The document provides an overview of Maharashtra's Package Scheme of Incentives from 2013-2018. The scheme aims to promote industrialization by providing various fiscal incentives to new and expanding industrial units based on their location and investment size. Key benefits include VAT refunds, electricity duty exemption, power tariff subsidy, interest subsidy, and stamp duty waiver. Eligible units must fall under micro, small, medium or large & mega categories and be located in designated incentive zones to qualify for the subsidies and tax breaks outlined in the scheme.

1. PACKAGE SCHEME OF INCENTIVESPACKAGE SCHEME OF INCENTIVES
2013-20182013-2018
( An Overview )
GOVERNMENT OF MAHARASHTRA
DIRECTORATE OF INDUSTIRES

2. Package Scheme Of Incentives 2013-2018
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Introduction :
 The PSI , Introduced in 1964, was amended from time to time .
The last amended Scheme, commonly known as the 2007 scheme
is operative from the 1st
April, 2007 to 31st
March 2013.
 Government Resolution, Industries, Energy and Labour
Department No. PSI-1707/ (CR-50)/IND-8 Dated 30th
March,2007.
 The PSI 2013 was brought into effect from the 1st
April 2013 and it
is valid till 31st
March 2018.

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 All Manufacturing Enterprises in the Private or Public sector.
 Classification of Areas;
Group A:
Group B:
Group C:
Group D:
Group D+:
No Industrial District:
Implementing Agencies : Directorate of Industries
Scope And Coverage :

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Benefits :
 VAT Refund .
 Exemption from Electricity Duty.
 Power tariff subsidy.
 Interest Subsidy.
 Waiver of Stamp Duty.

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 CASE 1 : Establishment or setting up of New units
 New projects, which are set up in the specified areas of the State, will be
eligible for Industrial Promotion Subsidy (IPS).
 The quantum of subsidy will be linked to the Fixed Capital Investment.
 Payment of IPS every year will be upto 100% of any Relevant Taxes paid by
the eligible unit to the State or to any of its departments or agencies.

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 CASE 2: Expansion of existing units
 Units making additional investment to the extent of 25% of gross block
2013 or 1 cr (small unit ) and 5 cr ( medium and large unit ) whichever is
higher is eligible for requirement .
 Eligible subsidy equivalent to 75% of the incentives admissible for new
units.
 The admissible period for availing the subsidy will be reduced by one
year in the respective category and area.

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Benefits To New Micro & Small Manufacturing Enterprises,
Medium Enterprises/LSI
District/Area
Classification
Ceiling As % Of Fixed Capital Investment Number Of Years
Micro & Small
Manufacturing
Enterprises
Medium
Manufacturing
Enterprises / LSI
Micro & Small
Manufacturing
Enterprises
Medium
Manufacturing
Enterprises/LS
I
B 20 - 7 -
C 40 30 7 7
D 70 40 10 7
D+ 80 50 10 7
No
Industry District
90 70 10 7

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MSMED Units (New Units)
Zones
INDUSTRIAL
PROMOTION
SUBSIDY
INTEREST
SUBSIDY
ELECTRICITY DUTY
EXEMPTION
STAMP DUTY
EXEMPTION
POWER TARIFF
SUBSIDY
SUBSIDY
%
NO OF
YEARS
A No
Subsidy
7 No Subsidy No Exemption No Exemption No Subsidy
B 20% 7 5% No Exemption No Exemption Re. 0.50 / Re. 1.00
per unit
C 40% 7 5% 100% 100% Re. 0.50 / Re. 1.00
per unit
D 70% 10 5% 100% 100% Re. 0.50 / Re. 1.00
per unit
D+ 80% 10 5% 100% 100% Re. 0.50 / Re. 1.00
per unit
No Industry
District
90% 10 5% 100% 100% Re. 0.50 / Re. 1.00
per unit
Naxalism
Affected
Area
100% 10 5% 100% 100% Re. 0.50 / Re. 1.00
per unit

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MSMED Units ( Expansion Units)
Zones
INDUSTRIAL
PROMOTION
SUBSIDY INTEREST
SUBSIDY
ELECTRICITY
DUTY
EXEMPTION
STAMP DUTY
EXEMPTION
POWER TARIFF
SUBSIDY
Subsidy %
no of
years
A No
Subsidy
6 No Subsidy No Exemption No Exemption No Subsidy
B 15% 6 No Subsidy No Exemption No Exemption No Subsidy
C 30% 6 No Subsidy No Exemption 100% No Subsidy
D 52.50% 6 No Subsidy No Exemption 100% No Subsidy
D+ 60% 6 No Subsidy No Exemption 100% No Subsidy
No Industry
District
67.50% 6 No Subsidy No Exemption 100% No Subsidy
Naxalism
Affected Area
75% 6 No Subsidy No Exemption 100% No Subsidy

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VAT Benefits :
Groups
MSMED LSI
B
VAT on local sales minus ITC or zero
whichever is more + CST payable + 20% of
ITC
--
C
VAT on local sales minus ITC or zero
whichever is more + CST payable + 30% of
ITC
60% of (VAT on local sales minus ITC
or zero whichever is more )+ CST
payable
D
VAT on local sales minus ITC or zero
whichever is more + CST payable + 40% of
ITC
70% of ( VAT on local sales minus ITC
or zero whichever is more) + CST
payable
D+
VAT on local sales minus ITC or zero
whichever is more + CST payable + 50% of
ITC
80% of (VAT on local sales minus ITC
or zero whichever is more )+ CST
payable
No Industry District
VAT on local sales minus ITC or zero
whichever is more + CST payable + 75% of
ITC
90% of (VAT on local sales minus ITC
or zero whichever is more )+ CST
payable
No Industry District (vidharbh &
marathwada)
VAT on local sales minus ITC or zero
whichever is more + CST payable + 65% of
ITC
90% of (VAT on local sales minus ITC
or zero whichever is more )+ CST
payable
Naxalism Affected Areas VAT on local sales minus Input Tax Credit
(ITC) or zero whichever is more + CST
payable + 100% of ITC
100% VAT on local sales minus Input
Tax Credit (ITC) or zero whichever is
more + CST

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 Eligible New units in C, D and D + areas and No – Industries
District (s) will be exempted from payment of electricity Duty for a
Period of 15 Year.
 Information Technology Manufacturing Units & Boi-Technology
Manufacturing units will also be exempted from payment of
electricity duty act a period of 7 years.

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 Eligible New units micro, small & medium (MSME) will eligible for
Power tariff subsidy. The subsidy will be Rs.0.50 per unit refund for
the period of 3 years other areas of the state.
 Eligible New units micro, small & medium (MSME) will eligible for
Power tariff subsidy. The subsidy will be Rs. 1 per unit for the units
located in vidarbha, marathwada, North Maharashtra and the
districts of raigad, ratnagiri and sindhudurg in kokan region.

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 All eligible new micro, small & medium manufacturing enterprises other
than group “A” will be eligible for interest subsidy. Interest subsidy will be
payable only on amount of term loan taken from bank for acquisition of
fixed asset.
 The quantum of interest subsidy payable every year will not exceed the
bills paid for electricity consumed during the relevant year
Interest Subsidy
 New unit get benefit of 5% interest subsidy per annum for 3 years.

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 New Units as well as Units undertaking Expansion/Diversification
(including mega and ultra mega projects) will be exempted from payment
of stamp duty in “C, D, D + talukas and no industry districts.
 However, in A and B areas, stamp duty exemption would be available to
mega project : 50%
 Explanation: Eligible New/Expansion Units of PSI-2007 will also be eligible
for Stamp Duty Exemption during their investment period.

15. Package Scheme Of Incentives 2013-2018
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 In the case of new unit in D zone with an investment of Rs.10 crore in
MICRO AND SMALL.
Calculations of benefits will be as under
 VAT refund:
for the D zone refund of VAT/CST available 70% of investment in
Fixed Assets. 70% of 10 Crore = 7 crore.
 Electricity duty exemption:
Electricity duty exemption benefits for 15 years.
 Power tariff subsidy.
Rs.0.50 per unit for 3 years. continued

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 Interest Subsidy:
New unit get benefit of 5% interest subsidy per annum for 3 years.
 Stamp duty exemption:
Eligible unit can get 100% Stamp duty exemption for the purpose
of Mortgage of fixed assets, sell deed, lease deed.

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Our Client List For Reference :
Autoline Industries Ltd. (Chakan, Pune),
Bajaj Sons Ltd.,
Mahindra Sona Ltd. ,
Capparo Engineering India Pvt Ltd.( Markal, Pune ),
RSB Transmission ( Sanaswadi, Pune ),
Sany Heavy Industries India Ltd.,
Zuari Rotem Speciality Fertilizers .Ltd,
BCL Forging Ltd. (Satpur, Nashik),
Jagdamba Auto Components Ltd. (Sanaswadi, Pune),
Cable Corporation Of India Ltd. (Sinner, Nashik),
Bhagwati Steel Casting Ltd. (Sinner, Nashik),
MSS India Ltd. (Ambad, Nashik).,
Electrofab Innovation India Pvt.Ltd.
Glotech Mold India Pvt. Ltd.
Dia Alluminium Inia Pvt.Ltd.

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Thank You
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