Industrial Promotion Policy, 2014 (Amended 2022)
Operative Period – This policy is valid from 2014 (amended 2022) until a new policy is notified by the State Government.
Objective – To improve investor facilitation and enhance ease of doing business; to achieve higher and sustainable economic growth by accelerating the growth of manufacturing and service sectors through private sector participation; to enhance employment opportunities in all sector; to encourage growth in Madhya Pradesh’s thrust sectors
1. Incentives for Large Manufacturing Industries
- a. Basic Investment Promotion Assistance (BIPA): Upto 40 % of investment in Plant and machinery disbursed across 7 years
- b. Incentive Multiples over IPA
- a. Employment generation incentive: 1.0–1.5 times
- b. Export incentive: 1.0–1.2 times
- c. Assistance for infrastructure development in private/undeveloped government land: 50% of the expenditure incurred upto INR 3 Crore
- d. Assistance for green industrialization: 50% of expenditure incurred upto INR 1.00 Cr.
- e. 100% reimbursement on Patent Charges upto INR 5 lacs.
- f. Interest Subsidy of 5-7% for a period of 5 years. (only for textile units)
- g. Slack period of 2 years after COD for Investments in Pharma
(Customized package available for Investment above INR. 100 Cr and INR 25 Cr for Garment, Food Processing, Bio-Technology, Herbal and Minor Forest Produce, Tourism and IT)
2. Additional Incentive for large scale Food Processing units
- a. Investment Promotion Assistance: 1.5 times on BIPA
- b. Mandi Fee reimbursement for five years upto 50% of Investment in P&M
- c. Financial assistance of 15% of the project cost upto INR 5 crore for Mega Food parks and Food parks
- d. Stamp duty will be reimbursed to the promoters for transferring their land to Special purpose vehicle for establishing mega food park
- e. Tariff Rebate on new HT connection at INR 1/- per unit for a period of 5 years for green field projects
3. Special Package for large scale Garment Industries
- a. Basic Investment Promotion Assistance (BIPA): Upto 40 % of investment in Plant and machinery disbursed across 7 years
- b. Incentive Multiples over IPA
- a. Employment generation incentive: 1.0–1.5 times
- b. Export incentive: 1.0–1.2 times
- c. Interest subsidy of 5% for 7 years
- d. Assistance for green industrialization: 50% of expenditure incurred upto INR 1.00 Cr
- e. Employment Generation Assistance upto INR 5,000/month per employee for 5 years for from COD applicable for 10 years
- f. Customized Package available for projects with investment in plant and machinery more than INR 25 crores under Mega Industry
- g. Skill development and training expenses reimbursement of INR 13000 for 5 years for MP domicile employees
- h. 50% discount in the development fee in case of taking lease land in the industrial area
- i. 100% reimbursement of Stamp Duty and Registration Fee on execution of land lease documents
- j. Electricity duty exemption for a period of 7 years from the date of taking new electricity connection
- k. Fixed electricity tariff of INR 5 per unit for 5 years from COD.
- l. Garment Units can avail maximum incentives to the tune of 200% of their investment in plant and machinery
4. Incentives Package Logistics & Warehousing Industries
- a. Investment assistance to the tune of 15% (maximum of INR 15 Cr.) on Gross Fixed Capital Investment (except land and residential buildings)
- b. Infrastructure development assistance of 50% upto maximum of INR 1 Crore
- c. 100% reimbursement of stamp duty and registration fee on Instrument of Mortgage
- d. Relaxed Floor Area Ratio (FAR) of 1: 0.60 and maximum ground coverage of 60%
View/Download Full Policy
| Sno | Notifications/Amendments/Orders/Circulars | Date | Download |
| 1. | Extension in the effective period of Garment and Logistic Package | 06/01/2023 | Download |
| 2. | Clarification regarding definition of sales for sales multiple | 25/11/2022 | Download |
| 3. | Extension in the effective period of Investment Promotion Assistance (IPA)) | 05/07/2022 | Download |
| 4. | Clarification on point no. 2 & 10 of GoMP order dated 06.08.2019) (Download application forms) | 15/03/2021 | Download |
| 5. | Garment unit investing more than 25 crs shall be treated as Mega unit & mega units investing min. 5 crs in P & M under expansion shall be eligible for IPA | 23/07/2020 | Download |
| 6. | Reimbursement of cost incurred in patent/IPR, amendment in ETP/STP subsidy etc. Industrial Promotion Policy 2014 | 23/10/2019 | Download |
| 7. | Clarification on GST Order dated 22.06.2018 | 06/08/2019 | Download |
| 8. | Industrial Promotion Policy 2014 (Amended December 2018) | 01/12/2018 | Download |
| 9. | Addition of Building in definition of Plant & Machinery. | 05/10/2018 | Download |
| 10. | Order related to Special Package for revival of Large Scale Sick/ Closed units & units with Change in management, Geographical Multiple, Financial assistance for providing employment to disable in pvt. sector etc. | 28/08/2018 | Download |
| 11. | Process of availing benefit of VAT/CST for existing units after implementation of GST. | 22/06/2018 | Download |
| 12. | Incentives for Logistics & Warehousing industry (Under IPP 2014) | 22/06/2018 | Download |
| 13. | Special Financial Assistance for Garment Units | 09/04/2018 | Download |
| 14. | Investment Promotion Assistance (IPA) (Under IPP 2014) | 13/10/2017 | Download |
| 15. | Consideration of IEM Part B as Date of Production of industries | 24/09/2015 | Download |
| 16. | Priority Block | 18/05/2015 | Download |
| 17. | Madhya Pradesh Nivesh Protsahan Yojna 2014 | 02/03/2015 | Download |
| 18. | Industrial Promotion Policy – 2014 and action plan | 01/10/2014 | Download |