Madhya Pradesh Industrial Policy

Madhya Pradesh has been at forefront in promoting industrial growth by offering gamut of incentives to promote rapid industrialization, and is able to harness its strengths to expand its economy with the support of conducive policies. State has identified thrust sectors including Auto and auto components, Textiles, Tourism, IT/ITEs, Healthcare, Skill development, Pharmaceutical, Renewable energy, Biotechnology and Logistic & warehousing which provide the required impetus to the economic growth.

Incentives under the MP Industrial Promotion Policy

Incentives for Manufacturing Industries (Other than Textile & Food Processing Units)

Sl. No.	Description	% of Subsidy	Max Cap
1	Capital Subsidy (Investment made in plant & machinery, quality certification & testing laboratories)
	- Micro & Small Industries	15%	Rs. 15 Lakhs
2	Interest Subsidy (on Term Loans)
	- Micro Industries	5%	Annual ceiling of INR 3 lakh for 7 years
	- Small Industries	5%	Annual ceiling of INR 4 lakh for 7 years
	- Medium Industries	5%	Annual ceiling of INR 5 lakh for 7 years
3	Electricity duty exemption
	- All Industries	-	For 132 KV connection : Upto a period of 7 years For 220 KV connection : Upto a period of 10 years For 33 KV connection : Upto a period of 5 years

Eligibility conditions

Applicants who have already availed incentives under the “Mukhyamantri Swarojgar Yojana” or “Mukhyamantri Yuva Udyami Yojana” are not eligible
Manufacturing can avail financial assistance from other schemes of Govt. of India over and above its eligibility under this Policy, it may do so subject to the condition that it may not be subsidized to more than what it has invested.
The gross investment assistance given to the unit will not exceed the capital investment made in the unit i.e. total assistance being provided to the unit including incentives provided by other departments should not exceed the total amount of investment made by the unit in fixed capital investment.
It is mandatory for industrial units to provide 70% of the total employment to bonafide residents of Madhya Pradesh.

Incentives for Textile Industries

Sl. No.	Description	% of Subsidy	Max Cap
1	Capital Subsidy (Investment made in plant & machinery, quality certification & testing laboratories)
	- Micro, Small and Medium Industries	10%	Rs. 1 Crore
2	Interest Subsidy (on Term Loans)
	- Micro, Small, Medium & Large Industries	2%	Rs. 5 Cores (For 5 years)
	- Mega and above	5%	For 5 years
	- Composite Units (>25 crore fixed assets)	7%	For 5 years
	- Large Scale Garment Manufacturing units (>10 Cr investment)	5%	For 7 Years
3	Establishment of Apparel Training Institute	25%	Rs. 50 Lakhs
4	Registering Patents/Intellectual Property Right, filed in Madhya Pradesh	100%	Rs. 5 Lakhs
5	Training Assistance
	- Large Scale Garment Manufacturing units	-	Rs. 13000 per new employee (for 5 years)
6	Employment Generation Subsidy
	Large Scale Garment Manufacturing units All new employees hired for 8 years from Commercial production Assistance will be provided for upto 5 years per employee Limit upto 10 years from DCP Only for MP residents	-	Rs. 5000 per employee per month
7	Stamp duty reimbursement - Large Scale Garment Manufacturing units	100%
8	Concession on Power Tariff - Large Scale Garment Manufacturing units	-	Fixed charge of Rs. 5 per unit (5 years)
9	Exemption on electricity duty (Large Scale Garment Manufacturing units)	100%	For 7 years

Eligibility conditions

Capital Subsidy Applicable only for TUF approved machinery
Manufacturing can avail financial assistance from other schemes of Govt. of India over and above its eligibility under this Policy, it may do so subject to the condition that it may not be subsidized to more than what it has invested.
The gross investment assistance given to the unit will not exceed the capital investment made in the unit i.e. total assistance being provided to the unit including incentives provided by other departments should not exceed the total amount of investment made by the unit in fixed capital investment.
It is mandatory for industrial units to provide 70% of the total employment to bonafide residents of Madhya Pradesh.

Incentives for Food Processing Industries

Sl. No.	Description	% of Subsidy	Max Cap
1	Capital Subsidy – Food Processing (Investment made in plant & machinery, quality certification & testing laboratories)
	- Micro, Small and Medium and Large Industries	25%	Rs. 2.5 Crore
2	Capital Subsidy – Waste Disposal
	Investment made in Captive power generation/ production of organic manure from waste or residue material	25%	Rs. 1.5 Crore
3	Capital Subsidy – Cold Chain
	Non Horticulture Produce (Like Milk)	50%	Rs. 10 Crore
4	Capital Subsidy – Primary processing and collection centers
	Weighing, cleaning, sorting, grading, packing, Pre-cooling, dry warehouse, etc should be available	50%	Rs. 1 Crore
5	Capital Subsidy – Mega Food Park (Top up Subsidy)
	- 10 Food Processing units	15%	Rs. 5 Crore
6	Capital Subsidy – Food Park
	- 30 Acre with 10 Food Processing units	50%	Rs. 5 Crore
7	Power Subsidy
	- All Industries		Rs. 1 per unit (upto 5 years)
8	Quality Certification
	- Hazard Analysis and Critical Control Point (HACCP) - Good Manufacturing Practices (GMP), ISO 9000, Agmark, Good Laboratory Practices (GLP), Total Quality Management (TQM) etc,	50%	Rs. 5 Lakhs
9	Research & Development
	- per patent	-	Rs. 5 Lakhs
	- Transfer of technology from Government Research Institution	50%	Rs. 5 Lakhs
10	Transportation
	- Export Transport Expenses (Perishable products)	30%	Rs. 10 Lakh / yr (5 years)

Incentives for logistic & warehousing hubs/parks

Sl. No.	Description	% of Subsidy	Max Cap
1	Investment Assistance (P&M – excluding land)	15%	Rs. 15 Crore
2	Stamp Duty reimbursement	100%
3	Electricity Duty		1. For 132 KV connection : Upto a period of 7 years 4. For 220 KV connection : Upto a period of 10 years 5. For 33 KV connection : Upto a period of 5 years
4	Infrastructure Development assistance (Road / Rail)	50%	Rs. 1 Crore

Eligibility conditions

Applicable for infrastructure such as internal road, electricity and water supply, communication services, sewage and drainage facility etc
Primary agricultural products shall not be included
Plant and machinery shall include all handling equipment, measurement equipment, safety equipment, generator set, pollution control devices, R&D equipment, transformers, necessary maintenance equipment etc.
Layout plan should be approved from the Town & Country Planning office.
Minimum land area requirement for the development of logistic and warehousing parks will be as follows: -
1. Within Planning area –
  1. Minimum 1 hectare in industrial area
  2. Minimum 2 hectare in Agriculture area (within the planning area)
2. Outside the planning area - minimum 2 hectares
Logistic Hub/park unit should be operational for a minimum of 7 years

Land Concessions for Industrial Infrastructure Development
1. Rate of Assistance – 50%
2. Cap of Assistance – Rs. 1 Crore
3. Eligible Activities: Development of Infrastructure in private land or undeveloped government land
  1. Power
  2. Water
  3. Road
4. Eligible for Medium, Large and Mega Industries

Incentives for Infrastructure Development by Private Industries
1. Rate of Assistance – 15%
2. Cap of Assistance – Rs. 5 Crore
3. Eligible Activities: Development of Infrastructure
  1. Industrial parks
  2. Food parks
  3. High-tech parks
  4. Other parks relating to manufacturing industries
4. Eligibility conditions
  1. Minimum area of 10 acres
  2. Minimum of 5 industrial units
  3. Should meet all other conditions indicated at the time of Sanction
5. Disbursement of subsidy will be done within 1 year of Completion of Project

Incentives for Green Industrialization
1. Rate of Assistance – 50%
2. Cap of Assistance – Rs. 1 Crore
3. Eligible Activities: Development of waste management infrastructure
  1. Effluent Treatment plants
  2. Sewage Treatment plants
  3. pollution control devices
  4. Water conservation/harvesting
  5. Others
4. Eligibility conditions
  1. Only for Large and Mega Industries

List of Ineligible Activities / Enterprises

Beer and liquor (excluding winery)
Slaughter house and industries based on meat
Manufacturing of all kinds of pan masala and gutkha
Manufacturing of Tobacco and tobacco based products
Manufacturing of plastic bags of thickness 40 micron or lesser
Incentive for industrial units set up by central or state government or their undertaking can be provided by CCIP after considering proposals on case to case basis as per policy
Stone crusher
Grinding of minerals
Defaulter of state government/state government undertaking
All types of mining activity (where there is no value addition)
Activities pertaining to trading and services
Manufacturing of Charcoal
Refining of edible oils (Independent unit) and Soya bean oil producing units (Including refinery)
Publishing and Printing processes of all types (Other than rotogravure/flex printing)
Manufacturing of ornaments and other articles of bullion of gold & silver
Saw milling & planning of wood
Pressing of iron/steel scrap into blocks or any other shapes
Any industry declared by state government from time to time

Definitions

Micro scale industrial unit : A manufacturing enterprise having an investment less than INR 25 lakh in plant & machinery
Small scale industrial unit : A manufacturing enterprise having an investment between INR 25 lakh and INR 5 crore in plant &machinery
Medium scale industrial unit : A manufacturing enterprise having an investment between INR 5 crore and INR 10 crore in plant & machinery
Large scale industrial unit : A manufacturing enterprise having an investment more than INR 10 crore in plant & machinery
Mega scale industrial unit : A unit having an investment more than:
1. INR 100 crore in plant &machinery
2. INR 25 crore in plant &machinery in sectors including Food Processing, Bio-technology, Herbal &Minor forest produce, Tourism & IT

Madhya Pradesh Industrial Policy

Central Schemes

State Schemes

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Madhya Pradesh Industrial Policy

Incentives under the MP Industrial Promotion Policy