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 operates through five separate support mechanisms. Capital subsidy is available to MSMEs at 15%–40% of FCI, with the applicable rate determined by location — general, backward or tribal areas. Interest subsidy on term loans ranges from 3%–5%, rising to as much as 7% for special categories, and is set higher for priority sectors including textiles, food, electronics and EV.
Electricity-duty exemption of up to 100% applies for 5–10 years in backward and tribal areas. An employment-generation subsidy is offered per additional direct employee.
Stamp-duty exemption stands at 100% in tribal and backward areas, and 50% elsewhere.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Madhya Pradesh
- Manufacturing units that are new or expanding, across MSME, large and mega categories, located in Madhya Pradesh - Units operating in the priority sectors: electronics, EV, food processing, textiles, pharma, defence
How to apply
- Register the project on the MP Industries portal, mpindustry.gov.in - Applications may also be filed by MSME applicants at the District Trade and Industry Centre (DTIC) of their district - Determine the area classification — general, backward or tribal — by referring to the MP Industries zone map - Furnish the documents required: Udyam Registration, a CA-certified FCI statement, GSTIN, project report, land documents and the bank loan sanction letter - Secure the Provisional Eligibility Certificate from the Industries Department or the DTIC - Begin production and meet the minimum investment and employment thresholds - Submit annual claims for capital subsidy, interest subsidy, electricity duty exemption and employment-generation subsidy via the DTIC or the Industries Department
Frequently asked questions
Who can apply for MP Industrial Promotion Policy 2025 incentives?
Manufacturing units in Madhya Pradesh — whether Micro, Small, Medium, Large or Mega, and whether newly established or undergoing eligible expansion or modernisation — can apply.
What capital subsidy is available?
MSMEs can claim capital subsidy ranging from 15% to 40% of Fixed Capital Investment, depending on location. Units in general areas qualify for 15%–25%, while those in backward and tribal areas receive up to 40%.
Which sectors are prioritised?
Textiles, food processing, electronics, electric vehicles, pharmaceuticals and defence manufacturing fall under the priority sector list, and units operating in these areas may be eligible for higher incentive rates on every component.
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 direct employment can claim a per-employee subsidy for every new worker hired, with the amount depending on the enterprise category and location.
How do I apply?
Applications are filed on the MP Industries portal at mpindustry.gov.in, and MSMEs may alternatively apply through their District Trade and Industry Centre (DTIC). Large and mega projects are handled by the MP Industrial Development Corporation (MPIDCO) or the State Investment Promotion Board.
Details last verified on 10 September 2026. Source: the issuer's published information.