Ltd (NPIL) is one of Indias leading pharmaceutical and
healthcare companies with sales of US$ 280 million. NPIL is ranked fourth in
domestic formulations sales and second in total domestic pharmaceuticals sales. Its
Pithampur plant in Madhya Pradesh is accredited by reputed organizations like
Allergan, Novartis, Solvay and IVAX, among others. Nicolas Piramal plans to
invest US$ 45 million to enhance its research and development activities besides
strengthening its manufacturing facilities.
 39

Ruchi Soya Industries Ltd

Ruchi Soya Industries Ltd is the largest edible oil company in India engaged in
refining and trading of edible oils, soybean oil extraction, and export of soybean
meal. It has an annual turnover of over US$ 550 million. In 2003, the company
embarked on an expansion programme at its edible oil refinery at Indore. The plant
capacity is being raised from 600 tonnes per day to 1000 tonnes per day.

Grasim Industries Ltd

Grasim Industries is the flagship of the AV Birla Group, one of the most prominent
Indian business houses.With the recent acquisition of cement business of L&T,
Grasim has become the largest producer of cement in India. Grasim is also the
largest producer of Viscose Staple Fibre (VSF) in India and one of the largest
textile and yarn manufacturers. In Madhya Pradesh, Grasim has a presence through
a cement plant at Jawad, a VSF plant at Nagda and textile & fabric manufacturing
plants near Gwalior.
 40

Tourism industry of Madhya Pradesh

Vision Statement
To promote and sustainable tourism which enables socio economic
development and establishers Madhya Pradesh as a destination that
provides a complete tourism experience.

Set up an institutional mechanism to promote private

investment.
Set up and effective regulatory mechanism for sustainable
tourism.
Provide reception, assistance, information, amenities,
hygiene, security and infrastructure for the tourists.
Adopt the principle of "First Conservation Later Tourism" for
cultural Heritage.
Make eco-tourism an effective tool to sensitise masses
regarding environmental conservation.
Ensure active and coordinated participation of Government
Departments, voluntary organizations, community and all
other stakeholders of tourism sector.

Role of MP State Tourism Development Corporation Ltd

The role of MP state Tourism Development Corporation

Ltd. Shall be as follows:-

Tourism Development Councils

State Tourism Development Council: To provide vision, leadership
and ensure convergence, State Tourism Development Council shall
be set up under the Chairmanship of the Hon'ble Chief Minister of
 41

Madhya Pradesh. Ministers and officers of other Departments,

representatives from the tourism sector, voluntary organization and
other stakeholders shall be nominated as members of this apex
body.
District Tourism promotion council: Efforts are being made at the
local level by District Collectors and others to prom ote tourism
related activities with local synergy. In some districts, Collectors
have registered Societies to enable these activities. To bring about
uniformity, Tourism Department shall prescribe the constitution of
these societies and the manner in which they shall discharge their
responsibilities. The minister in charge of the concerned district
shall chair the Council.

Tourist Places
there are so many tourist places in Madhya Pradesh. Which historic
place of Khajuraho Temple, Mahakaleshwer, and so many wild life
sancturies. Panna national park is also famous for the white tigers.

The total turnover of the tourism industry of Madhya Pradesh is

about to 100million USD.

A picture of panna national park

khajuraho
 42

Conclusion

The vibrancy and buoyancy of Madhya Pradesh economy is unmistakably

clear today, which is supported by a strong entrepreneurial culture of its people and
strong infrastructure focus of its policy makers. All these factors provide the state
with an ideal platform to leapfrog to a much higher growth trajectory, which makes
its performance comparable to global benchmarks.

This global comparative perspective is critical for Madhya Pradesh to dream

bigger and achieve the vision of much improved economic performance. The
government of Madhya Pradesh is actively working on various initiatives and ideas
to continue the momentum at a broader level and gain acceleration for its core
industry sectors. moreover, this can lead to a more broad based improvement in the
living standerds of all sections of Madhya Pradesh society, there by leading to an
inclusive growth environment.

Given the impressive achievements of the state so far, it would be beneficial

for Madhya Pradesh to focus on some key enablers that would fulfill the above
mentioned outlook. We believe that the state government needs to focus on
enhancing three critical pillars of their economic expansion : global networking
and communication, building on the infrastructure and bringing about focused
implementation . global branding, already an advantage for the state, can bring
improved investments; especially in sector that require huge infusion of capital.
The existing infrastructure of Madhya Pradesh now needs to achive global
standerds and this would need active policy intervention. And all of this would
require focused and well executed programme implementation.
 43

Reference

1. www.Google.com

2. www.mapofindia.com

3. www.mp.govt.in

4. www.ibef.com

5. www.madhyapradeshtourism.com

6. Hindustan Time