Maharashtra’s New Industrial Policy Welcomed by MSMEs

Maharashtra’s New Industrial Policy Welcomed by MSMEs

Eyeing to boost industrial sector in Maharashtra, the state government unveiled a new five-year industrial policy (2019-24) which will come into effect from April 1, 2019.

Under the new industrial policy, Micro Small and Medium Enterprises (MSME) eligible new units in north Maharashtra, Vidabrha, Marathwada, Raigad, Ratnagiri and Sindhudurg in Konkan will get power tariff subsidy of Rs 1 per unit consumed.

Welcoming the state government move of giving power tariff subsidy to industrial units in state, President of Vidarbha Industries Association (VIA), Atul Pandey was quoted in media that this is the biggest relief for industrial units in state.”

He stated “Relief is that the power tariff subsidy will be maintained for another 5 years which will give competitive edge to industries as due to high power cost, industries in the region suffered a lot.

The power cost was not competitive compared to neighbouring states and due to this investments coming to region get distracted but now this policy initiative will make them competitive, he added.

In addition, Pandey welcomed revival of stressed assets feature of the policy. The policy include revival and unlocking assets tied up in closed units. Under this, 20,000 square metre of contiguous land in MIDC areas will be allowed to develop industrial clusters. Special incentives shall be taken up to promote industrial land.

Besides this, he added that on PAN India basis we have so many other export promotion agencies like APEDA for agriculture, CAMEX for chemicals, similarly for Maharashtra the state level export promotion council will be set up to attract global investments in state.

Apart from giving thrust to important sectors and regions in the policy, the policy also focussed on industrial growth and development of the backward regions of Vidarbha and Marathwada.

It also introduced a special component for the development of naxal affected districts like Washim and Gadchiroli under the industrial cluster development project.

On sharing his view point on this, Pandey said “This is a much awaited relief as these are practically no industry district but they deserve a backup like this.”

Among the key highlights of the policy are promotions of MSMEs, new Chief Minister Employment Programme, incentive for large and mega projects, creation of land bank, a critical infrastructure fund of ₹1,000 crore, creation of commerce and trade councils, and additional incentives for agro and food processing industries.

Another important feature of the policy, he highlighted that industrial cluster-based approach to promote sustainable, cost-effective and an inclusive strategy to ensure competitive and improved micro, small and medium enterprises (MSME) units.

The policy aims to attract investments of over Rs 10 lakh crore and creating around 40 lakh jobs by 2023-24.

“The objective is to give priority in land development to MSMEs, women entrepreneurs and ST/SC entrepreneurs,” the new policy documents stated.

On the same ground, when KNN India spoke to President of Pimpri Chinchwad Small Industries Association, Sandip Belsare, he quoted “They have made very good announcements in the policy but implementation is an issue.”

The benefits will be passed to small industries if the policy announced will be implemented properly with the same intent as it was released.

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