Incentive Offerings in Maharashtra

Policy Features: Stamp Duty Exemption

• 100% Stamp Duty exemption to new IT/ITeS units and expansions of the existing units in C, D, D+, No Industry district areas and Naxalism affected areas
• 100% Stamp Duty exemption to new IT/ITeS units and expansions of the existing units in public IT parks (including IT hardware and Telecom hardware manufacturing units), in A and B areas
• 100% Stamp Duty exemption to new IT/ITeS units and expansions of the existing units in IT parks in SEZs, IT SEZs (including IT hardware and Telecom hardware manufacturing units), and STPI approved registered units in IT parks of A and B areas
• 75 % Stamp Duty exemption to assignment leases of IT/ ITeS units under section 60 and leave and licenses of IT/ ITeS under section 36 A of the Bombay Stamp Act 1958
• 75% Stamp Duty exemption on merger, de-merger and reconstruction of registered IT/ ITeS units throughout the State

Electricity Duty

• New IT / ITeS units registered with the Directorate of Industries will be exempt from payment of Electricity Duty from the date of commencement of production/ activity for a period of 10 years for units in IT parks (including IT hardware and Telecom hardware manufacturing units), in A and B areas and for 15 years in other areas of the State

Power Tariff Subsidy:

• New IT/ ITeS units located in areas other than A and B areas classified as per the Package Scheme of Incentives and established in registered IT Park will be eligible to get power tariff subsidy for 3 years @ Rs. 1/- per unit consumed from the date of registration of the IT units with the Directorate of Industries after commencement of IT/ITeS activity or equal to the investment made in IT Hardware on the date of registration of the unit with the Directorate of Industries, whichever is lower

Entry Tax:

• Registered IT / ITES units shall be exempt from octroi / Local Body Tax (LBT) / entry tax / escort tax or other cess or any tax levied in lieu of these for the import of capital goods and raw material for self-consumption by the unit

Policy Features: 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

Incentives for strengthening MSMEs

• 25% one-time subsidy on capital equipment for technology up-gradation, limited to Rs. 25.00 lakh
• 25% one-time subsidy on capital equipment for cleaner production measures, limited to Rs. 5.0 lakh
• 75% subsidy on the expenses incurred on patent registration limited to Rs. 10.00 lakh . for National patents and Rs. 25.00 lakh for the International patents
• Assistance for a maximum of three industry standard quality certifications, at a rate of 50% of cost of quality certification within the overall ceiling of Rs. 6.00 lakh in 5 years

Support to R&D institutions/Testing Facilities/Incubation and Innovation centres

• The assistance will be given up to 50% of the project cost excluding land and building subject to maximum 25.00 crores
• One-time assistance for contract/sponsored research work from any ESDM industrial unit/ ESDM industries association to recognized R&D institution/ Technical college approved by AICTE, will be considered at 50% of the project cost, subject to maximum of Rs.50.00 lakh

Market Development Support

• Assistance to MSME units for participation in International trade fairs outside India at the rate of 50% of total rent, literature and display material cost subject to a ceiling of Rs.3.00 lakh, once in a year
• Assistance to Industry Associations at 50% of total rent subject to a ceiling of Rs.10.00 lakh for participation in International trade fair as Maharashtra Pavilion outside India for participation by minimum 5 units
• Viability gap support to Industry Associations for organizing National seminars/exhibitions in Maharashtra subject to a ceiling of Rs.10.00 lakh and for organizing International seminar/exhibition in Maharashtra subject to a ceiling of Rs.25.00 lakh
• Assistance for setting up of Convention Centre/Trade Centre by Industry Associations at the rate of 50% of project cost up to Rs.10.00 crores excluding land cost

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.

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

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.

Policy Features: Upto 200% Additional FSI for Integrated Logistics Park & Logistics Park

• All over the state for Integrated Logistic Parks & Logistic Parks 1 or permissible basic FSI whichever is more will be applicable. Upto 200% of additional FSI will be admissible over the base FSI for development of Integrated Logistic Park & Logistics Park with or without premium.

Higher Ground Coverage

• Integrated logistic parks shall be allowed higher ground coverage upto 75% (subject to setback and fire safety regulations and existing FSI norms being followed).

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.

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

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

Fiscal incentives for development of industrial clusters

Policy Features: Financial Incentives for MSMEs

• Industrial Promotion Subsidy (IPS)
  • The eligible New / Expansion Micro, Small and Medium Manufacturing Enterprises, which are set up in different parts of the State, will be eligible for Industrial Promotion Subsidy (IPS), as per there taluka Categorization.
  • Eligible Micro, Small & Medium enterprises shall be offered Industrial Promotion Subsidy (IPS) on 100 % Gross State Goods & Services Tax (SGST) payable by the unit on the first sale of eligible products billed and delivered within Maharashtra. The modalities for disbursement of incentives shall be as per the guidelines issued vide GR dated 12.06.2018, 20.12.2018 and 08.03.2019 and the guide lines issued from time to time.
• Interest Subsidy
  • All eligible new Micro, Small and Medium Manufacturing Enterprises will be eligible for interest subsidy in respect of interest actually paid to the Banks and Public Financial Institutions (excluding unsecured loans, private loans / borrowings, loans from NBFCs etc.) for claim period, on the amount of term loans taken for acquisition of new Fixed Assets required for the project accepted by the implementing agency.
  • The amount of interest subsidy will be calculated @ effective rate of interest, after deducting the interest subsidy receivable from any agency of the State Government or under any Govt. of India Scheme and the penal / compound interest or 5 % per annum, whichever is less. 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.
• Exemption from Electricity Duty
  • All Eligible New Units in Group C, D, and D+ areas, No-Industry District(s), Aspirational Districts and Naxalism affected Area will be exempted from payment of Electricity Duty during applicable eligibility period. In Group A and B areas, only eligible 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.
• Waiver of Stamp Duty
  • New Units as well as Units undertaking Expansion/ Diversification will be exempted from payment of Stamp duty during the Investment period in Group C, D, D+ Talukas, No Industry Districts, Aspirational Districts and Naxalism affected areas for acquiring land (including assignment of lease rights and sale certificate) and for term loan purposes.
• Power tariff Subsidy
  • Eligible New Micro, Small and Medium Enterprises (MSME) and Small Industries will be eligible for power tariff subsidy. 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 and Sindhudurg in Kokan Region, No Industry Districts, Naxalism Affected Areas and Aspirational Districts 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.
• Additional Incentives for Strengthening MSMEs: Expansion projects of MSMEs and Small Industries will be eligible for following incentives:
  • (i) 5% subsidy only on additional capital equipment acquired for Technology Up-gradation, subject to a maximum of Rs. 25 lakh
  • (ii) 75 % subsidy on the expenses incurred on quality certification limited to Rs. 1 Lakh
  • (iii) 25% subsidy on additional capital equipment acquired for cleaner production measures, limited to Rs. 5 Lakhs
  • (iv) 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
  • (v) 75% of cost of water audit limited to Rs. 1.00 Iakh
  • (vi) 75% of cost of energy audit limited to Rs. 2.00 lakh
  • (vii) 50% of the cost of Capital Equipment under the measures to conserve/recycle water, limited to Rs. 5 lakh

Incentives for Large Scale Units/ Projects and Special LSIs

• Expansion/ Diversification Units
  • Existing/ New Large Scale Industries (LSIs) and Special LSIs (including Manufacturing IT/BT) Units, qualifying as Expansion/ Diversification Units, will also be eligible to get the incentives for Expansion/ Diversification, equivalent to 80% of the incentives admissible for New Units.
  • The eligibility period for availing of the incentives will however be reduced by one year than that admissible to a New Unit in case of Expansion/ Diversification Units.
• Industrial Promotion Subsidy
  • The eligible New / Expansion / Diversification Large Scale Industries, which are set up at single location, will be eligible for Industrial Promotion Subsidy (IPS)
  • Eligible LSI units shall be offered Investment Promotion Subsidy (IPS) on 50 % of Gross SGST payable by the unit on the first sale of eligible product(s) billed and delivered within Maharashtra
  • Eligible Special LSI units shall be offered Industrial Promotion Subsidy (IPS) @ 40 % of NET SGST paid by the unit on the first sale of eligible product(s) billed and delivered within Maharashtra. However, units falling under this category located in "A" & "B" Zones will not be eligible for Incentives.
• Exemption from Electricity Duty
  • All Eligible New Units in Group C, D, and D+ areas and No-Industry District(s), Aspirational Districts and Naxalism affected Area will be exempted from payment of Electricity Duty during applicable eligibility period,( Incentive Availment Period). In Group A and B areas, only eligible 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.
• Waiver of Stamp Duty
  • New Units as well as Units undertaking Expansion / Diversification will be exempted from payment of Stamp duty during the Investment period in Group C, D, D+ Talukas, No Industry Districts, Aspirational Districts and Naxalism affected areas for acquiring land (including assignment of lease rights and sale certificate) and for term loan purposes.