Policy & Notifications-MSME-development

MP MSME Development Policy 2021 (Amended September 2023)

Operative Period – The policy is valid from 2021 until replaced by another policy.

Objective – Achieving the State’s goal of overall industrial development and MSME competitiveness; creating enabling infrastructure; providing a conducive ecosystem and promoting inclusive growth for MSMEs; providing an opportunity to young entrepreneurs through instilling employment generation.

The following incentives shall be provided to MSMEs with investment up to Rs. 10 Cr in Plant & Machinery (P&M)
  1. Investment Promotion assistance of 40%, additional 8% for SC/ST/Women
  2. Additional 12% on capital subsidy for export-oriented units
  3. Financial assistance upto INR 5 Lakhs for quality certifications
  4. Financial assistance upto INR 5 Lakhs for energy audit expenses
  5. Financial assistance upto INR 5 Lakhs for patents/IPR registration
  6. 50% reimbursement of expenditure towards Infrastructure Development (Road, water electricity etc) upto INR 25 Lakhs
  7. 50% reimbursement for expenditure towards setting up of ETP upto INR 25 Lakhs

Additional Concessions for Specific Sectors (Investment up to INR 10 Cr in P&M)

Power loom Sector

  1. Capital subsidy of 25% for upgradation of power loom.
  2. Electricity Concession of INR 1.50 per unit for 20HP and INR. 1.25 per unit for greater than 20HP and upto 150HP.

Pharma Sector

  1. Assistance upto 50% on the expenditure incurred for obtaining certificate of Good Manufacturing Practices (GMP) & USFDA with a maximum limit of INR 50 Lakhs
  2. Assistance upto 50% on the expenditure incurred for establishment of pharmaceutical labs with maximum limit of INR 25 Lakhs

Apparel Sector

Salary grant of INR 2500 /month per person to units for 5 years (Upto INR 5 Lakhs per annum)
  1. Investment more than Rs. 10 Cr & upto Rs. 50 Cr in P&M : (Medium Enterprises)
  1. Investment Promotion assistance up to 40% of Plant & Machinery and Building
  2. Financial assistance upto INR 5 Lakhs for patents/IPR registration
  3. 50% reimbursement of expenditure towards Infrastructure Development (Road, water and electricity etc) upto INR 1 Crore on each
  4. 50% reimbursement for expenditure towards setting up of ETP upto INR 1 Crore

Special Package for Specific Sectors (Investment more than Rs. 10 Cr & up to Rs. 50 Cr in P&M)

Textile Sector

  1. Interest subsidy of 2% for 5 years for investment Upto INR 25 Cr in fixed assets upto INR 5 Crore and 5% for 5 years for investment more than INR 25 Cr.
  2. Interest subsidy of 7% for 5 years for New Composite Units with investment more than INR 25 Crores

Food Processing Sector

  1. Power tarrif rebate of INR 1 per unit for 5 years for HT Connections or 20% on power charges whichever is less
  2. Upto 50% exemption on Mandi Fee for 5 years
  3. Infrastructure developers under this sector can avail 15% of project cost (Upto INR 5 Crore)

Apparel Sector

  1. Interest Subsidy of 5% for 7 years om term loan
  2. Exemption from Electricity Duty for 7 years
  3. Fixed Power Tariff fixed at INR 5 per unit for 5 years
  4. Employment Generation Subsidy upto INR 5000/month for 5 years
  5. Reimbursement of Training expense upto INR 13000 per employee shall for 5 years
  6. 100% reimbursement of Stamp Duty & Registration fee

Fiscal Incentive for Infrastructure Development

  1. Financial assistance up to INR 2.5 Crores for developing Industrial Area
  2. Financial assistance up to INR 5 Crores for developing Industrial Area in private sector and for developing Industrial Area for Power loom, Pharma, Apparel sectors.

Specific financial assistance for food processing industries (MSMEs)

  1. Electricity Tariff – INR. 1.00 per unit concession to all food-processing units for 5 years from COD. During off season, billing will be done on 10 % of the contract demand or actual consumption on general tariff whichever is more
  2.  Quality Certification – Reimbursement of 50% of the fee for obtaining such certifications subject to an upper limit of INR. 5.00 lac
  3. Research and Development – INR. 5.00 lac per patent shall be reimbursed for obtaining each patent. 50% of the expenditure on technology transfer subject to a ceiling of INR. 5.00 lac shall be reimbursed.
  4. Transportation – 30% of the expenditure incurred on transportation of processed goods (perishable commodity) to Inland Container Depot /port shall be reimbursed upto INR 10 Lakh/annum for 5 years
  5. Capital Subsidy of 25% on investment in Plant & Machinery maximum INR 2.5 Crore with investment upto INR 25 Crore
  1. 25% of the investment on plant and machinery subject to a limit of INR 1.5 crore for Captive power generation/ production of organic manure from waste or residue material
  2. 50% subsidy subject to a ceiling to INR 10 Crore for investments on plant and machinery for cold chain for non-horticultural produce like milk, value addition and preservation
  1. Promotional Scheme –
  1. 50% grant-in-aid subject to a limit of INR 3.00 lac shall be provided for organizing National/ International Workshops/Seminars
  2. 50% financial assistance subject to a limit of INR 3.00 lac will be provided to institutions participating in National/International level fair/Exhibition related to food processing

Financial assistance for establishing primary processing and collection centers specifically in rural areas – 50% subject to a limit of INR 1.00 crore

  1. Assistance for Infrastructure Development –
    1. Setting up of Mega Food Park – 15% of the project cost subject to a ceiling of INR 5 crore. Assistance shall be available on setting up of 10 food processing units in the developed park
    2. Setting up of Food Park – 50% of the project cost subject to a ceiling of INR 5.00 crore in 30 acre land in the State. Assistance shall be available on setting up of 10 food processing units in the developed park
    3. Reimbursement of stamp duty paid by the promoters on transfer of land by the promoter(s) to SPV for Mega Food Park

MP MSME Development Policy 2021

Go to Dept of MSME Website

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