Industrial Promotion Policy 2025 & MSME Development Policy 2025 · Effective 24 Feb 2025
Madhya Pradesh Industrial Promotion Policy (IPP) 2025 Subsidy Advisory for Large & Mega Units
Under IPP 2025, a Large unit claims a capital subsidy of 10% to 40% on eligible capex (cap Rs 200 Cr), plus green, infrastructure, IPR and export-freight support. A Mega unit, classified by sector-specific thresholds (beyond Rs 75 Cr, Rs 250 Cr or Rs 500 Cr), is conferred a Customized Package by the CCIP, over and above those benefits. Bizastra’s CA team handles eligibility, EFCI structuring, filing and disbursement.
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Capital subsidy (Large units)
Capital subsidy cap
Mega unit threshold (P&M)
Equal disbursement tranches
Overview
What Is the Industrial Promotion Policy (IPP) 2025?
IPP 2025 is Madhya Pradesh’s Industrial Promotion Policy, effective from 24 February 2025. It supports two scales of unit. Large units receive a fixed set of benefits led by a capital subsidy of 10% to 40% on eligible capex, capped at Rs 200 Cr. Mega units, classified by sector-specific investment thresholds (beyond Rs 75 Cr, Rs 250 Cr or Rs 500 Cr), additionally receive a Customized Package conferred by the CCIP, over and above the Large-unit benefits. In both cases, disbursement is released in 7 equal tranches.
Choose Your Tier
Large Unit vs Mega Unit Under IPP 2025
Both tiers fall under the same policy. The tier depends on your investment scale, and it changes how your benefits are set.
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Feature
Large Unit
Mega Unit
Who qualifies
Units classified as Large units under IPP 2025
Units meeting the sector-specific Mega threshold - investment
beyond Rs 75 Cr, Rs 250 Cr or Rs 500 Cr
Core benefit
Capital subsidy of
10% to 40%
on eligible capex, cap
Rs 200 Cr
All Large-unit benefits,
plus a Customized Package by the CCIP
(over and above)
In-house R&D in EFCI
Up to
100%
of P&M and factory buildings
Up to
50%
of P&M and factory buildings
How benefits are set
Fixed benefit slabs under the policy
Negotiated Customized Package conferred by the CCIP
Disbursement
7 equal tranches
7 equal tranches
| Policy / Scheme | Benefit | Applicability |
|---|---|---|
| Industrial Promotion Policy (2025) | Up to 40%–60% Capital Subsidy on FCI | Large & Mega Units; Expansion, Diversification, Technology Upgradation |
| MSME Development Policy (2025) | 40%–60% subsidy for MSME units in thrust sectors | Food, Pharma, Textile, Apparel, Medical Devices |
| MP Logistics Policy (2025) | Up to 30% of investment, maximum ₹5–75 crore depending on project size. | New logistics & warehousing projects in MP with investment ≥ ₹125 crore, for non-agricultural / industrial goods. |
| MP Export Promotion Policy (2025) | 5% interest subsidy, 50% freight & documentation support, 25% infrastructure aid, ₹10 L RCMC, 10% export incentive. | Large Manufacturing Industries exporting over 25% of their production from Madhya Pradesh. |
| IT, ITeS & ESDM Promotion Policy (2023) | CAPEX Assistance 25%–40% (+2% for women entrepreneurs) | IT/ITeS, ESDM units (new and expansion) |
| Tourism Policy (2024) | 15%–40% capital subsidy & grants | Hotels, Resorts, Heritage Units, Ropeways, Cruises |
Choose Your Tier
Large Unit vs Mega Unit Under IPP 2025
Both tiers fall under the same policy. The tier depends on your investment scale, and it changes how your benefits are set.
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Feature
Large Unit
Mega Unit
Who qualifies
Units classified as Large units under IPP 2025
Units meeting the sector-specific Mega threshold - investment
beyond Rs 75 Cr, Rs 250 Cr or Rs 500 Cr
Core benefit
Capital subsidy of
10% to 40%
on eligible capex, cap
Rs 200 Cr
All Large-unit benefits,
plus a Customized Package by the CCIP
(over and above)
In-house R&D in EFCI
Up to
100%
of P&M and factory buildings
Up to
50%
of P&M and factory buildings
How benefits are set
Fixed benefit slabs under the policy
Negotiated Customized Package conferred by the CCIP
Disbursement
7 equal tranches
7 equal tranches
| Policy / Scheme | Benefit | Applicability |
|---|---|---|
| Industrial Promotion Policy (2025) | Up to 40%–60% Capital Subsidy on FCI | Large & Mega Units; Expansion, Diversification, Technology Upgradation |
| MSME Development Policy (2025) | 40%–60% subsidy for MSME units in thrust sectors | Food, Pharma, Textile, Apparel, Medical Devices |
| MP Logistics Policy (2025) | Up to 30% of investment, maximum ₹5–75 crore depending on project size. | New logistics & warehousing projects in MP with investment ≥ ₹125 crore, for non-agricultural / industrial goods. |
| MP Export Promotion Policy (2025) | 5% interest subsidy, 50% freight & documentation support, 25% infrastructure aid, ₹10 L RCMC, 10% export incentive. | Large Manufacturing Industries exporting over 25% of their production from Madhya Pradesh. |
| IT, ITeS & ESDM Promotion Policy (2023) | CAPEX Assistance 25%–40% (+2% for women entrepreneurs) | IT/ITeS, ESDM units (new and expansion) |
| Tourism Policy (2024) | 15%–40% capital subsidy & grants | Hotels, Resorts, Heritage Units, Ropeways, Cruises |
What Counts
What Qualifies as Eligible Fixed Capital Investment (EFCI)?
| # | Component of Eligible Fixed Capital Investment (EFCI) |
|---|---|
| 1 | Plant and Machinery |
| 2 | Factory sheds and Buildings |
| 3 | In-house R&D - 100% of the cost of establishing in-house R&D is considered under EFCI, capped at 40% of P&M and factory buildings for Large units (and 50% for Mega units) . |
| 4 | 50% of the cost of captive power based on renewable energy |
| 5 | 20% of the cost of energy saving devices like WHRS and Co-generation systems |
Eligible Benefits
IPP 2025 Benefits (Large Units, and the Mega-Unit Floor)
These are the standard IPP 2025 benefits for Large units. Mega units receive these as a floor, and can demand more through the Customized Package.
| Benefit | What you get |
|---|---|
| Capital Subsidy, Industrial Promotional Subsidy (IPA) | Between 10% and 40% on the eligible capex, up to a cap of Rs 200 Cr |
| Additional Multipliers for New Units | Export, Employment and FDI multipliers. These are over and above the capital subsidy |
| Green Industrialization Assistance | Capital subsidy of 50%, maximum Rs 10 Cr, for setting up ETP, STP, pollution control devices and Zero Liquid Discharge (ZLD) |
| Infrastructure Development Assistance | 50% assistance, maximum Rs 5 Cr, for developing power, water, gas pipeline, road, drainage and sewage infrastructure up to the factory gate |
| Assistance for IPR and Organic Certification | IPR assistance: 100% reimbursement of expenses, maximum Rs 10 Lakh per unit, for filing patents, copyrights, trademarks, etc. |
| Export Freight Subsidy for Transportation of Goods | 50% reimbursement, up to Rs 40 Lakh per unit per year, for 5 years, maximum Rs 2 Cr |
| Policy / Scheme | Benefit | Applicability |
|---|---|---|
| Industrial Promotion Policy (2025) | Up to 40%–60% Capital Subsidy on FCI | Large & Mega Units; Expansion, Diversification, Technology Upgradation |
| MSME Development Policy (2025) | 40%–60% subsidy for MSME units in thrust sectors | Food, Pharma, Textile, Apparel, Medical Devices |
| MP Logistics Policy (2025) | Up to 30% of investment, maximum ₹5–75 crore depending on project size. | New logistics & warehousing projects in MP with investment ≥ ₹125 crore, for non-agricultural / industrial goods. |
| MP Export Promotion Policy (2025) | 5% interest subsidy, 50% freight & documentation support, 25% infrastructure aid, ₹10 L RCMC, 10% export incentive. | Large Manufacturing Industries exporting over 25% of their production from Madhya Pradesh. |
| IT, ITeS & ESDM Promotion Policy (2023) | CAPEX Assistance 25%–40% (+2% for women entrepreneurs) | IT/ITeS, ESDM units (new and expansion) |
| Tourism Policy (2024) | 15%–40% capital subsidy & grants | Hotels, Resorts, Heritage Units, Ropeways, Cruises |
For Mega Units
The Customized Package Conferred by the CCIP
A Mega unit is conferred a Customized Package by the CCIP (Cabinet Committee for Investment Promotion). This means additional benefits and incentives can be demanded from the CCIP, over and above the benefits conferred to Large units under the IPP Scheme 2025. Because the package is negotiated, the outcome depends on how strongly the investment, employment, export and FDI case is built and presented.
How You Are Paid
How Is the IPP 2025 Subsidy Disbursed?
For both Large and Mega units, the disbursement is released in 7 equal tranches. Bizastra maps each tranche to your compliance milestones so nothing is delayed or left unclaimed.
How We Help
How Bizastra Handles Your IPP 2025 Claim
Classify and Assess
We confirm whether you qualify as a Large unit or for Mega units (sector-based thresholds beyond Rs 75 Cr, Rs 250 Cr or Rs 500 Cr) and map the benefits that apply.
Structure EFCI and the Case
We build your EFCI across plant and machinery, buildings, in-house R&D, renewable captive power and energy-saving devices. For Mega units we also prepare the CCIP Customized Package case.
File, Negotiate and Disburse
We file, negotiate the Customized Package where applicable, and manage compliance through to disbursement across the 7 tranches.
Why Bizastra
CA-Led Subsidy Advisory, End to End
Policy specialists
We work on IPP 2025 for Madhya Pradesh and MIISP 2025 for Maharashtra day in, day out, so the fine print holds no surprises.
We build the CCIP case
For Mega units, a Customized Package is negotiated, not automatic. We prepare the arguments that justify incentives over and above the floor.
Nothing left unclaimed
We structure your EFCI and map every support head, capital subsidy, multipliers, green, infrastructure, IPR and export freight, so you claim the full entitlement.
CA certification in-house
Calculations and certifications are handled by our own CA team, which keeps your file clean and fast.
Check If Your Project Qualifies for IPP 2025
Send us your investment plan and our CA team will confirm your tier, the benefits you can claim, and, for Mega units, your Customized Package strategy.
Frequently Asked Questions
IPP 2025: Common Questions Answered
What is the Industrial Promotion Policy (IPP) 2025?
IPP 2025 is Madhya Pradesh’s industrial incentive policy, effective from 24 February 2025. Large units get a capital subsidy of 10% to 40% on eligible capex, capped at Rs 200 Cr, plus multipliers, green, infrastructure, IPR and export-freight support. Mega units, with plant and machinery above Rs 500 Cr, are conferred a Customized Package by the CCIP, over and above the Large-unit benefits. Disbursement is in 7 equal tranches.
How much capital subsidy can a Large unit get?
A Large unit can receive a capital subsidy of between 10% and 40% on the eligible capex, subject to a cap of Rs 200 Cr, released in 7 equal tranches.
What is a Mega unit and the Customized Package?
A Mega Scale Industrial unit is classified by sector-specific investment thresholds – investment beyond Rs 75 Cr, Rs 250 Cr or Rs 500 Cr depending on the sector (such as thrust and high-potential sectors). Mega units are conferred a Customized Package by the CCIP, the Cabinet Committee for Investment Promotion, meaning additional incentives can be demanded over and above the benefits conferred to Large units.
What counts as Eligible Fixed Capital Investment (EFCI)?
EFCI includes plant and machinery, factory sheds and buildings, in-house R&D (100% of the R&D cost is considered under EFCI, capped at 40% of P&M and factory buildings for Large units and 50% for Mega units). 50% of the cost of captive power based on renewable energy, and 20% of the cost of energy saving devices like WHRS and co-generation systems.
What other benefits does IPP 2025 offer?
Export, Employment and FDI multipliers for new units, Green Industrialization Assistance of 50% up to Rs 10 Cr, Infrastructure Development Assistance of 50% up to Rs 5 Cr, IPR assistance of 100% up to Rs 10 Lakh per unit, and an Export Freight Subsidy of 50% up to Rs 40 Lakh per unit per year for 5 years, capped at Rs 2 Cr.
How is the subsidy disbursed, and when did IPP 2025 start?
The disbursement is released in 7 equal tranches. The Industrial Promotion Policy 2025 is effective with effect from 24 February 2025.