1

Madhya Pradesh: Means Business

Information Technology/ Information Technology Enabled Services

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Overview

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.

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

Total electricity generation capacity 6,449.25 MW*

India’s first greenfield SEZ Indore SEZ

Industrial Centers 8

The State is centrally located

Investor friendly Government policies

Madhya Pradesh has one of the upcoming industrial base in India

Economic Snapshot Madhya Pradesh is emerging as a key growth center for the Country

Madhya Pradesh (MP) – State that means businessOverview

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*

Power Electricity generation capacity at present is 6,449.25 MW and estimated to rise to a surplus in 2008-09

*Ministry of Power (powermin.nic.in) **Source: Indiastat.com (as on 23 Feb 2006)

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• 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.

• 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.

• 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.

Enabling Infrastructure

MP IS CENTRALLY LOCATED AND WELL

CONNECTED WITH ALL MAJOR CITIES IN INDIA

*Source: Department of Road Transport & Shipping (morth.nic.in) **Source: www.destinationmadhyapradesh.com

INDORE BHOPAL

JABALPUR

GWALIOR

KHAJURAHO

4

Third largest producer of

cement in India*

12 blocks with reserves

totalling 2,585 million tons

of coal has been identified

Largest producer of pulses

and oilseeds in the Country

(~75% of soyabean

production)

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)

Over 18,000 technical

graduates and 230,000

graduates add to workforce

each year

Over 144 BCM of coal bed

methane reserves available

Over 100 agricultural farms with

an area of over 20,000 acres is

available on lease to investor

India’s 1st operational

Greenfield SEZ at Indore

Favourable climatic

conditions for cotton

and over 40,000 power-

looms are driving the

textile industry

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.

Madhya Pradesh: A Preferred Investment Destination

Various blocks available

for power, cement, iron

and steel units

*Source: www.mpsidc.org & Brochure: MP Means Business

5

0

50

100

150Mumbai

Delhi

Bangalore

Chennai

PuneHyderabad

Indore

Bhopal

Ahemadabad

Mumbai(780 Kms)

(MPV - 1000) Pune(800 Kms)

(MPV - 206.51)

Bangalore(1400 Kms)

(MPV - 254.52)

Chennai(1430 Kms)

(MPV - 362.84)

Hyderabad(840 Kms)

(MPV - 257.9)

Delhi(740 Kms)

(MPV - 789.5)

Ahmedabad(570 Kms)

(MPV - 220.63)

Kolkata(1350 Kms)

(MPV - 613.19)

Key Markets

(Distance From Bhopal)

MPV – Market Potential Value

Source: (Reference: RK Swamy)

MP: The Right Place with the Right Environment

MP is centrally located. The State is at an easy distance from

all the key consumer markets in the Country.

DESTINATION MADHYA PRADESH

- Distances rounded off**Source: India Today (September ‘06 Issue)

Fastest mover* in overall

performance among the

big States in the Country.

Fastest mover in agriculture

Fastest mover in

infrastructure development.

Ranks 2nd in terms of

governance.

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

* Fastest mover is the State where the rate of improvement between 2003 & 2006 was greater than that between 1991 & 2003

Bhopal and Indore have substantial cost

advantages, even when compared to other Tier

III and IV cities.

Savings in Office Space Rates

(A comparison of rates in Central Business Districts)

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.

(Estimated Values for Multi-product SEZs)

Savings in Land Cost

0%

20%

40%

60%

80%

100%Vishakapatnam

Chennai

Greater Noida

Chandigarh

Jaipur

Indore

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Industrial Policy: Catalyst for the InvestmentsThe 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.

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

• 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 @ 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

SPECIAL INCENTIVES

SP

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IALI

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CT

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E Crystal IT Park Indore

Food ParksMandsaur, 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

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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

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.

Total developed area

7,147 Hectares

Total allotted area3,089

Hectares

Total units established

1,360

Growth centres 19

Doing Business Made Easy Through MPAKVNIN

DO

RE

AK

VN

Area Developed: 1,330 Hectares

Allotted: 618 Hectares

Units established: 286

Major Groups:HEG, Crompton

Greaves, P&G, Godrej, Lupin, IFB,

Oswal, Nahar

Special Infrastructure: ICD, Food

Park

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

BH

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AK

VN

JAB

AL

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KV

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WA

AK

VN

Pithampur, Kheda, Dewas, Maksi, Megh Nagar

Malanpur, Malanpur Phase II, Banmore, Chainpura, Siddhgawan, Pratappura

Rewa, Waidhan

Borgaon, Maneri, Purena

Mandideep, Pillukhedi,

Mandideep Phase II

Source: MPSIDC

Sector Profile

Information Technology/ Information Technology Enabled Services Industry

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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

Sector Profile: IT/ ITeS Industry

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• Over the last decade, India has been recognized as a major and credible

Information Technology (IT) outsourcing destination the world over. The IT

sector is one of the fastest growing segments of Indian industry.

• Indian IT/ ITeS industry continues to deliver double-digit growth over the past

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

1999-2000. Over the same period, the industry’s contribution to the national GDP

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.

• 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 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.

GROWTH DRIVERS

• 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.

Information Technology: Evolving Landscape

IT & ITeS industry is expected to grow to USD 148 Billion by 2012

IT/ITeS Exports

13.3

18.2

23.9

0

5

10

15

20

25

30

2003-04 2004-05 2005-06

$ b

n

Source: Nasscom

Source: Nasscom

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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).

• 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.

• 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.

• 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.

EXPORTS

The IT/ ITeS exports from MP is USD 655 million:

• Software exports: USD 11 million

• IT Enabled Services: USD 644 million

MP EXPORTS

45.60%

10.90% 1.80%

26.80%

Soyabean

IT/ ITeS

Diamond

Leather Products

BHOPALINDORE SEZ

MA

JOR

IT P

LA

YE

RS

IN M

P

Proposed investment of USD 34 million

Proposed

Source: www.sezindore.com

Source: www.sezindore.com

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Growing IT Sector in MPSoftware Technology Park – Indore

• State of the art facility being set upon 1,00,000 sq ft of

space.

• Data communication facilities are available through the hi

speed STPI and VSNL networks.

• Fully air-conditioned space with round the clock canteen

and well maintained surroundings

• 100% power backup

Hardware & Software Technology Park – Bhopal

• 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

• Facilities for housing, entertainment, schools to be built in

and around the campus of the proposed 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

IT Park – Gwalior

• IT infrastructure is being developed on 50 acres of land

through private participation.

• The Park is being developed as a training hub imparting

advanced training for the needs of the IT industry

With all the ingredients of a metro, without pollution, traffic and rapidly increasing property prices, Bhopal, Gwalior and Indore is everything about opportunity

STP Indore

Crystal IT Park

Hardware & Technology Park

IT Park

PROPOSED/ EXISTING PROJECTS IN M.P.

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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

State Scores

Andhra Pradesh

Maharashtra Madhya Pradesh

Gujarat Karnataka

1 Income tax department- filing of tax returns 94.6 85.6 80.0 92.4 90.4 82.0

2 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

Source: IDC, 2006

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TREASURY NETWORK

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)

M.P. State Agriculture Marketing Board (Mandi Board) has initiated

computerization of all its offices and mandis (around 230) phase wise, to facilitate

e-agricultural marketing in MP Private sector company are implementing this

project on a BOO Model. Presently a pilot is under implementation.

COMPUTERIZATION OF PROPERTY RECORD REGISTRATION

Stamps and Registration Department, another major revenue earning department

of the Government, is in the process of computerizing its operations. Software for

the activity has been developed and a pilot project has also been operational.

Now the department is rolling out the pilot in all its offices on BOT model

TRANSPORT DEPARTMENT

The department has implemented computerization of its activities viz. issue of

driving licenses, vehicle registration, permits etc. With Smart Card interface, on a

Build Own Operate (BOO) basis, the project has been operational since January

2002

LANDS RECORD DIGITALIZATION

Project implemented to computerize the record of ownership of agriculture land of

approximately 6.50 million landholders. It has been operational in the entire State

for quite sometime now and almost all the records have been digitalized. Copies

of the records are made available to the citizens, at Tehsil Offices

• 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.

Computerization in Government Departments: e - GovernanceGovernment 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.

MADHYA PRADESH TAXATION NETWORK

Commercial Tax Department, the highest revenue earning department of the

Government, has implemented an ambitious and comprehensive project to

facilitate on line registration and filling of tax returns. Under this project, a

database of all tax payers has been created and all 55 locations of the

department are networked

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Emerging IT/ITeS Hubs of MP

TheS. No

FACTORS Major Cities of MP

BHOPAL INDORE GWALIOR JABALPUR

1 Population 1843510 2465627 1632109 2151203

2 Educational Infrastructure

Engineering Degree Passouts 7740 3780 2580 2090

Engineering Diploma Passouts 965 665 790 1629

MBA Passouts 1020 1550 370 320

Presence of Major Institutions Maulana Azad National Institute of Technology, National Law University Judicial Academy

Indian Institute of Management

Indian Institute of Information Technology

& Management

Agriculture University

3 Basic Infrastructure

Air Connectivity 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

4 Support Infrastructure

Hospitals Excellent facilities Excellent facilities Good facilities Good facilities

Hotels Presence of 3*, 4* & Heritage hotels

Presence of 3*, 4*, 5* hotels

Presence of 3*, hotels Presence of 3*, 4* hotels

Malls/ Movie Halls/ Shopping Excellent facilities Excellent facilities Good facilities Good facilities

5 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

Source: Census 2001, AICTE, Local survey, IGRS, District website

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• 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.

KEY CONCERNS OF THE INDUSTRY

HOW MP OFFERS AN ADVANTAGEBENEFITS/ SAVINGS

Rising Salaries

(In India the rise in

salary is 13% YoY)

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

Considerable

annual savings

Land/ rentals costThe rate of prime land is among the lowest as compared to

other areas of the Country

Considerable

annual savings

ConnectivityHigh speed data communication facilities are available at a

bandwidth of 2 Mbps

High speed

connectivity

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

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

COST INDICATORS FOR ESTABLISHING AND OPERATING BUSINESS IN MP*

Some of the other supporting factors assisting your business would be:

• Central location

• Low set-up costs (Land, building etc)

• Specialized infrastructure

• Low operating cost

• Low attrition rates

• Government support etc.

MP – An Investment Destination

* Source: IBEF Reports (2005)

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Advantage MP

Education*No. of

InstitutesNo. of

Students

Engineering 61 20210

MCA 45 2310

MBA 47 3735

Polytechnics 49 9094

Industrial Training 110 14298

TOTAL 312 49647

• 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 e-Governance 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.

• The Government has signed a Memorandum of Understanding with the Reliance group for providing telecom connectivity to 7,800 kiosks across the State.

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

quality education and provide the sources of quality workforce. The cost of

professional manpower is comparatively less in MP (10-15% cheaper) as

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.

*Brochure from IT Department

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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:

* Source: Brochure

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.

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MP – Offering Specific Incentives

* Source: Brochure

• 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

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Crystal IT Park• Developed on 21 acres of land in Bhopal• 5,50,000 sq ft of space under development

• 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

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

Way Forward

PROJECT STATUS FACILITIES OPPORTUNITIES

Considering the present scenario and the momentum being gained by the industry, the State is poised to be the next IT haven of India

• 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.

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Connecting Further

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