Misuse To Land Grab, Madhya Pradesh 'IT Parks' Have Everything But IT Firms

What was intended to be Madhya Pradesh's gateway to a modern digital economy has instead become a hub for nursing colleges, drug warehouses, supply services, and general engineering activities.

A new report by the Comptroller and Auditor General of India (CAG) has revealed that plots reserved exclusively for Information Technology (IT) companies are being widely misused across major IT parks in Bhopal, Indore, Jabalpur, and Gwalior. This exposed a severe breakdown in monitoring and oversight within state corporations.

According to the audit, the misuse is rampant. In Jabalpur IT Park, a nursing college operates where a call centre was planned. Another allottee, expected to manufacture LED products, was only stocking bulb parts. A drug warehouse functions out of a plot meant for software services. General engineering activities have found their way into what was envisioned as the state's high-tech corridor. None of these activities fall under "Information Technology," yet the audit noted they were cleared without objections.

Under the MPSIDC (Social Sector Use) scheme, 72 plots were put up for distribution, but only 32 applicants participated in the lottery, and only 11 turned out to be profitable. The CAG states the entire process lacked proper planning, oversight, and a sector-specific vision.

In a display of haste, the Madhya Pradesh State Electronics Development Corporation (MPSEDC) allotted IT park plots in just 21 hours. Instead of tech companies, the allocations went to nursing colleges and unrelated industries, violating every rule of the scheme.

The CAG also flagged irregularities in solar manufacturing projects. A Jabalpur firm, allotted land to manufacture PV solar panels, submitted a machinery list that included soldering irons, drills, cutters, and weighing machines, equipment completely unrelated to solar module manufacturing.

Despite this clear lapse, the firm received a Rs 60.73 lakh subsidy. Furthermore, its land allotment, which had been cancelled for failing to begin work, was later restored.

Employment Disaster: Only 96 Jobs Instead Of 6,536

The employment numbers reveal the true failure of the scheme. By 2023, the allotted firms were expected to generate 6,536 jobs. However, inspections showed that only 96 people were employed, barely 1.5% of the target. Across all four IT parks, the state's overall IT employment reached only 576, against an original projection of 15,000 jobs.

Adding to the loss, five firms that received land worth Rs 9.81 crore never began operations.

The audit revealed that 13.57 acres of IT park land in Bhopal and Indore had been encroached upon, resulting in a Rs 2.28 crore revenue loss and a Rs 3.62 crore development loss. The corporation failed to respond when the CAG sought details on anti-encroachment steps.

Between 2013 and 2023, the MPSEDC did not revise development fees. The old fee collected was Rs 42.86 crore, while the actual development cost was Rs 228.10 crore, highlighting massive financial mismanagement.

The Madhya Pradesh Small Industries Corporation paid Rs 2.79 crore without royalty certificates or due diligence, violating procurement rules.

The New and Renewable Energy Development Corporation failed to recover Rs 25.12 crore in land use charges and did not levy Rs 8.6 crore in delayed interest. The department also ignored Rs 2.65 crore in pending interest dues, issuing no follow-up letters or demands.

Finally, line maintenance contracts were awarded to a contractor who falsely declared he had no pending litigation. The CAG found three court cases pending against him. Despite this, he was awarded work worth crores in 2017.