Industrial Subsidies/Incentives

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A subsidy or government incentive is a form of financial aid or support extended to an economic sector generally with the aim of promoting economic and social policy. In order to encourage the dispersal of Industries to lesser developed areas, Government has been giving subsidies to new/expansion/ Diversification Industrial units. State and Central governments subsidy schemes are available as per eligibility of unit.

State Government Subsidy

The state Government has recently declared the New Industrial Policy, Package Scheme of Incentives 2019 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. Maharashtra intents to be a major contributor to Nations Economy, by strengthening its numero Uno position and “Magnetic Maharashtra” brand with its progressive vision focused on accelerated industrial growth and sustainable development. The policy envisages grant of fiscal and non-fiscal incentives to the Industrial units with a view to help the units achieve higher, sustainable and inclusive economic growth with emphasis on balanced regional development and employment generation through greater Private and Public Investment in industrial sector.

Earlier it was Package Scheme of Incentives-2013 for the period 2013 to 2019 under which many industries had taken benefits which has been amended after with declaration of new Industrial Policy-2019

Introduce a new “Package Scheme of Incentives 2019", containing details of eligibility criteria, quantum of incentives and monitoring mechanism for administering the incentives during the period from 1st April, 2019 to 31 March, 2024 or till the new Package Scheme of Incentives comes into force.

Package Scheme of Incentives (PSI) 2019 - Maharashtra State government is providing basket of incentives, the total quantum of benefits are almost 30% to 100% of fix Investment in Industrial project. The percentage of benefits depends on zone of your unit where it located. Please note -Taluka wise zones had been declared.

Click on link for zone wise Taluka

PSI – 2019

1st April 2019 up to 31st March, 2024.

ELIGIBAL INVESTMENT (INVESTMENT ACCEPTED AFTER 1ST APRIL 2019)

  1. LAND
  2. BUILDING
  3. PLANT & MACHINERY
  4. COST OF DEVELOPMENT
  5. TOOLS AND EQUIPMENT
  6. ELECTRIC INSTALLATION

MSME INDUSTRIES

New and Expansion MSME/LSI Units will eligible for a basket of incentives. The total quantum of which will be linked to the Fixed Capital Investment Cost.

TALUKA / AREA / ZONE

MAXIMUM CEILING AS % OF FIXED INVESTMENT

ELIGIBILITY PERIOD (YEARS)

MICRO, SMALL & MEDIUM ENTERPRISES

MICRO, SMALL & MEDIUM ENTERPRISES

 

NEW

EXP

NEW

EXP

A

--

 

-

-

-

B

30%

24%

7

6

C

40%

32%

7

6

D

50%

40%

10

9

D+

60%

48%

10

9

VIDHARBH, MARATHWADA, SINDHUDURG, DHULE, RATNAGIRI.

80%

64%

10

9

No industrial Zone, Naxalism affected area, Osmanabad, Gadchiroli, Washim and Nandurbar

100%

80%

10

9

 

 

 

 

 


LSI /SPECIAL LSI INDUSTRIES

New/Expansion LSI/Special LSI Units will eligible for a basket of incentives the total quantum of which will be linked to the Fixed Capital

TALUKA / AREA / ZONE

QUALIFYING CRETERIA

MAXIMUM CEILING OF BASKET AS %OF FIXED CAPITAL INVESTMENT

INCENTIVE PERIOD IN YEARS

MINIMUM FIX CAPITAL INVESTMENT

MINIMUM DIRECT EMPLOYMENT

     

NEW

EXP

NEW

EXP

A and B

 (Only LSI)

750

1000

25%

20%

7

6

C

500

750

40%

32%

7

6

D

250

500

60%

48%

7

6

D+

150

400

70%

56%

7

6

VIDHARBH, MARATHWADA, SINDHUDURG, DHULE, RATNAGIRI.

100

300

80%

64%

9

8

No industrial Zone, Naxalism affected area, Osmanabad, Gadchiroli, Washim and Nandurbar

100

250

100%

80%

9

8


Subsidies /Incentives

1. Industrial Promotion Subsidy: (IPS)

A) Micro & Small, Medium Enterprises / SLSI/ LSI (including IT/ BT units): New and expansion projects, which are set up in these categories in different parts of the State, will be eligible for Industrial Promotion Subsidy (IPS). The quantum of subsidy will be linked to the Fixed Capital Investment as follows

@ Eligible Micro, Small & Medium enterprises shall be offered Industrial Promotion Subsidy (IPS) on 100 % Gross State Goods & Services Tax (SGST) payable by the Unit.

@ Eligible LSI units shall be offered Investment Promotion Subsidy (IPS) on 50 % of

Gross SGST payable by the unit.
@ Eligible Special LSI units shall be offered Industrial Promotion Subsidy (IPS) @ 40 % Of NET SGST paid by the unit.

INTEREST SUBSIDY

All eligible New Micro, Small, Medium Manufacturing industries.

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. 5% interest subsidy on term loan only. The quantum of interest subsidy payable every year will not exceed the bills paid for electricity consumed during the relevant year.

Exemption from Electricity Duty –

All Eligible New Units in Group C, D, D+ and no industrial district areas will be exempted from payment of Electricity Duty during eligibility period of subsidy benefits.

In A and B areas only 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

New Units as well as Units undertaking Expansion/ Diversification will be exempted from payment of Stamp duty during the Investment period in Group “C, D, D+ Zone for acquiring land (including lease rights and sale certificate ) and for loan purpose.

Power Tariff Subsidy

Eligible New Micro, Small, and Medium Enterprises (MSME) will be eligible for power tariff subsidy. The subsidy will be 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, No Industry Districts, Naxalism Affected Areas and Aspirational Districts 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 zone A will not be eligible for this incentive.

Incentives for Strengthening MSME

The followings incentives shall be admissible to the MSMEs, so as to promote Quality Competitiveness, Research & Development, and Technology Up gradation, Water & Energy Conservation, Cleaner Production Measures and Credit Rating

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

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

(iii) 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.

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

Mega Projects / Ultra Mega Projects: - Industrial Units satisfying the minimum threshold limits of Fixed Capital Investment or Direct Employment prescribed in the following table shall be classified as Mega Projects/ Ultra Mega Projects.


TYPE OF UNIT TALUKA / AREA CLASSIFICATION MINIMUM FIXED CAPITAL INVESTMENT(INR CRORE) MINIMUM DIRECT EMPLOYMENT (NOS)
MEGA PROJECT A & B 1500 2000
C 1000 1500
D 750 1000
D+ 500 750
VIDHARBHA, MARATHWADA, RATNAGIRI, SINDHUDURG, DHULE 350 500
NO INDUSTRY DISTRICT, NAXALISM AFFECTED AREAS AND ASPIRATIONAL DISTRICT 200 350
ULTRA MEGA PROJECT ENTIRE STATE 4000 4000

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 will 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 with recommendation of High Power Committee.


Click on link for zone wise Taluka