DESTINATION MADHYA PRADESH

GLOBAL INVESTORS' MEET 2007

MULTIPLEX
POLICY

DEPARTMENT OF COMMERCIAL TAXES

(DEPARTMENT OF EXCISE)
website:www.mpexcise.org
GOVERNMENT OF MADHYA PRADESH
 MULTIPLEX POLICY OF GOVERNMENT
OF MADHYA PRADESH

Government of Madhya Pradesh announced its Policy on

Integrated Family Entertainment Multiplex Centers (Multiplex Complexes)
in the year 2001 with an objective of improving the quality
and facilities of cinema halls in the State and attracting investment in
this area so that worldclass entertainment is available to the people of the
State.

The State Multiplex Policy which became effective from 25.10.2001

provides for establishment of Multiplex Complexes within 10 k.m. of
municipal limits of four major cities of the State i.e. Bhopal, Indore, Gwalior
and Jabalpur with major tax and other concessions.

Multiplex complexes should involve a minimum capital investment of

Rupees 3 crores and should have the following minimum facilities:

1. Minimum three cinema-halls with a minimum combined capacity of

one thousand spectators, wherein three movies can be shown at a
time.
2. Video Game Arcade
3. Fast Food Centre
4. Place and facility for childrenfor play and entertainment.
5. Place for vehicle parking
 Multiplex complexes fulfilling the above conditions shall be eligible for
the following concessions:

g Entertainment Duty

Entertainment Duty shall be exempted from the first

date of first commercial exhibition of a movie in any
of the cinema-halls of such multiplex complexes to
the following extent :

Period of Exemption Extent of Exemption

First, Second and Third 100%

Year (Three years)
Fourth year 75%
Fifth year 50%

The amount of aforesaid exemption from Entertainment duty during

the period of the five years shall not exceed the amount of capital investment
made in the construction of the multiplex complex. If this ceiling is exceeded
before the expiry of the said period of five years, the tax shall become
payable from that date. Besides it shall be compulsory to run the multiplex
complex with all the aforesaid facilities for another five years, after the
completion of period of tax exemption. In case, this is not complied with, the
entire amount of tax exemption along with the interest shall be recovered.
 g Luxury Tax

The multiplex complexes shall be exempted completely from Luxury

Tax for a period of five years.

g Electricity Duty

The multiplex complexes shall be exempted completely from

Electricity Duty for a period of five years.

g Land allotment at concessional rates:

Minimum requirement of land for establishment of a multiplex

complex is fixed at 2.30 Sq.Mtr. per seat and such land should
not be situated in a densely populated area. District Collectors
have been authorized to allot Government land to such investors of
multiplex complexes on priority basis and at concessional rates.

The Multiplex Policy of the State has been extended to include all the
cities and towns of the State in addition to the four cities mentioned above
with effect from 10.11.2005. As per this policy, for other cities and towns
apart from the four cities mentioned earlier, the minimum capital investment
limit is fixed at Rupees two crores with a minimum of two cinema-halls with a
seating capacity of 500 spectators.

There is no limit on the number of multiplex complexes to be

established in a particular city/ town.
 The policy provides for eligibility for establishment of multiplex
complexes to any individual or a registered partnership firm or a public
limited company who fulfils the criteria laid down under this policy.

Interested party is required to submit its application in the prescribed

format to the District Collector through the District Excise Officer or the
Assistant Commissioner of Excise of the District in which the multiplex
complex is proposed to be established. Such applications shall be screened
by the District Committee constituted for this purpose under the
chairmanship of the Collector and submitted to the State Government
through the Excise Commissioner for sanction along with its
recommendations.

Under this Policy of the State Government four such multiplex

complexes namely Velocity, Sapna-Sangeeta (Inox), Treasure Island (PVR)
and Mangal City (Ad-labs) have been established in Indore City alone.
Proposals for establishment of such projects in Bhopal and Gwalior cities
are on the anvil.
DESTINATION MADHYA PRADESH
GLOBAL INVESTORS' MEET 2007

MULTIPLEX
POLICY

DEPARTMENT OF COMMERCIAL TAXES

(DEPARTMENT OF EXCISE)
website:www.mpexcise.org
GOVERNMENT OF MADHYA PRADESH