The Government of Madhya Pradesh has notified the MP IT/ITES/ESDM Investment Promotion Policy, 2023, with the objective of accelerating investment in technology-led sectors and creating a robust ecosystem for IT, IT-enabled services, electronics manufacturing, and allied industries across the state.
The policy provides a structured framework of financial assistance, employment-linked incentives, and infrastructure support, applicable to eligible companies establishing operations anywhere within Madhya Pradesh, including those operating through co-working and plug-and-play office models. The incentives are subject to fulfillment of prescribed conditions, procedural compliance, and approval by the competent authorities.
This article presents a detailed and verified overview of the policy provisions relevant to IT and ITeS companies, with particular emphasis on rental assistance, employment generation incentives, and baseline eligibility conditions applicable across the state.
The MP IT / ITES / ESDM Investment Promotion Policy, 2023 is a state government policy of Madhya Pradesh aimed at promoting investment in the following sectors:
The key objectives of the MP IT/ITES/ESDM Investment Promotion Policy, 2023 include:
These objectives underpin the design of the incentives offered under the policy.
For the purpose of incentive computation, districts in Madhya Pradesh are classified into different categories (such as Category A, B, etc.). The quantum of certain incentives, particularly rental assistance, may vary based on district classification.
However, the policy framework itself is applicable across the entire state, and eligible companies operating in any district of Madhya Pradesh may avail incentives subject to location-based limits and fulfillment of conditions.
1. Rental Assistance for Co-working / Plug-and-Play Spaces To support companies opting for flexible infrastructure models, the policy provides rental assistance for operations carried out from co-working or plug-and-play facilities. Key features of rental assistance include:
2. Employment Generation Assistance (EGA) To encourage sustained job generation, the policy provides Employment Generation Assistance (EGA), calculated on a per-employee, per-month basis. Indicative assistance structure:
Additional parameters:
Employment is generally considered eligible only when statutory compliances, including EPF registration and contributions, are duly met.
In addition to the incentive-specific criteria, the policy prescribes certain baseline conditions that must be complied with for availing and continuing incentives:
Non-compliance with these conditions may result in rejection, reduction, suspension, or recovery of incentives.
While the policy lays down the incentive framework, actual realization of benefits requires:
The disbursement of incentives is subject to scrutiny, verification of records, and approval by the competent authorities.
Given the technical and procedural nature of subsidy schemes, professional assistance often plays a crucial role in:
Effective coordination between the company’s internal teams and professional advisors significantly improves the likelihood of successful incentive realization.
The MP IT/ITES/ESDM Investment Promotion Policy, 2023 offers a well-structured and employment-oriented incentive framework for IT and ITeS companies operating anywhere in Madhya Pradesh. By providing rental assistance for modern workspace models and employment-linked financial support, the policy seeks to reduce initial operational costs while encouraging sustainable growth and job creation. Companies planning to establish or expand technology operations in Madhya Pradesh should conduct a detailed eligibility assessment, ensure strict statutory compliance, and adopt a systematic approach to documentation and claims in order to maximize the benefits available under the policy.
For more information on the MP IT/ITES/ESDM Investment Promotion Policy, 2023 or any other state or central government assistance policies, you may contact the author, CA. Apurv Kansal, at mail@apurvkansal.co.in or reach out via message/call at +91 9827205947.
This article is intended solely for general informational purposes and does not constitute professional advice, legal opinion, or a formal recommendation. The benefits, incentives, and conditions discussed herein are subject to the provisions of the MP IT/ITES/ESDM Investment Promotion Policy, 2023, relevant rules, guidelines, clarifications, and amendments issued by the Government of Madhya Pradesh from time to time.
Eligibility for incentives, quantum of assistance, and actual disbursement are subject to verification, approval, and discretion of the competent government authorities, and may vary based on district classification, nature of operations, compliance status, and other factors.
Readers are advised to seek independent professional advice and undertake a detailed review of applicable laws, notifications, and policy documents before making any investment or operational decisions. The author shall not be responsible for any loss or consequences arising from reliance on the information contained in this article.
