Avail benefits under PSI: CA Julfesh Shah to MSMEs
   Date :22-Jul-2020

CA Julfesh_1  H
 
 
Business Bureau :
 
With a view to steer industrial development and to encourage the dispersal of industries to lesser developed areas of various, State Government has been giving package of incentives to new industrial units/expansion/ diversification units set up in the developing regions of the State since long under a scheme known as the Package Scheme of Incentives (PSI) and industries need not worry as these incentives will remain in force even after the phase of COVID-19, said CA Julfesh Shah, expert on the subject while addressing a webinar on ‘Industrial Policy and Govt incentives under various schemes’ organised by ICAI. He said that in Maharashtra, the Package Scheme of Incentives, introduced in 1964, has been amended from time to time and the scheme as amended last is commonly known as the ‘Package Scheme of Incentives-2019 (PSI-2019)’ and has came into effect from April 1, 2019 to ensure sustained industrial growth through various innovative initiatives so as to further improve the conducive industrial climate in the State and to provide global competitive edge to the industries. He said that MSMEs should avail maximum benefits under the scheme which will help them to further expand and consolidate their position.
 
Shah covered various aspects of the scheme viz it’s applicability, period of operation, categories of eligible units covered under the scheme, classification of areas on the basis of their industrial development, various definitions incorporated in the scheme etc. He said that for Vidarbha and Marathwada areas for MSMEs new units, 80% of the total fixed capital investment (FCI) will qualify as the eligible amount for availing basket of incentives which can be availed in 10 years with yearly cap. For the purpose of this policy, MSME shall include units as per the MSMED Act 2006 as well as the units with FCI of upto Rs 50 crore.
 
The total quantum for the food and agro processing units will be additional 20 per cent over and above the stipulated quantum of incentives. He also briefed about the incentives offered for large scale industries, special LSIs and mega projects. Shah further elaborated that to promote high-tech emerging sectors and generation of employment, the State Government has identified various thrust sectors.
 
Thrust sectors include electric vehicles (manufacturing, infrastructure and servicing), aerospace and Defence manufacturing, industry 4.0 (Artificial Intelligence, 3D printing, Robotics, Nanotechnology, among others), textile machinery manufacturing, bio technology and medical and diagnostic devices, agro & food processing (secondary and tertiary food processing units), logistics & warehousing, green energy/bio fuel production, sports and Gym equipment manufacturing etc. He explained that proper planning & documentation is necessary for availing the maximum benefits. A question answer session was also conducted in the webinar. CA Lalit Bajaj, Chairman, Western India Regional Council (WIRC) made the introductory remarks and CA Anand Jakhotiya, Treasurer of WIRC introduced the speakers. CA Arpit Kabra, RCM, co-ordinated the proceedings and CA Murtuza Kachwala, Secretary, WIRC proposed the vote of thanks.