Maharashtra’s new industrial policy targets Rs 10 lakh crore investment, 40 lakh jobs

industrial policy

With an aim to develop the industrial sector in Maharashtra, the state government announced a new five-year industrial policy (2019-24) commencing April 1, 2019.

Under the new industrial policy, MSMEs eligible new units in north Maharashtra, Vidarbha, Marathwada, Raigad, Ratnagiri, and Sindhudurg in Konkan will receive power tariff subsidy of Rs 1 per unit applied.

Industry Feedbacks to the New Policy:

The industry warmly received the government’s move to render power tariff subsidy to industrial units in the state.

President of Vidarbha Industries Association, Mr. Atul Pandey, said that“We welcome GoM Industrial Policy majorly for defining MSME up to FCI 50 crores, and also for offering additional Incentives to new investments in Washim/Gadichiroli Districts of Vidarbha. Also for the initiatives for a revival of stressed assets. However, we are disappointed that investments in expansion continue to be deprived of interest subsidy. Also, the interest subsidy being limited to, power bills.”

According to Mr. Kishor B. Rathi, President of Marathwada Association of Small Scale Industries and Agriculture (MASSIA) this is the biggest relief for industrial units in the state.

Mr. Rathi stated “We express thanks to the government for considering our opinion for infrastructure. As success and development are completely dependent on what infrastructure is provided. And it happens the first time that more and more emphasis was given to providing State of Art infrastructure, for which roles, responsibility, powers of MIDC had increased substantially.”

Besides this, Mr. Kishor Rathi also added that “ We appreciate and welcome the initiative of incentive limit which will be increased for MSME up to Rs.50 Crores in Fixed Capital Investment.”

The key highlights of the New Industrial Policy are as follows:

  • Promotions of MSMEs under the new Chief Minister Employment Programme
  • Incentives for great and mega projects
  • An Infrastructure Capital of Rs. 1,000 crores
  • Formulation of Commerce and Trade Councils
  • Further incentives for Agro and Food Processing Industries
  • Industrial cluster-based strategy to support sustainable, cost-effective, and a comprehensive approach to secure aggressive and enhanced MSME units.

Aim & Objective:

The industrial policy is intended to draw investments of over Rs 10 lakh crore and generating about 40 lakh jobs by 2023-24. The advantages will be announced to small industries if the policy proclaimed will be executed properly with the same aim as it was revealed

Points of attraction:

  • MIDC shall promote setting up of Flatted Galas for MSME under SPV Model.
  • For industrial areas which are mainly outside MIDC, especially Gut Numbers, there are always issues like last mile connectivity, dedicated power supply, water supply, ETC, etc. To overcome the issues provided an enhanced corpus of Rs.1000 Crore under Critical Industrial Infrastructure Fund.

 Promotion of Thrust Sectors:

Focussed policy for emerging Thrust Sectors and they shall be accorded priority in land allotment and incentives.

Some of the thrust sectors highlighted by MASSIA are as below

  • Agro & Food Processing
  • Green Energy

Fiscal Incentives to MSMEs:

After identifying the strength of MSME of Marathwada, Vidarbha, Ratnagiri, Sindhudurg, and Dhule, but only due to their backward infrastructure and need of financial assistance, the State Government had given them separate classification and increase incentives by 10% in order of equality in every aspect. This will boost the region and reduce the gap of regional disparity.

Thus, the overall approach of the industrial policy framework is to develop MSME and make Maharashtra – A Global Manufacturing Investment Centre.

However, the following may be or will be hurdles for the growth of the State.

Fiscal Incentives to MSMEs:

  • As per old policy PSI 2013, the Stamp Duty exemption continues only for assignment of lease rights and sale certificate.
  • Demand from industry is to consider the Deed of Assignment also which is not considered in the Industrial Policy.
  • Also eligible MSME is offered Investment Promotion Subsidy (IPS) only on gross SGST. Hence, there will be no incentives for industries who export out of India or sells out of the State. Though they will do investment as well as generate employment.

 

 

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