Introduction: MP Logistics Subsidy 2025
The logistics sector plays a crucial role in reducing supply-chain costs and improving industrial competitiveness. To strengthen logistics infrastructure across the state, the Government of Madhya Pradesh has introduced the MP Logistics Policy 2025, offering structured financial incentives and capital investment subsidies for logistics parks, warehousing projects, and cargo infrastructure.
The MP Logistics Subsidy 2025 is especially attractive for investors planning logistics parks, ICDs, MMLPs, warehouses, cold storage, freight terminals, and air cargo facilities. However, these incentives are policy-driven and compliance-intensive, which makes professional subsidy structuring essential.
This is where Finraja Consultancy Private Limited, as a dedicated subsidy consultancy, plays a critical role.
What Is MP Logistics Policy 2025?
The MP Logistics Policy 2025 aims to position Madhya Pradesh as a logistics hub of Central India by encouraging private investment in modern logistics and warehousing infrastructure.
Key Objectives of the Policy
- Promote integrated logistics parks and multimodal infrastructure
- Reduce logistics cost for industries
- Encourage warehousing and cold chain development
- Improve connectivity and supply-chain efficiency
To achieve these objectives, the policy offers capital-linked fiscal incentives backed by a clear financial assessment framework.
Eligible Projects Under MP Logistics Subsidy 2025
The policy covers a wide range of logistics and warehousing infrastructure, including:
- Logistics Parks
- Inland Container Depots (ICDs)
- Multi-Modal Logistics Parks (MMLPs)
- Warehousing Infrastructure
- Private Freight Terminals (PFT)
- Gati Shakti Cargo Terminals (GCT)
- Container Freight Stations (CFS)
- Air Freight Stations (AFS)
- Air Cargo Complexes (ACC)
Each category has specific eligibility criteria, minimum investment requirements, and incentive limits, making expert evaluation essential.
MP Logistics Policy Financial Incentives
The MP logistics policy financial incentives are primarily based on:
- Eligible Fixed Capital Investment
- Project scale and land area
- Type of logistics infrastructure
The incentives are designed to improve project viability, reduce capital burden, and encourage large-scale infrastructure creation.
Fiscal Incentives for Logistics Parks, ICDs & MMLPs
Minimum Land Area & Investment Requirement
- 25 to 75 acres
- Minimum investment (excluding land): ₹50 crore
- More than 75 acres
- Minimum investment (excluding land): ₹100 crore
Capital Investment Subsidy
- 30% of Fixed Capital Investment (FCI)
- Maximum subsidy:
- ₹50 crore for 25–75 acres
- ₹75 crore for projects above 75 acres
(Land cost excluded; eligible FCI includes buildings, plant & machinery, internal roads, utilities, handling systems, electricals, transformers, generators, etc.)
Additional Incentives
- 100% reimbursement of stamp duty & registration fees, up to ₹5 crore
- 50% reimbursement of IGBC green certification fee, up to ₹20 lakh
- 50% reimbursement of external infrastructure development cost, up to ₹5 crore
- Allotment of undeveloped land as per Land Management Rules
Fiscal Incentives for Other Logistics & Warehousing Infrastructure
Minimum Land Area & Investment
- 5–10 acres: Minimum investment ₹10 crore
- 10–50 acres: Minimum investment ₹50 crore
- More than 50 acres: Minimum investment ₹100 crore
Capital Investment Subsidy
- 30% of total capital expenditure, subject to:
- ₹5 crore (5–10 acres)
- ₹15 crore (10–50 acres)
- ₹25 crore (above 50 acres)
Other Benefits
- 100% stamp duty & registration fee reimbursement, up to ₹5 crore
- 50% reimbursement of external infrastructure cost, up to ₹3 crore
Special Incentive: Conversion of Agricultural Warehouses to Industrial Warehouses
- Minimum storage capacity: 10,000 MT
- Assistance: 40% of total conversion cost
- Maximum subsidy: ₹1 crore
Eligible works include dock levellers, industrial flooring, lighting, ventilation, handling systems, and IT infrastructure.
Sanction of Incentives (Milestone-Based Disbursement)
Incentives under the MP Logistics Policy 2025 are released in three stages:
- 40% after completion of construction / commencement of operations (COD)
- 30% after completion of 1 year from COD
- 30% after completion of 2 years from COD
COD is defined as the date on which the first consignment of goods is received at the facility.
How Finraja Consultancy Private Limited Helps
At Finraja Consultancy Private Limited, we provide end-to-end subsidy advisory services, including:
- Project eligibility assessment
- Capital cost structuring as per policy
- Financial assessment and subsidy optimisation
- Government liaison and follow-ups
- Post-approval compliance and disbursement support
Our approach ensures that clients secure the maximum eligible subsidy with full policy compliance.
Conclusion
The MP Logistics Subsidy 2025 presents a powerful opportunity for logistics and warehousing investors in Madhya Pradesh. However, the real benefit lies in accurate interpretation and professional execution.
With Finraja Consultancy Private Limited, you gain a trusted subsidy partner who ensures:
- Policy-accurate structuring
- Maximum financial benefit
- Smooth and timely incentive release
Planning a logistics or warehousing project in MP?
Connect with Finraja Consultancy today and unlock the full potential of MP Logistics Policy 2025.
