INDIAN STATE : MADHYA PRADESH

Cement

The state is the third largest producer of Cement in the country catering to 13% of the National demand. Currently present several major groups are expanding their production capacities. Considering the present scenario and the availability of raw material, there is a scope of further investment of $2.5 billion in this sector.

Madhya Pradesh's key strength in cement industry is the presence of large limestone reserves, estimated to be over 2 billion tonnes.

Prominent cement companies present in the state include ACC, Grasim Industries, Jaiprakash Associates, Cement Corporation of India Ltd, Century Textiles and Mysore Cements.

Textiles and Apparels

The textiles of Madhya Pradesh are a part of the rich heritage of India. The bordering States of Orissa, Gujarat, Maharashtra, Rajasthan and Uttar Pradesh have influenced the weaving, printing and colouring of textiles of Madhya Pradesh, but at the same time they have developed their own distinctive style and individuality.

Madhya Pradesh encompasses a number if textile units (approx 51 units). The textile export from M.P. is around $250 Million approx. The state has a potential of attracting a total investment of $2.2 Billion approx in the textile sector in next 5 years, with integrated business models consisting of Composite mills & Garment units. There are vast opportunities for Spun Yarn, Fabric, Textile / Fashion Designing, Readymade Garments.

Pharmaceuticals

The Pharmaceutical sector in Madhya Pradesh envisages a potential of $ 1 Billion Investment in next 5 Years. There is tremendous scope for Bulk drugs / formulations, Herbal products, Contract research, Research centres / laboratories.

Chemicals

The Chemical sector in Madhya Pradesh envisages an Investment opportunity of over $75 billion, with a potential growth of 5 billion in the next 10 years.

Auto and Auto components:

This sector offers tremendous potential with reference to HCV/LCV/MCV/PC/2-3 Wheeler, Auto Components: Tyres, Engines, and Gears.

Minerals / Stone

The opportunities in this sector include Stone cutting & Polishing, Marble, Granite, Sandstone, Mineral / Gas exploration, Mineral excavation and Power generation plant.

Tourism Industry

With the view to speed-up development of Tourism in Madhya Pradesh, the State Government announced a New Tourism Policy in January 1995. The new tourism policy envisages creation of an environment conducive to attracting increased private investment in the tourism sector, and a more meaningful role for the Government.

The opportunities in this sector include

• Hotels,
  
• Resorts,
  
• Charter Flights,
  
• Adventure Zones,
  
• Amusement Parks and
  
• Tourist trains.

Incentives in tourism Industry

A special package of incentives for the tourism industry has been prepared. These incentives will also be available for private entrepreneurs for any of the following activities:

• Hotels, Motels and Restaurants.
  
• Heritage Hotels, Health Farms, Recreation Centres, Ropeways, Golf Courses, Museums, Amusement Parks, Craft Villages, Convention Centres, and all other bonafide tourism related activities recognised by the government.
  
• A/c Luxury Coaches, A/c Mini Buses, and imported Limousines purchased by registered tour operators for tourist transport.
  
• Activities connected with adventure tourism, such as hang gliding, para sailing, river rafting, boating, trekking, rock climbing etc.
  

Specific Incentives

• Land
  • Government land will be offered with the approval of the Empowered Committee as equity participation on behalf of the Government at current market value for setting up Joint Ventures.
    
  • The companies thus formed who are given any kind of Government land will be expected to complete the project within a period of three years from the date of transfer of land, failing which the land will revert to the Government. The company will not be allowed to transfer the land to anybody else, or use it for any purpose other than that for which it is allotted.
    
  • For construction of approved category hotels, etc. in the urban areas, exemption under Section 20 of the Urban Land Ceiling Act will be made available on a case-to-case basis as decided by the Empowered Committee.

Luxury Tax

New projects shall be exempt from Luxury Tax for ten years from the date of commencement of commercial operations.

Sales Tax

New projects shall be exempt from Sales Tax for ten years from the date of commencement of commercial operations.

Entertainment Tax

Entertainment Centres will be exempt from Entertainment Tax for ten years from the date of commencement of commercial operations.