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Madhya Pradesh To Establish Power & Renewable Energy Equipment Manufacturing Zone

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The Project Management Agency (PMA) has chosen the Madhya Pradesh Industrial Development Corporation (MPIDC) to establish manufacturing zones for power and renewable energy equipment on a trial basis. 


Eight states submitted applications for the same after the call for Expressions of Interest, issued in May of this year. Among the eight states—Bihar, Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu, Madhya Pradesh, Odisha, and Telangana—MPIDC received the highest scores.

The proposal, a collaboration between the Ministries of New and Renewable Energy (MNRE) and the Ministry of Power (MoP), calls for the construction of two brownfield industrial zones and a greenfield manufacturing zone, with a total government funding commitment of Rs. 10 billion.

The Scheme Steering Committee received the PMA recommendations based on the assessment criteria and formally approved them on October 22.

After gaining its in-principle approval, MPIDC will now have one month to establish a special purpose vehicle (SPV) in accordance with the specifications in the document. It will be necessary for the SPV to have a separate Chief Executive Officer (CEO).

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The project will last until the fiscal year 2025–2026. With a cap of Rs. 4 billion for one industrial zone, the projected budget for the three manufacturing zones has been kept flexible to enable a shared infrastructure and testing facility.

The funding will be made available in four stages, with 30% of it being made available once the steering committee has given the project its final approval. When the bidder has used 60% of the initial installment, the remaining 30% will be issued. 

After the bidder has utilized 100% of the first payment and 60% of the second installment, a further 30% will be available. Once the competition certificate has been submitted, the remaining 10% will be released.

Further, it is necessary for winning states to allow for the creation of both CIF (common infrastructure facilities) and CTF (common testing facilities) in the zone.

The availability of 150 acres of clean land for the CIF facilities, with space for CTF facilities being included separately, was one of the other requirements. Another essential requirement is a single window system for state government permission for all manufacturing units in the zone.

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The victory for the state of Madhya Pradesh comes at a critical juncture since the state has made quick strides toward increasing its renewable capacity and has a promising future ahead of it. In terms of jobs and associated infrastructure, a manufacturing environment will be a welcome addition.

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