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IT Investment Promotion Assistance Scheme – Madhya Pradesh

Overview

The IT Investment Promotion Assistance Scheme is a flagship initiative of the Government of Madhya Pradesh designed to attract and support investments in the Information Technology (IT), IT-enabled Services (ITeS), and Electronics System Design & Manufacturing (ESDM) sectors.

The scheme provides a combination of financial incentives, infrastructure support, and policy facilitation to encourage the setup, expansion, and growth of IT/ITeS companies in the state.
It aims to position Madhya Pradesh as a leading IT hub, generate skilled employment, and promote digital innovation and entrepreneurship.

Key Features & Benefits for IT Businesses

🏗️ Capital & Infrastructure Support

  • Capital Investment Subsidy:

    • Reimbursement of up to 25% of fixed capital investment, subject to eligibility and investment size.

    • Higher incentives for projects in Tier-2 and Tier-3 cities (like Indore, Bhopal, Jabalpur, Gwalior, and Rewa).

  • Infrastructure Support:

    • Allotment of land or plug-and-play office space in designated IT Parks and SEZs at concessional rates.

    • Stamp Duty and Registration Fee exemptions on land purchases or lease agreements for IT projects.

💰 Operational Incentives

  • Interest Subsidy:

    • Reimbursement of 5% interest subsidy per annum on term loans for up to 5 years.

  • Power Tariff Concessions:

    • Reduced power tariff or reimbursement on electricity duty for eligible IT/ITeS units.

  • Lease Rental Reimbursement:

    • Reimbursement of up to 50% of lease rentals (subject to ceiling limits) for companies operating from private IT buildings or rented office spaces.

👩‍💻 Employment & Training Incentives

  • Employment Generation Incentive:

    • Assistance of ₹10,000–₹20,000 per employee (one-time) for new jobs created by eligible IT/ITeS companies.

    • Higher incentives for hiring local youth, women, and specially-abled persons.

  • Skill Development Support:

    • Reimbursement of expenses incurred for employee training or skill upgradation programs conducted through recognized institutes.

🌐 Special Incentives for Startups & MSMEs

  • Startups and MSMEs in IT/ITeS sectors receive enhanced capital subsidies and 100% reimbursement of registration fees under Startup MP or related programs.

  • Access to co-working spaces, incubation centers, and mentorship programs in collaboration with industry and academia.

Eligibility Criteria

To qualify for assistance under this scheme, the business must:

  • Be engaged in Information Technology, IT-enabled Services, Electronics Manufacturing, or Digital Product Development.

  • Be a registered business entity (company, LLP, partnership, or proprietorship) with a base of operations in Madhya Pradesh.

  • Meet the minimum investment threshold defined for the respective category:

    • Small & Medium IT Units – Minimum investment of ₹50 lakh.

    • Large IT Projects – Minimum investment of ₹10 crore.

  • Create a specified number of local employment opportunities, as per project scale.

  • Have statutory compliances (GST, EPF, ESIC, etc.) in place.

How to Apply

  1. Project Proposal Submission

    • Prepare and submit a detailed project report (DPR) highlighting the investment, employment generation, and infrastructure requirements.

    • Submit the proposal to the Department of Micro, Small and Medium Enterprises & IT (MP State IT Directorate) or via the official portal.

  2. Online Application

    • Register and apply through the Invest MP portal: https://invest.mp.gov.in

    • Upload supporting documents including DPR, business registration, GST certificate, and financial projections.

  3. Evaluation & Approval

    • The State-Level Empowered Committee (SLEC) evaluates project proposals and approves incentive packages based on eligibility and potential impact.

  4. Incentive Disbursement

    • Incentives are released post-investment verification and in accordance with the project’s implementation timeline.

Important Considerations for IT Entrepreneurs

  • Location Advantage:

    • Units established in Bhopal, Indore, Jabalpur, Gwalior, and emerging IT clusters enjoy ready access to infrastructure, skilled talent, and logistics.

  • Green & Smart Infrastructure:

    • Preference is given to projects implementing energy-efficient buildings, digital innovation, and environment-friendly practices.

  • Compliance & Documentation:

    • Maintain proper documentation for all capital and operational expenses to claim reimbursements.

    • Periodic reporting and audits are mandatory for continued eligibility.

  • Special Focus Sectors:

    • Artificial Intelligence (AI), Blockchain, Cybersecurity, Cloud Services, IT-enabled Healthcare, EdTech, FinTech, and Electronics Assembly.

Why This Scheme Matters for IT Businesses

  • Reduces the cost of setting up and scaling IT operations in Madhya Pradesh.

  • Encourages regional IT growth beyond Tier-1 cities.

  • Boosts employment generation and digital inclusion.

  • Aligns with the state’s broader vision of creating a “Digital Madhya Pradesh” and fostering a vibrant technology ecosystem.

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