In 2007, when Madhya Pradesh had organised its first Global Investors Summit, chief minister Shivraj Singh Chouhan declared that the state’s industrial development was about to take off and the government would leave no stone unturned to develop world-class infrastructure. Eight years down the line, even as the state has seen rapid industrial growth, the development of industrial infrastructure has failed to keep pace.
Industry leaders and officials say that development of world-class infrastructure and other amenities in the recently acquired land parcels near Indore remains a big challenge for the state government.
As curtains go down on 2015, the challenges ahead – both short-term and long-term – in terms of industrial development are closely linked with the government’s ability to create conducive business environment to the satisfaction of potential investors. In one of its most ambitious projects in recent times, the government has drawn up plans to build two world-class industrial hubs exclusively for investors from Japan and Korea in Pithampur. The government has earmarked 1,200 acres land for the project. While an MoU has been signed with Japan External Trade Organisation (JETRO) for setting up Japan Industrial Town in one of the hubs, the government is in talks with Korean investors.
The project falls in Pithampur-Mhow-Dhar investment region of Delhi-Mumbai Industrial Corridor (DMIC), and DMIC Development Corporation has already given its green signal. The state government will now float tenders for developing basic infrastructure and then allocate plots to the investors. “The success of the project hinges on development of superior industrial as well as social infrastructure. Basically, the government needs to make Japanese and Korean investors feel at home, as is the case in Nimrana in Rajasthan” CII Madhya Pradesh state council chairman Girish Mangla said.
One area where government’s efforts have failed to bear fruit is that of launch of international flights from Indore. The air connectivity to international destinations will boost the prospects of the region as an investment destination.
“The airport has the infrastructure to launch international flights, but ultimately it is up to the airlines to begin the operations,” Indore airport director Manoj Chansoria said.