Address at the Centenary Celebrations of Madhya Pradesh Chamber of Commerce and Industry, Gwalior, Madhya Pradesh

Can MPCCI become a partner in the development of Madhya Pradesh

?Knowledge, Work and sweat will realize the 
birth of vibrant developed states 
leading to developed India.?

I am indeed delighted to address and interact with the members of Madhya Pradesh Chamber of Commerce and Industry (MPCCI) during their Centenary Celebrations. I am very happy to know that this Chamber established by His Highness Maharaja Madhav Rao Scindia with four members has grown into a vibrant institution having over 2000 members today. I extend my greetings to the organizers, all the members of MPCCI, industry captains and the distinguished invitees.

I have visited all States of the country and nearly all Union Territories and met people from all walks of life. Particularly I have met over one million students upto the age of 17. When I interacted with them, I have shared their dreams and pains. I visited Madhya Pradesh number of times and it has always been a source of happiness for me to meet Madhya Pradesh youth and Madhya Pradesh farmers. Madhya Pradesh indeed, has potential of knowledge, skills and capital of hardwork. Time has come for Madhya Pradesh to get transformed into a developed state before 2015. We need all the best minds to be the partners in this great journey.

I have addressed the Joint Session of the Madhya Pradesh Legislature and suggested eleven missions to be undertaken for transforming Madhya Pradesh into a developed State by 2015. My lecture is in my website, you may like to refer. I would like to briefly mention and highlights since you are the partners in the development of Madhya Pradesh. The missions and the outcome of the missions are given below.

My presentation to the Assembly was based on the following principles:-

- Method of increasing the per-capita income of the State to Rs. 50,000 from Rs. 14,000 by 2010.

- Improving the Human Development ranking of Madhya Pradesh from the present 12 to less than 5.

- Realizing the goal of total literacy before 2012 by the giving highest priority to women's education, particularly the tribal population.

- Empower all tribal citizens with quality education, healthcare and employment potential.

- Progressively reducing the number of people living below the poverty line from the existing 40 percent to near zero by 2016.

Missions that have to be carried out to achieve the development index are summarized below:

1. Horticulture Mission: Will result into annual revenue of Rs. 40,000 crore by 2016 and that will generate employment for over six million youth.

2. Agricultural Mission: Increase output of cereals and pulses from 15.5 million tonnes to 25 million tonnes in four years. Increase soyabean revenue from Rs.4500 crores to Rs.9000 crores resulting in doubling of income for 5 million families. Increase percapita availability of milk from 233 grams to 500 grams in five years.

3. Education and Entrepreneurship: It is essential to realize near 100 percent literacy by 2012 and provide full employment to all 1.5 million youth passing out from schools and colleges every year. Creation of Centres of Excellence in engineering, science, arts and medicine.

4. Global Human Resource Cadre: (a) All youth will either have quality higher education or world class special skills. This will result higher employment potential in all the three sectors. Apart from that Madhya Pradesh can aim at five lakh direct employment and five lakh indirect employments in the IT sector by 2010 by establishing and augmenting the IT industry.

5. Healthcare Mission: Eradicate Malaria, TB and Leprosy in all districts by 2012. Reduce the Infant Mortality Rate to 50 per 1000 and the Maternal Mortality Rate to less than 5 per 1000. Reach quality healthcare to all citizens including to tribal areas through mobile clinics and enhance life expectancy.

6. Water Management: Harness additional 50,000 cubic meters of water for irrigation by linking of rivers within the state. Create additional storage capacity through water harvesting leading to a drought free Madhya Pradesh by 2012.

7. Infrastructure Development: Increase road density to 30 kms per 100 sq. km., plan for 400 plain PURAs, create the ?one village one product? model to generate revenue of Rs.10 crores per village. PURA (Providing Urban Amenities in Rural Areas) envisages provision of four connectivities: physical connectivity, electronic connectivity, knowledge connectivity leading to economic connectivity. MPCCI can facilitate the creation of rural food processing enterprises in 400 PURAs envisaged for the development rural Madhya Pradesh.

8. e-Governance for Madhya Pradesh: Creating a e-governance system will lead to faster G2C, G2G connectivity to provide a transparent and smart governance to people.

9. Tourism Destination of the World: Increase international tourism from 1 lakh to 10 lakhs and domestic tourism from 7 million to 30 million creating nearly 3 million jobs in the next five years. By creating and augmenting tourist circuits for heritage tourism and spiritual tourism.

10. Exclusive Economic Zone: Creation of six Exclusive Economic Zones to enable balanced economic growth of the State in six areas. Each economic zone can lead to a turnover of Rs. 10,000 crores per annum.

11. Tribal Development: Providing quality education, quality healthcare and productive employment opportunities to over 14 million tribal citizens of the State.

MPCCI can contribute to the economic progress of Madhya Pradesh in all the three sectors of the economy namely agriculture, manufacturing and services by becoming partners of the Government in these missions.

Missions for MPCCI

Now, I would like to talk about some of the missions and the role MPCCI can play in the economic development of the State. Recently, I received a letter from the Director of National Law Institute University, Bhopal who had organized a panel discussion on the eleven missions of Madhya Pradesh. Based on the recommendations of the panel discussions, the State Government has constituted a high level committee to oversee the implementation of the eleven missions in the State. I am sure; members of MPCCI can definitely participate with the State Government in the fast implementation of proposed schemes. This will be a mission of industrial, business and trade for the MPCCI. Now, I would like to talk about the specific contribution which MPCCI can make in implementation of certain missions.

Horticulture

Integrating Horticulture with Food Processing: There is a need to integrate production activity of horticultural products leading to fruit and vegetable processing which will provide larger value addition to the product and also prevent distress sale by the farmers when faced with large quantity of fruits and vegetables produce. These food processing units can be created as a co-operative venture of farmers in different districts so that the benefits of value addition will largely reach the farmers in addition to providing additional employment opportunities.

The average value of produce depending upon the type of product chosen such as papaya, mango, banana, aonla, coriander, orange, and garlic and chilly will be around Rs. 80,000 per hectare. The same product once processed will have a value over Rs. 4 lakh. This task is expected to yield an annual revenue of over Rs. 4000 Cr. for the State. MPCCI can definitely be a major partner in this mission.

Venture Capital Enterprises: Madhya Pradesh has large number of youth with creative ideas. Any venture capital bank may be willing to participate in the development of the state by developing small enterprises that can generate large scale employment potential. MPCCI can work with venture capital banks for working out an investment strategy for creating innovative enterprises in Madhya Pradesh and also popularizing the venture capital approach in the State's development planning. Institution of this system will change the situation in Madhya Pradesh by generating employment providers rather than employment seekers. I would suggest MPCCI to make use of this opportunity and promote prospective venture capital entrepreneurs in different parts of the state.

IT Industries: There is a potential for increased electric power availability in Madhya Pradesh. The combination of power availability, the peaceful and healthy environment in many parts of the state are highly suitable for the growth of IT industry. The State Government has earmarked large tracts of land near airports for establishing software technology parks in Indore, Gwalior and Bhopal. MPCCI can have Investors Meet in Bhopal and present the advantages which an IT company can get in Madhya Pradesh. This approach should enable MPCCI to create at least five lakhs direct jobs and another five lakh indirect jobs by building capacities and skills among educated youth through specially organized programmes in collaboration with NASSCOM, CII, IT companies and other social organizations in a mission mode. A well thought out collaborative scheme is required for capacity building with national and international partnerships. MPCCI should also lead to creation of a state-of-the-art training institution for IT professionals in the State.

Indo-Japanese Collaborative Experience: I would like to mention the handicraft promotion work taking place at Chhindwara and Seoni in Madhya Pradesh with governmental and JETRO of Japan, cooperation for the promotion of ?One Village, One Product?. Here the development of interior life style articles is taking place with the suggestions from JETRO to Japan technical experts. After prototypes are made, the product is being sent to Tokyo market for presentation in exhibitions for getting a feedback from the users. The feedback is used to further improve the product for making it acceptable for sale in the international market. A similar model has been followed between Thailand and Japan which has resulted in the development of 26 products being produced in 26 villages with an annual turn-over of Rs. 300 crores.

What is needed is application of technology for quantity, quality and variety production of these products for servicing in the national and international markets with management stewardship. MPCCI can facilitate the availability of professional expertise for rural development by bringing together the Institute of Fashion Design, NID, Ahmedabad, and the Khadi Emporium of the state. This team can select one product for each PURA complex and prepare the product for sale in international market.

Tourism through Public-private partnership: Madhya Pradesh has large number of heritage sites and spiritual institutions which can attract large number of national and international tourists. However, to realize this, there is need to create international quality infrastructure such as good hotels, multi lane roads, amusement parks, healthcare systems, trained tourist operators who have knowledge of multiple languages and bringing in air connectivity. What is needed is a mission mode operation involving public-private partnership providing total services to the tourist in an integrated way. Some of the entrepreneurs belonging to MPCCI can consider taking up one or two tourist circuits in Madhya Pradesh in consultation with the tourism ministry in centre and state government and provide different marketable tourist products to the tourists on a turn key basis.

Exclusive Economic Zones: For faster development of the state I have suggested creation of six exclusive economic zones in Madhya Pradesh. The suggested sites and products of these economic zones would be:-

Indore - Pharmaceutical, textile, IT and auto components

Pithampur - Apparel Park, jewellary Park and Herbal Park

Bhopal - Life science products

Jabalpur - Apparel Park and Stone Park

Rewa - Herbal Park

Sagar - Granite Park

Note: Locations and type of tasks have to be decided by the expert committee.

I have suggested to the state government to facilitate creation of these Exclusive Economic Zones by providing:

(a) Fast single window clearance for attracting investment. (A multi-ministry organization)

(b) Invite Madhya Pradesh origin industrialists and entrepreneurs who are within the country and abroad for a meeting leading to the decision of taking up the task of building and operating the Exclusive Economic zone in all three sectors of the economy.

C) To provide needed infrastructure for attracting the needed identified zones.

(d) Members of the Madhya Pradesh legislative assembly irrespective of party affiliations will give an assurance for enacting proactive policies for ensuring uninterrupted work culture in these Economic Zones.

(e) Employees have to be partners in these enterprises.

MPCCI can work with the state government and invite prospective entrepreneurs to invest in these Exclusive Economic Zones. The aim of the economic zone should be to qualify the skill sets of the workforce to standards prescribed by the National Manufacturing Competitiveness Council. The institutions must converge, and the zone will have design, development, production and marketing capability. Each economic zone should lead to a turnover of Rs. 10,000 crores per annum.

Economic development and prosperity

Now I would like to talk to you about the growth of the economic development and prosperity.

- Nations Economic development is powered by competitiveness.

- The competitiveness is powered by knowledge power.

- The knowledge power is powered by Technology and innovation.

- The Technology and innovation is powered by resource investment.

- The Resource investment is powered by revenue and return on Investment.

- The Revenue is powered by Volume and repeat sales through customer loyalty.

- The customer loyalty is powered by Quality and value of products.

- Quality and value of products is powered by Employee Productivity and innovation.

- The Employee Productivity is powered by Employee Loyalty, employee satisfaction and working environment.

- The Working Environment is powered by management stewardship.

- Management stewardship is powered by Creative leadership.

Conclusion: Creative Leadership

For success in all projects we need creative leaders. Creative leadership means exercising the vision to change the traditional role from the commander to the coach, manager to mentor, from director to delegator and from one who demands respect to one who facilitates self respect. For a prosperous and developed Madhya Pradesh, the important thrust will be on the growth in the number of creative leaders and innovative organizations who can create wealth through dedicated entrepreneurship.

Let me once again greet all the Members of MPCCI during this Centenary Celebrations. My best wishes to all the members of Madhya Pradesh Chamber of Commerce and captains of industries in their mission of making Madhya Pradesh one of the top States in all sectors of the economy.

May God bless you.