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MP MSME Protsahan Yojna, 2019- Overview

With an objective to provide incentives to manufacturing industries of micro, small and medium category, Madhya Pradesh MSME Protsahan Yojna, 2019 (MP MSME Promotion Scheme 2019) has been issued. Basic details of the policy is covered into this article. Separate post for incentives of this policy is already updated.

(The scheme guidelines is in Hindi only, utmost care is taken in translating the same to English and then converting that into short notes. Some words may not be translated exactly but the essence remains the same.)


01/10/2019- till amended or superseded.

  • Manufacturing sector entities commencing commercial production after 30.09.2019 will be eligible to take benefit under this policy.
  •  Manufacturing sector entities commencing commercial production before 01.10.2019 will be eligible to take benefit under MP MSME Vikas Neeti 2017 or earlier policies as the case may be.
  • For Effluent treatment plant/ Common effluent treatment plant, Quality certification, Patent and Energy audit related benefits, manufacturing sector entities commencing commercial production before 01.10.2019 will also be eligible under this policy.

Ineligible units:

  1. Trading and Service related activities.
  2. Beer and Sharab having alcohol
  3. Manufacturing of all kind of Paan Masala and Gutkha
  4. Tobacco and manufacturing of tobacco based products
  5. Manufacturing of all types of polythene bags and plastic bags having thickness of 40 micron or less.
  6. Units established by central or state government or their undertaking
  7. Stone Crusher
  8. Grinding of minerals, Calcination {except manufacturing of artificial sand (ret) by soil (mitti)}
  9. Defaulter of State Govt./ undertaking of state govt.
  10. All types of mining activities where no value addition has been done
  11. Manufacturing of charcoal
  12. All kind of solvent extraction plant (except edible oil expeller where investment in plant and machinery does not exceed Rs. 1 crore)
  13. Refinery of all kind of oil.
  14. Manufacturing units of cement/ clinker
  15. All kind of publication and printing activities
  16. Aara Mill and wooden planing
  17. Conversion of iron/ steel crap into blocks or other shapes by pressing
  18. Electricity generator units
  19. Packaged drinking water
  20. Sortex plant and Sorting/ Grading/ Cleaning of crops/ grains
  21. Aerated/ Carbonated drinks
  22. Slaughter house and meat based business
  23. Business declared from time to time by state govt. in context of this policy


  Classification of existing enterpriseExpansion/ diversification/ up gradation of existing unit to be considered as new unit, if
  Existing Micro EnterpriseInvestment of Rs. 10 lacs or more in plant and machinery.
  Existing Small EnterpriseInvestment of Rs. 25 lacs or more in plant and machinery.
  Existing Medium EnterpriseInvestment of Rs. 100 lacs or more in plant and machinery.

*if total investment in a unit exceeds Rs. 15 crores because of expansion/ diversification/ up gradation, the unit will not be eligible to claim benefit under this scheme.

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