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.

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