MADHYA PRADESH MSME DEVELOPMENT POLICY 2025

The MADHYA PRADESH MSME Development Policy 2025 provides Industrial Development Subsidy to support new and expanding enterprises. The quantum is assistance is as under:

1. Investment up to ₹10 crores in Plant and Machinery (P&M)

40% of the eligible investment made in plant & machinery, building and the eligible items defined in clause 17(vi) of the policy till the date of commercial production, will be provided as industrial development subsidy to the new industrial unit. This assistance shall be disbursed in 4 equal annual installments. The cost of building will be limited to 100% of the cost of Plant and Machinery for the purpose of calculation of assistance. An additional Industrial Development Subsidy of 2% per year (for four years) will be provided for units established by Women, SC, or ST entrepreneurs or 2.5% per year (for four years) for the unit setup by SC/ST category women entrepreneur(s); and Additional Industry Development Subsidy of 2% per year (for four years) for the industrial unit for exporting more than 25% and up to 50% of their total sales.

 2. Investment more than ₹10 crores to maximum limit of medium enterprises in P&M

Up to 40% of the eligible investment made in plant & machinery, building and the eligible item defined in clause 17(vi) of the policy, will be provided as investment promotion assistance to the new industrial unit. (As per Annexure-II) The total eligible investment made by the unit upto date of commercial production and for a period of one year thereafter will be taken into account for assistance. This assistance shall be disbursed in 7 equal annual installments. If the commercial production commences upto 30th September of relevant year, it shall be considered as the base/first year for commercial operation date. However, if the commercial production commences after 30th September of relevant year, the unit shall be provided an option to choose current year or the next year as their base/first year for commercial operation date.

Eligible Entities: Under this scheme incentives can avail by an entity/organisation such as Proprietary, Partnership, Pvt. Ltd. Company, Public Ltd., LLP (Limited Liability Partnership) and Co-operative society etc.

Fixed Capital Investment:

“Fixed Capital Investment” refer to investment in plant & machinery and building.

Commencement and Applicability:

This policy shall come into effect on 24 th February, 2025 and will remain in force until amended or replaced by a new policy as determined by the Government of Madhya Pradesh.