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DNA EXCLUSIVE: New Industrial Policy touted to create 60 lakh jobs by 2023

Policy expected to attract investment of Rs 10 lakh crore; MSME sector to receive more financial incentives

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The Maharashtra government will soon release its new industrial policy which aims to attract an investment of Rs 10 lakh crore and create 60 lakh jobs by 2023. The thrust sectors will be MSMEs, IT and ITES, bio tech, medical and diagnosis manufacturing, aerospace and defence, green energy biofuel manufacturing, nuclear power plant equipment manufacturing, logistics and warehousing, and textile machinery manufacturing.

State industries minister Subhash Desai, while speaking to DNA, confirmed that the new industrial policy envisages Maharashtra to be a global investment and manufacturing hub.

The government proposes to provide additional financial incentives to MSMEs, as they currently have only 8 per cent share in the total disbursement of incentives under the Package Scheme of Incentives, while mega and ultra mega industries get 89 per cent share and large scale industries get 3 per cent.

A state industries department official, who was engaged in the formulation of the new policy, said, "MSMEs are the backbone of the state's economy as the sector generates 32 jobs per crore investment, which is 10 times more that of mega projects. MSMEs contribute to more than 80 per cent of the total employment. Therefore, the government proposes 5 per cent subsidy on capital equipment for technology upgradation subject to maximum of Rs 25 lakh for new MSMEs and their expansion, 75 per cent subsidy on expenses incurred on quality certification limited to Rs 2 lakh." He added that the government will provide 25 per cent subsidy on capital equipment for cleaner production measures limited to Rs 5 lakh.

Besides these, MSMEs will be offered incentives for credit rating, wherein 75 per cent of the cost will be provided and they will also be eligible for 75 per cent of cost of water auditing limited to Rs 2 lakh and 75 per cent cost of energy auditing limited to Rs 4 lakh. Under the Maharashtra State Industrial Cluster Development Programme, MSMEs will get subsidy up to Rs 10 crore; about 116 projects have been identified across sectors.

The government, in joint cooperation with world acclaimed institutes such as Harvard and Cornell, will establish a Centre of Excellence for the MSME sector.

The official clarified that large, mega, and ultra mega projects will be provided graded incentives to encourage an early realisation as well as dispersal of investments, especially in the underdeveloped and backward areas.

Furthermore, the government, to promote employment generation, will launch the new Employment Generation Programme. The promoters of mega and ultra mega industrial projects with investment of Rs 4,000 crore will be eligible for 50 per cent reimbursement of employers' contribution towards Employees' Provident Fund (EPF) and Employees' State Insurance (ESI).

The government, in a bid to improve infrastructure in the industrial estates run by Maharashtra Industrial Development Corporation and also other industrial areas, will create a corpus of Rs 1,000 crore with the contribution of Rs 500 crore each from the government and MIDC.

THE AIM IS TO...

  • Make Maharashtra investment and manufacturing hub
     
  • Attain manufacturing sector growth rate of 12 to 13%
     
  • Contribute towards making Maharashtra a $1 trillion economy by 2025
     
  • Creation of land bank and growth centres
     
  • To launch Maharashtra State's New Employment Generation Programme
     
  • Financial assistance to be given for establishment of industrial parks including 25 food and 5 pharma parks
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