Power firms see a ray of hope in MP

Big service sector firms like Genpact, Wipro, and Teledata are planning to spread wings in Madhya Pradesh.

"Skilled workers and good infrastructure are needed. Madhya Pradesh meets the company's expectations," said K Padamnabhan, managing director, Teledata Ltd. His company is planning to invest Rs 150 crore in Bhopal IT Park.

The state is overhauling its existing industry policy to attract more industries. "We are coming up with an amended industry policy soon and hope we sort out problems of industry and iron out our shortcomings," said OP Rawat, principal secretary, department of industries. But it is not the industrial policy that serves the purpose.

According to State Industrial Development Corporation figures, land is available at Rs 100 per sq metre in Madhya Pradesh. Even the special economic zone in Indore offers land at Rs 450 per sq metre.

On the other hand, Noida offers land at Rs 1,400 per sq metre, Manesar at Rs 2,200 per sq metre, Faridabad at Rs 2,300 sq metre, and Gurgaon at Rs 4,500-7,500 sq metre.

"Hiring executives is cheaper by 30-35 per cent. In addition, Madhya Pradesh has logistics advantages and promotional assistance equivalent to 50-75 per cent of the value-added tax and central sales tax deposits for industries. With 65,000 technical people available per annum, the cost of skilled labour is just Rs 110 per day, as against Rs 160-185 per day in metros," said an MPSIDC statement, quoting the Tata Statistical Outline of India Survey.

The ratio of gross output to capital invested is also the highest in Madhya Pradesh. Even Tamil Nadu has lower returns (Rs 1.85 per rupee invested) on investment than Madhya Pradesh (Rs 1.86).

Big power firms see a brighter future in the state with the opening up of the coal sector while infrastructure companies too see opportunity in Madhya Pradesh, which is logistically equidistant from all metros.

"Madhya Pradesh is centrally located and offers the best option for aviation in cargo handling and maintenance, repair and overhauling (MRO). We will be able to create the best facility," said Manish Lund, head, Greemach's Bhopal cargo project.

The company has planned to invest Rs 1,000 crore in creating a cargo complex. Despite favourable climate, a number of companies are yet to make clear their plans in Madhya Pradesh.

The following are yet to make progress: ITC's greenfield paper plant with an investment of Rs 2,500 crore; Abhishek Industries' plan to set up a textile mill with an investment of Rs 850 crore; Sanghi Industries' cement and power plant with an investment of Rs 6,400 crore; ISN International's power plant in Sidhi with an investment of Rs 10,000 crore; GMR's thermal power stations of Rs 8,000 crore; and Lanco Infrastructure's Rs 4,000 crore thermal plant.