VIA holds Discussion on “New Package Scheme of Incentives (PSI) 2019”
Joint Director of Industries ( JDI), Nagpur, Shri Ashok Dharmadhikari said that the most of the industrial units located in the Vidarbha region will be covered under the New Package Scheme of Incentives 2019. He said that the scheme will prove beneficial to the entrepreneurs here and help the industry grow in the region. Shri Dharmadhikari was speaking at the session on “New Package Scheme of Incentives (PSI) 2019” held at VIA Auditorium, Nagpur. The event was organised by the Taxation and Corporate Law Forum of Vidarbha Industries Association (VIA).
Nitin Agrawal, Chartered Accountant, VIA President Suresh Rathi, CA Sachin Jajodia, Convener of VIA Taxation & Corporate Law Forum, CA Naresh Jakhotia, Treasurer – VIA, G O Bharati, GM – DIC and others were present on the occasion.
Shri Dharmadhikari also explained in detail the comparison of PSI 2013 and PSI 2019 and resolved the queries raised during the session. He also mentioned that Maharashtra Government had accepted many of our suggestions raised during Inter the Regional Committee (IRC) and implemented in the scheme. Shri Gajendra Bharti, General Manager – DIC, Nagpur also presented his views of the scheme and highlighted some crucial points.
Shri Agrawal gave detailed presentation on the scheme of Incentives- 2019. The key highlights of the presentation were period of operation of scheme i.e. from April 1, 2019 to March 31, 2024 or till the new package scheme of incentives comes into force. The incentives provided in the scheme have been categorized for MSME sector and small industries, large scale units (LSI), special large scale units, mega projects and ultra mega projects.
The maximum benefits in the scheme are available to MSMEs i.e. 80 per cent of their fixed capital investment which they can avail by way of refund of 100 per cent Gross SGST payable on 1st sale of eligible products billed and delivered within Maharashtra, 5 per cent per annum interest subsidy on term loan, exemption of electricity duty, waiver of stamp duty for acquiring land (including assignment of lease rights and sale certificate) and for term loan purposes and Re.1 power tariff subsidy for 3 years along with various other incentives.
Shri Agrawal informed the participants that a major change in the policy is that the units having gross fixed capital investment up to Rs 50 crore termed as small industries shall be eligible for incentives of MSMEs.
For Vidarbha, Marathwada, Ratnagiri, Sindhudurg and Dhule, the threshold limit of fixed capital investment to qualify as‘Large Scale Unit’ has been fixed at Rs 100 crore (Eligible FCI) or direct employment to 300 people out of which 80 per cent of such employees should be local persons. In the earlier scheme i.e. PSI 2013, the units having gross investment in plant and machinery above Rs 10 crore were classified as large scale unit. The LSI units are eligible for basket of incentives which is 80 per cent of FCI as a maximum ceiling having eligibility period of 9 years. They will be eligible for IPS of 50 per cent of Gross SGST payable on 1st sale of eligible products billed and delivered within Maharashtra along with Exemption of electricity duty & waiver of stamp duty.
New concept under the head ‘Special LSI’ has been introduced in PSI 2019. The category covers units having FCI of more than Rs 50 crore and upto minimum investment stipulated for qualifying as LSI Unit.
For Vidarbha, Marathwada, Ratnagiri, Sindhudurg and Dhule, the threshold to qualify as ‘Mega Project’ has been fixed at Rs 350 crore (eligible FCI) or direct employment to 500 people.
Shri Suresh Rathi in his welcome address briefed about the new ‘Package Scheme of Incentives – 2019’. He also welcomed Shri Ashok Dharmadhikari with floral bouquet and Shri Rakesh Surana welcomed Shri Bharati while Ms Shilpa Agrawal welcomed Shri Nitin Agrawal with floral bouquets. Shri Sachin Jajodia conducted the proceedings of the event while Shri Naresh Jakhotia proposed a formal vote of thanks. CA Girish Deodhar, Bhagwat Thakre, Vaibhav Agrawal and Hardik Doshi and others also attended the event.
VIA Taxation and Corporate Law Forum presents "New Package Scheme of Incentives 2019" with Shri. Ashok Dharmadhikari and CA Nitin Agrawal.
Posted by Vidarbha Industries Association on Friday, November 8, 2019