Madhya Pradesh Industrial Policy

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

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

Eligibility conditions

1. Applicants who have already availed incentives under the “Mukhyamantri Swarojgar Yojana” or “Mukhyamantri Yuva Udyami Yojana” are not eligible
2. 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.
3. 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.
4. It is mandatory for industrial units to provide 70% of the total employment to bonafide residents of Madhya Pradesh.

2. Incentives for Textile Industries

Eligibility conditions

1. Capital Subsidy Applicable only for TUF approved machinery
2. 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.
3. 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.
4. It is mandatory for industrial units to provide 70% of the total employment to bonafide residents of Madhya Pradesh.

3. Incentives for Food Processing Industries

4. Incentives for logistic & warehousing hubs/parks

Eligibility conditions

1. Applicable for infrastructure such as internal road, electricity and water supply, communication services, sewage and drainage facility etc
2. Primary agricultural products shall not be included
3. 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.
4. Layout plan should be approved from the Town & Country Planning office.
5. 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
6. Logistic Hub/park unit should be operational for a minimum of 7 years

5. 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

6. 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

7. 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

1. Beer and liquor (excluding winery)
2. Slaughter house and industries based on meat
3. Manufacturing of all kinds of pan masala and gutkha
4. Manufacturing of Tobacco and tobacco based products
5. Manufacturing of plastic bags of thickness 40 micron or lesser
6. 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
7. Stone crusher
8. Grinding of minerals
9. Defaulter of state government/state government undertaking
10. All types of mining activity (where there is no value addition)
11. Activities pertaining to trading and services
12. Manufacturing of Charcoal
13. Refining of edible oils (Independent unit) and Soya bean oil producing units (Including refinery)
14. Publishing and Printing processes of all types (Other than rotogravure/flex printing)
15. Manufacturing of ornaments and other articles of bullion of gold & silver
16. Saw milling & planning of wood
17. Pressing of iron/steel scrap into blocks or any other shapes
18. Any industry declared by state government from time to time

Definitions

1. Micro scale industrial unit : A manufacturing enterprise having an investment less than INR 25 lakh in plant & machinery
2. Small scale industrial unit : A manufacturing enterprise having an investment between INR 25 lakh and INR 5 crore in plant &machinery
3. Medium scale industrial unit : A manufacturing enterprise having an investment between INR 5 crore and INR 10 crore in plant & machinery
4. Large scale industrial unit : A manufacturing enterprise having an investment more than INR 10 crore in plant & machinery
5. 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