Investment promotion assistance for large and mega manufacturing units, with extra multiples for jobs, exports and priority blocks
Madhya Pradesh Industrial Promotion Policy 2025 and Investment Promotion Scheme 2025
The Department of Industrial Policy and Investment Promotion notified the Industrial Promotion Policy 2025 on 24 February 2025, and it runs for five years or until a new policy comes in. We read the policy and the Madhya Pradesh Investment Promotion Scheme 2025 that sets out how the incentives are paid, both on the Invest MP site. The scheme's own gazette date is on a scanned cover we could not read. We found no later amendment.
Large manufacturing units, meaning any unit above the MSME limits, in Madhya Pradesh that start commercial production on or after 24 February 2025. MSMEs come under the MSME policy
- Basic Investment Promotion Assistance worked out by a formula on eligible fixed capital investment, from 40 per cent for small projects down to 10 per cent for the largest, with a ceiling of ₹200 crore, paid in 7 equal yearly instalments
- Multiples on top for exports (1.0 to 1.3), jobs (1.0 to 1.5), units in priority blocks (1.3), foreign investment (1.1 to 1.2), food processing (1.5), and API, medical device, electric vehicle and high value-add units (1.3 each)
- Technology upgrade: 10 per cent of the investment, up to ₹20 crore, for units that have run seven years without a change of product
- Waste management systems: 50 per cent, up to ₹5 crore (₹10 crore with zero liquid discharge). Infrastructure to the plant gate: 50 per cent, up to ₹5 crore
- Reimbursement of intellectual property costs (up to ₹10 lakh) and organic certification (up to ₹5 lakh). Stamp duty reimbursement for garment, footwear and toy units
- Mega units can ask the Cabinet Committee on Investment Promotion for a customised package
- A manufacturing unit starting commercial production on or after 24 February 2025. A mega unit has more than ₹500 crore in plant and machinery, or ₹250 crore in priority blocks and some sectors, or ₹75 crore in others such as food processing and garments
- Record your intention to invest on the Invest MP portal first
- Apply within 180 days of starting production. A late application may be condoned, cut pro rata or rejected by the State Level Empowered Committee
- After the Committee decides eligibility, claim each year within 180 days of the end of the financial year
- A unit on the scheme's excluded list does not qualify
Online on the Invest MP portal. A State Level Empowered Committee decides eligibility, the Managing Director of MP Industrial Development Corporation sanctions and pays the claims, and the Cabinet Committee on Investment Promotion sanctions customised packages for mega units.