MP Industrial Promotion Policy (2025) — Incentives — Frequently Asked Questions

New and expanding manufacturing units — Micro, Small, Medium, Large, and Mega — in Madhya Pradesh are eligible. Both greenfield projects and eligible expansion or modernisation of existing units can apply.

Capital subsidy ranges from 15% to 40% of Fixed Capital Investment. General-area units get 15%–25%, while backward and tribal area units can receive up to 40%.

Priority sectors include textiles, food processing, electronics, electric vehicles, pharmaceuticals, and defence manufacturing. Units in these sectors may qualify for enhanced incentive rates.

Yes. All benefits — capital subsidy, interest subsidy, electricity duty exemption, employment-generation subsidy, and stamp duty exemption — are non-dilutive and non-repayable.

Interest subsidy of 3%–5% on term loans is standard, rising to 7% for special categories such as SC/ST and women entrepreneurs. Priority sectors attract higher rates.

Required documents include Udyam Registration, CA-certified FCI statement, GSTIN, project report, land documents, and bank loan sanction letter.

Applications are submitted online through the MP Industries portal at mpindustry.gov.in. MSMEs can also apply through their District Trade and Industry Centre (DTIC).

Units creating additional direct employment receive a per-employee subsidy for each new worker added. The quantum varies by enterprise category and location.

The scheme is always open with a rolling application process. There is no fixed deadline.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for MP Industrial Promotion Policy (2025) — Incentives, though having it can strengthen your application and unlock other benefits.

MP Industrial Promotion Policy (2025) — Incentives is offered by Department of MSME, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.