Madhya Pradesh Launches Logistics Scheme 2025

The Government of Madhya Pradesh has introduced the Madhya Pradesh Logistics Scheme 2025, a visionary initiative aimed at developing a robust logistics and warehousing ecosystem to drive economic growth and position the state as a premier logistics hub. This scheme, notified on February 24, 2025, provides a comprehensive operational framework to support enterprises and investors in establishing world-class logistics infrastructure.

Key Highlights of the Scheme

1. Policy Period and Scope 

The scheme is effective for the duration of the Madhya Pradesh Logistics Policy 2025. Enterprises commencing production after the policy’s notification date are eligible for benefits, provided their investment exceeds ₹125 crore.

2. Eligibility Criteria

To qualify for assistance under the scheme, enterprises must:

Be new units/projects commencing operations during the scheme’s operative period.
File an Intention to Invest proposal with MPIDC and obtain necessary registrations (GST, electricity connection, etc. ).
Ensure logistics parks and warehousing facilities are used exclusively for non-agricultural products.

3. Definitions

The scheme defines various logistics infrastructure categories, including:

Logistics Parks: Areas offering freight handling, storage, and distribution services.
Multi-Modal Logistics Parks (MMLPs): Integrated facilities for cargo aggregation, inter-modal transfer, and storage.
Inland Container Depots (ICDs): Dry ports with rail and road connectivity for import/export goods.
Air Freight Stations (AFS): Off-airport facilities for handling and storing cargo.
Private Freight Terminals (PFT): Bulk handling facilities for transport by road or rail.

4. Fiscal Incentives

The scheme offers a range of financial incentives to encourage investment in logistics infrastructure:

Investment Assistance

Logistics Parks, ICDs, and MMLPs:
- 30% assistance on Fixed Capital Investment (FCI) up to ₹75 crore.
- Disbursement in three installments based on project milestones.
Other Logistics Infrastructure (e.g., PFT, AFS, CFS):
- 30% assistance on FCI up to ₹25 crore.

Stamp Duty and Registration Fee Reimbursement 

100% reimbursement up to ₹5 crore for land purchased or leased.

External Infrastructure Development Assistance 

50% subsidy up to ₹5 crore for essential infrastructure like roads, power lines, drainage, and water pipelines.

Green Logistics Certification 

50% reimbursement of certification fees for Indian Green Building Council (IGBC) Gold and Platinum certifications, up to ₹20 lakh.

Conversion of Agricultural Warehouses 

40% reimbursement of conversion costs for agricultural warehouses converted into industrial warehouses, up to ₹1 crore.

5. Application Procedure

Investors must follow a structured process to avail benefits:

Submit an Intention to Invest application on the INVEST portal.
File a proposal for logistics infrastructure establishment with MPIDC.
Obtain approval from the State Level Empowered Committee (SLEC).
Submit claims for assistance post-Commencement of Operations Date (COD).

6. Other Conditions

Logistics facilities must commence operations within three years of approval and remain operational for at least ten years.
Investors cannot transfer ownership during the assistance period and for three years thereafter.
Compliance with Town and Country Planning guidelines is mandatory.

7. Appeals and Amendments 

Investors can appeal decisions made by SLEC to the Cabinet Committee on Investment Promotion (CCIP) within three months. The government reserves the right to amend, relax, or repeal provisions of the scheme.

8. Jurisdiction

Any disputes arising under the scheme will fall under the exclusive jurisdiction of courts in Madhya Pradesh.

Benefits of the Scheme

The Madhya Pradesh Logistics Scheme 2025 is designed to:

Attract investments in logistics and warehousing infrastructure.
Enhance the state’s competitiveness on national and global platforms.
Create employment opportunities and drive economic growth.
Promote sustainable practices through green certifications.

How to Apply 

Interested investors can visit the INVEST portal (invest.mp.gov.in) to submit applications and access detailed guidelines. The application process involves submitting project proposals, obtaining necessary approvals, and filing claims for financial assistance.

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Source: Government of MP

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