Government Policies for Maharashtra

Industrial Policy 2019

The State Government has recently declared the New Industrial Policy - 2019 to ensure sustained industrial growth through various innovative initiatives so as to further improve the Government Resolution No: PSI -2019 / CR 46 / IND-8.

The new policy has offered several fiscal benefits as follows:

• Industrial Promotional Subsidy
• Interest Subsidy
• Exemption from Electricity Duty
• Waiver for Stamp Duty
• Power Tariff

For more details click here

Electronic Policy 2016

Industrial Promotion Subsidy:

• All eligible MSMEs and LEs in category A and B area will be offered IPS equal to [VAT on local sales minus ITC (Input Tax Credit) or zero whichever is more + CST payable + 75% of ITC] and in other parts of state [VAT on local sales minus ITC or zero whichever is more + CST payable + 100% of ITC] on eligible finished products

Interest Subsidy:

• All new/ expansion units will be eligible for interest subsidy on term loans availed from Banks and Public Financial Institutions for acquisition of fixed assets for the eligible project. For the purpose of this assistance, bank’s prime lending rate or the rate of interest actually charged, minus penal interest if any, whichever is less, will be taken as the effective interest rate.
• The quantum of interest subsidy will be calculated at effective rate of interest, after deducting the interest subsidy receivable under any Govt. of India scheme or 5% per annum, whichever is less, provided that minimum 7% effective interest per annum is borne by the industrial unit.
• Overall Celling of the interest subsidy shall be up to the Quantum of VAT + CST collected during that year. If any MSME and LE units in ‘A’ & ‘B’ category area maintains permanent employees more than 1000 & in other category area maintains permanent employees more than 500 then for such units 50% more interest subsidy than their eligible interest Subsidy will be offered

Power Tariff Subsidy:

• Eligible new ESDM units will be eligible for power tariff subsidy to the tune of Rs. 1/- per unit for a period of 3 years in category A and B areas and 5 years in other parts of state

Exemption from Electricity Duty:

• Eligible New ESDM units will be exempted from paying Electricity Duty for 15 years

Waiver of Stamp Duty:

• Eligible ESDM units will be exempted from payment of stamp duty during the investment period, for acquiring land and for term loan purposes

For more details click here

Electric Vehicle Policy

Policy Features:

Incentives for EV Manufacturing, EV Component Manufacturing and EV Battery Manufacturing/Assembly Enterprises, Manufacturers of Electrical Battery Chargers

• The package of incentives to Pioneer Units, Mega Units & Ultra Mega Units manufacturing Electric vehicles shall be as per the 'Template'. The Package of Incentives can be modified with the recommendation of High-Power Committee formed for Mega/Ultra Mega Projects approved by the cabinet sub-committee.
• Under the Electric Vehicle Policy-2018, throughout the state, manufacturing MSMEs and Large units will be eligible for incentives as per Package Scheme of Incentives (PSI) in force. However, eligible units in A & B zone (as defined under PSI) will be provided incentive as per those available in C zone. Other zones will be eligible for incentives at one scale higher. (Example: Unit in D zone will be eligible for incentives of D+ zone).

Incentives & provisions for EV Buyer

• First 1,000 EV private/public passenger bus buyer whose vehicles are registered in the state will be eligible for user subsidy over policy period of 5 years.
• 10% subsidy for passenger buses registered in the State to private/public bus transport buyer, on base price (maximum limit of Rs. 20 lacs per vehicle) will be eligible to buyer. Subsidy will be transferred to buyer’s bank account within 3 months of purchase date.
• First 1,00,000 EV (2-wheeler-70,000, 3-wheeler-20,000 and 4-wheeler-10,000 all categories combined) registered in the State, private transporter and individual buyer to get end user subsidy over policy period of 5 years.
• 15% subsidy (maximum limit of Rs.5,000 for 2-wheeler, Rs. 12,000 for 3-wheeler, and Rs 1 lac for 4-wheeler) per vehicle to private transport and individual buyer for Electrical Vehicles registered in the State, on base price will be paid to buyer. Subsidy will be transferred to buyer’s bank account within 3 months of purchase date.

For more details click here

Logistic Park Policy 2018

Logistic is recognized as an international service with the potential to trade globally and earn foreign exchange for the country. The sector today faces challenges such as availability of suitable land, lack of skilled workforce, inadequate infrastructure in terms of roads, rail, ports and more. There are 2 types of Logistic Parks as follows:

• Integrated Logistics Park (ILP)
• Logistic Park

Benefits :

• Upto 200% additional FSI For Integrated Logistic Park & Logistic Park
• Higher Ground Coverage
• Relaxation on Zone Coverage
• Relaxation on Height Restrictions
• Power at Industrial Rate

For more details click here

Policy for flatted gala garments gems and jewellery

Policy Features:

• For Mega / Ultra Mega Projects, if the eligibility period is more than 10 years then the annual limit of fiscal incentives will be decided by total amount of incentives divided by the number of years of eligibility period. There will be a provision to carry forward the difference of actual annual sanction and annual limit for incentive disbursement for any year to the next year.
• If an eligible unit in MIDC area obtains Building Completion Certificate within the admissible development period and starts commercial production, then the unit will be entitled for following concessions for the balance development period from MIDC, in payment of various charges like water charges, service charges, fire fighting cess.
• The incentives offered by State Government under this policy will be over and above the incentives given by Central Government or any of its organisation or Local Authority.
• Stamp duty reimbursement will be admissible to the eligible Garment units as per the Industrial Policy of the State - 2013, during their investment period for purchase of land or gala or; land or gala taken on lease and documents for bank loan.
• For MSME & Large units, under the Basket of Incentives, the ceiling of annual amount of grant will be 1/10 th of the total sanctioned incentives. The difference of actual sanctioned incentives and the incentives admissible during that year will be carried forward.

For more details click here

Women Entrepreneur Policy

This policy has offered several fiscal benefits as follows:

• Industrial Promotional Subsidy
• Interest Subsidy
• Exemption from Electricity Duty
• Waiver for Stamp Duty
• Power Tariff

For more details click here

IT/ITES Policy 2015

In context of This policy, the Information of Technology consists of IT Software, IT Hardware & IT Enabled Services IT Park has proved to be an effective tool to develop IT sector by providing adequate quality infrastructure to cluster of IT / ITES units. Government of Maharashtra encourages Public as well as Private IT Parks throughout the state.

This policy will continue with following Incentives for IT/ITES Units:

• Stamp Duty Exemption
• Electricity Duty
• Electricity Tariff
• Power Tariff Subsidy
• Property Tax
• Entry Tax
• Works Contract Tax
• Setting-up IT/ITES units in any Zone

For more details click here

Special Economic Zone Policy (SEZ)

SEZ policy of Maharashtra provides attractive incentives as follows:

• Hundred per cent exemption from Stamp Duty and Registration Fees
• Permission for Captive Power Generation
• Micro, Small and Medium Enterprise Policy highlights
• Government is planning to initiate measures for availability of cheap and timely finance, technology up-gradation, upgradation of skill sets of those employed in MSME enterprises and marketing.
• Setting up of a special institution for the SMEs
• New small scale industries are eligible for capital subsidy
• Special capital incentives (grants) are offered for setting up Small-scale industries in backward units
• Interest subsidy is also offered to new textile, hosiery and knitwear SSI units

For more details click here

Retail Trade Policy 2016

Policy Features:

• Simplification of labour laws - Relaxation of rules under the Shops and Establishment Act with regard to working hours, work shifts and employment of part-time workers and maintenance of records
• Only perishable goods / items from Food and Grocery business to be included in Essential Services Maintenance Act (ESMA)
• Relaxation of stocking limits under Essential Commodities Act (ESSCOM)
• Human Resource Development and Skill Development in the retail enterprise
• Pragmatic implementation of Packaged Commodities Regulations
• Creation of REZ (Retail Entertainment Zones)
• Treating Distribution Centers at par with Industries
• Exemption from Agricultural Produce Market Committee regulations
• Formulation of clear operational guidelines for use of Mathadi workers
• Exclusion of Retail Trade from prior permission and charges / fees with regards to store sign boards displaying trade name of the company on the business place of the company
• Allowing Open Access for power
• Formation of an Empowered Committee at the state level to monitor the implementation of this policy and develop procedures and make amendments whenever and wherever required

For more details click here

Maritime Development Policy 2016

Policy Features:

Fiscal incentives for greenfield port projects:

• Upfront exemption from royalty on minor minerals
• Upfront exemption from non-agricultural assessment charges
• Exemption from electricity duty
• Upfront exemption from stamp duty
• Facilitation of expansion of port projects
• Applicability of industrial power tariff to PPP ports
• Value-added tax exemption for inputs required in construction phase of port projects
• Upfront exemption from port dues

Fiscal incentives for coastal shipping:

• Rebates for transportation of cargo via coastal shipping

Fiscal incentives for shipyard projects:

• Upfront exemption from stamp duty
• VAT exemption on sale of ships
• Applicability of industrial power tariff to shipyards
• Exemption from electricity duty

For more details click here

Coir Policy 2018

Policy Features:

Additional benefit under package scheme of incentives:

• The coir industries in A and B zone will be eligible for benefits available for the industries in C zone.
• The coir industries in C and D zone will be eligible for benefits available for Industries in D+ zone.
• The industries in D+ and districts with no industries will be eligible for the benefits available to industries in the naxal affected area

Special Capital Incentives:

• 30% to 35 % on the fixed capital investment limited to maximum Rs. 50 lakhs based on Taluka

Cluster Development:

• Assistance in the form of subsidy up to 90 % of the project cost

For more details click here

Aerospace Defence Manufacturing Policy 2018

Policy Features:

Reimbursement of Stamp Duty:

• Eligible Aerospace and Defence units will be reimbursement stamp duty during the investment period, for acquiring land and for term loan purposes

Others:

• The investment incurred in erection of test range and storage facilities required by the unit will be considered as a part of admissible project cost for the purposes of granting incentives. The expenditure on test range upto a ceiling of 20% of the total project cost or Rs. 100 Crores whichever is lower will be considered a part of admissible fixed capital investment for incentives.
• Since, technical know-how constitutes a vital and substantial part of defence products manufacturing, expenditure on this as a part of admissible fixed capital investment for incentives, will be allowed upto a ceiling of 20% of the total project cost or Rs. 100 Crores whichever is lower.
• If the Industrial unit is engaged in Research and Development (R & D) activity for their own purpose then the investment in Research and Development (R & D) by the unit will be considered a part of admissible project cost 10% of the total project cost or Rs. 50 Crores whichever is lower.
• Anchor units will be offered land at 75% of the prevailing land rates within the MIDC Industrial Areas falling in A & B category locations and at 50% of the prevailing land rates at other locations with a maximum limit of 100 acres.
• Anchor units will be allowed to utilize 20% of the land for facilitating set up of their vendor units

For more details click here

E-registration Facility for Developers

E-registration Module is developed and made available by the Department of Stamps and Registration. It provides facility of online registration of Agreement for Sale, Deed of Assignment, Agreement for Assignment, Leave and License Agreement to Developer.

Developer can perform following activities:

• Prepare the agreement
• Submit it for registration
• View the draft
• Get it registered
• Modify if required
• Get the status of registration through SMS
• Execute (sign) it
• All these activities can be performed from anywhere anytime, without going physically to Sub Registrar Office.