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Package Scheme of Incentive

 

PACKAGE SCHEME OF INCENTIVE​​ (SUBSIDY) ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​​ C:\Users\shree\Desktop\make in india.jpg ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​​ - SHUBHAM MALANI

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 through “Package Scheme of Incentives“​​ 

 

Period-​​ Scheme​​ shall be operative from 1 April 2013 to 31st​​ March​​ 2018

 

COVERAGE UNDER THE PSI - 2013​​ 

 

  • Industries listed in the First Schedule of the Industries​​ Act ,1951

  • Manufacturing Enterprises as defined in the​​ MSMED Act, 2006

  • Information Technology Manufacturing Units​​ registered with the DIC​​ or​​ (MIDC)​​ 

  • Bio-technology Manufacturing Units.​​  

  • Cold Storages​​ 

  • Mechanized Food/Agro Processing Industries in the following sectors:​​ 

  • Dairy, Fruit and Vegetable Processing.​​ 

  • Grain & Fish Processing.

  • Consumer foods including Packed foods.​​ 

  • Non alcoholic beverages from fruits and vegetables.

 

CLASSIFICATION OF AREAS FOR PSI-2013

 

For the purposes of the PSI- 2013, detailed taluka-wise classification of different areas of the State​​ :

 

Sr.No.

Group

Area Denotes

1.

Group A

Denotes Industrially developed areas

2.

Group B

Denotes Area less developed than the areas under Group A.

3.

Group C

Denotes Areas, which are less developed​​ than those covered under​​ Group​​ B.

4.

Group D

Denotes the lesser-developed areas of the State, not covered under Group​​ A/B/C.

5.

Group D+

Denotes the least developed areas, not covered under ​​ ​​ 

Group​​ A/ B/C/D.

6.

No Industry District

Denotes District having no industries and not covered under Group A / B/ C/ D & D+.

7.

Naxalism​​ Area ​​​​ 

Denotes Area affected by naxalism.

 

 

 

CLASSIFICATION OF INDUSTRIES

 

Industries have been classified on the​​ basis of investment made i.e. more the capital investment in setting up business unit, more incentives are available as per the Group to which it belongs.​​ 

  • Micro, Small & Medium Manufacturing Enterprise (MSME):- Unit having​​ investment in plant and machinery does not exceed​​ Rupees Ten Crores.

  • Large Scale Industries:​​ - Units having investment more than MSME but less than Mega Projects defined below.

  • Mega/Ultra Mega project:- Unit satisfying the minimum threshold limit of fixed Capital Investment or Direct Employment prescribed in table given below​​ :- ​​ ​​ 

 

Type of Unit

Areas

Maximum Fixed​​ 

Capital​​ Investment

​​ (Rs. In Crore)

Minimum Direct​​ 

Employment​​ 

(Persons)

Mega Project

A & B

750

1500

C

500

1000

D & D+

250

500

No Industry District &​​ Naxalism Affected

100

250

Ultra Mega Project

Entire State

1500

3000

 

FINANCIAL INCENTIVES FOR MSMEs/LSIs UNDER PSI-2013​​ 

 

New​​ MSME/LSI Units will eligible for a basket of incentives mentioned as under: -

 

Taluka/Area

Ceiling as % of Fixed​​ 
Capital Investment

No. of Years

MSME

MSME​​ 

Food & Agro Processing units

LSI

MSME

MSME​​ 

Food & Agro Processing

LSI

A

---

---

---

7

8

7

B

20

30

---

7

8

7

C

40

50

30

7

8

7

D

70

80

40

10

11

7

D+

80

90

50

10

11

7

No Industry District

90

100

70

10

11

7

 

 

 

 

 

EXPANSION/DIVERSIFICATION PROJECT

 

An Expansion unit cover under group B, C, D, D+, Naxalism or No-Industry District are eligible for incentive under PSI-2013 if additional fixed capital investment exceeds 25% of existing Gross Fixed Capital Investment subject to Minimum of​​ `25 Lacs in case of MSME and​​ `5 Crore in case of Non-MSME.

 

Taluka​​ /Area

Ceiling as % of Fixed​​ 
Capital Investment

No. of Years

MSME

MSME​​ 

Food & Agro Processing units

LSI

MSME

MSME​​ 

Food & Agro Processing

LSI

A

---

---

---

6

7

6

B

15

30

22.5

---

6

7

6

C

30

37.5

22.5

6

7

6

D

52.5

60

30

9

10

6

 ​​​​ D+

60

67.5

37.5

9

10

6

No Industry District

67.50

75

52.5

9

10

6

Naxalism Affected Area

75

82.5

60

9

10

6

 

FINANCIAL INCENTIVE​​ COVERED UNDER BASKET OF INCENTIVE

 

The Basket of various financial incentive available under PSI-2013 include following three types of products:

  • Industrial Promotion Subsidy ​​ (IPS)​​ :

 

For MSMEs​​ (New/Expansion)-

 

Taluka​​ /Area classification

The quantum of Industrial promotion Subsidy very year

Naxalism Affected

VAT ​​ on Sales less VAT paid on Purchase +CST payable+ 100% of ITC

No Industries

VAT ​​ on Sales less VAT paid on Purchase +CST payable+ 75% of ITC

Entire Vidarbha and ​​ Marathwada (Other than Sr. No.1 & 2.)

VAT ​​ on Sales less VAT paid on Purchase +CST payable+ 65% of ITC

Group D+ Taluka (other than Sr. No. 1 &3)

VAT ​​ on Sales less VAT paid on Purchase +CST payable+ 50% of ITC

Group D Taluka (other than Sr. No. 1 &3)

VAT ​​ on Sales less VAT paid on Purchase +CST payable+ 40% of ITC

Group C Taluka

VAT ​​ on Sales less VAT paid on Purchase +CST payable+ 30% of ITC

Group B Taluka

VAT on Sales less VAT paid on Purchase +CST payable+ 20% of ITC

 

Taluka​​ /Area Classification

The Industrial Promotion Subsidy Every Year

Naxalism Affected Area

100% VAT on ​​ sales ​​ less VAT paid on Purchases​​ + CST payable

No Industries Districts,​​ Vidarbha and​​ Marathwada

90% VAT on ​​ sales ​​ less VAT paid on Purchases​​ + CST​​ payable

Group D+ Taluka (Other​​ than Sr. No. 1 and 2)

80% VAT on ​​ sales ​​ less VAT paid on Purchases​​ + CST payable

Group D Taluka (Other than​​ Sr. No. 1 & 2)

70% VAT on ​​ sales ​​ less VAT paid on Purchases​​ + CST payable

Group C Taluka

60% VAT on ​​ sales ​​ less VAT paid on Purchases​​ + CST payable

For Large Scale Industries​​ (New/Expansion)​​ –

  • Interest subsidy :

All​​ new​​ eligible MSME units in area other than group ​​ “A” ​​ will be eligible for interest subsidy in addition to​​ IPS​​ .The amount of interest subsidy will be effective rate of interest after deducting interest subsidy receivable from any​​ institution​​ / under any Govt. of India scheme or 5 % p.a. whichever is less. However the amount of Interest subsidy should not be in excess of electricity bills paid during the year.

​​ 

  • Power Tariff Subsidy​​ :

Eligible​​ New​​ MSME​​ other​​ than group “A”​​ will be eligible for power tariff subsidy. The subsidy will be to the tune of​​ `1/- per unit for the Units located in Vidarbha, Marathwada, North Maharashtra and the Districts of Raigad, Ratnagiri and Sindhudurg in Konkan Region and​​ `​​ 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.

 

ADDITIONAL​​ INCENTIVES​​ OTHER THAN BASKET OF INCENTIVE

 

In Addition to Basket of Incentive some additional Incentives are also offered in addition to above Basket of Incentive:

 

  • Exemption from Electricity Duty​​ :

All​​ new​​ eligible units in area other than group​​ “A” & “B”​​ will be​​ exempted from payment of Electricity Duty for a period of 15 years.​​ Necessary Notification under the provision of the Electricity Duty Act 1958 will​​ be issued separately by Energy​​ department.

 

 

 

 

 

 

 

  • Waiver of Stamp Duty​​ :

All​​ New​​ and​​ units undertaking Expansion/ Diversification will be exempted​​ from payment of Stamp duty up to 31st March 2011 in “C, D, D+ Talukas and​​ No Industry​​ Districts. However, in A and B areas, stamp duty exemption​​ would be available as given below:-

 

  • BT and IT units in public Parks : 100%

  • BT and IT units in private Parks : 75%

  • Mega Projects : 50%

 

  • Incentives for Strengthening MSMEs and LSIs​​ :

 

  • New MSMEs and Expansion thereof in all categories of areas will be eligible for following incentives –

 

Type of Expenses

Subsidy

Technology​​ 

Up —gradation

5% subsidy on capital equipment for Technology Up—Gradation, subject to a maximum of `​​ 25 Lacs​​ 

Quality certification

75 % subsidy on the expenses incurred on quality certification limited to ` 1 Lacs

Cleaner production

25% subsidy on capital equipment​​ for cleaner production measures,​​ limited to `​​ 5 Lacs

Patent registration

75 % subsidy on the expenses incurred on patent registration limited to ` 10 Lacs for​​ the National patents and ` 20 Lacs for the International patents.

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 ` 40,000.

 

  • New MSMEs and Expansion thereof in all categories of areas will be eligible for following incentives

 

Water audit

​​ 75% of cost of​​ water audit limited to ` 1.00 Lacs.

Energy audit

75% of cost of​​ energy audit limited to ` 2.00 Lacs.

Capital Equipment

50% of the cost of Capital Equipment under the measures to conserve/recycle water, limited to ` 5​​ Lacs.

Improving energy Efficiency

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

 

 

 

 

  • ​​ Conditions for availing​​ above all​​ Incentives for Units coming up in Naxalism affected Talukas

 

Conditions for availing Incentives for Naxalism affected Talukas

Conditions

New/Expansion Units, setting up manufacturing industrial facilities in Naxalism affected Talukas.​​ 

Employing at least 75 % local persons from the Naxalism affected areas will be eligible for incentives.

 

 

  • Incentives For Mega Projects/ Ultra Mega Projects​​ 

 

Norma Incentive Scheme

High Power Committee under the chairmanship of the Chief Secretary, Government of Maharashtra on a case to case basis.

Customized package of incentives and​​ 

​​ special offer or extra incentives

  • 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.​​ 

  • Even offer special / extra incentives for prestigious Mega Projects / Ultra Mega Projects, on a case to case basis.

 

DOCUMENTS FOR APPLICATION UNDER PSI-2013

After Disbursement of Loan or Bank Loan Sanction Letter is given by Bank,​​ unit can apply under PSI-2013 Scheme.

List of documents required are as follows:

Effective steps

1

Land Documents :

MIDC Land​​ : Plot possession letter/transfer letter and registered agreement to​​ Lease/transfer of lease rights.

Private Land :​​ (a) Sale Deed, (b) latest 7/12 extract and (c ) NA permission for industrial use​​ 

2

Constitution documents :

a) Partnership Deed.

b) Certificate of incorporation.

c) Registration certificate.

3

Project Report/Profile.

4

Authorization​​ for signing of application,​​ execution of agreements etc.

Investment

And production

1

​​ Power sanction letter

2

​​ Power bill copy (one month)

3

First 3 Sale bill copy​​ 

4

First 3 Purchase bill copy​​ 

5

​​ EM II and ELP

6

​​ CA certificate certifying investment in Fixed Assets

7

​​ Chartered engineer’s certificate for self fabricated machinery.

8

​​ Architect’s certificate for cost of construction​​ 

9

​​ Bank Loan sanction letter.

10

​​ Bank appraisal Report to be submitted

Consents &

permission

1

MPCB consent to establishment

2

MPCB consent to operate/ acknowledgement of having filed application with MPCB together with proof of payment.

3

Self-certification in format on Stamp paper.

4

Building plan approval from Competent Authority

 

 

Mistakes are always forgivable, if one has the courage to admit them.

  • Bruce Lee