VIA Taxation and Corporate Law Forum organized a Presentation cum Discussion on “New Package Scheme of Incentives (PSI) 2019” today at VIA.
CA Nitin Agrawal has given detailed presentation on New Package Scheme of Incentives- 2019. The key highlights of the presentation were Period of operation of scheme is from 1st April 2019 up to 31st March 2024 or till the new package scheme of incentives comes into force. The incentives provided in the scheme have been categorized for MSME sector & small industries, large scale units (LSI), special large scale units, mega projects and ultra mega projects.
The maximum benefits in the scheme are available to MSMEs i.e 80% of their fixed capital investment which they can avail by way of refund of 100% Gross SGST payable on 1st sale of eligible products billed and delivered within Maharashtra, 5% pa interest subsidy on term loan, exemption of electricity duty, waiver of stamp duty for acquiring land (including assignment of lease rights & sale certificate) & for term loan purposes & Re.1/- power tariff subsidy for 3 years along with various other incentives.
He informed that a major change in this policy is that the units having gross fixed capital investment up to Rs.50 Cr. termed as small industries shall be eligible for incentives of MSMEs. Ashok Dharmadhikari, Joint Director of Industries, Nagpur, mentioned that maximum units in Vidarbha Region shall be covered under it and shall be benefited maximum.
Incentives for LSI and Special LSI: For Vidarbha, Marathwada, Ratnagiri, Sindhudurg and Dhule, the threshold limit of fixed capital investment to qualify as ‘Large Scale Unit’ has been fixed at Rs 100 crore (Eligible FCI) or direct employment to 300 people out of which 80% of such employees should be local persons. In the earlier scheme i.e. PSI 2013, the units having gross investment in plant & machinery above Rs 10 crore were classified as large scale unit. The LSI units are eligible for basket of incentives which is 80% of FCI as a maximum ceiling having eligibility period of 9 years. They will be eligible for IPS of 50% of Gross SGST payable on 1st sale of eligible products billed & delivered within Maharashtra along with Exemption of electricity duty & waiver of stamp duty.
New concept under the head ‘Special LSI’ has been introduced in PSI 2019. The category covers units having FCI of more than Rs 50 crore & upto minimum investment stipulated for qualifying as LSI Unit. The IPS eligible to such units shall be 40% of NET SGST paid on 1st sale of eligible products billed & delivered within Maharashtra along with Exemption of electricity duty & waiver of stamp duty For LSI’s the units applying for incentives and going into commercial production in the first year of policy period will be given full basket of eligible incentives. If the unit applies or goes into commercial production in subsequent years of the policy period, the ceiling of basket of incentives will be reduced by 5% for each year of delay in going into commercial production.
Mega Projects: For Vidarbha, Marathwada, Ratnagiri, Sindhudurg and Dhule, the threshold to qualify as ‘Mega Project’ has been fixed at Rs 350 crore (eligible FCI) or direct employment to 500 people. Similar to condition for LSI, 80% of such employees should be local persons. The benefits to such units shall be decided by High Power Committee under the chairman ship of Chief Secretary, Govt. of Maharashtra on case to case basis.
Other Stipulations (all the category of units): The amount of incentives to be disbursed to the MSMEs, LSI, Special LSI and Mega / Ultra Mega Units every year will be limited to the total quantum of incentives divided by the number of years as per the applicable Eligibility period.
The aggregate fiscal incentives provided by various departments of the state govt. shall not exceed the basket of incentives (as% of FCI).
Ashok Dharmadhikari also explained in detail the comparison of PSI 2013 & PSI 2019 and resolved the queries raised during the session. He also mentioned that Maharashtra Government has accepted many of our suggestions raised during Inter the Regional Committee (IRC) and implemented in the scheme. Gajendra Bharti, General Manager – DIC, Nagpur also presented his views of the scheme and highlighted some crucial points.
Earlier, CA Sachin Jajodia, Convener – VIA Taxation & Corporate Law Forum conducted the program also briefed about new PSI 2019. Suresh Rathi, President – VIA in his welcome address briefed about the new “Package Scheme of Incentives -2019” (PSI-2019). He also welcomed Ashok Dharmadhikari with floral bouquet and Rakesh Surana welcomed GM – DIC, G O Bharati, Shilpa Agrawal welcomed CA Nitin Agrawal with floral bouquets. CA Naresh Jakhotia, Treasurer – VIA proposed a formal vote of thanks. Prominently present were CA Girish Deodhar, Bhagwat Thakre, Vaibhav Agrawal and Hardik Doshi.