Maharashtra Industrial Subsidies & Professional Opportunities By CA G. B. Modi

Ex CM DEVENDRA FADNAVIS TALKS OF ‘MAKE IN
MAHARASHTRA’ FOR INDUSTRIAL GROWTH
EX. CM DEVENDRA FADNAVIS PROMISED TO SET UP A COMMITTEE TO FAST
TRACK THE PROJECTS WHICH ARE INORDINATELY DELAYED DUE TO NON-
CLEARANCE FROM MINISTRY OF ENVIRONMENT.

MAHARASHTRA GOVT. POLICIES
No. NAME OF POLICY No. NAME OF POLICY
1 MAHARASHTRA PACKAGE SCHEME OF
INVENTIVES-2019MAHARASHTRA
2 MAHARASHTRA STATE WOMEN
ENTREPRENEURS POLICY
3 MAHARASHTRA C HIEF MINISTER
AGRO AND FOOD POCCESSING
POLICY- 2018
4 MAHARASHTRA TEXTILE POLICY 2018-2023
5 MAHARASHTRA IT/ITES POLICY-2019 6 MAHARASHTRA ELECTORINS POLICY- 2016
7 MAHARASHTRA LOGISTICS PARK
POLICY-2018
8 MAHARSHTRA STATE ELECTRIC VEHICLE
POLICY-2018
9 MAHARASHTRA GEMS & JEWWLLARY
PARK POLICY
10 MAHARSHTRA TOURISM POLICY-2016
11 MAHARASHTRA CLOUD COMPUTING
POLICY 2018
12 MAHARASHTRA FIN TECH POLICY-2018
13 MAHARASHTRA AEROSPACE DEFENCE
MANUFACTURING POLICY- 2018
14 MAHARASHTRA TELECOM
INFRASTRUCTURE POLICY-2018
www.industrialsubsidy.com By CA. G B Modi

PERIOD OF OPERATION
THE PSI-2019 SCHEME, AS MAY BE AMENDED BY THE GOVERNMENT
FROM TIME TO TIME, SHALL REMAIN IN OPERATION FROM
1st April, 2019
To
31st March, 2024

PACKAGE SCHEME OF INCENTIVES
2019
GOVERNMENT OF MAHARASHTRA

For the purposes of the PSI- 2019, detailed Taluka wise classification of different areas of the State as Group, A /B/ C/
D/ D + etc., on the basis of their level of industrial development is as follows –
Denotes Areas where some industrial development has taken place, but are less developed than the areas under
Group A.
Group B
Denotes Industrially developed areas.
Group A
Denotes Areas, which are less developed than those covered under Group B.
Group C
Denotes the lesser-developed areas of the State, not covered under Group A Group B/Group C.
Group D
Group B = (-A)
Group C = - (A+B)
Group D = - (A+B+C)

Denotes District having no industries and not covered under Group A / B/ C / D & D+.
No Industry District
Naxalism Affected Area
Denotes Area affected by naxalism, as described in GR No NAVIKA-2008/C.R.209/Ka. 1416 Dated 31.5.2009.
Denotes the least developed areas, not covered under Group A/Group B/Group C/Group D.
Group D+ Group D+ = - (A+B+C+D)

www.industrialsubsidy.com 94222-85096 By CA. G B Modi

 A New Unit shall mean a Unit which is set up for the first time by an entity in the
 Private Sector
 Co-operative Sector
 State
 Joint Sector
 In any Taluka where there is no Existing Unit set up by the said entity,
PROVIDED THAT SUCH UNIT SATISFIES THE FOLLOWING CONDITIONS:
 It is not an Existing Unit.
 At least one of the Effective Steps is completed on or AFTER the 1st April, 2019 for setting
up the Unit.
 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.
NEW UNIT

An investment shall be regarded as Expansion Project or a Diversification Project, as the
case may be, if an Existing / New Unit in any of the areas covered under.
1) Group “B”,
2) Group “C”,
3) Group “D”,
4) Group D+,
5) Naxalism Affected Areas
6) Aspirational District or No-Industry- Districts,
 Makes, on or after the date 1st April, 2019,
An additional fixed capital investment in additional production / manufacturing facilities
 For manufacture of the same product / products as of the Existing /New Unit or
 For manufacture of different products,
 As the case maybe provided it satisfies the Three conditions, namely.
EXPANSION/ DIVERSIFICATION PROJECT

EXPANSION / DIVERSIFICATION PROJECT (CONDITIONS)
EXPANSION / DIVERSIFICATION PROJECT
EXPANSION
31-03-2020
10 CR GROSS
ASSETS
25 %
INCREASED
PRODUCTION
CAPACITY
25 %
INCREASED
INVESTMENT
10 %
INCREASED
MANPOWER

 The said additional Fixed Capital Investment for expansion / diversification of the Existing/ New Unit
should exceed 25 % of the Gross Block of the Existing / New Unit immediately prior to setting up of
the additional production /manufacturing facilities, as on the last day of the previous financial year,
subject to a minimum additional fixed capital investment of Rs. 10 crores in case of LSI and Special
LSI, Rs. 5 crores in case of non-MSMEs and upto Special LSI and Rs. 25 Lacks, in case of MSMEs.
 In the case of Expansion or Expansion-cum-Diversification but not mere Diversification "per se", the
said additional Fixed Capital Investment should result in increase of existing installed production
capacity by at least 25 % ; and
 Such Expansion / Diversification should increase the employment in the non-supervisory category at
least to the extent of 10 percent of the pre expansion/diversification level of such employment and
80 % of such additional employment should be from amongst local persons.
Note: The above criteria should be fulfilled for single location of the Unit which is undergoing expansion /
diversification. Sum total of investment made in Units of the same entity at various locations shall not be
considered for qualifying criteria for expansion / diversification.
EXPANSION / DIVERSIFICATION PROJECT (CONDITIONS)

For the purpose of incentives of :-
1) Industrial Promotion Subsidy,
2) Interest Subsidy,
3) Electricity Duty Exemption,
4) Power Tariff Subsidy etc.,
 Applicable to an Eligible Unit subject to the fulfilment of the conditions of the PSI-2019,
 The period of eligibility shall be computed from the Effective date of Eligibility and depend on the
nature and location of the Eligible Unit.
In respect of Mega Projects/ Ultra Mega Projects, the eligibility period shall be as, approved by the
“Cabinet Sub Committee” or the “High Power Committee”, subject to fulfilment of the conditions of the
PSI- 2019.
ELIGIBILITY PERIOD

EFFECTIVE STEPS
STEPS COMPLTE AFTER 01-04-2019 AND BEFORE 31.03.2024
LAND MPCB CERTIFICATE CONSTITUTION
ANY
ONE

The following categories of Eligible Industrial Units in the Private Sector, Co-operative Sector, Central Public
Sector, State Public Sector/ Joint Sector shall be eligible to be considered for incentives under the PSI- 2019 :-
 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.
COVERAGE UNDER THE PSI - 2019

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 which are a part of INTEGRATED manufacturing process.
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.
www.indusrialsubsidy.com By CA. G B Modi
COVERAGE UNDER THE PSI - 2019

FINANCIAL
INCENTIVES FOR
MSMEs/LSIs UNDER
PSI-2019

Taluka / Area Ceiling as % of Fixed Capital
Investment
No. of Year
1 2 3
A Nil Nil
B 30 % 7 Year
C 40 % 7 Year
D 50 % 10 Year
D+ 60 % 10 Year
Vidarbha, Marathwada, Ratnagiri, Sindhudurg & Dhule 80 % 10 Year
Aspirational Districts
(Osmanabad, Gadchiroli, Washim and Nandurbar)
100 % 10 Year
No Industry Districts, Naxalism Affected Areas*
MSME / FCI = 50 CR
Eligible subsidy according to location

CLASSIFICATION OF AREAS UNDER PSI – 2019
Sr.
No. Division
District Talukas
1
Konkan
Division
Grater Mumbai Greater Mumbai
Thane Thane, Kalyan, Ulhasnagar, Ambarnath ,Bhivandi @
Palghar Vasai, Palghar
Raigad
Alibag @ , Uran, Panvel, Karjat@, Khalapur, Pen,
Roha
2
Pune
Division Pune
Pune City, Maval, Haveli @ , Bhor @, Daund@,
Shirur@, Khed @, Mulshi @ Purander @ , Velhe @
Group A
@ : Within Mumbai Metropolitan Region (MMR), PMR

Group B
Sr.
No.
Division District Talukas
1 Konkan
Division
Thane Murbad
Palghar Dahanu
2 Nashik
Division
Nasik Nashik Taluka

Sr.No
.
1 Konkan Division Thane Bhivandi $ , Shahapur
Raigad Karjat $, Mahad, Mangaon,
Murud
Ratnagiri Ratnagiri, Chiplun
2 Pune Division Pune Shirur $, Daund $, Bhor $ , Khed
$, Indapur, Baramati, Purandar$
3 Nashik Division Nashik Niphad , Sinnar
Group C
$ : Outside MMR / PMR

Sr.
No.
1 Konkan
Division
Raigad Shrivardhan
Ratnagiri Khed
Sindhudurg Vengurla
2 Pune
Division
Pune Ambegaon, Junnar
Solapur Solapur (North) , Pandharpur, Malshiras
Satara Satara, Khandala, Koregaon, Phaltan, Khatav, Karad,
Mahabaleshwar
Sangali Miraj
Kolhapur Karveer, Panhala, Hatkangale, Shirol
3 Nasik
Division
Nasik Dindori, Yeola, Igatpuri
Ahmednagar Nagar, Rahuri, Shrirampur, Newasa, Karjat, Shrigonda,
Akola, Sangamner, Kopargaon, Rahata
Jalgaon Jalgaon, Yawal, Chalisgaon, Amalner, Dharangaon
Aurangabad
Division
Aurangabad Aurangabad
Nagpur
Division
Nagpur Nagpur City
Group D

Group D+
Sr.
No
1
KONKAN
DIVISION
Palghar Jawhar, Mokhada, Talasari Wada, Vikramgad
Raigad Poladpur Mhasala Tala
Ratnagiri Guhagar, Dapoli, Lanja, Mandangad, Rajapur, Sangameshwar
Sindhudurg Kankavli, Kudal, Sawantwadi, Malvan, Deogad, Vaibhavwadi, Doda Marg
2 Pune
Division
Pune Velhe $
Solapur Barshi, Akkalkot, Solapur (South) Mohol, Mangalwedhe, Sangole, Karmala,
Madha
Satara Wai, Man, Patan, Jaoli
Sangali Tasgaon, Khanapur, Atapadi, Jat, Kavathe Mahaankal, Walwa, Shirala,
Kadegaon, Palus
Kolhapur Kagal, Gadhinglaj, Chandgad, Ajra, Bhudargad, Radhanagari, Baavada,
Shahuwadi
3 Nasik
Division
Nasik Peth, Surgana, Kalwan, Baglan, Chandwad, Nandgaon, Trimbakeshwar,
Deola , Malegaon
Ahmednagar Shevgaon, Pathardi, Jamkhed, Parner
Dhule Sakri, Shirpur, Shindkheda
Nandurbar Nandurbar, Nawapur, Shahada, Talode, Akrani, Akkalkuva
Jalgaon Chopada, Raver, Edalabad, Bhusawal, Jamner, Pachora, Bhadgaon, Parola,
Erandol, Bodgaon

Sr.
No
4 Aurangabad
Division
Aurangabad Khuldabad, Kannad, Soegaon, Siliod, Paithan, Gangapur, Vaijapur,
Phulambri
Jalna Jalna, Ambad, Jafferabad, Partur, Bhokargaon, Badnapur, Ghangsavangi,
Mantha
Beed Beed, Georai, Majalgaon, Ambejogai, Kaij, Patoda, Ashti, Pharur, Parli,
Wadavani, Shirur Kasar
Osmanabad Osmanabad, Kalamb, Omerga, Tuljapur, Paranda, Bhum, Washi, Lohara
Parbhani Parbhani, Jintur, Selu, Gangakhed, Pathri, Palam, Purna, Manawat,
Sonpeth
Hingoli No Industry District
Latur Latur, Ahmedpur, Udgir, Nilanga, Ausa, Chakur, Deoni, Shirur- Anantpal,
Jalkot, Renapur
Nanded Nanded, Bhokar, Hadgaon, Kinwat, Biloli, Degpur, Mudkhed, Kandhar,
Loha Mudkhed Ardhapur Naigaon Dharmabad Himayatnagar Umari
Mahur
5 Amravati
Division
Amravati Amravati Achalpur Bhatkuli Nandgaon Khandeshwar Chandur Bazar
Morshi Warud Chandur Rly. Teosa Daryapur Anjangaon Surji
Chikhaldara Dharni Dhamangaon Rly.
Akola Akola, Barshitakli, Akot, Telhara, Balapur, Patur, Murtijapur
Washim Washim, Malegaon, Risod, Mangrulrpir, Manora, Karanja
Group D+

Sr.
No
5 Buldhana
Division
Buldhana Buldhana Chikhali Shegaon DeulgaonRaja Malkapur Motala
Nandura Jalgaon, Jamod, Sangrampur, Khamgaon, Mehkar
Sindakhed-Raja Lonar
Yavatmal Yavatmal, Babhulgaon, Kalamb, Kelapur, Ralegaon, Ghatanji, Wani,
Maregaon, Pusad, Mahagaon, Umarkhed, Darwaha, Ner, Digras,
Arni ,Zari-Jamd
6 Nagpur Division Nagpur Nagpur (R) Kamptee Hingana, Katol, Narkhed, Savner, Kalmeshwar,
Ramtek, Parseoni, Mauda, Umred, Bhiwapur, Kuhi
Bhandara Bhandara, Pauni, Tumsar, Mohadi, Sakoli, Lakhanpur, Lakhani
Gondia Gondia, Goregaon, Tirora, Arjuni- Morgaon, Deori, Sadakarjuni,
Amgaon, Salekasa
Wardha Wardha, Deoli, Seloo, Arvi, Karanja, Ahsti, Hinganghat, Samudrapur
Chandrapur Chandrapur Gondpipri Mul Warora Chimur Bhadravati
Brahmapuri Sindewahi Nagbhid Rajura Korpana Sawali Pobhurna
Ballarpur Jiwati
Group D+

No Taluka
1 Ratnagiri
2 Sindhudurg
3 Dhule

NO INDUSTRY DISTRICT
Sr.
No.
1 Aurangabad
Division
Hingoli All Talukas of Hingoli
2 Nagpur
Division
Gadchiroli All Talukas of Gadchiroli

Sr.
No. Division District Talukas
1 Nagpur
Division
Gadchiroli Chamorshi ,Gadchiroli Aheri ,Armori Kurkheda, Desaiganj
(Vadasa),Dhanora , Etapalli, Sironcha ,Mulchera, Korchi,
Bhamragad
Gondia Gondia,Tiroda,Goregaon,Deor,Amgaon.
Salekasa,Arjuni Morgaon,Sadak Arjuni
Chandrapur Chandrapur, Gondpipri, Rajura, Korpana, Jiwati, Ballarsha,
Pobhurna, Mul, Sawali
Bhandara Sakoli, Lakhandur, Lakhani
Yavatmal Pandharkawda, Wani, Zari-Jamdi, Ghatanji, Arni
2 Aurangabad
Division
Nanded Kinwat
GROUP NAXALISM AFFECTED AREA

SR.
NO.
DIVISION DISTRICT TALUKAS
1 Aurangabad Division Osmanabad All Talukas of Osmanabad
2 Nagpur Division Gadchiroli All Talukas of Gadchiroli
3
Aurangabad Division Washim All Talukas of Washim
4
Nashik Division Nandurbar All Talukas of Nandurbar
• ASPIRATIONAL DISTRICTS :-

Taluka /
Area
Ceiling as % of Fixed
Capital Investment
Cost of Project
Rs 10 Crore
Eligible Amount of
Subsidy
No. of
Year
Per Year
Subsidy
1 2 3 4 5 6
A Nil 10 Cr Nil Nil Nil
B 30 % 10 Cr 3 Cr 7 Year 42.85 Lac
C 40 % 10 Cr 4 Cr 7 Year 57.14 Lac
D 50 % 10 Cr 5 Cr 10 Year 50 Lac
D+ 60 % 10 Cr 6 Cr 10 Year 60 Lac
Vidarbha, Marathwada,
Ratnagiri, Sindhudurg &
Dhule
80 % 10 Cr 8 Cr 10 Year 80 Lac
(Osmanabad, Gadchiroli,
Washim and Nandurbar) 100 % 10 Cr 10 Cr 10 Year 1 Cr
No Industry Districts,
Naxalism Affected Areas*
Example – 1 MSME / FCI = 50 CR

• WOMEN POLICY-2017 BENEFIT
Taluka /
Area
Ceiling as % of
Fixed Capital
Investment
Cost of Project
Rs 10 Crore
Maximum
Subsidy
Eligible Amount
of Subsidy
No. of Year Per Year
Subsidy
1 2 3 4 5 6 7
A 15 % 10 Cr 20 Lac 20 Lac From the
Date of
Production
Equal
Instalment
In 5 Years
4 Lac
B 15 % 10 Cr 20 Lac 20 Lac 4 Lac
C 15 % 10 Cr 20 Lac 20 Lac 4 Lac
D 20 % 10 Cr 25 Lac 25 Lac 5 Lac
D+ 25 % 10 Cr 50 Lac 50 Lac 10 Lac
35 % 10 Cr 100 Lac 100 Lac 20 Lac

• PACKAGE SCHEME OF INCENTIVE-2019
• WOMEN POLICY-2017
TALUKA / AREA COST OF PROJECT
RS 10 CRORE
PACKAGE SCHEME OF
INCENTIVE-2019
WOMEN POLICY
2017
TOTAL
SUSBSIDY
Maximum
Amt (Lac)
Maximum
Amt (Lac)
Maximum
Amt (Lac)
A 10 Cr - 20 Lac 20 Lac
B 10 Cr 4 Cr 20 Lac 4.20 Cr
C 10 Cr 5 Cr 20 Lac 5.20 Cr
D 10 Cr 6 Cr 25 Lac 6.25 Cr
D+ 10 Cr 8 Cr 50 Lac 8.50 Cr
Naxalism Affected
Areas*
10 Cr 10 Cr 100 Lac 11 Cr

Taluka / Area
Classification
Minimum
Admissible Fixed
Capital Investment
(INR Crore)
Minimum Direct
Employment
(Number of People)
Ceiling as % of Fixed
Capital Investment
1 2 3 4
A & B 750 1000 0
C 500 750 40%
D 250 500 40%
D + 150 400 40%
Dhule
100 300
40%
Washim and Nandurbar) 100 250
40%
Example – 2 Eligible Criteria to LSI

Taluka / Area
Classification
Minimum
Admissible Fixed
Capital Investment
(INR Crore)
Minimum Direct
Employment
(number of
people)
Ceiling as % of Fixed Capital Investment
1 2 3 4
A & B 1500 2000 High Power Committee (HPC), under Chief
Secretary, constituted vide
GR.IDL1005/(CR119)/IND-8 dated 2.6.2005
will approve the customized Package of
Incentives to Mega and Ultra Mega projects on
case-to-case basis. Cabinet Sub Committee
under Chairmanship of the Chief Minister
constituted for Industry vide GR IDL-
1097/(13478)/IND-8 dated 18.1.1998 and
reconstituted vide GR.IDL- 1004/(CR318)/IND-
8 dated 24.12.2004 will approve customized
incentives on case-to case basis.
C 1000 1500
D 750 1000
D + 500 500
Dhule
350 500
Washim and Nandurbar) 200 350
Ultra-Mega Industrial Units
(Entire State)
4000 4000
Eligible Criteria to Mega & Ultra Mega Units

• MSME shall include units as per the definition of Government of India- Micro, Small and
Medium Enterprises Development (MSMED) Act, 2006, as well as the small industries with FCI
(Fixed Capital Investment) of up to 50 Cr
• New MSME Units will eligible for BASKET OF INCENTIVES which includes:-
i. Industrial promotion subsidy ii. Interest Subsidy 5% iii. Power tariff Subsidy
Rs 1/- Per Unit
FINANCIAL INCENTIVES FOR MSMEs/LSIs UNDER PSI-2019
 The total quantum of incentives will be linked to the Fixed Capital Investment.
 The total quantum of incentives excluding the incentives of :-
 Exemption of electricity duty and
 Waiver of stamp duty

• GST (IPS) SUBSIDY
GST 18 %
SGST 9%
CGST 9%
GST REFUND
FORM DIC
SGST- 9 %
GST 18 %
IGST 18%
GST REFUND
FORM DIC NILL

 Eligible New Micro, Small and Medium Enterprises (MSME) will be eligible
for Interest subsidy in respect of interest actually paid to the Bank and Public
Financial Institutions.
 The amount of Interest Subsidy will be calculated @ 5 %
 The quantum of interest subsidy payable to the eligible unit every year will not
exceed the bills paid for electricity consumed during the relevant year.
10 - 5 =
5% (INTEREST)
INTEREST SUBSIDY

POWER TARIFF SUBSIDY
POWER TARIFF
SUBSIDY
Rs 1/- Per Unit 36
Month

 Eligible New Micro, Small and Medium Enterprises (MSME) will be eligible for power tariff subsidy other
than “A” area.
 The subsidy will be to the tune of Rs 1/- per unit for the Units located in
 Vidarbha,
 Marathwada,
 North Maharashtra and the Districts of
 Raigad, Ratnagiri ,Sindhudurg in Kokan Region
And
Rs 0.50 per unit for the Units in other areas of the State for a period of 3 years from the date of commencement of
commercial production, for the energy consumed and paid.
 The Units in Group “A” areas will however not be eligible for this incentive.
POWER TARIFF SUBSIDY

EXEMPTION FROM ELECTRICITY DUTY
A. All Eligible New Units in Group C, D, and D+ areas and No-Industry District(s) and Naxalism affected Area
will be exempted from payment of Electricity Duty during eligibility period not exceeding 15 years.
B. In Group A and B areas:-
 100% Export Oriented Units (EOUs),
 Information Technology Manufacturing Units and
 Bio-Technology Manufacturing units will also be exempted from payment of Electricity Duty for a period of 7
Years.
 Necessary Notification under the provisions of the Electricity Duty Act 1958 will be issued separately by the
Energy Department.

A. New Units as well as Units undertaking Expansion/ Diversification (including Mega
and Ultra Mega Projects) will be exempted from payment of Stamp duty during the
Investment period in Group “C, D, D+ Talukas, No Industry Districts and Naxalism
affected areas.
B. In Group A and B areas, stamp duty exemption would be available as given below:
 BT Manufacturing and IT Manufacturing Units in Public Parks : 100%
 BT Manufacturing and IT Manufacturing Units in Private Parks : 75%
 Mega Projects - 50% for first conveyance deed only
Explanation: Eligible New/Expansion Units of PSI-2019 will also be eligible for Stamp Duty
Exemption during their investment period.
Necessary Notification under the provisions of the Bombay Stamp Act 1958 will be issued
separately by the Revenue & Forest Department.
WAIVER OF STAMP DUTY

What is Technology Upgradation :
Technology up-gradation would ordinary mean induction
of state of the art or near state of the art technology.
It would also mean a significant step up from the present
technology level to substantially higher one involving
improved environmental of improved packaging
techniques as well as anti-pollution measures and energy
conversation machinery.
Further, the units in need of introducing facilities for in-
house testing and on-line quality control would qualify for
assistance.
5% subsidy on capital equipment for Technology Up –gradation, subject to a maximum of Rs.25 lacs
NEW MSMES AND EXPANSION THEREOF IN ALL CATEGORIES OF AREAS WILL BE
ELIGIBLE FOR FOLLOWING INCENTIVES
• INCENTIVES FOR TECHNOLOGY UP-GRADATION

• Technology Up gradation
• Types of Units covered under the scheme:
Units holding eligibility certificate under PSI-2013 and to which assistance
is sanctioned under Credit Link capital subsidy scheme (CLCSS) of MSME
or Technology Up-Gradation Fund Scheme for Textile and jute Industries
(TUFS) or Technology Mission on cotton (TMC) Scheme of Ministry of
Textile, Govt.of India during the period 01/04/2013 to 31/03/2019 shall
be considered eligible for receipt of Technology up-gradation incentives.

New MSMEs and Expansion thereof in all categories of areas will be
eligible for following incentives
Types of Unit Covered under the scheme :
 Unit holding eligible certificate under PSI-2013 and who has filed valid application with the implementing
agency after issue of eligibility certificate within 6 months from expiry of the period of eligibility certificate
as defined under PSI-2013.
 Failure to file valid application within the prescribed period shall render the application invalid.
The above subsidies are paid one time.
 25% on capital equipment for cleaner production measures ,limited to Rs.5 Lakhs
SUBSIDY ON CLEANER PRODUCTION MEASURES

INCENTIVES FOR STRENGTHENING MSMEs AND LSIs
 75 % subsidy on the expenses incurred on quality certification limited to Rs. 1 Lakh.
 25% subsidy on capital equipment for cleaner production measures ,limited to Rs.5 Lakhs
 75 % subsidy on the expenses incurred on patent registration limited to Rs. 10 Lakh for the National patents and
Rs. 20 lakh for the International patents.
New MSMEs and Expansion thereof in all categories of areas will be eligible for
following incentives –

INCENTIVES FOR STRENGTHENING MSMEs AND LSIs
Incentives for Credit Rating of MSMEs in all categories of areas –
 75% of the cost of carrying out Credit Rating by Small Industries Development Bank of India/ Government
accredited Credit Rating Agency, limited to Rs. 40,000.
 New MSMEs, LSI and Expansion thereof will be eligible for the following incentives in all categories of areas –
 75% of cost of water audit limited to Rs. 1.00 lakh.
 75% of cost of energy audit limited to Rs. 2.00 lakh.
 50% of the cost of Capital Equipment under the measures to conserve/recycle water, limited to Rs. 5 lakh.
 50% of the cost of Capital Equipment for improving energy Efficiency, limited to Rs. 5 lakh.

YEARLY CAP FOR THE INCENTIVES
 The amount of incentives to be disbursed to the MSMEs and LSI Units every year will be limited to
the total quantum of incentives divided by the number of years as per the applicable Eligibility period
with the provision of carrying forward the differential between the actual sanctioned amount for a
given year and the yearly disbursement limit.
 For Mega Projects/ Ultra Mega Projects, if the E.C. Period is more than 10 years, the yearly limit on
disbursement amount shall be equal to 1/10 of the total quantum of incentives
OR
 Industrial Promotion Subsidy sanctioned for that year whichever is less.
 The Carry forward principle will be applicable. The balance quantum of incentives will be allowed to
be availed of after 10 years with yearly cap as above. Proportionate quantum of incentives will be
calculated for a part of the year.

 An application for eligibility under the PSI 2019 Scheme shall be submitted to the Implementing
Agency by an Eligible Unit only after it has taken all the Effective Steps but not later than the 31st
March, 2024. It shall be supported by documentary evidence with regard to completion of the
Effective Steps.
 For claiming eligibility under the PSI-2019, any New/Expansion/ Diversification, Eligible Unit shall
commence the commercial production and also acquire the fixed assets at site, having paid for the
same, and paid for it within the investment period.
 The Investment Period for Micro, Small and Medium manufacturing Enterprises will be THREE
YEARS, From the date of application
 And for the LSI units, FOUR YEARS From the date of application
 For Mega Projects /Ultra Mega Projects, the Investment period will be FIVE YEARS From the date
of application
 or such greater period as may be approved by the “High Power Committee” or the “Cabinet Sub
Committee” on case to case basis.
APPLICATION FOR ELIGIBILITY

 The Investment Period will be counted from the date of submission of application to the
Implementing Agency or
the date suggested by the Eligible Unit.
 However, this date should be within this Scheme Period and the assets acquired prior to and
beyond the investment period will not be considered eligible for incentives,
 However, the Land cost prior to submission of valid application shall be considered for Fix
Capital Investment.
 Delay in commencement of commercial production will entail proportionate curtailment of
incentives and the Eligibility Certificate period.

 If a Unit has completed all Effective steps but not started the production before the 1st April, 2019 and has
not filed an application with the Implementing Agency under PSI 2013, such unit can submit the application
under PSI - 2019.
 However, the incentives applicable to such Eligible Unit shall be as per PSI- 2013 or PSI - 2019 , whichever is
lower.
 For such unit , the investment made within the investment period from the date of application only will be
considered for Incentives.
-- SCHEME END--

PERIOD OF OPERATION
The Textile Policy will come into effect from the date of
issuance of the Government Resolution
17th February, 2018
to
31st March, 2023

Objectives of The Textile Policy 2018-23
Encourage setting up of Fiber to Fashion value chain.
Generate 10 lakh new employments in the textile sector.
Special focus on development of the textile industry in cotton
growing areas.
Special focus on processing, knitting, hosiery and garmenting
sectors to create an internationally competitive textile industry in
the State.
Set up pollution free / ecofriendly dyeing and processing
industry.
 Increase Mulberry and Tussar cultivation, increase Silk yarn
production and create a silk tourism corridor.

Encourage traditional silk weaving businesses such as the Paithani
Saree. Also create, promote and market “Adhyatmik Reshim” brand.
Special focus on non-conventional yarn (bamboo, banana, ambadi,
ghaypat, maize, coir, etc.) and its usage with a view to doubling
farmers’ income.
Focus on reviving the entire wool industry from shearing to
garmenting to marketing.
 Special focus on the emerging sector of technical textiles.
 Provide the textile industries with the latest technical expertise
created by institutes such as IITs, SASMIRA and WRA which are
actively engaged in research & development in the textile industry.
Objectives of The Textile Policy 2018-23

Definition

 Existing Project:
Any project existing prior to the announcement of this policy and any project
coming under expansion / diversification / modernization during the period of this
policy.
 New Project:
Any project established and starting production during the period of this policy.
 Expansion Project:
Any existing project increasing its gross fixed capital investment by 25% and
increasing its total production capacity by 25% as compared to the previous year
will be considered as expansion or diversification. Such expansion and / or
diversification will include forward and backward integration.
Definition

 Gross Capital Investment:
Investment in machinery before expansion / diversification /
modernization and / or investment made from financial assistance
approved by financial institutions / banks.
 Modernization Project:
Conversion of old simple power loom to shuttle-less rapier loom and to
any loom based on advanced technology.
 Diversification Project:
Any project undertaken by an existing unit to produce additional
product(s) of the textile value chain.
Definition

 Project Cost:
Aggregate cost of land, building and machinery.
 Eligible Machinery:-
Machinery eligible under centrally sponsored TUFS scheme (including any subsequent
modifications by the Central Government to these schemes) or machinery approved by the
State Government.
 Eligible Amount: -
Long term loans for capital subsidy under the centrally sponsored TUFS scheme (including
any subsequent modifications by the Central Government to these schemes) or long term
loans (excluding taxes) approved by financial institutions or banks for machinery approved
by the State Government.

 Eligible amount for self-financed projects:
As per the criteria of centrally sponsored TUFS scheme (including any subsequent
modifications by the Central Government to these schemes) or cost of machinery
(excluding tax) approved by the State Government.
 Eligibility for Capital Subsidy:
The eligibility for capital subsidy will be decided based on the installed capacity of the
project and actual annual production. .
 Composite Unit: -
A project comprising minimum two activities of the value chain, i.e. spinning, weaving,
knitting, processing and garmenting.

Textile Components included in Textile policy 2018-23:
 Cotton Ginning and Pressing
 Spinning / Silk reeling and twisting / integrated silk park / synthetic filament / yarn
texturing, crimping and twisting
 Weaving and powerloom
 Technical textile, non-woven and converters of non-woven
 Knitting / hosiery / garment / apparel & made-up
 Processing of fiber / yarn / fabric / garments / made-ups
 Processing of non-conventional fiber / yarn / fabrics / garments / made-ups (bamboo,
banana, ghaypat, maize, coir, hemp, etc)
 Expansion of existing textiles units
 Textile Parks / processing parks

Technical Textiles: Such textile production which is aimed not only at fabric production but also at
creating products which could be used in the industrial, defence, research and other advanced sectors
due to its specialized technical properties. These products are classified into following categories
based on their quality and end use:
(1) Agro tech,
(2) Build tech,
(3) Cloth tech,
(4) Geo tech
(5) Home tech,
(6) Ind tech ,
(7) Medi tech,
(8) Mobile tech,
(9) Echo tech,
(10) Pack tech,
(11) Pro tech (Protectivetextile)
(12) Sport tech,
(13) Defence tech,
(14) Products announced by Textiles

Textile Components included in Textile policy 2018-23:
 Energy saving and process control equipment for various textile sectors
 Skill development activities
 Wool sector (i.e. scouring, combing, spinning (worsted, shoddy and woolen) and weaving and carpet
sector.
 Standalone spinning
 Spinning with matching downstream capacity
 Manufacturing viscose filament yarn / viscose staple fiber
 Independent weaving preparatory
 Embroidery on standalone basis
 Composite up gradation (i.e. units going for up gradation in spinning, weaving / knitting and processing)
 Multi-activities (units with two or more activities simultaneously except composite up gradation
mentioned above)
 Composite unit
 Other units of textile industry not mentioned herein

The following projects will be eligible under this scheme:
o Projects for which the long term loan has been approved for
Machinery under the Centrally sponsored TUFS scheme from the
date of issuance of this Government Resolution or thereafter till
31 March 2023.
o Ginning and Spinning projects for which the long term loan has
been approved till 31 March 2023 by banks / financial institutions
and where the projects have submitted Form-A on the State
Government website.

 New / Expansion / Diversification / Modernization self-financed textile
projects will be granted capital subsidy as per capital subsidy in lieu of
Interest Subsidy Scheme.
 Self-financed projects in the Vidarbha, Marathwada and North Maharashtra
regions will be granted additional capital subsidy.
 Textile projects of scheduled castes / scheduled tribes / minority
communities will be granted capital subsidy as per the above mentioned
capital subsidy in lieu of Interest Subsidy Scheme.
 Terms and conditions of Government Resolutions dated 2 December 2015
and 18 December 2015 will be applicable to the capital subsidy in lieu of
Interest Subsidy Scheme for self-financed projects with necessary
modifications
Capital subsidy for self-financed Projects:

 The scheme of providing Rs. 9 crore or 9% of project cost, whichever is lower, to the
projects by the State Government and those which are approved under Central
Government SITP scheme (Government Resolution dated 25 May 2012) will be
continued.
 Integrated Textile Hubs / Parks by the MIDC will be set up at Amravati, Aurangabad,
Beed, Buldhana, Jalna, Jalgaon, Nanded, Parbhani, Yavatmal and Wardha. Essential
infrastructure such as roads, water, electricity, etc. and facilities of testing labs and
CETP will be provided at these Integrated Textile Hubs / Parks.
 At least 100 Ha land at each of these Mega Integrated Textile Hubs will be developed.
 Similar Textile Hubs / Parks will be set up as per requirement in the Vidarbha,
Marathwada and North Maharashtra regions through MIDC.
 Textile Parks / Hubs will be established by MIDC at Ichalkaranji (Hatkanangle) and
Solapur.
Textile Parks

Special incentives will be given to textile projects implementing
environment friendly solar and wind energy projects.
If Spinning mills, power looms and textile projects are ready to
set up green energy projects then , the State Government in
collaboration with MEDA, will formulate a scheme for providing
appropriate subsidy to reduce the overall power subsidy
Incentives to Promote use of Green Energy:

•Electricity Concessions

Cross subsidy on open access will not be levied for textile units.
The State Government’s Energy Department will not levy charges other
than “transmission charges” on projects using non-conventional sources
(solar, wind, etc.) of energy.
 A subsidy of Rs. 3 per unit will be given to co-operative spinning mills for a
period of 3 years.
Within this period of 3 years the units will set up non-conventional power
projects to fulfil their power needs. The restriction of 1 MW is removed
from the net metering scheme.
 The subsidy of Rs. 3 per unit will not be applicable to open access.
The subsidy will be reviewed every year and will be reduced to keep the
overall annual subsidy burden within Rs. 150 crore.
A subsidy of Rs. 2 per unit will be given to powerlooms using power above
200 HP.
Electricity Concessions

 Subsidy given to powerloom units using less than 27 HP, 27 to 200 HP and more than
200 HP, will similarly be applicable to garment, knitting and hosiery units.
 A subsidy of Rs 2 per unit will be given to spinning mills (except co-operative spinning
mills), processing units and all other textile units which are using more than 107 HP
power.
 It is observed that the electricity rates for units using up to 27 HP are more than the
rates applicable for units using 27 to 107 HP. Necessary action will be taken to
eliminate this disparity.
 When any unit is simultaneously using conventional and non-conventional power,
the use of both the power sources will be taken into consideration to decide the load
factor.
 A committee comprising the Director General, Maharashtra Energy Development
Agency (MEDA) and the Director Textile will be set up to finalize the subsidy required
for setting up of co-operative spinning mills on solar power within three years.
Electricity Concessions

Quantum of Assistance

SR. NO SECTOR ELIGIBLE SUBSIDY
1
Processing (yarn, fabric,
printing),
Subsidy to units in General Category 40%
2 Technical textile , Knitting, SC/ST,‘ Minority Category 45%
3 Hosiery and Garmenting *
Additional subsidy for production of
Yarn, fabric and other products from
non - conventional yarn
10% 55%
Additional Capital subsidy for textile
projects in the Vidarbha, Marathwada
and North Maharashtra region
20% 75%
Additional subsidy for units having
Forward/Backward Integration
5% 80%
 5% additional
capital subsidy for
projects with
investment of Rs.
500 crore and
above.
 If it is the first
project / pioneering
project in that taluka
then additional 5%,
totaling to 10%
capital subsidy will
be applicable.
ELIGIBLE SUBSIDY UNDER MAHARASHTRA TEXTILE
POLICY 2018-23 ON ELIGIBLE COST OF MACHINERY

Sr.
No
Sector Eligible Subsidy
4
Composite
Unit **
SC/ST,‘ Minority Category 40%
Additional subsidy for production of Yarn, fabric and
other products from non - conventional yarn
10%
Additional Capital subsidy for textile projects in the
Vidarbha, Marathwada and North Maharashtra region
10%
5% Additional subsidy for new composite unit set up in a
taluka not having any Cooperative or Private spinning mill
5%
ELIGIBLE SUBSIDY UNDER MAHARASHTRA TEXTILE POLICY
2018-23 ON ELIGIBLE COST OF MACHINERY
 5% additional capital
subsidy for projects with
investment of Rs. 500
crore and above.
 If it is the first project /
pioneering project in that
taluka then additional 5%,
totaling to 10% capital
subsidy will be applicable.

Sr. No Sector Eligible Subsidy
5
Spinning,
Ginning,
Pressing
Additional subsidy for production of Yarn,
fabric and other products from non -
conventional yam
10%
Additional Capital subsidy for textile projects in
the Vidarbha, Marathwada and North
Maharashtra region
10%
Additional subsidy for new composite unit set
up in a taluka not having any Cooperative or
Private spinning mill
5%
Additional subsidy for units having
Forward/Backward Integration
5%
 5% additional capital
subsidy for projects
with investment of
Rs. 500 crore and
above.
 If it is the first
project / pioneering
project in that taluka
then additional 5%,
totaling to 10%
capital subsidy will
be applicable.

Sr.
No
Sector Eligible Subsidy
5
Conversion of Old Plain power looms to
Shuttle less Rapier looms or looms based
on latest technology (Modernization of
power looms)
Subsidy to units in General
Category
25%
Additional Capital subsidy
for textile projects in the
Vidarbha, Marathwada and
North Maharashtra region
10%
5% additional capital subsidy for projects with investment of Rs. 500 crore and above.
If it is the first project / pioneering project in that taluka then additional 5%, totaling to 10% capital
subsidy will be applicable.

Sr. No Sector Eligible Subsidy
6
New Power looms based on latest
technology (Other than plain Power
loom), Weaving, Preparatory, Warping,
Sizing, Conning, Twisting, Doubling,
TFO and other textile units
Subsidy to units in the
General category
25%
Subsidy to units in the
SC/ST/Minority category
30%
Additional Capital subsidy
for textile projects in the
Vidarbha, Marathwada
and North Maharashtra
regions:
10%
Additional subsidy for
units having
Forward/Backward
Integration
5%
 5% additional
capital subsidy for
projects with
investment of Rs.
500 crore and
above.
 If it is the first
project /
pioneering project
in that taluka then
additional 5%,
totaling to 10%
capital subsidy will be
applicable.

i. First Instalment: 30% of eligible amount after 12 months from start of production
ii. Second Instalment: 30% of eligible amount after 24 months from start of production
iii. Third Instalment: 40% of eligible amount after 36 months from start of production
CAPITAL SUBSIDY WILL BE DISBURSED AS FOLLOWS:

महिला उद्योजकाांसाठी हिशेष धोरण -२०१७

प्रस्तूत महिला उद्योजकाांसाठी हिशेष धोरणाचे उहिष्ट महिला पररचाहलत उद्योगाांचे प्रमाण ९% िरून २०% पर्यंत सुधारण्र्याचे
आिे. महिला उद्योजकाांच्र्या िाढीसाठी राज्र्यात आश्वासक व्र्यािसाहर्यक िातािरण हनमााण करणे ि ताांहिक, पररचालनात्मक
तसेच आहथाक सिाय्र्य पुरिून राज्र्यातील महिलाांना अहधक रोजगाराच्र्या सांधी हनमााण करण्र्याच्र्या दृष्टीकोनातून राज्र्यातील
महिला उद्योजकाांसाठी हिशेष धोरण-२०१७ ला शासन मान्र्यता िेण्र्यात र्येत आिे. महिला उद्योजकाांसाठी राबहिण्र्यात र्येणाऱ्र्या
हिशेष धोरणाची ि हिशेष प्रोत्सािन र्योजनेची ठळक िैहशष्टर्ये खालीलप्रमाणे राितील:-
१. एकल मालकी घटक :- महिला उद्योजकाांचे १०० टक्क
े भाग भाांडिल
२. भागीिारी घटक :- भागीिारी घटक ज्र्यामध्र्ये १०० टक्क
े भाग भाांडिल
३. सिकारी क्षेि :- सिकार कार्यद्याांतगात ज्र्या सिकारी सांस्थेमध्र्ये १००
टक्क
े महिला उद्योजकाांचा समािेश असलेली सांस्था
४. खाजगी हक
ां िा सािाजहनक मर्यााहित घटक :- ज्र्या घटकाांमध्र्ये महिला उद्योजकाांचे हकमान १०० टक्क
े
भाग भाांडिल असेल अशी क
ां पनी
५. स्िर्यां सिाय्र्यता बचत गट :- जे बचत गट नोंिणीक
ृ त असून, सिर व्र्याख्र्येतील
क्रमाांक ३ आहण ४ नुसार स्थाहपत झालेले आिेत

क) भाांडिली अनुिान:-
निीन ि हिस्ताररत पाि सूक्ष्म, लघु ि मध्र्यम उपक्रमाांना तालुका िगीकरणानुसार अनुज्ञेर्य हस्थर भाांडिली गुांतिणूकीच्र्या
१५% ि ३५% िराने रु. २० ते १०० लाख मर्याािेपर्यंत भाांडिली अनुिान िेण्र्यात र्येईल. प्रस्तुत भाांडिली अनुिान घटकाचे
उत्पािन सुरु झाल्र्यापासून ५ समान िाहषाक िफ्त्र्याांमध्र्ये हितरीत करण्र्यात र्येईल.
क्रमाांक साप्रोयो २०१३ नुसार तालुक्याचे
िगीकरण
भाांडिली अनुदान- (हथिर भाांडिली
गुांतिणूकीचे %)
हिशेष भाांडिली अनुदानाची
कमाल मयाादा (रुपये लाखात)
१. अ ि ब १५% २०
२. क १५% २०
३. ड २०% २५
४. ड+ २५% ५०
५. नक्षल नसलेले हजल्िे ि नक्षल
प्रभाहित हिभाग
३५% १००
क
ें द्रशासन, राज्र्यशासन तसेच त्र्याांचे उपक्रम र्याांचेमार्
ा त इतर र्योजनेंतगात भाांडिली अनुिान हमळत असलेल्र्या घटकाांना
सांबांधीत र्योजनेचा लाभ अनुज्ञेर्य िोईल परांतु एकहित भाांडिली अनुिानाची रक्कम जास्तीत जास्त ५०% च्र्या िर अनुज्ञेर्य
रािणार नािी.

ANY
Question?

CA G.B.MODI
B.Com , FCA
Mob No - 94222-85096
EMAIL- ID – gbmodi@hotmail.com

Maharashtra Industrial Subsidies & Professional Opportunities By CA G. B. Modi

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Maharashtra Industrial Subsidies & Professional Opportunities By CA G. B. Modi

Similar to Maharashtra Industrial Subsidies & Professional Opportunities By CA G. B. Modi (20)

Recently uploaded

Recently uploaded (20)

Maharashtra Industrial Subsidies & Professional Opportunities By CA G. B. Modi