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Madhya Pradesh AVGC-XR Policy 2025

A state policy published by the Department of Science and Technology, Government of Madhya Pradesh, with MPSEDC as nodal agency. It sets 2029 goals of 250 new or expanding AVGC-XR companies, 20,000 new jobs and 150 incubated start-ups. Only MPSEDC-registered companies whose Madhya Pradesh office draws at least half its workforce from the state can claim. The core package is a 25% capital subsidy up to ₹30 crore on fresh investment, employment assistance of INR 3,000 per new employee per month for a year (capped at ₹10 lakh per company), and three years of lease and bandwidth reimbursement. Production grants pay 25% of qualified production expenditure, with 80% of that spend required in the state: up to ₹50 lakh a year for animated films and ₹50 lakh for series, ₹50 lakh for VR/AR/VFX, ₹20 lakh for games, and ₹2 crore for international productions; treaty co-productions get 30% up to ₹2 crore. It also plans a 20-acre AVGC/Media park, with developer capex assistance up to ₹50 crore. The document states no total outlay and does not define the 'policy period' over which most of its caps and sanction limits run.

Key figures

Incentives & provisions

Eligibility
Only companies registered on the MPSEDC IT/ITeS portal can apply. The company, entity or satellite office must be registered in Madhya Pradesh, and its Madhya Pradesh registered office must employ at least 50% of its workforce from Madhya Pradesh. MPSEDC is the nodal agency.
Capex subsidy
25% capital investment subsidy, up to ₹30 crore, for fresh investments in the AVGC-XR sector made after the declaration of the policy. Eligible capex covers plant and machinery (computer hardware, software, other machinery), electrical installations, office equipment, furniture and fittings, building construction and civil works, and captive renewable energy equipment; land, dwelling units, site development, landscaping and vehicles are excluded.
Employment generation assistance
INR 3,000 per employee per month for the first year of employment, for new jobs only, capped at ₹10 lakh per company for the policy period.
Lease rental reimbursement
25% of lease rentals or ₹10 lakh a year, whichever is lower, for three years.
Internet bandwidth reimbursement
Up to ₹0.5 lakh a year for three years, based on actual charges paid to an ISP.
IP creation and protection
50% of patent filing costs, up to ₹5 lakh for a domestic patent and ₹20 lakh for an international patent, filed or granted within the policy period; at most five reimbursements per company.
Trade shows and events
Up to 30% of registration fees and air travel for trade shows, capped at INR 1 lakh for domestic and ₹10 lakh for international events per company per year; three sanctions per company in the policy period. Alternatively, state pavilions at listed events.
Quality certification
Up to 30% of certification costs, capped at INR 5 lakh domestic and ₹10 lakh international; three sanctions per company in the policy period.
Skilling and training
Private training institutes offering specialised AVGC-XR courses can be reimbursed up to 50% of the course fee, capped at ₹1 lakh per student or the Government of India Common Cost Norms, passed on as a fee discount. Companies are reimbursed up to 50% of course expenses at accredited Madhya Pradesh institutes, capped at ₹15 lakh per company for the policy period.
Production grant conditions
Production grants require Madhya Pradesh registration, MPSEDC registration and at least 50% of the workforce from Madhya Pradesh, and at least 80% of the project's qualified production expenditure (personnel, studio and office hire and utilities, equipment and software hire) incurred in Madhya Pradesh.
Animated film grant
25% of qualified production expenditure for animated films of at least 90 minutes, up to ₹50 lakh per company per year, three sanctions per company during the policy period, minimum QPE INR 30 lakh; own IP or service work.
Animated series grant
25% of QPE for series of at least ten episodes of six minutes or more, up to ₹50 lakh per company per year, 'limited to 3 sanctions per company per year during the policy period', minimum QPE INR 30 lakh.
VR/AR/VFX grant
Up to 25% of QPE, capped at ₹50 lakh per company during the policy period, three sanctions, minimum QPE INR 40 lakh.
Game development grant
Up to 25% of QPE, capped at ₹20 lakh, three sanctions per company, minimum QPE INR 40 lakh; the game must pass 2 lakh downloads across iOS, Google Play or Windows, or win or be nominated at a recognised gaming awards event.
International productions
Up to 25% of QPE for animated films and series, AR/VR/VFX and game art made for global audiences, capped at ₹2 crore per company, three sanctions, minimum QPE INR 80 lakh.
International co-productions
Up to 30% of QPE for official co-productions under India's bilateral audio-visual treaties, capped at ₹2 crore, two sanctions per company.
Mega projects
Customised incentive packages for projects with capex of at least ₹50 crore.
AVGC/Media park
A 20-acre park site to be identified through competitive bidding (PDF page 26). Standalone developers get subsidised land under the IT, ITeS and ESDM Investment Promotion Policy 2023 and capex assistance of 25% up to ₹50 crore, released in five instalments tied to construction and occupancy; 80% of built-up area must go to AVGC-XR units.
Studio-developed park
Viability gap funding of up to ₹50 crore (up to 25% of capex) for a studio or studio joint venture developing an AVGC-XR park, released in five instalments by project completion.
Land in IT parks
Government or industrial corporation land for studios, XR companies, skilling institutes and theme parks, with land rebates under the IT, ITeS and ESDM Investment Promotion Policy 2023.
Labs and Centre of Excellence
Four AVGC-XR training labs in fine arts colleges, and a PPP Centre of Excellence for animation, VFX, gaming and XR through MPSEDC.

Source: Department of Science and Technology, Government of Madhya Pradesh: Madhya Pradesh AVGC-XR Policy 2025 (policy booklet, nodal agency MPSEDC), published on the Invest MP portal. Terms are structured from the primary source and updated as the policy changes — this page always reflects the latest known version. (archived copy)