To make Maharashtra globally most preferred place for production of readymade garments, Gem and Jewelry, Microelectronics and simplification for micro, small and medium enterprises which forms a large portion of this sector to increase and develop them, Government has introduced Maharashtra Industrial Park Policy for Readymade Garment manufacturing, Gems & Jewellery, Micro Electronics and Engineering units-2018. This article highlights the Salient Features of the captioned policy.
Salient Features of Readymade Garment manufacturing, Gems & Jewellery, Micro Electronics and Engineering units Policy -2018
1. Policy Period: 5 Years from the date of approval.
2. Permissible Activity:
- Readymade Garment Production (units which convert cloth into usable readymade garment, mattresses, carpets, covers, curtains, embroidery cloth etc., this will also include ready cloth for packing and for all intermediate processes)
- Gems and jewelry. (Manufacturing jewelry, cutting and polishing of gems, packaging production units)
- Microelectronics.
- Engineering units.
3. Eligibility Criteria: Land owner or developer appointed by him or any company having legal entity. In case of leasehold property, lease holder having 30 years of remaining lease period with MIDC will be eligible for erection of flatted gala industrial parks.
4. Required Built up Area: Minimum 20,000 sq. ft.
5. Required Certifications: The unit should hold valid Udyog Aadhar Memorandum (UAM) / Industrial Entrepreneurs’ Memorandum (IEM).
6. Special Planning Authority: MIDC and SPA.
7. Registration of Industrial Parks: A Letter of Intent (LOI) and Registration will be issued to all the Industrial Parks by the Directorate of Industries.
8. Additional FSI and Premium applicability: Permissible FSI 1, additional depending on the road width as stipulated below:
| Sr. No. | Road Width in Mtrs. | Basic FSI | Additional FSI on premium | Maximum Permissible FSI |
|---|---|---|---|---|
| 1 | Below 9 m | 1 | NA | 1.00 |
| 2 | 9 m & above but below 12 m | 1 | 1.00 | 2.00 |
| 3 | 12 m & above but below 15 m | 1 | 1.25 | 2.25 |
| 4 | 15 m & above but below 24 m | 1 | 1.50 | 2.50 |
| 5 | 24 m & above but below 30 m | 1 | 1.75 | 2.75 |
| 6 | 24 m & above but below 30 m | 1 | 2.00 | 3.00 |
The additional FSI can be purchased by paying premium as given below:-
| Sr. No. | Type of Land Use | Applicable Premium (of the Prevailing MIDC Rate) |
|---|---|---|
| 1 | Industrial | 25% |
| 2 | Commercial | 50% |
| 3 | Other Use | 35% |
Note: Premium will be charged to the limit additional FSI demanded by the developer.
9. Support Services / facilities:
- Small retail shops having area not more than 1000 sq. ft. and the area under this category shall not be more than 5% of the total area for support services.
- Commercial showrooms, training institutes, common conference room for the units in parks.
- Residential apartments for workers working in above industrial parks as per the norms of the Slum Rehabilitation Authority (SRA) and the permissible area under this category will be within the ceiling of 20% of the total area for support services.
Note: The Parks excludes Malls, Cinema Theatres, Public Auditoriums and multiplexes, Residential Apartments for sale to common public.
10. Ratio of Industrial Unit and Support Services: 80:20.
11. Zone Restrictions: The policy will be applicable in all zones of the state. For areas where change of zones is required, excluding agriculture, no development zone and industrial zone, the premium for zone change will be charged at the rate of 15% of the Ready Reckoner rate on the lines of Township Policy.
12. Power Tariff: At Industrial Rate except commercial & professional activities under this policy.
13. Custom Clearance: A Liaoning Officer from MAITRI cell will be appointed to monitor the clearances in a time bond manner and relaxation from checking by granting Star Export House Status.
14. Common Facility Center: Private industries can construct and run its own Common Facility Center like Training, Testing, and Designing etc. Incentives equal to 75% of the expenditure incurred for credit rating, subject to a ceiling of (to be given one time) of Rs. 40,000 will be given in all types of classified industrial zones for credit rating from SIDBI / Government Accredited Credit Rating Agency.
15. Penalty: A penalty equal to 0.3% of the prevailing ready reckoner rate per day will be charged for the built up space which is being used for purpose other than the permissible purpose.
Fiscal Incentives (Only for Garment Projects)
i. Garments projects will be granted Mega and Ultra Mega status on the basis of investment & employment as below :
| Particulars | Investment (Rs. In crores) | Investment (Rs.in crores) |
|---|---|---|
| Mega | ||
| A & B Zone | 250 | 1500 |
| No Industry district & Naxalism affected Area |
50 | 250 |
| In Other Areas | 100 | 250 |
| Ultra Mega | ||
| In Other Areas | 500 | 3000 |
- Disbursement of Incentive Amount: For Mega / Ultra Mega Projects, if the eligibility period is more than 10 years then the annual limit of fiscal incentives will be decided by total amount of incentives divided by the number of years of eligibility period. There will be a provision to carry forward the difference of actual annual sanction and annual limit for incentive disbursement for any year to the next year.
- If an eligible unit in MIDC area obtains Building Completion Certificate within the admissible development period and starts commercial production, then the unit will be entitled for following concessions for the balance development period from MIDC, in payment of various charges like water charges, service charges, firefighting cess as under
| Sr.No | Building Completion Certificate | 100% exemption in service charges and firefighting cess + ____% concession in water charges. |
|---|---|---|
| 1 | Minimum 50% and within 75% | + 20% |
| 2 | Minimum 75% and within 100% | + 30% |
| 3 | 100% | + 40% |
Above concessions will be admissible during the balance period of the original development period for the plot. (from the date of commencement of production after obtaining Building Completion Certificate).
ii. Workforce Welfare Assistance: The Central Government shall pay Employee’s contribution in the PPF where the salary is Less than Rs. 15,000 /- . The entire 12% amount of employees’ contribution will be refunded by the Central Government. After the benefit under Central Government Scheme is over, the Government of Maharashtra will refund the above incentives during next 3 years of the operative period of the unit.
iii. Training Assistance: After commencement of operations of unit, Training Assistance of Rs. 3,000/- per year per employee for initial 3 year period will be given by Government of Maharashtra to garment units.
iv. Stamp Duty Reimbursement: Stamp Duty reimbursement shall be given on Purchase or Lease of Land and Gala and Bank Loan Documents.
- For MSME & Large units, the ceiling of annual amount of grant will be 1/10 of the total sanctioned incentives. The difference of actual sanctioned incentives and the incentives admissible during that year will be carried forward.
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