The new industrial policy of state of Maharastra 2013-2018 provides a customised package of incentives to help growth of mega projects classified on the basis of fixed cost investment and employee strength.
The units have been based on proportion of invetsment vis-a vis the fixed cost investment specified for a particular category. For example, the top industrial class -A will have investment of RS 750 crore and employee strength of Rs 1,500.
Thus, the investment across the class of industries ranges from Rs 100 crore to Rs 750 crore and employee strength from 250-1500 in different classes of areas. To the mega projects, which employ twice the threshold level of employment for a particular class of unit, additional incentives will be provided.
The package of incentives across size of industries include industrial promotion subsidy calculated at the rate of 60-100% value added tax minus input tax credit claimed or zero which ever is more plus central sales tax payable on eligible finished goods. About 75% reimbursement of cost of water and energy audit will be allowed upto a ceiling of Rs 1 lakh for water audit and Rs 2 lakh for energy audit.
Cost of capital requirement to conserve water and energy will be reimbursed up to 50% upto limit of Rs1 lakh each. Eligible large units will be entitled 100% stamp duty exemption within investment period for acquiring land and term loan purposes.
There is defined impetus on the small scale industries in the new industrial policy so as to help the domestic industries to counter cheap imports. Such units will get promotion subsidy equal to total value added tax and not a proportion of VAT paid as was the case for large units. Thus, the promotion subsidy will be VAT on local sales minus input tax credit or zero which is more plus central sale tax payable plus 20% to 100% of input tax credit on eligible finished goods.
The power tariff subsidy for new small scale industries in non industrial zones of Vidarbha, Marathwada, , north Maharastra and Konkan districts will be Rs 1 per unit for a period of three years from the stage of commencement of production. Food and agro processing sector will get additional 10% of incentive including the overall incentive structure for all industries.
Such incentives will also apply to new units in certain classes of areas where there will be complete exemption from payment of electricity duty for a tenure of seven years. These areas will be classes C, D, no industrial areas and Naxal district areas. MSMEs will also be entitled for 100% stamp duty exemption for a period of ten years . In underdeveloped industrial areas and Naxal district areas, MSME units will be entitled for full exemption of payment of electricity duty for a tenure of ten years.
The MSMEs will be awarded fiscal incentives to get credit rating which will help them to get easy bank finance, the policy says.
