1 Policy Period Policy shall remain in operation from the 1st April 2019 up to 31st March, 2024. 2 MSME coverage:- | Sr. no. | Type of enterprise | Investment amount | | (i) | Micro, Small and Medium Manufacturing Enterprises (MSME) | Up to Rs. 10 crores investment in Plant & Machinery | | (ii) | Small industries | Up to Rs. 50 crore investment in Fixed Capital Investment (FCI) | 3 FINANCIAL INCENTIVES FOR MSMEs 1. 2. 3. 4. 5. 6. 3.1 A basket of incentives, their aggregate amount not exceeding a specified ceiling will be offered to eligible MSME units as follow: | Taluka / Area Classification | Maximum Admissible Fixed Capital Investment (INR crore) | Ceiling as % of FCI | Eligibility Period (Years) | | A | For the purpose of this policy, MSME shall include units as per the MSMED Act, 2006, as well as the units with FCI of upto INR 50 crore | - | - | | B | 30% | 7 | | C | 40% | 7 | | D | 50% | 10 | | D+ | 60% | 10 | | Vidarbha, Marathwada, Ratnagiri, Sindhudurg & Dhule | 80% | 10 | | No Industry Districts, Naxalism Affected Areas* and Aspirational Districts** | 100% | 10 | ** Aspirational Districts are Osmanabad, Gadchiroli, Washim and Nandurbar 3.2 Additional benefits: (a) Power Tariff subsidy The power tariff subsidy, for eligible new units located (other than A areas) in Vidarbha, Marathwada, North Maharashtra, and Districts of Raigad, Ratnagiri and Sindhudurg in Konkan will be to the extent of INR 1/- per unit consumed and in other areas (except A areas), to the tune of INR 0.5/- per unit consumed for 3 years from the date of commencement of commercial production. (b) Stamp duty exemption In addition to incentives listed above, eligible MSMEs will be entitled to 100 per cent stamp duty exemption within investment period for acquiring land (including assignment of lease rights and sale certificate) and for term loan purposes. However, in A and B areas Stamp Duty exemption will be offered only to IT and BT manufacturing units in IT and BT Parks. Eligible Units under PSI 2013 Scheme will also be eligible for stamp duty exemption for their Investment Period. (c) Electricity duty exemption Eligible New MSMEs in C, D,D+, No industries Districts and Naxalism Affected Area will be entitled to exemption from payment of electricity duty for tenure equal to the eligibility period. However, in A and B areas Electricity Duty exemption will be offered to 100 per cent Export Oriented MSMEs and IT/BT units for seven years. (d) Additional benefit for Agro & Food Processing Eligible MSME units in Agro & Food Processing (secondary and tertiary processing units and Farmer Producer Companies for manufacturing/processing activity only), Green energy/ bio-fuel and Industry shall be given additional support. (e) Marketing Assistance scheme Marketing Assistance scheme shall be formed for MSMEs to support marketing activities. To improve the competitiveness of MSMEs in marketing, both at the national and international level, fiscal assistance shall be provided for SC/ST/women entrepreneurs and for participation in national and international fairs. (f) Other standalone incentives For strengthening of MSMEs, standalone incentives (not linked with PSI) shall be admissible to the MSMEs so as to promote quality competitiveness, Zero Defect Zero Effect (ZED scheme), Research & Development, technology up-gradation, water & energy conservation, cleaner production measures and credit rating. 4 Reimbursement mechanism of Fiscal subsidy (a) Interest In areas other than A area, Interest subsidy @ 5 per cent p.a., maximum upto the value of electricity consumed and bills paid for that year, will be admissible. (b) SGST Eligible units shall be offered Investment Promotion Subsidy (IPS) on Gross SGST paid by the unit on the first sale of eligible products billed and delivered to the same entity within Maharashtra. 5 Illustration explaining SGST and interest refund mechanism If any company wants to make investment in Wada which is D+ zone in such case, in following manner refund can be claimed. Under the scheme, for unit in D+ zone, the State Government will refund 60% of total capital investment in the entity, over a period of 10 years. The refund will be given by way of SGST and Interest subsidy. Thus, if Rs. 10 crore is capital investment in a D+ zone, the financial incentives available are as follow: | Capital investment | 10 crore | | Refund eligible | 6 crore in 10 years | | eligible refund per year | 60 lakhs | Hence, unit will be eligible to get refund of Rs. 60 lakhs in each year. In above case, if unit has made sale of 6.4 crore. In such case, SGST paid @9% will be Rs. 57.60 lakhs on sale. In such case, total SGST eligible for refund will be Rs. 57.60 lakhs Further, unit has taken bank loan and on such bank load paid interest @12% of Rs. 24 lakhs. So from such interest only 5% interest is allowed to take refund. Hence, up to Rs. 10 lakhs can be taken as refund. In such scenario following amount can be claimed as interest subsidy: | 2) Interest subsidy | | Interest paid | 10 lakhs | | Electricity bill | 7 lakhs | | Claimable refund | 7 lakhs |
Based on above working, total maximum refund can be claimed as follow:
| SGST refund | Rs. 57.60 lakhs | | Interest refund | Rs. 7 lakhs | | Maximum Total refund eligible | Rs. 60 lakhs | Hence, total refund can be claimed of Rs. 60 lakhs. In addition to such refund, unit can also claim subsidy of electricity duty, stamp duty waiver etc. |