Madhya Pradesh: Means Business

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Madhya Pradesh Means Business
Tourism
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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
  23,983.63 Mn
• Average growth rate 5.5 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
  6,449.25 MW
• Indias first greenfield SEZ
  Indore SEZ
• Industrial Centers 8

Power
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 (MPs share)
• Hydel Power Generation 852.7 MW
• Thermal Power Generation 2,147.5 MW

Ministry of Power (powermin.nic.in)
Source Indiastat.com (as on 23 Feb 2006)
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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
KHAJURAHO
AIRPORTS
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 www.destinationmadhyapradesh.com
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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)
Offers diverse tourists destinations catering to
various segments of tourism such as religious
(Bhojpur), eco/ adventure (Panchmari), heritage
(Sanchi, Khajuraho) tourism etc.
Indias 1st operational Greenfield SEZ at Indore
Third largest producer of 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 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
12 blocks with reserves totalling 2,585 million
tons of coal has been identified
Over 144 BCM of coal bed methane reserves
available
Availability of coal and natural gas (G.A.I.L
pipeline) along with support from Government to
make investment in Thermal Power Plants lucrative
Source www.mpsidc.org Brochure MP Means
Business
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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.
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 (Reference RK Swamy)
- Distances rounded off
Source India Today (September 06 Issue)
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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 years _at_ 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

SPECIALIZED INFRASTRUCTURE
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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 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 273 Hectares Allotted 115
Hectares Units established 121 Major Groups
Birla, Jaypee Special Infrastructure Integrated
infrastructure development centres (IIDC)
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 1,330 Hectares Allotted 618
Hectares Units established 286 Major GroupsHEG,
Crompton Greaves, PG, Godrej, Lupin, IFB, Oswal,
Nahar Special Infrastructure ICD, Food Park
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
Rewa, Waidhan
INDORE AKVN
Mandideep, Pillukhedi, Mandideep Phase II
Borgaon, Maneri, Purena
Pithampur, Kheda, Dewas, Maksi, Megh Nagar
Source MPSIDC
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Tourism Industry in Madhya Pradesh
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Sector Profile Tourism
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Tourism in India Mainstay of the Indian Economy
Fact Sheet
Foreign Tourist Arrivals in India

• India is known for its mystical attraction in
  terms of its rich heritage, diverse culture,
  religion and scenic beauty, which makes it one of
  the most desirable tourism destinations across
  the world.
• India offers a vast variety in tourism i.e.
  heritage tourism religious tourism adventure
  tourism leisure tourism business tourism
  eco-tourism wildlife tourism, spiritual tourism
  etc, to cater the diverse interests of the
  tourists/ visitors.
• Tourism is one of the major industries in India
  with a revenue of USD 32 billion, it contributed
  5.3 to the Gross Domestic Product (GDP) of the
  country in the year 2005-06 and generates highest
  number of employment in the country. It is
  estimated countrys tourism economy would grow at
  8.8 over the next 10 years.
• Tourism is the third largest net earner of
  foreign exchange for the country recording
  earnings of USD 5731 million in 2005, a growth of
  20.2 over 2004. Inspite of various frictions
  tourism industry faced, Indian tourism industry
  has grown by more than 80 in a decade.
• Indias tourism destinations such as Kerala, Goa,
  Rajasthan, Agra etc are already well positioned
  on the global tourism map. Further Government has
  identified locations in various states such as
  Madhya Pradesh, Himachal Pradesh, Gujarat,
  Maharashtra, Bihar, Karnataka, Andhra Pradesh etc
  to promote them as tourists hub.

Foreign Exchange Earnings
India is second of the fastest growing tourism
economy in the world today. (Exclusive research
by the World Travel and Tourism Council- WTTC)
Source World Travel Tourism Council Report,
2005
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Tourism in India Mainstay of the Indian Economy
Opportunities

• The recent economic growth in India along with
  its positioning as an Outsourcing Hub, has
  further enhanced the countrys infrastructure
  along with the connectivity of India with other
  countries. This has led to a tremendous increase
  in the number of incoming international business
  travelers in the country.
• Various international travel and hospitality
  companies such as Thomas Cook, Amadeus, Hyatt,
  Four Seasons, Hilton, Regent, Radisson and
  Holiday Inn, have acknowledged the tourism
  potential of the Country and already have their
  presence here. Besides, their presence has
  significantly increased the standards of services
  in hospitality and tourism industry.
• Indias cost competitive health care system and
  skilled human resource has given impetus to the
  relatively new concept of medical tourism in
  India and is worth USD 333 million, with about
  150,000 foreign patients visiting India annually.
  
• Government has acknowledged the significance of
  tourism in the Country and the importance of
  public-private partnership in the growth of the
  same. Thus, the Ministry of Tourism has announced
  number of incentives and support to give a fillip
  to the sector.

As per WTTC, India is considered to be the one of
the most price competitive countries in terms of
Travel Tourism that is, based on
accommodation prices, they represent the best
value for money.
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MP Tourism Haven of India

• Kanha is the largest Wildlife Sanctuary in Asia
• Kahjuraho has some of the most famous Sculptures
  in the world
• Bhimbeteka is the oldest Cave Paintings in the
  world
• Sanchi houses the oldest Buddhist Stupa in the
  world
• 9 national parks and 25 game sanctuaries out of
  which four are major tiger reserves.
• Sacred rivers of Narmada, Tapti, Son and Kshipra
  have a string of religious places located on
  their banks.
• Pachmarhi one of the most beautiful hill
  stations.
• Tourist festivals displaying variety of folk and
  performing arts at Khajuraho, Orchha, Pachmarhi,
  Indore-Ujjain (Malwa) and Bhopal.

Kanha National Park
Khajuraho
Bhimbeteka
Sanchi
Amarkantak
Pachmarhi
And the list goes on
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MP Tourism Haven of India
Overview

• MP has a rich cultural heritage, various
  religious spots along with the vast forest area
  and other scenic places makes it an ideal tourist
  destination that could cater to various interests
  of tourists.
• The tourism sector in MP is gradually gaining
  grounds and has been identified as one of the
  Growth Engines of MP by the State Government.
• Heritage sites such as Sanchi Stupa and
  Bhimbeteka are included in Unescos World
  Heritage Sites.
• MPs tourism sector is dominated by the domestic
  tourism with approximately 8 million tourists
  arrival in 2005-06 and is ranked among top ten
  States for domestic tourist visits. The foreign
  tourist arrivals was relatively less amounting to
  mere 0.16 million.
• However, the trend in tourism industry of the
  State is positive and the sector is observing
  year on year growth in both domestic as well as
  foreign tourist arrivals.
• Pilgrim centres account for the major portion of
  the domestic tourist traffic whereas places such
  as Khajuraho, Orchha and Gwalior attract a
  maximum number of foreign tourists.
• In an effort to boost tourism sector in MP, the
  State Government has sanctioned USD 12.2 million
  for development of 17 tourist spots across the
  State. Further, the Government is also making
  efforts to improve air connectivity to other
  states.
• The State has taken initiatives to promote Eco
  Adventure Tourism and is keen on promoting
  Medical/ Herbal tourism in association with
  private parties.

Domestic Tourists Arrival in MP
Very high increase due to Maha Kumbh Mela (once
in 3 years)
Continuous increase
Foreign Tourists Arrival in MP (In 000)
Source MP Tourism Development Corporation
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MP Tourism Haven of India
Hospitality Sector

• The State had more than 50 grade hotels and
  approximately 2100 hotel rooms available as on
  2004 year-end.
• Apart from this there are several hotels/ lodges/
  accommodation facilities run and maintained by MP
  Tourism Development Corporation.
• Since the State houses various heritage building
  and bungalows , several of these have been
  converted into Heritage hotels.
• The Government has acknowledged the need of more
  5, 4 and 3 star hotels and is inviting private
  players to invest in the State. Further, there
  are various heritage properties which government
  is keen on converting into Heritage Hotels with
  the association of private parties.

Category-wise Hotels in MP (2004)
Number of Hotel Rooms Available in MP (2004)
5D 5 Star Deluxe CA Classification Awaited
Source Crisinfac Report
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MP The Mixed Bag of Tourism
The uniqueness of MP lies in the fact that it has
something to offer to all kind of tourists
Tourist Destinations Circuits in MP
Major Tourist Circuits

• On the basis of the proximity of destinations and
  linkages between them, State Government has
  identified 4 major tourist circuits in the State
• Gwalior - Shivpuri - Orchha - Khajuraho
• Indore - Ujjain - Maheshwar - Omkareshware -
  Mandu
• Jabalpur - Bhedaghat - Mandla - Kanha -
  Bandhavgarh
• Bhopal -Sanchi - Bhojpur - Bhimbetka - Panchmarhi

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Harnessing the Benefits of Location Advantage of
MP

• MP is centrally located and is in proximity to
  various other states. Further the State is
  well-connected to other cities through road, rail
  and air.
• MP is well connected with the major ports of
  entry in the Country with high foreign tourist
  inflow such as Delhi, Maharashtra, West Bengal,
  Rajasthan, Uttar Pradesh, Karnataka etc.
• Bhopal (capital of MP) could reached from these
  places in duration of approximately 8 to 15 hours
  through road and rail.
• The proposed international airport along with the
  improvement in the air-connectivity of the State
  would increase the tourist (especially foreign
  tourists) traffic into the State from these
  tourists generating points.

Other Growth Drivers

• With corporates such as Genpact, Reliance
  Infocom, Force, Eicher etc planning to set-up
  their centres in MP (Bhopal), the number of
  business travellers is going to increase in the
  State.
• The State Governments initiatives to develop
  integrated infrastructure in terms of
  connectivity, accommodation, and focus on private
  investors in tourism would develop an overall
  infrastructure to support the tourism growth in
  MP.
• Presence of Centre of Excellence such as
  Institute of Hotel Managemet, Bhopal and Indian
  Institute of Tourism and Travel Management,
  Gwalior, offers skilled resources in the State.

1 km 0.6 miles
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MP An Investment Destination
Various initiatives are undertaken by the
Government of MP for the overall development of
the tourism infrastructure in the State which
will instigate the momentum of the industry
thereby positioning it as one of the most
desirable tourism destination of India
Key Approach
Increase Private Participation
Tourism Circuit Development
Holistic Approach for Integrated Development

• Improve air connectivity to other cities
• Establishment of international airport in Bhopal
• Improve the intra State roads and National
  Highways present in the State

Upgrade air road connectivity
Accommodation

• Set-up Heritage Hotels
• Lodges, 2 3 star hotels in the upcoming tourist
  destinations
• 5 star and business class hotels in commercial
  cities

State Government will be the Facilitator
Various direct indirect opportunities for the
Private investors
Proper Waste Management

• Efficient waste management and supply of potable/
  clean water in the cities and especially in rural
  areas to promote rural tourism

Centre of Excellence

• Set-up new Centre of Excellence apart from
  existing ones to ensure the availability of
  skilled human resource to support growth in
  tourism and hospitality industry in the State

Supported by Investor Friendly Policies
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MP An Investment Destination
The State Government is giving several incentives
to the private investors. It has laid down
specific policies for Eco Adventure Tourism

• Parasailing
• Pachmarhi Escarpment
• Tamia to Patalkot
• Mandu
• Wanchu Point
• Raisen Fort

Incentives for Tourism Industry

• 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.
• New projects shall be exempt from Luxury Tax for
  ten years from the date of commencement of
  commercial operations.
• New projects shall be exempt from Sales Tax for
  ten years from the date of commencement of
  commercial operations.
• Entertainment Centres will be exempt from
  Entertainment Tax for ten years from the date of
  commencement of commercial operations.

• Rock Climbing
• Raisen fort
• Gwalior fort
• Narwar fort
• Asirgarh fort

• Jungle Safari
• National parks of-
• Kanha
• Satpura
• Panna
• Pench

Incentives for Eco/ Adventure Tourism
Eco Adventure Tourism in MP

• The vehicles mentioned in the project report
  submitted by interested party for transporting
  tourists to visit the identified location shall
  enjoy an exemption from transport taxes for a
  period of 5years.This will be considered to be a
  'sunset facility and it will expire
  automatically after 5 years.
• To operate liquor shops in the identified
  location, the following concessions shall be
  given in FL 3 license fee-
• No concessions for location within a radius of
  5km from the outer limit of municipal areas with
  population of 0.3 million above. In areas other
  than above, discount on license fee ranges from
  10-50 based on the category of areas.
• The current norm of having a minimum of ten rooms
  for guests in a hotel and certain other
  conditions applicable for FL 3 license shall be
  relaxed.

• Water Sports
• Project such as
• Tawa, Hoshangabad
• Kaliaspot Halali, Bhopal
• Barna, Raisan
• Gandhi Sagar, Mandsaur
• Tigra Harsi, Gwalior
• Mohini Sagar, Shivpuri etc

• Canoeing/ River rafting
• River Narmada
• River Tons
• River Chambal
• River Ken
• River Son

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MP An Investment Destination
Special policies and incentives are offered for
promoting Heritage Tourism.
Incentives for Heritage Tourism
Heritage Hotels

• Concessions in taxes shall be given to any
  heritage hotel project regardless of quantum of
  investment.
• Full exemption from Luxury Tax
• Full exemption from Entertainment Tax
• Either 20 of total project cost or USD 44,444
  which ever is less would be given as capital
  investment subsidy for conversion of a heritage
  property into a heritage hotel.
• Interest subsidy shall be given in favour of the
  owner of heritage hotel for the loan obtained for
  the development of the heritage hotel.
• 5 for projects upto USD 0.33 mn
• 3 for the projects between USD 0.33 to USD 1.11
  mn
• Investments proposed for creating captive energy
  sources including non-conventional energy
  sources, sanctioned by the financial institutions
  as part of the overall project outlay shall be
  eligible for capital investment subsidy of 20.
• Heritage hotels established in rural areas shall
  get 50 exemption in stipulated license fee for
  F.L.-3 license for selling Indian Manufactured
  Foreign Liquor within their premises.
• Full exemption in transport tax shall be given
  for five years to the vehicles used by the
  heritage hotel for providing transfer services.
• Concession in stamp duty for purchase of land and
  building for development of heritage hotel would
  be given within the following limits.
• 50 exemption in urban areas
• 100 exemption in rural areas

• Forts
• Palaces
• Havelis/ Kothis

Conversion of heritage wealth of MP to generate
economic benefit
Heritage Village

• Villages earmarked with the potential of tourism

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The Way Forward
The tourism sector in MP offers a wide range of
opportunities to the private investor. Several
tourism destinations in the State still lies
unexploited which could be developed to offer
world-class tourism experience to the visitors.
Opportunities For Private Investors at Every Step
Tour Operations
Accommod-ation
Entertainment
Experience

• Tour operators
• A/c Luxury coaches (Volvo buses)
• A/c Mini buses
• Imported limousines

• 5D and other star hotels
• Heritage hotels
• Motels and lodges
• Theme/ Concept/ Boutique hotels

• Convention centre
• Multiplexes
• Entertainment zones
• Recreation centre
• Restaurants
• Theme parks
• Golf course

• Health farms
• Herbal/ Ayurveda village
• Camping, Trekking, Angling
• Water sports, Canoeing
• Jungle safari, Cycle safari
• Rock climbing, mountaineering
• Para sailing, Para gliding

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Connecting Further
Department of Tourism, Govt. of M.P.
http// www. madhyapradeshtourism.gov.in/
Madhya Pradesh Tourism Development Corporation
Ltd.
http//www.mptourism.com
http//www.mpsidc.org
Madhya Pradesh State Industrial Development
Corporation
Book By Madhya Pradesh State Tourism Development
Corporation Ltd.
Investors Guide To Tourism Madhya Pradesh