Madhya Pradesh’s ambitious IT parks, envisioned under CM Shivraj Singh Chouhan to drive a digital economy, have largely failed to attract technology firms, according to a recent Comptroller and Auditor General of India (CAG) report. Instead, nursing colleges, drug warehouses, supply services, and general engineering activities occupy plots meant exclusively for IT companies.
The audit highlights severe lapses in monitoring and oversight across major IT parks in Bhopal, Indore, Jabalpur, and Gwalior. In Jabalpur, a nursing college operates on land designated for a call centre, while another allottee, intended to manufacture LED products, was only storing bulb parts. None of these activities fall under the IT sector, yet they were cleared without objections.
Under the MPSIDC (Social Sector Use) scheme, 72 plots were allocated, but only 32 applicants participated in the lottery and just 11 proved profitable. The Madhya Pradesh State Electronics Development Corporation (MPSEDC) allocated plots in just 21 hours, bypassing sector-specific planning and ignoring guidelines of the scheme.
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Financial mismanagement compounds the problem. A Jabalpur solar firm received a Rs 60.73 lakh subsidy despite listing machinery unrelated to solar production, and its land allotment, initially cancelled for inactivity, was later restored. Overall, firms employed only 96 people instead of the targeted 6,536, while statewide IT employment reached just 576 against a projection of 15,000 jobs.
The audit also flagged encroachments and revenue losses, including 13.57 acres of IT park land in Bhopal and Indore resulting in a Rs 2.28 crore revenue loss and Rs 3.62 crore development loss. Development fees remained outdated between 2013 and 2023, highlighting massive financial mismanagement, while pending dues and interest were ignored by state corporations.
The CAG report underscores a systemic failure in MP’s IT park initiative under CM Chouhan, with misaligned land use, lack of accountability, and negligible employment generation. The findings raise urgent questions about governance and the state’s ability to execute large-scale tech projects.
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