MP NEWS : Cabinet Approves Key Policies to Drive Madhya Pradesh’s Development
The Cabinet meeting, chaired by Chief Minister Dr. Mohan Yadav at the state secretariat on Tuesday, approved the Industrial Promotion Policy 2025 to accelerate Madhya Pradesh’s growth and prosperity. This comprehensive policy covers 10 sector-specific strategies, including Agriculture, Dairy, and Food Processing; Textiles; Apparel, Footwear, Toys & Accessories; Aerospace and Defense; Pharmaceuticals; Biotechnology; Medical Devices; Electric Vehicles (EV); Renewable Energy Equipment; and High-Value Manufacturing.
Objectives of the Industrial Promotion Policy 2025 is to boost industrial development in Madhya Pradesh, increasing the state’s current GDP from Rs 2.9 lakh crore to approximately Rs 6 lakh crore by 2030, and develop world-class industrial infrastructure to offer a comprehensive ecosystem for investors. The Policy is aimed to promote environmentally sustainable industrial growth and balanced regional development, Create around 2 million new employment opportunities over the next five years, focusing on labor-intensive sectors, Enhance investor facilitation and simplify business processes in the state, and align state schemes with industrial needs and prepare a future-ready workforce. These policies and incentives are aimed at attracting investments, promoting industrial growth, and creating employment opportunities in Madhya Pradesh.
The policy also includes provisions for investment incentive support, general assistance, and additional aid for large and mega-scale industrial units.
Agriculture, Dairy, and Food Processing Policy includes Electricity tariff reimbursement of one rupee per unit for 5 years, As quality certification incentives 50% of the cost or Rs 5 lakh (whichever is lower) for 5 years. Apart from, food processing units investing over Rs 75 crore will be eligible for customized packages under CCIP.
Under Textile Policy 5% interest subsidy on term loans for plant and machinery, up to Rs 50 crore for 5 years, 25% financial assistance (up to Rs 50 lakh) for establishing apparel training institutes, Mega-category units investing over Rs 500 crore will qualify for customized packages under CCIP.
Apparel, Footwear, Toys, and Accessories Policy includes Rs 5,000 per employee per month for 5 years to encourage job creation (within a total 10-year period), Rs 13,000 per new employee for training and skill development over 5 years, 5% interest subsidy on term loans, up to ₹50 crore, 25% concession on development fees and 100% exemption on stamp duty and registration fees, Electricity tariff relief of one rupee per unit for up to 5 years, Financial assistance of 25% (up to Rs 50 lakh) for establishing apparel training institutes, and Mega units investing over Rs 75 crore will be eligible for customized packages.
In Aerospace and Defense Production Promotion Policy, 25% concession on development fees, Quality certification reimbursement 50% or Rs 10 lakh, whichever is lower will be provided. Mega units investing over Rs 500 crore will qualify for customized packages.
Renewable Energy Equipment Manufacturing Policy includes 50% concession on development fees, 50% reimbursement for quality certification costs or Rs 1 lakh, whichever is lower, and Mega units investing over Rs 250 crore will qualify for customized packages.
Pharmaceuticals Policy will provide 50% reimbursement of quality certification costs or up to Rs 1 crore for 5 years, 2-year slack period incentives for additional investments, 50% capital grant for establishing testing facilities, up to Rs 1 crore, and Mega units investing over Rs 250 crore will be eligible for customized packages.
The Biotechnology Policy 2024 has been implemented in the state. Under this policy, a Biotechnology Parks and Incubators Development Scheme has been introduced. Biotechnology units and institutions will be given up to 75% grant for purchasing equipment and furniture. A grant of up to Rs 5 crore will be provided for the development of private biotechnology parks, and biotech incubators will receive a grant of up to Rs 1 crore. Additionally, new biotechnology companies will be given interest subsidies on loans from nationalized banks.
The “Medical Devices Policy 2024” has been implemented to promote the manufacturing of medical devices in the state. Under this policy, units manufacturing medical devices will be granted financial assistance of up to 75% of the cost for purchasing testing equipment, subject to a maximum of Rs 1 crore. The land premium rates for these units will be set at 25% of the standard rates in industrial areas.
The “Electric Vehicle (EV) Manufacturing Policy 2024” has been implemented to promote the manufacturing of electric vehicles in the state. This policy includes subsidies on capital investment and interest rebates for new EV manufacturing units. The policy also provides special incentives for battery manufacturing and charging infrastructure development.
The “High-Value Manufacturing Policy 2024” has been introduced to promote high-value manufacturing industries. The policy provides capital subsidies, interest subsidies, and assistance for technology upgradation. Special incentives are provided for industries engaged in advanced manufacturing, including robotics, aerospace, and defense.
The “Export Promotion Policy 2024” aims to boost exports from the state. Under this policy, exporters will be provided with financial assistance for participating in international trade fairs and exhibitions. Export-oriented units will receive subsidies on transportation and warehousing costs. Additionally, an Export Promotion Council will be established to support and facilitate exporters.
The “Logistics and Warehousing Policy 2024” has been introduced to enhance the logistics and warehousing infrastructure in the state. This policy includes incentives for the development of logistics parks, cold storage facilities, and warehousing units. Financial assistance will be provided for setting up modern logistics and warehousing facilities.
The “City Gas Distribution Policy 2024” has been implemented to promote the distribution of natural gas in urban areas. Under this policy, companies engaged in city gas distribution will receive subsidies on infrastructure development and tax benefits. The policy aims to expand the reach of natural gas to households, industries, and transportation sectors.
The “Film Tourism Policy 2024” has been introduced to promote Madhya Pradesh as a film shooting destination. Under this policy, filmmakers will be provided with financial incentives for shooting films in the state. The policy includes subsidies on shooting permits, accommodation, and transportation costs. Additionally, film studios and post-production facilities will receive financial assistance for infrastructure development.
This policy framework is designed to attract significant investments, boost industrial growth, and generate massive employment opportunities, positioning Madhya Pradesh as a leading industrial hub in the country.