Despite being a relatively late entrant to India’s growth story, Madhya Pradesh, with a population of seven crore, has sprinted ahead of many others, recording an 18 per cent growth in agriculture in 2011-12, a first in the country.
The state is striving to find its own niche. “We are not copying others but building upon our own strengths,” says Chief Minister Shivraj Singh Chouhan, as he prepares to address the Third Global Investors’ Summit, to be held in Indore, the state’s financial capital, from October 28 to 30.
Excerpts from an interview with Business Line :
How is the upcoming Indore Summit different from the others held similarly in different states?
Our focus this time is on industries that can create more job opportunities for the people. We do welcome big-ticket investments but our preference is for smaller ones. We will devote the first day of the Summit to the SMEs. Mining is no longer the only major focus area in our State.
How much investment was committed in the first two Summits held in Indore (2007) and Khajurahi (2010) and what has actually come to the State?
Since 2006, the State Government has signed 189 MoUs, including 74 in the 2010 Summit. Implementation has commenced in 63 projects, involving approved investments of Rs 80,690 crore with an employment potential of 64,020. Investments of Rs 28,000 crore have already come in and work on Rs 1.10 lakh crore worth of projects is in progress.
In all, we have so far received commitments to invest over Rs 10 lakh crore in 114 projects with job potential of over 3.65 lakh. Some of the projects could not take off due to environmental issues or recession but many serious ones have progressed.
What does M.P. offer the investors that is different from other states?
We are uniquely situated at the very heart of an Incredible India from where businesses can reach all parts of the country at ease. We have no dearth of basic infrastructure. We have identified 20,000 hectares to offer, we will be power-surplus in 2014, our roads are improving and lengthening every day and we have no dearth of water.
What is so unique in Madhya Pradesh that attracts investors?
Our stupendous success in infrastructure-creation and progress in fields like agriculture, irrigation and power generation over the last decade. Madhya Pradesh is now the first in India to have achieved 18 per cent growth in agriculture in 2011-12, we are second in Gross State Domestic Product (GSDP) with 11.98 per cent growth rate. This was done with improved canal system and realisation of irrigation resources, providing farm inputs to farmers at a lower cost. We have no cooperative farm loans now, against 16 per cent in 2003. Construction of farm ponds under the Balram Talab Scheme contributed to increasing irrigation potential.
Besides, we now have an installed capacity of nearly 9,100 MW and will be supplying uninterrupted power to all the villages from next year. We would soon have 8,000 MW of electricity to spare for rural industries alone.
What are the focus areas at the Global Investors’ Summit 2012 at Indore?
Our focus sectors this time will be agri-business, food processing, renewable energy, IT-IT enabled services, logistics and warehousing, technical education and skill development, healthcare, tourism, textile and apparel, automobile engineering, infrastructure (road and industrial infrastructure). Our major focus will be investments in small-scale industries.
What are the relevant policy measures taken by the State Government to attract fresh investments?
We have realised that smaller investment in big numbers can create more jobs. For instance, a Rs 10 crore investment in food processing can potentially create 400 to 500 direct and indirect jobs. An investment of Rs 20,000 crore on small scale industries can similarly create about two lakh jobs. So, we have initially taken up tourism sector to provide all facilities available to other industries. This sector has tremendous growth potential in MP which is rich in heritage, history and pilgrimage. Also, our focus is on making the State a logistic and warehousing hub as its very location at the centre of India makes it an ideal choice for this sector which, too, has vast job potential.
How many investor-participants do you expect at the upcoming Summit?
We are expecting around 2,200. We already have confirmation from nearly 1,500, representing 700 companies. And they include those from big business houses to the smaller ones.
What is the current status of human development index in M . P.?
I admit a lot needs to be done on this score. We are really concerned at the state of malnutrition in some areas of M.P. But we are trying to improve the standards of food availability and healthy diet. Under the Atal Bal Arogya Mission, we have increased the number of two meals a day to three as the first step. We hope to do better in the coming year.