Madhya Pradesh Wins Central Support for Power and Renewable Equipment Manufacturing Zone

Madhya Pradesh Wins Central Support for Power and Renewable Equipment Manufacturing Zone

The Madhya Pradesh Industrial Development Corporation (MPIDC) has been selected by the Project Management Agency (PMA) for setting up a manufacturing zone on pilot basis for power and renewable energy equipment. The Expressions of Interest for the same had been called for in May this year, following which, a total of eight states applied for the same.

MPIDC obtained the highest marks among the eight states, namely Andhra Pradesh, Bihar, Gujarat, Madhya Pradesh, Maharashtrra, Odisha, Tamil Nadu and Telangana.

The recommendations of PMA based on the evaluation criteria were submitted to the Scheme Steering Commitee  which formally accepted the same on October 22nd.

MPIDC will now need to set up a special purpose vehicle (SPV) as detailed in the document within a month of receiving its in-principle approval. The SPV will be required to have its own Chief Executive Officer.

For Madhya Pradesh state, the win comes at a crucial time when it has made rapid progress in terms of adding renewable capacity within the state as well as a strong pipeline for future growth too. A manufacturing ecosystem will be a welcome addition in terms of jobs and related infrastructure, an area where Gujarat in recent months has been getting all the attention from industry.

The scheme is a joint effort of  Ministry of New and Renewable Energy (MNRE) as well as the Ministry of Power envisaging plans to build a green field manufacturing zone as well as two brownfield manufacturing zones with a total central support of Rs 1000 crores.

It requires winning states to enable the establishment of both CIF (common Infrastructural facilities) and CTF (Common testing facilities) in the zone.

The grant in aid is set to be disbursed based on the schedule laid down in the offer document.

Power and renewable manufacturing zone plan

Central Fund Disbursement Schedule

Other conditions included the provision of a clear 150 acres of land for the CIF facilities, with land for CTF facilities being counted separately. A single window system of clearance from the relevant state government for all manufacturing facilities in the zone is also a key provision.

Complete details of the EOI and the evaluation criteria etc can be viewed here.

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