MP Industrial Promotion Policy (2025) — Incentives
Department of MSME, Government of Madhya Pradesh · Central government
Madhya Pradesh offers MSMEs in backward areas a 15%–40% capital subsidy, interest subsidy, and electricity duty exemption.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
The scheme is structured around five distinct support mechanisms. A capital subsidy covers 15%–40% of fixed capital investment (FCI) for MSMEs, with the rate varying by location—general, backward, or tribal areas. An interest subsidy of 3%–5% applies to term loans, rising to 7% for special categories, and is higher for priority sectors such as textiles, food, electronics, and electric vehicles.
Additional benefits include an electricity-duty exemption of up to 100% for 5–10 years in backward or tribal areas, and an employment-generation subsidy calculated per additional direct employee. Stamp-duty is fully exempted in tribal and backward areas, while a 50% exemption applies elsewhere.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Madhya Pradesh
- New and expanding manufacturing units (MSME / large / mega) in Madhya Pradesh. - Priority sectors: electronics, EV, food processing, textiles, pharma, defence.
How to apply
To apply, follow these steps:
1. Register your project on the MP Industries portal at mpindustry.gov.in. 2. If you are an MSME applicant, you may alternatively apply through the District Trade and Industry Centre (DTIC) in your district. 3. Determine your area classification (general, backward, or tribal) by consulting the MP Industries zone map. 4. Submit the required documents: Udyam Registration, CA-certified FCI statement, GSTIN, project report, land documents, and bank loan sanction letter. 5. Obtain the Provisional Eligibility Certificate from the Industries Department or DTIC. 6. Begin production and meet the minimum investment and employment thresholds. 7. Submit annual claims for capital subsidy, interest subsidy, electricity duty exemption, and employment-generation subsidy through the DTIC or Industries Department.
Frequently asked questions
Who can apply for MP Industrial Promotion Policy 2025 incentives?
New and expanding manufacturing units of all sizes — Micro, Small, Medium, Large, and Mega — in Madhya Pradesh can apply, covering both greenfield projects and eligible expansions or modernisations of existing units.
What capital subsidy is available?
MSMEs can claim a capital subsidy of 15%–40% of Fixed Capital Investment, with the upper limit of 40% reserved for units in backward and tribal areas. General-area units receive 15%–25%, while those in backward and tribal areas are eligible for up to 40%.
Which sectors are prioritised?
Units in textiles, food processing, electronics, electric vehicles, pharmaceuticals, and defence manufacturing may qualify for enhanced incentive rates across all components.
Is this scheme equity-free?
Yes. Every benefit under the scheme — capital subsidy, interest subsidy, electricity duty exemption, employment-generation subsidy, and stamp duty exemption — is a non-dilutive, non-repayable incentive.
What is the employment-generation subsidy?
Units that add new direct workers receive a per-employee subsidy, with the amount depending on the enterprise category and location. This encourages labour-intensive manufacturing in the state.
How do I apply?
Applications for the scheme are filed via the MP Industries portal at mpindustry.gov.in, or through the District Trade and Industry Centre (DTIC) for MSMEs. Large and mega projects are handled by the MP Industrial Development Corporation (MPIDCO) or the State Investment Promotion Board.
Details last verified on 3 August 2026. Source: the issuer's published information.