Madhya Pradesh Unveils Comprehensive Policies to Boost MSMEs, Startups, and Infrastructure Development

On February 18, 2025, the Madhya Pradesh government announced a series of innovative policies aimed at promoting Micro, Small, and Medium Enterprises (MSMEs) and invigorating other key sectors. A notable initiative is the new policy for undeveloped land allocation, designed to support eligible projects with government guidance and assistance. This includes provisions for flats if land is unavailable and emphasizes a transparent online application process with land allotment through e-bidding.

To stimulate the energy sector, the state has introduced ambitious targets and subsidies. Investors committing over ₹10 crore will receive a 40% subsidy, with higher benefits for specific groups: 48% for scheduled castes, scheduled tribes, and women-led industries, and 52% exclusively for women. This initiative aims to integrate these groups into MSME industries and foster development in regions lacking industrial establishments.

The Cabinet has also approved a startup policy with the objective of doubling the number of startups from the current 5,000 to 10,000. Mega incubation centers will be established to provide loan assistance, market access, and other support to encourage innovation and growth. Additionally, a Startup Advisory Council will be formed to oversee these initiatives.

In tourism, particularly religious tourism, the government has outlined a policy to develop airports every 150 km and helipads every 45 km. This strategy is expected to boost employment through pilot training and air cargo facilities.

To address the ongoing water crisis, the Tapti Mega Recharge Project is set to construct a 273 km long canal to replenish groundwater with 11.76 million cubic meters of water. This project will benefit 123,000 hectares in Burhanpur and Khandwa districts, improving agriculture, water sources, and groundwater levels, particularly aiding farmers in Khandwa district who face regular water shortages.

Plans are also underway to transform cities like Bhopal, Gwalior, Indore, Ujjain, and Jabalpur into model electric cities. This includes a significant push for electric vehicles with discounts on registration fees for various vehicle categories and support for establishing charging stations, particularly by women and individuals with disabilities.

Furthermore, a new policy enables groups, including farmers, to develop townships with government cooperation. This initiative encourages investment and planned development through land pooling, offering affordable housing subsidies and project approvals from authorized committees at district and state levels.

These comprehensive measures aim to foster sustainable growth, enhance infrastructure, and improve the overall quality of life in Madhya Pradesh.