MP Approves Industrial Package for Bundelkhand

• 10 Dec 2025

Why in News? 

The Madhya Pradesh cabinet has sanctioned a special industrial incentive package aimed at transforming the economic landscape of the Bundelkhand region. 

• Chief Minister Mohan Yadav, presiding over the cabinet meeting in Khajuraho, emphasised industrial growth, employment expansion and improved infrastructure. 

Key Points 

• Investment: The package aims to attract Rs 24,240 crore in investments and generate nearly 29,000 direct jobs in the underdeveloped area. 
• Focus: The initiative centres on the Maswasi Grant industrial area in the Sagar division to accelerate regional industrialisation. 
• Incentives: Land allotment and lease rates have been fixed at Re 1 per sq metre, with development charges payable in 20 annual instalments and minimal maintenance fees. 
• Exemptions: The package offers 100% reimbursement of stamp duty and registration fees, along with a five-year electricity-duty exemption for new industrial units. 
• Policies: Large industries will operate under the Industrial Promotion Policy 2025, while MSMEs will follow the MSME Development Policy and Incentive Scheme 2025. 
• Exclusions: Cement manufacturing units have been specifically ruled out from availing benefits under this special incentive package. 
• Infrastructure: Additional decisions included improvements in irrigation systems and approval of funds for enhancing road connectivity across Bundelkhand.

Bundelkhand

• Bundelkhand is a geographical and cultural region spanning parts of Uttar Pradesh and Madhya Pradesh.  
• The semi-arid UP portion includes seven districts, Jhansi, Jalaun, Lalitpur, Mahoba, Hamirpur, Banda and Chitrakoot, while the MP portion includes districts such as Sagar, Chhatarpur, Tikamgarh, Damoh, Panna, Datia and Niwari.  
• It is a plateau region with scattered hills.  
• Jhansi is the largest city of Bundelkhand.  
• Historically known as Jejabhukti or Jejakabhukti during the Chandela period, the region came to be called Bundelkhand after the rise of the Bundela dynasty in the 13th–14th centuries.