1

Industrial Promotion Policy, 2014

and Action Plan

Government of Madhya Pradesh

Department of Commerce, Industry & Employment

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 INDEX

No. Subject Page No.

1. Madhya Pradesh as a favoured industrial destination 1

2. Vision 2
3. Eligibility 4
4. Improving business climate by enhancing ease of doing business 4
5. Inclusive growth 8
6. Industrial infrastructure – The Growth Engine 10
7. Skill development 12
8. Green industrialization 13
9. Promotion of ancillarization to develop local vendors 14
10. Fiscal assistance 14
11. Expansion/Diversification/technical up-gradation 21
12. Revival of sick units 21
13. Relief for financially constrained units 22
Annexure-I 24
'Special Package, 2014' of facilities to be extended by Government of
M.P. on restarting of sick/closed industrial units after acquisition/
purchase
Annexure -II 27
'Policy Package, 2014' of financial and other concessions to be extended
to the sick industrial units in the state
Annexure- III 29
REVIVAL SCHEME FOR SICK SMALL SCALE INDUSTRIAL
UNITS (Madhya Pradesh Small Scale Industries Revival Scheme-2014)
Annexure -IV 39
List of ineligible industries

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 Government of Madhya Pradesh
Department of Commerce, Industry & Employment

Industrial Promotion Policy, 2014 and Action Plan

1. Madhya Pradesh as a favoured industrial destination

Madhya Pradesh (MP) is amongst the leading states in India both in terms of
area and population. The state has gained a significant position in the country
based on investment and economic growth. Over the years, the state has developed
a robust infrastructure, favourable policy environment & industrial growth centres,
which has expedited the growth of industrialization. As a result, Madhya Pradesh’s
state domestic product grew at a CAGR of 10.3% during 2007-08 to 2012-13
whereas India’s GDP grew at a CAGR of 7.15% during the same period.
The state has been at forefront in promoting industrial growth by offering
gamut of incentives to promote rapid industrialization, and is able to harness its
strengths to expand its economy with the support of conducive policies. State has
identified thrust sectors including Auto and auto components, Textiles, Tourism,
IT/ITEs, Healthcare, Skill development, Pharmaceutical, Renewable energy,
Biotechnology and Logistics & warehousing which provide the required impetus
to the economic growth.
MP is centrally located and has excellent connectivity across major cities of
the country. It has a total road network of 58,423 kms with 20 national highways
passing through the state. The state is well connected with rail services to all major
cities and also to international export markets via Jawaharlal Nehru Port in
Mumbai and Mundra Port in Gujarat. The Delhi Mumbai Industrial Corridor
(DMIC) passes through 10 districts of the state, which enhances high-speed access
to ports and Northern & Western markets of India.
MP provides a peaceful labour force and stable industrial environment. The
state has large number of engineering colleges (224), polytechnics (114), ITIs
(415), and other vocational training institutes to ensure availability of skilled
manpower across various sectors in different regions of the state.
The state has developed a strong pipeline of investments during the last five
years and would continue to attract more investors by developing an enabling
industrial eco system which would lead to sustainable industrialization and ensure
economic prosperity of the state

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2. Vision
To achieve inclusive growth and bring economic prosperity to the people of
Madhya Pradesh through sustainable industrialization, employment
generation and skill set enhancement.
2.1 Objectives of Industrial Promotion Policy
The key objectives of the Industrial Promotion Policy 2014 are :
i. Rationalization and simplification of procedures to ensure
effective implementation of policy
ii. To improve investor facilitation and enhance ease of doing
business
iii. To create an enabling environment for robust industrial growth
iv. To achieve higher and sustainable economic growth by
accelerating the growth of manufacturing and service sectors
through private sector participation
v. To create an able and supportive regulatory and policy
environment to facilitate private sector participation
vi. To achieve inclusive industrial infrastructure development in the
state
vii. To promote environmentally sustainable industrial growth and
balanced regional development
viii. To enhance employment opportunities in all sectors
ix. To encourage growth in Madhya Pradesh’s thrust sectors
(Agribusiness and Food processing, Textiles, Automotive and
Auto components, Tourism, Pharmaceuticals, Bio-technology,
IT/ITeS, Healthcare and Logistics & Warehousing)
x. To encourage environment friendly practices in enterprise
development
xi. To provide a welcoming and facilitative atmosphere to
entrepreneurs, industrialists and investors.

2.2 Strategy for promotion of Industries

The state has prepared a strategic roadmap to achieve the policy
objectives through a combination of both fiscal and non-fiscal

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interventions. These policy interventions shall enhance the industrial
competitiveness resulting in substantial increase of private sector
investment in the state.
The key measures are aimed at:
i. Creating level playing environment for all investors by
enhancing the facilitation mechanism enabling them to conduct
their business with ease;
ii. Strengthening of the Single Window System to make it more
effective under the provisions of the Madhya Pradesh
Investment Facilitation Act 2008;
iii. Providing competitive fiscal incentives and exemptions to
attract investment;
iv. Providing support to the investors in making government and
private land available for industrial projects across different
scales of investments;
v. Upgrading of industrial infrastructure in existing industrial
growth centres;
vi. Promoting ancillarization to strengthen local vendors
vii. Enhancing the employability of youth by focused skill
development efforts;
viii. Strengthening the MSME sector through an attractive package
of incentives & concessions;
ix. Ensuring harmony between private sector investors and local
citizens through an enhanced dispute settlement mechanism;
x. Promoting thrust sectors through sector specific promotion
policies;
xi. Establishing a 'Land Bank' bearing in mind future requirements
of land for industries;
xii. Developing world-class infrastructural facilities for industries
with active participation of the private sector;
xiii. Providing appropriate provisions for the protection of the
environment and encouraging water conservation measures in
industry through go-green strategies.

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 xiv Promoting industrial parks for clusters development of similar
micro and small scale industries in regions of the State which
are rich in raw material being used in that particular industry.

3. Eligibility
i. This policy shall come into effect on the date of its notification in the
GoMP official gazette and will remain in force till it is amended or
superseded by the Government.
ii. Investors shall have to register their proposal with the Single Window
System developed by MPTRIFAC and obtain a registration number to
avail incentives under this policy. This registration number will be
trackable online, so that investor will be able to locate the status of his
proposal at any given time.
iii. Units for which any package of incentives has already been
sanctioned under IPP 2010 or earlier policies or for which the
Commercial Production has commenced before the notification of
this policy, shall not be eligible for benefits under this policy but will
be entitled for benefits under IPP 2010 or earlier policies, as the case
may be
iv. Units commencing Commercial Production after notification of this
policy, but within one year from the terminal date of Industrial
Promotion Policy (IPP), 2010 (i.e. upto 31st Oct, 2016), shall be at
liberty to choose a package of incentives under the current policy or
IPP 2010. However, choice once made will be irreversible.
v. Units which are not covered by clause 3(iii) and 3(iv) shall be eligible
to avail benefits only under this policy.

4. Improving business climate by enhancing ease of doing

business
The policy aims to improve the business environment in Madhya Pradesh by
continuing to bring in regulatory reforms and simplify procedures across
various departments in the state.
4.1 Strengthening the Single Window System
4.1.1 ‘Investment Relationship Managers’ shall be appointed for
speedy implementation of investment proposals.

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 These Investment Relationship Managers will be specifically
designated to individual investors on case by case basis
depending on total quantum of investment and nature of the
project. This facility will not be applicable to the projects under
Negative List.
4.1.2 Madhya Pradesh’s Single Window System will be further
strengthened and made more effective to facilitate private
sector investments
4.1.3 An online Investor Monitoring and Facilitation System shall be
launched to provide a single point interface for investors and a
time bound clearance mechanism for approvals.
4.1.4 Single Window System shall be a repository for information
regarding state’s infrastructure, information about investment
application processes and grievance redressal.
4.1.5 The Single Window System provides a transparent one stop
solution for all investors by reducing the need to physically
interface with various department authorities
4.1.6 To ensure effective implementation of Single Window System,
District Trade and Industry Centre (DTIC) shall be
strengthened by modernization of technology, and capacity
building for the staff.
4.1.7 18 services from various departments have been automated for
which clearance/permission can be given from the system
itself.
4.1.8 The state single window clearance mechanism will inter-alia
incorporate the following features such as
 SMS/email alert to the investors
 Linking with Labour Department, MP Power distribution
companies, Water resources department, Revenue
Department and District Collectors.
 Payment gateway
 MIS dashboard

4.1.9 The portal will also act as a platform for information

dissemination and will provide all information relating to rules,
regulations and orders that effect investment decisions or
investment implementation in the state

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4.2 Cabinet Committee on Investment Promotion (CCIP)
4.2.1 CCIP has been constituted with Chief Minister as Chairman
and Ministers of Finance, Commercial Taxes and Industries
Department as members. The CCIP has authority to deal with
all issues relating to Industrial promotion. The CCIP is fully
empowered to sanction a customized package of assistance
beyond what has been explicitly provided in this policy. Such
packages shall be available only to Mega Scale Industrial
Units.
4.2.2 As part of the special package, CCIP can sanction fiscal
concessions, tax exemptions, government dues and royalty
deferments and any other incentives.
4.2.3 CCIP is also empowered to remove difficulties in the
implementation and interpretation of this Policy.
4.2.4 On the request of Investors or on its own motion, CCIP may
review incentive packages sanctioned to any Mega Scale
Industrial unit.
4.2.5 TRIFAC will act as the Secretariat for CCIP and will be the
nodal agency for providing these incentives.

4.3 State Level Empowered Committee

4.3.1 SLEC will be headed by the Chief Secretary and shall consist
of Principal Secretary Commercial Tax department, Principal
Secretary Commerce, Industry & Employment department,
Principal Secretary Finance department. Managing Director
Madhya Pradesh Trade and Investment Facilitation Corporation
Limited shall be the ex-officio Secretary of the Committee.
4.3.2 Inter departmental coordination, monitoring of investment
proposals and approving incentive release within the over all
customised packages sanctioned by CCIP for Large and Mega
Scale Industrial Units shall be taken by the Empowered
Committee. MD TRIFAC shall be empowered to disburse
incentives once they have been approved.

4.3.3 For ensuring speedy implementation and timely approvals of

investment proposals, the rules and procedures under the
Madhya Pradesh Investment Facilitation Act, 2008 shall be
streamlined.

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 4.3.4 The District Level Committee (DLC) shall be made more
effective and empowered to decide on issues including the
sanction and disbursement of incentives under approved
policies for MSMEs in the state.

4.4 Regulatory Simplification

The state has already undertaken various initiatives to make the
investment climate more investor friendly. Wherever necessary,
effective action shall be taken for refining the business regulatory
processes and strengthening the supportive institutional framework.
4.4.1 An inventory of legal and procedural requirements of various
departments for doing business in the state has been
consolidated.
4.4.2 The regulations, procedures, approvals, permissions, licenses
shall be further rationalized to reduce redundancy.
4.4.3 Non-polluting SMEs shall be exempted from getting their
units to be certified by the State Pollution control board.
4.4.4 The pollution control board shall issue the revised certificate
once in every 3 years to polluting units.
4.4.5 The state shall ensure that all benefits of the State Investment
Promotion Policies to be notified by various concerned
departments within 3 months of policy notification date.
4.4.6 The state shall consider empowering the DTICs to approve
clearance or changes in maps of factories/industries.
4.4.7 75% of the eligible amount against the total VAT & CST paid
by the investor every year shall be reimbursed on submission
of the tax deposit certificate issued by the Commercial Tax
department. The remaining 25% of the eligible amount shall
be reimbursed after the assessment is done by the
Commercial Tax department.
4.4.8 The state shall consider empowering the DLCs to approve all
claims that are sent by MSMEs in the state
4.4.9 ‘Land Bank’ shall be established in the state for industrial
purposes by identifying suitable government/ private lands

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 4.4.10 Online Application and Land Allotment system shall be
launched to fasten the land allotment process.
4.4.11 MP TRIFAC will function as the Single window for all
application procedures & online application system.

4.5 State Industry Advisory Council

4.5.1 The State Industry Advisory Council has been constituted
under the chairmanship of the Chief Minister to strengthen
public private dialogue and advise on industry trends, policy
suggestions and regulatory reforms.
4.5.2 The State Minister for Commerce and Industry is the deputy
chairman of the Council. The State Finance Minister and the
Ministers for Energy, IT, Urban Development & Environment,
Agriculture, Horticulture and Food Processing, along with the
Vice Chairman State Planning Board are members.

5. Inclusive growth
The state government intends to focus on MSMEs for achieving a holistic
industrial growth. The following steps have been undertaken by the state
government:
 Incentivizing MSME to enhance their competitiveness for achieving
higher growth
 Targeted skill development programs to address manpower requirements
of MSMEs
 Development of new industrial clusters with adequate infrastructural
facilities to meet futuristic demands of the cluster
 Uplifting infrastructure facilities of existing industrial clusters to fulfil
growing needs of ancillary units
 Encourage ancillarization by promoting establishment of new vendor
units in close vicinity of mother units

5.1 Cluster based approach

5.1.1 Cluster based approach is increasingly being recognized as
sustainable, cost-effective and an inclusive strategy to ensure
competitiveness and improvement of Micro, Small and
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 Medium Enterprises (MSMEs). Considering the importance,
state government has laid special emphasis on cluster
development approach.
5.1.2 New industrial clusters with plug and play facilities shall be
developed.
5.1.3 Infrastructural facilities in existing industrial clusters shall be
upgraded so as to meet the growing needs of industrial units in
the cluster.
5.2 Ineligible industries
5.2.1 In order to promote the growth of MSMEs, the state
government has reviewed the list of ineligible industries and
reduced the number of industries in the non-eligible list from
52 to 19.
5.2.2 All the industries other than those listed in ineligible list are
eligible and entitled for incentives provisioned under this
policy.

5.3 Marketing assistance

With a view to create more business opportunities for micro and
small enterprises, state has taken various interventions to facilitate
linkages between vendor and anchor units. State government intends
to increase the growth of local vendors by taking following measures:
5.3.1 Directorate of Industries and the Department's Corporations
shall carry out a coordinated campaign within and outside the
state to attract industrialists/entrepreneurs for investment in the
State.
5.3.2 Industrial trade fairs shall be organized and State’s
participation would be promoted on a regular basis at national
and international level through Madhya Pradesh Trade Fair
Authority.
5.3.3 State would organize marketing events for MSMEs like Buyer-
Seller Meets, trade fairs, reverse buyer seller meets. All the
MSMEs and mother units shall be encouraged to participate in
such marketing events
5.3.4 Madhya Pradesh Laghu Udyog Nigam (MPLUN) shall
organize workshops between the anchor and vendor units

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6. Industrial infrastructure – The Growth Engine
6.1 Land concessions
Availability of land is a primary requisite for sustainable industrial
development. The State Government has substantial availability of
both government and private land parcels for industrial development.
In order to further enhance the rate of industrialization, the State
Government shall consider following measures pertaining to land
availability:
6.1.1 Developed industrial land shall be made available at a
competitive price to the investors.
6.1.2 CCIP may consider concession on the prescribed premium rate,
if the investor intends to set up a project on raw (undeveloped)
government land.
6.1.3 50% assistance subject to a maximum of INR 1 crore each shall
be provided to medium, large and mega scale industrial units
for developing power, water & road infrastructure, if the
investor acquires private land or gets undeveloped government
land for setting up of project.
6.1.4 The land allocation rules shall be further simplified to expedite
the allocation process.

6.2 Leveraging DMIC & investment corridors

6.2.1 Early bird projects identified under DMIC nodes, namely,
Knowledge City Ujjain, Multi-modal Logistics Hub, Indore-
Pithampur Economic Corridor and Power Equipment
Manufacturing Hub, Rajgarh etc. shall be implemented.
6.2.2 The state has strategically created investment corridors such as
Bhopal-Bina, Bhopal-Indore, Jabalpur-Katni-Singrauli &
Gwalior-Shivpuri-Guna along the state and national highways
to fasten the economic growth and create more employment
opportunities.
6.2.3 Various projects such as Air cargo terminal, Integrated
Agro/Food processing zone, integrated logistics hub, integrated
townships, Gas based industrial park, Rural Park, Engineering
Technology Park, Knowledge cities, etc. shall be developed to
enhance infrastructure in the state.

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6.3 Encouraging private partnership for infrastructure development

6.3.1 An enabling policy and institutional mechanism shall be

developed to attract private investment and leverage its
efficiency to provide quality infrastructure and services.

6.3.2 Initiatives of the investors in developing private industrial

areas/ estates either in PPP mode/individual entrepreneurs/
Companies/Co-operatives shall be encouraged with a
supportive package.
6.3.3 To encourage the private sector in the development of
infrastructure, special assistance will be provided to the projects
relating to establishing industrial parks, food parks, high-tech
parks or any other parks relating to manufacturing industries in
the state. An assistance of 15% of the expenditure on
establishment/development of industrial park subject to a
maximum limit of Rs. 5 crores will be provided to promote
subject to the condition that such developed industrial park
should have a minimum area of 50 acres, and minimum of 5
industrial units. The agency/investor developing such industrial
park would be reimbursed the assistance within 1 year from the
substantial completion of the project on fulfilling the required
conditions indicated at the time of sanction.
6.4 Plan and augment Industrial Infrastructure
6.4.1 The planning of infrastructure in existing and new areas shall
be done in line with industry requirements.
6.4.2 Existing industrial areas shall be expanded as needed and new
industrial areas shall be developed with necessary industrial
infrastructure.
6.4.3 The industrial infrastructure shall be developed at all regions
for balanced and equitable growth.
6.4.4 The industrial infrastructure shall be developed based on the
geographical strength and after assessing the demand of the
sector.
6.4.5 Land in industrial areas/growth centres will be allotted after
developing necessary infrastructure in industrial areas.
6.4.6 Areas having good potential for development of industrial
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 and commercial infrastructure shall be identified. In these
areas, infrastructure shall be developed with private sector
participation/Industrial Development Corporations.
6.4.7 New/expanded industrial areas, where 100 acres or more area
is to be developed, a maximum 20 percent of the total land
will be reserved for housing/commercial activities.
6.4.8 Necessary social infrastructure facilities like hospital/
dispensary, school, training centre, creche, housing,
shopping centre, fitness centre, recreation centres, rest
houses, labour welfare centre, hotel and warehouses, etc. will
be established in industrial areas either through department’s
corporations or private sector participation.
6.4.9 Establishment of Truck terminals in all the major industrial
parks will be promoted. In the case of Private Industrial
Parks, the Developer shall be mandated to provide adequate
Truck Parking Bays.
6.4.10 Measures shall be taken to earmark at least 20% of the land
for MSME sector in new non-PPP industrial areas for
necessary vendor development support to the large projects.
6.4.11 Multi storied industrial complexes for micro and small scale
enterprises shall be constructed in order to ensure optimum
productive use of land either through Department’s
Corporations or private sector participation at potential
industrial areas.
6.4.12 Industrial areas having more than 500 acres shall be allotted
10% of total area for development of warehousing facilities.
6.4.13 Rules relating to allotment and management of land will be
rationalized and made investor friendly
6.4.14 Any changes to be made in the land use in the notified
industrial areas shall be approved as per Town & Country
Planning Act

7. Skill development
Government of MP realizes that one of major impetus towards achieving
sustainable industrial growth is ensuring availability of skilled manpower.
Hence, state has taken up skill development as its key focus area and
established a nodal agency Madhya Pradesh Council for Vocational

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 Education& Training (MPCVET). The state government has undertaken
following steps to ensure expansion of training infrastructure of the state :-
 Establishment of government ITIs and polytechnic colleges
 Establishment of Mega ITI in major industrial hubs
 Formulation of skill development policy detailing industry friendly
incentive to promote private sector participation in realm of skill
development resulting in increase in number of private ITIs and
polytechnic
 In order to harness the social capital in rural areas, block level
training centres have been established
 Establishment of Rural Self Employment training Institutes (RSETIs)
in all the districts in collaboration with district lead bank.
 Targeted skill development programs towards meeting the industry
needs

8. Green industrialization
8.1 Small, Medium, Large & Mega industries shall be provided a capital
subsidy of 50% upto a maximum of Rs. 25 lakh for investment in
setting up of waste management systems (such as ETP, STP etc.),
pollution control devices, health and safety standards, water
conservation/harvesting etc.
8.2 Government of Madhya Pradesh (GoMP) is also focusing on
promotion of environment friendly development through green and
clean technologies, conservation of natural resources, waste
minimization and recycling etc.
8.3 GoMP shall facilitate the polluting industries which are located inside
city limit/ municipal limit / metropolitan areas to relocate to the
designated industrial areas
8.4 GoMP would encourage water harvesting and recycling in all its
existing and new industrial areas.
8.5 Facilitate setting up of effluent treatment plants and hazardous waste
treatment plants in various industrial estates and cluster with private
sector participation.

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9. Promotion of ancillarization to develop local vendors
9.1 The state government with a view to strengthening the supply side of
industrial ecosystem is promoting establishment of ancillary units
near mother units.
9.2 New vendor units established in premises or within a radius of 50 km
from mega scale industrial unit in Electric & Electronic hardware,
Chemical, Petrochemical & Fertilizer, Pharmaceutical, Engineering,
Leather & Leather goods, Textile & Automobile sectors, with a
minimum sale of 75% of their product to the mother unit, shall be
eligible for the same package of incentives as given to the mother
unit. The mother unit shall be permitted to ‘sub-lease’ the land to the
vendor unit. The mother unit shall ensure that the vendor unit shall be
eligible for ‘sub-lease’ only if it (vendor unit) satisfies the above
criteria.

10. Fiscal assistance

10.1 Fiscal assistance under this policy deals with incentives/concessions
available only to manufacturing sector. Separate incentives/
concessions shall be applicable for units in service sectors as per
prevalent policy of the concerned department.
10.1.1 It may be noted that if there are two policies which provide
similar incentives/concessions, then the investor is eligible
for claiming the incentives/concessions from only one
policy.
10.1.2 Any MSME which has availed the incentives under the
“Mukhyamantri Swarojgar Yojana” or “Mukhyamantri Yuva
udyami Yojana” shall not be eligible to avail the similar
incentives under the industrial promotion policy. The
remaining incentives can be availed from the industrial
promotion policy as per the eligibility.
10.1.3 However, if a manufacturing unit wishes to avail financial
assistance from Govt. of India over and above its eligibility
under this Policy, it may do so subject to the condition that it
may not be subsidized to more than what it has invested.

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10.2 Definition of units:

S. Type of unit Description

No.
1 Micro scale industrial A manufacturing enterprise having an
unit investment less than INR 25 lakh in
plant & machinery
2 Small scale industrial A manufacturing enterprise having an
unit investment between INR 25 lakh and
INR 5 crore in plant &machinery
3 Medium scale A manufacturing enterprise having an
industrial unit investment between INR 5 crore and
INR 10 crore in plant & machinery
4 Large scale industrial A manufacturing enterprise having an
unit investment more than INR 10 crore in
plant & machinery
5 Mega scale industrial An unit having an investment more
unit than:
 INR 100 crore in plant &machinery
 INR 25 crore in plant &machinery
in sectors including Food
Processing, Bio-technology, Herbal
&Minor forest produce, Tourism &
IT

10.3 For the purpose of incentives and their applicability, plant &
machinery shall mean investment made in plant & machinery,
buildings & sheds, but shall not include land & dwelling units.

10.4 Capital subsidy: Subsidy on plant & machinery only to eligible

units will be given as below :-

S. Type of unit Percentage of Maximum amount

No. subsidy of subsidy (INR
lakhs)
1 Micro& Small 15 Subject to a ceiling of
scale industrial INR 15 lakh
unit

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10.5 Interest Subsidy: Eligible units will get interest subsidy on term
loan as given below :-
Type of Interest subsidy
Units
Micro scale 5% with annual ceiling of INR 3 lakh for 7 years
industrial unit
Small scale 5% with annual ceiling of INR 4 lakh for 7 years
industrial unit
Medium scale 5% with annual ceiling of INR 5 lakh for 7 years
industrial unit

10.6 Entry tax exemption: Exemption from entry tax shall be as follows:
S. Type of unit Entry tax exemption
No.
1 Micro, Small,  Five years for an investment made upto
Medium, Large INR 500 crore in plant & machinery
& Mega scale
industrial unit  Seven years for an investment more than
INR 500 crore made in plant &
machinery

 If necessary, amendments will be made in the Entry Tax Act for

abolishing liability of entry tax on raw materials purchased by
one industry from another industry situated within an industrial
area or industrial growth centre by considering such industrial
area as one local area.
 Entry tax Act will be suitably amended if necessary, to abolish
liability of entry tax on transfer of semi-finished products from
one industrial unit to another industrial unit situated in a different
local area for intermediate processing/finishing and transfer back
to the original unit for manufacture of final saleable product.
 If necessary, provisions will be made in the Entry Tax Act for
treating the industrial units, which are established or spread over
more than one local area, as established in one local area for the
purpose of entry tax.
 Entry tax rates would be rationalized as needed to keep entry tax
rates at par with those in other competitive states.

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10.7 VAT & CST Assistance : Eligible enterprises (except textile units)
will be given reimbursement after adjusting the input tax rebate on
the amount of value added tax (VAT) and central sales tax (CST)
(excluding the amount of value added tax on purchase of raw
materials) deposited by them to the extent shown below:

S. Type of unit Eligibility under Eligibility for all

No. “*Priority block” other remaining
districts
1 Micro and small 50% for a period of 50% for a period of
manufacturing 7 years 5 years
enterprises having
fixed capital
investment of at
least INR 1 crore
and Medium scale
industrial unit
2 Large & Mega 75% for a period of 75% for a period of
scale industrial 10 years 7 years
unit

*Priority block : Blocks having no large/mega scale industrial unit

as on policy notification date
10.7.1 The amount of assistance provided to the units shall not
exceed the total investment made in plant and machinery.

10.8 Electricity duty exemption: All eligible units having ‘High Tension
(HT)’ connection by any DISCOM in the state by 3rd March 2019
shall be exempted from electricity duty as given below on terms and
conditions brought over vide notification no. F-3-23-2013-XIII
published in Gazette of Madhya Pradesh (extraordinary) on 4 th March
2014.

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 S. Type of unit Period of exemption
No.
1 Micro, Small,  For 33 KV connection : Upto a
period of 5 years
Medium, Large &
 For 132 KV connection : Upto a
Mega scale period of 7 years
industrial unit
 For 220 KV connection : Upto a
period of 10 years

10.9 Mandi Fee exemption: All Food processing units shall be given
exemption from mandi fee for a period of five years or a maximum
of 50% of investment in plant & machinery (whichever is lower).
This fee exemption shall be made available to those units,
which purchases agriculture produces of this state.

10.10 Mega investment shall also be considered for sanction of special

economic and other package on case to case basis by Cabinet
Committee on Investment Promotion (CCIP), according to
requirement of such projects and keeping in mind the resources
available in the State.

10.11 Fiscal assistance – Special textile package

10.11.1 Micro, small and medium textile units shall be given an
investment subsidy of 10% of eligible investment made in
TUFS approved plant & machinery subject to a maximum
limit of INR 1 crore.
10.11.2 Interest Subsidy :
S. Type of Units Interest subsidy
No.
1 For New Units with an 2% for 5 years from
investment of upto Rs. 25 the date of commercial
crores in Fixed Assets production on term
loan taken for TUFS
approved plant &
machinery subject to a
ceiling of Rs. 5 crore.

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 S. Type of Units Interest subsidy
No.
2 New standalone units with an 5% for 5 years from
investment of more than Rs. 25 the date of commercial
crores in fixed Assets production on term
loan taken for TUFS
or approved plant &
Expansion/Diversification of machinery
Existing Standalone unit with
fresh investment in TUFS
approved plant & machinery of
at least 30% of existing
investment in fixed Capital
Assets (Not less than Rs. 25
crores) or Rs. 50 crores,
whichever is less

3 New composite unit* with an 7% for 5 years from

investment of more than Rs. 25 the date of commercial
crores in fixed Assets production on term
loan taken for TUFS
or approved plant &
Diversification of Existing machinery
Standalone unit into a
composite unit

*For an unit to be classified as Composite Unit, it should be doing either

of the following manufacturing activities irrespective of its locations
(location may be same or at different places within the state of Madhya
Pradesh) and utilising at least 75% of primary produce (such as yarn) as
an input to the downstream activities :
 Cloth manufacturing using thread and processing activities (weaving
/ knitting and processing activities)
 Cloth processing and manufacturing (processing and garmenting)
 Thread manufacturing – Apparel manufacturing using thread,
processing and apparel manufacturing using clothes (spinning -
weaving / knitting – processing & garmenting)
 Made-up articles

19
10.11.3 Entry Tax Exemption :
S. Type of Units Exemption
No.
1 For Units with an For five years
investment of upto Rs.
100 crores in plant &
machinery (as defined in
clause 10.3)
2 For Units with an For seven years
investment of more than
Rs. 100 crores in plant &
machinery (as defined in
clause 10.3)

10.11.4 VAT & CST Assistance :

Industrial investment promotion assistance will be
given for 8 years from the date of commercial production,
within an overall ceiling of investment in TUFS approved
plant & machinery, to Units with investment of Rs. 1
Crore or more in fixed capital, as described below :
 Cotton ginning – equivalent to the CST paid on
interstate sale of ginned cotton;
 Spinning mill - equivalent to the computed gross CST
on interstate sale of cotton yarn;
 Cloth manufacturing unit (Cloth is a tax free
product) - equivalent to VAT paid on purchase of
cotton yarn by the manufacturing unit; and
 Readymade garment/Apparel unit - equivalent to
VAT & CST paid on sales of readymade
garment/apparel,

However, the assistance shall not be more than net tax

deposited with Government of M.P.

10.11.5 25% subsidy shall be given for establishment of Apparel

Training Institute to a maximum limit of INR 25 lakh.

20
11. Expansion/Diversification/technical up-gradation
11.1 Established large and medium industrial units, which invest 30
percent of existing investment in plant & machinery or INR 50 crore
(whichever is less) on expansion/diversification/technical up-
gradation, will be eligible for assistance/facilities at par with new
industrial units.
11.2 Established small scale industrial units, which invest minimum 50
percent of its existing investment in plant & machinery (not being
less than INR 25 lakh), shall be eligible for assistance/facilities at par
with new industrial units.
11.3 Micro and small pharmaceutical manufacturing enterprises shall get
assistance on investment at par with new units if these units invest
additional INR 10 lakh or 50 percent of existing investment in plant
&machinery (whichever is more), on expansion/diversification.
11.4 The above facility will be available to the industrial units only on
production being more than the previous installed capacity. The unit
will not be given benefit of the facility, if this condition is not met.
11.5 The units eligible for incentive in expansion/diversification/technical
up-gradation is determined as below:
S. Type of unit Eligibility
No.
1 Small scale Investment made in plant & machinery
industrial unit during last 2 years and the next one
year from the date of production
2 Medium scale Investment made in plant & machinery
industrial unit during last 3 years and next 2 years
from the date of production
3 Large scale Investment made in plant & machinery
industrial unit during last 3 years and next 3 years
from the date of production

12. Revival of sick units

12.1 Sick industrial units will be identified and district level database will
be created.
12.2 The State Government would give facilities/concessions on revival of

21
 sick/closed industrial units after acquisition/ purchase as described in
Annexure-I: 'Special Package, 2014'.
12.3 Facilities/concessions for revival/ rehabilitation of Large and Medium
industrial units situated in the State will be given as described in
Annexure-II: 'Policy Package, 2014'.
12.4 Madhya Pradesh Small Scale Industries Revival Scheme 2014 will be
applicable for small scale sick industries as described in
Annexure-III.
12.5 The facilities/concessions provided to sick units shall not be
applicable to units falling under the ineligible industry list mentioned
in the Annexure-IV.

13. Relief for financially constrained units

13.1 Deferment of Government Dues: Projects facing financial
constraints after achieving financial closure may also need
government support to survive in the long term. Currently, packages
are available for sick units, however keeping in mind the needs of
units under financial distress in critical sectors of the economy such
as Manufacturing, Mining & Quarrying, Power, Gas & Water supply,
the following incentives are provisioned for such units:
13.1.1 Government dues including royalties and government duties
(except taxes), will be allowed to be deferred for a maximum
period of twelve years. In case deferment is not possible
because of provisions of law, such unit will be entitled to
deposit the amount and claim the refund of same as loan for
equivalent period.
13.1.2 Recommendation of the project lead financial institution in
this regard would suffice to make such units eligible to be
considered financially stressed.
13.1.3 In order to avail the facility under 13.1.1, a project SPV or its
promoters shall submit a bank guarantee of 110% of
payable/paid dues with validity not less than the sought
deferment/loan period. Alternatively, for projects in which
State Government or its agencies are expected to make
payments to project, a tripartite agreement can also be signed
among the lenders, project promoters and State Government
or its agency stating that in case of default by the project
promoter for the deferred/loan amount, the same can be

22
 adjusted against the payment due to the project. An interest
amount calculated as per SBI Base Rate shall be levied for
the deferment/loan period in all such claims.
13.1.4 This facility shall be applicable only for mega investment of
more than Rs. 500 crores.
13.1.5 This facility shall not be applicable during the time period in
which benefits under VAT & CST reimbursement is being
availed by the units.
13.1.6 This facility shall not be applicable for activities pertaining to
trading and services sector.

23
 Annexure -I

1. 'Special Package, 2014' of facilities to be extended by

Government of M.P. on restarting of sick/closed
industrial units after acquisition/ purchase

The Govt. of M.P. will provide following facilities under “SPECIAL

PACKAGE” on rehabilitation of BIFR referred large and medium scale industrial
units after acquisition/ takeover through change of management or by way of
purchase from official liquidator of industrial unit under liquidation pursuant to
recommendation for winding up by BIFR or rehabilitation of large/ medium scale
industrial units purchased under SARFAESI Act from a financial institution a
State Government Corporation MPSIDC or MPFC which has acquired them:-
1.1 NON-FISCAL
1.1.1 Labour Department of Govt. of M.P. shall provide all possible
assistance to resolve disputes between management and labour for
running the industrial unit smoothly.
1.1.2 Department of Industries shall provide all necessary assistance
under single window system for resolving problems faced by the
industry from various other departments of the Government.
1.1.3 Rehabilitated unit would be declared Relief- Undertaking as may
be necessary.
1.2 FISCAL
1.2.1 In case the period of facilities of exemption/ deferment of
commercial taxes (sales tax and purchase tax), exemption/
deferment of entry tax, and VAT & CST reimbursement sanctioned
earlier has not expired, the facilities would be available as per
eligibility for remaining period after the date of take over.
Assistance provided shall be up to the proportionate limit of
investment made in plant and machinery.
1.2.2 In case of there are arrears of commercial taxes (sales tax purchase
tax), entry tax and VAT against the acquired/purchased unit, then if
the actual amount of commercial tax/VAT/entry tax, i.e., the
assessed tax amount is deposited in one go within three months
from the date of acquisition/purchase of the unit amount of
interest/penalty on such assessed tax amount will be fully waived.
Alternatively facility of the arrears of commercial taxes/VAT (along

24
 with interest/penalty) in maximum six half yearly instalments from
the date of acquisition/purchase will be given. If there is delay in
payment of such instalments, interest at PLR rate of State Bank of
India will be charged.
The facility of payment of outstanding amount of commercial
taxes/VAT (including interest/penalty) in instalments will be
extended on furnishing post dated cheques by the unit for the
amount of payable instalments and in case of public limited
company, on furnishing of corporate guarantee and on furnishing
of personal guarantee of all partners in case of a partnership firm.
The post dated cheques should bear the signatures of Managing
Director or Managing Partner, as the case may be.
The facility of waiving interest/penalty fully will be available
to the concerned unit only once.
1.2.3 If fresh investment made in plant & machinery in the rehabilitated
unit by the acquirer is more than 50% of the previous investment of
the unit made in plant & machinery, then facilities as per eligibility
will be extended to the unit treating it as a new unit.
Explanation :-
(a) Plant & machinery investment in the assets of the rehabilitated
unit shall be calculated as the depreciated value of plant &
machinery assets on the date of declaring it as sick by BIFR.
(b) In the case of rehabilitation of the unit on acquisition/purchase,
purchase price shall be taken as the basis for calculation of
plant & machinery investment of the unit.
1.2.4 Prompt action in accordance with the policy in force for giving
facilities for revival of sick/closed units under the concern
Electricity Distribution Company and the Electricity Act, 2003
shall be ensured in case of rehabilitation of sick/closed industrial
unit.
1.2.5 If the actual amount of outstanding dues of local bodies such as
water tax, octroi, property tax etc., is paid in one go within three
months from the date of acquisition/purchase, and then the total
amount of interest/penalty there on will be fully waived.
Alternatively, facility of payment of the arrears (including
interest/penalty) in maximum six half yearly instalments from the
date of acquisition/purchase will be given. If there is delay in

25
 payment of such instalments, interest at PLR rate of State Bank of
India shall be charged.
1.2.6 In case of the acquired/purchased unit being situated in an industrial
area or Industrial growth centre, the acquirer makes payment of
outstanding actual dues of lease rent, maintenance charges and
water charges due against the unit in one go within three months
from date of acquisition/purchase, then interest/penalty on such dues
will be fully waived. Alternatively facility of making payment of
the outstanding dues including interest/purchase in maximum six
half yearly instalments from the date of acquisition will be given in
case of delay in payment of such instalments, interest at PLR rate of
State Bank of India will be charged.
1.2.7 Transfer of land/building and other assets of the unit on
acquisition/purchase will be fully exempted from stamp duty.
1.2.8 If the acquirer makes fresh investment of more than INR 40 crores
in plant & machinery, then the unit shall be accorded status of mega
scale industrial unit and the acquirer will be able to submit
application as per rules before the CCIP for grant of customized
package.
1.2.9 Under this Special Package, providing eligible benefits will be
considered only in such cases where the industrial unit has been
acquired/purchased as a complete unit.
1.2.10 In case of the acquired/purchased unit being situated in a notified
industrial area or AKVNs industrial growth centre, transfer fee shall
be waived off for the acquirer.
1.3 BIFR appeal process: All cases as decided by BIFR should be accepted in
normal circumstances. Appeal to AAIFR only after approval from the High
Level Committee (HLC). Second level of appeal to be made to High
Court/Supreme Court against decision of AAIFR tribunal shall only be
made after seeking approval from CCIP.
Above facilities shall not be applicable automatically just on
acquisition/purchase of a unit. A high level committee headed by Chief
Secretary shall be competent to sanction a specific or all facilities upto
maximum limit on merits in each case under the Policy Package, 2014.
The facilities/concessions provided to sick units shall not be
applicable to units falling under the ineligible industry list mentioned in the
Annexure-IV.

26
 Annexure -II

2. 'Policy Package, 2014' of financial and other concessions to be

extended to the sick industrial units in the state

Large and medium scale sick industrial units situated in the state, whose
cases are under consideration before the Board for Industrial and Financial
Reconstruction {B.I.F.R.} under the Sick Industrial Companies {Special
Provisions} Act, 1985 and the Board {B.I.F.R.} is preparing or has prepared
rehabilitation scheme for their rehabilitation, will be extended following facilities
under Policy Package 2014: -
2.1 On rehabilitation of the sick/ closed unit, prompt action in accordance with
the policy in force for giving facilities under the concerned Electricity
Distribution Company and the Electricity Act 2003 will be ensured.
2.2 Permission to sell/sub-let surplus land available with the units and
permission for change of land-use may be granted, if necessary. It will have
to be ensured by the unit that the amount received from sale of land will be
utilized for implementation of rehabilitation scheme only.
2.3 If arrears of commercial taxes/entry tax/vat upto the date of sanction of
rehabilitation scheme or cut-off date are paid within 3 months from the date
of communicated decision of the Government, then facility of payment of
actual amount of taxes i.e. assessed tax, will be given and amount of
interest /penalties will be fully waived.
2.4 Facility to pay amount of arrears of commercial tax/entry tax/vat
(including interest/penalty) up to the date of sanction of scheme or the 'cut
of date' mentioned in scheme, in maximum 36 equal monthly instalments
from the date of sanction of scheme will be given. In case of delay in
payment of such instalments, interest at the rate of PLR of State Bank of
India will be charged.
Facility to pay the arrears of commercial tax/entry tax/vat (including
interest/penalties) in instalments will be extended on payment of instalments
by post-dated cheques by the unit, and on furnishing of corporate
guarantee in case of public limited company and personal guarantee of all
partners in case of partnership firms. The post-dated cheques should bear
the signatures of only the Managing Director or Managing Partner, as may
be applicable.

27
2.5 If the unit makes payment of arrears of commercial tax in one stroke {as
in Para 2.3 above}, then from the cut-off date mentioned in the sanctioned
scheme or date of sanction of the scheme, the unit will be given assistance
under VAT & CST reimbursement as defined in clause 10.7. Assistance
provided shall be up to the proportionate limit of investment made in plant
and machinery.
2.6 If any department/institution of the State Government has any outstanding
dues against the unit, then bank guarantee shall not be insisted for its
recovery.
2.7 Unit will be declared “Relief Undertaking” if necessary, during
rehabilitation period.
2.8 BIFR appeal process: All cases as decided by BIFR should be accepted in
normal circumstances. Appeal to AAIFR only after approval from
empowered committee (HLC). Second level of appeal to be made to HC/SC
against decision of AAIFR tribunal shall only be made after seeking
approval from cabinet
Facilities mentioned in the above package will be sanctioned as per
decisions to be taken by the High Level Committee constituted under the
chairmanship of Chief Secretary in each case on merits upto the limits
mentioned in 'Policy Package, 2014'.
If any specific relief/concession other than the Policy Package, 2014
is sought from the State Govt. such specific relief/concession may be
considered by high level committee. If it is found appropriate to grant such
specific relief/facility, the committee may send its recommendation to the
related forum/committee or Cabinet for decision.
The facilities/concessions provided to sick units shall not be
applicable to units falling under the ineligible industry list mentioned in the
Annexure-IV.

28
 Annexure- III

3. REVIVAL SCHEME FOR SICK SMALL SCALE

INDUSTRIAL UNITS
(Madhya Pradesh Small Scale Industries Revival Scheme - 2014)

3.1 Industrial sickness leads to problems, such as unemployment, revenue loss

to the State and Central Government reduced flow of institutional finance,
increase in non-productive assets etc. The factors responsible for sickness
in small scale industries may include obsolete technology, non-availability
of skilled manpower, poor management, diversion of funds, lack of
entrepreneurship/professionalism, marketing problems etc. Industrial
sickness is an integral part of the process of development. Hence, it is
desirable to take effective steps by the Government and other agencies
concerned for timely detection of sickness at its initial stage.
In this context, it is noteworthy that the Government of India has set
up a statutory body, namely, the Board for Industrial & Financial
Reconstruction (BIFR) under the Sick Industrial Companies (Special
Provisions) Act, 1985 to facilitate revival of viable sick industrial units and
also for the winding up of non-viable sick units. SSI sector, however, does
not come under the purview of the BIFR. It is noticed that some State
Governments such as Gujarat, Andhra Pradesh and Karnataka have evolved
schemes for revival of SSI and non-BIFR sick viable industries. There is
need to formulate a comprehensive package for revival of viable sick SSI
and non-BIFR units in Madhya Pradesh. With this in view, amended
schemed, called "Madhya Pradesh Small Scale Industries Revival Scheme
(MPSSIRS)" is introduced as under:
3.2 Title: The scheme shall be called "Madhya Pradesh Small Scale Industries
Revival Scheme (MPSSIRS)".
3.3 Operation period: This scheme shall come into operation with effect from
the date of issue of order in this regard.
3.4 Applicability: The scheme shall be applicable only to micro/small scale
industrial units/ ancillary units (not eligible for reference to BIFR) in the
manufacturing sector, whose total investment in plant & machinery
(excluding land and building) exceeds INR 5.00 lakh. The scheme would
not be applicable to service and business enterprises, and such industrial
units which are ineligible under the subsidy schemes of the department and
for tax exemption.
29
3.5 Definitions :
3.5.1 Sick unit:
A micro/small scale industrial unit will be considered sick if
according to its audited accounts for the financial year 2008-09 or
subsequent years.
a) The borrower account of the unit remains substandard for more
than six months i.e. principal or interest in respect of its
borrower account remains overdue for a period exceeding one
year. The requirement of overdue period exceeding one year
will remain unchanged even if the state of the accounts
remaining sub-standard improves in due course;
Or
There is erosion in the net worth of the unit, which is to the
extent of 50 per cent of its net worth due to accumulated cash
losses during the previous accounting year;
And
b) In case of a closed unit, the unit has been in commercial
production for at least two years before its closure, and it has
remained closed continuously for 18 months. There has been
electricity disconnection due to closure or the prescribed return
of commercial tax for this period has been nil or any other
reason as the empowered committee may deem fit.
c) Accounts would mean such audited accounts of the units, which
it has reported to the Registrar of Companies or which are
audited by a Chartered Accountant.
3.5.2 Net Worth:
In case of limited company, net worth means the sum total of paid
up capital and free reserves. In case of a partnership/ proprietary
concern, net worth means the sum total of partners'/ proprietor's
capital and free reserves.
3.5.3 Free Reserves:
Free reserves means such deposited capital, which has come from
profit and share premium account but does not include capital
arising from revaluation of assets, and written back depreciation
under provisions of amalgamation.

30
3.5.4 Bank:
Means any public sector bank, District Cooperative Bank, Urban
Cooperative Bank and any other bank that is a scheduled bank in
terms of the second schedule to the Reserve Bank of India Act
3.5.5 Financial Institution:
Financial Institution means Industrial Development Bank of India,
Industrial Finance Corporation of India, Industrial Credit and
Investment Corporation of India, Industrial Investment Bank of
India, Small Industries Development Bank of India, Madhya
Pradesh State Industrial Development Corporation, M.P. State
Finance Corporation or any other institution which is authorized to
advance loans for investment made in plant & machinery to
industrial units.
3.5.6 Viable sick unit:
Viable sick unit means a unit in the manufacturing sector with
investment made in plant & machinery of over INR 5.00 lakh, and
which would be in a position, after the implementation of
rehabilitation package/scheme (the period of which will not exceed
five years), to repay the restructured loans and interest fully to the
banks/ financial institutions as well as the dues of the State
Government/ Central Government and the concerned electricity
distribution company etc. within the period of implementation of the
package.
3.5.7 Dues payable:
Means amounts outstanding as dues to all statutory authorities, such
as Commissioner of Commercial Taxes, Collector of Customs and
Central Excise, Commissioner of Income Tax, Statutory dues under
various Labour Laws, Regional Provident Fund Commissioner,
Electricity Distribution Company or such other authorities which
have legal authority to receive payment from the unit.
3.5.8 Appraisal Agency:
The agency appointed to appraise the viability of the sick unit with
the consent of the financing institution/bank and the Empowered
Committee. This agency would be as mentioned in clause 3.8.2.
3.5.9 State Government:
Means Department of Commerce, Industries & Employment of the
Government of Madhya Pradesh.

31
 3.5.10 Special Cell:
Means a cell specially formed by the Commissioner of the
Industries for the purpose of operation of this scheme.
3.5.11 Madhya Pradesh Electricity Distribution Company:
Associate Electricity Distribution Companies of the Madhya
Pradesh State Electricity Board
3.5.12 Eligible Assets:
Means the assets created during the period of two years from the
date of sanction of the rehabilitation package subject to limit of
additional investment as approved under MPSSIRS for
rehabilitation of the sick unit. Any other assets acquired, created
and/or paid for after the period as mentioned above shall not be
taken into consideration.
3.5.13 Eligible Plant & Machinery:
Plant & machinery shall mean investment made in plant &
machinery, buildings & sheds, but shall not include land & dwelling
units.
3.5.14 Technical Know-how fee:
Fees paid for technical know-how or consultation fee paid in lump
sum to foreign supplier as approved in accordance with the policy of
the Govt. of India in force from time to time or paid to laboratories
recognized by the State Government or Central Government.

3.6 Reliefs :
Micro/small scale, non-BIFR sick industrial units, for the preparation of
rehabilitation package of which the Government of Madhya Pradesh has
agreed in principle, following reliefs and concessions will be accordingly
extended -
3.6.1 Fiscal Reliefs:
Eligible units will be able to get the following reliefs and concessions
from various departments/agencies of the State Government.
Necessary funds to operate the scheme and to reimburse
financial loss to the Government and its agencies shall be provided in
the budget allocation of the Commerce, Industries & Employment

32
Department. The number of units to be provided relief shall be
limited according to the availability of funds in any given year.
3.6.1.1 Commercial Tax Department:
The unit will be given the facility to pay arrears of
commercial tax i.e. assessed tax in 36 equal monthly
instalments or twelve quarterly instalments with
interest/penalty. The unit will be free to deposit the amount
of assessed tax without interest / penalty in one stroke.
3.6.1.2 Madhya Pradesh Electricity Distribution Company:
The unit eligible under the Scheme would be granted the
following reliefs by the concerned Madhya Pradesh
Electricity Distribution Company -
a) Minimum charges for the closure period subject to
ceiling of maximum Rs. One lakh will be waived.
However, if the unit has already paid the amount of
minimum charges, the same shall not be refunded.
b) In cases where power has been disconnected due to non-
payment of bills or the agreement has been terminated
ex-parte, no fresh security deposit would be insisted
upon.
c) Facility of paying arrears of electricity bills to
concerned Electricity Distribution Company in six half
yearly instalments from the date of sanction of revival
scheme will be given to the unit.
d) Interest payable on dues of the concerned Electricity
Distribution Company for closure period of the unit will
be waived upto maximum ceiling of Rs. one lakh for re-
connection of electricity supply by the concerned
Electricity Distribution Company, payable additional
service charge will be waived upto to maximum ceiling
of Rs. twenty five thousand.
e) Penal charges imposed by the concerned Electricity
Distribution Company will be waived upto maximum
ceiling of Rs. twenty five thousand. In addition to the
above, on rehabilitation prompt action in accordance
with the policy in force under the concerned Electricity
Distribution Company and the Electricity Act, 2003 will
be ensured.

33
 3.6.1.3 Commerce & Industry Department:
a) If any small scale unit, which has been sanctioned
rehabilitation scheme, avails fresh term loan under the
revival package, it will be eligible for interest subsidy as
per the existing rules of Government of M.P.
b) Viable closed unit would be granted the facilities as
applicable to a new unit from the date of revival. If
additional investment is made in plant & machinery,
State Capital Investment Subsidy would be granted as
per eligibility.
3.6.1.4 Continuation of Incentives sanctioned earlier:
This scheme will also be applicable to a sick unit, which has
had change in management. The revived unit would get the
facilities sanctioned to the earlier unit for the unexpired
eligibility period.
3.6.1.5 Additional Relief:
In addition to the above fiscal concessions, recommendation
may be made to the concerned authorities for granting of
following additional reliefs -
a) Exemption from stamp duty on different agreements to
be registered as a consequence of revival scheme.
b) This scheme will be implemented through Single
Window System.
3.7 Empowered Committee:
Government of Madhya Pradesh constitutes an Empowered
Committee of following members for sanction of rehabilitation package
under this scheme -
1. Collector Chairman
2. Zonal Industry Officer Vice-chairman
3. Deputy Commissioner, Commercial Tax Member
4. Representative of M.P. Electricity Distribution Member
Company not below the rank of Divisional
Engineer

34
 5. Lead District Bank Manager Member
6. Representatives of Concerned Bank Member
7. Representative of SIDBI (if the case is related to Member
SIDBI)
8. Representative of Madhya Pradesh Finance Member
Corporation (if the case is related to the Finance
Corporation) Member (If case is re
9. Representative of Appraisal Agency Member
10. Representative of Audhyogik Kendra Vikas Member
Nigam, not below the rank of General Manager
11. Joint Director, Treasury and Accounts or his Member
Representative
12. General Manager, District Trade and Industries Member-
Centre Secretary

Chairman of the above committee may co-opt additional members as

deemed necessary. Presence of at least 50% of the members will be required
to fulfil the quorum. This committee will be fully empowered to take final
decisions. The committee will take decision within 90 days from date of
receiving of application. The applicant will be informed within 30 days
from the date of decision taken.
It will be the responsibility of the member-secretary of the committee
to get case decided after organizing meetings within the stipulated time. If
decision is not taken within stipulated time, explanation will be sent to the
Industries Commissioner, Madhya Pradesh within 15 days with appropriate
reasons.
3.8 Procedure:
3.8.1 Initial Scrutiny, eligibility of case:
(a) The applications received in the office of General Manager,
District Trade & Industries Centre will be scrutinized and cases
found eligible on preliminary scrutiny will be registered and
registration number will be issued. This procedure will be
completed within 7 working days. The application will be
disposed of by the Committee.

35
 (b) Circulation among members:
After registering the application, copies of complete application
shall be circulated amongst the concerned members of the
Empowered Committee for their departmental comments.
Members shall be present in the meeting of the committee along
with comments of their respective department. The concerned
members will have to act for their departmental comments within
15 days. The views of the concerned members as well as other
relevant issues will be considered in the subsequent meeting of
the Empowered Committee following the date of registration.
3.8.2 Reference to Authorized Consultant for appraisal:
Applicant will have to get his application, which will contain
statement of expected assistance from the Government, appraised by
a consultant out of the list of Industrial Consultant published by
IDBI/SIDBI or by MPCON or Centre for Entrepreneurship
Development Madhya Pradesh (CEDMAP). A clear recommendation
from the consultant, whether revival is possible or not will have to
obtained. Applicant will submit scheme/proposal from consultant in
the application, which shall contain other particulars such as financial
assistance to be obtained from banks/financial institutions, and their
consent.
3.8.3 Application fee:
Application fee shall be Rs. one thousand only.
3.8.4 Circulation amongst members of the Empowered Committee:
Office of the Empowered Committee will examine the report of the
Appraisal Agency and ensure that it conforms to the guidelines laid
down in the scheme. Thereafter, the report would be circulated
amongst members of the Committee.
3.8.5 Sanctions by the concerned agencies:
After receipt of the report from the Empowered Committee, the
concerned agencies will communicate their consent for the reliefs and
concessions/foregoing of dues envisaged within a period of thirty
days. In case they are not in a position to give their consent within
this time period, they will have to inform the committee giving cogent
reasons for the non-grant of the reliefs and concessions as envisaged.
Decisions of Empowered Committee would be binding on all
the departments of the State Government. If however, any
36
 Department wishes to get any decision reconsidered, a proposal to
that effect must be moved for the consideration of the State
Government in the Department of Commerce, Industries and
Employment.
3.8.6 Sanctions under MPSSIRS:
On completion of the aforesaid period of 30 days, the Empowered
Committee shall consider the unit’s case in its meeting where a final
decision on the revival package would be taken.
3.8.7 Time frame for issuance of orders:
The respective departments of the State Government or its agencies
concerned with the rehabilitation package of the sick unit will
sanction reliefs as decided by the Empowered committee under the
provisions of the respective acts/rules policy. Final orders sanctioning
reliefs/concessions to the unit will be issued within one week of
receipt of minutes of the meeting of the Empowered Committee,
failing which the same will be deemed to have been given.
3.8.8 Quantum of Financial Sacrifice:
While working out the rehabilitation package, it should be ensured
that the amount of financial sacrifice to be borne by the State
Government/ Madhya Pradesh Electricity Distribution Company does
not exceed the sacrifices to be borne by banks/ financial institutions.
This condition shall not apply in case of a unit which has not availed
of any finance from a bank/ financial institution up to the date it
approaches the State Government for assistance under the present
package. The amount of financial sacrifice shall be computed as
follows:
 For relief/facility of payment in instalments of arrears 12 percent
rate of interest will be taken into consideration. The State
Government normally recovers arrears with a penal rate of
interest of 18 percent per annum. The difference in the two
interest rates i.e. interest at 6 % p.a. will therefore be treated as
the financial sacrifice on the part of the State Government.
 Relief and concessions to be given by Electricity Distribution
Company will be in the form of exemption, e.g. exemption from
depositing fresh security deposit in case power has been
disconnected due to non-payment of bills or due to ex-parte
termination of agreement by the energy supplier, and minimum
charges during closure period

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  In such cases, the amount of security deposit/ minimum charges
so exempted together with interest at 6 percent per annum from
the date of payment of the deposit till the date of termination of
the rehabilitation package will be considered as the amount of
sacrifice.
3.8.9 Terms and Conditions for Grant of Reliefs:
a) The Empowered Committee will conduct reviews from time to
time, which shall be in addition to the annual review of
performance of the unit under rehabilitation. During the period of
rehabilitation the unit shall arrange for auditing of its accounts by
a chartered accountant firm as approved by the Empowered
Committee. The units that avail of reliefs under this scheme shall
neither declare dividend nor pay interest on the deposits made by
the promoters during currency of the rehabilitation package.
b) The Industrial unit availing of facilities under the Scheme will
take effective steps for pollution control measures as per the
standards prescribed and approved by competent authority in this
regard, and shall maintain them in working condition.
c) The Industrial units will have to remain in production
continuously at least till the expiry of the revival period under the
scheme.
d) The industrial unit will furnish details regarding production,
employment or any other information that the State Government
and the Empowered Committee may require from time to time.

The facilities/concessions provided to sick units shall not be applicable

to units falling under the ineligible industry list mentioned in the
Annexure-IV.

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 Annexure-IV
4. List of ineligible industries

S. List of Ineligible Industry

No.

1 Beer and liquor (excluding winery)

2 Slaughter house and industries based on meat

3 Manufacturing of all kinds of pan masala and gutkha

4 Manufacturing of Tobacco and tobacco based products

5 Manufacturing of plastic bags of thickness 40 micron or lesser

6 Industrial units set up by central or state government or their

undertaking

7 Stone crusher

8 Grinding of minerals

9 Defaulter of state government/state government undertaking

10 All types of mining activity (where there is no value addition)

11 Activities pertaining to trading and services

12 Manufacturing of Charcoal

13 Refining of edible oils (Independent unit) and Soya bean oil

producing units (Including refinery)

14 Cement (Including clinker) manufacturing

15 Publishing and Printing processes of all types (Other than

rotogravure/flex printing)

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S. List of Ineligible Industry
No.

16 Manufacturing of ornaments and other articles of bullion of gold

& silver

17 Saw milling & planing of wood

18 Pressing of iron/steel scrap into blocks or any other shapes

19 Any industry declared by state government from time to time

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