Madhya Pradesh MSME Policy


List of Ineligible Industries

Sl No Industry
01 Activities pertaining to trading and services
03 Manufacturing of all kinds of pan masala and gutkha
04 Manufacturing of Tobacco and tobacco-based products
05 Products prohibited for manufacturing by Central or State Government.
06 Industrial units set up by central or state government or their undertaking
07 Stone crusher
08 Grinding of minerals, Calcination (Excluding manufacturing of artificial sand from crushed stone)
09 Defaulter of state government / state government undertaking
10 All types of mining activity (where there is no value addition)
11 Manufacturing of Charcoal
12 Deleted
13 All type of oil refineries
14 Cement / Clinker manufacturing
15 Publishing and Printing processes of all types
16 Saw milling & planting of wood
17 Pressing of iron/steel scrap into blocks or any other shapes
18 Electricity generation units
19 Package drinking water
20 Sortex plant and Sorting / Grading / Cleaning of crops / grain **/ Provided that except a Sortex plant (including Grading + Cleaning) established in the premises of a paddy milling unit, which mainly deals with paddy milling
21 All types of aerated/ carbonated drinks
22 Slaughter house and industries based on meat
23 Units set up in Special Economic Zone (SEZ)
24 Any industry declared by state government from time to time with reference to MP MSME Development Policy 2021.

Special Package to Power looms Sector

Sl No Particulars Inputs
Maximum investment in P & M - 10 Cr Maximum 10 looms in a unit
I Power Subsidy 1.50 / Unit 20 HP
1.25 / Unit >20 HP upto 150 HP
II 60% financial assistance up to maximum of Rs. 500 Lakhs to the developers for industrial area / flatted industrial complex / Cluster for power loom in private sector.

Special Package to Pharmaceutical Sector

Sl No   Investment up to 10 Cr in P&M Investment More than 10 Cr in P&M
I Reimbursment of WHO - GMP or US - FDA certificate for Export Readiness Charges 50 % of Expenditure NA
Max ₹ 50 Lakhs
II Subsidy for Lab Equipment & Machinery 50 % of Expenditure
Max ₹ 25 Lakhs
III 60% financial assistance up to maximum of Rs. 500 Lakhs to the developers for industrial area / flatted industrial complex / Cluster for power loom in private sector.
IV Incentive period 5 Years from the DCP 7 Years from the DCP

Special Package to Food Processing Units - Investment More than 10 Cr in P&M and up to ₹ 50 Crores

Sl No Particulars Subsidy % Max
I Rebate on Power Cost - Max ₹ 1 / Unit or 20% of such unit price Whichever is lower
II Mandi Fees 50% of Investment 5 Years
III Food Park 50% of PC 5 Crores

Note: Stamp duty will be reimbursed to the promoters for transferring their land to Special purpose vehicle for establishing mega food park


Special Package to Textile Units - ATUFs

Sl No Particulars Subsidy % Max
I Interest Subsidy - -
1.1 New units - up to investment of 25 Crores in Fixed Assets 2% on TL 5 Crores
5 Years
1.2 New Standalone units - More than investment of 25 Crores in Fixed Assets 5% on TL 5 Years
1.3 New Composite unit - More than investment of 25 Crores in Fixed Assets 7% on TL 5 Years
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