Madhya Pradesh: Means business

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Madhya Pradesh Means business
Mineral Industry
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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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Mining Minerals Industry in Madhya Pradesh
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Sector Profile Minerals
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Mining Mainstay of the Indian Economy

• India is endowed with significant mineral
  resources and produces 89 minerals classified as
  fuel mineral (4) metallic mineral (11)
  non-metallic mineral (52)and minor minerals
  (22).
• The mineral sector accounts for 11 of the
  Countrys industrial production. 
• The total value of mineral production (excluding
  atomic minerals) during 2005-06 is estimated at
  USD 16.7 billion, wherein fuel minerals
  contribute the largest share (USD 12.54 billion).
• During the year 2004-05, the provisional value of
  export of ores and minerals was approximately USD
  15.41 billion, in which diamond (mostly cut) was
  the major export item accounting for 67.1 of the
  total exports, followed by iron ore (20.1) and
  granite(3.7).
• The key mineral producing states of the Country
  includes Madhya Pradesh, Chhattisgarh, Jharkhand,
  Andhra Pradesh, Maharashtra, Orissa, Rajasthan,
  Tamil Nadu etc.
• Various international mining companies such as
  BHP Minerals- Australia, Meridian Peak Resources-
  Canada, Metdist- UK, Phelps Dodge Corporation-
  USA and Rio Tinto- UK among others, have received
  licenses for mining in the Country.

Value of Mineral Performance in India
Source Ministry of Mines, Govt of India
Value Contribution of Minerals in India
India is the worlds largest producer of mica
blocks and mica splittings third largest
producer of chromite third in production of coal
lignite and barytes fourth in iron ore sixth
in bauxite and manganese ore tenth in aluminium
and eleventh in crude steel.
Source Ministry of Mines, Govt of India
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Mining Mainstay of the Indian Economy

• The public sector is a dominant player in the
  sector and contributes over 85 of the total
  value of mineral production. 
• However, recently Indian non-coal mining
  sector has fully opened the doors for private
  investment (both domestic and foreign).  The
  changes/ modifications in the Mineral Policy,
  have made India comparable to any liberal regime
  existing in other major mineral producing
  countries in the world.
• The mineral sector is highly fragmented where 95
  of operating mines produce about 50 of the value
  of the minerals, thereby providing an opportunity
  of consolidation..

Status of Mineral Reserves in India

• As a result of economy boom, resurging industrial
  production and rapid infrastructure development,
  the demand for minerals is growing fast in the
  Country. The emergence of a vibrant middle class
  has created demand for base metal products, in
  addition to the traditional demand for gold and
  silver.
• This has lead to the need of systematic search
  and evaluation of new deposits and intensive
  exploration of the same to boost the production
  of the reserves of minerals.
• In this regard, India is looking for
  state-of-the-art technological and management
  expertise, which can improve productivity through
  good planning and design of mines, reduction of
  costs, and optimisation of smelting and refining
  operations and by-product recoveries.

Source Tata Energy Research Institute.
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MP Mineral Hub of India

• Overview
• The State of MP has a rich and vast mineral
  deposits which includes diamond, slate,
  pyrophyllite, diaspore, coal, limestone, copper
  ore, manganese among others. Besides, the state
  also has favourable geological and geotectonic
  settings.
• The State ranks third in the Country in mineral
  production.
• Active mining of these minerals is generating
  revenue of more than USD 118.65 million per
  annum.
• MP is the sole producer of diamond in India.
• The State has 41.36 (largest) of the total
  national reserves of copper ore. It houses
  Indias largest opencast copper mine at
  Malanjkhand, district Balaghat.
• It boasts of the thickest coal seam (135m) of
  Asia at Singrauli coalfield in Sidhi district.
• MP is the major producer of limestone and third
  largest cement producing State with a share of
  14 of total cement production in the Country.
• It is also the major producer of Coal, Diaspore
  and Pyrophyllite, Manganese, Dolomite, Glass sand
  and Fire clay.
• The State is fast emerging as a dimensional stone
  producer
• Major reserves of Coal Bed Methane (CBM) have
  also been identified in the State.

Reserves of Important Minerals of M.P. v/s India
Source Directorate of Geology Mining, MP
M.P.s Mineral-wise Revenue (2004-05)
Source Directorate of Geology Mining, MP
Source http//www.mp.nic.in/geologyandmining/
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MP Mineral Hub of India

• Mineral Based Industries in The State
• The land parcels in the eastern, south-eastern
  and western belts of M.P. are the rich in various
  mineral reserves.
• Most of these minerals are supplied to other
  states in crude or semi-processed forms for
  commercial use and further processing.
• Due to the large availability of minerals,
  several mineral-based industries have come up in
  and around these areas. Some of these industries
  are cement, thermal power, coal washeries etc.
• The mining industry along with the downstream/
  allied industries have been the major source of
  employment in the State.

Mineral Reserves Mineral Based Industries in
M.P.
Mineral based industries in the State has been a
major driver in infrastructure development and
employment in the related regions.
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MP Mineral Hub of India
Taking Mineral Industry a Step Further

• The State has proposed to set-up Mineral-based
  industrial parks to give an impetus to the
  industry. The cluster approach adopted by the
  Government would support the core mineral
  industry as well as the allied/support industries
  such as jewellery making, crafting, cutting,
  polishing etc. The units/ companies in these
  parks would enjoy various fiscal and non-fiscal
  incentives that would be offered by the State
  Government.
• Further, these clusters/ parks would have two
  pronged benefits for the State Government and
  industries wherein it will be a source of
  generating employment in the State and would be a
  source of skilled manpower required for specific
  industries.

STONE PARK, KATNI
GEM JEWELLERY PARK, INDORE

• Gems and jewellery park is proposed to be set-up
  in Indore.
• The Park would focus on cutting, polishing,
  designing and marketing of precious stones and
  gold jewellery and export of the same.
• Land area of about 7 acres have been proposed for
  the Park, which could house about 200 units.
• The proposed site is very close to Indore airport
  (2.1 km) and railway station (15 km).
• M.P. Export Corporation Limited would promote the
  park, develop the scheme and provide management
  for setting up units in the Park.

• In order to harness the benefits of marble
  deposits in and around the Katni district, the
  State has come up with the Stone Park at Hardua.
• The Park is spread over an area of 120 acres and
  would house 40 units.
• It would focus on production, cutting, polishing,
  finishing and export of marbles.
• The location is in proximity to highway and
  railway station making it easy for
  transportation.
• M.P. Industries Development Corporation has been
  appointed as agency to development the
  infrastructure for Stone Park.

The Government has also proposed - Granite
Park in Tikamgarh/ Sagar/ Chhatarpur and -
Diamond Park in Panna
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Location Analysis

• MP belt constitutes of the oldest group of rocks
  comprising of Archaeans and Proterozoic formation
  that constitutes nearly 45 area of the State.
  Further, other younger formations also have a
  significant presence, thereby justifying the vast
  and varies mineral reserves.
• In addition to this, M.P. is centrally located
  and well connected through road and rail to other
  states. This makes the transportation of crude
  minerals/ ores from M.P. to other states
  relatively easier. Further, M.P. has proximity to
  the major industrial states of the Country such
  as Maharashtra, Gujarat, Uttar Pradesh etc.
• The State is the major source of raw material for
  the sustenance of the industries in other states.
  It supplies bauxite, manganese, copper ore,
  marble etc. to various states of the Country, as
  shown in the figure.
• The vast unexploited mineral reserves in the
  State, offers a long term strategic opportunities
  to national and international mining companies.

Marble, Copper Ore (concentrated)
Diamond
Bauxite, Cement (Limestone)
Bauxite, Manganese
Manganese, Cement (Limestone)
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Advantage MP
MP Offers following Advantages to Mining/ Mineral
Industry
Primary Advantage
Secondary Advantages

• Vast mineral resources
• Cost Competitiveness
• Land prices are highly competitive as compared to
  other regions like Maharashtra, Andhra Pradesh,
  Gujarat etc.
• Labour cost is less as compared to other mineral
  intensive states.
• Cost of living in M.P. is much lower vis-à-vis
  other industrial states in the Country.
• Quality Human Resource
• Disciplined workforce and claims zero man days
  lost in past several years in the State.
• Large pool of skilled technical people along with
  the skilled labour force.
• Well Established Infrastructure
• High end technology used for mapping the mineral
  resources in the State and mining of the same.
• Good connectivity through road and rail to other
  states acts beneficial for transporting raw/crude
  minerals
• Well established industries such as thermal
  power, cement, refractories, cutting and
  polishing units in the State, reemphasises the
  advantage of its strong industry base and
  technical know-how.

MP can cater to all the activities across the
value chain
Indicative minerals
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MP An Investment Destination
What Makes it Further More Attractive is the
willingness support of the State Government to
the industry and the increasing demand for
minerals and mineral based products in MP and
other neighboring states.
Demand drivers
There is year round demand for cement, marble,
granite in the neighbouring states such as
Maharashtra, Uttar Pradesh etc, where the real
estate and infrastructure industry is witnessing
a boom. With vast presence of limestone, marble
and other such minerals M.P. is considered as
favourable destination for cement manufacturers
and other mineral based units.
Potential opportunities
The abundance of natural resources, large part of
which still remains unexploited coupled with the
growing economy and rising consumption levels,
presents the huge potential for establishing
large industrial bases.
Government support
The State Government is providing various
incentives and concessions to the mining and
mineral industry which are mentioned below
Government Incentives Initiatives

• Priority status given to setting-up of industrial
  parks such as Granite Park, Gem Jewellery Park
  and Stone Park.
• Mineral Concession on export quality deposits of
  Granite, Marble etc shall be granted on priority
  to entrepreneurs who are willing to establish
  100 Export oriented units in the State. 
• All those areas reserved for Public Sector
  Undertakings shall be dereserved for private
  entrepreneurs if mining has not commenced in such
  areas so far or if they have not secured Mineral
  Concessions and started mining. State Government
  has granted Reconnaissance Permits to various
  private entrepreneurs for searching diamond, base
  metals other pollymetalic mineralisation
• Incentives given to Stone Park includes, rebate
  in premium for the allotment of land, facility of
  payment of premium in installments, Single
  Window system, permission to mortgage mining
  lease hold rights for obtaining the term loan,
  special cell of Directorate of Geology Mining
  to provide guidance, marketing support to the
  Park.
• Exemption from electricity duty given for 5 years
  to industries for their captive power plants
  (thermal) for which the effective steps have been
  taken within a year and where the units commence
  their power generation within the 3 years.

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MP An Investment Destination
MP is the tested grounds for various
mineral-based and allied industries.

• There is active participation of both public
  sector as well as private sector in the mining
  and mineral industry. The major players in
  various mineral areas are given in the adjoining
  table.
• Several other players have also evinced their
  interests in the sector and major players that
  have recently allotted/ commenced their units are
  as follows.
• Madhya Pradesh State Mining Corporation (MPSMC)
  has formed joint venture with Madhya Pradesh
  State Electricity Board (MPSEB) and Sainik Mining
  to use coal in Amelia district, Sidhi for thermal
  power generation in the State.
• MPSMC has formed joint venture with JP Associates
  for coal mining in Amelia North. JP Associates
  would use this coal for installing thermal power
  plant with power generation capacity of 500 MW.
• Hindalco and Essar Power would use the coal block
  in Mahan area for power generation capacity of
  650 MW and 1000 MW respectively.
• Further in Cement sector also companies such as
  SAIL in joint venture with JP Associates, Rewati
  Cement etc are also coming up with their cement
  manufacturing plants.

MP offers you vast natural resources, along with
the necessary infrastructure and skilled human
resource. The successful presence of major
international and national players along with the
supportive Government, provides you ample
opportunities in the mineral industry in the
State.
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The Way Forward
There are various reserves and related industries
in the mining and mineral sector where lies large
investment opportunities. Following are some of
the identified reserves and the potential
opportunities are given below.
Opportunities in Mining Industry

• Mineral reserves identified for private investors
• Technology partner with the Government for mining

Opportunities in Mineral-based Industry
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Connecting Further
Directorate of Geology Mining, Govt. of MP
http// www. mp.nic.in/geologyandmining/
http//www.mpsidc.com
Madhya Pradesh State Industrial Development
Corporation
http//www.mpgovt.nic.in
Government of Madhya Pradesh
Madhya Pradesh State Mining Corporation
Madhya Pradesh Industries Development
Corporation