Amid the second wave of COVID-19, with the objective of gearing up for the emergency oxygen need, Government of Maharashtra has framed an incentives scheme for industries setting up new oxygen plants under ‘Oxygen Swawlamban.’ This scheme would focus on meeting the State’s medical oxygen needs.
At present the State’s oxygen generation capacity is 1300 MT per day and to meet the target of producing 3000 MT of oxygen per day, the Maharashtra State Government (in its GR dated May 21, 2021) has declared few incentives to motivate the industry to build-up fresh capacities.
With these incentives, Maharashtra’s healthcare system is expected to be strengthened by increasing manufacturing and storage of oxygen, thus becoming an oxygen self-reliant State in near future. The scheme can be availed by industrial units manufacturing liquid medical oxygen, oxygen cylinders and cryogenic tankers. The units set up in Vidarbha, Marathwada, Dhule, Nandurbar, Ratnagiri and Sindhudurg regions will be eligible for incentives up to 150 per cent
of their eligible fixed capital investments and units set up in rest of Maharashtra shall be eligible for up to 100 per cent general incentives. Incentives under the said scheme can be availed as follows: Refund by way of Gross SGST (i.e., State GST), Stamp Duty exemption, power tariff refund @ Rs 2 per unit for period of 5 years from the date of commercial production, interest subsidy on term loan @ 5% for MSME units, capital incentives – 20% of capital incentive of fixed capital investment for units set up in Vidarbha, Marathwada, Dhule, Nandurbar, Ratnagiri and Sindhudurg and 10% of capital incentive of fixed capital investment for rest of Maharashtra.
MIDC Land shall be allotted at subsidised rate of 50% of the prevalent rate of land for units set up in Vidarbha, Marathwada, Dhule, Nandurbar, Ratnagiri and Sindhudurg and 25% of the prevalent rate of land for rest of Maharashtra.
The eligibility period for availing the incentives shall be 9 years (for unit having capacity of 25 MT to 50 MT) and 12 years (for units having capacity above 50 MT). However, eligibility period for MSME unit having fixed capital investment upto Rs 50 crore shall be of 7 years. The respective units will be required to submit the application before June 30, 2021 to be eligible for the benefits of this scheme.
The units can alternatively avail incentives under Package Scheme of Incentives 2019 (PSI) which primarily offers various fiscal and non-fiscal incentives for setting up industries in lesser developed areas of the State. It is imperative for businesses to explore the viability of the Scheme vis-à-vis PSI and take an informed decision before making the application with implementing agency, informs a press release by CA Ashish Saoji.