The Maharashtra Industrial policy, 2019 was introduced w.e.f 01st April,2019 and will remain in force for a period of five years. The Package Incentive Scheme (PSI-2019) provides incentives to MSMEs in form subsidies on SGST payments, power subsidies, interest subsidies, stamp duty and electricity duty exemptions. These benefits are available subject to certain conditions which are discussed in detail below:
Eligibility:
Classification of Areas of States
For the purpose of this scheme the state has been divided into different categories of “talukas” based on the level of industrial development. The quantum of incentive to a unit is contingent upon the category of taluka in which it is located. The various categories of talukas, in order of most industrially developed to least ones are – A,B,C,D,D+, No industry districts, Naxal affected area. In addition, a special category of “aspirational districts” consisting of four districts has been carved out.
Expansion/diversification Project
Before we dwell upon the intricacies of the scheme it is important to understand what an Expansion or a Diversification Project is – When an Existing / New Unit in any of the areas covered under Group “B”, “C”, “D”, D+, Naxalism Affected Areas, Aspirational Districts or No – Industry – Districts, makes, on or after 1st April, 2019, an additional fixed capital investment in additional manufacturing facilities for manufacture of the same product or for manufacture of different products then it qualifies as an expansion project. It must be noted that units covered under Group “A” making expansions are not covered within the scope of this definition and resultantly do no qualify for the incentives.
Fiscal Incentives to MSMEs under the scheme:
SN | Taluka/Area Classification | Maximum Permissible Fixed Capital Investment (FCI) (INR Crores) | Maximum Ceiling of basket of incentives as % of FCI | Eligibility period (Years) |
1. | A | For the purpose of this policy, MSMSE shall include units as per the MSMED Act,2006, as well as the units with FCI of upto INR 50 Crores | -- | -- |
2. | B | 30% | 7 | |
3. | C | 40% | 7 | |
4. | D | 50% | 10 | |
5. | D+ | 60% | 10 | |
6. | Vidarbha, Marathwada, Ratnagiri, Sindhudurg and Dhule | 80% | 10 | |
7. | No Industry District, Naxal affected areas* and Aspirational districts** | 100% | 10 | |
*Naxalism Affected areas as per Government Resolution No. PSI-2013/(CR-54)/IND-8 Dated 01.04.2013 issued by Energy and Labour Department, Government of Maharashtra. ** Aspirational districts are Osmanabad, Gadchiroli, Washim and Nandurbar. |
For instance, an eligible unit located in “C” category makes a fixed capital investment of Rs. 5 Crores then as per the scheme it will be eligible to subsidy of 40% on such investment amounting to Rs.2 Crore which will be awarded over a period of 7 years (i.e 28.57 lakhs per year) in form of refund of Gross GST payable on sales made by the enterprise. In a situation where the gross SGST for the year is less than the sanctioned incentive then such differential will be carried forward.
Note 1: Eligible units undertaking expansion will be entitled to equivalent of 80 per cent of the incentives tabled above and the eligibility period will be also be reduced by 1 year.
Note 2 : Food and agro processing unit, eligible green energy unit and bio fuel manufacturing units to get 20% above the limit mentioned above (subject to maximum of 100 per cent) and will get 2 additional years of eligible period.
Investment Period:
An eligible MSME unit must commence commercial production, acquire the fixed assets, put them in use having paid for the asset within a period of 3 years from date of submission of application. Any asset acquired prior to or beyond the investment period will not be considered for the incentive except vacant land which was acquired earlier and in respect of which no incentive has been availed under any other scheme.
Eligible Fixed Assets: For the purpose the scheme Fixed assets shall mean and include –
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