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Articles

M.P. : A growing industry friendly state

Bhopal : Tuesday, October 31, 2006


In modern economic terms Madhya Pradesh is a late starter. Predominantly the state, albeit tagged as backward state, corners a fair chunk in agriculture, forests and natural resources.  Also known as the soya bowl of the country, Madhya Pradesh churns out tonnes of soya oil, produces the most palatable food grains like wheat, pulses and legumes and provides ample opportunity to thousands of unskilled farm labours. Despite sever financial strain during late nineties, state has showed signs of improvement at micro as well as macro economic indicators.

The gross state domestic product (GSDP) that stands at Rs 90736.83 crore at current prices (base year 1998-99) and Rs 65520.15 crore on constant prices (1993-94) augur well of the state. The state has adopted a fast pace during the past two years – with more than Rs 100,000 crore investment in hand, improvement upon 72000 kilometers of roads, new ventures in areas of information technology, special economic zone, real estate and infrastructure. Add to it, speedy completion of 1000 MW Indira Sagar power project and 520 MW Omkareshwar Power Project and 400 MW Bansagar power project and other projects have paved the way for making the state a power surplus by 2008.

With speedy process of project implementation of Central government development schemes, the state has many firsts into its account – be it river linking, higher spending on rural job creation under Employment Guarantee Scheme, or infrastructure creation.

A copious amount of investment is pouring in the state in various projects like Bina Refinery, new textile units in Mandideep and food-processing units in food parks. On Industrial sector, small and medium enterprises have been given proper attention. During March 2006 to June 2006 the state bankers have increased credit flow by Rs 28 crore to touch a figure of Rs 2085 crore from Rs 2057 crore to SSI sector.

While on agriculture sector, bankers in Madhya Pradesh have surpassed the Central government target of doubling agri credit in two years against the set deadline of three years.

A total of 71423 new farmers have been brought under banking services during the first quarter of this year. The commercial banks in the state have extended a credit of Rs 572.41 crore to 44794 farmers in the first quarter of this year. As many as 7758 new investment projects have been financed by 1639 rural and semi urban branches of commercial banks up to June 2006. With agriculture sector looking up, the export basket of Madhya Pradesh is swelling. India’s first operational special economic zone (SEZ) in Indore has not only attracted industries but also has triggered a race for creation of more SEZs. As a result more at least six SEZs have been cleared by a Central government.

The new export-oriented ventures in India’s first operational Special Economic Zone (SEZ) are self-evident that state not only has progressed but also has set an example for public-private partnership. The state industry is also looking up for further investment and exports in oilseed and pulses production, opportunities for food processing industries, textile sector, auto makers, down-stream projects, developers at refineries, entertainment industry, IT industry, herbal and medicinal plant growers, pharma industry.

Madhya Pradesh has the highest growth rate in food grains, oilseeds and pulse production. A backbone of 20000 km of optical fibre network ensures better connectivity and an international gateway that offers immense potential for Information Technology, knowledge process outsourcing, business process outsourcing and other related activities.

The Bhartiya Janata Party led government after taking over reins from the Congress government in 2004 has beckoned the state into positive territory and has made all possible efforts to bring some ailing industrial sectors around by leaving a larger space for common people breath.

During the past two-and-a-half years, big corporate houses like ITC, Reliance, Airtel, Tatas, SRF, JK Industries, etc., have not only evinced interest in the state but have made considerable investment.

The new Industrial Promotion Policy 2004, which is under further amendments process, has paved the way for industrialists to come forward. The policy makers have tried to build a confidence among them about investing in Madhya Pradesh by organizing various programmes and interaction. For the first time apex Indian Business Chamber Federation of Indian Chambers of Commerce and Industry (FICCI) and state government have join hands to market the state globally and results are encouraging. It is expected that within five years the state will be a major investment destination for world companies.

The state has a slew of projects to showcase. A world-class digital auto testing track proposed near Pithampur on an area of 4000 acres, logistic and cargo hub for airline Industry in Bhopal, a world class institute of life sciences and biotechnology medical plant production and processing centers, eco and adventure tourism projects, fisheries and tourism project at Indira Sagar Dam (Asia’s biggest reservoir) development of Buddhist Circuit in Madhya Pradesh, World-class Bina Refinery project, an IT Park at Bhopal and a Software Technology Park at Bhopal and a Science City at Dewas will make the state among top world class states.

Madhya Pradesh has unlimited potential, the need is to harness natural resources and tap the hidden potential in its rich bio-diversity, agro climatic zones, dense forests, rich cultural legacy. The hardworking and peace-loving citizens of this diamond producing state are now gearing up for change. A change for development and for the betterment of the society.


R.M.P. Singh

 

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