Industrial Subsidy Schemes

Industrial subsidy schemes are government initiatives designed to promote business growth by providing financial assistance, tax benefits, and other incentives to eligible enterprises. These schemes aim to encourage investment, employment, and economic development across various sectors and regions.

Maharashtra State Subsidy Policy

The Maharashtra State Government offers several policies to incentivize industrial growth. These include benefits under the Package Scheme of Incentives (PSI), the Maharashtra State Women Entrepreneurship Policy, and the Maharashtra State Electronic Policy.

Package Scheme of Incentives, 2019

This scheme allows manufacturing units within Maharashtra to claim subsidies up to 100% of their fixed capital investment. These incentives include:

• 100% gross SGST refund.
• 5% interest subsidy on term loans.
• Power tariff subsidy.
• Exemption from electricity duty.
• Waiver of stamp duty.

Maharashtra State Women Entrepreneurs Policy – 2017

This policy supports women entrepreneurs by offering additional incentives such as:

• Capital subsidy ranging from 15% to 35% of the fixed capital investment, with a maximum limit of Rs. 1 crore, depending on the unit's location.
• 50% refund of EPF/ESI contributions for women employees for up to 5 years.
• Support for brand development, covering 50% of the cost, up to Rs. 1 crore.

Maharashtra State Electronic Policy

The Maharashtra State Electronic Policy provides benefits similar to the Package Scheme of Incentives but with additional emphasis on the electronics sector. Eligible units can receive subsidies covering 100% of their investment, irrespective of location within the state.

Madhya Pradesh State Subsidy Policy

Madhya Pradesh offers comprehensive incentives to promote industrialization across the state. Key schemes include the MSME Development Policy, Startup Policy, and the Electronics Manufacturing Cluster Scheme.

MSME Development Policy

The MSME Development Policy supports micro, small, and medium enterprises with benefits such as:

• Capital investment subsidy of up to 25%, with a maximum limit of Rs. 30 lakhs.
• Exemption from stamp duty and electricity duty for up to 5 years.
• Interest subsidy on term loans, up to 5% for 7 years.
• Reimbursement of 50% of the cost of quality certifications and patent registrations.

Startup Policy

The Madhya Pradesh Startup Policy encourages innovation by offering:

• Grants of up to Rs. 5 lakhs for prototype development.
• Marketing support of up to Rs. 10 lakhs.
• Reimbursement of GST paid during the initial 3 years of operation.
• Access to co-working spaces and incubation centers at nominal charges.

Electronics Manufacturing Cluster Scheme

This scheme focuses on promoting electronics manufacturing by providing:

• Subsidies covering up to 50% of the project cost for establishing manufacturing units.
• Infrastructure support, including land allocation and connectivity.
• Tax exemptions and fast-track approvals for electronics projects.