Objective of the policy

The objective is to position the state as a premier hub for the IT/ITeS/ESDM industry by fostering investments, creating employment avenues, and establishing a conducive ecosystem with robust infrastructure tailored for IT/ITeS, ESDM, and related sectors.

Operating period of the policy

The policy is valid for a period of 5 years starting from 2023 to 2028

IT, ITes

IT, ITes units

Assistance for IT, ITeS units is provided under two separate models, Capital Assitance model and Rental Assistance Model.

Capital Assistance Model:

The units which undertake the construction of building(s) on private land or land leased from the government are eligible to take incentives under this model.

• Capital expenditure assistance of 25% on Gross Fixed Capital Investment (GFCI), upto INR 30 Cr payable on yearly equal instalments in upto 7 years.
• Additional assistance of 2% for unit/s set up by women entrepreneur(s)
• provided 80% of the total built-up area constructed/developed for core activities.
• Interest subsidy of 6% on the interest recovered or the actual rate (whichever is lower) upto INR 5 Cr in 5 years.

Rental Assistance Model:

IT/ITeS units leasing bare shell or plug & play spaces qualify for rental and Employment Generation Assistance. However, units leasing such spaces through nodal agencies at concessional rates are ineligible for rental assistance. Units owning or purchasing pre-constructed buildings are eligible solely for Employment Generation Assistance.

• • 1. Rental Assistance for the period of 3 years for the following category of districts, provided minimum rented carpet area is 3000 Sq. Ft.:
       1. For category A (per seat per month)
          1. Co-working rental assistance- ₹3000 (Total ceiling -₹ 10 Crores)
          2. Rental assistance- ₹ 1000 (Total ceiling -₹ 3 Crores).
       2. For category B (per seat per month)
          1. Co-working rental assistance- ₹ 1500 (Total ceiling -₹ 5 Crores).
          2. Rental assistance- ₹ 5 Crores (Total ceiling -₹ 1.5 Crores).
    2. Employment Generation Assistance for upto 3 years upto INR 15 crores (no annual limit):
       1. For 1000 employees- ₹ 4000 per emp. per month
       2. 1000-1500 employees- ₹ 4500 (for >1000 employees)
       3. 1500-2000 employees- ₹ 5000 for >1500 employees
       4. Up to 200 employees in Rural BpOs- ₹ 5000
  • 1. Additional Assistances (available to all units):
  • 1. Marketing Assistance via subsidy of 50% on expenses upto 2 lakh (international events) or 1 lakh (national events) for upto 3 years.
    2. Quality certification discount of 50% upto INR 6 lakhs, can be availed once per certification.
    3. patent certification assistance of upto INR 5 lakh for domestic patents and INR 10 lakh for international patents.
    4. 100% rebate on stamp duty and registration charges on the lease executed in industrial parks developed by GoMp.
  • 1. Incentives for Expansion/Diversification units

Expansion and Diversification IT/ITeS/ESDM/ Data Centre Units may avail respective assistance/incentives given,

• • • They have taken benefits/assistance under any of the IT policies and have now expanded at other locations
    • The new investment is minimum 30% of existing GFCI

IT, ITeS Developers

• • 1. Eligible developers, with a minimum of 2 Lakh Sq.Ft. built-up area within 4 years, can avail capital expenditure assistance.
    2. This assistance includes 25% on Gross Fixed Capital Investment (GFCI) for the first 5 parks in Category A districts, with a maximum ceiling of ₹25 Cr per single location.
    3. Other developers (apart from the first five), a 15% capex on GFCI is available over 5 years, with a maximum ceiling of ₹10 Cr per single location.
    4. 100% rebate on stamp duty and registration charges on the lease executed in industrial parks developed by GoMp.
    5. Disbursements are contingent upon construction stages and occupancy levels.

ITIA Developers

Notification of the land as an ITIA given,

• • • private Ownership: A contiguous area of more than 5 acres, minimum built-up area of 4 lakh sq. ft., minimum 60% leased/sold/ rented to IT/ITeS/ESDM Units and minimum GFCI of INR 120 Crores
    • Government Bodies of GoMp: total built-up of minimum 2 lakh sq.ft., minimum 60% leased/sold/rented to IT/ITeS Units except data centre units
    • No additional assistance/incentives under the policy

Electronic System Design and Manufacturing (ESDM)

ESDM Units

The unit(s) operating in ESDM sector including standalone R&D, Testing and Design labs in M.p. will be eligible to claim Capital expenditure assistance.

• • • • 1. Capital expenditure assistance of 40% on Gross Fixed Capital Investment (GFCI), upto INR 150 Cr payable on yearly equal instalments in upto 7 years.
        2. Additional assistance of 2% for unit/s set up by women entrepreneur(s).
      • 1. Interest subsidy of 6% on the interest recovered or the actual rate (whichever is lower) upto INR 10 Cr in 5 years.
        2. Marketing Assistance via subsidy of 50% on expenses upto 2 lakh (international events) or 1 lakh (national events) for upto 3 years.
        3. Assistance for Testing, Calibration, and Certification includes coverage of 50% of the costs, up to ₹10 Lakhs, for labs situated within Madhya pradesh, and 25% of the costs, up to ₹5 Lakhs, for labs
           located outside the state. Additionally, 50% of the costs for ISO Certification are supported, with a maximum assistance of ₹1 Lakh.
        4. patent certification assistance of upto INR 5 lakh for domestic patents and INR 10 lakh for international patents.
        5. 100% rebate on stamp duty and registration charges.

ESDM Developers

• • • • • 1. Capital assistance is available for, ready-built factory sheds without common facilities are eligible for a capital expenditure (CApEX) subsidy of 15% of the Gross Fixed Capital Investment
             (GFCI), with a cap of ₹1500 per square foot upto maximum of INR 5Cr.
          2. Meanwhile, for ready-built factory sheds with common facilities, the CApEX subsidy is set at 25% of the GFCI, capped at ₹2000 per square foot upto INR 25 Cr.
          3. Furthermore, developers have the option to seek reimbursement for stamp duty and registration charges.
          4. Disbursements are contingent upon construction stages and occupancy levels.

Data Centre Units and Edge Data Centres

• • • • • 1. Capital expenditure assistance of 25% on Gross Fixed Capital Investment (GFCI), for first 5 anchor DC with a minimum investment of INR 500 Cr in Mp is available upto INR 125 Cr for each data
             centre. After the anchor data centres, others can avail assistance of 15% of investment upto INR 50 Cr.
          2. power tariff reimbursement is offered at the rate of INR 2 per unit – for first five (5) DC (with Min 5 MW capacity) and at INR 1 per unit – for others, for a period of 5 years.
          3. Electricity duty exemption is available for connections of 33 KV (3 years), 132 KV (5 years) and 220 KV (7 years).
          4. Reimbursement of Transmission and Wheeling Charges to DC units is available at 50% for 5 years on intra state sale of power.
          5. Dual power grid on demand and Renewable energy under open access system is available for DCs.
          6. Quality certification discount of 50% upto INR 6 lakhs, can be availed once per certification and uptime tier 3/4 certification up to INR 10 Lakhs.
          7. patent certification assistance of upto INR 5 lakh for domestic patents and INR 10 lakh for international patents.
          8. 100% rebate on stamp duty and registration charges on the lease executed in industrial parks developed by GoMp

Land Benefit for IT/ITes/ ESDM units

• • • • • 1. A rebate on land shall be provided as per the collector guideline value according to the area mentioned below:
             1. Up to 0.5 acre – 75%
             2. >0.5 acre up to 1 acre – 60%
             3. >1 acre up to 5 acres – 50%
             4. > 5 acres – 25%
          2. To claim incentives under this policy, IT/ITeS/ESDM/Data Centre Units who have been allotted land in IT parks of Nodal Agency, would be required to construct minimum 50% (for IT/ITeS/Data
             Centre) and minimum 40% (for ESDM) of the total built-up area that can be constructed on the said land as per the permitted FAR of the development plan of that area.
          3. Built up area use on land allocated by nodal agency will be as follows:
             1. For IT/ ITeS/ ESDM Units in parks of MpSEDC-
                1. Raw: 80% core activities & 20 % other use
                2. Developed: 80% core activities & 20 % other use
             2. For Data Centre
                1. Raw/Developed :100% core activities
             3. For Developers – IT/ITeS/ESDM
                1. Developed /Raw: 80% core activities & 20 % other use
             4. For Developers in ITIA
                1. Developed/Raw: 60% core activities & 40 % other use.

View/Download Full policy

Madhya pradesh IT, ITeS & ESDM Investment promotion policy 2023 Document

2) Relevant Notifications/Amendments/Orders/Circulars

Go to MpSeDC Dept of S&T