MP Policy & Incentives

Madhya Pradesh State Policy

1. MP Tourism

The “Madhya Pradesh Tourism Policy 2016” document outlines definitions and minimum requirements for various tourism projects in the state. These include:

1. Hotels (Star/Deluxe Category): Must have at least 50 air-conditioned rooms, luxurious fittings, and various amenities.

2. Convention Centers: Should have air-conditioned seating, parking for 50 cars, modern conferencing equipment, and additional facilities like exhibition centers and VIP lounges.

3. Museums: Must cover at least 10,000 sq.ft., include a cafeteria, restrooms, and other visitor amenities.

4. Aquariums: Require a minimum area of 1,000 sq. meters, restrooms, and a cafeteria.

5. Theme Parks: Should be based on specific themes and offer a variety of attractions and facilities.

6. Amusement Parks: Must cover at least 5 acres and include rides, games, and food stalls.

7. Caravan Tourism: Involves specially built vehicles for leisure travel, equipped with essential amenities.

8. Cruise Tourism: Includes facilities for water rides and river cruises with specific safety and regulatory standards.

9. Houseboats: Floating accommodations adhering to specific construction and amenity standards.

10. Film Studios: Must provide comprehensive facilities for film production and post-production.

11. Adventure Sports: Centers for activities like rock climbing, parasailing, and rafting, meeting specific safety standards .

Madhya Pradesh State Policy

2. M.P. Industrial. Development Corporation under Industrial Promotion Policy, 2014 (as amended. 2018).

Vision
  • To establish Madhya Pradesh as a leading tourist destination.
  • Focus on sustainable tourism development and economic growth.
Objectives
  • Enhance tourist infrastructure.
  • Promote lesser-known tourist spots.
  • Develop niche tourism like eco-tourism, adventure tourism, and heritage tourism.
Key Strategies
  • Public-Private Partnership (PPP) for infrastructure projects.
  • Incentives and subsidies for tourism projects.
  • Marketing and promotional activities both domestically and internationally.
  • Training programs for skill development in the tourism sector.
Fiscal Assistance
  • Incentives for tourism projects with an investment over INR 50 crore.
  • Tourism projects can choose incentives from either the Tourism Policy or Industrial Promotion Policy but not both.
Employment Generation
  • Emphasis on creating jobs and enhancing skills in the local population.
  • Mandatory provision for industrial units to provide 70% of employment to Madhya Pradesh residents.
Environmental Sustainability
  • Promotion of eco-friendly practices.
  • Encouragement of water harvesting and recycling.
Infrastructure Development
  • Development of roads, connectivity, and basic amenities at tourist sites.
  • Establishment of world-class infrastructural facilities.
Support Mechanisms
  • Strengthening the Single Window System for ease of doing business.
  • Facilitation of land acquisition for tourism projects.
Special Focus Areas
  • Revival and promotion of cultural heritage sites.
  • Development of new tourism circuits and clusters.
Implementation and Monitoring
  • Regular monitoring and evaluation of policy implementation.
  • Feedback mechanisms for continuous improvement.

Madhya Pradesh State Policy

3. M.P. MSME Development Policy, 2021

Introduction

– The MSME sector is crucial for employment and economic growth in Madhya Pradesh.

– The government prioritizes MSME development.

Objectives of the Policy

– Promote overall industrial development and create enabling infrastructure.

– Foster inclusive growth and support young entrepreneurs.

Policy Focus Areas

– Emphasis on ease of doing business, procedural reforms, and infrastructure development.

– Provision of online services and private-public partnerships.

Operative Period and Eligibility

– Effective from notification until replaced by a new policy.

– Assistance available for new units and existing units undergoing expansion or technological upgrades.

Business Facilitation and Grievance Resolution

– Establishment of MSME Business Facilitation Cell and MSE Facilitation Council.

– District and State Level committees for concessions and grievance resolution.

Financial Assistance and Incentives

– Special financial packages for various sectors like textiles, pharmaceuticals, etc.

 – Industrial development subsidies for new units with investments ranging from Rs. 1 crore to Rs. 50 crores.

Infrastructure and Technical Support

– Development of MSME parks, land banks, and cluster development.

– Support for technical upgrades and capacity strengthening.

Self-Employment and Start-up Ecosystem

– Support for self-employment schemes and start-up policies.

– Revival assistance for sick or closed units.

Additional Provisions

– Authority to amend, relax, or cancel policy elements as needed.

– Clear jurisdiction and glossary for policy terms and definitions.

Madhya Pradesh State Policy

4. MP Textile

Special Package for Apparel Sector

Salary Grant: 25% of monthly salary per regular employee, with a maximum of Rs. 2,500 per month, up to Rs. 5 lakhs annually, for 5 years, for new industrial garment units investing Rs. 1 crore to Rs. 10 crores and employing at least 25 regular employees.

Interest Subsidy: 5% interest subsidy for 7 years on term loans for plant and machinery under the Amended Technology Upgradation Funds Scheme (ATUFs) by the Ministry of Textile, Government of India, for units investing more than Rs. 10 crores.

Reimbursement of Training Expenses: Rs. 13,000 reimbursement per new employee who is a domicile of Madhya Pradesh, for 5 years [citation:5].

Employment Generation Subsidy: Rs. 5,000 per month per new employee for a period of 5 years, applicable to employees appointed within the first eight years from the start of commercial production, up to a maximum of 10 years from the commencement date.

Composite Unit Classification

– Units must engage in specific manufacturing activities and utilize at least 75% of primary produce such as yarn.

– Types of activities include cloth manufacturing from thread, cloth processing, thread manufacturing, and garmenting.

Additional Benefits Eligibility
– Units availing benefits from this special package can also access other non-similar assistance under the MSMED Policy as per eligibility.

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