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Package Scheme of incentives (PSI-2013
In order to encourage the dispersal of industries to lesser developed area of the Maharashtra state, the govt. has been giving package of incentives to new industrial unit/ expansion since 1964 Unit set up in the developing regions of the state in under scheme popularly known as “Package scheme of incentives”. The State has approved PS-2013 to further improve conductive industrial climate in the state & to provide global competitive edge to the industries in the state .This policy envisages grant of fiscal & Non-fiscal incentives to the industrial units with a view to helping the units achieve higher & sustainable economic growth with emphasis on balanced regional development &employment generation through greater private & public investment in industrial sector.
APPLICABILITY OF PSI – 2013
From 01st April, 2013 to 31st March, 2018
Coverage under the PSI – 2013 –
- Industries listed in the First Schedule of the Industries (Development & Regulation) Act, 1951
Ø Manufacturing Enterprises as defined in MSMED Act, 2006
- Information Technology Unites registered under Director orate of Industries / MIDC / Development Commissioner / STPI, etc
Ø Bio-Technology Manufacturing Units
- Cold Storage
- Mechanized Food / Agro Processing Industries
- Central Public Sector Units which satisfy qualifying criteria
Type of Industries / Units
- Micro, Small & Medium Enterprise (MSMEs)
- Large Scale Units
- Mega Projects / Ultra Mega Projects – Following shall qualify as Mega / Ultra Mega Projects
EXISTING UNIT
- Unit set up & is in production prior to 1stApril 2013
- Has been granted EC or availed any incentives under earlier schemes.
- Filed a valid application for grant of EC under PSI-2007 before 31st March 2013
NEW UNIT
1) Unit set for the first time in any taluka where there is no existing unit by the said entity provided:
- It is not an existing unit
- At least one of the effective steps completed on or after 1st April 2013 for setting the unit
- Not formed as a result of re-establishment mere change of ownership, change in constitution, reconstruction or revival of an existing unit
EXPANSION/DIVERSIFICATION
An investment shall be regarded as expansion project or a diversification project provided it satisfies:
- Add FCI >= 25% of Gross FCI (minimum FCI of Rs. 5 Crs for non MSMEs & 25 Lacs for MSME’s)
- Additional FCI should result in increase of existing installed capacity by at least 25%
- Such Expansion/Diversification should increase the employment in non supervisory category at least to the extent of 10%
ELIGIBILITY CERTIFICATE (EC)
Eligibility Certificate – Certificate issued by the Supplementing Agency to the eligible unit under PSI which indicates accepted FCI, Actual FCI made, Finished Products & other details along with quantum of incentives, period of validity & other terms & conditions.
ELIGIBILITY PERIOD
For IPS, Interest Subsidy & other incentives period of eligibility shall be computed from the effective date of eligibility and depend on nature of location of eligible unit
OPERATIVE PERIOD
It shall mean and include the minimum period of operation of unit
- For SSI – 5 Years
- For MSI – 7 Years
- For Large and Mega – 10 years
EFFECTIVE STEPS
Shall mean and include:
1) Effective possession of land/shed/gala by an eligible unit.
- Registration in case of Firm/Company/Trust/Society/Co. Op Society
- Enterprises memorandum(EM)/Letter of intent(LOI)/LOI from GOI/permission from State Govt for setting up/ Shifting of the unit
- A copy of Industrial Entrepreneurs’ Memorandum (IEM) in case of LSI / Mega / Ultra mega unit or LOI as the case may be.
Financial Incentives for MSME / LSI
| TALUKA / AREA |
CEILING AS % OF FIXED CAPITAL INVESTMENT |
No. of Year |
| |
MSME |
LSI |
MSME |
LSI |
| A |
-- |
-- |
7 |
7 |
| B |
20 |
-- |
7 |
7 |
| C |
40 |
30 |
7 |
7 |
| D |
70 |
40 |
10 |
7 |
| D+ |
80 |
50 |
10 |
7 |
| NO INDUSTRY DISTRICT |
90 |
70 |
10 |
7 |
| NAXALISM AFFECTED |
100 |
80 |
10 |
7 |
Industrial Promotion Subsidy for MSMEs(IPS)
| Sr No. |
Taluka / Area Classification |
The Quantum of Industrial Promotion Subsidy Every Year |
| 1 |
Naxalism Affected Area |
VAT on Local Sales (-) Input Tax Credit (ITC) or zero whichever is more + CST payable + 100% of ITC |
| 2 |
No Industries District |
VAT on Local Sales (-) ITC or Zero whichever is more + CST Payable + 75% of ITC |
| 3 |
Entire Vidarbha & Marathwada |
VAT on Local Sales (-) ITC or Zero whichever is more + CST Payable + 65% of ITC |
| 4 |
Group D+ Taluka |
VAT on Local Sales (-) ITC or Zero whichever is more + CST Payable + 50% of ITC |
| 5 |
Group D Taluka |
VAT on Local Sales (-) ITC or Zero whichever is more + CST Payable + 40% of ITC |
| 6 |
Group C Taluka |
VAT on Local Sales (-) ITC or Zero whichever is more + CST Payable + 30% of ITC |
| 7 |
Group B Taluka |
VAT on Local Sales (-) ITC or Zero whichever is more + CST Payable + 20% of ITC |
Industrial Promotion Subsidy for LSI(IPS)
| Sr No. |
Taluka / Area Classification |
The Quantum of Industrial Promotion Subsidy Every Year |
| 1 |
Naxalism Affected Area |
100% VAT on Local Sales (-) ITC or Zero whichever is more + CST payable |
| 2 |
No Industries Distict of Vidarbha & Marathwada |
90% VAT on Local Sales (-) ITC or Zero whichever is more + CST payable |
| 3 |
Group D + Taluka |
80% VAT on Local Sales (-) ITC or Zero whichever is more + CST payable |
| 4 |
Group D Taluka |
70% VAT on Local Sales (-) ITC or Zero whichever is more + CST payable |
| 5 |
Group C Taluka |
60% VAT on Local Sales (-) ITC or Zero whichever is more + CST payable |
OTHER BENEFITS:-
- Interest Subsidy for Areas (Other than Group A )
- Exemption from Electricity Duty (Other than Group A/B)
- Waiver of Stamp Duty
- Power Tariff Subsidy for 1st Three Year @ 1 Rs. Per Unit (Other than Group A)
- Incentives for Strengthening MSMEs & LSIs
- Incentives for Units coming up in Naxalism affected Talukas
INCENTIVES:-
- Incentives for Mega / Ultra Mega - Decided by High Power Committee (CTCB)
- Yearly Cap for the Incentives
- Restricted to Total Quantum of Incentives / No. of Years as per EC
- Carry Forward Principle to next year - Applicable
- Actual Disbursement ≤ Yearly Sanctioned Amount
GENERAL PROCEDURE / RULES:-
- Application to be Submitted to the Implementing Agencies
- Commencement of Comm. Production & Acq. Of Fixed Assets - Necessary
- Unit Completed all Effectives Steps but not Started Production – Then?
- If Application Submitted after Commercial Production
- Period & Quantum curtailed Proportionately
- EC to be issued after Compliance of all Steps
MONITORING / REVIEW:-
- Eligible Units – Submit Report Every Year
- Eligible Units – Submit Audited Annual Accounts
- Implementing Agencies – Authorized to call any Information / Details
- Breach of Above Provisions – Consequences
- Continuance / Discontinuance of EC
- Prompt Action to Cancel EC
Ref :- GR No. PSI-2013/(CR- 54)/IND-3 Date 01-04-13
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