Maharashtra, one of the powerhouses of Indian industries has formulated a comprehensive industrial policy to promote economic advancement, investment and job creation activities in the state. The Maharashtra Industrial Subsidy Scheme or the Package Scheme of Incentives (PSI) 2019 for big cluster industries was implemented to provide various benefits for MSMEs as well as big industries. A dedicated incentives-oriented approach, which has also given rise to MSME Subsidy in Maharashtra, resurging industrial expansion in the state. This article discusses the important aspects of the policy, the benefits available under the Maharashtra Industrial Subsidy Scheme, and the various benefits of Maharashtra Industrial Policy benefits which promote growth in all the sectors.
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Overview of the Maharashtra Industrial Policy 2019
The Maharashtra Industrial Policy 2019 aims at promoting integrated development through the provision of incentives for industrial projects. It is predicated on the Policy for the Maharashtra Industrial Subsidy Scheme, which seeks to foster equitable economic growth. In this respect, MSMEs and particularly MSME Subsidy in Maharashtra are offered a set of options, which are geared toward providing assistance for the development of various sectors.
Key Objectives of the Maharashtra Industrial Policy 2019
The Maharashtra Industrial Policy 2019 also promotes growth that is sustainable and does not harm the environment. The specific objectives of the policy are:
- Promoting a growth of the manufacturing sector by 12-13% per annum.
- Ensuring that investments amounting to INR 10 lakh crore are attracted by the year 2023-24.
- Providing jobs/opportunities to 40 lakh people by the year 2023-24.
- Enhancing the contribution of GDP from the manufacturing sector to 25% by the year 2023-24.
These policy objectives are consistent with the provisions of Maharashtra Industrial Policy Benefits, demonstrating the conducive environment for MSME Subsidy in Maharashtra.
Maharashtra Industrial Subsidy Scheme: Eligibility and Benefits
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To promote development in the backward regions of the state, there is a divide in the entire state under the Maharashtra Industrial Subsidy Scheme into different zones in (A, B, C, D, D+ and No Industry Districts). Below are some of the features and the qualifiers and benefits extended to MSMEs as well as other larger units.
Eligibility for the Maharashtra Industrial Subsidy Scheme
In order to benefit Maharashtra Industrial Policy , the following general conditions should be satisfied by the units.
- First off, boundaries defined as industrial areas in the territorial classification must be developed.
- Second, projects aimed at growth shall be undertaken in the manufacturing or the government approved service sectors only.
- Thirdly, investments should be made in the approved projects and production commence within a stipulated period.
Upon satisfaction of these conditions, the provisions of the Maharashtra Industrial Subsidy Scheme will apply.
Key Benefits of the Maharashtra Industrial Subsidy Scheme
There are loads of benefits provided under the scheme. MSME Subsidy in Maharashtra includes benefits like tax holidays, infrastructure support, and technological assistance thereby enhancing business opportunities within the state.
- Industrial Promotion Subsidy (IPS): This Scheme allows MSMEs to avail a subsidy for the Gross State Goods and Services Tax (SGST) liability on sale of goods, thus improving the profitability of the sector.
- Interest Subsidy: Under the Maharashtra industrial subsidy scheme, MSME’s are given interest subsidy on term loans availed by them for the purchase of fixed assets. This helps to ease the cash flows which tend to be the lifeblood of smaller enterprises.
- Power Tariff Subsidy: Units Disbursement Under the MAHARASHTRA INDUSTRIAL SUBSIDY SCHEME are entitled to subsidized tariffs on power for a maximum of three years, and with further discounts in other less developed regions.
- Stamp duty Exemption: In order to facilitate the activities of eligible units, a hundred percent waiver of the stamp duty payable on land purchase is offered to such units in order to lessen the costs incurred on land purchase.
- Electricity Duty Exemption: This incentive waives electricity duties for the eligibility period, helping businesses lower operational costs.
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MSME Subsidy in Maharashtra: Additional Benefits and Incentives
The New Maharashtra Industrial Policy Benefits provides for further assistance to MSMEs through granting additional subsidies to various sectors – including technology, water, energy conservation and cleaner production. Salient features of the MSME Subsidy in Maharashtra are as follows:
Technology Upgradation and Quality Certification
- 5% subsidy on investment in plant and machinery for technology upgradation subject to a maximum of Rs. 25 lakhs.
- 75% subsidy on the quality certification cost incurred subject to a limit of Rs. 1 lakh
Cleaner Production and Patent Registration
- 25% subsidy on costs incurred for investment in cleaner production but not more than Rs. 5 lakhs.
- 75% subsidy on the cost incurred towards patent registration which is Rs. 10 lakhs for domestic patents and Rs. 20 lakhs for international patents.
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Water and Energy Conservation Subsidies
In terms of foster green development, the Maharashtra Industrial Subsidy Scheme funds the following:
- 75% subsidy on water audit costs up to a maximum of Rs. 1 lakh.
- 75% subsidy on energy audit costs of up to Rs. 2 lakhs.
- 50% subsidy on the cost of equipment to the tune of Rs. 5 lakhs for water conservation.
Credit Rating Incentive for MSMEs
In the MSME Subsidy in Maharashtra, government accredited agencies provide up to 40,000 Rupees towards 75% of the business rating cost which enables businesses to better manage financial risk.
Maharashtra Industrial Policy Benefits for Focused Sectors
Also there are some sectors to which the Maharashtra Industrial Policy Benefits applies stating the objectives of the Maharashtra Industrial Subsidy Scheme.
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Food and Agro Processing Units
The government of Maharashtra entitles the Food and Agro Processing industries to 20% additional benefits over the normal benefits provided. This focus aims to promote food production, agricultural advancements, and employment generation in the rural regions of the state.
Green Energy and Biofuel Manufacturing
Green energy units and biofuel production plants are also eligible for 20% further incentives. The policy encourages the usage of renewable energy aligning with the green energy policy of the state of Maharashtra.
Industry 4.0 and Digital Transformation
In sync with the current trends of industries worldwide, firms operating in Industry 4.0 (Smart Manufacturing, AI, IoT …) are offered 20% additional incentives.
Recent Developments in Maharashtra’s Industrial Subsidy Scheme
In the last few developments, Rs. 148 crores have been earmarked towards the provision of capital subsidies to the textile sector which is one of the critical sub-sectors of the Maharashtra Industrial Subsidy Scheme. Also, with the aim of increasing production and value chain enhancement in the cotton, soybean, and oilseeds, a total of Rs. 200 crores has been approved to reinforce the agricultural sector in the state of Maharashtra.
The Maharashtra Industrial Policy Benefits also includes undertaking Application-based technologies to promote green practices like solar insect traps and electric battery spray guns for purchase. All these works also complement the aims of Maharashtra Industrial Subsidy Scheme which is relevant for promotion of both heavy industries as well as small scale agro based processing industries.
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Conclusion: Leveraging Maharashtra Industrial Subsidies for MSME Growth
Essentially, Maharashtra Industrial Subsidy Scheme, which benefits the MSMEs financially by subsidising their utilities. To make operations more efficient and effective there is the facility of upgrading one’s technology, as well as there being subsidies provided in order to save water. This all-encompassing difference with actual benefits boosts industrial prospects and the economic progression within the state. The entrepreneurs, business owners, and investors are of a great advantage in these facilities.
The Maharashtra Industrial Policy benefits pertain to the business expansion and opportunities in growth mode. This updated version of the Maharashtra Industrial Policy 2019 has been drawn to make systemic efforts for continuous growth from MSMEs and Big Business Houses. It maintains the sustainability of the MSME rebates offered by the State Government of Maharashtra as a way of further encouraging unswerving growth. The Maharashtra strategy is broad and involves extending Auditing and consultancy for expanding the industrial context speedily with financial support.
The state is creating an industrial competitive environment in which corporations gain virtually every benefit that is necessary for flourishing. The growth of industry in Maharashtra will indeed be very beneficial for the Indian economy, but in the global context.
