Madhya Pradesh Chief Minister Mohan Yadav on Sunday, 1 November 2025, announced the formation of a new state-owned entity — the MSME Industrial Development Company (MSME-IDC) — dedicated exclusively to the promotion and development of Micro, Small, and Medium Enterprises (MSMEs) across the state. The announcement was made in Bhopal during a programme organised to mark the 71st Foundation Day of Madhya Pradesh.

What the MSME-IDC Will Do

The new company will focus on providing essential industrial infrastructure — including land — across all regions of the state. Chief Minister Yadav described it as a counterpart to the existing Madhya Pradesh Industrial Development Corporation, which caters to large-scale industries with investments exceeding ₹500 crore.

'Much like the Madhya Pradesh Industrial Development Corporation, which focuses on large-scale industries with investments exceeding Rs 500 crore, the new entity will be dedicated exclusively to the promotion and development of the MSME sector. It will be a state-owned company, fully held by the Madhya Pradesh government,' Chief Minister Yadav said.

Land for MSME units will be made available in every district of the state within two months, the Chief Minister said, signalling an accelerated rollout to attract industrial investment.

Industrial Parks and Private Investment

In a significant policy shift, Chief Minister Yadav announced that private investors will now be permitted to develop industrial parks, with the state government providing a grant of ₹50 lakh per hectare. This move is intended to ease the burden on state infrastructure spending while expanding industrial capacity.

He also noted that in 2025-26, 13 new industrial areas spanning 220 hectares have already been developed under the state's ongoing push. The programme also saw Chief Minister Yadav distribute Letters of Intent (LoIs) for industrial plot allotments, expected to attract an investment of around ₹83 crore and create 640 new jobs.

Incentives Disbursed to MSMEs and Startups

Chief Minister Yadav transferred over ₹450 crore in incentives to more than 900 MSME units and ₹47.80 crore to more than 120 startups with a single click at the event. Benefits under the Mukhyamantri Udyam Kranti Yojana were also distributed to various beneficiaries during the programme.

State MSME Minister Chetan Kashyap said the state has emerged as the top choice for investors following sustained outreach at various investor summits. He added that 1,250 plots have been allocated to entrepreneurs in the last year alone, with the figure set to reach 3,000 in the current financial year. He further assured that 30 new industrial areas will be developed by 2028, with plots available for 5,000 industrial units.

Broader Industrial Vision

Chief Minister Yadav framed the announcements within a larger vision of inclusive economic growth, stating that the celebration of the state's prosperity becomes meaningful only when growth is 'positive, robust and inclusive.' He credited Prime Minister Narendra Modi's leadership for the country's stable energy supply amid global disruptions and India's steady march toward energy self-reliance.

The Chief Minister held detailed discussions with young entrepreneurs at the event regarding their investments, future plans, and the potential for industrial development, assuring them of full state government support. With MSME-IDC in the pipeline, Madhya Pradesh is signalling a structural shift in how it approaches small industry facilitation — moving from ad hoc support to dedicated institutional infrastructure.