1. Madhya Pradesh: Means Business
Roads

2. Overview Overview Madhya Pradesh (MP) – State that means business
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.
Economic Snapshot
Madhya Pradesh is emerging as a key growth center for the Country
Per capita GSDP USD 369**
Manufacturing sector USD 8.5 bn**
(Registered & Unregistered)
Gross state domestic product (GSDP) USD 23, Mn**
Average growth rate % per annum
Advantage MP
Madhya Pradesh has one of the upcoming industrial base in India
The State is centrally located
Investor friendly Government policies
Total electricity generation capacity , MW*
India’s first greenfield SEZ Indore SEZ
Industrial Centers
Power
Electricity generation capacity at present is 6, MW and estimated to rise to a surplus in
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: MW*
Thermal Power Generation: 2,147.5 MW*
*Ministry of Power (powermin.nic.in)
**Source: Indiastat.com (as on 23 Feb 2006)

3. Enabling Infrastructure
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.
MP IS CENTRALLY LOCATED AND WELL CONNECTED WITH ALL MAJOR CITIES IN INDIA
RAILWAY NETWORK
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.
GWALIOR
AIRPORTS
KHAJURAHO
INDORE
BHOPAL
JABALPUR
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.
ROAD NETWORK
*Source: Department of Road Transport & Shipping (morth.nic.in)
**Source:

4. Madhya Pradesh: A Preferred Investment Destination
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)
India’s 1st operational Greenfield SEZ at Indore
Offers diverse tourists destinations catering to various segments of tourism such as religious (Bhojpur), eco/ adventure (Panchmari), heritage (Sanchi, Khajuraho) tourism etc.
Over 100 agricultural farms with an area of over 20,000 acres is available on lease to investor
Third largest producer of cement in India*
Favourable climatic conditions for cotton and over 40,000 power-looms are driving the textile industry
Various blocks available for power, cement, iron and steel units
Largest producer of pulses and oilseeds in the Country (~75% of soyabean production)
Over 18,000 technical graduates and 230,000 graduates add to workforce each year
Availability of coal and natural gas (G.A.I.L pipeline) along with support from Government to make investment in Thermal Power Plants lucrative
Over 144 BCM of coal bed methane reserves available
12 blocks with reserves totalling 2,585 million tons of coal has been identified
*Source: & Brochure: MP Means Business

5. MP: The Right Place with the Right Environment
Savings in Office Space Rates
(A comparison of rates in Central Business Districts)
DESTINATION MADHYA PRADESH
Fastest mover* in overall performance among the big States in the Country.
(780 Kms)
Mumbai
(MPV )
(800 Kms)
Pune
(MPV )
(1400 Kms)
Bangalore
(MPV )
(1430 Kms)
Chennai
(MPV )
Hyderabad
(840 Kms)
(MPV )
Delhi
(740 Kms)
(MPV )
Ahmedabad
(570 Kms)
(MPV )
(1350 Kms)
Kolkata
(MPV )
Key Markets
(Distance From Bhopal)
MPV – Market Potential Value
Fastest mover in agriculture
Fastest mover in infrastructure development.
Bhopal and Indore have substantial cost advantages, even when compared to other Tier III and IV cities.
Savings in Land Cost
Ranks 2nd in terms of governance.
(Estimated Values for Multi-product SEZs)
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
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.
MP is centrally located. The State is at an easy distance from all the key consumer markets in the Country.
* Fastest mover is the State where the rate of improvement between 2003 & 2006 was greater than that between 1991 & 2003
**Source: India Today (September ‘06 Issue)
Source: (Reference: RK Swamy)
- Distances rounded off

6. SPECIALIZED INFRASTRUCTURE
Industrial Policy: Catalyst for the Investments
The 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.
SPECIAL INCENTIVES
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 – 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
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
Crystal IT Park
Indore
Food Parks
Mandsaur, 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
SPECIALIZED INFRASTRUCTURE

7. Total units established
Doing Business Made Easy Through MPAKVN
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.
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: 790 Hectares
Allotted: 125 Hectares
Units established: 52
Major Groups: Raymond, Hindustan Petroleum, PBM, Ayur
Special Infrastructure: Stone Park, Food Park
Area Developed: 273 Hectares
Allotted: 115 Hectares
Units established: 121
Major Groups: Birla, Jaypee
Special Infrastructure: Integrated infrastructure development centres (IIDC)
BHOPAL AKVN
GWALIOR AKVN
JABALPUR AKVN
REWA AKVN
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
Malanpur, Malanpur Phase II, Banmore, Chainpura, Siddhgawan, Pratappura
Total developed area
7,147 Hectares
Total allotted area
3,089 Hectares
Total units established
1,360
Growth centres 19
Rewa, Waidhan
INDORE AKVN
Source:
Mandideep, Pillukhedi, Mandideep Phase II
Borgaon, Maneri, Purena
Pithampur, Kheda, Dewas, Maksi, Megh Nagar
Source: MPSIDC

8. Roads

9. Sector Profile: Roads Roads: Motoring Away MP: Connecting India
MP: Offering Specific Incentives
Government Initiatives: MP Road Policy
MP: An Investment Destination
Way Forward
Connecting Further

10. Roads - Motoring Away
India has one of the largest road networks in the world (over 3.3 million km). The roads carry nearly 70% of freight and 85% of passenger traffic in the country.
Government expenditure on roads in India is significant - 12% of capital and 3% of total expenditure. Investment in the road sector is expected to touch USD billion in As per National Highways Authority of India (NHAI), a total of 23,546 kms of roads would be constructed in the next two years. This construction would be conducted under following four programs, namely:
Golden Quadrilateral (Program Under NHAI)
North-South and East-West (Program Under NHAI)
Port connectivity and other projects
Non NHDP (National Highway Development Program) Projects.
The focus of successive Governments on improving road connectivity across the country, has brought about significant investments in road development.
As per a recent World Bank study, the cumulative funding shortfall over the 10 year period is estimated at USD billion , approximating 39% of the total requirement. The funding gap assumes that all the road user charges generated on the highways are returned to the highway sector. If the current proportion of road-user charge revenue is returned (56%), then available funding for highways would be less than the maintenance needs, and the funding gap would rise to USD billion.
Indian Road Network*
Indian road network of over 3.31 million Km. is second largest in the world and consists of :
Length (In Km)
Expressways
200
National Highways
66,590
State Highways
1,28,000
Major District Roads
4,70,000
Rural and Other Roads
26,50,000
Total Length
3.31 million km (Approx)
Status of National Highways as on 31st July, 2006*
Single Lane/Intermediate Lane
32%
Double Lane
56%
Four or more Lanes
12%
*Source: National Highway Authority of India (

11. DISTANCES OF MAJOR CITIES FROM THE STATE CAPITAL*
MP: Connecting India
MP has a well developed transport infrastructure of roads, rails and airports km* of National Highway runs across the state with total length of the roads estimated around 67,600 km*.
MP has the 3rd largest network of National highways in the Country after Uttar Pradesh and Rajasthan.
Since MP is centrally located within the country, most of the long haul road traffic in the north-south and east-west direction in the country has to pass through the state.
18 National Highways including trunk routes of Delhi-Mumbai, Delhi-Chennai, Delhi-Bangalore, Delhi- Hyderabad complete their stretch by passing through the State.
State highways are of 9885 kms* length, connecting key urban and tourist centers within the state
State roads provide convenient linkages to Kandla Port, Jawahar Nehru Port Trust.
ROAD MAP OF MP
DISTANCES OF MAJOR CITIES FROM THE STATE CAPITAL*
FROM TO
DIST.
Bhopal
Delhi
740 Km
Mumbai
780 Km
Chennai
1435 Km
Bangalore
1400 Km
Hyderabad
840 Km
Kolkata
1350 Km
Kandla
930 Km
Ahmedabad
570 Km
Source: NHAI (
Distances rounded off

12. MP: Offering Specific Incentives
In terms of infrastructure, roads in particular has been recognised as the thrust area by the Government of MP.
In order to promote involvement of the private sector in construction and maintenance of roads, the Government has decided to offer projects on a Build-Operate-Transfer (BOT) basis.
Private sector participation initiative has been taken by MP Government as large funding amounts are required for such mega ventures.
Type Of Projects Identified For Private Sector Participation
Considering the usefulness to serve the economy, the intention of the Government is to involve Private Sector for taking up development of following type of projects on State Highways :
(i) By passes
(ii) Bridges
(iii) Railway Over Bridges
(iv) Widening of existing roads
(v) Ring Roads near big cities.
(vi) Improvement/ maintenance of existing roads etc.
There is a significant opportunity for BOT in the national highways segment as they carry more than 40% of the traffic even though they constitute just about 2% of the total road network in the country.
FEATURES OF MP BOT SCHEME
Foreign investments in the development of selected stretches of State Highways to maintain and operate them generally for a period up to 30 years (concession period) after opening the facility for traffic and the entrepreneur is permitted to collect and retain toll as approved by the Government
Private entrepreneurs will design, construct, maintain and operate the facility from their own resources or funds borrowed from financial institutions, banks, open market etc.
To ensure free flow of traffic, the normal checks by the authorities will be conducted at entry and exit points only. The traffic on such facilities will be normally regulated by the entrepreneur.
Basic facilities for the traffic en route, provision for developing and operating highway related facilities such as restaurants, motels, fuel stations, rest/parking areas, shopping malls, transport nagars and other related facilities could be made. The income from such facilities will also enhance the viability of the project.
The Government is paying special attention towards the quality of roads being constructed. With the number of projects proposed, the private sector participation is foreseen for the overall development of the State.

13. MP: Offering Specific Incentives
The State Government is also focusing on the development of the National Highways that run through the State to promote the participation of private investors. These works include the following:
Rehabilitation of the roads
Maintenance
Construction of new patches
For NHDP in particular, the private sector has responded enthusiastically. Under this programme, projects valued at over USD 1.33 billion are being implemented. The NHDP has been extended to cover a 50,000 km road network, and these future works will be undertaken on a BOT basis (through toll or annuity).
GOVERNMENT DIRECT SUPPORT
The State Government will identify priority projects, and allow the private sector to design, construct and operate the toll roads. The choice of entry/ exit points may be mutually agreed between the Government and the entrepreneur.
The land for highway development will be acquired by the Government and given to the entrepreneurs on certain terms and conditions for the land.
Tax holiday for five years for road infrastructure development project as per the policy decision of Central Govt.
OTHER SUPPORT FROM THE GOVERNMENT
Project Implementation
The entrepreneurs will enjoy full freedom in carrying out the assigned project. However, they will have comply with certain standards, safety of structures, specifications, satisfactory operations and management as laid by the Government.
The Public Works Department (PWD) will play a major role in approvals and implementation.
Registration of entrepreneurs under special category
The State Government has registered entrepreneurs for carrying out work on a B.O.T. basis.
35 firms have already been approved under this category
Modification in B.O.T. contract
Further to the inputs received from the entrepreneurs, the contract agreement to be used for the B.O.T. scheme has been modified and made more comprehensive to facilitate smooth working and execution.
Source:

14. MADHYA PRADESH ROAD POLICY
Government Initiatives: MP Road Policy
The main aim of the MP Road Policy is to work towards the up gradation of the existing road infrastructure so as to provide an efficient road network system along the length and breadth of the State keeping in mind that the accruing benefits may be passed on evenly to all sections of the society
Government of MP has made recent amendments in the Indian Tolls Act of 1932, so as to encourage private sector participation in mega ventures.
The major roads in the State have been rehabilitated or have been taken up for rehabilitation. The State has come up with road renewal programmes under which maintenance of the existing road infrastructure will be undertaken. The envisaged activities will be according to the following renewal regime:
National Highways - One third of the road length every year
State Highways - One fifth of the road length every year
Major District Roads - One sixth of the road length every year
Village Roads - One eighth of the road length every year
All the major towns and district headquarters are linked with roads having high quality surfacing and riding comfort
MADHYA PRADESH ROAD POLICY
The main objectives of the Road Policy are:
To provide connectivity to villages with a population of more than 1000.
The road network for villages having population less than 500, will be so planned that an all weather road will be available at a distance of 3 km in plain areas and at a distance of 5 km in hilly areas.
Improvement of existing State road network system to 2 lane/ 4 lane roads to cater the need of the projected traffic.
To enhance the road infrastructure in towns and cities.
To effectively utilise the present resources.
To constantly update the highway technology by adopting modern techniques of construction and training of department personnel.
To ensure high standard of road safety and travel comfort.

15. SOME SUCCESSFULLY COMPLETED BOT PROJECTS
MP: An Investment Destination
The State Government of MP has taken initiatives to improve the condition of the roads on a priority basis. The budgetary allocation for roads has been increased from USD 90 Mn in to around USD 210 Mn in
In the past 2 years, 12,500 kms of roads were constructed which is now projected to increase to 40,000 kms more in the next 3 years
The State Government is encouraging the involvement of private sector to take up the projects on a BOT basis.
These initiatives by the Government are showing immediate results, with the traveling time being decreased significantly.
All the divisional headquarters have been connected to the State capital by road. It is now proposed that all the district headquarters will be connected to the Divisional headquarters.
SOME SUCCESSFULLY COMPLETED BOT PROJECTS
Name of the Project
Length (Kms)
Project Cost (Mn USD)
Dewas – Ujjain - Badnawar
98.26
11.09
Hoshangabad – Piparia - Panchmarhi
126.00
12.66
Hoshangabad – Harda – Khandwa
185.00
18.00
Satna – Maihar – Umaria
141.00
11.84
Rewa – Amarkantak
246.00
24.72
Indore – Edelabad
203.00
27.56
Ujjain – Jhalawad
134.00
14.82
Jabalpur – Narsinghpur – Piparia
140.00
16.65
Raisen – Rahatgarh
101.40
12.82
Distance
Before
At Present
Hoshangabad - Harda
100 km
8 hrs
2 hrs
Hoshangabad - Seoni
90 mins
45 mins
At present 1000 kms of roads have already been laid down on a B.O.T. basis and construction of another 1100 kms is in progress.
Madhya Pradesh Road Development Corporation (MPRDC) is the nodal agency carrying out all the developmental work in association with the private sector.
It is proposed that MPRDC will carry out the development of 3000 kms of road in the next 3 years with assistance from NABARD and the Central Government.
Leading Road Developers such as Ramky Infrastructure Construction Private Limited, Unitech Limited, KNR Constructions Limited, Madhucon Projects have sizeable presence in the State and are involved in several National and State Government projects. The peaceful environment in the State and the cooperative State Government facilitates faster implementation of the project thereby increasing the profitability of the project.

16. Way Forward…
The State Government has already completed the work on a total of km length of roads with the total cost of USD bn*. There are various projects where the Government is seeking private partner investment. Following are some of the identified projects that are proposed to come up in the near future. Many of these high density roads will be developed under BOT/ private development methods. This offers a significant opportunity for infrastructure players to invest in the sector.
B.O.T. PROJECTS (PROPOSED)
S.No
Name of project
Length (kms)
Estimated cost (Mn USD) 1
Sehore – Dewas
142
~103.00 2
Lebad – Nayagaon
250
~184.00 3
Chandrapur – Badwani
100
~12.50 4
Matkuli – Tamia – Chindwada
108
~21.00 5
Mandsaur – Sitamau (up to Rajasthan Border) 44
~5.60
ADB PHASE III (STATE HIGHWAY PROJECTS COMING UP)
S.No.
Name of project
SH no.
Total length (kms) 1
Shivpuri – Sheopur – Pali 06
143.60 2
Kurwai – Chanderi – Pichoore 19
183.00 3
Bareli – Piparia
32.00 4
Damoh – Hata – Amanganj 49
112.00 5
Chhilpi – Baiihar – Balaghat 26
135.00 6
Khandwa – Khargone
87.00 7
Satna – Chitrakoot 11
74.00 8
Chiraidongri – Seoni
11A
97.00 9
Malhara – Amanganj 10
90.00
Hoshangabad – Nasarrullaganj – Khategaon 22
Silvani – NH12 Junction 16
53.00 12
Banher – Bistan (Maharashtra) 31
25.00 13
Khargone – Mandleshwar – Mhow 01
119.00 14
Balaghat – Nainpur
75.00 15
Tala – Shahdol
85.00
Morena – Porsa 02
50.00 17
Indore – Ujjain
55.00 18
Shyampur – Goras 23
58.00
Dindori – Mandla – Lakhnadon 40
134.00 20
Katni – Barhi – Tala
60.00 21
Gairatganj – Gadarwra 44
Bela – Govindgarh – Churhat 52
63.50
NATIONAL HIGHWAY PROJECTS (PROPOSED)
S.No
Name of project
Length (kms)
Estimated cost (Mn USD) 1
NH 75 (Km 0 to 85)
108
~120.00 2
NH 7 (Km 544 to 652)
104
~115.50 3
NH 3 (Khalghat to Maharashtra Border) 88
DPR IN PROGRESS 4
NH 12 (Bhopal – Deori – Jabalpur)
297 5
NH 59 (Indore – Jhabua – Ahmedabad)
169 6
NH 69 (O’ganj – Bhimbhekta) 13 7
NH 75 (Jhansi to Khajuraho)
100 8
NH 86 Ext (Bhopal to Sanchi) 40
Considering the successful completion of other mega projects and the potential lying in the up coming ventures, the road sector in MP is poised to become the most lucrative areas for private investors in times to come.
BOT
Source: mprdc.nic.in

17. Connecting Further National Highways Authority of India www.nhai.org
Public Works Department, Madhya Pradesh
Madhya Pradesh Road Development Corporation
mprdc.nic.in