Warehousing Logistics

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Opportunities for

Investments in
Warehousing and
Logistics Sector

May 2020
Madhya Pradesh: The Growth Centre of India
Huge Market Rich in Minerals Industry Ready Achievements

2nd Only 3,50,000 Clearance


in 15 days 4th Rank
Diamond KMs Public Service in EoDB 2019
Largest producing state of of road network
Indian State (by Area) India Guarantee Act

Asia’s
with
24,000 MW Abundant Skilled
97% in IPA
78
Million population
thickest
coal seam (135m.)
Installed power capacity
(Also, exclusive
DisCom for Mohasa
Manpower
More than 2 lakh
technical professionals
pass out every year
Rating 2019
coalfield Babai IA)

~50% Major producer of


Coal, Limestone,
900 MCM 122,000 Indore
Copper, Rock river Narmada Cleanest City of
India’s population
captured through
phosphate, Manganese,
Dolomite, Glass Sand & water reserved Acre India for 4th
adjoining states pyrophyllite for Industry Total Land Bank consecutive year
➢Global Transport and logistics sector is expected to reach to USD 15.5 Trillion by 2024

➢In terms of volume, globally, transport and logistics sector (Freight & Logistics) was
valued at 68 Billion tons in 2019 and is expected to reach 92.10 Billion tons by 2024

➢In the “World Bank Logistics Performance Index”, India's rank improved by 10 places
to 44 in 2018 from 54 in 2014

➢India's logistics sector currently employs nearly 22 million people and is expected to
grow at a rate of 16% till 2020

20+ GOVERNMENT 37 EXPORT $ 160 BILLION


AGENCIES PROMOTION COUNCIL MARKET SIZE
Madhya Pradesh
❑ MP Warehousing & Logistic Corporation (MPWLC) is the nodal agency for L&W sector
in Madhya Pradesh.

❑ MPWLC’s mandate is restricted to primary agriculture produce only

❑ MP Industrial Development Corporation’s mandate covers commodities (excluding


primary agri-produce) and policy support for the Logistics sector

❑ MPIDC’s industrial areas has dedicated warehousing spaces reserved for the L&W
purpose

❑ Land parcels in the developing / developed industrial areas under DIPIP, GoMP are
allotted on 'first come first serve' basis at the prevailing land rate applicable for
industrial purpose

❑ Investment in the sector is fiscally supported through investment promotion assistance


as per the dedicated L&W policy of DIPIP

❑ MD, MPIDC is the export commissioner of the state


Central location
of Madhya Madhya Pradesh offers ample opportunities in
Pradesh will Warehousing & Logistics
cater to the
industrial needs
located in MP,
Chhattisgarh,
Location Land
UP and All four corners of the country Large tracts of contiguous land
reachable within 24 Hours available
Rajasthan for
movement of
goods & raw
materials to
different
Labour Linkages
Skilled labour and comparatively lower
corners of the Presence of 300+ large industries
rates
nation
Location Centrally located 5 Commercial Airports
operating 100+ flights
Excellent Connectivity both E-W and N-S corridor
crosses state 1 International Airport
North-
New Delhi- South
Mumbai Corridor
Expressway

East-West
Corridor

Agra-Mumbai
Road

6 Inland Container Depots


Malanpur (Gwalior), Mandideep (Bhopal), 550+ trains crosses
Pithampur, Tihi, Dhannad (Indore), through state
Pawarkheda (Itarsi) 20+ Major Rail junctions
International Air Cargo Facility
available at Indore and Bhopal
Note: Map is representative only and not to scale.
Access to Huge Market
► 50% India’s population captured HP
through adjoining states Punjab
UK
HR
► 24 Hours Max Time required to reach
Raj. UP
any corner of India by road MP
BR

Bhopal JH
► 100 Mins flight time to reach major Kandla Port CG
WB

cities (Mumbai, Delhi, Pune, Hyderabad) Distance: 880 KM


OR
Paradip Port
MH AP
Telangana Distance: 1,250 KM
JNPT Port
Proposed Industrial Corridors Distance: 790 KM
`
Vishakhapatnam Port
Distance: 1,100 KM
✓ Atal Pragati Path (Chambal
06 Hours
Expressway)
▪ Connecting Sheopur, Morena and Bhind district 09 Hours
✓ Narmada Expressway Map is representative only and not to scale.
12 Hours
▪ Connecting Eastern MP with Western MP covering 13 districts

✓ Delhi- Nagpur Expressway Companies can serve most of India


▪ Approved by NICDC; Significant portion of the corridor will pass
through MP from a single location
Madhya Pradesh can cater to all Srinagar
4 regions of India
Gwalior North Region
Catering to all Jaipur(335), Lucknow(335), New Dehradun
major cities of Delhi(340), Bikaner(675), Dehradun(555),
North India Srinagar (1175)
Delhi
Bikaner Gangtok
Ratlam West Region
Equal distant Ahmedabad(320), Udaipur(240), Lucknow
Jaipur
from Delhi and Surat(425), Kandla(620), Mumbai(650), Gwalior Patna Shilong
Mumbai (700 Pune(678) Varanasi
kms) through Udaipur
Delhi Mumbai Ranchi
Expressway Kandala Ahmedabad Bhopal
Ratlam Jabalpur Kolkata
Surat
Bhopal South Region Raipur
Direct land, air Nagpur(350), Hyderabad(850), Pune Nagpur
and road Amaravati(1130), Panaji(1235), Mumbai Bhubaneshwar
connectivity Bengaluru(1440), Chennai(1475),
Thiruvananthapuram(2120)
Hyderabad
Jabalpur East Region
Under Raipur(355), Ranchi(690), Varanasi(460), Amaravati
influence zone Patna(700), Bhubaneshwar(900), `
Panaji
of Narmada Kolkata(1130), Gangtok(1265),
Progress Way Shilong(1700)
and proximity Bengaluru Chennai
fo North –
South Corridor
and

Thiruvananthapuram Map is representative only and not to scale.


1,20,000 Acres of Industrial Land Bank

Availability of contiguous land

Topography is smooth and undulating


Land Since abundant government land is available, land is cheap

No issue of water logging

Land Records being digitised


REGIONAL OFFICE GWALIOR
DEVELOPED AREA - 1905 Ha.
DEVELOPING AREA - 273.5 Ha
REGIONAL OFFICE BHOPAL
DEVELOPED AREA - 2704 Ha. REGIONAL OFFICE REWA
DEVELOPING AREA - 161.7 Ha DEVELOPED AREA – 257.3 Ha.
DEVELOPING AREA - 103.6 Ha

REGIONAL OFFICE JABALPUR


REGIONAL OFFICE INDORE
DEVELOPED AREA - 2056.6 Ha.
DEVELOPED AREA - 5425 Ha.
DEVELOPING AREA - 69.8 Ha
DEVELOPING AREA - 830.4 Ha

Note: Map is representative only and not to scale. Industrial Land Bank
One of the youngest states with median age 25 years as of 2016

62% of Population is in 15-59 age bracket as of 2016

Competitive labour rates

Labour 2,00,000 technical professionals adding workforce every year

Man days lost due to strikes & lockouts is less than 0.5% of the total available
man days

Global Skills Park in Bhopal

One of the lowest attrition rates


Presence of over 300 large scale industries

Pharma, Auto, Textile cluster in Pithampur

Food Processing, Engineering, Textile cluster in Mandideep

Rewa is a cement and power hub

Linkages Gwalior is a well developed industrial hub

6 Inland Container Depots

6 Container Freights Station

79 Cold Storages and capacity around 3,54,159 SqM.

234 Warehouses with capacity 14.98 Million MT (for primary agri-produce)


Doing business in Madhya Pradesh
► Madhya Pradesh has been consistently featuring among the ‘Top Achievers’ in EoDB rankings
► Madhya Pradesh has been ranked 4th by DPIIT, Govt of India in the State Reform Action Plan 2019 and
has been declared as the best performing state in Western region
► Invest Portal: State’s Single Window System (https://invest.mp.gov.in/) caters to the needs of the investors
from allocation of land to approvals of incentives and acts as a One Stop Solution for any business/
industry
► 45 services of 12 departments can be availed from the Portal
Industrial Promotion Policy: Key Highlights
Industrial Promotion Policy 2014 (1/2)
► Investment Promotion Assistance: Tax delinked investment assistance ranging from 40% to 10% of
investment in plant and machinery ranging from USD 1.3 Mn to USD 20.1 Mn (INR 10 crores to INR 150
crores), respectively
► Incentive on Employment generation: (100-2500 employees): 1 - 1.5 times
► Benefits to Export oriented units: (25% - 100%): 1 - 1.2 times
► Benefits for investment in priority blocks: 1.2 times

► Infrastructure Development Assistance: @50% USD 130K (INR 1 crore) each for power, water and
approach road to the site (private /undeveloped Govt. Land.)

► Green Industrialization (Waste Management System): for establishing ETP/STP @50% with a maximum
limit of USD 130K (INR 1 crore)
Industrial Promotion Policy: Key Highlights
Industrial Promotion Policy 2014 (2/2)

► Electricity duty exemption: for 5 to 10 years for new High Tension (HT) connection by a DISCOM

► Tariff Rebate : on new HT connection @ 1.5 cents (Rs. 1) per unit for a period as mentioned in MPERC tariff
order

► Incentives to provide employment to person with Disabilities (minimum 5% of total workforce)

► 100% reimbursement of skill development

► Employees PF/ESI assistance: Reimbursement of employee’s contribution- maximum USD 80 (INR


6000) per month for 5 years

► Medical insurance premium reimbursement

Customized package available for Investment for all mega scale industrial units which is above US$ 13 Mn
(INR 100 Cr) in P&M
Industrial Promotion Policy: Sector Specific
Incentives Package Warehousing & Logistics Industry
► Investment assistance to the tune of 15% maximum of USD 2 Mn (INR 15 crore) on Gross Fixed Capital
Investment (except land and residential buildings)

► Infrastructure development assistance to the tune of 50% maximum of USD 130K (INR 1 crore) to
construct access infrastructure to the site for private/undeveloped government land

► 100% reimbursement of stamp duty and registration fee on Mortgage executed in obtaining loan logistic
& warehousing hub/park and on purchase of land

► Electricity duty exemption for 5 to 10 years for new High Tension (HT) connection by a DISCOM

► Relaxed Floor Area Ratio (FAR) of 1: 0.60 and maximum ground coverage of 60%
MP is home to over 300 large industries
Visit. Explore. Invest. Lets Grow together.
For any query, please write
to us:
Principal Secretary, Dept of Industrial Policy and
Investment Promotion
Thank you Email: [email protected]

Managing Director, MPIDC


Email: [email protected]

Website: www.invest.mp.gov.in

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