Maharashtra’s new industrial policy announced on Thursday has been set up focusing on micro, small and medium enterprises (MSMEs) of the state. The policy provides significant incentives for backward regions like Vidarbha ranging from power tariff subsidy
Maharashtra’s new industrial policy announced on Thursday has been set up focusing on micro, small and medium enterprises (MSMEs) of the state. The policy provides significant incentives for backward regions like Vidarbha ranging from power tariff subsidy to tax refunds targeting MSMEs. It also calls for encouraging industry clusters in the state and aims at an investment of Rs 5 lakh crore with employment generation for 20 lakh people.
The new industrial policy may now be able to help industrial units in Vidarbha in easing their power tariff burden for next three years as Re 1 per unit will be borne by the state government as subsidy for the MSMEs in this region. North Maharashtra and Marathwada regions’ units have also been given this benefit. New MSME units will be getting a rebate from electricity duty.
Also, MSMEs in talukas of B and C category will get a subsidy of 50 paise per unit for coming three years as local industrialists had been asking for lowering the power tariff since higher tariff was hampering their competitiveness.
MSMEs of C and D category talukas including those in Vidarbha region have been given a grant of equal value to Value Added Tax (VAT) paid on finished goods, along with 20 per cent to 100 per cent of input tax credit and central sales tax.
For MSMEs in Naxal-hit areas, a package scheme of financial benefits will be extended up to 90 per cent of the permissible capital investment.
Among other incentives offered are exemptions from stamp duty on the purchase of land, partial reimbursement of equipment purchased for power and water conservation, rebate on expenditure on energy and water audit.
The Confederation of Indian Industry (CII) has welcomed the move by the state government as the industry was eagerly looking forward to the new policy.