Biotechnology Incentives in Madhya Pradesh

Overview
State Incentives
Important Links
Important Documents
Major Players

Overview

Madhya Pradesh has a well developed ecosystem for Bio-Technology Sector along with pharmaceuticals sectors. Various bio-technology companies have presence in the state

Centrally located with a catchment area of 50% of India's population
Policy catering to needs of Pharma and Healthcare sector
Industrial landbank of 1,20,000 acres out of which 48,000 acres is developed
MP has developed world-class infrastructure including industrial parks, industrial corridors, testing facilities
Availability of skilled workforce, uninterrupted water supply, electricity
Manufacturing facilities at SEZ Pithampur and Pharma clusters in Bhopal, Indore, Dewas, Mandideep
Pharmaceuticals exports stood at US$ 2.8 Billion in FY18-19
110+ institutes providing degree, diploma in pharma courses
Customized package is offered for Investment above INR 25 Cr

State Incentives

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One-Time Incentives
Recurring Incentives

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Land Cost Rebate

MP provides a 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 up to a fixed land size based on 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 instalments
An online calculator is developed to enable industries in calculating exact amount of the subsidy - Click on link for calculator https://invest.mp.gov.in/incentivecalculator

Stamp Duty Exemption

An investor can demand stamp duty exemption under customized package for mega projects with an investment more than INR 25 Crore

Green Industrialisation

Green Industrialization for establishing ETP/STP @50% with a maximum limit of INR 1.00 Cr.

Patent Charges

Patent Charges Reimbursement @100% up-to INR 5 lacs.

Infrastructure Development Subsidy

Infrastructure development subsidy @50% with a maximum limit of INR 1.00 Cr each for Water/ Electricity/ Roads for Private/Undeveloped Govt. Land

Definition - Plant & Machinery, Expansion/Diversification/Technical Upgradation

Plant and Machinery (P&M)

For the purpose of determining eligibility for financial assistance/incentive the P&M means the investment made by the unit in 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 percent 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. An investor can demand Tax incentives under customized package for Mega projects with an investment more than INR 25 Crore

Skill Development/ Training Incentive

Incentives to provide employment to person's 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