M.P.

Warehousing & Logistics Investment Promotion Rules, 2012 (After 1st Ammendment)
(Under M.P. Warehousing & Logistics Policy 2012)

In exercise of the powers conferred by Order No.F-3-30/2012/29-2 dated 24.09.2012 issued

by Department of Food, Civil Supplies & Consumer Protection, Government of Madhya
Pradesh, the State Government hereby makes the following rules:1. Short title - These Rules may be called the M.P. Warehousing & Logistics
Investment Promotion Rules, 2012.
2. Definitions - In these rules, unless there is anything repugnant in the subject or
context, (i)

Policy means the Madhya Pradesh Warehousing & Logistics Policy 2012

(ii)

Proforma means forms prescribed under these rules.

(iii)

APEX Committee - means the Committee for promotion of investment

headed by the Honble Chief Minister of Madhya Pradesh.

(iv)

Single Window - means all proposals under this Policy shall be disposed of
by the committee constituted by the TRIFAC.

(v)

Early Bird Incentives - means proposals called time to time under this
Policy shall be accepted on first come first served basis.

(vi)

Capital cost - means all costs involved in construction of godown excluding

land cost.

(vii)

Capital subsidy - means amount of incentive prescribed under this Policy

on capital cost.

(viii)

Interest subsidy - means amount of incentive prescribed under this Policy

on the amount of loan sanctioned by the bank.

(ix)

VGF means Viability Gap Funding.

(x)

Integrated Project - means in addition to construction of godowns,

purchase of new heavy vehicles for use of logistics services under this policy.

(xi)

WDRA - means Warehousing Development & Regulatory Authority.

(xii)

Warehouse Zone - means land prescribed for construction of godowns

and logistics facility under this policy.

3. Appointment of prescribed authority under SWS:

Save as otherwise provided in the Warehousing & Logistics Policy 2012,
administration and decisions regarding disposal of the proposals shall be taken by
the district level committee constituted by the Managing Director, TRIFAC.
4. Eligibility requirement:
(i)

Investment proposals for less than Rs.1 Crore (excluding land cost) and
capacity less than 3334 MT will not be considered.

(ii)

Proposals for expansion of minimum 3334 MT capacity and minimum

investment of Rs.1 Crore will be considered.

(iii)

The cost of the project will be computed based on actuals or Rs.3000/- PMT
whichever is less (excluding land cost).

(iv)

After submission of the application the applicant is required to complete all

the necessary formalities within stipulated time frame.

(v)

The applicant is required to construct the godowns as per prescribed

specifications. If the quality of the godown is not as per the specifications
then the applicant will not be eligible for subsidy.

(vi)

Maximum eligibility will be for 50000 MT in a Tehsil for all category of

applicants.

(vii)

Any proposal submitted to the Government for grant of any other subsidy or
benefits in any other scheme or for any business incentive will not be eligible
under this policy.

(viii)

Under integrated projects for logistics services, the applicant is required to

construct a godown having capacity of at least 10000 MT and adding new 50
vehicles with a capacity of not less than 9 MT.

(ix)

For claiming subsidy under the policy, it will be mandatory to submit the bank
details and certification from the concerned bank.

(x)

For claiming any subsidy under quality certification, applicants are required
to furnish the details of payment made through bank to the concerned
institution.

(xi)

Every applicant is required to construct a godown as per M. P. Warehousing

& Logistics Specifications which will be made available separately and furnish
an affidavit that the warehouse constructed under this policy will be used for
storage for 10 years.
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(xii)

After acceptance of the proposal for construction of warehouse under the

policy, ownership sale/transfer of more than 50% of the value of the asset
will not be allowed upto 7 years but in case of death or any other legal
process it may be permitted on case-to-case basis.

(xiii)

The warehouse owner is required to carry out regular maintenance and upkeep of godown and make it storage worthy for at least 10 years.

(xiv)

For storage of goods, warehouse owner will be required to obtain license as

per extant rules.

(xv)

Premises will be kept open for inspection for the competent authority or
their representatives and progress report may be called at any time by the
prescribed authority.

5. Capital subsidy:
For every project capital subsidy @ 15% of the actual cost (excluding land cost) or
Rs.3000/- PMT whichever is lower, subject to maximum Rs.2.25 crores will be
reimbursed. To claim capital subsidy, the applicant will be required to submit
construction completion certificate and the certificate of cost issued by a Chartered
Accountant through financing bank.
6. Interest subsidy:
For every project interest subsidy @ 5% on the approved cost minus margin money
or amount of loan whichever is lower will be reimbursed for first seven years subject
to maximum Rs. 1.70 crores. First reimbursement to the bank will be made on issue
of completion certificate of godown. This will include interest accrued and paid by
the applicant during the period of construction. Penal interest levied due to default
in payment by the applicant will not be admissible under the policy.
7. Rebate in vehicle registration fees:
Under the integrated projects of logistics services, in addition to construction of
godowns for 10000 MT capacity, 2% rebate in registration fees for purchase of 50
new vehicles having capacity of not less than 9 MT will be provided.
8. Quality certification fees:
To promote quality construction, financial incentive @ 50% or Rs.1,00,000/whichever is lower, will be reimbursed for the cost incurred in obtaining quality
certification like accreditation from WDRA or ISO certification. This incentive shall be
available only to newly constructed godowns under the policy.

9. Application for construction of godown:

(i)

Under the Warehousing & Logistics Policy, 2012 online applications in

Proforma-A will be invited by the prescribed authority from time to time for
construction and expansion of warehousing capacity.

(ii)

After submission of online application, applicants are required to submit the

following documents to the prescribed authority within prescribed time limit.
(a) Printed and signed copy of the online application submitted.
(b) Proof/receipt regarding payment of prescribed fees.
(c) Copy of the project report along with supporting documents.
(d) All the necessary documents related to land, as prescribed.

10. Application fees:

Every applicant is required to pay application fees @ Rs.10/-PMTat the time of
submission of online application. Out of this fees Rs.2.50 per MT shall be charged as
processing feeswhich shall be non-refundable. The requisite fees should be
credited in the account of MPWLC within 5 working days of submission of online
application. Remaining Rs.7.50 per MT shall be adjusted/refunded/forfeited in the
following manner:(i)

After successful selection of the application, if the applicant submits his land
details with all NOCs in time, executes agreement, commences and
completes the construction within stipulated period then Rs.7.50 per MT
shall be refunded without interest along with release of capital subsidy.

(ii)

If the applicant is kept in waiting list and wants to withdraw the proposal
from waiting list, an amount of Rs. 7.50 per MT without interest will be
refunded.

(iii)

If the applicant is not able to submit his land details with all NOCs within the
stipulated period or application is withdrawn from the select list or the land is
not found suitable for construction of warehouse by District level Committee,
then Rs.7.50 per MT shall be forfeited.

(iv)

If the applicant is in waiting list and the policy provisions have been
exhausted then the amount of Rs.7.50 per MT will be refunded without
interest.

(v)

If after acceptance, the applicant has not executed the agreement within
stipulated period then an amount of Rs.7.50 per MT shall be forfeited.

(vi)

If after signing of agreement, the construction is not completed within the

stipulated period then an amount of Rs.7.50 per MT shall be forfeited.
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11. Request for inspection:

Every applicant whose name is in the selected list is required to submit to District
level Investment promotion Empowered Committee within four months the
request for inspection of the site by the prescribed Committee in proforma B along
with the following documents:(i)

All documents related to ownership of land.

(ii)

Form P-I, P-II, khasra, copy of BhuAdhikar and RinPustika issued by the
Tehsildar.

(iii)

NOC/approvals for construction of godown from the competent authorities.

(iv)

Project report along with certificate of net worth issued by a Chartered

Accountant.

(v)
Copy of the letter issued by the bank regarding sanction of loan.
Details of submission of above documents will necessarily be uploaded by the
applicant on the website www.mpwarehousing.com
The committee may depute any officer or team for inspection of land to see that the
land is suitable for construction of warehouse and should have clear access. As per
the provisions of M.P. Investment Facilitation Act,2008proposals upto Rs.10 crores
will be decided by the District level Committee, proposals above 10 crores and
below 25 crores will be decided by the State level committee and proposals for
above 25 crores shall be finalized by the APEX committee. District Level
Committee shall,after due diligence, forward the proposal with their
recommendation to the concern competent Committee depending upon quantum of
investment
12. Agreement under the policy for construction of godown:
After the submission of request for inspection of site, the District level Committee
will inspect and inform the final decision to the applicant accordingly within one
month. After receiving the notice for acceptance of the proposal, applicant is
required to execute an agreement within 30 days of the issue of the acceptance,
otherwise the application will be rejected.
13. Construction period:
Every successful applicant selected for construction of warehouse upto 25,000 MT
capacity is required to complete it within one year in all respects from the date of
execution of agreement. Total 18 months period will be allowed for construction of
capacities more than 25000 MT warehouses. In case of failure to complete the
construction work within the stipulated period, applicant will not be eligible for any
incentives under the policy.

14. Requirement of land:

For construction of a warehouse upto5000 MT capacity, the land requirement would
be minimum 2 acres. Thereafter, for every additional 5000 MT capacity, additional
1.7 acres (proportionate) land would be necessary. Land must be free from all
encumbrances and in case of mortgage, NOC from financing institution will be
required for the proposed project.
15.

Calculation of capacity:
Capacity of warehouse to be constructed will be computed by the following
formula:Length x Width x (Height 3)
80
(All dimensions in feet and max. height not to exceed 18 feet

16.

Duration of the Policy:

All concessions under the policy will be available to the proposals sanctioned within
two years of notification of these rules or upto 15 lakh MTs capacity for construction
of godowns, whichever is earlier.

17.

Disposal of disputes under the policy:

All the disputes related to the MP Warehousing & Logistics Policy, 2012 and rules
made thereunder shall be referred to the Additional Chief Secretary(Food)/Principal
Secretary(Food), Govt. of Madhya Pradesh for disposal. He may adjudicate the
disputes himself or appoint any other officer not below the rank of Secretary or
Commissioner to the Government of M.P. for the purpose.

18.

Interpretation and modifications in the policy or rules:

For any interpretation, modification or relaxation in the MP Warehousing & Logistics
Policy 2012 and rules made thereunder shall be decided by the Apex Investment
Promotion Committee headed by the Chief Minister of the State.