Ease of doing business in Madhya Pradesh Ease of doing business in Madhya Pradesh

Policy Initiatives & Reforms 2004 Onwards Industrial Promotion Policy 2004 amended in 2007 IT Policy 2006 Forest Policy 2005 Captive Power Policy with Amendments Multiplex Policy 2001amended in 2006 Waste Land (Non Forest) Policy 2006 Wine Policy 2007 Housing Policy 2007 Food Processing Vision Document 2025 The State is striving for further policy Reforms …

Importance initiatives for facilitating ease of doing business Single Window (or Single Table) Clearance concept by creating a Trade & Industrial Facilitation Corporation (TRIFAC). TRIFAC coordinates the functioning of various committees for investment promotion. This Apex committee is chaired by the Chief Minister. It is empowered to give clearances & additional benefits to mega projects (investment of more than Rs. 25 cr. - $6 million) in a time bound manner. So far this committee has given clearances to projects worth approximately $3 billion. State level empowered committee for investment promotion – Project Clearance & Implementation Board (PCIB). This is being chaired by the Chief Secretary & have Principal Secretaries of relevant departments connected with business as its members. The MD of TRIFAC acts as a member secretary. This board meets at least once in a month to monitor progress of various projects. So far PCIB has given clearances to project worth Rs. 1,30,000 cr. ($32.5 billion). Contd…

At the district levels a committee under the Chairmanship of district Collector can give clearances to projects up to Rs. 10 cr. ($25000/-). Advisory Council has been constituted having prominent industrialists as its members for recommending industry friendly reforms. A nodal officer from TRIFAC ensures that the licensing under various departments is expedited. The State Govt. is in process of enacting “Industrial Facilitation Act”. The bill will be placed before Cabinet soon. This initiative would further augment the ease of doing business. Contd…

TRIFAC has conducted “Investors Meets” at New Delhi, Khajuraho, Indore, Jabalpur & Sagar (during Aug., 2006 to Feb., 2008). A total of 217 MOU’s have been signed during these meets with an estimated investment of Rs cr. ($61 billion). A mechanism has been put in place to regularly monitor the status of these MOU’s. Centre of Monitoring Indian Economy’s (CMIE) April, 2008 suggests that projects worth Rs cr. ($23 billion) are in various stages of implementation at the end of March, Contd…

Availability of land for commercial/industrial use Land pool for industrial use have been identified at district level. Land is allotted at growth centres by regional industrial growth centres (AKVN) or by District Industry Centres (DICs). The land is given under lease agreement for 30 years. System also exist for converting other types of land for industrial use. Contact farming is allowed in Agri business.

E-Governance Initiatives Computerization of Treasuries Suraaj-Samadhan -E-Governance initiatives on transparency & citizen friendly approach - Online Samadhan (Online Solutions) -Parakh -Samadhan Ek Diwas (Solution in a day) Chief Minister Monitoring program for critical Projects Smart Card, Driving License and Vehicle Registration Land record Computerization : Land record online Networking of Mandies (Mandi is a kind of village wholesale market). E-Tendering Commercial Tax Information System & online returns submission As a private initiative ITC (Imperial Tobacco company) has introduced an E-Choupal concept for global marketing of village commodities.

Business Models P-P-P Models have been running successfully in road sector. An industrial water usage work at Dewas is taken up under P-P-P. Various new projects are now being taken up under P-P- P-P & SPV.

Trading Across Borders VAT has been introduced in MP. Madhya Pradesh is an OCTROI free State however entry tax is charged along with the CST & VAT and is managed by only one agency – Commercial Tax Department.

Enforcing Contracts Done under existing laws, no special court for industry is in operation.

Closure of Business System exists as per industrial Policy 2004 for – “Special Package” of facilities to be extended by Government of MP for Sick/closed industries to be restarted after take over/buying out. Policy package “2004” of financial and other concessions to be extended to the sick industrial units of the State. Revival Scheme for Madhya Pradesh Small Scale Industries (SSI).

Infrastructure 24 hrs continuous power supply is ensured at independent HT feeders for industrial use. Railway & Road links are being augmented for DMIC (Delhi-Mumbai Industrial Corridor) Project. Indore & Bhopal are being converted to International Airports. A Cargo hub (including air cargo) is proposed near Indore.

Business friendly initiatives under process a.Elimination of Stamp Paper and accepting alternative payments by Draft/Cheque/Credit Cards/ online - The State Govt. is going to implement e-stamping on-line facility under integrated computerization project. The State Govt. has already implemented stamp duty payment through cash/challan or through franking machine s with effect from b.Composite forms for accepting payments and clearances – Commercial Tax Department is developing a composite form for various tax payments. Contd…

Business friendly initiatives under process d.Reducing time taken for registration for VAT form 12 days to 2 days - Commercial Tax Department has already made provision to issue the registration under VAT on the same day on complete application. e.Reducing of time taken for clearance of site map/ building plan/ utility connections- State Govt. has implemented the Citizen Charter for various departments where-in the time limited are fixed for every clearance, permission etc. given by the related departments. The applicants are given the right to appeal to the higher authorities, if the charter is not followed. For industrial building plans the powers are delegated to General Manager, District Industries Centres to issue deemed approvals.