• Posted on: 26 February 2016
  • By: admin

In order to encourage the dispersal of industries to lesser developed areas of the State, the Government has been giving package of incentives to New Industrial Units / Expansion Units set up in the developing regions of the State since 1964 under a Scheme popularly known as the “Package Scheme of Incentives.” 

The State has recently declared the new Industrial Policy -2013 to ensure sustained industrial growth through various innovative initiatives so as to further improve the conducive industrial climate in the State and to provide global competitive edge to the industries in the State. 

The PSI -2013, as may be amended by the Government from time to time, shall remain in operation from the 1st April 2013 up to 31st March,2018.

 

Packaged Scheme of Incentives 2013


Classification of Areas for PSI-2013 

For the purposes of the PSI- 2013, detailed talukawise classification of different areas of the State as Group, A /B/ C/ D/ D +  on the basis of their level of industrial development.


(i) Group A: Denotes Industrially developed areas

(ii) Group B: Denotes Areas where some industrial development has taken place, but are less developed than the areas under Group A.

(iii) Group C: Denotes Areas, which are less developed than those covered under Group B.  

(iv) Group D: Denotes the lesser-developed areas of the State, not covered under Group A/ Group B/ Group C.

(v) Group D+: Denotes the least developed areas, not covered under Group A/Group B/Group C/Group D.

(vi) No Industry District: Denotes District having no industries and not covered under Group A / B/ C/ D & D+ .

vii) Naxalism Affected Area : Denotes Area affected by naxalism.


Ultra Mega and Mega Units


Type of unit

Taluka/ Area Classification

Minimum Fixed Capital Investment (Rs. Crore)

Minimum Direct Employment(Nos.)

Mega Project

A & B

750

1,500

C

500

1,000

D & D+

250

500

No Industry Districts & Naxalism Affected Area

100

250

Ultra Mega Project

Entire state

1,500

3,000

 

Mega projects based on employment criteria shall be required to maintain the qualifying direct employment throughout the year and 75% of such employees should be local persons.

Minimum Direct Employment prescribed in the table above should be created within a period of two years from the date of commercial production.

The investment in Captive Power Plant shall not be considered for determining the qualifying criteria for eligibility as Mega Project/Ultra Mega Project.


IMPLEMENTING AGENCIES FOR IMPLEMENTATION OF PSI-2013 

1) Micro & Small Manufacturing Enterprises and Cold Storages and processing units mentioned wherein investment in equipments is at par with Micro and Small Manufacturing Enterprises in 

a) Mumbai and Mumbai sub-urban Districts : - The Joint Director of Industries (Mumbai Metropolitan Region) [JDI (MMR)] 

b) All other Districts: - District Industries Centre (DICs)


2) Medium Manufacturing Enterprises and Cold Storages and processing units wherein investment in equipments is at par with the Medium Manufacturing Enterprises in

a) Mumbai and Mumbai Sub-urban Districts:-  The Joint Director of Industries (Mumbai Metropolitan Region) [JDI (MMR)]

b) Regions:- The Regional Joint Directors of respective Regions

c) Nanded SubRegion  :-Superintending Industries Officer, Nanded Sub –Region


3) Large Scale Industries (LSI) / Mega Projects /Ultra Mega Projects and Cold Storages and processing units where in Entire State :- Directorate of Industries, Government of Maharashtra  

 

FINANCIAL INCENTIVES FOR MSMEs/LSIs UNDER PSI-2013

 

Talulka/Area

Ceiling as % of Fixed Capital Investment

No. of Years

 

Micro, Small & Medium Enterprises

LSI

Micro, Small & Medium Enterprises

LSI

A

-

-

7

7

B

20

-

7

7

C

40

30

7

7

D

70

40

10

7

D+

80

50

10

7

No Industry District

 

90

70

10

7

Naxalism Affected Area

100

80

10

7

 

The total quantum of incentives for the food /agro processing units covered in will be 10% over and above the limits mentioned above and such units will get one more year of eligibility to avail of the incentives.

 

Existing/New Micro, Small and Medium Manufacturing Enterprises, LSI (including Manufacturing IT/BT) Units, qualifying as Expansion/Diversification Units, will also be eligible to get the Incentives for Expansion /Diversification, equivalent to 75% of the incentives admissible for New Units. The eligibility period for availing of the incentives will be reduced by one year in case of Expansion/Diversification Units.

 

Industrial Promotion Subsidy (IPS) for MSMEs

Taluka/Area Classification

The quantum of Industrial Promotion Subsidy Every Year

Naxalism Affected Area

VAT on local sales minus Input Tax Credit (ITC) or zero whichever is more + CST payable + 100% of ITC

No Industries District

VAT on local sales minus ITC or zero whichever is more + CST payable + 75% of ITC

Entire Vidarbha and Marathwada

VAT on local sales minus ITC or zero whichever is more + CST payable + 65% of ITC

Group D+ Taluka

VAT on local sales minus ITC or zero whichever is more + CST payable + 50% of ITC

Group D Taluka

VAT on local sales minus ITC or zero whichever is more + CST payable + 40% of ITC

Group C Taluka

VAT on local sales minus ITC or zero whichever is more + CST payable + 30% of ITC

Group B Taluka

VAT on local sales minus ITC or zero whichever is more + CST payable + 20% of ITC

 

 

Industrial Promotion Subsidy for Large Scale Industries

Taluka/Area Classification

The quantum of Industrial Promotion Subsidy Every Year

Naxalism Affected Area

100% VAT on local sales minus Input Tax Credit (ITC) or zero whichever is more + CST payable

No Industries Districts, Vidarbha and Marathwada

90% VAT on local sales minus ITC or zero whichever is more + CST payable

Group D+ Taluka

80% VAT on local sales minus ITC or zero whichever is more + CST payable

Group D Taluka

70% VAT on local sales minus ITC or zero whichever is more + CST payable

Group C Taluka

60% VAT on local sales minus ITC or zero whichever is more + CST payable

 

Interest Subsidy

MSMEs other than Group A area:

The Interest Subsidy will be payable only on the interest actually paid to the Banks and Public Financial Institutions on the amount of term loans taken for acquisition of Fixed Assets. T

 

he amount of interest subsidy will be calculated @ effective rate of interest, after deducting the interest subsidy receivable from any institution or under any Govt. of India Scheme and the penal/compound interest or 5 % per annum, whichever is lesser. 


Exemption from Electricity Duty

All Eligible New Units in Group C, D, and D+ areas and No-Industry District(s) and Naxalism affected Area- eligibility period not exceeding 15 years.

In Group A and B areas, 100% Export Oriented  Units (EOUs), Information Technology Manufacturing Units and Bio-Technology Manufacturing units will be exempted

from payment of Electricity Duty for a period of 7 Years. 


Waiver of Stamp Duty

New Units as well as Units undertaking Expansion/ Diversification (including Mega and Ultra Mega Projects) will be exempted from payment of Stamp duty during the Investment period in Group “C, D, D+ Talukas, No Industry Districts and Naxalism affected areas.

 In Group A and B areas, stamp duty exemption would be available as given below:

 BT Manufacturing and IT Manufacturing Units in Public Parks : 100%

 BT Manufacturing and IT Manufacturing Units in Private Parks : 75%

 Mega Projects - 50% for first conveyance deed only. 


Power Tariff Subsidy

Eligible New Micro, Small and Medium Enterprises (MSME) will be eligible to the tune of Rs 1/- per unit for the Units located in Vidarbha, Marathwada, North Maharashtra and the Districts of Raigad, Ratnagiri and Sindhudurg in Kokan Region and Rs 0.50 per unit for the Units in other areas of the State for a period of 3 years from the date of commencement of commercial production, for the energy consumed and paid.

Units in Group A not eligible.


Incentives to MSME & Large Industries. 

New MSMEs and Expansion thereof in all categories of areas:

5% subsidy on capital equipment for Technology Up –gradation, subject to a maximum of Rs.25 lacs

75 % subsidy on the expenses incurred on quality certification limited to Rs. 1 Lakh 

25% subsidy on capital equipment for cleaner production measures ,limited to Rs.5 Lakhs

75 % subsidy on the expenses incurred on patent registration limited to Rs.10 Lakh for the National patents and Rs. 20 lakh for the International patents.

75% of cost of water audit limited to Rs. 1.00 lakh.

75% of cost of energy audit limited to Rs. 2.00 lakh.

50% of the cost of Capital Equipment under the measures to conserve/recycle water, limited to Rs. 5 lakh

50% of the cost of Capital Equipment for improving energy Efficiency, limited to Rs. 5 lakh. 


Incentives for Credit Rating of MSMEs (in all categories of areas)

75% of the cost of carrying out Credit Rating by SIDBI/ Government accredited Credit Rating Agency, limited to Rs. 40,000.

 

INCENTIVES FOR MEGA PROJECTS/ ULTRA MEGA PROJECTS

The quantum of incentives for Mega Projects and Ultra Mega Projects shall be decided by the High Power Committee under the chairmanship of the Chief Secretary, Government of Maharashtra on a case to case basis. However the Cabinet Sub Committee for Industry, under the chairmanship of the Chief Minister of Maharashtra have the powers to sanction customized package of incentives and even offer special / extra incentives for prestigious Mega Projects / Ultra Mega Projects, on a case to case basis. 


Quantum of Benefits

The amount of incentives to be disbursed to the MSMEs and LSI Units every year will be limited to the total quantum of incentives divided by the number of years as per the applicable Eligibility period with the provision of carrying forward the differential between the actual sanctioned amount for a given year and the yearly disbursement limit. 


For Mega Projects/ Ultra Mega Projects, if the E.C. Period is more than 10 years, the yearly limit on disbursement amount shall be equal to 1/10 of the total quantum of incentives or Industrial Promotion Subsidy sanctioned for that year whichever is less. The Carry forward principle will be applicable. The balance quantum of incentives will be allowed to be availed of after 10 years with yearly cap as above. Proportionate quantum of incentives will be calculated for a part of the year. 


PROCEDURE FOR APPLICATION FOR APPLICATION UNDER PSI-2013

An application for eligibility under the PSI 2013 Scheme shall be submitted to the Implementing Agency by an Eligible Unit only after it has taken all the Effective Steps but not later than the 31st March, 2018. It shall be supported by documentary evidence with regard to completion of the Effective Steps. 


For claiming eligibility under the PSI-2013, any New/Expansion/ Diversification, Eligible Unit shall commence the commercial production and also acquire the fixed assets at site, having paid for the same, and paid for it within the investment period. The Investment Period for Micro, Small and Medium manufacturing Enterprises will be three years, and for the LSI units, four years. For Mega Projects /Ultra Mega Projects, the Investment period will be five years from the date of application or such greater period as may be approved by the “High Power Committee” or the “Cabinet Sub Committee” on case to case basis.