In a significant move to boost industrial growth, the Maharashtra government has expanded its Package Scheme of Incentives to include more developed regions, notably Pune district. This policy shift is set to make higher capital investments in Pune's micro, small, and medium enterprises (MSMEs) more financially viable, according to industry stakeholders.
What the Expanded Scheme Offers
The Package Scheme of Incentives provides a range of financial benefits to MSMEs undertaking capital investments. These subsidies are designed to lower the cost of expansion and include interest subvention, rebates on Goods and Services Tax (GST), reduced electricity tariffs, and stamp duty waivers. Eligible investments cover activities like purchasing land or machinery, establishing research divisions, or upgrading technology.
The scheme operates on a graded structure, where the subsidy amount increases based on the relative backwardness of a district. Maharashtra's districts are categorized into five groups: A, B, C, D, and D+, with 'A' being the most developed.
Why Pune Was Initially Excluded and Why It's Included Now
For a long time, Pune district, classified in the developed 'A' category, was excluded from these benefits. Sandip Rokade, Joint Director of the Maharashtra industries department, explained that the scheme was originally conceived to promote industrial expansion in remote and underdeveloped districts. Pune and the Pimpri Chinchwad area have had a dense concentration of industries since the 1980s, reducing the initial need for such incentives there.
However, this blanket exclusion created internal disparities. Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), pointed out that development across Pune district is not uniform. This inconsistency led to uneven investment decisions within the district itself, prompting calls for a policy review.
Stringent Eligibility Criteria Remain
Despite the widened scope, the criteria for availing the scheme's benefits remain strict. Rokade emphasized that the parameters for becoming a beneficiary are very stringent. Beyond financial eligibility, units must comply with several industrial regulations.
The two primary challenges for MSMEs are:
- The unit must be approved by the relevant town planning authority.
- The factory plot must be officially designated as industrial non-agricultural land.
Furthermore, the scheme is not for established businesses. An enterprise operating for more than ten years is ineligible. The incentives are targeted at newly formed units that have surpassed a certain scale and are in an active expansion phase. The state industries department will shortly issue new modalities clarifying which units can apply, based on their investment dates. Investments made roughly within the next two to three years could qualify, provided all other criteria are met.
Implications for Pune's Industrial Landscape
This policy change directly addresses the demands of Pune's growing MSME sector. As Girbane noted, some MSMEs in the district have scaled up over the years and expressed willingness to invest in other areas, provided they received some benefits in 'A' category zones. By including Pune, the government aims to catalyze further capital infusion, support technology adoption, and encourage the setting up of research and development facilities within the state's industrial heartland.
The move is expected to level the playing field within Pune district, spurring investment in its less-developed talukas while supporting the expansion ambitions of its successful small and medium businesses.
