The Vidarbha Industries Association (VIA), the apex industrial body of the region, has submitted a comprehensive set of growth-oriented recommendations to the Government of Maharashtra under the upcoming New Industrial Policy and Package Scheme of Incentives (PSI), aimed at unlocking Vidarbha’s long-pending industrial potential.
VIA President Mr Prashant Mohota led the delegation in an interaction with Dr. P. Anbalagan, IAS, Principal Secretary (Industries), and presented critical structural reforms required to attract fresh investments, strengthen MSMEs, generate employment, and ensure sustainable industrial growth.
Key Growth-Driving Demands
One of VIA’s most significant proposals is the redefinition of “Mega Project” status for Vidarbha, reducing the qualifying investment threshold from ₹350 crore to ₹150 crore and employment criteria from 500 to 250 workers. VIA also demanded Mega-level incentives for MSMEs employing over 100 people, recognizing their superior employment generation capacity.
To address limitations of GST-linked incentives, VIA has proposed a choice-based incentive model, allowing industries to opt between 100% SGST refund plus 2% on export/interstate sales or 50% capital subsidy, ensuring fairness for exporters, agro-based industries, and low-GST sectors.
₹7,500 Crore Subsidy Backlog Raises Alarm
VIA flagged a massive subsidy disbursement backlog exceeding ₹7,500 crore, with MSME claims pending since April 2025 and large & mega project subsidies delayed since January 2023. VIA has demanded a mandatory six-month disbursement timeline to prevent financial stress and project closures.
Green, Export & Women-Led Growth Focus
VIA has strongly advocated:
· Capital subsidy for green infrastructure such as ETPs, Zero Liquid Discharge, captive solar power, EV transport, and rainwater harvesting.
· Logistics subsidies for exporters without restrictive export-turnover conditions.
· A dedicated Women-Led Industrial Park to empower women entrepreneurs with land ownership, finance access, and skill development.
Push for Circular Economy & Investment Unlocking
VIA has also sought a separate Circular Economy Policy with 40% capital subsidy and 5% interest subsidy, to promote recycling, waste-to-wealth and resource-efficient industries. It further demanded that full resale value of MIDC land be treated as eligible investment, unlocking stalled industrial land across the region.
VIA’s Message
“Vidarbha has the talent, resources and entrepreneurial strength. What it needs now is policy justice, timely incentives, and regional sensitivity,” said VIA President Mr. Prashant Mohota. “These reforms can convert Vidarbha into a high-employment, green manufacturing hub of Maharashtra.”
Details
The Vidarbha Industries Association (VIA), the apex industrial body of the region with over six decades of service, has submitted a comprehensive reform memorandum to the Government of Maharashtra under the upcoming New Industrial Policy & Package Scheme of Incentives (PSI), aimed at unlocking the true industrial potential of the Vidarbha region.
The memorandum was formally presented to Dr. P. Anbalagan, IAS, Principal Secretary (Industries) during an interaction with a VIA delegation. VIA has highlighted critical policy bottlenecks and powerful growth-enablers that, if implemented, can transform Vidarbha into a competitive manufacturing and investment destination.
Most Impactful Growth-Oriented Demands of VIA
1. Mega Status for Vidarbha at Lower Investment Levels
VIA has strongly demanded reduction of Mega Project qualification for Vidarbha from:
- ₹350 crore → ₹150 crore investment
- 500 → 250 jobs
Additionally, MSME units providing employment to over 100 people should also receive Mega-level incentives, recognizing their superior employment-to-investment ratio. This reform alone can trigger large employment-led industrialization in the region.
2. Choice-Based Incentive Model Instead of Only SGST Refund
Current GST-linked incentives disadvantage:
- Exporters
- Agro-industries
- Interstate-sale-based industries
VIA has proposed a powerful flexible incentive option:
- 100% SGST Refund + 2% on Export & Interstate Sales, OR
- 50% Capital Subsidy
This flexibility will directly benefit cotton processing, agro-industries, engineering exports, and textile MSMEs of Vidarbha.
3. ₹7,500 Crore Pending Subsidy – Immediate Cash Flow Crisis
VIA highlighted that:
- MSME subsidy disbursements are pending since April 2025
- Large & Mega project subsidies pending since January 2023
- Outstanding amount exceeds ₹7,500 crore
VIA has demanded a mandatory 6-month disbursement timeline, as delayed subsidies are choking working capital and threatening unit survival.
4. Massive Boost for Green & Renewable Industries
VIA has sought:
- Capital subsidy for ETPs, waste management, ZLD, EVs, solar power, rainwater harvesting
- Recognition of captive power investment as eligible under PSI
- De-linking interest subsidy from power bills
This will align industrial growth with India’s Net-Zero and ESG commitments.
5. Special Relief for Exporters & Capital-Intensive Industries
Export-oriented, low-GST and high-investment units currently lose out due to:
- Low capital turnover ratio
- Low GST output
VIA has demanded:
- Higher capital subsidy
- Turnover-based incentives
- Longer benefit period
This can directly revive textile processing, agro-exports, engineering goods and food processing units.
6. End to Incentive “Clubbing” with Other Sectoral Policies
VIA has strongly opposed the current system where:
- Textile, food processing, tourism, IT incentives are clubbed with PSI and capped
Sector-specific incentives must be over and above PSI, otherwise the entire purpose of sectoral promotion is defeated.
7. Full MIDC Resale Value to Be Treated as Eligible Investment
Currently, only differential premium is considered for MIDC resale plots. VIA has sought:
- Full resale consideration to be treated as eligible investment, at par with private land
This will:
- Unlock idle MIDC land
- Prevent land speculation
- Speed up industrial project execution
8. Export Logistics Cost Subsidy
VIA has demanded:
- Logistics subsidy for all exporters
- Removal of the restrictive 50% export turnover condition
This will make Vidarbha exporters more competitive in global markets.
9. Women-Led Industrial Park for Inclusive Growth
VIA has proposed a dedicated Women Entrepreneurs Industrial Park to enable:
- Easier access to land
- Better access to loans and incentives
- Skill development & economic independence
This will create a powerful women-led manufacturing ecosystem in Vidarbha.
10. Circular Economy Policy with 40% Capital Subsidy
To promote sustainability and new-age industries, VIA has demanded:
- A separate Circular Economy Policy
- 40% capital subsidy
- 5% interest subsidy even for existing units
This will position Vidarbha as a national hub for recycling, waste-to-wealth and green manufacturing.
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