With the Global Investors Summit in Madhya Pradesh just around the corner on February 24-25, the state government is preparing to roll out a revamped MSME policy aimed at boosting micro, small, and medium enterprises. The Madhya Pradesh Cabinet, during its meeting on February 18, is expected to finalize the MSME Policy 2025, which includes provisions for land allotment, investment incentives, and regulatory simplifications.
MSME Policy 2025: A Game Changer for Investors
The new MSME policy is designed to make it easier for businesses to acquire land for setting up operations. Under the proposed framework, private investors will be required to pay a non-refundable fee for land acquisition, with Rs 20,000 set for smaller plots between 2-5 hectares and Rs 5 lakh for larger plots above 20 hectares. Unlike the previous policy, where land allotment was merit-based, the new system will follow a first-come, first-serve approach, with available plots listed on government portals for transparency.
In addition, the approval authority for MSME investments will shift from the general manager of district trade and industry centers to a committee consisting of the MSME commissioner, additional secretary, and the general manager of the trade and industry center. However, the state government will retain final approval rights for investors seeking multiple land parcels.
Start-up & Compressed Biogas Policies Also on the Anvil
The Madhya Pradesh government is also finalizing a start-up policy to create an ecosystem that fosters entrepreneurship, innovation, and ease of business. Sources indicate that the policy will focus on plug-and-play infrastructure, offering incentives and incubation support for young businesses.
Additionally, the state is working on a Compressed Biogas (CBG) Policy to attract investments in green energy. The policy is expected to streamline approvals for setting up CBG plants, supporting the state’s push towards sustainable energy solutions.
Also read: MSME Survival at Risk in Uttarakhand
Paving the Way for Madhya Pradesh’s Industrial Growth
With manufacturing and MSME sectors contributing significantly to Madhya Pradesh’s economy, these policy reforms are expected to enhance investment opportunities, boost employment, and improve ease of doing business. The Global Investors Summit will serve as a platform to showcase these policies and attract both domestic and international investors to the state.
As Madhya Pradesh continues to position itself as an industrial and entrepreneurial hub, the question remains: Will these policy reforms be enough to drive a new wave of investment in the state?