MP boosts Udyog Kranti Yojana outlay to Rs 28,000 crore

Madhya Pradesh Chief Minister Mohan Yadav on Monday disbursed over Rs 169 crore as financial assistance to industries and startups, while announcing a significant scale-up of the state’s flagship Mukhyamantri Udyog Kranti Yojana budget to RS 28,000 crore in the coming years.Presiding over an incentive distribution ceremony organised by the MSME Department, the Chief Minister said the move reflects the government’s strong commitment to accelerating industrial growth and supporting entrepreneurs across the state.

Madhya Pradesh CM Mohan Yadav disburses MSME incentives; to scale up Udyog Kranti Yojana budget to Rs 28,000 crorehttps://t.co/BNWGMsWiYF#Industry #MadhyaPradesh #MSMEs #ChiefMinister @DrMohanYadav51 #Startups #Investmentguruindia pic.twitter.com/hvPn97uNPC

— Investment Guru India (@InvGurInd) March 30, 2026

As part of the disbursement, Rs16.95 crore was released as Investment Assistance to 257 industrial units, while Rs8.6 crore was provided as administrative assistance. The government also cleared the final dividend of Rs8 crore for the Madhya Pradesh Laghu Udyog Nigam for the period 2020–2024. The first instalment of funds is being transferred directly to beneficiaries through Direct Benefit Transfer (DBT).
In addition, three industrial units were issued land allotment orders, while one unit received an assistance letter under the Chief Minister’s Enterprise Scheme. Each of these four units will also receive a grant of Rs5 lakh to support their operations.Highlighting reforms in the industrial ecosystem, Yadav said the land allotment process has now been fully digitised. The state recorded over 1,100 allotments in 2025 alone, a sharp rise compared to around 500 allotments made between 2019 and 2024.
The Chief Minister noted that Madhya Pradesh’s startup ecosystem continues to expand, with the number of startups reaching 7,200. Over Rs3,000 crore has been disbursed as Investment Promotion Assistance over the past two years, reflecting growing investor confidence.Under the Udyog Kranti Yojana, the state has already surpassed its annual target, covering 10,473 beneficiaries against the goal of 8,000—achieving 131 per cent of the target.
Announcing a major policy push, Yadav said the budget for industrial incentives, which stood at around Rs8,000 crore last year, will be increased substantially to Rs28,000 crore. He added that all pending subsidy backlogs since 2019 have been cleared, and fresh incentives will now be released on a quarterly basis to ensure timely support.The Chief Minister also declared the upcoming year as the ‘Year of Farmer Welfare’ and said the government will organise joint agriculture-industry conferences to promote food processing units. The initiative aims to enable value addition at the local level and help farmers secure better prices for their produce.