For Start-ups and Incubators established in the state:

• Assistance on investment received - For a start-up that has received funds/investments from a financial institution recognized by SEBI (Securities and Exchange Board of India)/RBI, assistance will be given at the rate of 15% maximum up to Rs.15 lakh, of the first investment received. This assistance will be payable at the rate of 15% separately for each of the investments received over a maximum of four stages during the life of the start-up. In the above context, assistance of Rs. 5 lakh will be given to the concerned incubators located in Madhya Pradesh.
• Additional 20 percent assistance to Start-ups set up by Women.
• Event Organizing Assistance – Assistance of Rs. 5 lakh per event to incubators located in Madhya Pradesh for organizing events related to start-ups not exceeding Rs. 20 lakh per annum.
• Incubation Upgradation Assistance - One time assistance of Rs.5 lakhs for the up-gradation of Incubators, but to avail this facility, each Incubator will have to increase its existing seat capacity by an additional 20%. This facility will be available only once in the entire life of the incubator.
• Lease Rental Assistance – 50% up to a maximum of Rs. 5000/- per month lease rental assistance for three years, on the rent paid per month for the workspace taken on lease by the startups. The said assistance will also be available to the product-based startups set up in industrial areas/parks/clusters owned or aided by the State Government, on the lease rent and maintenance charges paid by them on the plot/shed/constructed space taken on lease. Provided that the said assistance shall not, under any circumstances, exceed 50% of the amount paid in the above items, subject to a maximum of Rs. 5000/- per month and for a period not exceeding three years.
• Patent Assistance - Maximum assistance of Rs.5 lakh for obtaining a patent subject to the condition that the patent is obtained for a start-up established in the state.

Special financial assistance and support for Product-based start-ups:

• Concurrent License/Consent facility for one year.
• Facility to use the required machine in MSME Technology Centre, Bhopal and Indore.
• Training Expenditure Reimbursement – In view of the need of technical and skilled workers to start-ups, the assistance of reimbursement of expenditure for skill development and training will be given to a maximum of 25 employees per new employee Rs 13000 per year for three years. This assistance will be available only to the employees domiciled in Madhya Pradesh.
• Employment Generation Assistance - All the new employees appointed by the employer in the product-based start-up unit in the first three years from the date of commencement of commercial production will be eligible to get the benefit of assistance of Rs.5000 per employee per month. The assistance period will be maximum 3 years and will be given to maximum 25 employees only. This assistance will be limited to a period of 5 years from the date of commencement of commercial production in the unit. This means that the new employee appointed in the third year will be eligible for employment generation assistance for the next two years from the date of his appointment. The said assistance will be subject to the following conditions:

If the above condition is not fulfilled, the employment generation assistance being provided to the unit will be deducted proportionately.

• Exemption on Electricity Duty - All eligible new units having new electricity connection shall be exempted from electricity duty for 3 years from the date of connection.
• Concession in Electricity Tariff - Supply of electricity in the project on new electricity connection at a fixed rate of Rs.5 per unit for 3 years from the date of commercial production in the unit.
• The benefits of the facilities provided in the prevailing MSME Development Policy, will be available subject to the conditions.

To view the process flow of financial assistance for StartUp MP, Click Here to view.