madhya pradesh review
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Madhya Pradesh:Tiger State
Tourism: Manasvi D.K. Mehta
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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*
Indias 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 (MPs 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
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ROADNETWORK
AIRPORTS
RAILWAYNETWORK
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 runthrough 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 Indiancities like Delhi & Mumbai to Bhopal,
Jabalpur, Gwalior, Indore andKhajuraho.
5 operational airports.
Indore airport has the capability ofhandling international cargo.
An international airport proposed inBhopal.
Enabling Infrastructure
MP IS CENTRALLY LOCATED AND WELL
CONNECTED WITH ALL MAJOR CITIES IN INDIA
INDORE BHOPAL
JABALPUR
GWALIOR
KHAJURAHO
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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
Over100 agricultural farms with
an area of over 20,000 acres is
available on lease to investor
Indias 1st operational
Greenfield SEZ at Indore
Favourable climatic
conditions for cottonand over40,000 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 PowerPlants lucrative
Offers diverse tourists destinations
catering to various segments of
tourism such as religious (Bhojpur),
eco/ adventure (Panchmari), heritage
(Sanchi, Khajuraho) tourism etc.
a ya ra es : re erre nves men
Destination
Various blocks available
for power, cement, ironand steel units
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0%
20%
40%
60%
80%
100%
Vishakapatnam
Chennai
Greater Noida
Chandigarh
Jaipur
Indore
0
50
100
150
Mumbai
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 FromBhopal)
MPV Market
Potential Value
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 PRADESHFastest 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
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n us r a o cy: a a ys or e
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 commercialtax 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 providedlimiting up to a maximum ofUSD 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
SPECIALIZED
INFRASTRUCTURECrystal 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
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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, however44% of
developed area is still untapped and open for investment.
Total developed area 7,147Hectares
Total allotted area 3,089Hectares
Total unitsestablished
1,360
Growth centres 19
o ng us ness a e asy rougMPAKVN
INDOREAKVN
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, FoodPark
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, FoodPark
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
BHOPALAKVN
GWALIORA
KVN
JABALPURA
KVN
REWAAKVN
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
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Tourism Industry in Madhya Pradesh
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Tourism: Mainstay of the Indian Economy
MP: Tourism Haven of India
MP: The Mixed Bag of Tourism
Harnessing the Benefits of Location Advantage of MP
M.P.: An Investment Destination
Way Forward
Sector Profile: Tourism
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our sm n n a: a ns ay o e n anEconomy
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 wellpositioned 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.
India is second of the fastest growing tourism economy in the world today.
(Exclusive research by the World Travel and Tourism Council- WTTC)
Foreign Tourist Arrivals in India
Foreign Exchange Earnings
Fact Sheet:
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our sm n n a: a ns ay o e n anEconomy
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 ofmedical
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.
Offer mixed bag of touristdestinations.
Presence of diverse cultures
in the Country.
All year round pleasant
season.
Stable political situation
Large number of skilled
human resource
India a favourable tourism destination in
the world
India a favourable tourism destination in
the world
India- Strategic Advantages Growth Drivers
Harmony in these two
factor leads to
India coming-up asOutsourcing Hub for various
countries
Investor friendly policies
Holistic development of
economy i.e. infrastructure,
connectivity, hospitality etc
Presence of centre of
excellence for tourism &
hospitality
Increase in domestic
travelers
Opportunities:
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And the list goes on
Kanha is the largest Wildlife Sanctuaryin 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 and25 game sanctuaries out of which four are
major tiger reserves.
Sacredrivers 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.
MP: Tourism Haven of India
Kanha National Park
Bhimbeteka
Amarkantak
Khajuraho
Sanchi
Pachmarhi
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MP: Tourism Haven of India
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 relativelyless 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
Foreign Tourists Arrival in MP (In 000)
Very high increase due to
Maha Kumbh Mela (oncein 3 years)
Continuo
usincrea
se
Overview:
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MP: Tourism Haven of India
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, thereare various heritage properties which government is keen on converting
into Heritage Hotels with the association of private parties.
Number of Hotel Rooms Available in MP (2004)
Category-wise Hotels in MP (2004)
Source: Crisinfac Report
* 5D: 5 Star Deluxe CA: Classification Awaited
Hospitality Sector:
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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
Tourism Destinations
Heritage Tourism Gwalior, Orchha, Khajuraho,Sanchi, Mandu,Datia, Burhanpur etc
Pilgrim Tourism Ujjain, Maheshwar, Omkareshwar, Chitrakoot,Amarkantak, Sanchi, Orchha, Amarkantak etc.
Eco & AdventureTourism
Pachmarhi, Kanha, Bandhavgarh, Panna,Satpura, Pench Valley National Parks, Tigra
Lake (Gwalior), Upper Lake (Bhopal), GandhiSagar (Mandsaur) etc
Leisure & BusinessTourism
Pachmarhi, Khajuraho, Bhopal, Gwalior, Indore,Mainpat, Tamia, Jabalpur etc.
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
Tourist Destinations & Circuits in MP
arness ng e ene s o oca on
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arness ng e ene s o oca onAdvantage of MP
*1 km= 0.6 miles
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 withhigh 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 interms 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.
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MP: An Investment Destination
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 sett ing 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 commercialoperations.
The State Government is giving several incentives to the private investors. It has laid down specific policies for
Eco & Adventure Tourism
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 followingconcessions 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.
Incentives for Tourism Industry
Incentives for Eco/ Adventure TourismEco & Adventure
Tourism in MP
Rock Climbing
Raisen fort
Gwalior fort
Narwar fort
Asirgarh fort
Parasailing
Pachmarhi Escarpment
Tamia to Patalkot
Mandu
Wanchu Point
Raisen Fort
Canoeing/ River rafting
River Narmada
River Tons
River Chambal
River Ken
River Son
Jungle Safari
National parks of-Kanha
Satpura
Panna
Pench
Water Sports
Project such as:
Tawa, Hoshangabad
Kaliaspot & Halali, Bhopal
Barna, Raisan
Gandhi Sagar, Mandsaur
Tigra & Harsi, Gwalior
Mohini Sagar, Shivpuri etc
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MP: An Investment Destination
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 heritagehotel 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
Special policies and incentives are offered for promoting Heritage Tourism.
Incentives for Heritage Tourism
Conversion of
heritage wealth of
MP to generate
economic benefit
Conversion of
heritage wealth of
MP to generate
economic benefit
Heritage Hotels
Heritage Village
Forts
Palaces
Havelis/ Kothis
Villages
earmarked with
the potential of
tourism
http://images.google.co.in/imgres?imgurl=http://village.clinton.bc.ca/images/pg1_2.jpg&imgrefurl=http://www.village.clinton.bc.ca/&h=438&w=550&sz=92&hl=en&start=4&tbnid=ArqcP6O8JiIYGM:&tbnh=106&tbnw=133&prev=/images?q=village&svnum=10&hl=en&lr=&sa=G -
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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.
Tour operators
A/c Luxury coaches
(Volvo buses)
A/c Mini buses
Imported limousines
Tour
OperationsAccommod-
ation
Entertainment Experience
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
Opportunities For Private Investors at Every Step
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Madhya Pradesh State Industrial Development Corporation
Madhya PradeshTourism Development Corporation Ltd.
http://www.mpsidc.org
http://www.mptourism.com
Connecting Further
Im on Facebook www.facebook.com/manasvirajmehta
Im on Twitter www.twitter.com/manasvirajmehta
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