Transcript IT-ITES - Madhya Pradesh Facilitation Centre for NRI's

Madhya Pradesh: Means Business
Information Technology/
Information Technology Enabled Services
1
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
Advantage MP
Madhya Pradesh is emerging as a key growth center for the Country
 Gross state domestic product (GSDP)
USD 23,983.63 Mn**
 Average growth rate
5.5% per annum
 Investor friendly Government policies
 Manufacturing sector
USD 8.5 bn**
(Registered & Unregistered)
 Total electricity generation capacity
6,449.25 MW*
 India’s first greenfield SEZ
Indore SEZ
 Industrial Centers
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Electricity generation capacity at present is 6,449.25 MW and estimated to rise to a surplus in 2008-09
 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*
2
*Ministry of Power (powermin.nic.in)
USD 369**
Madhya Pradesh has one of the upcoming industrial base in India
 The State is centrally located
Power
 Per capita GSDP
**Source: Indiastat.com (as on 23 Feb 2006)
Enabling Infrastructure
MP IS CENTRALLY LOCATED AND WELL
CONNECTED WITH ALL MAJOR CITIES IN INDIA
RAILWAY NETWORK
• 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.
• 25 airstrips.**
• Convenient air links from key Indian
cities like Delhi & Mumbai to Bhopal,
Jabalpur,
Gwalior,
Indore
and
Khajuraho.
AIRPORTS
GWALIOR
KHAJURAHO
INDORE
• 5 operational airports.
• Indore airport has the capability of
BHOPAL
handling international cargo.
JABALPUR
• An international airport proposed in
Bhopal.
• The total length of roads spanning MP is
ROAD NETWORK
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.
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*Source: Department of Road Transport & Shipping (morth.nic.in)
**Source: www.destinationmadhyapradesh.com
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
Third largest producer
cement in India*
Over 100 agricultural farms with
an area of over 20,000 acres is
available on lease to investor
Favourable
climatic
conditions for cotton
and over 40,000 powerlooms are driving the
textile industry
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*Source: www.mpsidc.org & Brochure: MP Means Business
of
Various blocks available
for power, cement, iron
and steel units
Largest producer of pulses
and oilseeds in the Country
(~75%
of
soyabean
production)
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.
Over
18,000
technical
graduates
and
230,000
graduates add to workforce
each year
Over 144 BCM of coal bed
methane reserves available
12 blocks with reserves
totalling 2,585 million tons
of coal has been identified
MP: The Right Place with the Right Environment
Savings in Office Space Rates
Fastest mover* in overall
performance among the
big States in the Country.
DESTINATION MADHYA PRADESH
(A comparison of rates in Central Business Districts)
Mum bai
150
Ahem adabad
Delhi
100
50
Bhopal
Bangalore
0
Fastest mover in agriculture
Indore
Delhi
(740 Kms)
(MPV - 789.5)
Fastest mover in
infrastructure development.
Ranks 2nd in terms of
governance.
Hyderabad
Bangalore
(1400 Kms)
(MPV - 254.52)
Savings in Land Cost
Kolkata
(1350 Kms)
(MPV - 613.19)
Mumbai
(780 Kms)
(MPV - 1000)
Ranks 3rd in terms of law &
order
Vishakapatnam
100%
Hyderabad
(840 Kms)
(MPV - 257.9)
Chennai
(1430 Kms)
(MPV - 362.84)
Key Markets
Indore
60%
20%
MPV – Market
Potential Value
0%
Jaipur
MP is centrally located. The State is at an easy distance from
all the key consumer markets in the Country.
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Source: (Reference: RK Swamy)
- Distances rounded off
Chennai
40%
(Distance From
Bhopal)
Greater Noida
Chandigarh
**Source: India Today (September ‘06 Issue)
(Estimated Values for Multiproduct SEZs)
80%
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
Pune
Bhopal and Indore have substantial cost
advantages, even when compared to other Tier
III and IV cities.
Ahmedabad
(570 Kms)
(MPV - 220.63)
Pune
(800 Kms)
(MPV - 206.51)
Chennai
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.
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.
• Special package for Mega Projects on project basis by apex level
investment promotion empowered committee headed by the Chief
Minister.
The main thrust of this policy is:
• Industrial investment promotion assistance – 50% to 75% of commercial
tax for 3-10 years
• Establishment of a Madhya Pradesh Trade
Facilitation Corporation which would take
and Investment
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.
SPECIAL INCENTIVES
• 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
CLUSTER APPROACH
• Indore – Pharmaceutical, Textile,
Processing, IT, Auto Components
Food
• 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
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SPECIALIZED INFRASTRUCTURE
• Attractive incentive schemes.
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
Indore
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
Area Developed: 790 Hectares
Area Developed: 273 Hectares
Allotted: 618 Hectares
Allotted: 800 Hectares
Allotted: 125 Hectares
Allotted: 115 Hectares
Units established: 286
Major Groups:HEG, Crompton
Greaves, P&G, Godrej, Lupin, IFB,
Oswal, Nahar
Special Infrastructure: ICD, Food
Park
Units established: 326
Major Groups: JK, Surya Roshini,
Godrej, Grasim, Cadbury, Hotline,
Crompton Greaves
Special Infrastructure: ICD, Food
Park
Units established: 52
Major Groups: Raymond, Hindustan
Petroleum, PBM, Ayur
REWA AKVN
Area Developed: 2,262 Hectares
JABALPUR AKVN
Area Developed: 1,330 Hectares
GWALIOR AKVN
BHOPAL AKVN
developed area is still untapped and open for investment.
Units established: 121
Major Groups: Birla, Jaypee
Special Infrastructure: Integrated
Special Infrastructure: Stone Park,
infrastructure development centres
Food Park
(IIDC)
Area Developed: 2,492 Hectares
Malanpur, Malanpur
Phase II, Banmore,
Chainpura,
Siddhgawan,
Pratappura
INDORE AKVN
Allotted: 1431 Hectares
Units established: 575
Rewa, Waidhan
Major Groups: Tata, Ranbaxy, Eicher,
Total developed
area
7,147
Hectares
Total allotted area
3,089
Hectares
Total units
established
1,360
Growth centres
19
Bridgestone, Hindustan Motors, Kinetic,
Mandideep,
Pillukhedi,
Mandideep Phase II
SRF, S Kumars, Gajra, Nicholas Piramal,
Indorama, IPCA, Bhilwara
Special Infrastructure: SEZ, Crystal IT
Park, Food Park, Apparel Park
Pithampur, Kheda,
Dewas, Maksi,
Megh Nagar
Borgaon, Maneri,
Purena
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Source: MPSIDC
Sector Profile
Information Technology/ Information
Technology Enabled Services Industry
Sector Profile: IT/ ITeS Industry
Information Technology: Evolving Landscape
Growing IT Sector in MP
Computerization in Government Departments: e – Governance
Advantage MP
MP: Offering Specific Incentives
MP: An Investment Destination
Way Forward
Connecting Further
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Information Technology: Evolving Landscape
• Over the last decade, India has been recognized as a major and credible
IT/ITeS Exports
Information Technology (IT) outsourcing destination the world over. The IT
30
sector is one of the fastest growing segments of Indian industry.
several years now and is expected to exceed USD 36 billion in annual revenue in
FY 2005-06.
• The Indian IT/ ITeS industry has been growing at a CAGR of over 28% since FY
18.2
20
$ bn
• Indian IT/ ITeS industry continues to deliver double-digit growth over the past
23.9
25
15
13.3
10
5
0
2003-04
1999-2000. Over the same period, the industry’s contribution to the national GDP
2004-05
2005-06
Source: Nasscom
has risen from 1.9 per cent in 1999-2000 to a projected 4.8% in the current fiscal
(2005-06).
• Export earnings accounted for 64% of the total IT/ ITeS aggregate in 2004-05.
Strong fundamentals including a large base of skilled talent, demonstrated quality
and service delivery expertise at a significant cost advantage and an enabling
environment have ensured that India attracts a disproportionately larger share of the
global IT/ ITeS demand for off shored services – and continues to drive India’s
export-led growth.
GROWTH DRIVERS
• IT/ ITeS exports from India grew from USD 13.3 billion in FY 2003-04 to USD 18.2
billion in FY 2004-05. It is estimated that total IT-ITeS exports from India will
exceed USD 23.9 billion in the current fiscal (FY 2005-06).
• Software and services exports (excluding hardware) are projected to grow at 32% in
• 100% Income Tax exemption on export profits is available to
SEZ for 5 years.
• Growth in sales of personal computers (PC) (3.6 Million units in
2004-05) is expected to boost the domestic demand.
• Excise duty on computers and peripherals is nil.
the current fiscal.
• The total number of IT and ITeS-BPO professionals employed in India has grown
from 284,000 in 2000 to 1,287,000 in 2005-06.
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Source: Nasscom
IT & ITeS industry is expected to grow to USD
148 Billion by 2012
Growing IT Sector in MP
• Located at the very heart of India, Madhya Pradesh is the second largest State and is
easily accessible from every corner of the Country. From agriculture to natural
wealth, industry, power and people, Madhya Pradesh is abounding with potentials.
• MP has a made a a significant progress in the last couple of years and is further
paving way to be at the forefront of the IT revolution.
• The State has set up over 24,000 kms of optical fibre backbone to cover all its 313
developmental blocks across 45 districts (One of the highest optical fibre coverage in
the Country).
EXPORTS
The IT/ ITeS exports from MP is USD 655 million:
•
Software exports: USD 11 million
•
IT Enabled Services: USD 644 million
Source: www.sezindore.com
MP EXPORTS
• Four software technology parks (STP units) are in the pipeline to be setup in
Bhopal, Indore and Gwalior. These parks will be equipped with all modern facilities,
which are required for smoothly operating software export units, including high-speed
data connectivity.
10.90%
1.80%
Soyabean
IT/ ITeS
45.60%
• The Government is providing various incentives/ concessions to attract investors.
Major players like Taurus Microsystems and Fujitsu already have their presence in
the State and are on the road to further expand their operations under the favourable
industrial policies and IT initiatives by the State Government.
• The large IT players like HCL and Genpact are also geared up to make their
establishments in the State. HCL has identified their location in the upcoming green
field SEZ at Indore. Genpact India has proposed to set up a 7,000-seat BPO facility
in Bhopal, with an investment of USD 34 million. The company has been allotted 50
acres of prime land near the airport in Bhopal (Bairagarh) for its BPO operations.
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Diamond
Leather Products
Source: www.sezindore.com
Proposed investment
of USD 34 million
Proposed
BHOPAL
INDORE SEZ
MAJOR IT PLAYERS IN MP
• The State boasts of 38 IT engineering colleges and provides a learning ground for
the future IT professionals by establishing the Country’s first Indian Institute of
Information Technology and Management (IIITM) at Gwalior. This is an added
advantage to the investors looking to invest in the IT space in the State as there
would be a wide availability of qualified and skilled professionals at a relative low
manpower cost.
26.80%
Growing IT Sector in MP
Software Technology Park – Indore
IT Park – Gwalior
• State of the art facility being set upon 1,00,000 sq ft of
•
IT infrastructure is being developed on 50 acres of land
through private participation.
space.
• Data communication facilities are available through the hi
•
The Park is being developed as a training hub imparting
advanced training for the needs of the IT industry
speed STPI and VSNL networks.
• Fully air-conditioned space with round the clock canteen
and well maintained surroundings
• 100% power backup
IT Park
Crystal IT Park – Indore
•
Developed on 21 acres of land in the heart of the business
capital of M.P
•
5,50,000 sq ft of
space
under
development being
commissioned shortly in the first phase
STP Indore
Hardware &
Technology Park
Hardware & Software Technology Park – Bhopal
Crystal IT Park
•
IT infrastructure being developed on 200 acres of land near
upcoming International airport
•
Developed plots and built up space as per international
standards to be made available
•
PROPOSED/ EXISTING PROJECTS IN M.P.
Facilities for housing, entertainment, schools to be built in
and around the campus of the proposed IT Park
With all the ingredients of a metro, without pollution, traffic and rapidly increasing property prices, Bhopal, Gwalior and Indore is everything about opportunity
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Computerization in Government Departments: e - Governance
The joint study conducted by IDC & Dataquest, ranks Madhya Pradesh as the fourth leading state in India in terms of
overall perceived improvement of delivery of Government Services through e-governance initiatives.
Perceived Improvement in Delivery of State Government Services to CITIZENS Through E-Governance
S.
No
E-Governance Assisted Service
Delivery Area
Highest
Score
State Scores
Gujarat
Madhya
Pradesh
Kerala
Uttar
Pradesh
Karnataka
1
Water utility- service delivery & support
91.4
85.0
91.2
82.2
80.0
83.4
2
Municipal taxes- payment & information
89.6
88.6
89.6
84.0
75.6
84.2
3
Applying for birth/ death/ marriage
certificates
89.6
89.6
89.6
82.4
76.8
70.8
4
Power utility- service delivery & support
92.4
92.4
88.6
80.0
80.0
85.2
5
Filing of income tax returns
91.4
91.4
87.8
90.0
82.6
80.6
Perceived Improvement in Delivery of State Government Services to CORPORATES Through E-Governance
S.
No
E-Governance Assisted Service
Delivery Area
Highest
Score
1
Income tax department- filing of tax returns
2
State Scores
Andhra
Pradesh
Maharashtra
Madhya
Pradesh
Gujarat
Karnataka
94.6
85.6
80.0
92.4
90.4
82.0
Registration of land
91.4
88.0
71.2
90.6
83.4
71.6
3
Executing sale/ purchase of land/ property
93.6
93.6
72.8
90.4
80.0
70.0
4
Income tax department- application for PAN
number
94.4
84.2
77.2
89.6
90.4
82.2
5
Sales tax/ Service tax- filing of returns
89.6
89.6
74.6
89.6
84.6
75.8
13
Source: IDC, 2006
Computerization in Government Departments: e - Governance
Government of MP has laid great emphasis on computerization of the revenue generating departments and the departments with large
public interface. Major e-Governance projects in the State are listed below.
TRANSPORT DEPARTMENT
TREASURY NETWORK
The department has implemented computerization of its activities viz. issue of
2002
Department of Finance, which manages government funds through treasuries and
sub treasuries, is also implementing major computerization project to automate
and network with the State Headquarters. This aims to facilitate information
access on-line and bringing greater transparency and efficient fiscal management
of resources. Project will be operational shortly.
E-KRISHI VIPNAN (EKVI)
LANDS RECORD DIGITALIZATION
driving licenses, vehicle registration, permits etc. With Smart Card interface, on a
Build Own Operate (BOO) basis, the project has been operational since January
M.P.
initiated
Project implemented to computerize the record of ownership of agriculture land of
computerization of all its offices and mandis (around 230) phase wise, to facilitate
State
Agriculture
Marketing
Board
(Mandi
Board)
has
approximately 6.50 million landholders. It has been operational in the entire State
e-agricultural marketing in MP Private sector company are implementing this
for quite sometime now and almost all the records have been digitalized. Copies
project on a BOO Model. Presently a pilot is under implementation.
of the records are made available to the citizens, at Tehsil Offices
MADHYA PRADESH TAXATION NETWORK
COMPUTERIZATION OF PROPERTY RECORD REGISTRATION
Commercial Tax Department, the highest revenue earning department of the
Stamps and Registration Department, another major revenue earning department
Government, has implemented an ambitious and comprehensive project to
facilitate on line registration and filling of tax returns. Under this project, a
of the Government, is in the process of computerizing its operations. Software for
database of all tax payers has been created and all 55 locations of the department
the activity has been developed and a pilot project has also been operational.
are networked
Now the department is rolling out the pilot in all its offices on BOT model
• MP is among a few front-ranking Indian States to use e-governance effectively in providing health services and promoting trade, business and industry.
• A nation-wide survey by DataQuest magazine ranks MP among leading States like Kerala, Delhi, Gujarat and Goa in the use of e-governance.
• The State holds first position in rendering pubic utility services through e-governance in areas such as municipal corporation, land (revenue), income tax and law. It also stood first in making
proper arrangements to provide e-payment facility to the corporate sector.
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Emerging IT/ITeS Hubs of MP
S.
No
INDORE
GWALIOR
JABALPUR
1843510
2465627
1632109
2151203
Engineering Degree Passouts
7740
3780
2580
2090
Engineering Diploma Passouts
965
665
790
1629
MBA Passouts
1020
1550
370
320
Maulana Azad National Institute
of Technology, National Law
University Judicial Academy
Indian Institute of
Management
Indian Institute of
Information Technology
& Management
Agriculture University
Delhi, Mumbai, Gwalior, Indore,
Jabalpur
Mumbai, Delhi, Bhopal
Delhi, Bhopal
Bhopal
Rail Connectivity to Major Cities
All major cities
All major cities
All major cities
All major cities
Power Supply
No power cut
No power cut
Power cut for 2 hours
Power cut for 2
hours
Presence of Major Industries
BHEL, HEG
Automobile,
Pharmaceuticals
leather
Cement, Ordinance,
Telecom
Excellent facilities
Excellent facilities
Good facilities
Good facilities
Presence of 3*, 4* & Heritage
hotels
Presence of 3*, 4*, 5*
hotels
Presence of 3*, hotels
Presence of 3*, 4*
hotels
Excellent facilities
Excellent facilities
Good facilities
Good facilities
Land Cost
INR per sq m
INR per sq m
INR per sq m
INR per sq m
Residential land costs- Min to Max
700 to 25,000
1,000 to 30,000
700 to 28,000
230 to 31,500
Commercial land costs- Min to Max
-
750 to 4,500
2,000 to 45,000
600 to 60,000
Population
2
Educational Infrastructure
Presence of Major Institutions
Basic Infrastructure
Air Connectivity
4
Support Infrastructure
Hospitals
Hotels
Malls/ Movie Halls/ Shopping
5
Major Cities of MP
BHOPAL
1
3
The
FACTORS
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Source: Census 2001, AICTE, Local survey, IGRS, District website
MP – An Investment Destination
• Madhya Pradesh is poised to become the next IT destination of India through its IT infrastructure development strategy and government
support to the investors. There are many significant avenues and areas that can be tapped for setting up and scaling up your
business operations.
• To further support your business endeavors Government of Madhya Pradesh is developing specialized infrastructure in the form of SEZ
Indore, IT Parks in Bhopal, Indore and Gwalior. Being an industry of economic importance, the Government also provides special fiscal
and non fiscal incentives to the units in the State.
COST INDICATORS FOR ESTABLISHING AND OPERATING BUSINESS IN MP*
KEY CONCERNS OF
THE INDUSTRY
Rising Salaries
(In India the rise in
salary is 13% YoY)
Land/ rentals cost
Connectivity
HOW MP OFFERS AN ADVANTAGE
In MP, the average cost to the company for the same
executive is cheaper than 15 - 30 % as compared to other
industrially developed/ developing cities
The rate of prime land is among the lowest as compared to
other areas of the Country
High speed data communication facilities are available at a
bandwidth of 2 Mbps
BENEFITS/
SAVINGS
Considerable
annual savings
Considerable
annual savings
High speed
connectivity
INDICATOR
VALUE (USD)
Industrial land (per sq m)
5-30
Office space rent (per sq ft per month)
0.5 - 1
Residential rent (for a 2,000 sq ft
house, per month)
280 - 350
5-star hotel room (per night)
80-100
Electricity (per kWh)
0.09 - 0.13
Water (per 1000 liters)
0.2
Some of the other supporting factors assisting your
business would be:
• Central location
• Low set-up costs (Land, building etc)
Infrastructure
 The State has one of the longest laid optical fibre cable
network (~ 24,000 kms).
 Large scale infrastructure development like SEZ Indore
and setting up of IT parks in Indore, Bhopal and Gwalior
Excellent
investment
destinations
• Specialized infrastructure
• Low operating cost
• Low attrition rates
• Government support etc.
16
* Source: IBEF Reports (2005)
Advantage MP
SPECIAL IT INITIATIVES
• Conducive environment for industry, package of incentives with investor friendly
IT Policy.
• Because of the central location the State is well connected to the major cities in
the Country through air, road and railways. Presently the government is also
focusing on strengthening its road transport network. This excellent connectivity of
the State is the key to all logistics related issues for the present and the potential
upcoming industries.
• Presence of institutes of international repute like IIM (Indore), National Law
University (Bhopal), IIITM (Gwalior) and a large number of engineering,
management, medical and other professional courses fulfill the needs of high
• Madhya Pradesh has taken steps to promote IT in
various aspects of governance.
• The
State Government has prescribed various
guidelines/ principles and general conditions for
allowing private participation and investments in eGovernance projects for citizen services.
• The Government has also initiated changes in the
labour laws to make them more favourable to IT
industries. 24X7 working days has been cleared by
the labour department.
• A project is currently being executed in the Dhar district
of the State to leverage IT to offer value added
services to the common man at the rural level.
• As part of this initiative, information flows and services
like wholesale price, details on land records,
registration of applications, public grievance redressal
etc. would be made available online to the citizens of
the district.
quality education and provide the sources of quality workforce. The cost of
• The Government has signed a Memorandum of
professional manpower is comparatively less in MP (10-15% cheaper) as
Understanding with the Reliance group for
providing telecom connectivity to 7,800 kiosks
across the State.
compared to other industrially developed/ developing States.
• Despite the potential, the rate of prime land in the State is among the lowest in
the Country, thereby offering an indirect advantage to the potential investors by
reducing their capital investments.
• The law and order conditions in the State are among the best in the Country
thereby making it a safe place to invest and a better place to live.
Education*
No. of
Institutes
No. of
Students
Engineering
61
20210
MCA
45
2310
MBA
47
3735
Polytechnics
49
9094
Industrial Training
110
14298
TOTAL
312
49647
17
*Brochure from IT Department
MP – Offering Specific Incentives
The State Government has announced certain incentives specific to the IT/ ITeS industry for attracting investors to the State. Following
are the incentives for the IT industries in Madhya Pradesh*:
1) Employment and Land Rate Concessions
• The companies in the State would be eligible for the rebate of USD 556 per job created or;
• A concession on land rate at 25% of the prevalent premium on investment of USD 2.22 million and above based on following schedule:
Project Costs (USD Million)
Maximum land available under concession
2.22 to 4.44
10 acres
4.44 to 11.11
15 acres
11.11 to 22.22
25 acres
22.22 and above
Case to Case basis
2) Stamp Duty
• Stamp duty payable by IT companies on mortgage/ hypothecation with banks/ financial institutions in IT investment area will be
exempted provided the new unit is certified to be an IT outfit by a designated agency.
• Stamp duty and registration fee exemption will be applicable on- sale/ lease by financial institution/ government agencies/ private
sector who acquire space/ premises in IT investment area for subsequent lease to IT units provided the new unit is certified to be an IT
outfit by designated agency.
3) Exemption on Tax & Acts
• Exemption from factories act, maternity act, contract labour act, payment of wages act, minimum wages act, ESI act.
• Exemption from the electricity duty tax, entry tax and work contract tax.
18
* Source: Brochure
MP – Offering Specific Incentives
• IT units in IT investment area will be exempted from the octroi, entry tax and local bodies tax for all capital goods and raw material
purchased by them.
• Rate of property tax in the IT investment area will be at par with residential premises.
4) Power Related Incentives
• No prior permission will be required for installation of the captive power plant.
• IT industry shall e provided power through a dedicated feeder.
5) Others
• Exemptions upto twice the existing FAR for entire IT investment area
• All facilities and incentives declared in the new Industrial Policy of MP Government are also applicable for IT Industries established on
government allotted land/ private land with the single window clearance for government formalities
19
* Source: Brochure
Way Forward
• With large IT players like HCL and Genpact proposing to invest in the State, and the presence of major players like Fujitsu and Taurus
Microsystems, many more companies are expected to follow suite. And the increasing trend of the industry for shifting from tier I to tier II
cities would result in increased IT activity, eventually leading to the overall IT/ ITeS development in the State.
• Hence there are increasing opportunities for IT park developers and IT companies to come and invest in Madhya Pradesh.
PROJECT
STATUS
FACILITIES
OPPORTUNITIES
Crystal IT Park
• Developed on 21 acres of land in Bhopal
• 5,50,000 sq ft of space under development
•
•
•
•
STP Indore
• State of the art facility having 1,00,000 sq ft of space.
• Data communication facilities through the hi speed STPI
and VSNL networks.
• Fully air-conditioned space with
round the clock canteen and well
maintained surroundings
• 100% power backup
Investors are invited by
the government to
commence their
operations in the ready
office space
IT Park – Gwalior
(Proposed)
• IT infrastructure is being developed on 50 acres of land.
• Developed as a training hub
imparting advanced training for
the needs of the IT industry
Government envisages
private participation in
the development of the
park
Hardware & Software
Technology Park –
Bhopal (Proposed)
• IT infrastructure being developed on 200 acres of land near
the upcoming International airport
• Developed plots and built up space as per international
standards
• Facilities for housing,
entertainment, schools to be built
in and around the campus of the
proposed IT Park
Government envisages
private participation in
the development of the
park
Plug & play facilities
100% power backup
Ample parking space
4 kms from city centre
Investors are invited by
the government to
commence their
operations in the ready
office space
Considering the present scenario and the momentum being gained by the industry, the State is poised to be the next IT haven of India
20
Connecting Further
21
Madhya Pradesh Agency For Promotion of Information Technology
www.mapit.gov.in
Madhya Pradesh State Electronics Development Corporation
www.mpsedc.com
Madhya Pradesh State Industrial Developmental Corporation
www.mpsidc.com
Department of Information Technology
www.mit.gov.in
Government of Madhya Pradesh
www.mpgovt.nic.in
Indore SEZ
www.sezindore.com