State Incentive
State Incentive
The Government of Maharashtra, in its continuous effort to foster industrial development and promote balanced regional growth, offers a variety of fiscal and non-fiscal incentives to encourage new investments and expansion of existing industrial units. These incentives are provided under the widely recognized Package Scheme of Incentives (PSI), which is periodically revised to suit the evolving economic landscape and attract investments across different sectors.
Purpose of the Scheme
The primary objective of the PSI is to promote the dispersal of industries to lesser-developed areas, generate employment opportunities, and boost the state’s overall economic output. The scheme is applicable to micro, small, medium, and large-scale industries, including manufacturing and select service sectors. By offering structured incentives, the state aims to reduce the regional imbalance in industrial growth and attract investments to backward and underdeveloped regions.
Key Benefits Under the Scheme
Incentives under the PSI typically include:
- Capital Subsidy: Financial support for fixed capital investments made in plant, machinery, and building infrastructure.
- Interest Subsidy: Reimbursement of a portion of the interest paid on term loans from eligible financial institutions.
- Electricity Duty Exemption: Exemption from paying electricity duty for a specified number of years.
- Stamp Duty Exemption: Waiver of stamp duty charges for land acquisition or lease.
- SGST Refund: Refund of a portion of State Goods and Services Tax (SGST) paid on sales within the state, subject to eligibility criteria.
The quantum of these incentives varies based on several factors such as the location of the unit (classified into different zones), type of industry, investment size, and employment generation capacity.
Eligibility and Procedure
To avail the benefits under the PSI, an industrial unit—whether new or undertaking expansion—must first obtain an Eligibility Certificate from the Directorate of Industries (DoI), Maharashtra. This certificate is granted post-commencement of commercial production and is a prerequisite for claiming incentives.
Once eligible, the unit is required to submit annual claims along with relevant documents such as audited financial statements, production data, and tax returns. The incentive amount is typically disbursed annually, based on actual performance and compliance with scheme conditions.
Strategic Assistance by Professionals
Navigating the complexities of the PSI scheme and ensuring full compliance requires a strategic approach. At Prathmesh Shete & Associates, we provide end-to-end support for:
- Assessing eligibility and zone classification
- Assistance in documentation and application for Eligibility Certificate
- Preparing and submitting annual claims
- Advisory on optimal structuring to maximize incentives
- Liaison with government departments for timely approvals and disbursements
Our in-depth knowledge of state policies, coupled with hands-on experience across sectors, allows us to deliver seamless assistance throughout the incentive lifecycle.
Conclusion
State incentives, particularly under the PSI, offer a significant boost to industrial units looking to invest or expand in Maharashtra. With the right guidance and professional support, businesses can strategically benefit from these schemes, enhance their financial viability, and contribute to the state’s industrial growth story.