MaharashtraIndustrial Policy Highlights
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- Frederick Moody
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1 MaharashtraIndustrial Plicy Knwledge Partner
2 Maharashtra Industrial Plicy Given the experience in the last five years, GM have develped the new plicy t attract industries t Maharashtra. The bjectives f the Industrial Plicy, 2013 are: T retain Maharashtra s leadership psitin in industrial investment within the cuntry T further accelerate investment flw t industrially underdevelped regins f the state T create mre emplyment pprtunities The Plicy targets include: T achieve manufacturing sectr grwth rate f per cent per annum; T achieve manufacturing sectr share f 28 per cent f state GDP, T create new jbs fr 2 millin persns and T attract investments f INR 5 lakh crre (INR 5 trillin) The validity f the Industrial Plicy, 2013 is frm 1 st April 2013 t 31st March 2018 Sme f the majr highlights f the plicy are: 1. Incentives fr Mega Prjects Criteria fr qualificatin is based n Investment r emplyment Secretary and higher incentives/ cncessins and relaxing f cnditins, n a case-t-case basis will be apprved by Cabinet Sub Cmmittee under Chairmanship f the Chief Minister Threshld limits fr classificatin f Ultra Mega/Mega prjects is are given in Fig.1: Type f unit Mega Industrial Unit Ultra Mega Industrial Unit Classificatin Fixed Capital Investment(in INR Crre) Direct Emplyme nt A & B 750 1,500 C 500 1,000 D & D Naxalism affected area and N Industry districts Entire state ,000 Further t the threshld limits specified in the earlier industrial plicy, a new categry f Ultra Mega Prjects have been added which includes prjects where investment size is greater than INR 1500 crre r emplyment is greater than 3000 Naxalism affected areas, i.e. Gadchirli, Gndia, Chandrapur, Bhandara, Yavatmal and Nanded have been included alng with the categry f N Industry Districts t bst Industrial develpment Additinal incentives will be prvided t prjects emplying minimum twice the threshld number required t qualify as Mega Prject at that lcatin Custmized Package f Incentives t Mega prjects/ultra Mega Prjects n case-t-case basis by the High Pwer Cmmittee under Chief 2. Incentives fr Large Prjects Industrial Prmtin Subsidy Every year, in areas ther than A & B areas, the Industrial Prmtin Subsidy payable will be calculated at the rate f 60% t 100% f VAT n lcal sales + CST payable n eligible finished prducts. In areas ther than A & B areas, t prvide thrust t Fd Prcessing Sectr in the State, eligible units will be granted additinal 10 per cent incentives and additinal 1 year twards Eligibility Perid. Energy and water audit 75 per cent reimbursement f cst f water and energy audit limited t Rs. 1 lakh fr water audit Page 2
3 Maharashtra Industrial Plicy cntinued and Rs. 2 lakh fr energy audit shall be admissible. 50 per cent cst f capital equipment required fr undertaking measures t cnserve water and energy, limited t Rs. 5 lakh each will be granted t eligible units in the State Stamp duty exemptin Eligible large units will be entitled t 100 per cent stamp duty exemptin In A and B areas, Stamp Duty exemptin will be ffered nly t IT and BT units in IT and BT Parks. Eligible Units under PSI 2007 Scheme will als be eligible fr stamp duty exemptin fr their Investment Perid Electricity Duty exemptin Eligible new units in C, D, D+, N Industries Districts and Naxalism affected Area will als be entitled t exemptin frm payment f electricity duty fr tenure equal t the eligibility perid. In A and B areas, Electricity Duty exemptin will be ffered t 100 per cent EOU Large Scale units and IT/BT units fr 7 years Threshld limits fr classificatin f Large prjects is given in Fig.2 Classificatin Mnetary ceiling as per cent f admissible Fixed Capital Investment* Eligibility Perid (years) A - 7 B - 7 C 30 7 D 40 7 D N Industry Districts Incentives fr MSME Prjects Industrial Prmtin Subsidy Equal t VAT n lcal sales + CST payable + 20% t 100% f ITC n eligible finished prducts. (In areas ther than A areas n annual basis) Pwer tariff subsidy Eligible fr new units Lcated in Vidarbha, Marathwada, Nrth Maharashtra, and Districts f Raigad, Ratnagiri and Sindhudurg in Knkan Extent f Rs 1/ - per unit cnsumed in abve mentined regins and in areas ther than the abve (except A areas) t the tune f Rs. 0.50/ - per unit cnsumed 3 years frm the date f cmmencement f cmmercial prductin Interest 5 per cent p.a., maximum up t the value f electricity cnsumed and bills paid fr that year, will be admissible. (In areas ther than A area) Fd Prcessing Sectr Eligible units will be granted additinal 10 per cent incentives and additinal 1 year twards Eligibility Perid. Energy and Water Audit 75 per cent reimbursement f cst f water and energy audit Assistance by way f 50 per cent grant limited t Rs. 1 lakh fr water audit and Rs. 2 lakh fr energy audit 50 per cent cst f capital equipment required fr undertaking measures t cnserve water and energy, limited t Rs. 5 lakh each Additinal Incentives Incentives fr imprving Quality Cmpetitiveness, Research and Develpment, Technlgy Up- Naxalite Affected Area 80 7 Page 3
4 Maharashtra Industrial Plicy cntinued gradatin and Cleaner Prductin Measures will be cntinued with suitable mdificatins Stamp Duty Exemptin In additin t incentives listed abve, eligible MSMEs will be entitled t 100 per cent stamp duty exemptin within investment perid fr acquiring land (including assignment f lease rights and sale certificate) and fr term lan purpses. In A and B areas Stamp Duty exemptin will be ffered nly t IT and BT units in IT and BT Park s. Electricity Duty Exemptin Eligible New MSMEs in C, D, D+, N Industries Districts and Naxalism affected Area will be entitled t exemptin frm payment f electricity duty fr tenure equal t the eligibility perid. In A and B areas Electricity Duty exemptin will be ffered t 100 per cent Exprt Oriented MSMEs and IT/BT units fr seven years. Threshld limits fr classificatin f MSME prjects is given in Fig. 3 Classificatin Mnetary ceiling as per cent f admissible Fixed Capital Investment* Eligibility Perid (years) A - 7 B - 7 C 30 7 D 40 7 D N Industry Districts 70 7 Naxalite Affected Area 80 7 Page 4
5 Fr further enquiries.. Cntact the MIDC Investr Facilitatin Cell at Disclaimer All rights reserved. All cpyright in this presentatin and related wrks is slely and exclusively wned by MIDC. The same may nt be reprduced, whlly r in part in any material frm (including phtcpying r string it in any medium by electrnic means d anwhether r nt transiently r incidentally t sme ther use f this presentatin), mdified r in any manner cmmunicated t any third party except with he t written apprval f MIDC. Page 5
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