Maharastra – Industrial Policy / Package Scheme of Incentives (PSI) 2019 For MSMEs

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Maharastra – Industrial Policy / Package Scheme of Incentives (PSI) 2019 For MSMEs

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 MSMEs

 

 

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

Duration

1

SGST

NA

100%

100%

100%

100%

100%

100%

As per row 6

2

Interest Subsidy

NA

5%

5%

5%

5%

5%

5%

As per row 6

3

Stamp Duty

NA

NA

100%

100%

100%

100%

100%

 

4

Power Subsidy

NA

Rs. 0.5 per unit

Rs. 0.5 per unit

Rs. 0.5 per unit

Rs. 0.5 per unit

Rs. 1 per unit

Rs. 1 per unit

3 years

5

Max Cap (% of FCI)

NA

30%

40%

50%

60%

80%

100%

 

6

Duration

NA

7 Years

7 Years

10 Years

10 Years

10 Years

10 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%

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
  • Expansion & Diversification Units in all Talukas
    • 5% subsidy only on additional capital equipment acquired for Technology Up-gradation, subject to a maximum of Rs. 25 lakh.
    • 75 % subsidy on the expenses incurred on quality certification limited to Rs. 1 Lakh.
    • 25% subsidy on additional capital equipment acquired 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 Iakh.
    • 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 additional Capital Equipment for improving energy Efficiency, limited to Rs. 5 lakh.
    • Incentives for Credit Rating of MSMEs, 75% of the cost of carrying out Credit Rating by Small Industries Development Bank of India/ Government accredited Credit Rating Agency, limited to Rs. 40,000.
    • During the policy period, first 250 SMEs in all areas of the State, based in Maharashtra, fulfilling the criteria for listing, which will be enlisted on the SME Stock Exchange, Mumbai will be be given refund of listing expenses equal to Rs. 6 lakhs or actual C.A. certified listing expenses, whichever is lower.

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

Important to Remember

  1. A unit is considered as MSME under the PSI policy if the Gross Fixed Capital Investment (FCI) is below Rs. 50 Cr
  2. 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
  3. The unit should have separate registration under Maharastra GST
  4. The unit should commence commercial operation within 3 years from the date of submission of application
  5. In case of lease agreements, there should be a clause for automatic renewal to the extent of the operative period.
  6. Once the Lease agreement is renewed, it should be registered again
  7. 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.
  8. In case of Expansion / Diversification the Gross FCI of existing unit and the Gross FCI of Proposed unit should not cross Rs. 50 Cr
  9. In case of Expansion / Diversification the additional FCI should exceed the Gross FCI of existing unit by at least 25% and min of Rs. 25 Lakhs to be eligible for PSI
  10. The expansion / diversification should result in min 25% increase in installed production capacity.

Our Unique Services

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  4. Error free application processing for various subsidies and incentives
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  6. Advisory on Purchase of Machinery / Technology and Civil works

 

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