Economy
MP greenlights industries to build dormitories and residential complexes on manufacturing unit land: Mohan Yadav
Summary
- Yadav added that the decision is part of broader reforms to remove bottlenecks and foster an industry-friendly ecosystem in the state. The move is aimed at reducing bureaucratic hurdles and improving ease of doing business, while also addressing logistical challenges for workers.
New Delhi: The Madhya Pradesh government has allowed industries to build dormitories and residential complexes for their workers on the same land allocated for manufacturing units, chief minister (CM) Mohan Yadav said in an interview. These residential facilities can be set up alongside the factories without requiring separate permissions or additional paperwork.
Yadav added that the decision is part of broader reforms to remove bottlenecks and foster an industry-friendly ecosystem in the state. The move is aimed at reducing bureaucratic hurdles and improving ease of doing business, while also addressing logistical challenges for workers.
Also read | Madhya Pradesh promises incentives, infrastructure to investors at GIS 2025
By allowing employees to live near their workplaces, the policy is expected to enhance productivity, cut commuting hassles, and make Madhya Pradesh a more attractive destination for investors.
This comes ahead of the state hosting a global investor summit later this month, which is expected to surpass the ₹15 trillion investment commitments secured in the last summit held in 2023 when Shivraj Singh Chouhan was the CM.
"The upcoming business summit is set to surpass all previous records of investments received by the state in earlier investment summits," the CM asserted.
Drawing investments
During the Global Investors Summit held in Indore in January 2023, Madhya Pradesh received investment proposals totaling over ₹15.42 lakh crore, with the potential to create about 2.9 million jobs.
This year, the summit is scheduled to be held on 24-25 February in Bhopal.
“The state government has also reduced the compliance burden from 28 to 10 to facilitate investments in the state. Land use changes, land allotment, environmental clearances, and energy sector approvals, among others, have been simplified for smoother business operations while protecting the rights of farmers," he said.
By cutting down unnecessary compliances, Madhya Pradesh aims to create a more investor-friendly ecosystem, making it easier for businesses to set up and expand their operations.
Also read | Madhya Pradesh emerges as India’s lightning hub: Report
"We are offering affordable land prices, a consistent electricity supply, and strong connectivity through roads, railways, and airways. We are also providing special incentives, including a 200% subsidy in the textile sector," Yadav said.
The state is actively working on attracting investments in renewable energy, particularly in solar, wind, and pumped hydro storage.
“Madhya Pradesh is well-suited for pumped hydro storage projects, as the geography provides the necessary combination of mountains at higher elevations and water bodies at lower levels," Yadav added.
Policies approved
The state government has recently approved policies for investment promotion, logistics, exports, MSME development, land allotment, startups, pumped hydro storage, biofuel promotion, and city gas distribution. Additionally, policies are being introduced for global capability centres, AVGC-XR (animation, visual effects, gaming, comics, and extended reality), semiconductors, and drones, while the MP aviation policy is also in the offing.
Madhya Pradesh offers a strong logistics network, with a 5,500km-long state highway system, extensive railway connectivity, and six operational airports. The state also has a land bank of one lakh hectares available for industrial use and sufficient water resources to meet industry needs.
Also read | Madhya Pradesh's new logistics policy will improve supply efficiency, attract investors: Yadav
During his six-day tour to the United Kingdom and Germany last year, Yadav secured investment proposals totaling ₹77,440 crore. The UK accounted for ₹59,350 crore, and Germany ₹18,090 crore. These investments proposals, if they materialise, are poised to bolster the state's economic landscape.
Leading firms have announced investments in Madhya Pradesh. Torrent Power plans to establish a thermal power plant with an investment of ₹18,000 crore, expected to generate employment for over 7,000 individuals. Avaada Group has committed ₹50,000 crore to renewable energy projects, while JK Cement has announced an investment of ₹3,000 crore in Panna.
Developed nations such as the UK, Germany, and Japan will be the partner countries at Global Investors Summit 2025, reflecting Madhya Pradesh’s growing global appeal as an investment hub.
