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    Incentive List

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    pandeprakhar27

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    © All Rights Reserved
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    Incentive List

    Uploaded by

    pandeprakhar27
    6 views3 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    6 views3 pages

    Incentive List

    Uploaded by

    pandeprakhar27

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Incentives Available for Investors in Madhya Pradesh

    1 Investment Promotion Assistance –


    • Large Scale Industrial Unit with investment in Plant and machinery
    more than Rs. 10.00 Crore will be eligible.(P&M means Investment in
    building and machinery)
    • Basic IPA shall vary from 40 to 10% based on formula.
    • 1.5 times additional incentives for food processing units.
    • Basic IPA shall be limited to maximum Rs.150 Crore.
    • Unit will have to utilize minimum 40% of their installed capacity for the
    1st Year. For subsequent year unit will have to utilize 75% of peak
    previous year gross supply value.
    • Export unit on export of atleast 25% to 75% of their total sale shall be
    eligible for 1.0 to 1.2 times over and above basic IPA.
    • Based on employment generation by the unit in range of 100 to 2500
    unit can get 1.0 to 1.5 times over and above basic IPA.
    • Unit established on priority blocks will be eligible for 1.2 times over and
    above the basic IPA (except cement unit).
    2. Green industrialization subsidy – 50% up to a maximum limit of Rs. 1.00 crore
    capital subsidy for investment made in setting up of ETP/STP.
    3. Private industrial Park with minimum area 10 acre can get the assistance of 15%
    of the expenditure made on development of industrial park subject to maximum
    limit of Rs. 5.00 crore.
    4. Infrastructure development subsidy- 50% assistance subject to maximum of
    Rs. 1.00 crore, for each, shall be provided for developing power, road and water
    infrastructure.
    5. 100% reimbursement subject to maximum limit of Rs. 5 lacs for expenses made
    on getting patent/IPR registration.

    6. Special textile package (Interest subsidy)-


    • For new unit with an investment of up to Rs. 25.00 crore- 2% interest
    subsidy for 5 years on term loan taken for TUFS approved P&M subject to
    ceiling of maximum Rs. 5.00 crore.
    • Stand alone textile unit with investment more than Rs. 25.00 crore -
    5% interest subsidy for 5 years on term loan taken for TUFS approved
    P&M.
    • Composite textile unit with investment more than Rs. 25.00 crore -
    7% interest subsidy for 5 years on term loan taken for TUFS approved
    P&M.

    7. Special Package for large scale Garment Industries-

    • Investment Promotion Assistance: A tax delinked investment assistance is offered to


    large scale industries ranging from 40% to 10% of investment in plant and machinery
    with an investment ranging from INR 100 million to INR 15 billion respectively
    a. Impetus on employment generation (100-2500 employees): 1.0–1.5 times
    b. Benefits to Export oriented units(25% - 75%): 1.0–1.2 times
    • Garment Units can avail maximum incentives to the tune of 200% of their investment in
    plant and machinery
    • Interest subsidy of 5% for 7 years on term loan taken for Plant & Machinery approved
    under Amended Technology Up-gradation funds (ATUFs) scheme of Govt. of India,
    Ministry of Textile
    • Green Industry Subsidy for establishing ETP/STP @50% with a maximum limit of
    1.00 Cr.
    • Employment Generation Assistance: Assistance of INR 5,000 per employee per
    month for a maximum period of 5 years for new employees from the date of commercial
    production applicable for 10 years
    Eligibility –

    S.No Duration Madhya Pradesh domicile


    employees
    1 Within one year from the COD 50%
    2 Within three year from the 75%
    COD
    3 Within five year from the COD 90%

    • Skill development and training expenses reimbursement assistance of INR. 13000


    per new employee shall be provided for 5 years for MP domicile employees
    • 50% discount in the development fee in case of taking lease land in the industrial area
    • Reimbursement of Stamp Duty and Registration Fee on execution of land lease
    documents
    • Electricity duty exemption for a period of 7 years from the date of taking new electricity
    connection
    • Concession on Power tariff: Power supply at a fixed rate of INR 5 per unit on new
    electrical connection, for 5 years from the date of commercial production.
    8. Incentives Package Logistics & Warehousing Industries -
    • Investment assistance to the tune of 15% (maximum of INR 15 crore) on Gross Fixed
    Capital Investment (except land and residential buildings)
    • Infrastructure development assistance to the tune of 50% (maximum of INR 1 crore)
    to construct access infrastructure to the site
    • 100% reimbursement of stamp duty and registration fee on Instrument of Mortgage
    executed in connection with obtaining loan from banks/financial institutions taken for
    logistic & warehousing hub/park and on purchase of land
    • Electricity duty exemption for 5 to 10 years for new High Tension (HT) connection by a
    DISCOM
    • Relaxed Floor Area Ratio (FAR) of 1: 0.60 and maximum ground coverage of 60%
    • Logistic & Warehousing hub/ parks will be allotted land in developing / developed
    industrial areas under Department of Industrial Policy and Investment Promotion on 'first
    come first serve' basis at the prevailing land rate
    • Land requirements:
    o Land should be within the approved layout plan of town planning
    o Minimum size of land should be 1 hectare in Industrial area and 2 hectare in
    agriculture area (within the planning area) and 2 hectare outside the planning
    area
    9. Additional benefit for Pharma units – Investment made by unit in P&M up to 2
    years after the date of commencement of commercial production shall be
    considered for the calculation of IPA.
    10. Assistance for Apparel Training Institute - 25% assistance subject to
    maximum limit of Rs. 50 lacs shall be provided for the establishment of apparel
    training institute.
    11. Customized package - Mega scale industrial units with an investment above
    Rs. 100 crores in plant and machinery and Rs. 25 crores in plant and machinery
    in sector including Food Processing, Bio-technology, Herbal & Minor Forest
    Produce, Tourism, IT and Garmenting sector can apply for Customized package,
    as per their requirement. CCIP will take suitable decision.

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