CM Mohan Yadav chaired a cabinet meeting at the Secretariat on Tuesday, where several key policies were approved to drive economic growth and attract investment. One of the major decisions was the approval of the Integrated Township Policy 2025, aimed at encouraging private investment in urban real estate. This policy is expected to stimulate economic activity, create job opportunities, and contribute to the state’s GDP. It facilitates planned urban expansion through land pooling, ensuring the systematic development of large-scale townships while allowing existing residential colonies to grow within the current framework.
As per the policy, integrated townships will be developed in areas with adequate infrastructure. The minimum land requirement for cities with a population under five lakh is set at 10 hectares, while for larger cities with over five lakh residents, it will range between 20 to 40 hectares. Developers must register with the relevant authority before proceeding with projects under this policy.
To streamline the approval process, an authoritative committee will be established, chaired by the Principal Secretary at the state level and the Collector at the district level, with the Directorate of Urban and Rural Investment acting as the nodal agency. The policy also grants various benefits, including exemptions on stamp duty, flexibility in land use, and incentives for green and renewable energy initiatives. Additionally, measures such as Transferable Development Rights (TDR) and support for affordable housing will help in systematic urbanization.
The current practice of developing small land parcels has made city-level infrastructure planning challenging. The new policy addresses these concerns by introducing minimum area requirements, ensuring better infrastructure development, and stabilizing urban land demand and supply.
Approval of Madhya Pradesh MSME Development Policy 2025
The cabinet also approved the Madhya Pradesh MSME Development Policy 2025 to support micro, small, and medium enterprises. The policy integrates benefits from the state’s Logistics Policy 2025 and Export Policy 2025, providing MSMEs with customized incentive packages under the Industry Promotion Policy 2025.
Key highlights of the policy include:
- Investment promotion assistance of up to 40%, with additional incentives for renewable energy adoption.
- Special support for SC/ST and women entrepreneurs, offering 48% assistance, and 1.3 times the standard support in backward development blocks.
- Exporting units to receive up to 52% investment assistance, with maximum aid of ₹2 crore for freight and ₹50 lakh for export certification.
- Medium enterprises creating over 100 jobs will receive 1.5 times the standard subsidy, along with ₹5,000 per employee per month for five years in employment generation sectors and ₹13,000 for skill development training.
- Additional support for emerging sectors such as MSME exchanges, lean engineering, testing labs, and technology transfers.
- For the first time, the policy includes logistics, recycling, vehicle scrapping, and R&D in the service sector. Special incentives will also be provided for the medical device and footwear industries.
These policy initiatives reflect the state government’s commitment to industrial growth, infrastructure development, and employment generation, ensuring Madhya Pradesh remains an attractive destination for investors.
Approval of Amendments to Industrial Land Allotment and Management Rules for MSMEs
The Cabinet has approved amendments to the Madhya Pradesh MSME Industrial Land, Building Allotment, and Management Rules-2021 to enhance transparency and efficiency in the allocation process. Under the revised rules, developed industrial plots and flatted industrial complexes will now be allotted through an e-bidding system, while undeveloped land will be allocated through an online application-based process. This streamlined approach ensures faster allotment for serious investors, promoting ease of doing business. Additionally, the maintenance of industrial areas will be managed by industry associations or designated agencies.
Approval of Madhya Pradesh Startup Policy and Implementation Plan-2025
The Cabinet has approved the Madhya Pradesh Startup Policy and Implementation Plan-2025 to foster a robust startup ecosystem in the state. The policy provides a comprehensive framework for financial and non-financial support, including incentives for startups and incubators. A Mega Incubation Center will be developed through a public-private partnership with leading national and international institutions, along with satellite centers across the state.
Under the Mukhyamantri Udyam Kranti Yojana, startups will be eligible for collateral-free loans under the Central Government’s Credit Guarantee Scheme for Startups, with reimbursement of guarantee fees for up to five years and an interest subsidy of 5% per annum on disbursed loans. The state aims to establish 10,000 startups, creating 1.02 lakh new jobs.
The policy offers structured support at every stage of the startup lifecycle, including ideation, validation, early-stage, and growth. Key financial incentives include:
- ₹10,000 per month as part of the Entrepreneur-in-Residence (EIR) program for up to a year.
- A ₹100 crore Startup Capital Fund and seed grants of up to ₹30 lakh per startup.
- Exemptions on electricity duty, employment generation incentives, and subsidized electricity tariffs.
- 5% interest subsidy and loan guarantee fee reimbursement for startups.
- Support for digital marketing, participation in events, and acceleration programs.
A Madhya Pradesh Startup Advisory Council, comprising industry leaders and global investors, will guide long-term growth. The policy aims to position Madhya Pradesh as a major startup hub, which will be showcased at the Global Investors Summit in Bhopal, aligning with Prime Minister Narendra Modi’s vision of a developed India by 2047.
Approval of Madhya Pradesh Civil Aviation Policy-2025
The Cabinet has approved the Madhya Pradesh Civil Aviation Policy-2025, aligning with the UDAN scheme to enhance air connectivity. The policy focuses on developing new air routes, connecting tourist, religious, and industrial hubs to promote business and employment opportunities.
Given Madhya Pradesh’s strategic central location, the policy aims to establish a modern, safe, and investment-friendly aviation ecosystem. Key initiatives include:
- Development of three MRO (Maintenance, Repair, and Overhaul) hubs.
- Construction of airstrips within a 75 km radius, airports within a 150 km radius, and helipads within 45 km at tehsil levels.
- Subsidy grants for private investors to set up aviation training institutes and aero sports training centers.
- Air cargo facilities to support the export of agricultural and perishable goods.
- Capital subsidies to promote ancillary aviation services.
To boost aviation investments, the VAT on Aviation Turbine Fuel (ATF) will be reduced to 1% for aircraft stationed overnight. Additionally, investment promotion assistance of up to 40% will be provided for establishing flight training institutes.
By 2030, the policy aims to ensure cost-effective and reliable air connectivity to all major tourist and religious sites, supporting Madhya Pradesh’s economic and industrial development.
Approval of Madhya Pradesh Electric Vehicle (EV) Policy-2025
The Madhya Pradesh Electric Vehicle Policy-2025 has been approved to accelerate the adoption of electric mobility and position the state as a leading EV manufacturing hub. The policy focuses on developing charging infrastructure, promoting EV manufacturing, and creating employment opportunities.
Key initiatives include:
- Establishing the Madhya Pradesh EV Promotion Board to oversee policy implementation.
- Developing Bhopal, Indore, Jabalpur, Gwalior, and Ujjain as model EV cities.
- Targeting 80% electrification of government vehicles.
- Exemptions on vehicle tax and registration fees for EVs.
- Incentives for setting up charging and battery swapping stations.
- Mandatory charging points at all petrol stations by the policy’s end.
Infrastructure development will ensure:
- One charging station every 20 km on highways.
- Fast-charging stations every 100 km for heavy-duty EVs.
- One charging station per sq. km in EV model cities.
Green Zones and E-Mobility Zones will be established in tourist villages, archaeological sites, technology hubs, and SEZs. Additionally, financial grants of up to ₹2 crore will be provided for EV research centers and skill development programs.
This policy is a major step toward sustainable urban mobility and aligns with India’s push for a cleaner transportation ecosystem.
Approval of Madhya Pradesh Biofuel Scheme-2025
The Madhya Pradesh Biofuel Scheme-2025, under the Renewable Energy Policy-2025, aims to position the state as a leader in biofuel production. The scheme provides:
- Incentives for biofuel manufacturing units.
- Subsidies for farmers to procure bioenergy equipment.
- Development of a strong biomass supply chain.
- Land allocation at concessional rates for biofuel production.
The scheme is designed to reduce dependency on fossil fuels, promote renewable energy solutions, and contribute to India’s vision of becoming a global leader in biofuels.
The Biofuel Scheme encompasses all aspects of fuel production and utilization, including bio-CNG, biomass briquettes, pellets, and biodiesel. It covers feedstock cultivation, production technology, distribution, and application, ensuring a comprehensive approach to biofuel development.
Key Incentives:
- Investment support of up to ₹1200 crore for biofuel units.
- 50% subsidy (up to ₹5 crore) for infrastructure development, covering electricity, water, gas pipelines, roads, drainage, waste management systems (ETP, STP, pollution control equipment), and other essential facilities.
- Exemption from electricity duty and energy development cess for 10 years.
- Customized incentive packages for investments exceeding ₹500 crore, facilitated by the Industrial Policy and Investment Promotion Department.
- Support for intellectual property rights and quality control initiatives.
Impact and Sustainability:
The scheme is designed to boost biofuel production while ensuring the efficient utilization of agricultural and bio-waste for green energy generation. Biofuels play a crucial role in energy security and carbon reduction, supporting the state’s vision for a sustainable and eco-friendly future.
Over the past decade, Madhya Pradesh has significantly expanded its renewable energy capacity, growing from 500 MW in 2012 to over 7000 MW today. While solar and wind energy have seen substantial advancements, the state is now shifting focus toward utilizing agricultural residues, forest waste, unused grass, and urban waste for producing bio-CNG, briquettes, pellets, and biodiesel.
The policy also explores hydrogen as a future energy source, opening new possibilities for advancement in the green energy sector. These initiatives will help reduce dependence on energy imports, conserve foreign exchange, and promote environmental sustainability, demonstrating the government’s commitment to clean energy solutions.