Madhya Pradesh Industrial Promotion Policy 2025: what large manufacturers can claim

Madhya Pradesh notified its Industrial Promotion Policy 2025 (IPP 2025) in February 2025, backed by the Investment Promotion Scheme 2025 that governs how incentives are delivered to large and mega manufacturing units. For a capital-heavy manufacturer, the benefits can be substantial — and non-dilutive.

The headline incentive

Basic Investment Promotion Assistance (BIPA) of up to 40% of Eligible Fixed Capital Investment (EFCI), disbursed over several years, with sector-specific multipliers and an FDI multiplier that increases the benefit for units carrying higher foreign equity.

Beyond the capital subsidy

• Interest subsidy on term loans.
• Power tariff rebates on manufacturing operations.
• Capital subsidy of up to 50% (₹5–10 crore) for effluent treatment and pollution-control systems.
• Assistance of up to 50% (max ₹5 crore) for infrastructure up to the factory gate.

Focus sectors

The policy targets sectors including renewable energy, electric vehicles, pharmaceuticals and medical devices, textiles and apparel, engineering, biotechnology and high-value-added manufacturing — with sharper incentives for designated focus sectors.

The catch

Benefits hinge on how EFCI is computed, exactly which plant and machinery qualifies, and claiming at the right stage of the project. Getting the structure and documentation right up front is what separates a sanctioned claim from a rejected one.

Figures here are indicative and follow the current policy notification, which can change. We map your project to the policy, structure the EFCI and run the claim through to disbursement. Our subsidies practice →