To avail benefits under this policy, the startups need to comply with all following conditions: 

• Have DPIIT recognition,
• Have MP based GST registration

INR 10,000per month for period of 1 year or till start-up reaches post-traction period (whichever is less), will be released as sustenance allowance after 3 months of joining a partner incubator.

The following shall be provided on the capital expenditure of the project- 

• Margin Money Assistance: max. 15% upto INR 12 lakhs
• Interest Subsidy: max. 5% (for SC/ST/OBC/women owned startups, 6%) upto INR 5 lakhs per year for a period of 7 years.

• Assistance on Investment Received: For a start-up that has received funds/investments from a financial institution recognized by SEBI (Security and Exchange Board of India)/RBI, assistance will be given at the rate of 15% maximum upto 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 this context, assistance of Rs. 5 lakh will be given to the concerned incubators located in Madhya Pradesh. Additional 20 percent assistance to Startups set up by Women.
• 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 startup established in the state.

Provisions will be made in the Madhya Pradesh Store Purchase and Service Procurement Rules, 2015 (as amended from time to time) for institutional marketing assistance to start-ups in the state as follows –

• Exemption from the conditions/parameters related to experience and turnover will be given to the start-up enterprises participating in the government tender up to Rs.1 crore. For government tender above Rs 1 crore, the concerned department can make provision for procurement of services/products separately from startups if it deems fit.
• Proof of Concept for Start-ups will be accepted in the context of Tenders (NITs) / Request for Proposal (RFP) for service acquisition above Rs.1 Crore. Provided that there shall be no change in the conditions of quality of service or product and other essential qualifications under the aforesaid provision.
• All the Tenders (NIT) / Request for Proposal (RFP) of the State Government will be exempted from Security/ Earnest Money Deposit (EMD). Ø
• Other - State government corporations and key departments will be linked to the TReDS Platform (Trade Receivable Discounting System) authorized by the Reserve Bank of India as far as possible, so that the start-ups do not face liquidity crunch.

• Reimbursement up to 50% or INR 1 lakhs (whichever is less) for participation fee & accommodation for maximum 2 members of a startup once in policy period. 
• For SC/ST/OBC/women owned startups, reimbursement up to 50% or INR 1.5 lakhs (whichever is less) for maximum 3 members of a startup once in policy period.

• 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.

Special Financial Assistance will be provided to the selected concept for redressal of four high-impact economic-social problems of the state. For this, concepts will be invited from all types of institutions (including Start-ups) and they will be circulated to all the concerned departments for their views. The concepts on the recommendation of the departments will be placed before the Screening/Selection and Empowered Committee constituted in this context under the chairmanship of the Chief Secretary. The committee will select four best concepts based on the specificity, merits and demerits of the above concepts and problem-solving ability. For evaluation and monitoring of selected start-ups, a State Level Evaluation and Monitoring Committee will be constituted under the chairmanship of the Principal Secretary of the concerned department. The nature of assistance will be as follows –

• Grant up to Rs.1 crore, which will be provided in maximum four phases or as decided by the competent committee for this purpose. The selected start-ups will be assessed, monitored and evaluated by the competent committee on the basis of the work done by them.
• Exemption or reimbursement and ex-post factor clearance from all necessary license/consent charges.
• Procurement Assistance in state for two years. If found suitable, the provisions of Madhya Pradesh Store Purchase and Service Procurement Rules, 2015 (with amendments from time to time) can be relaxed.
• Utilization of facilities, office space and meeting arrangements with office support available in Atal Bihari Bajpai Institute of Good Governance and Policy Analysis, Bhopal.
• If a product-based start-up is selected, then it will also be able to get the benefits of the facilities provided for product-based start-ups in the policy.