Package Scheme of Incentive (PSI) was introduced in Maharashtra in 1964. Amended from time to time the PSI given by the Maharashtra Government to the Industries is a basket of Fiscal and Non Fiscal incentives like Stamp duty , Electricity duty waiver and so on with the aim to carry out industrial development in the state with more focus on the lesser developed areas.
THE TENURE OF THE CURRENT PACKAGE SCHEME OF INCENTIVES
5 Years (From 1st April, 2019 to 31st March, 2024) or till the issuance of new policy
WHY IS PACKAGE SCHEME OF INCENTIVES IMPORTANT?
- Improves the Industrial Climate in the state.
- Provides Competitive edge.
- Accelerated Economic Growth across the Zones
- Balanced Regional development.
- Employment Generation through private and public sector.
- Encourage dispersal to lesser developed areas of the state.
COVERAGE UNDER PACKAGE SCHEME OF INCENTIVES 2019
ELIGIBLE UNITS
- Industries in first schedule of the Industries act 1951
- Manufacturing enterprises as defined in MSMED Act , 2006
- IT Manufacturing units & Software Technology Parks
- Bio Technology Manufacturing Units
- Mechanised , Food and Agro Processing units
NON ELIGIBLE UNITS
- Units involved in manufacturing of alcohol, Cigarette, Tobacco Products and product (s) banned by Central / State Government.
- 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 hence they are not a part of this policy.
CLASSIFICATION OF AREAS/ ZONES IN MAHARASHTRA
The entire Maharashtra is classified into Zones as A, B, C, D & D+ No Industry Districts and Naxalism affected areas and Aspirational Districts.
| Zone | Areas |
|---|---|
| A & B | Industrially Developed areas like Chakan, Talegaon,Roha,Khopoli , Patalganga, TTC |
| C | Lesser developed areas than A&B like Mahad, Sinnar,Indapur, Baramati |
| D | Lesser developed areas than C like Satara, Kolhapur, Amravati, Akola, Jalgaon |
| D + | Lesser developed areas than D Nashik, Chiplun, Patan,Ratnagiri, Sindhudurg & Dhule, Jalna, Latur, Wada, Vidarbha, Gadchiroli, Hingoli |
| No Industry Districts Naxalism Affected Areas Aspirational Districts | No industry district like Jalgaon, Osmanabad and Nandurbar. |
CLASSIFICATION ON BASIS OF INVESTMENT & EMPLOYMENT
| MSME | LSI & Special LSI | Mega and Ultra Mega Projects |
|---|---|---|
| Investment in New, Expansion and Diversification: Upto 50 Cr | A & B 750 Cr or Direct Employment 1000 Employees | A & B Investment 1500 Cr or Employment 2000 Employees |
| C Investment 500 Cr or Direct Employment 750 Employees | C Investment 1000 Cr or Employment 1500 Employees | |
| D/D+ Investment 250/150 Cr or Direct Employment 500/400 Employees | D/ D+ Investment 750/500 Cr or Direct Employment 1000/750 Employees | |
| No Industry/Aspirational/Naxalites Investment 100 Cr or Employment 250 Employees | No Industry/Aspirational/Naxalites Investment 100 Cr or Employment 250 Employees |
BASIC RULES OF INCENTIVES
- The incentives will be granted to the units on first-come, first-served basis.
- It’s given in Percentage as per the taluka and the Eligibility period (years).
- The total incentives admissible to the eligible units cannot exceed 100% of eligible Fixed Capital Investment (FCI).
- Employment criteria should be taken into account if the incentives are based on the employment. The minimum employment should be maintained throughout the tenure, 80% of the employees should be local and all should be on the company rolls.
BASKET OF INCENTIVES:
| S.No | Incentive | MSME | LSI & Special LSI | Mega/ Ultra Mega Projects |
|---|---|---|---|---|
| 1 | Industrial promotion subsidy | SGST @ 100% payable by the unit on the first sale of eligible products billed and delivered within Maharashtra. | SGST @ 50% payable by the unit on the first sale of eligible products billed and delivered within Maharashtra. Special LSI @ 40% of Net SGST. | To be decided by High power committee/ Chief Secretary/ CM |
| 2 | Interest Subsidy | For interest actually paid for acquisition of fixed assets. | NA | To be decided by High power committee/ Chief Secretary/ CM |
| 3 | Exemption from Electricity Duty | All new units in C, D, D+ Exempted during eligibility period till max 15 years. In A & B 100% EOU, IT, BT for a period of 7 Years | All new units in C, D, D+ Exempted during eligibility period till max 15 years. In A & B 100% EOU, IT, BT for a period of 7 Years | To be decided by High power committee/ Chief Secretary/ CM |
| 4 | Stamp Duty Waiver | New or expansion units in C, D, D+ etc and In Group A & B – Bio Technology and IT Manufacturing exempted from this duty. | New or expansion units in C, D, D+ etc and In Group A & B – Bio Technology and IT Manufacturing exempted from this duty. | 50% of first Conveyance Deed |
| 5 | Power Tariff Subsidy | Subsidy to the tune of Rs 1/- or Rs 0.50 for the units based on the areas for a period of 3 years. | NA | To be decided by High power committee/ Chief Secretary/ CM |
There are additional Incentives for strengthening of MSME like Subsidy on Technology upgradation, Quality certification, Cleaner production, Incentives for Credit rating, Refund of listing expenses, Water audit, Energy audit and Capital Equipment as mentioned in the policy.
PROCEDURE FOR APPLICATION UNDER PSI -2019
- APPLICATION FOR ELIGIBILITY
An Application for Eligibility shall be submitted to the implementing agency by the Eligible unit only after the Effective steps are taken but not later than the 31st March, 2024 or till the new policy comes into force. - EFFECTIVE DATE OF ELIGIBILITY CERTIFICATE (EC)
The EC will be issued with effect from the date of commencement of commercial production by the Eligible Unit. It will be supported by the first bill. - PROCEDURE FOR CLAIMING BENEFITS UNDER EXPANSION / DIVERSIFICATION
The eligible unit claiming, benefits under Expansion / Diversification shall be required to maintain separate record of production for such expansion/diversification.
There will be limit of two number of expansions/diversification in the Scheme period. - CLAIM FOR INCENTIVES
No right or claim for any incentives under the PSI -2019 shall be deemed to have been conferred by the PSI -2019 merely because the applicant unit has fulfilled the conditions of PSI 2019. The incentives under PSI 2019 cannot be claimed unless an EC has been issued under the PSI – 2019 by the Implementing Agency and the Eligible Unit has complied with the stipulations/conditions of the EC.
MONITORING AND REVIEW
The Eligible Units needs to follow the laid procedure to continue with the incentives available under PSI -2019.
- A detailed report should include information about production and sales, along with the period of any production stoppage or closure of the Unit, if applicable, and the reasons for it. Additionally, it should cover the addition to the FCI, disposal of Fixed Assets, and any changes in the constitution of the Eligible Unit.
- A certified true copy of the audited annual statement of accounts and Balance Sheet.
If the Eligible Unit fails to provide the required information, the Implementing Agencies will promptly take action to cancel the Eligibility Certificate.
To know the complete details of the PSI -2019 please click here.
Reach Us at
Ascent Supply Chain Consultants Private Limited (ASCC),
406 Raheja Arcade, Sector-11, CBD Belapur,
Navi Mumbai – 400614, MH – India.
Tel: 022-4897-4888
Email: info@ascc.in
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