Transcript Road - Madhya Pradesh Facilitation Centre for NRI's

Madhya Pradesh: Means Business
Roads
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
4
*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
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
Vishakapatnam
100%
80%
Hyderabad
(840 Kms)
(MPV - 257.9)
Chennai
(1430 Kms)
(MPV - 362.84)
Key Markets
Indore
60%
20%
MPV – Market
Potential Value
0%
Jaipur
Greater Noida
Chandigarh
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: India Today (September ‘06 Issue)
Chennai
40%
(Distance From
Bhopal)
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
(Estimated Values for Multiproduct SEZs)
Source: (Reference: RK Swamy)
- Distances rounded off
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
Roads
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
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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.
Indian Road Network*
Indian road network of over 3.31 million Km. is
second largest in the world and consists of :
Length (In Km)
• 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 66.50 billion in 2005-07. 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)
Expressways
National Highways
200
66,590
State Highways
1,28,000
Major District Roads
4,70,000
Rural and Other Roads
Total Length
26,50,000
3.31 million km
(Approx)
 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. 23.22 billion , approximating 39% of the
Status of National Highways as on 31st July, 2006*
Single Lane/Intermediate Lane
32%
Double Lane
56%
Four or more Lanes
12%
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 39.11 billion.
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*Source: National Highway Authority of India (www.nhai.org)
MP: Connecting India
• MP has a well developed transport infrastructure of roads, rails
ROAD MAP OF MP
and airports. 5200 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.
DISTANCES OF MAJOR CITIES FROM THE STATE CAPITAL*
FROM
TO
DIST.
Bhopal
Delhi
740 Km
Bhopal
Mumbai
780 Km
Bhopal
Chennai
1435 Km
Bhopal
Bangalore
1400 Km
Bhopal
Hyderabad
840 Km
Bhopal
Kolkata
1350 Km
Bhopal
Kandla
930 Km
Bhopal
Ahmedabad
570 Km
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Source: NHAI (www.nhai.org)
Distances rounded off
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.
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.
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
• 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.
(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.
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.
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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:
OTHER SUPPORT FROM THE GOVERNMENT
1. 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.
• 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).
2. 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
GOVERNMENT DIRECT SUPPORT
3. Modification in B.O.T. contract
• 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.
•
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.
• 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.
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Source: www.mp.nic.in/pwd
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
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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.
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
2003-04 to around USD 210 Mn in 2005-06.
• 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.
Hoshangabad - Harda
Hoshangabad - Seoni
Distance
Before
At Present
100 km
8 hrs
2 hrs
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.
15
• 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
Leading Road Developers
Construction
Private
such as Ramky Infrastructure
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.
Way Forward…
The State Government has already completed the work on a total of 2977.25 km length of roads with the total cost of USD 361.22 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
ADB PHASE III (STATE HIGHWAY PROJECTS COMING UP)
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
S.No.
BOT
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
DPR IN
PROGRESS
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
DPR IN
PROGRESS
SH no.
Total length (kms)
1
Shivpuri – Sheopur – Pali
06
143.60
2
Kurwai – Chanderi – Pichoore
19
183.00
3
Bareli – Piparia
19
32.00
4
Damoh – Hata – Amanganj
49
112.00
5
Chhilpi – Baiihar – Balaghat
26
135.00
6
Khandwa – Khargone
26
87.00
7
Satna – Chitrakoot
11
74.00
8
Chiraidongri – Seoni
11A
97.00
9
Malhara – Amanganj
10
90.00
10
Hoshangabad – Nasarrullaganj –
Khategaon
22
90.00
11
Silvani – NH12 Junction
16
53.00
12
Banher – Bistan (Maharashtra)
31
25.00
13
Khargone – Mandleshwar – Mhow
01
119.00
14
Balaghat – Nainpur
11
75.00
15
Tala – Shahdol
10
85.00
16
Morena – Porsa
02
50.00
17
Indore – Ujjain
17
55.00
18
Shyampur – Goras
23
58.00
19
Dindori – Mandla – Lakhnadon
40
134.00
20
Katni – Barhi – Tala
10
60.00
21
Gairatganj – Gadarwra
44
85.00
22
Bela – Govindgarh – Churhat
52
63.50
NATIONAL HIGHWAY PROJECTS (PROPOSED)
S.No
Name of project
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.
16
Source: mprdc.nic.in
Connecting Further
17
National Highways Authority of India
www.nhai.org
Public Works Department, Madhya Pradesh
www.mp.nic.in/pwdmp
Madhya Pradesh Road Development Corporation
mprdc.nic.in