Maharastra – Industrial Policy / Package Scheme of Incentives (PSI) 2019 For Large Scale Industries

Maharastra – Industrial Policy / Package Scheme of Incentives (PSI) 2019 For Large Scale Industries

Maharastra State Government has recently declared the New Industrial Policy – 2019 also called as Package Scheme of Incentives (PSI) 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. Under this policy the Maharastra Govt has announced package of Incentives to various Industries. Details given below

Starting date: 1st April, 2019

Ending date: 31st March, 2024

Basket of Incentives for Large Scale Industries

		Rate of subsidy as per Taluka / Area Classification
Sl. No.	Incentive Description	A	B	C	D	D+	Vidarbha, Marthwada, Ratnagiri, Sindhudurg & Dhule	No industry Districts & Naxalism affected areas
1	Gross SGST	50%	50%	50%	50%	50%	50%	50%
2	Stamp Duty	NA	NA	100%	100%	100%	100%	100%
3	Power Subsidy	NA	NA	NA	NA	NA	NA	NA
4	Max Cap (% of FCI)	25%	25%	40%	60%	70%	80%	100%
5	Duration	7 Years	7 Years	7 Years	7 Years	7 Years	9 Years	9 Years

Basket of Incentives for Special Large Scale Industries

		Rate of subsidy as per Taluka / Area Classification
Sl. No.	Incentive Description	A	B	C	D	D+	Vidarbha, Marthwada, Ratnagiri, Sindhudurg & Dhule	No industry Districts & Naxalism affected areas
1	Net SGST	NA	NA	40%	40%	40%	40%	40%
2	Stamp Duty	NA	NA	100%	100%	100%	100%	100%
3	Power Subsidy	NA	NA	NA	NA	NA	NA	NA
4	Max Cap (% of FCI)	NA	NA	40%	60%	70%	80%	100%
5	Duration	7 Years	7 Years	7 Years	7 Years	7 Years	9 Years	9 Years

• 20% additional Subsidy (of FCI) available for the following industries
  • Food / Agro processing units ( secondary & Tertiary processing only)
  • Primary processing units setup by FPCs and units setup in government assisted Food Parks
  • Green Energy / Bio Fuel manufacturing units
  • Industry 4.0 activities
• Incentives for Expansion / Diversification
  • All eligible units will get 80% of the subsidies mentioned in the table above.
  • Duration will be reduced by 1 year
• Stamp Duty for Biotechnology Manufacturing Industries and Information Technology Manufacturing Industries in A & B Talukas
  • Public Sector Industries – 100%
  • Private Sectors – 75%
  • Large Projects : 50% for first lease / conveyance deed only

• Additional Incentives

  • Electricity Duty Exemption
    • 100% for units in Talukas C,D,D+ and below
    • In Talukas A & B only following industries are eligible
      • 100% EOU units
      • Information Technology Manufacturing Units
      • Biotechnology Manufacturing Units

  Ineligible Industries

  1. Beer, Liquor Manufacturing industries
  2. Cigarette, bidi or any other tobacco containing products, manufacturing industries
  3. Gutka and pan masala manufacturing industries
  4. Any other product(s) banned by Central / State Government
  5. Units manufacturing all types of textiles including cotton ginning and pressing, sizing, spinning, weaving, bleaching, dying, mercerizing etc. covered under the Textile Policy – 2018 – 23 of Maharashtra State shall be eligible only for incentives other than those offered by the other State Government Agencies
  
  

  Eligibility / Definition

  1. Large Scale Industry under PSI 2019

  Taluka / Area Classification	Min Qualified Fixed Capital Investment (INR Cr)	Min Direct Employment
  A&B	750	1000
  C	500	750
  D	250	500
  D+	150	400
  Vidarbha, Marthwada, Ratnagiri, Sindhudurg & Dhule	100	300
  No industry Districts & Naxalism affected areas	100	250

  1. To be eligible for Package Scheme of Incentives (PSI 2019), a Large scale unit should have Fixed Capital Investment as described above for each Taluka.
  2. Should maintain the min direct employment criteria (On Roll and in Premises) every year during the operation period.
  3. 80% of such employees should be local persons.
  4. Such Employment should be created within 2 years from Commercial Production
  5. Should necessarily have Captive Power Plant. However the cost of Captive power plant will not contribute towards the FCI and will not earn any incentives, however it can be a part of Total project cost limited to 20%.
  
  
  2. Special Large Scale Industries
  • For unit having eligible FCI more than Rs. 50 Crores & up to the minimum investment stipulated for qualifying as LSI unit in Table above
  
  

  Important to Remember

  1. An Eligibility Certificate will be issued by the implementing agency after the commencement of Commercial operations, which will have all the details of the subsidies and regulations to be followed
  2. The unit should have separate registration under Maharastra GST
  3. The unit should commence commercial operation within 4 years from the date of submission of application
  4. In case of lease agreements, there should be a clause for automatic renewal to the extent of the operative period.
  5. Once the Lease agreement is renewed, it should be registered again
  6. Fixed Capital Investment includes the following
     1. Cost of Land
     2. Cost of Building including Administrative building and employee quarters
     3. Plant & Machinery (excluding transport vehicles)
     4. Cost of development of the location of the Eligible Unit, such as fencing, construction of roads and other infrastructure facilities
     5. Installation charges and pre-operative expenses capitalized
     6. Research and Development- R & D units including stand-alone facilities of eligible industrial units shall be considered as part of FCI for the purpose of availing fiscal incentives up to 25% of FCI (max Rs. 100 cr)
     7. Royalties paid on account of Technology transfer & Technical know-how including cost of drawings and know-how fees. ( Up to max 10% of Capital Cost )
     8. The amount paid to the Electricity Distribution Company for supply of power
     9. Cold storages which are a part of integrated manufacturing process.
  7. In case of Expansion / Diversification the additional FCI should exceed the Gross FCI of existing unit by at least 25% and min of Rs. 10 Cr to be eligible for PSI
  8. The expansion / diversification should result in min 25% increase in installed production capacity.

Our Unique Services

1. Preparation of Detailed Project Reports (DPR)
2. Layout Drawings
3. Facilitating various permissions required from various Govt. Departments
4. Error free application processing for various subsidies and incentives
5. Facilitating the arrangement of subsidies and incentives from Govt. Departments
6. Advisory on Purchase of Machinery / Technology and Civil works