Who can apply for MP Industrial Promotion Policy 2025 incentives?

New and expanding manufacturing units — Micro, Small, Medium, Large, and Mega — in Madhya Pradesh are eligible. Both greenfield projects and eligible expansion or modernisation of existing units can apply.

What capital subsidy is available?

Capital subsidy of 15%–40% of Fixed Capital Investment is available for MSMEs, with the highest rates for units in backward and tribal areas. General-area units receive 15%–25%; backward and tribal area units receive up to 40%.

Which sectors are prioritised?

Priority sectors include textiles, food processing, electronics, electric vehicles, pharmaceuticals, and defence manufacturing. Units in these sectors may qualify for enhanced incentive rates across all components.

Is this scheme equity-free?

Yes. All benefits — capital subsidy, interest subsidy, electricity duty exemption, employment-generation subsidy, and stamp duty exemption — are non-dilutive, non-repayable incentives.

What is the employment-generation subsidy?

Units creating additional direct employment receive a per-employee subsidy for each new worker added. The quantum varies by enterprise category and location. This incentivises labour-intensive manufacturing in the state.

Applications are submitted through the MP Industries portal at mpindustry.gov.in. MSMEs can also apply through their District Trade and Industry Centre (DTIC). Large and mega projects are processed through the MP Industrial Development Corporation (MPIDCO) or the State Investment Promotion Board.

MP Industrial Promotion Policy (2025)

MP Industrial Promotion Policy 2025 provides a location-linked incentive package for manufacturing units. Capital subsidy ranges from 15%–40% of Fixed Capital Investment — general-area units receive 15%–25% while backward and tribal area units receive up to 40%. Interest subsidy of 3%–5% on term loans is standard, rising to 7% for special categories such as SC/ST and women entrepreneurs; priority sectors attract higher rates. Electricity duty exemption of up to 100% is available for 5 to 10 years in backward and tribal areas. An employment-generation subsidy is paid per additional direct employee created. Stamp duty exemption is 100% in tribal and backward areas and 50% elsewhere. All incentives are equity-free and non-repayable.

MP Industrial Promotion Policy (2025) — Incentives

MP Industrial Promotion Policy (2025) — Incentives

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