Many policies including Industrial Promotion Policy have been approved to develop the state
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Bhopal: The cabinet meeting was held in the ministry on Tuesday under the chairmanship of Chief Minister Dr. Mohan Yadav. The cabinet has approved the Industrial Promotion Policy 2025 to make the state a developed and prosperous state. Under this, 10 sector specific policies such as Agriculture, Dairy and Food Processing Policy, Textile Policy, Apparel, Footwear, Toys and Accessories Policy, Aerospace and Defense Production Promotion Policy, Pharmaceuticals Policy, Biotechnology Policy, Medical Devices Policy, EV Manufacturing Policy, Renewable Energy Equipment Manufacturing Policy and High Value-Add Manufacturing Policy have been approved.
The objective of the Industrial Promotion Policy 2025 is to promote industrial development in Madhya Pradesh and increase the contribution of industries in increasing the state’s current GDP from Rs 2.9 lakh crore to about Rs 6 lakh crore by the year 2030. Develop world-class industrial infrastructure to provide a holistic industrial ecosystem to investors, promote environmentally sustainable industrial growth and balanced regional development, increase employment opportunities in the state, create about 20 lakh new employment opportunities in the next five years with special emphasis on employment-intensive sectors, improve investor facilitation and simplify the process of doing business in the state and prepare a trained workforce for the future by aligning the state’s plans with the needs of the industries. Under this, provisions for investment promotion assistance, general assistance and additional assistance to large and mega level industrial units have been included.
In the Agriculture, Dairy and Food Processing Policy, electricity tariff reimbursement of Rs 1 per unit will be provided for 5 years. Incentive for quality certification, 50% or Rs 5 lakh, whichever is less, will be provided for 5 years. Along with this, food processing units investing more than Rs 75 crore will be eligible for customized package under CCIP.
Under the textile policy, 5 percent interest subsidy facility will be provided on term loan for plant and machinery for a period of 5 years, up to a maximum of Rs. 50 crore. 25 percent financial assistance up to a maximum of Rs. 50 lakh will be provided on setting up of apparel training institute. Also, mega category units investing more than Rs. 500 crore will be eligible for customized package under CCIP.
To encourage employment generation in apparel, footwear, toys and accessories policy, Rs 5,000 per month per employee will be provided for 5 years, for a total period of 10 years. Rs 13,000 per new employee will be provided for training and skill development for 5 years. 5% interest subsidy on term loan, maximum Rs 50 crore will be given. 25% concession in development fee along with 100 percent exemption in stamp duty and registration fee assistance will be given. Rs 1 per unit will be provided as electricity tariff concession for a maximum period of 5 years. Financial assistance of 25 percent assistance up to a maximum of Rs 50 lakh will be provided on setting up apparel training institute. Along with this, mega category units investing more than Rs 75 crore will be eligible for customized packages.
A 25% concession will be given in development fee under the Aerospace and Defence Production Promotion Policy. 50% or Rs 10 lakh, whichever is less, will be reimbursed in the form of quality certification. Also, mega category units investing more than Rs 500 crore will be eligible for customized packages.
50% concession will be given in development fee in renewable energy equipment manufacturing policy. 50% of quality certification cost or Rs 1 lakh, whichever is less, will be reimbursed. Mega category units investing more than Rs 250 crore will be eligible for customized packages under CCIP.
Under the Pharmaceuticals Policy, 50% of the quality certification cost or Rs 1 crore will be provided for 5 years. A slack period of 2 years will be given as incentive on additional investment. 50% of the expenditure incurred in setting up the testing facility will be provided as capital grant up to a maximum of Rs 1 crore. Also, mega category units investing more than Rs 250 crore will be eligible for customized packages under CCIP.
In the Biotechnology policy, 50% of the machinery and building for in-house R&D will be included in EFCI. Capital grant of 50% of the expenditure incurred in setting up the testing facility will be provided up to a maximum of Rs 1 crore. Biotechnology parks will be eligible for the same facilities as private industrial parks. Mega category units investing more than Rs 250 crore will be eligible for customized packages under CCIP.
The Medical Devices Policy will include 50% EFCI for developing R&D facilities. 50% capital subsidy up to a maximum of Rs 1 crore will be provided on setting up of testing facility. Mega category units investing more than Rs 500 crore will be eligible for customized packages under CCIP.
EV manufacturing policy including battery testing will be recognized under EFCI. 50% reimbursement for quality certification or Rs 1 lakh per model, whichever is lower, up to a maximum of Rs 10 lakh will be provided. 25% concession will be given in development fee levied by MPIDC. Mega category units investing more than Rs 500 crore will be eligible for customized packages under CCIP.
Under the High Value-Added Manufacturing Policy, Rs 13,000 per new employee will be provided for 5 years as assistance for training and skill development. Reimbursement of 50% of the quality certification cost or Rs 1 lakh, whichever is less, will be provided. Mega category units investing more than Rs 75 crore will be eligible for customized packages under CCIP.
Approval of “Madhya Pradesh Export Policy-2025” to develop Made in Madhya Pradesh market
Approval was given to implement “Madhya Pradesh Export Policy-2025” to promote the export of the state. This policy encourages developers of export zones to increase the participation of private developers in export infrastructure. Other non-financial assistance provided under the policy and decisions to facilitate ICDs will boost the export of the state. The objective of the policy is to increase the participation of large exporters in the state, promote export diversification, increase export volume and export efficiency, assist export-oriented units in the state to increase their export value, develop the ‘Made in Madhya Pradesh’ market globally and increase employment opportunities in the state.
Export promotion assistance will be provided to large category manufacturing units exporting more than 25% of their production. In this, for the units exporting for the first time, reimbursement of registration cum-membership certification up to a maximum of Rs 10 lakh and export insurance premium up to a maximum of Rs 25 lakh will be provided. As export freight assistance, up to 50% of the expenditure incurred for carrying goods from the factory premises to the port / air cargo / international road route will be reimbursed up to a maximum of Rs 2 crore. Under export infrastructure assistance, 25% of the expenditure incurred on export oriented infrastructure like testing laboratories, research and development centers, export incubation centers etc. will be provided up to a maximum of Rs 1 crore. For the unit exporting from the state, assistance of 10% on incremental free onboard value will be provided up to a maximum of Rs 2 crore as export turnover assistance for 5 years. Under Export Marketing Assistance, 75% reimbursement of expenditure incurred for attending national and international trade fairs, exhibitions and buyer-seller meets will be provided, up to a maximum of Rs. 5 lakh per year. As Export Green Document Assistance, 50% of the expenditure incurred on export documentation cost (CBAM Net-Zero Emission Carbon Offsetting etc.) will be reimbursed up to a maximum of Rs. 20 lakh per year per unit for a period of 5 years. Under Export Financial Assistance, 5% interest subsidy on loan taken will be provided for a maximum of Rs. 50 lakh for 5 years. For HGV sectors (furniture transport, etc.) and goods exported to global market level (electronics machinery, appliances, etc.), additional assistance of 5% of Free Onboard Value, up to a maximum of Rs. 30 lakh per year for a period of 5 years will be provided as Export Development Promotion Incentive Assistance.
Units with minimum 25 acres and more than 70% export oriented units which have exported more than 25% of their production in the last 3 years will be eligible for assistance for Dedicated Export Parks (DEP) developers. This includes 100% reimbursement on stamp duty and registration fee, 50% reimbursement on permanent infrastructure (excluding land and residential units) or Rs 20 lakh per acre, whichever is less, up to a maximum of Rs 40 crore. 25% capital assistance will be provided on common processing facility, maximum Rs 25 crore. In green industrialization, 50% capital subsidy for waste management, maximum Rs 5 crore and capital subsidy assistance of maximum Rs 10 crore will be given for zero liquid discharge.
Under the policy, dedicated export incubation hubs will be created for startups and new exporters to encourage exports. Technical courses will be upgraded with an increase in industry-institute interface in vocational institutes. Partnerships will be made with institutes to provide on-job training to the students of the state. Trade support facility will be established in the state. Priority sector focused special economic zones will be developed for exports. Efforts will be made to develop 20+ Gati Shakti cargo terminals with the cooperation of the central government. Additional MMLPs, air cargo hubs and airports will be developed to enhance storage and transportation infrastructure. Also, training programs on the subject of Open Network for Digital Commerce (ONDC) will be organized at the district level. A targeted program will be launched to assist MSMEs in achieving environmental compliance and obtaining ZED (Zero Defect Zero Effect) certification. A statewide consultation program will be started in collaboration with established entrepreneurs and regional experts. Green Card Scheme will be established for minimum inspection and speedy clearance. The database of exporter-importer units will be updated on the state portal. The Gatishakti portal of the state will be aligned with the National Master Plan.
Approval of ”Madhya Pradesh Logistics Policy 2025”
The Council of Ministers has approved the Madhya Pradesh Logistics Policy 2025 for the development of logistics infrastructure and overall development in the state. The objective of the policy is to develop efficient, sustainable, reliable and favorable logistics infrastructure in the state and to reduce logistics costs in accordance with global benchmarks by the year 2030 and to establish a data-driven decision support system.
Under logistics and warehouse infrastructure, investment assistance will be provided for setting up logistics parks, multi-model logistics parks, inland container depots and dry ports. Under this, a maximum assistance of Rs 50 crore will be given for developing logistics park facility in an area of 25 acres to 75 acres and a maximum assistance of Rs 75 crore for developing it in an area of more than 75 acres. Assistance up to 50%, up to a maximum of Rs 20 lakh, will be provided for warehouse certification for IGBC Green Logistics Park and Gold and Platinum certification. 50% reimbursement of the amount spent for external road/rail infrastructure development (to reach the project site) under the project will be provided up to a maximum limit of Rs 5 crore.
Financial assistance will also be provided for the construction of private freight terminal, Gati Shakti cargo terminal, container freight station and air cargo complex. A maximum assistance of Rs. 5 crore will be provided for construction on an area of 5 to 10 acres, a maximum assistance of Rs. 15 crore for construction on an area of 10 to 50 acres and a maximum assistance of Rs. 25 crore for construction on an area of more than 50 acres.
40% reimbursement of expenditure incurred on upgrading agricultural warehouse to industrial warehouse, up to a maximum of Rs 1 crore will be provided. Also, 50% reimbursement of the amount spent for external road/rail infrastructure development (to reach the project site) under the project, up to a maximum of Rs 3 crore will be provided.
Under general incentives, provision will be made in the prevailing land management rules to allot undeveloped land to warehousing and logistics activities as per collector guideline rates. 100 per cent stamp duty and registration fee (maximum Rs 5 crore) will be reimbursed on purchase of land for setting up logistics hub/park. Along with this, other non-financial assistance like development of green channel for EXIM cargo, fast-track building permission, single window system, permission for 24×7 uninterrupted operations, concession in ground coverage, higher ground coverage up to 70% will be allowed for logistics and warehousing infrastructure.
MP City Gas Distribution (CGD) Policy Network Development and Expansion Policy, 2025 approved
The Council of Ministers decided to implement M.P. City Gas Distribution (CGD) Policy Network Development and Expansion Policy, 2025 for the expansion of City Gas Distribution (CGD) Policy Network in the state. Madhya Pradesh is among the leading states of the country where CGD policy is being implemented. Under the City Gas Distribution (CGD) Policy Network in Madhya Pradesh, piped natural gas will be supplied through pipelines for domestic use, commercial and industrial units. The objective of the City Gas Distribution (CGD) Policy Network is to ensure the availability of clean and affordable fuel for homes and industries. CNG will be supplied as fuel to vehicles through CNG gas stations. This fuel is cheaper than petrol and diesel and has low pollution levels. The objective of this policy is to develop and implement CGD infrastructure in the state quickly. For this, all necessary permissions will be made available within the time limit and the process of land allotment has been clarified.
The use of clean fuel in homes through the policy will improve the health of women and there will be convenience of availability of domestic gas through pipe instead of gas cylinder in homes. This gas will be cheaper than the gas available in cylinder, which will provide economic benefits to various families of the state as well as improve the standard of living. Under the policy, the maximum working days for obtaining various permissions from the District Magistrate through single window system have been fixed as 60 days and maximum working days for permission to lay the pipeline have been fixed as 77 days. Provisions have been made for ease of doing business under Ease of Doing Business. Also, with the aim of promoting CNG vehicles in the policy, one percent lifetime motor vehicle tax exemption will be given. Registration fee of vehicles will remain unchanged. This exemption will be applicable for one year after the implementation of the policy.
Approval of Film Tourism Policy 2025 to make the state a film tourism friendly state
The Council of Ministers approved the Madhya Pradesh Film Tourism Policy 2025 with the objective of making the state a film tourism friendly state and generating maximum investment and employment opportunities through the film industry in the state. Under the Madhya Pradesh Film Tourism Policy 2025, priority has been given to the development of the overall cinema industry, local talents, regional languages, women empowerment and infrastructure development. Under the policy, film shooting permissions have been made under a single window system and included under the Public Service Guarantee Act. To promote local and tribal languages, a provision of 10% additional grant has been made for films based on local languages like Malvi, Bundelkhandi, Baghelkhandi, Nimadi, Gondi, Bhili, Korku. To promote children’s cinema, a special grant of 10% will be given for films based on children’s topics. A provision of 10% additional grant has been made for women-centric films. To promote regional languages, 10% additional grant will be provided for film production in regional languages like Marathi, Bengali, etc. Apart from this, additional grant will be provided for films based on historical, cultural and religious personalities, financial assistance for short films, special grant provision for construction of new single cinema halls and upgradation of existing cinema halls and grant will be provided for documentary films receiving national and international awards.
Special financial grants will be provided to promote film production in the state and to generate employment and economic activities and to attract investment in film production related infrastructure. Grant for feature film is maximum Rs. 2 crore, grant for web series is maximum Rs. 1.5 crore, grant for TV-shows/serials is maximum Rs. 1 crore, grant for documentaries is maximum Rs. 40 lakh, grant for international film is maximum USD 1.3 million (up to INR 10 crore) and grant for short films is maximum Rs. 15 lakh. Financial grant will be given if 75% of the total shooting days are done in Madhya Pradesh.
It is noteworthy that Madhya Pradesh has received the award of ‘Most Film-Friendly State’ in 2022. In the last 5 years, more than 350 film projects have been successfully completed in the state. So far, financial grant assistance of about Rs 21 crore has been given to 10 Hindi feature films, 1 Telugu feature film and 4 webseries. In the past years, an estimated Rs 700 crore has been spent in the state by various film projects filmed in the state and more than one lakh fifty thousand temporary employment days have been created. Famous and popular film projects like Bhool Bhulaiyaa-3, Sixer, Love Ki Arrange Marriage, Gullak, Dhadak-2, Stree, Panchayat, Kota Factory, Ponniyin Selvan, Citadel (Honey Bunny), Auron Mein Kaha Dum Tha, Donkey, Patna Shukla, Tiwari, Fukrey 3, The Railway Man, Selfie, Lapata Ladies, Yudh, and Zara Hatke Zara Bachke have been filmed in the state.
Approval of Tourism Policy 2025 to establish the state as the best tourist destination
The Council of Ministers has approved the Tourism Policy 2025 to establish the state as the best tourist destination. Its objective is to provide global recognition to the cultural, historical and natural heritage of the state. Along with this, by building world-class infrastructure at tourist places, tourists are to be provided an unforgettable experience. Under the policy, construction of golf, convention center, wellness resort, cruise, inter-state air service, heritage hotel, ropeway, museum, light and sound show etc. will be encouraged.
Under the policy, Ultra Mega Projects (investment more than Rs. 100 crore) will be directly allotted departmental land available for 90 years at collector guideline rate. Capital grant of 15% to 30% upto a maximum of Rs. 90 crore will be provided for tourism projects at any place in the state. An additional grant of 5% will be given to encourage electric cruises. An additional grant of 5% will be provided for setting up tourism projects in remote and inaccessible new areas. Investment promotion cell has been set up in Madhya Pradesh Tourism Board. Land parcels, road facility centres and heritage properties will be allotted to private investors through a transparent process. Special grant will be given for wildlife resorts. Tourism projects will be set up by investing in undeveloped new areas with tourism potential. The path of private investment will be paved by developing areas with new tourism potential.
Investors will be able to obtain permissions/no objections from various departments for setting up tourism projects through single window system within the time limit. The permissions/no objections required for setting up tourism projects have been notified in the policy along with the time limit. Under the concept of ease of doing business, permissions/no objections will be brought under the Public Service Guarantee Act. Private investment will be given on contract under the Public Private Partnership (PPP) model to promote golf tourism. Private investors will be allowed to use a maximum of 10 percent of the departmental land on sub-lease for commercial use for setting up golf tourism. Land of equivalent value can be made available in lieu of the reduced land to the allotted road facility center. Rest houses, guest houses, dock bungalows, circuit houses etc. of Narmada Valley Development Authority, Water Resources Department, Public Works Department will be leased to private investors for setting up tourism projects. Startup entrepreneurs will get an opportunity to participate in tenders.
Approval of 292 acres of land for aircraft operation in Shivpuri
The cabinet has approved 292 acres of land to AAI for operating ATR-72 aircraft at the government airstrip in Shivpuri. For this, it has been decided to acquire the land and pay compensation.
It is noteworthy that Shivpuri city of Madhya Pradesh state is very important from a historical and tourism point of view, where Madhav and Kuno National Park is located. Kuno is known not only in the country but also at the international level. A large number of tourists from India and abroad visit Shivpuri. Flight operations in Shivpuri will facilitate the movement of tourists.
Approval of scheme for implementation of Pumped Hydro Storage Projects
The Council of Ministers has approved the “Plan 2025 for implementation of Pump Hydro Storage Projects in Madhya Pradesh”. It is noteworthy that the development of pump hydro storage projects is important as the energy obtained from solar and wind energy sources is not of permanent nature. A capacity of 96 thousand MW is available in the country against which only 8 pump hydro storage projects are currently ready. This project is mainly of three types, on stream PSP, semi off stream and off stream PSP. Four categories have been prescribed for site allocation of pump hydro storage project.