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Madhya Pradesh's AVGC-XR policy pays 25 per cent of studio capex up to ₹30 crore

Madhya Pradesh's published AVGC-XR Policy 2025 offers studios a 25 per cent capital subsidy capped at ₹30 crore, and sets its caps and sanction limits over a policy period it never defines [1]. Haryana's notified policy caps capital support at ₹10 crore a unit [2].

By AVGC-XR Desk ·

Madhya Pradesh's Department of Science and Technology published the AVGC-XR Policy 2025 with MPSEDC, the state electronics development corporation, as its nodal agency [3]. Amar Ujala reported the policy's launch on 31 January 2025, with a target of ₹2,000 crore of investment and more than 20,000 jobs [4]. The published document sets goals for 2029 of 250 new or expanding AVGC-XR companies, 20,000 new jobs and 150 incubated start-ups [5]. It states no investment target and no total outlay: its money is written as per-company, per-project and per-park ceilings [6].

The undefined policy period

Most of the policy's limits run over "the policy period", including the employment cap, the patent reimbursements and the sanction limit on every production grant, and the document never says how long that period is or when it starts [7]. Haryana's AVGC-XR notification, by contrast, is valid for five years from 27 May 2026 [8]. The Free Press Journal reported that the state released guidelines for four new policies, including AVGC-XR, at a conclave in Indore on 27 April 2025 [9].

Who can claim

Only companies registered on MPSEDC's IT/ITeS portal can apply, and the company's Madhya Pradesh office must draw at least half its workforce from the state [10]. Production grants add a spending test: at least 80 per cent of a project's qualified expenditure must be incurred in Madhya Pradesh [11].

Capital and running costs

The capital subsidy is 25 per cent of fresh investment made after the policy's declaration, up to ₹30 crore, and covers computer hardware, software, fit-out and building works but not land or vehicles [12]. Haryana caps its capital support at ₹10 crore a unit, at a 30 per cent rate [2].

Employment assistance is ₹3,000 per employee per month for a new job's first year, capped at ₹10 lakh per company for the policy period [13]. Lease rentals are reimbursed at 25 per cent or ₹10 lakh a year, whichever is lower, for three years, and internet bandwidth at up to ₹50,000 a year for three years [14].

Production grants

Animated films of at least 90 minutes get 25 per cent of qualified production expenditure, capped at ₹50 lakh per company per year, with a minimum qualifying spend of ₹30 lakh and three sanctions over the policy period [15]. Haryana pays 20 per cent on animated features of 60 minutes or more, up to ₹1 crore a film [16].

Animated series of at least ten six-minute episodes get the same 25 per cent and ₹50 lakh annual cap, but the series clause is "limited to 3 sanctions per company per year during the policy period" [17]. VR, AR and VFX projects get 25 per cent up to ₹50 lakh per company for the whole policy period, with a ₹40 lakh minimum spend [18].

Games get 25 per cent up to ₹20 lakh, with a ₹40 lakh minimum spend, and only once a game passes 2 lakh downloads on iOS, Google Play or Windows or wins or is nominated at a recognised gaming awards event [19]. Haryana caps game grants at ₹10 lakh a game [20]. International productions get 25 per cent up to ₹2 crore per company, and official treaty co-productions 30 per cent up to ₹2 crore [21].

The break-even points that follow are arithmetic on the policy's published rates and caps rather than figures it states. Twenty-five per cent of ₹120 crore is ₹30 crore, the capital-subsidy ceiling [12]. Twenty-five per cent of ₹2 crore is ₹50 lakh, the film ceiling [15].

Parks and mega projects

The state will pick a 20-acre site for an AVGC and media park by competitive bidding, and offers park developers capital assistance of 25 per cent up to ₹50 crore [22]. Projects with at least ₹50 crore of capital investment can be offered customised packages [23].

What the document leaves open

- How long the policy period runs, and from what date. - Whether the guidelines released in April 2025 fix the period, the application process or a budget. - Whether a company can take three series sanctions a year, or three in all, since the series clause says "per company per year during the policy period" [17]. - The overall cost: the document states no outlay [6].

Sources

  1. [1]invest.mp.gov.in
  2. [2]haryanaindustries.gov.in
  3. [3]invest.mp.gov.in
  4. [4]amarujala.com
  5. [5]invest.mp.gov.in
  6. [6]invest.mp.gov.in
  7. [7]invest.mp.gov.in
  8. [8]haryanaindustries.gov.in
  9. [9]freepressjournal.in
  10. [10]invest.mp.gov.in
  11. [11]invest.mp.gov.in
  12. [12]invest.mp.gov.in
  13. [13]invest.mp.gov.in
  14. [14]invest.mp.gov.in
  15. [15]invest.mp.gov.in
  16. [16]haryanaindustries.gov.in
  17. [17]invest.mp.gov.in
  18. [18]invest.mp.gov.in
  19. [19]invest.mp.gov.in
  20. [20]haryanaindustries.gov.in
  21. [21]invest.mp.gov.in
  22. [22]invest.mp.gov.in
  23. [23]invest.mp.gov.in

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