§1Who it is for

  • New manufacturing MSMEs starting production on or after 24 Feb 2025; existing units doing expansion/diversification/technology upgradation

Useful if

New small manufacturing units in MP

Do not spend time on it if

Traders and services not covered by a special package

§2Eligibility

  1. Manufacturing MSMEs (MSMED Act definition); services only where policy gives a special package
  2. Ineligible activities in Annexure-1 (e.g. trade, tobacco, pan masala, stone crushers, mining, oil refining, sawmills, wood charcoal, stand-alone printing, cement below Rs 50 crore P&M)
  3. Expansion: new investment at least 30% or Rs 1 crore (P&M up to Rs 10 crore) / 30% or Rs 10 crore (above), whichever less; unit must remain MSME
  4. Must meet employment conditions of MSME Development Policy 2021
  5. Choose only one state policy unless a policy says it is additive

§3Benefits

  • P&M up to Rs 10 crore: 40% of eligible investment (P&M + building + listed items) as Industrial Development Subsidy, paid in 4 equal yearly instalments
  • +2% per year for 4 years for women/SC/ST units (2.5% for SC/ST women); +2%/yr for exports 25–50% of sales, +3%/yr for exports above 50%
  • P&M above Rs 10 crore up to medium limit: up to 40% Investment Promotion Assistance in 7 equal yearly instalments, with multipliers

§4Norms — pattern of assistance

  1. Building cost counted up to 100% of P&M cost (200% for pharma)
  2. Multipliers (above Rs 10 crore): gross supply value max 1 (needs 40% capacity use in year 1); export 1.0–1.3; employment 1.0–1.5 (100 to 2,500 employees); priority block 1.3; FDI 1.1–1.2
  3. Renewable plant cost counted up to 20% of P&M+building if at least 50% power used captively
  4. Total assistance cannot exceed fixed capital investment

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Apply online to DTIC; District Level Assistance Committee (Collector chair) decides up to Rs 10 crore P&M; State Level Empowered Committee (Chief Secretary) above

§7Pros and cons

Merits

  • Simple 40% capital-type subsidy for small units, paid in 4 years (Policy 7.1.1)
  • Extra percentage for women/SC/ST and exporters (Policy 7.1.1)

Demerits

  • Above Rs 10 crore, assistance shrinks if capacity use falls below 40% (Policy 7.1.2)
  • Priority-block list sits with DIPIP, not in the MSME policy (Glossary xxii)

→Related schemes

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Sources

  1. Madhya Pradesh MSME Development Policy 2025 (Dept of MSME, GoMP)
  2. Madhya Pradesh MSME Protsahan Yojana 2025 (Hindi scheme document)
  3. Dept of MSME, MP — Policies page

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.