ITDC
Madhya Pradesh's Logistics Scheme 2025 is the rulebook that turns the state's Logistics Policy 2025 into money an investor can actually claim. The Department of Industrial Policy and Investment Promotion issued it by an order dated 1 May 2025, published in the Madhya Pradesh Gazette on 9 May 2025. It applies from 24 February 2025, the date the policy was issued, and the policy runs for five years or until a new policy replaces it.[1][2]
The scheme is often described as a "warehouse subsidy". Its text is narrower than that.
WHO CAN APPLY
The main investment assistance is open to two groups of projects, each with minimum land, road and investment thresholds. Fixed capital investment (FCI) is counted without the cost of land.
– Logistics parks, inland container depots (ICDs) and multi-modal logistics parks (MMLPs): 25 to 75 acres, with an approach road at least 12 metres wide and at least Rs 50 crore of FCI; or more than 75 acres, with an 18-metre road and Rs 100 crore.
– Private freight terminals or Gati Shakti cargo terminals, container freight stations, and air freight stations or air cargo complexes: 5 to 10 acres, with a 10-metre road and Rs 10 crore; 10 to 50 acres, with a 12-metre road and Rs 50 crore; or above 50 acres, with an 18-metre road and Rs 100 crore.
An ordinary stand-alone godown is not one of these categories. The only line written for existing warehouses is the conversion support described below. The scheme also defines warehousing as "industrial warehousing" for non-agricultural goods, and units that store primary agricultural produce are not eligible.
The applicant must be a new project that starts operations while the scheme is in force. It must have filed an Intention to Invest with the MP Industrial Development Corporation (MPIDC), hold an Industrial Entrepreneur Memorandum or Udyog Aadhaar filing, take a new electricity connection from the distribution company, and be registered under GST.
WHAT IT PAYS
Investment assistance: 30% of eligible FCI, up to a cap tied to the project's size. For parks, ICDs and MMLPs the cap is Rs 50 crore (25 to 75 acres) or Rs 75 crore (above 75 acres). For terminals, CFS and air cargo facilities it is Rs 5 crore (5 to 10 acres), Rs 15 crore (10 to 50 acres) or Rs 25 crore (above 50 acres).
The cap matters. In a hypothetical case, an 8-acre container freight station with Rs 20 crore of eligible FCI would work out to Rs 6 crore at 30%, but the cap for its size band is Rs 5 crore.
Only investment made between the date the proposal is submitted and project completion is counted. The money is released in three parts: 40% after construction is completed or operations begin, whichever is earlier; 30% after one year of operation; and the last 30% after two years. The later parts need an affidavit and GST returns certified by a chartered accountant. Operations are treated as having begun when the first consignment reaches the facility.
Stamp duty and registration fee: 100% reimbursement, up to Rs 5 crore, for land leased in a state government industrial area or private land bought for the project.
External infrastructure: on private land or undeveloped government land, 50% of the cost of an approach road from the main road, a power line, drainage and sewage connections and a water pipeline. The cap is Rs 5 crore for parks, ICDs and MMLPs, where rail connectivity is also covered, and Rs 3 crore for the other category.
Green certification: logistics parks and MMLPs with Indian Green Building Council Gold or Platinum certification can get back 50% of the fee, up to Rs 20 lakh.
CONVERTING AN AGRICULTURAL WAREHOUSE
A registered agricultural produce warehouse with a capacity of at least 10,000 tonnes can claim 40% of the cost of converting it into an industrial warehouse, up to Rs 1 crore. The converted building must meet Town and Country Planning norms. Eligible work includes dock levellers and reinforced loading platforms, industrial-grade flooring, lighting and ventilation, warehouse IT systems, and packaging and handling facilities. The claim must be filed within 180 days of starting commercial operation after conversion, which is the day the first consignment arrives or the first rent agreement is signed.
WHAT IS NOT COUNTED
FCI leaves out land and land development, pre-operative costs, interest during construction, consultancy fees, working-capital margin, commissioning, captive power plants, boundary walls and gates, housing and canteens, vehicles for outside transport, and used machinery. The only used-machinery exception is imported equipment with at least ten years of remaining life and compliance certification.
CONDITIONS THAT LAST A DECADE
– The facility must start operating within three years of approval. The MPIDC managing director can extend the completion deadline twice, by up to a year each time. If the deadline is missed, the approval is cancelled, and the investor has 180 days to appeal to the State Level Empowered Committee (SLEC).
– It must stay operational for at least ten years. If it shuts for more than six months in a row, the full assistance can be recovered with 10% annual penal interest.
– The location and the assisted assets cannot be changed. A change of ownership during the assistance period, or in the three years after it, needs the managing director's prior written approval.
– An investor eligible under more than one state policy can claim under only one, and state and central assistance together cannot exceed the actual FCI. Insolvent entities and government-declared defaulters are excluded.
– No interest is paid on delayed disbursements. Appeals against SLEC decisions go to the Cabinet Committee on Investment Promotion within three months.
HOW TO APPLY
1. File an Intention to Invest on the state's INVEST portal.
2. Submit the establishment proposal to MPIDC (Form 1), with a project report, layout plan, permissions and land documents.
3. The SLEC grants in-principle approval and fixes the timeline, the investment amount and the scope of the project.
4. Within 180 days of starting operations, file the claim (Form 2) with a work-completion certificate and certificates from a chartered accountant and a chartered engineer.
5. MPIDC sanctions the amount the SLEC finds eligible and pays it electronically.
ONE POINT TO CLARIFY
Clause 2.3 says logistics infrastructure with investment above Rs 125 crore "shall be implemented under this scheme", but it does not explain how smaller projects are routed. Anyone planning a project below that figure should ask MPIDC or the District Trade and Industries Centre which scheme and department will handle the claim.
The department can amend, relax or cancel the scheme at any time. Before committing capital, check that the version on invest.mp.gov.in is still current, and treat the figures above as upper limits that depend on approval, not as guaranteed payments.
Sources
[1] Madhya Pradesh Logistics Scheme 2025, with Gazette notification of 9 May 2025 (DIPIP / MPIDC): https://www.invest.mp.gov.in/wp-content/uploads/2025/07/Notification-with-MP-Logistic-Scheme_2025.pdf
[2] Madhya Pradesh Logistics Policy 2025: https://www.invest.mp.gov.in/wp-content/uploads/2025/02/Logistic-Policy_digital.pdf
Hashtags: #BusinessBeyondHeadlines #MadhyaPradesh #Logistics #Warehousing #MPIDC #IndustrialPolicy #MPLogisticsScheme2025 #MadhyaPradeshLogisticsPolicy #WarehouseConversionSubsidy #LogisticsParkIncentive
