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Madhya Pradesh: Means Business

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Madhya Pradesh: Means Business. Agriculture/ Agro Processing Industry. Overview. Overview. Madhya Pradesh (MP) – State that means business. MP is the second largest State in the Country stretching over 308,000 sq kms. - PowerPoint PPT Presentation
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1 Madhya Pradesh: Means Business Agriculture/ Agro Processing Industry
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Page 1: Madhya Pradesh:  Means Business

1

Madhya Pradesh: Means Business

Agriculture/ Agro Processing Industry

Page 2: Madhya Pradesh:  Means Business

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Overview

MP is the second largest State in the Country stretching over 308,000 sq kms.

The State is blessed with large mineral resources of coal, diamond, limestone, methane etc.

MP is among the top 4 states of the Country for industrial investments.

Per capita GSDP USD 369**

Manufacturing sector USD 8.5 bn**

(Registered & Unregistered)

Gross state domestic product (GSDP) USD 23,983.63 Mn**

Average growth rate 5.5% per annum

Advantage MP

Total electricity generation capacity 6,449.25 MW*

India’s first greenfield SEZ Indore SEZ

Industrial Centers 8

The State is centrally located

Investor friendly Government policies

Madhya Pradesh has one of the upcoming industrial base in India

Economic Snapshot Madhya Pradesh is emerging as a key growth center for the Country

Madhya Pradesh (MP) – State that means businessOverview

MP is rich in low grade coal suitable for power generation. Potential of hydro-energy generation. Installed power capacity (MP’s share)

Hydel Power Generation: 852.7 MW* Thermal Power Generation: 2,147.5 MW*

Power Electricity generation capacity at present is 6,449.25 MW and estimated to rise to a surplus in 2008-09

*Ministry of Power (powermin.nic.in) **Source: Indiastat.com (as on 23 Feb 2006)

Page 3: Madhya Pradesh:  Means Business

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RO

AD

NE

TW

OR

KA

IRP

OR

TS

RA

ILW

AY

NE

TW

OR

K

• The State is well connected with the rest

of India with almost 425 trains passing

through the State on a daily basis. Of

these 175 trains pass through the State

capital Bhopal alone.

• The total length of roads spanning MP is 67,600 kms.**

• National highways of 5,200 kms run through the State.*

• 18 National highways including trunk routes of Delhi-Mumbai, Delhi-Chennai, Delhi-Bangalore, Delhi- Hyderabad.

• The total length of State highways in the State is 9,885 kms.**

• Convenient linkages to western ports i.e. Kandla Port, Jawahar Nehru Port Trust.

• 25 airstrips.**

• Convenient air links from key Indian cities like Delhi & Mumbai to Bhopal, Jabalpur, Gwalior, Indore and Khajuraho.

• 5 operational airports.

• Indore airport has the capability of handling international cargo.

• An international airport proposed in Bhopal.

Enabling Infrastructure

MP IS CENTRALLY LOCATED AND WELL

CONNECTED WITH ALL MAJOR CITIES IN INDIA

*Source: Department of Road Transport & Shipping (morth.nic.in) **Source: www.destinationmadhyapradesh.com

INDORE BHOPAL

JABALPUR

GWALIOR

KHAJURAHO

Page 4: Madhya Pradesh:  Means Business

4

Third largest producer of

cement in India*

12 blocks with reserves

totalling 2,585 million tons

of coal has been identified

Largest producer of pulses

and oilseeds in the Country

(~75% of soyabean

production)

31% of the State under forest

cover with a largely unexploited

species of rare, valuable

medicinal- herbal plants

Over 2,000 kms of roads

being developed with

Private Partnership (BOT)

Over 18,000 technical

graduates and 230,000

graduates add to workforce

each year

Over 144 BCM of coal bed

methane reserves available

Over 100 agricultural farms with

an area of over 20,000 acres is

available on lease to investor

India’s 1st operational

Greenfield SEZ at Indore

Favourable climatic

conditions for cotton

and over 40,000 power-

looms are driving the

textile industry

Availability of coal and natural gas

(G.A.I.L pipeline) along with support

from Government to make investment

in Thermal Power Plants lucrative

Offers diverse tourists destinations

catering to various segments of

tourism such as religious (Bhojpur),

eco/ adventure (Panchmari), heritage

(Sanchi, Khajuraho) tourism etc.

Madhya Pradesh: A Preferred Investment Destination

Various blocks available

for power, cement, iron

and steel units

*Source: www.mpsidc.org & Brochure: MP Means Business

Page 5: Madhya Pradesh:  Means Business

5

0%

20%

40%

60%

80%

100%Vishakapatnam

Chennai

Greater Noida

Chandigarh

Jaipur

Indore

0

50

100

150Mumbai

Delhi

Bangalore

Chennai

PuneHyderabad

Indore

Bhopal

Ahemadabad

Mumbai(780 Kms)

(MPV - 1000) Pune(800 Kms)

(MPV - 206.51)

Bangalore(1400 Kms)

(MPV - 254.52)

Chennai(1430 Kms)

(MPV - 362.84)

Hyderabad(840 Kms)

(MPV - 257.9)

Delhi(740 Kms)

(MPV - 789.5)

Ahmedabad(570 Kms)

(MPV - 220.63)

Kolkata(1350 Kms)

(MPV - 613.19)

Key Markets

(Distance From Bhopal)

MPV – Market Potential Value

Source: (Reference: RK Swamy)

MP: The Right Place with the Right Environment

MP is centrally located. The State is at an easy distance from

all the key consumer markets in the Country.

DESTINATION MADHYA PRADESH

- Distances rounded off**Source: India Today (September ‘06 Issue)

Fastest mover* in overall

performance among the

big States in the Country.

Fastest mover in agriculture

Fastest mover in

infrastructure development.

Ranks 2nd in terms of

governance.

Ranks 3rd in terms of law &

order

Cost of skilled labour is USD

2.4/day vis-a-vis USD 3.5 –

USD 4.0/day in metros

* Fastest mover is the State where the rate of improvement between 2003 & 2006 was greater than that between 1991 & 2003

Bhopal and Indore have substantial cost

advantages, even when compared to other Tier

III and IV cities.

Savings in Office Space Rates

(A comparison of rates in Central Business Districts)

The cost of land is one of the lowest in the Country. Even central hubs such as Indore and Bhopal fare well against other cities in terms of low land cost.

(Estimated Values for Multi-product SEZs)

Savings in Land Cost

Page 6: Madhya Pradesh:  Means Business

6

Industrial Policy: Catalyst for the InvestmentsThe Government of MP has devised an investor friendly industrial policy,

which is aimed at achieving global competitiveness. The policy emphasizes

on industrial growth in the state through adopting cluster approach,

establishing specialized infrastructure and offering favourable incentives.

The main thrust of this policy is:

• Establishment of a Madhya Pradesh Trade and Investment

Facilitation Corporation which would take decisions about

rationalization of taxes, facilities of mega projects and other related

matters.

• Enacting an Industrial Facilitation Act and to change the rules of

business with a view to make single window system decisive and result

oriented.

• Developing infrastructure for supporting the identified industrial

clusters

• Reviving closed down/ sick industrial units by granting special packages.

• Attractive incentive schemes.

CLUSTER APPROACH

• Indore – Pharmaceutical, Textile, Food Processing, IT, Auto Components

• Bhopal – Engineering, Biotechnology, Herbal, IT, Food Processing

• Jabalpur – Garment, Mineral, Forest & Herbal, Food Processing

• Gwalior – Electronics, IT, FMCG, Engineering, Food Processing

• Rewa – Refractories, Lime Stone, Forest Based

• Sagar – Mineral Processing

• Special package for Mega Projects on project basis by apex level investment promotion empowered committee headed by the Chief Minister.

• Industrial investment promotion assistance – 50% to 75% of commercial tax for 3-10 years

• Concessional registration charges and stamp duty exemption for Term Loans.

• Interest subsidy on term loan for 5 – years @ 3% to 5%.

• For thrust sector industries, 25% capital subsidy would be provided limiting up to a maximum of USD 56,000

• Land on 75% concessive rate for Mega Projects limited to USD 4.4 million.

• Entry tax exemption for 5 years.

• 5 years electricity duty exemption on captive power generation

• 15% capital subsidy to SSI up to USD 33,000 in backward areas

• Infrastructure grant up to USD 0.22 million crore for developing private sector industrial parks

• Partial reimbursement for Project report, ISO Certification, Patent and Technology Purchase cost

SPECIAL INCENTIVES

SP

EC

IALI

ZE

D I

NF

RA

ST

RU

CT

UR

E Crystal IT Park Indore

Food ParksMandsaur, Khargone, Chhindwara, Hoshagabad, Mandla and Bhind

Stone Park Katni

Herbal Park Rewa

Granite Park Chhatarpur

Life Sciences Project Bhopal

Apparel Park Indore (SEZ)

Gems & Jewellery Park Indore

Page 7: Madhya Pradesh:  Means Business

7

Area Developed: 2,492 Hectares

Allotted: 1431 Hectares

Units established: 575

Major Groups: Tata, Ranbaxy, Eicher,

Bridgestone, Hindustan Motors, Kinetic,

SRF, S Kumars, Gajra, Nicholas Piramal,

Indorama, IPCA, Bhilwara

Special Infrastructure: SEZ, Crystal IT

Park, Food Park, Apparel Park

In a bid to build a competitive environment; industries and their ancillaries would be promoted in clusters based on the availability of raw materials,

skilled labour and market potential. Under this Industrial Policy through Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd (MPAKVNs)

scheme, the State Government, has identified industrial clusters. Many of the industrial giants have their establishments in these areas, however 44% of

developed area is still untapped and open for investment.

Total developed area

7,147 Hectares

Total allotted area3,089

Hectares

Total units established

1,360

Growth centres 19

Doing Business Made Easy Through MPAKVNIN

DO

RE

AK

VN

Area Developed: 1,330 Hectares

Allotted: 618 Hectares

Units established: 286

Major Groups:HEG, Crompton

Greaves, P&G, Godrej, Lupin, IFB,

Oswal, Nahar

Special Infrastructure: ICD, Food

Park

Area Developed: 2,262 Hectares

Allotted: 800 Hectares

Units established: 326

Major Groups: JK, Surya Roshini,

Godrej, Grasim, Cadbury, Hotline,

Crompton Greaves

Special Infrastructure: ICD, Food

Park

Area Developed: 273 Hectares

Allotted: 115 Hectares

Units established: 121

Major Groups: Birla, Jaypee

Special Infrastructure: Integrated

infrastructure development centres

(IIDC)

Area Developed: 790 Hectares

Allotted: 125 Hectares

Units established: 52

Major Groups: Raymond, Hindustan

Petroleum, PBM, Ayur

Special Infrastructure: Stone Park,

Food Park

BH

OP

AL

AK

VN

GW

AL

IOR

AK

VN

JAB

AL

PU

R A

KV

N

RE

WA

AK

VN

Pithampur, Kheda, Dewas, Maksi, Megh Nagar

Malanpur, Malanpur Phase II, Banmore, Chainpura, Siddhgawan, Pratappura

Rewa, Waidhan

Borgaon, Maneri, Purena

Mandideep, Pillukhedi,

Mandideep Phase II

Source: MPSIDC

Page 8: Madhya Pradesh:  Means Business

Agriculture/ Agro-Processing

Page 9: Madhya Pradesh:  Means Business

9

Agriculture: Evolving Landscape

MP: Background of Agriculture

Location Analysis

Advantage MP

Contract Farming…. A Future Trend In Agriculture

Way Forward MP As An Investment Destination

Connecting Further

Sector Profile: Agriculture/ Agro Processing

Page 10: Madhya Pradesh:  Means Business

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• Agriculture in India has always been the most important economic sector. The

sector accounts for around 24% of the GDP, it plays a fundamental role in the

Indian economy whereby it employs 65% of the working population.

• Agriculture is fundamental to the Indian social structure, political stability and

industrial growth.

KEY FEATURES of INDIAN AGRICULTURE INDUSTRY

• Agriculture sector alone accounts for 18% of the total value of the country's

exports.

• Apart from being the largest producer of pulses, tea and milk, 51 major crops of

the world are also produced in India.

• India is also the second largest producer of wheat, rice, fruits, vegetables,

ground nut and sugarcane.

• India is the world's second largest producer of food and agricultural produce

after China and has the potential of being the largest agricultural Country.

• India is one of the world’s major food producers and accounts for almost 1.5% of

international food trade.

• The Indian agriculture industry is on the brink of a second round of revolution. This

will be driven by two key factors:

Modernization of the entire food chain

Doubling the total food production in the next ten years

Agriculture: Evolving Landscape

India’s Competitive Advantage

• Diverse Agro climatic conditions

• Sufficiency of inputs/ raw materials

• Cost effective labour

India has

• Total Geographical Area – 328 Million Hectares

• Net Area Sown – 142 Million Hectares

• Gross Cropped Area – 190.8 Million Hectares

Agro Processing Sector in India

• Employs over 12 million persons

• Constitutes for 13% of manufacturing GDP.

Understanding the large social impact that agriculture has

on the society, the Government has taken several

initiatives to promote the growth of the sector.

Over the next two decades, the National Policy on

Agriculture aims to attain:

• A growth rate in excess of 4% per annum in the

agriculture sector;

• Growth that is based on efficient use of resources

and conserves soil, water and bio-diversity;

• Growth with equity i.e. growth which is widespread

across regions and farmers;

• Growth that is demand driven and caters to domestic

markets and maximizes benefits from exports of

agricultural products.

• Growth that is sustainable technologically,

environmentally and economically.

Page 11: Madhya Pradesh:  Means Business

11

• MP is the second largest state in the Country with an estimated

population of about 60 million. Agriculture is predominant sector in the

state with 75% of rural population largely dependent on it. This results

in wide availability of manpower at a reasonable cost.

• The agriculture sector forms almost one-third of the GSDP and forms

the backbone of the MPs economy

• The State has 5 crop zones, 11 agro climatic regions and 4 soil

types, which add to the biodiversity in the State and acts favourable for

the production of various crop types.

• Madhya Pradesh is the largest producer of pulses and oilseeds in the

country. The State also shares a major share of the National agriculture

production. About 25% of pulses and 40% of grams are grown in the

state.

• The State is the largest producer of soya bean and gram and the

second largest producer of jowar and masoor in the Country

• The agricultural land in the district Narsinghpur is considered to be the

most fertile land all over Asia. The district is famous for its rich

agricultural production.

Cereals Wheat, Sorghum (Jowar), Maize, Paddy

Oilseeds Soybean, Mustard, Linseed

Pulses Gram, Pigeon Pea (Tur), Lentil (Masoor)

VegetablesGreen Peas, Cauliflower, Okra, Tomato, Onion, Potato

Fruits Mango, Guava, Orange, Papaya, Banana

Spices Chillies, Garlic, Coriander, Ginger, Turmeric

Table 1: Major Agriculture & Horticultural Crops in MP

MP: Background of Agriculture

INDIA SOYABEAN PRODUCTION

Maharashtra, (28%)

Rajasthan, (9%)

Others (3%)

MP, (60%)

Source: www.mpmandiboard.com

Page 12: Madhya Pradesh:  Means Business

12

Crop/ Crop Group

First Position

% ShareSecond Position

% ShareThird

Position% Share

Total PulsesMadhya Pradesh

21.38Uttar

Pradesh19.77 Maharashtra 18.51

Total Oilseeds Gujarat 22.42Madhya Pradesh

22.10 Rajasthan 15.82

Jowar Maharashtra 46.09Madhya Pradesh

14.11 Karnataka 11.03

MaizeAndhra Pradesh

16.61 Rajasthan 13.86Madhya Pradesh

12.39

Arhar Maharashtra 29.11Uttar

Pradesh17.30

Madhya Pradesh

11.39

GramMadhya Pradesh

40.33Uttar

Pradesh18.40 Maharashtra 10.61

MasoorUttar

Pradesh48.54

Madhya Pradesh

23.30 Bihar 15.53

Soya beanMadhya Pradesh

59.92 Maharashtra 28.14 Rajasthan 8.78

• Out of the total gross cropped area 59% is

sown in the Kharif season and 41% in the

Rabi season.

• The statistical data about the position of MP

with respect to the major crops in

comparison to the other states is shown in

Table 2. The percentage share refers to the

contribution of the State towards the total

national production of the respective

commodity.

• It can be seen that state stands first in

production of soyabean and gram, second

in the production of jowar and masoor and

is third for the production of arhar and

masoor.

• Madhya Pradesh leads in spices production with the largest production of garlic, accounting for 37% of the total national production

• The state is the second largest producer of Coriander in the country.

• Malwa potato grown in the western part of the State (malwa region) has a quality that has been proven useful for the potato chips

processing*.

• MP’s share in the total national production of Pea is 15 %.

In the State, the multiple cropped area is about 24% which can be exploited for cultivation at any time of the year irrespective of the season

MP: Background of Agriculture

Source: www.mpmandiboard.com

Page 13: Madhya Pradesh:  Means Business

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I

II

III

IV

Location Analysis - Soils of MP

S.NO TYPES OF SOIL AND %AGE NAME OF DISTRICTS

IMedium & Deep Soils

(52.95%)

Narsingpur, Hosangabad, Harda, Shahdol, Umaria, Jabalpur, Katni, Sagar, Damoh, Vidisha, Raisen, Bhopal, Sehore, Rajgarh, Ujjain, Dewas, Shajapur, Mandsaur, Neemach, Ratlam, Jhabua, Dhar, Indore, Khargone, Barwani, Khandwa, Guna(Partly), Shivpuri(Partly),Datia (Partly), and Sidhi (Partly)

IIAlluvial Soils

(10.90%)Gwalior, Morena, Sheopurkala, Bhind

IIIShallow & Medium Black Soils

(9.86%)Betul, Chhindwara and Seoni

IVBlack Soils

(26.39%)

Mandla, Dindori , Balaghat, Rewa, Satna, Panna, Chhatarpuur, Tikamgarh, Shivpuri.(Partly), Guna (Partly), Datia(Partly), and Sidhi(Partly)

• The State has 4 different soil types available in four distinct parts. The western and central regions are covered by medium and deep

soils constituting 53% of the soil area. The eastern part of the State is primarily covered by black soils which comprises of 25-26% of the

total geographical area.

• Most of the State’s potential in agriculture lies in the

central and western zones. These zones are rich in medium

and deep soils consisting of several agri export zones and

would be ideal for setting up industrial ventures.

I

III

II

IV

Medium & Deep Soils Alluvial Soils

Shallow & Medium Black Soils

Black Soils

SOIL TYPES IN MP

Source: www.mp.nic.in/agriculture/soils.htm

Page 14: Madhya Pradesh:  Means Business

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COTTON/ JOWAR

Location Analysis - Crop Zones of MP

Cotton/ Jowar crops can be grown in the western, north-

western and south-western part of MP. Such crops are

grown in the regions having medium & deep soils.

WHEAT/ JOWAR

Wheat/ Jowar crop zones are predominant in the northern

strip of the State. Some southern areas of the State can

also be tapped for such commodities. It is evident that

these crops have the potential of growing in all the soil

types prevalent in the State.

RICE ZONE

This zone is confined to the eastern part of the State where black soil type present. Only five districts/ centers produce this crop.

WHEAT/ RICE ZONE

These crop zones are present in the eastern part of MP where the soil type is black soil

WHEAT ZONE

This crop zone is in the central part of the state. Again it is evident that these crops have the potential of growing in diverse soil types.

Cotton/Jowar Wheat/Jowar

Rice ZoneWheat/ Rice Zone

Wheat Zone

• Different crops can be grown in different parts of the State during

different seasons, thereby having uninterrupted agricultural

activities throughout the year.

• The distribution of different crop zones across whole of Madhya

Pradesh reflects the bio diversity of the state.

Source: www.mp.nic.in/agriculture/acr.htm

Page 15: Madhya Pradesh:  Means Business

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Location Analysis - Agri Export Zones* in MP

With the objective to promote agricultural exports from the country and

remunerative returns to the farming community, the concept of the Agri Export

Zones (AEZ) has been initiated by the Government under all aspects of

efficient agri practice such as production, R&D, post harvest management,

packaging, leading to final exports. Further market promotion and

development are also undertaken in the AEZs.

• To facilitate promotion and development of specific products,

several AEZs (Agri Export Zones) have been identified in the

State of Madhya Pradesh. These zones have been set up for

facilitating export of specific products from a geographically

contiguous area.

• The AEZs are present at such a location that it is easy to source

the raw materials and hence developing the final product.

• The concentration of AEZs is more towards the Eastern and

North eastern parts of the State and the investors can look

forward to tap these regions of the State for their investments.

Especially MNCs who have operations abroad and want to grow

in terms of international trade can harness opportunities in

these areas.

• The commodities that can have an immense potential are

potato, spices (in the western parts), pulses (in the central part

of the State), wheat (in the western and central regions) and

oranges (south districts).

AGRI EXPORT ZONES IN MP FOR VARIOUS PRODUCTS/ CROPS

*

Potato, Onion & Garlic

Seed Spices, Coriander & FenugreekWheat

Pulses Oranges

Source: Brochure from MPSIDC

Page 16: Madhya Pradesh:  Means Business

16

Advantage MP

STATE/ CITYDISTANCE FROM

BHOPAL

Delhi 740 km

Mumbai 780 km

Ahmedabad 570 km

Hyderabad 840 km

Bangalore 1400 km

Kolkata 1350 km

Pune 800 km

Vadodara 510 km

Distances Rounded off

• MP is the most biodiverse state in the country with 11 agro

climatic zones, 5 crop zones and 4 zones varying in soil types.

• The soil and agro climatic conditions are suitable for rapid

agricultural development.

• The state has a strong base in horticulture.

• The state is set in centre of the nation’s commercial activities.

It is located at an easy distance from all the major agricultural

markets in India.

• About 75% of the population of the state is largely dependent

upon agriculture for their livelihood. This ensures easy availability

of manpower at a relatively lower retention cost.

• The State has a large network of primary agricultural co-

operative societies playing a crucial role in supplying agricultural

inputs including seed, fertilizer and pesticides in the far flung

areas.

• The State has sufficient notified agricultural market yards and

sub market yards which provide facilities for sale of

agricultural produce.

• Farm mechanization is being promoted in the state by the

Directorate of Agricultural Engineering.

• Despite the potential the state has, the rate of prime land in the

State is amongst the lowest in the country, thereby offering an

advantage to the investor by reducing their capital investment

cost.

Page 17: Madhya Pradesh:  Means Business

17

• Contract farming is an emerging concept in MP that provides vast opportunities for

potential investors wherein the production and supply of agricultural/ horticultural

produce are pre agreed under forward contracts between producers/ suppliers and

buyers. The contract details the type of agri commodity required at a time and a price,

and in the required quantity.

• Contract farming provides a proper linkage between the farm and the market

Contract Farming…. Future Trend in Agriculture

BASIC ELEMENTS OF CONTRACT FARMING

• Pre-agreed price

• Quality or acreage (minimum/maximum)

• Time

BENEFIT TO THE FARMER

• Assured market for their produce

• Adequate & quality agri input supplies

• Free technical know-how

BENEFIT TO HLL

Contract farming assures supply chain efficiency and hence there are no delays or obstacles in their food processing industry operations

BENEFIT TO RALLIS & ICICI

The two companies are benefited through assured clientele for their products and services

BE

NE

FIT

S O

F C

ON

TR

AC

T F

AR

MIN

GHindustan Lever Ltd. (HLL), Rallis and

ICICI have come together to undertake

contract farming in MP. The role of

each company is as follows:

• Agri inputs and the technical know-

how to the farmers are provided by

Rallis

• The financial support to the farmers

is provided by ICICI (farm credit).

• HLL is the buyback client as the farm

produce is used as the raw material

by the company for its food

processing industry.

BASIC PROTOCOL FOR CONTRACT FARMING

The consortium is now planning to rope in other specialist partners including insurance, equipment and warehousing companies.

CONTRACT FARMING IN MP(A Case Study)

SPONSORS

MANAGEMENT

& ADMINISTRATION

TECHNICAL STAFF

THE PROJEC T

FARMERS

Production determinants:

• Climatic factors• Farmers

response• Quality of

management• Quality of

technology• Financial

incentives• Government

support• External

influences

Page 18: Madhya Pradesh:  Means Business

18

Way Forward…MP as an Investment Destination• Presence of AEZs in the state provide favourable grounds for

investors to tap the opportunities.

• The concept of contract farming is being recognized in MP as

the most promising opportunity for an investor.

The state has identified around 100 agricultural farms with

an area of over 20,000 acres which is available on

lease to investor.

• State has the potential to develop and increase the production of

horticulture crops for each of the 11 Agro-climatic sub-zones.

• Many opportunities are also available at each part of the value

chain in agro – processing industries.

• Ministry of Food Processing Industries sanctions the projects within the

Food Parks. Further to this, the monetary support from the Government of

India is 50% of the proposed investment, limited to a maximum of USD

0.8 million.

• The State Government offers special incentives for the investors looking

forward to invest in the State. The project clearance with approvals are

granted within 15 days of application or submission of project reports and

the Government also offers customized package of concessions on mega

ventures.

• A green field Special Economic Zone (SEZ) has been developed as a

globally competitive investment destination at Pithampur in Indore. Land

allotment has already begun with several units starting commercial

production. Again this SEZ may act as a single point investment

destination for various agro processing companies. Indore, thereby

facilitating their growth along with the growth of the State.

PR

OP

OS

ED

FO

OD

PA

RK

S

MANDSAUR

KHARGONE

HOSHANGABAD

CHHINDWARA

MANDLA

BHIND

FARMING PROCESSING PACKAGING DISTRIBUTION

• The sanction for 6 food parks for the state has already been

obtained. The proposed food parks are coming up in Mandsaur,

Khargone, Hoshangabad, Chhindwara, Mandla and Bhind. The

main objective of the state and central government in setting up

these parks is to help establishment of food processing industrial

estates/ infrastructures by providing assistance for the common

facilities such as research laboratories, cold storages,

warehousing facilities etc.

The other facilities and concession offered by the government include:-

• State capital subsidy for SSI up to ~USD 11,000

• Central Capital subsidy up to ~USD 100,000

• Entry tax exemption up to five years

• ISO-9000 certification cost reimbursement up to ~USD 17,000

• Project report cost reimbursement up to ~USD 6600

• Interest subsidy up to ~USD 89,000

MP

: O

FF

ER

ING

SP

EC

IFIC

IN

CE

NT

IVE

S

Page 19: Madhya Pradesh:  Means Business

19

Commodity Preferred Region Preferred Activity

Potato Indore, Ratlam, Mandsaur, UjjainPotato chips, flakes, potato fries, frozen foods, Ready to cook food, potato extruded snacks

WheatIndore, Ratlam, Ujjain, Mandsaur, Neemuch

Flour mills, bread & bakery, Pastas, Ready made chapatis, Wheat based alcohol fermentatopn

PulsesGuna, Vidisha, Narsinghpur, Chhindwara

Polishing, packaging, pappadums, toasted pulses, snack mixes, Noodles, Dried soup mixes

Oranges Chhindwara, HoshangabadOrange fruit processing, Juices, Squashes, Marmalades

• Eyeing the business opportunity in one of the most bio diverse and strategically located states the players in the agriculture sector will

look forward to MP as the next haven for investment.

• A fair amount of leverage can also be gained by the identified Agri Export Zones across the state. Some of the key opportunities in the

sector have been listed below.

Way Forward…MP As An Investment Destination

Page 20: Madhya Pradesh:  Means Business

20

Connecting Further

MARKFED

MPAgro

Directorate of Agricultural Engineering

MP State Seed Certification Company

www.mp.nic.in/agriculture/markfed.htm

www.mp.nic.in/agriculture/mpagro2.htm

www.mp.nic.in/agriculture/agengg.htm

www.mp.nic.in/agriculture/seed.htm

Department of Agriculture

www.mpmandiboard.comMadhya Pradesh State Agricultural Marketing Board

www.mpkrishi.org


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