Are you IT/BPO/KPO or electronic manufacturing unit planning to set up in Madhya Pradesh? Here is some of key benefits of MP government giving since 2016 to boost start up eco system.
1. Coverage
-Information Technology(IT)
-Information Technology Enabled Services(ITeS)
-Electronic System Design and Manufacturing
2. Benefit:-
a. Land related benefits-
-25% to 75% rebate on Cost of Land is given depending upon type of applicant , Purpose for which the land is been used and terms of allotment
-Concessional Rate land is available as per type of applicant
-IT/ITeS/ESDM units and the Developers of ‘IT Investment Area’ would be permitted to avail an FAR of up to 2.5 or the maximum permissible FAR as per the Development Plan of that area, which ever higher
b. INTEREST SUBSIDY
| Type of Unit | Interest subsidy |
| For IT/ITeS | -Interest subsidy of 5% of term loan on the interest recovered or the actual rate charged by the lender on term loan, whichever is lower.
-Maximum Amount of 50 Lakhs, over the -period of 7 years and 12 lakhs in an year |
| For ESDM units (Loan upto Rs 10 Crores) | -Interest subsidy of 5% of term loan on the interest recovered or the actual rate charged by the lender on term loan, whichever is lower
-Maximum amount of Rs. 50 Lakhs , over the period of 5 years |
| For ESDM units Loan (beyond INR 10 Crores) | -For that portion of the loan beyond Ten Crores Interest subsidy of 2% of term loan on the interest recovered or the actual rate charged by the lender on term loan, whichever is lower shall be applicable
-Maximum amount of 3 crores, for maximum period of 5 years Note:- Upto 10 crores calculation shall be as per 2nd box and from 10 crores the calculation shall be as above |
c. CAPITAL SUBSIDY
| Type of Units | Capital subsidy | ||||||||||||
| IT/ ITes | -Capital subsidy of 10% for GFCI(Investment upto INR 2.5 Crores) limited to INR 25 Lakh.
-For GFCI above INR 2.5 Crores, the capital subsidy would be 5% of the incremental GFCI plus INR 25 lakhs for GFCI upto INR 2.5 Crores -The maximum capital subsidy that can be provided would be INR 50 lakhs |
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| ESDM | –Capital subsidy of 50% for GFCI upto INR 10 Crores ESDM limited to INR 5Crore to be paid in 7 years.
–For GFCI above INR 10 Crores the capital subsidy would be 45% of the incremental GFCI plus INR 5Crore for GFCI upto INR 10 Crores to be paid in seven equal annual instalments. -The maximum capital subsidy that can be provided would be INR 150 Crores over a period of seven years. Note:- GST Amount is not included in above calculation |
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| ITes/BPO/KPO (special Pakage)
(Can choose the one given first box or this one) |
Subsidy as given below limited to 75% of the actual capital investment:
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Note:- Gross Fixed Capital Investment(GFCI): means the financial value of the investment made by the unit on the machinery, plant, furniture, building etc. and the transportation, installation and insurance premium of the same, but does not include investment made on dwelling units, cost of land, vehicles, consumables or spares
d.Operational Subsidy
Incentives for operations will be available to the only new BPO/BPM/ITeS units as given below: –
| Population of Town/local body where unit is to be established | Category | Incentive Per Seat (In INR) |
| >10 Lakh | “A” | 7500 |
| <10 lakhs to 1 lakh | “B” | 11000 |
| <1 Lakh | “C” | 14500 |
e. Skill Gap Training(one-time reimbursement)
After completion of the training the unit, application with enclosure of taining cost ,within the period of 3 month from date of completion of training, will be reimburessed :-
| Reimbursement on skill gap training | Eligibility | Maximum Limit |
| Maximum limit of INR 10,000 per employee | 50% of the cost incurred | INR 1 Crore per unit |
f. Incentive on Quality Certifications(only once):
| S.No. | Type of incentives | Eligibility | Maximum amount |
| 1. | CMM/ CMMi/ PCMM | 75% of the cost | INR 6 Lakh |
| 2. | ISO 9001 or an equivalent/ better Certification | 50% of the cost | INR 1 Lakh |
Other benefits like:-
1. Stamp duty and registration charges
2. Patent cost and benefit
3. Marketing Assistance
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