MP MSME Development Policy

This Policy shall come into effect from the date of notification.

This Policy will remain effective till the time it is replaced by the new policy.

MSMEs in the manufacturing sector which start commercial production  on or after the date of notification of the policy will be eligible to get  assistance under this Policy. Such manufacturing MSMEs which have  started commercial production on or after 01.07.2020 but before the date  of notification of this Policy and invested more than Rs. 10 crores & up  to Rs. 50 crores in the plant & machinery, will be eligible to receive  assistance under the earlier relevant policies. It is clarified that such units  will not be eligible for assistance/facilitation under this Policy.

For new manufacturing units, which will start production on or  after the date of notification of this Policy, the option of availing  facilities/assistances under the earlier incentive schemes will not be  available. However, the existing MSMEs in the manufacturing sector  undertaking expansion/diversification/technological upgradation during  the effective period of this Policy will be eligible for assistance/facilities  equivalent to a new industrial unit on the additional eligible investment  made by them, if the unit remains in the eligible MSME category after  such investment

Industrial Development Subsidy

1. Industrial development subsidy will be provided as follows for a new industrial unit investing up to Rs. 10 crores in plant and machinery :-
2. Industrial development subsidy to the new industrial units @ 40% on the eligible investment made by them in Plant & Machinery and building. This assistance shall be disbursed in 4 equal annual installments.
3. The cost of building shall not be more than 100% of the cost of Plant and machinery for the purpose of calculating the assistance.

• Additional Industrial Development Subsidy of 2% per year (for four years) for unit set up by women/SC/ST entrepreneur(s) or 2.5% per year (for four years) for unit set up by women entrepreneur(s) of SC/ST category; and
• Additional Industrial Development Subsidy of 2% per year (for four years) to the industrial units for exporting more than 25% and upto 50% of their total sales

Financial Assistance for Infrastructure Development

1. 50% of the expenditure on infrastructure development up to its premises, subject to a maximum of Rs. 25 lakhs shall be provided to a new industrial unit set up in private or undeveloped government land with a minimum investment of Rs. 1 crore and a maximum investment of Rs. 10 crores in plant and machinery. 50% assistance subject to a maximum of Rs. 1 crore each shall be provided to medium scale MSME units investing more than Rs. 10 crores in plant and machinery for developing power, water & road infrastructure
2. 50% of the expenditure for setting up of Effluents Treatment Plant (ETP) by MSME units investing up to a maximum of Rs. 10 crores in plant and machinery, subject to a maximum assistance of Rs. 25 lakhs and 50% of the expenditure incurred on setting up of waste management, pollution control devices, health & safety standards and water conservation measures, subject to a maximum assistance of Rs. 100 lakhs, to a medium scale MSME unit with an investment of more than Rs. 10 crores in plant and machinery
3. 50% reimbursement up to a maximum of Rs. 100 Lakhs for the establishment of a Common effluent treatment plant by a group (minimum 5) of industrial units investing up to a maximum of Rs. 10 crores (each unit) in plant and machinery.
4. 50% of the expenditure incurred in development to the developer of industrial area/ flatted industrial complex in the private sector, maximum assistance of Rs. 250 lakhs provided that industrial area so developed is at least 5 acres and less than 10 acres or carpet area of flatted industrial complex should be at least 10000 sq. ft. and 15% of the expenditure incurred in establishment/development of industrial area/cluster of 10 acres or more subject to maximum assistance of Rs. 5 crores will be made provided to the developer. In such a developed industrial area/flatted industrial complex/cluster, it will be necessary to have a minimum of five working industrial units

Financial Assistance for Energy audit

To promote energy efficiencies in MSME units investing up to a maximum of Rs. 10 crores in plant and machinery, GoMP will reimburse 50% of the cost of conducting energy audit with maximum limit of Rs. 50,000 and 25% of the cost maximum Rs. 5 Lakhs for adoption of equipment and machinery