The cabinet under the chairmanship of Chief Minister Dr. Yadav approved several policies in the interest of the state and investors

Chief Minister Dr. Mohan Yadav chaired a cabinet meeting held at the secretriat on Tuesday. During the meeting, the cabinet approved the implementation of the Integrated Township Policy 2025 to promote private investment in real estate within urban areas. This initiative aims to boost economic activities, generate employment opportunities, and contribute to the state's GDP growth. The policy is designed to facilitate land development through land pooling, ensuring planned urban expansion. Its implementation will lead to the development of large-scale townships while allowing the continued growth of residential colonies under the existing framework.

As per the decision, the integrated township policy will be implemented in development areas where adequate infrastructure facilities are available. Under this policy, the minimum land requirement for cities with a population of less than five lakh will be 10 hectares, while for cities with a population exceeding five lakh, the requirement will range between 20 to 40 hectares. Developers will be required to register with the competent authority before proceeding under this policy.

To oversee township proposals, an authoritative committee will be formed, chaired by the Principal Secretary at the state level and the Collector at the district level. The Directorate of Urban and Rural Investment will serve as the nodal agency for the implementation of the township policy.

In the township policy, the state government has authorized the authorised committee at the department level for land acquisition, external development work, timely provision of all permissions, benefit of TDR, exemption in maximum limit of agricultural land, concession on stamp duty, exemption in colony rules, ease in process for amendment in development plan, green FAR, FAR for non-conventional use of energy, FAR for additional EWS/LIG/affordable housing units and modification in land use proposed in the adopted development plan under section 23 of the Act 1973. The policy will promote systematic urbanisation in the state.

Currently, developers are building colonies on small parcels of land, making it difficult to establish city-level infrastructure. There are no minimum area restrictions in the existing rules for colony development, leading to fluctuations in the demand and supply of urban land for expansion. To address these challenges and ensure timely infrastructure development and affordable housing, the Integrated Township Policy is being implemented.

Approval of M.P. MSME Development Policy-2025

The cabinet approved the new Madhya Pradesh MSME Development Policy-2025 for the promotion of micro, small and medium industries. According to the decision, the benefits of M.P. Logistics Policy-2025 and Export Policy-2025 of the Industrial Policy and Investment Promotion Department will be provided to MSMEs. The MSME department has been authorized to provide customized packages to mega units of MSME category classified under Industry Promotion Policy-2025.

Assistance up to 40 percent will be given for investment promotion, renewable energy will be encouraged in new industries, 48 ​​percent assistance will be given to SC/ST and women entrepreneur units and 1.3 times assistance will be given in backward development blocks. As export promotion, the exporting unit will be given assistance up to 52% on investment, maximum assistance of Rs. 2 crore on freight for export and Rs. 50 lakh on certificate for export.

In the new policy, medium units will get 1.5 times subsidy for providing employment to more than 100 people, Rs. 5000 per month per employee for 5 years in employment generation sector and Rs. 13000 for skill development training. Assistance will be given for new sectors like MSME exchange, lean engineering, testing lab and technology transfer. For the first time in the policy, logistics, recycling, motor vehicle scrapping and R&D have also been included in the service sector. For the first time, special package will be given for medical device and footwear sector.

Approval of amendment in the rules for allotment of industrial land, building and management to MSMEs

The cabinet approved the amendment in the Madhya Pradesh MSME Industrial Land, Building Allotment and Management Rules-2021. According to the decision, the allotment of developed industrial plots and flatted industrial area/complex will be done through "e-bidding" method and the allotment of undeveloped land will be done by receiving applications in a transparent manner based on online process. Also, allotment will be done at a faster pace to the serious investor through a more simple and transparent process. The maintenance of industrial areas will be done by the Industry Association or any other agency.

Approval of Madhya Pradesh Start-up Policy and Implementation Plan-2025

The cabinet approved the Madhya Pradesh Start-up Policy and Implementation Plan-2025 to encourage start-ups in the state. Under the policy, provision has been made for financial and non-financial facilities, assistance and facilitation to start-ups and incubators. A mega incubation center will be developed and operated at a suitable place in the state under public-private partnership with leading institutions at national and international level and its satellite centers will also be established in other places of the state.

Under the Mukhyamantri Udyam Kranti Yojana, by providing collapse-free loans to start-ups through banks, they will be given coverage under the Central Government's 'Credit Guarantee Scheme for Start-ups' and reimbursement of guarantee fee payable at the prevailing rate (up to a maximum of 05 years) and interest subsidy reimbursement at the rate of 05 percent per annum on the disbursed loan (up to a maximum of 05 years). It is noteworthy that 10.2 jobs are being created per start-up in the state. 10 thousand start-ups are to be established under the policy. In this way, 1 lakh 2 thousand jobs will be created.

The Madhya Pradesh Startup Policy-2025 offers support at every stage of the startup lifecycle, including ideation, validation, early-stage, and growth. Under this policy, financial assistance of ₹10,000 per month will be provided to each startup as part of the Entrepreneur-in-Residence (EIR) program for up to 12 months. Additionally, a startup capital fund of ₹100 crore has been established, along with a seed grant of up to ₹30 lakh per startup. Other benefits include exemption from electricity duty, employment generation incentives, and reimbursement assistance on electricity tariffs.

The policy also focuses on creating working spaces and innovation-driven regional clusters, offering a 5% interest subsidy and loan guarantee fee reimbursement. Startups will receive support for digital marketing, event participation, and assistance under the Mukhyamantri Udyam Kranti Yojana. Efforts will be made to transform innovations into successful enterprises through acceleration programs and hackathons. A group of leading startup industry leaders and global investors in the Madhya Pradesh Startup Advisory Council will provide long-term stability to startups.

With the launch of the Madhya Pradesh Startup Policy and Implementation Plan-2025, economic empowerment and self-reliance will receive a strong boost. This policy aims to establish Madhya Pradesh as India's next major startup hub and a global center for innovation, which will be showcased at the Global Investors Summit in Bhopal. It represents a significant step toward realizing Prime Minister Narendra Modi’s vision of a developed India by 2047. With this new startup policy, Madhya Pradesh is ushering in a new era of progress, prosperity, and limitless opportunities.

Approval of Madhya Pradesh Civil Aviation Policy-2025

The Cabinet has approved the Madhya Pradesh Civil Aviation Policy-2025 in coordination with the UDAN (National Civil Aviation Promotion Policy) scheme of the Central Government. The policy aims to develop new air routes in Madhya Pradesh and maximize the potential of the tourism, religious, and industrial sectors by connecting major tourist and religious sites with other parts of the country and the world. This initiative is expected to foster business growth and create employment opportunities.

Madhya Pradesh, being geographically large and centrally located, holds significant potential in the industrial, tourism, and religious sectors. Under the policy, a modern, affordable, accessible, safe, and investment-friendly aviation ecosystem will be developed to accelerate the state's social and economic progress. Plans include the development of three MRO hubs in the future, along with the construction of an airstrip within a 75 km radius, an airport within a 150 km radius, and at least one concrete helipad within a 45 km radius at each tehsil level. By 2030, key tourist and religious sites will be connected with reliable and cost-effective air connectivity. Subsidy grants will be provided to private investors for setting up training institutes and aero sports training centers. Additionally, air cargo facilities will be developed to support the export of agricultural products from the state.

The policy also includes capital subsidies to promote ancillary aviation services. VAT on Aviation Turbine Fuel (ATF) for aircraft engaged in night parking in the state will be set at 1 percent. To strengthen capacity building and skill development, investment promotion assistance of up to 40% of the capital investment will be provided for establishing flight training institutes.

Encouraging the aviation sector will help promote the export of agricultural and perishable goods, boost manufacturing and e-commerce businesses, develop skilled human resources, and create direct and indirect employment opportunities. The Madhya Pradesh Civil Aviation Policy-2025 is a significant step toward realizing the vision of the National Civil Aviation Promotion Policy-2016, enhancing air connectivity and driving economic growth in the state.

Approval of Electric Vehicle Policy-2025

The Cabinet has also approved the Madhya Pradesh Electric Vehicle Policy-2025 with the objective of making electric vehicles the primary mode of transportation for the general public in the future. The policy includes incentives for two-wheelers, three-wheelers, electric cars, and electric buses, along with financial support for the establishment of charging stations. A Madhya Pradesh EV Promotion Board will also be constituted to oversee the policy’s implementation.

The policy aims to position Madhya Pradesh as an attractive destination for electric vehicle infrastructure and manufacturing industries. It focuses on developing electric vehicle charging infrastructure, creating skill development and employment opportunities in the sector, and fostering collaboration between government institutions, the private sector, research institutes, and social organizations.

Bhopal, Indore, Jabalpur, Gwalior, and Ujjain will be developed as model electric vehicle cities. The policy will establish a roadmap for promoting electric vehicles, set targets for vehicle registrations, and aims to electrify 80 percent of government vehicles by the end of the policy period. Financial incentives include exemptions in vehicle tax and registration fees, incentives for retrofitting, support for small, medium, and large charging stations, and incentives for service providers setting up battery swapping stations. All registered EVs will be issued green number plates in accordance with Government of India guidelines. Green plates with white lettering will be issued for personal use, while those with yellow lettering will be designated for commercial vehicles.

Green Zones and E-Mobility Zones will be developed within EV model cities exclusively for electric vehicles, including designated parking areas. These zones will also be established in tourist villages, religious and archaeological sites, technology centers, special economic zones, and commercial areas.

For charging infrastructure, at least one charging station will be installed every 20 kilometers along highways and major roads. Fast charging stations will be placed every 100 kilometers on highways for long-distance and heavy-duty electric vehicles. Additionally, each EV model city will have at least one charging station per square kilometer, and all petrol pumps will be equipped with an electric charging point by the end of the policy period.

The policy also supports research and development, skill development, and employment generation. A one-time grant of up to ₹2 crore will be provided for the establishment of a center of excellence and the procurement of research and testing equipment. The number of incubation centers for electric vehicle startups will be increased. The Madhya Pradesh EV Promotion Board will serve as the apex body for decision-making, issuing guidelines, and ensuring necessary coordination related to electric vehicle initiatives.

Approval of Biofuel Scheme-2025 to make India a leader in biofuel production

The Council of Ministers has approved the Biofuel Scheme-2025 under the Madhya Pradesh Renewable Energy Policy-2025, aiming to position the state as a leader in biofuel production. The scheme offers several benefits for biofuel manufacturing units and bioenergy plants, along with subsidies for agricultural equipment for farmer organizations. It also ensures the sale of biomass and fertilizers while developing a strong supply chain. Priority will be given to land allocation for establishing biofuel production facilities, and government land for biomass production will be available at an annual fee of 10% of the collector rate.

The Biofuel Scheme covers all aspects of fuel and production, including bio-CNG, biomass briquettes and pellets, and biodiesel. It also focuses on feedstock cultivation, production technology, distribution, and utilization. As a major incentive, biofuel units will receive a basic investment incentive of up to ₹1200 crore, along with a 50% subsidy of up to ₹5 crore for infrastructure development, including electricity, water, gas pipelines, roads, drainage, waste management systems (ETP, STP, pollution control equipment), and other necessary facilities. Electricity duty and energy development cess will be exempted for ten years. The Industrial Policy and Investment Promotion Department will provide a customized incentive package for investments exceeding ₹500 crore. Additionally, support will be provided for intellectual property rights and quality control measures.

The Biofuel Scheme is expected to not only strengthen biofuel production in the state but also promote the efficient use of agricultural and bio-waste for green energy generation. Biofuels play a crucial role in energy supply and reducing carbon emissions. By leveraging its agricultural strength and promoting innovation, the state is taking steps towards a greener and more sustainable future.

Madhya Pradesh has made significant progress in renewable energy over the past few years. The installed capacity, which was approximately 500 MW in 2012, has increased fourteenfold to over 7000 MW. While the state has seen substantial advancements in solar and wind energy, it is now focusing on utilizing agricultural residues, forest waste, unused grass, and urban waste to produce bio-CNG, briquettes, pellets, and biodiesel. These initiatives will be actively encouraged.

Hydrogen is also being explored as the energy of the future, opening new possibilities for advancement in this sector. These efforts will not only help conserve foreign exchange by reducing energy imports but also contribute to environmental protection. The policy reflects the state government's commitment to green energy and environmental sustainability.

Approval for leasing out Lake View Residency Hotel Bhopal

The cabinet has approved the giving of Lake View Residency Hotel, Bhopal on a 60-year lease in public-private partnership for development, operation, maintenance and management. The lease period can be extended once for the next 10 years on the same terms with mutual consent. According to the decision, approval has been given for a one-time increase in the lease period of 7.16 acres from Khasra No. 21/3 located at Shyamala Hills, executed by Collector Bhopal in favour of Madhya Pradesh Hotel Corporation Limited of Hotel Lake View Residency Bhopal, from the year 2042 to 60 years i.e. till the year 2102 and for the said lease to be subleased by MPSTDC/MPHCL in favour of a private investor.