Maharashtra New Industrial Policy, 2019

1. Introduction
 With an intent to make Maharashtra, USD 1 trillion economy in the country, the
Government of Maharashtra has released ‘Maharashtra New Industrial Policy,
2019’, which shall be valid for a period of five years from April 1, 2019.
 Incentives in the form of power subsidies, interest subsidies, stamp duty exemption,
electricity duty exemption and subsidy on state GST paid
2. Target
 To attain manufacturing sector growth rate of 12% to 13% to reach Gross State
Domestic Product (GSDP) share of 25% by 2023-24
 Attract investments worth INR 10 lakh crore by 2023-24
 Create employment opportunities for 40 lakh people by 2023-24
3. Objectives and Strategies
 Retainment of leadership position
 Creation of land bank for industries through Maharashtra Industrial Development
Corporation (MIDC)
 Sustainment of high levels of employment generation, primarily through Micro,
Small & Medium Enterprises (MSME)
 Promotion of regionally balanced, environmentally sustainable and inclusive
industrial growth
4. Policy Period
 Valid for a period of five years from 1st April, 2019
5. Focus on Pharmaceutical Sector
 Home to several globally recognized manufacturers of affordable and quality generic
medicines
 Highest number of United States Food and Drug Administration (USFDA) approved
manufacturing plants in India and the highest number of Pharma units
 Contribution of about 20 percent to India’s total pharmaceutical output

5.1 Special Incentives

 Under the Maharashtra State Innovative Start-Up Policy, 2018,
exemption from stamp duty and registration fee for the first three years
of renting or leasing land to the new pharmaceutical units
 Pharmaceutical and drug companies involved in research and
development can avail reimbursement of up to INR 2 lakh (US $2,873)
for an Indian patent and INR 10 lakh (US $14,365) for an international
one.
 Separate tax and fiscal benefits available for large, ultra and mega
projects under the New Industrial Policy

5.1.1 Large scale Industries (LSI)

 Defined as industrial units satisfying the minimum
threshold limits of FCI or direct employment prescribed:
Particulars Zone A & B Zone C Zone Zone Specified No industry
D D+ areas area
Minimum FCI (INR) 750 cr. 500 cr. 250 cr. 150 cr. 100 cr. 100 cr.
Minimum direct 1000 nos. 750 500 400 300 nos. 250 nos.
employment nos. nos. nos.
Stamp duty -100% exemption within investment period for acquisition of land including
exemption assignment of ease rights, sale certificate and for term loan purposes.
-exemption only to IT and BT manufacturing units in IT and BT park in case of
zone A and B
State Goods and -Investment promotion subsidy of SGST for first sale within the state and
Services Tax (SGST) billed and delivered to the same entity
Provided on first-cum-first serve basis
Electricity duty -exemption only to -exemption for tenure - -exemption
exemption 100% export equal to eligibility period for tenure
oriented MSMEs equal to
and IT/BT units for eligibility
seven years period

 Industrial promotion subsidy shall be 40% of the SGST

paid for the first sales within the state for units having
investment more than INR50 cr. and up to minimum
investment stipulated for large scale units
 Not applicable for units in ‘A’ and ‘B’ zone
 Additional incentives to LSI units in thrust sectors
 Eligibility for stamp duty exemption for the investment
period to units under the PSI 2013 scheme
 Aggregate fiscal incentives provided shall not exceed the
investment promotional subsidy (IPS) (as a percentage
of FCI) as defined by the state government

5.1.2 Mega and Ultra Mega Projects

 Industrial units satisfying the minimum threshold limits
of FCI or direct employment prescribed

Particulars Entire state Zone A Zone C Zone D Zone Specified No industry

&B D+ areas area
Classification Ultra-mega Mega industrial units
Minimum FCI (INR) 4000 cr. 1500 cr. 1000 750 cr. 500 350 cr. 200 cr.
cr. cr.
Minimum direct 4000 nos. 2000 1500 1000 750 500 nos. 350 nos.
employment nos. nos. nos. nos.

 Continuation of present policy of MIDC regarding

allotting plots on priority basis
 Approval of customized package by High Power
Committee under Chief Secretary
  Approval to customized incentives on case to case basis
by cabinet sub-committee under the chairmanship of
the Chief Minister
 State Government shall be equity partner of 9% through
Maharashtra Vikrikar Rokhe Pradhikaran Limited
(MVRPL) in Large, Mega and Ultra projects and projects
with FCI of more than INR 500 cr.
 Apart from Industries Department Package Scheme of
Incentives, the financial refunds/incentives to an
industrial units from all sources put together shall be
admissible within the limit of 100% of FCI
6. Monitoring and Review of the Policy
 A committee headed by Principal Secretary (Industries), Government of
Maharashtra shall function
 A policy Monitoring (PMU) shall be set up
 Changes in the industrial policy will be with the Cabinet Sub –Committee under the
chairmanship of Hon’ble Chief Minister constituted vide G.R. No. IDL-1004/C.R. 318/
Ind-8, dated 24/11/2004