Madhya Pradesh is home to several large scale automobile sector companies
Presence of 30+ Original Equipment Manufacturer
200+ Auto component manufacturers provide well developed automotive ecosystem
Indore, Pithampur and Mandideep form one of India's leading Auto clusters with the presence of major industry leaders
MP has developed world-class infrastructure including industrial parks, common facility centres, testing facilities
Spread across 2,000 Ha., Pithampur Auto Cluster has over 120 large units and 450 small and medium units with a combined investment of approx US$1 1.3 billion
The state has skill development institutes like Indo-German Tool Room, Indore; MSME Technology Centre, Bhopal; and Symbiosis Skill University, Indore
India’s 1st international skilling institution "Global Skill Park" is being set up in Bhopal
Investor are offered customized package for Mega projects with investment of more than INR 100 Crore
MP provides rebate on land premium depending on the land size requirement for MPIDC developed industrial areas;
Up-to 1 Hectare – 75% Rebate
1 – 20 Hectare – 50% Rebate
Above 20 Hectare – NIL
Rebate is also offered if undeveloped land parcel is leased from MPIDC - Maximum up-to 40 Hectare - 50% Rebate on land premium. 50% rebate will be offered upto a fixed land size on the basis of investment categories given as follows -
INR 10-100 Crore - Upto 10 Hectare
INR 100-500 Crore - Upto 20 Hectare
INR 500 Crore and above - Upto 40 Hectare
Fixed Capital Rebate
Investment Promotion Assistance (IPA): A tax delinked investment assistance is offered to large scale industries ranging from 40% to 10% of investment in plant and machinery with minimum investment of INR 10 Crore. Basic Investment Promotion Assistance is divided by 7 (years) which is further multiplied by following multiples to arrive at Annual Yearly Investment Assistance
Multiple for Food processing Industries: 1.5 times
Employment generation (100-2500 employees): 1.0–1.5 times
Benefits to Export oriented units (25% - 100%): 1.0–1.2 times
Benefits to industries setting up in Priority Block: 1.2. times
Industries availing incentives in MP will know beforehand the total exact amount of IPA assistance they will receive based on their plan for employment, investment, export and the location that they choose for investment. IPA will be disbursed in 7 annual installments
Infrastructure development subsidy @50% with a maximum limit of INR 1.00 Cr each for developing Water, Power and Roads infrastructure for Private or Undeveloped Govt. Land.
For the purpose of determining eligibility for financial assistance/incentive, the P&M means the investment made by the unit in the plant, machinery, buildings, shed, quality certification and testing laboratories accredited by National Accreditation Board for Testing and Calibration Laboratories excluding investment made in land and dwelling units. It is clarified that 25% or maximum INR 50 Lacs (whichever is less) of the investment made in accredited quality certification and testing laboratories shall be considered in the calculation of eligible investment amount for financial assistance/incentive
Expansion
Established large and medium industrial units, which invest 30% of existing investment in plant & machinery or INR 50 crore (whichever is less) on expansion/diversification/technical up-gradation, will be eligible for assistance/facilities at par with new industrial units.
SGST Reimbursement
MP has a tax-delinked policy. Investor can demand for Tax incentives under customized package for Mega projects with an investment of more than INR 100 Crore
Skill Development/ Training Incentive
Incentives to provide employment to person with Disabilities (minimum 5% of Total workforce)
100% reimbursement of skill development
Employees PF/ESI assistance: Reimbursement of employee’s contribution- maximum Rs. 6000/- per month for 5 years
Medical insurance premium reimbursement
Interest Cost Subvention
Investor can demand the interest rebate under customized package for mega projects with an investment of more than INR 100 Crore
Power Tariff Rebate
Tariff Rebate on new HT connection @Rs. 1/- per unit for a period of 5 years for green field projects.
Electricity Duty Rebate
Investor can demand for electricity duty exemption under customized package for mega projects with an investment of more than INR 100 Crore