Madurai, April 11 (PTI): Madhya Pradesh is confident of attracting investments worth Rs two lakh crore from Karnataka and Tamil Nadu and providing jobs to three lakh people before the end of 2008, according to industries and commerce minister of that state, Babulal Gaur.

Gaur, on a tour of Karnataka and Tamil Nadu to attract investment, told reporters here on Monday that the state, besides having the advantage of good power availabilty, also has coalmines, plenty of water, good road access, cotton availability and raw material for Food Processing Units.

The government had ensured 24 hour power supply and better infrastructure for industries in the last two years. "The cost of land is just Rs 100 per square metre, compared to Rs 7500 in Gurgaon and Rs 2,300 in Faridabad," he said.

Madhya Pradesh has also the manpower cost advantage,which, he claimed was 30 to 35 per cent cheaper than elsewhere.

He said the government would extend all help, including Sales Tax exemption for industries above Rs 25 crore and provide them developed industrial infrastructure facilities.

He said special infrastructure has been provided for gems and jewellery parks, food parks, life sciences projects and apparel units.

A promotional assistance equivalent to 50 to 75 per cent of VAT and Central Sales tax deposited in the first year would be given in the second year.This would be given for 3 to 10 years depending on the investment and category of district.

He claimed that the Hindujas and Gokuldas groups planned to set up industries worth Rs 1.55 lakh crore. These included an automobile testing track, marble based industries, readymade garment units and a coal based methanol unit.