In order to make Madhya Pradesh self-reliant, the Department of Micro, Small, Medium Enterprises of the Government of Madhya Pradesh has formulated a new MSME Development Policy to revive the industries. In this policy, apart from increasing investment in the state, every possible provision has been made to provide employment to the local youths.

Madhya Pradesh is much ahead in the country in agricultural products and for processing these products in the state itself, it has been announced to give concessions along with many facilities to these units.

Under the policy, many types of assistance, facilities will be provided to the new food processing unit, in which investment of more than Rs 10 crore and up to Rs 50 crore has been made in the machinery-plant.

According to the policy, a rebate of Re 1 per unit or 20 percent, whichever is less, will be provided to high pressure consumers on getting a new connection in the prevailing electricity tariff under electricity consumption assistance. This exemption will be admissible for food processing units for a period of 05 years from the date of production, commercial operation. In off-season, 10% of the contract demand or the actual recorded demand, whichever is higher, will be billed at the normal tariff, rebate will be payable to the food processing units of the respective category.

Similarly, the facility of exemption from mandi fee is also in the policy. All such eligible food processing units will be exempted up to maximum of 50 percent of the investment in plant and machinery or for a period of five years in mandi fee, whichever is less. This facility of exemption from duty will be available only to those units, which will purchase agricultural produce of this state.

There is also a provision to facilitate in the policy for special assistance on the development of food parks. In order to encourage the establishment of food processing projects in the state under the infrastructure development assistance and to improve the infrastructure, 15 percent of the project cost and maximum amount of Rs. 5 crore will be provided to the private sector on the establishment of mega food park as per the guidelines of the Government of India, the Ministry of Food Processing Industries for the establishment of mega food park.

This assistance will be payable on the establishment of minimum 10 units in the developed park. This assistance will be payable in the form of top-up. Under the assistance of stamp duty, the stamp duty paid by the promoters will be reimbursed in the land transferred by the promoters to the Special Purpose Vehicle (SPV) for the establishment of Mega Food Park.