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