Madhya Pradesh Industrial Policy
Updated on May 6, 2022, 1:57 p.m.
Madhya Pradesh is home to various industries ranging from Automobile to Software and Pharmaceuticals to Retail and from Textile trading, Defense, Real Estate to the Mineral Based Industries. While the Textile manufacturing and trading is the oldest business to contribute to the development of the economy, the real estate has emerged very fast in past few years.
Madhya Pradesh is the second largest state in India after Uttar Pradesh. Madhya Pradesh is located in centre of India and the state is rich and natural resources like the minerals, agriculture, biodiversity, and Iron Ores. Furthermore this state forms 91% of country’s Industrial production and the coal reserves.
The state also has the biggest reserves of copper and diamond in India, apart from ample reserves of Manganese, Asbestos, Mica, Fireclay, Slate, Tungsten, Copper, Diamonds, Bauxite, Marble, Granite, Coal, Phyrophylite, Limestone, Iron and Steel as well.
This state is blessed with incredible natural resources, wonderful climate and fertile agro climatic conditions. After the Indian Economy was opened to liberalisation in the year 1991, lot of changes has been taking place over the years in various segments like Agriculture, Industries, E-commerce and other fields. Various forces of market are dictating the process of investments in the field of economic growth and development.
There are several economic zones in state which promote exports and economic expansion of Madhya Pradesh. Pithampur is the major hub of various automobile industries also known as Detroit of India due to presence of various special economic zones created by the Government of Madhya Pradesh under the practical leadership of Shri. Shivaraj Singh Chouhan.
The MP Industrial Policy 2021 is the brain of the Government of Madhya Pradesh and created to boost the MSME (Micro Small and Medium Enterprises) in the state and create amazing environment for economic boom in Madhya Pradesh.
OBJECTIVES OF THE MP INDUSTRIAL POLICY 2021
The objectives of the MP Industrial Policy 2021are given below as follows:
- To generate more job opportunities and self-employment for the youth and the experienced class of people in Madhya Pradesh.
- Encourage the overhaul development of the state in all sectors like Iron and Steel, Defence, ITES, Automobile, Textiles, Pharmacy, Robotics, Artificial Intelligence, Logistics, IT, Engineering Solutions, Agriculture Equipment and others.
- To nurture the rise of new breed of entrepreneurs in the state to set up new business houses, industries and manufacturing units in Madhya Pradesh.
- Provide the infrastructure for establishment of various IT and BT in the state by establishment of many IT Zones, Parks and other Industrial Complexes.
- To stress on cautious usage of various natural and mineral resources.
VISION OF THE MP INDUSTRIAL POLICY 2021
To achieve the effective growth and bring the economic prosperity to the people of Madhya Pradesh through the Supportable Industrialisation, Employment Generation, Skill Set Enrichments and creating valuable revenue for the state.
MISSION OF THE MP INDUSTRIAL POLICY 2021
- Creating and Up-grading the economic infrastructure in many industrial cities of Madhya Pradesh.
- Developing world class infrastructure for the industries with active participation of the Public and Private Enterprises.
- Creation of the Land Bank for providing land to many Industrial and Business houses in the state.
FEATURES OF THE MP INDUSTRIAL POLICY 2021
The features of the MP Industrial Policy 2021are given below as follows:
- To promote the growth of various Industrial Parks for the development of Micro and Small Scale Industries that is rich in raw materials and other resources.
- Establishment of Cabinet Committees on the investment promotions to encourage the Industrial Promotion.
- Providing strength to creation of the new MSME sector and ageing MSME segments in the state.
- Attract new inventions, Research and Development in various segments of the state to satisfy the client’s expectations.
- Giving attractive incentives and concessions to various business and Industrial Establishments in Madhya Pradesh.
- Create a level playing environment for all the investors of the state by encouraging the facilitation mechanisms and enabling them to conduct their business with lot of comfort.
- Offering various chances to strengthen the local vendors of the state under the “Make in India” programme.
- Giving importance to the Single Window Scheme to make the policies more effective and encourage rise of more industries in the state.
- Encouraging the domestic, national and international investments in the state in various segments to boost the chances of being the number 1 state in India to achieve economic growth.
- Appointment of many Industrial Relationship Managers for various industries in many segments to boost the commercial growth in the state.
- Boosting the inter department communications, investment scrutiny and approving the incentives using various packages for the Large and Medium Scale Industries.
- Encouraging the distribution of the incentives under permitted policies to allow growth of new and expansion of existing industrial parks in the state.
ELIGIBILITY CRITERIA FOR BECOMING THE MEMBER OF THE MP INDUSTRIAL POLICY 2021
The eligibility criteria for becoming the member of the MP Industrial Policy 2021are given below as follows:
- The business establishment or the company must belong to the state of Madhya Pradesh.
- MSME coming up in Madhya Pradesh after 1.8.2020 and beyond will be considered as beneficiaries.
- The business enterprise must not fall under the ineligible list of the companies under the MP Industrial Policy 2021.
- Companies making COVID-19 Masks, Gloves and the Hand Sanitizers in Madhya Pradesh will be given top priority under this scheme.
- It is vital to offer employment to 80% of its total workforce including Disabled, OBC, SC, ST and Endangered Tribal of Madhya Pradesh.
- The companies must have invested INR 10 Crores and beyond to avail the benefits.
BUSINESS AND INDUSTRIAL UNITS UNDER THE MP INDUSTRIAL POLICY 2021
There are various business and industrial units available under the MP Industrial Policy 2021and defined as per the act given below.
Micro Industrial Units--A unit having the investment less than INR 25 Lakhs, including the machinery, logistics and plant in Madhya Pradesh.
Small Scale Industrial Units---A unique unit having the investment of INR 25 Lakhs and INR 5 Lakhs in various Equipment and Machinery.
Medium Scale Industrial Units---A unique institution having an investment of INR 5 Crores and INR 10 Crores in the Machinery.
Large Scale Industrial Units---A Unit having the investment of INR 10 Crores in plant and Machinery in Madhya Pradesh.
Mega Scale Industrial Units---It is a unit having investment of more than INR 100 Crores in plant and machinery in the state. Furthermore, it has also invested INR 25 Crores in IT, BT, Herbal Medicines, Food Processing, FMCG (Fast Moving Consumer Goods) and other sectors in the state of Madhya Pradesh.
DOCUMENT REQUIRED FOR ENROLMENT UNDER THE MP INDUSTRIAL POLICY 2021
The documents required for getting enrolled under the MP Industrial Policy 2021 are given below as follows:
- Details about the ventures and line of business.
- Qualification Certificates of the Board of Directors.
- Sales deed showing the owners name or company name.
- Details of Mergers, Achievements, and the Research activities.
- Term Loan Sanction Letter of the business units.
- Photo of the business unit with the signature and seal of the owner.
- Details of Phone bills and Power bills of the company.
- Current Account showing the Name, Address, and GSTIN.
- Certificate showing the shareholders details under this scheme.
- Document showing change of location.
- Certificate of Power Discharge.
- Document showing the Cost of Land, Buildings and Machinery.
- Certificate of the Civil Engineer.
- Management Restructuring Certificate done in the past 3 years.
- Document showing the land conversion done in Madhya Pradesh.
- No Objection Certificate issued from the competent authority.
MAJOR INDUSTRIAL CORRIDORS UNDER THE MP INDUSTRIAL POLICY 2021
Some of the Major Industrial Centres established under the MP Industrial Policy 2021 are given below as follows.
- Bhopal is known for Textile, Electronic Manufacturing Clusters (EMC), Engineering, Herbal, IT and Food Processing.
- Jabalpur is ideal for Garments, Leather and Apparels, Tyres, Stone, Minerals, Forest, Herbal and Food Processing.
- Rewa is the hub for manufacture of Cement, Solar Parks, Agricultural Equipment’s, Minerals, Agriculture and Forest Industries.
- Sagar is ideal for Food processing, Electronic System Design and Business Units, Fast Moving Consumer Goods, Mineral Processing and Textiles.
- Gwalior is the best place for Industries, Ceramics and Glass, IT, Engineering, FMCG, Food Processing and Textiles.
- Pithampur is the best hub for Automobiles, Auto spare parts, Electric Vehicles, Manufacturing Industries, Cement and Garments.
- Indore is the supreme hub dealing with Pharmacy, BT, Manufacturing companies like Trucks, Tractors, Electronic Complexes, Hardware Parks, Insurance, and Healthcare, Textiles, IT, FMCG and others.
- Special Economic Zones in Hargadh and Umriya-Dungariya to boost economic revolution in the state.
AMAZING INCENTIVES UNDER THE MP INDUSTRIAL POLICY 2021
There are various incentives schemes under the MP Industrial Policy 2021 are given below as follows.
- We offer 5% interest subsidies for 8 years on the term loans taken for manufacturing units approved under this scheme.
- Skill development and training expense of each employee in Madhya Pradesh is INR 14000 will be given for 5 years.
- All Food Units and FMCG Units will be exempted from the Mandi Fees for doing lot of investments in their industries for 5 years.
- Employees and business owners from Madhya Pradesh will get amazing rewards for setting up business and working.
- An assistance of INR 6000 per month is given to all employees for first 8 years from the start of production from 2021.
- 60% financial assistance is offered to the developers for supporting the Industrial Parks, Areas, and Clusters for Apparel units.
- 25% Concession along with 100% financial assistance to the Power Looms in MP, for upgrading the units, if more than 6 units in the state is set up by the owner.
- Stamp duty and Registration Fee is refunded.
- Power supply at a rate of INR 5 per unit on any new power connection is given for 5 years from the date of commercial productions.
- 50% Rebate in the development fee charged on the units will be given to Garments and Manufacturing units taken land on lease in Industrial area of Madhya Pradesh.
PROCEDURE FOR APPLYING FORTHE MP INDUSTRIAL POLICY 2021
The procedures for applying under the MP Industrial Policy 2021 are given below as follows.
- The business owner or the Entrepreneur has to fill the application form by visiting the Department of Industries and Investment Promotion of the Government of Madhya Pradesh.
- He/she has to fill the form giving all the personal details and attach the relevant documents along with the form.
- All the Xerox copies of documents like the Memorandum Of Understanding, Qualification Certificates of the Board of Directors, Sales deed showing the owners name or company name, Mobile Number, Personal details, Details of Mergers, Achievements, and the Phone bills, Power bills, Registration documents must be submitted to the Department of MSME Industries.
- Memorandum form with the relevant District Industries centres of the District is vital.
- You must also obtain the acknowledgement; it is an alpha numerical serial number giving information about the registration of the plans.
- You also need the Industrial License certificate to start business.
- The entrepreneur must set up the Industry in MPlDC (Madhya radish Industrial Development Corporation) area or private land or government land obtained as per guidelines of Government of Madhya Pradesh.
- The applicant will receive the message in her/his mobile number.
- Any pending document required must be submitted within 7 business days.
- The time duration for being part of the MP Industrial Policy 2021 is 1 Month.
Department of Industries and Investment Promotion of the Government of Madhya Pradesh are instrumental in making Madhya Pradesh one of the number one states in terms of Industrial growth.
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