PSI-2013 Scheme – New Units

Setting up new manufacturing unit in Maharashtra????
Enjoy Incentives (Subsidies) …..

If you are setting up your manufacturing / processing unit in Maharashtra, then, numbers of incentives (subsidies) are waiting for you as Govt. of Maharashtra has introduced incentive (subsidy) scheme for setting up manufacturing units in industrially backward areas of State under its Package Scheme of Incentives – 2013 Scheme (PSI-2013).

Key Features of the scheme:

    1. Applicable to :
      This scheme is applicable only for new industrial units carrying out manufacturing / processing activities.
    2. Non-applicable to :
      Units carrying on trading / services activities (except IT & ITeS Industry) are not eligible to avail benefits under this scheme.
    3. Investment period :
      Investments made in eligible fixed assets during the period from 01.04.2013 to 31.03.2018 are entitled for incentives (subsidies).
    4. Eligibility criteria for a new unit :
      • It is not an Existing Unit.
      • b. At least one of the Effective Steps is completed on or after the 1st April, 2013 for setting of the Unit.
        • Effective possession of land / shed / gala by an Eligible Unit.
        • Registration, in case of Firm / Company / Trust / Society / Co-operative Society.
        • Enterprises Memorandum / Letter of Intent / Registration for IT/BT Units from the Directorate of Industries or MIDC / Letter of Intent from the Government of India and / or permission from the State Government for setting up / shifting of the Unit, if such permission is required to be obtained.
        • A copy of the Industrial Entrepreneur’s Memorandum (IEM) along with a copy of its acknowledgement in the case of an LSI Unit/Mega Unit/Ultra Mega Unit, not covered under the licensing provisions of the Industries (Development & Regulation) Act, 1951 or letter of intent, which is covered under license provision of the said Act.
      • It is not formed as a result of re-establishment, mere change of ownership, change in the constitution, reconstruction or revival of an Existing Unit.
    5. Assets eligible to get incentives (subsidies) : Normally, investment made in factory land, factory building & related construction, plant & machinery, electricity deposit, technical know-how purchase amount etc. etc. at the location of manufacturing unit are considered for incentives calculation purpose.
    6. Existing & upcoming units in same Taluka : In this situation, upcoming unit will be treated as an expansion unit & accordingly, all applicable benefits for an expansion unit can be granted to upcoming unit.
    7. Existing & upcoming units in different Taluka : Alternatively, in this situation, upcoming unit will be treated as a new unit & accordingly, all applicable benefits for a new unit can be granted to upcoming unit.
    8. Category of an unit to avail subsidy benefits : Units of all categories viz. micro / small / medium / large / mega / ultra-mega scale are eligible to avail benefits under PSI-2013 Scheme.
    9. Restriction of location for expansion units : Units located in any Group Talukas except located in Group A Talukas / areas (as defined by PSI-2013 Scheme) are eligible to avail incentives (subsidy) benefits.
    10. Coverage of businesses :
      • Industries listed in the First Schedule of the Industries (Development and Regulation) Act, 1951, as amended from time to time.
      • Manufacturing Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006. (MSMED Act, 2006)
      • Information Technology Manufacturing Units registered with the Directorate of Industries or the Maharashtra Industrial Development Corporation (MIDC) or the Development Commissioner, Santacruz Electronic Export Processing Zone (SEEPZ) or Software Technology Parks of India (STPI) in the State.
      • Bio-technology Manufacturing Units as specified by the Government from time to time, which are outside the purview of any registering authority mentioned above.
      • Cold Storages
      • Mechanized Food/Agro Processing Industries in the following sectors :
        • Dairy, Fruit and Vegetable Processing.
        • Grain Processing.
        • Fish Processing.
        • Consumer foods including Packed foods.
        • Non-alcoholic beverages from fruits and vegetables
      • Central Public Sector Units which satisfy the qualifying criteria as defined in Para No. 2.2(iii) of Government Resolution No. PSI-2013/(CR-54)/IND-8 Dt. 01.04.2013.
    11. Eligibility to get various benefits under PSI-2013 Scheme by new unit vis-à-vis an expansion unit :
Sr. No. Particulars New Project Expansion Project
1 Vat Tax Refund YES YES
2 Interest Subsidy YES NO
3 Power Tariff Subsidy YES NO
4 Electricity Duty Waiver YES NO
5 Stamp Duty Waiver YES YES
6 Other subsidies YES NO

 

    1. Eligibility for mega & ultra-mega projects :
Type of Unit Taluka / Area Classification Minimum Fixed Capital Investment (Rs. In Cr.) Minimum Direct Employment (Nos.)
Mega Project A & B 750 1,500
C 500 1,000
D & D+ 250 500
No industry district & Naxalism affeted area 100 250
Ultra mega project Entire state 1,500 3,000

Provided that :

      • Mega projects based on employment criteria shall be required to maintain the qualifying direct employment throughout the year and 75% of such employees should be local persons. If the employment criteria is not maintained in any month of the year for which Industrial Promotion Subsidy is claimed, then Industrial Promotion Subsidy shall not be admissible for such year.
      • Minimum Direct Employment prescribed in the table above should be created within a period of two years from the date of commercial production.
      • The investment in Captive Power Plant shall not be considered for determining the qualifying criteria for eligibility as Mega Project/Ultra Mega Project.
    1. Special additional incentives for agro / food processing units :
      • 10% additional subsidy as compare to other eligible units under this scheme
      • Subsidy benefits can be availed for additional 1 year than sanctioned as per the scheme
    2. Financial incentives for agro / food processing new units :
Taluka / Area Ceiling as % of Fixed Capital Investment No. of Years
Micro, Small & Medium Enterprises Large Scale Enterprises Micro, Small & Medium Enterprises Large Scale Enterprises
A —- —- —- —-
B 30 —- 8 —-
C 50 40 8 8
D 80 50 11 8
D++ 90 60 11 8
No Industry District 100 80 11 8
Naxalism affected area 110 90 11 8

 

    1. Financial incentives for non-agro / non-food processing new units :
Taluka / Area Ceiling as % of Fixed Capital Investment No. of Years
Micro, Small & Medium Enterprises Large Scale Enterprises Micro, Small & Medium Enterprises Large Scale Enterprises
A —- —- —- —-
B 20 —- 7 —-
C 30 30 7 7
D 70 40 10 7
D++ 80 50 10 7
No Industry District 00 70 10 7
Naxalism affected area 100 80 10 7

 

    1. Special window for PSI-2007 cases :

If a Unit has completed all Effective steps but not started the production before the 1st April, 2013 and has not filed an application with the Implementing Agency under PSI 2007, such unit can submit the application under PSI – 2013. However, the incentives applicable to such Eligible Unit shall be as per PSI- 2007 or PSI – 2013, whichever is lower. For such unit, the investment made within the investment period from the date of application only will be considered for Incentives. In respect of a Mega Project, where customised package has been approved by the High Power committee or the Infrastructure Committee / Cabinet Sub Committee under PSI – 2007, but the Unit has completed/ not completed the effective steps within the period of PSI – 2007 and has not applied to the Directorate of Industries for Eligibility Certificate as per Para No. 4.1 (1) of PSI – 2007, such Mega Project will be eligible for approved customised package only. However, the Unit should complete the effective steps and file an application with the Implementing Agency within the operative period of PSI -2013, but before starting the commercial production.

  1. Operation of said PSI-2013 Scheme shall be subject to prevailing rules & regulations.

Disclaimer :

  • Above study report / information has been provided solely to create general awareness about Subsidy schemes as sponsored by Maharashtra Govt.
  • For more details, please visit https://maitri.mahaonline.gov.in & District Industries Center of respective districts.
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