The Shriram Group, Man Aluminium and the Oswal Group among a host of other corporate houses have relocated their manufacturing plans from states such as Punjab, Gujarat and Uttaranchal to Madhya Pradesh.
Gagra Gears, which had plans to set up a manufacturing base in Sharjah, UAE has changed its mind and has bought land in the country's first special economic zone at Indore.
India seems to be coming at par with her neighbouring peer countries as the SEZ in Indore has attracted corporate interest across the country with a number of them relocating their manufacturing hubs to Madhya Pradesh.
Of the 13 greenfield SEZ identified by the Centre, Indore SEZ is the first to have taken off, having received final government clearance on September 1.
SEZ Indore has commenced operations and has sold land to 32 units, of which five have already commenced construction. These include Nicholas Piramal, BK Tyres, and Emerald Tobacco among others.
The SEZ has started accruing revenue for the state government to the tune of Rs 80 crore (Rs 800 million). It is selling the land at Rs 40 lakh (Rs 4 million) per acre.
The state government has developed 250 acres of the identified 1,038.57-hectare plot, for an investment of Rs 70 crore (Rs 700 million), said S R Mohanty, managing director of Madhya Pradesh State Industrial Development Corporation Ltd, the nodal agency for the project. The entire project outlay identified to date stands at Rs 1,100 crore (Rs 11 buillion), he added.
MP government has put out the tenders for the development of the SEZ, and has received interest from over 14 companies including Gammon India, Shapoorji & Pallonji, and the Tatas.
"However, we have decided to extend the last date (initially September 15) by another two months so we can ensure that the partner better understands the project," said Mohanty.
The SEZ at Indore will focus on five key manufacturing sectors including soya, automobiles, IT and hardware, semi-conductors and textiles.
MP already houses five motor giants including Hindustan Motors, Kinetic Honda, Bridgestone Tyres and Bajaj Tempo. Three banks -- Punjab National Bank, State Bank of Indore and Bank of India -- have received offshore banking unit status.