Resources

Maharashtra - Package Scheme of Incentives 2019

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 / Diversification 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 Government’s latest the "Package Scheme of Incentives 2019 ( PSI 2019) offers several fiscal benefits including Stamp Duty Exemption, Interest Subsidy, Industrial Promotion Subsidy by way of SGST Refund etc. The highlights are as under:

The PSI – 2019 will be in operation from the 1st April 2019 up to 31st March, 2024

1. Coverageunder thePSI -2019

The following categories are eligible for incentives underthePSI-2019

• Industries listed in the First Schedule of the Industries (Development and Regulation) Act,1951,as amended from time to time
• Manufacturing Enterprises as defined in the Micro, Small and Medium Enterprises Development Act,2006.(MSMED Act,2006)
• Information Technology Manufacturing Units
• Bio-technology Manufacturing Units
• Mechanized, Food/ AgroProcessing Industries in the following sectors:
  • Dairy, Fruit and Vegetable Processing.
  • Grain Processing.
  • Fish/ Meat/ Poultry Processing.
  • Consumer foods including Packed foods
  • Non alcoholic beverages from fruits and vegetables.

Classification of Areas for PSI-2019

For the purposes of the PSI- 2019, detailed taluka-wise classification of different areas of the State as Group, A/B/C/D/D+ etc.,on the basis of their level of industrial development.

2. Eligibility Criteria

(i) Micro, Small & Medium Manufacturing Enterprises (MSMEs) and Small Industries MSMEs as defined in MSMED Act, 2006 GoI's extraordinary gazette dated 30th September, 2006 with total Gross Fixed Capital Investment (FCI)uptoRs.50crores.*

Large Scale Industries

Mega Projects / Ultra Mega Projects

Financial Incentives

The basket of financial incentives consists of

• Industrial Promotion Subsidy: Certain percentage of Gross State Goods & Services Tax (SGST) payable by theunit on the first sale of eligible products billed and delivered within Maharashtra is refunded in the form of subsidy
• Interest Subsidy: The amount subsidy will be effective rate of interest, after deducting the interest subsidy receivable under any other scheme than PSI 19 and the penal/compound interestor5 % per annum, whichever is less.
• Electricity Duty Exemption
• Waiver of stamp duty
• Power Tariff Subsidy: Rs 1 / 0.50 per unit. Only for eligible new MSME units in specified areas

Besides above, additional incentives are given to Expansion Projects of MSMEs so as to promote quality competitiveness, Zero Defect Zero Effect (ZED scheme),Research & Development ,technology up-gradation, water & energy conservation, cleaner production measures and credit rating.

The quantum of incentives depends on category of eligible unit, its location and percentage of investment in fixed capital investment. The details are as under:

Table3–Basket of Incentives for MSMEs

Industrial Promotion Subsidy (IPS) will be on 100 % Gross State Goods & Services Tax (SGST) payable by theunit on the first sale of eligible products billed and delivered within Maharashtra. The modalities for disbursement of incentives shall be as per the guidelines issued videGR dated 12.06.2018, 20.12.2018 and 08.03.2019 and the guide lines issued from time to time. Interest Subsidy

Exemption from Electricity Duty available to all Eligible New Units in Group C, D, and D+ areas, No-Industry District(s), Aspirational Districts and Naxalism affected Area for period of eligibility. In Group A and B areas, only eligible 100% Export Oriented Units (EOUs), Information Technology Manufacturing Units and Bio-Technology Manufacturing units will also be exempted from payment of Electricity Duty for a period of 7 Years.

Waiver of Stamp Duty: In Group A and B areas, stamp duty exemption would be available to BT Manufacturing and IT Manufacturing Units @ 100% and @75% in Public IT/BT park and Private IT/BT park respectively. In rest of the state it will be at 100%

Basket of Incentives for LSI and Spl. LSI Units/Projects

Industrial Promotion Subsidy for Large Scale Industries AND Special LSIs

Eligible LSI units and Special LSI units shall be offered Investment Promotion Subsidy (IPS) on 50 % and 40% ofGross SGST payable by the unit on the first sale of eligible product(s) billed and delivered with in Maharashtra respectively

However, units falling under this category located in "A"&"B" Zones will not be eligible for Incentives.

Exemption from Electricity Duty

In Group A and B areas,only eligible 100% Export Oriented Units (EOUs), Information Technology Manufacturing Units and Bio-Technology Manufacturing units will also be exempted from payment of Electricity Duty for a period of 7 Years. All other eligible units in rest of state will get exemption for applicable eligibility period

Waiver of Stamp Duty

In Group A and B areas, stamp duty exemption would be available to BT Manufacturing and IT Manufacturing Units @ 100% and @75% in Public IT/BT park and Private IT/BT park respectively. In rest of the state, the exemption will be at 100%

In respect of Expansion / Diversification Units in these category, the incentives will be equivalent to 80% of the incentives admissible for New Units. The eligibility period for availing of the incentives will however be reduced by one year than that admissible to a New Unit.

Mega projects/ Ultra-Mega projects

The template for quantum of incentives for Mega Projects and Ultra Mega Projects shallbe decided by the High Power Committee under the chairmanship of the Chief Secretary,Government of Maharashtra. However, the Cabinet Sub Committee for mega projects, under the chairmanship of the Chief Minister of Maharashtra will have the powers to sanction customized package of incentives and even offer special / extra incentives for prestigious Mega Projects I Ultra Mega Projects, on a case to case basis with recommendation of High Power Committee.