Ready-Made Garments/Apparels and Made-ups

Wearable clothes or non-wearable stitched clothes, in which at least two-ends of clothes have been stitched using a sewing machine

Footwear

1. Non-Leather Footwear
2. Leather Footwear
3. Ancillary units exclusively supplying their finished products to the footwear companies such as buttons and snap fasteners, inlay cards, buckles, eyelets, hooks, rivets, sequin, embroidery thread, stones, toggles, stud elastic cloth, ornaments, embellishments, zips, etc. Processing units of non-leather, such as polyurethane leather, and component manufacturing units such as upper stitching units, stock fitting facility, fly knit factory, mould factory, ornament factory, lace factory, sole factory, footbed factory, etc. supplying to footwear manufacturers shall also be considered as ancillary units.

Accessories

1. Accessories used in garment, footwear, leather & non leather products and finished goods (such as handbags, wallets, purses, travel goods excluding suitcases, gloves, upholstery etc.)
2. Tanneries and leather pre-processing units shall not be considered under this Policy.

Toys

Product or material designed or clearly intended, whether or not exclusively, for use in play by children under 14 years of age or any other product as defined under Department for Promotion of Industry and Internal Trade Toys

Large scale Garment (Upto 200% of Investment)

• Interest subsidy of 5% for 7 years
• Employment Generation Subsidy- Rs. 5000/- Per Employee Per Month for 5 Yrs
• Stamp Duty & Regn fees Reimbursement
• Electricity Duty Exemption for 7 Yrs
• Tariff Rebate at INR 1/- per unit for 7 years. 

Textile – Interest subsidy of 5% on Standalone to 7% for Composite for 5 years

Footwear –

• Employment Generation Subsidy- Rs. 5000/- Per Employee Per Month for 5 Yrs
• Interest subsidy of 5% for 5 years
• Electricity Duty Exemption for 5 Yrs
• Tariff Rebate at INR 1/- per unit for 5 years. 

Incentives For MSME Sectors 

The importance of the apparel industry is reflected in many State government initiatives, such as the Apparel Incubation Centre in Gwalior. Madhya Pradesh has a presence of apparel units in Jabalpur, Chhindwara, Bhopal, Ujjain, Indore, Dhar, and Gwalior districts. As the State covers new ground through these steps, the MSME segment needs to catch up to leverage it completely. The Department has these focused provisions for the segment’s growth:

1. Employment Generation Assistance:
   • Apparel and made-ups manufacturing units having at least ₹1 crore and up to ₹5 crores investment in plant & machinery and a minimum of 25 regular employees will be provided 25% of the salary of each regular employee.
   • The employee must be a permanent resident of the State.
   • Maximum ₹2500 per month, up to an annual limit of ₹5 lakhs, for 5 years as an assistance.
2. For Units with More than ₹5 Crore Investment:
   • Apparel and made-ups manufacturing units with more than ₹5 crores investment in plant and machinery will be eligible for further assistance and facilities.

Fiscal Incentives For Large Sectors 

Infrastructure Development Assistance 50% assistance for developing power, water, gas pipeline, road, drainage and sewage infrastructure upto the factory gate subject to a maximum of ₹5 Crore if the investor acquires private land or gets undeveloped Government land for setting up of the unit.

Green Industrialization Assistance Capital subsidy of 50%, max upto ₹5 Crore for setting up of waste management systems (such as Effluent Treatment Plant, Sewage Treatment Plant, pollution control devices etc.) and maximum of ₹10 Crore for setting up Effluent Treatment Plant with Zero Liquid Discharge. Sanctioning in 2 equal annual instalments.

Assistance for IPR and Organic Certification

• IPR Assistance: 100% reimbursement of expenses incurred for filing patents, copyrights, trademarks, and geographical indications (GI), subject to a maximum of ₹10 Lakh per unit.
• Organic Certification Assistance: 100% reimbursement of expenses incurred for obtaining organic certifications from APEDA-accredited agencies, subject to a maximum of ₹5 Lakh per unit

Incentive to Provide Employment to Differently Abled Persons

Units providing employment to Persons with Disabilities (minimum 5% of total workforce) will be eligible for following incentives:

1. 100% reimbursement of skill development expenses upto ₹5,000/- per employee for 3 months from date of joining.
2. Employees PF/ESI assistance: Reimbursement of employee’s contribution- maximum ₹6,000/per month for 5 years.
3. Medical insurance premium reimbursement for 5 years

Interest Subsidy

5% interest subsidy on term loan taken for Plant & Machinery for 7 years, maximum upto ₹50 Crore, from date of commercial production

Incentive for establishing Apparel Training Institute

 Units shall be given 25% subsidy for establishment of Apparel Training Institute up to a maximum limit of ₹50 lakh

Reimbursement of Stamp Duty and Registration Fee

Units who take land on lease in industrial areas established by the State Government will be reimbursed the stamp duty and registration fee charged on lease land

Power Tariff Reimbursement

Power Tariff reimbursement of ₹1/unit shall be given to the units in this sector for a period of 5 years