Package Scheme of Incentives- 2019

(GR No.PSI-2019/CR46/IND-8- Dtd:16.09.2019)

CA. NITIN AGRAWAL

(Partner)
Gupta Sarda & Bagdia
Chartered Accountants
Nagpur
9822572295
PSI-2019

• In order to encourage the dispersal of industries to lesser

developed areas of the State, the govt. has been giving package
scheme of incentives to New/Expansion/Diversification units
since 1964 under a scheme popularly known as “Package Scheme
of Incentives”.
• The PSI, introduced in 1964, has been amended from time to
time. The Scheme as amended last was PSI-2013 and was
operative from 1 st April 2013 till 31 st march 2019.
• The State government with an objective:
- To provide global competitive edge to the industries in the state
- for Accelerated industrial growth & sustainable development
- To create additional employment opportunities to local persons
- and Emphasis on balanced regional development
has introduced new Package Scheme of Incentives-2019.
 Period of operation of PSI-2019

From 1st April 2019 up to 31st March 2024

or
till the new Package Scheme of Incentives
comes into force.
The following categories of eligible industrial units in Private Sector, Cooperative
Sector, State Public Sector/Joint Sector shall be eligible for incentives:

• Industries listed in the First Schedule of the Industries (Development and Regulation) Act,
1951, as amended from time to time
• Manufacturing Enterprises as defined in the MSMED Act, 2006
• Information Technology (IT) & Bio Technology (BT) Manufacturing Units
• Mechanized Food / Agro Processing Industries in following sectors:
➢ Dairy, Fruit and Vegetable Processing.
➢ Grain Processing.
➢ Fish/Meat/Poultry Processing.
➢ Consumer foods including Packed foods.
➢ Non alcoholic beverages from fruits and vegetables.
(Note: Only secondary and tertiary agro and food processing units shall be eligible for
incentives. This condition will not be applicable to processing/manufacturing units set up by
Farmers Producers Companies and the units set up in govt assisted food parks and carrying
out primary processing activity)
*Explanation:

➢Primary Agro/Food Processing: Turns agricultural produces into something that can
eventually be eaten. This category includes ingredients that are produced by
processes such as drying, threshing, winnowing and milling grain, shelling nuts etc.

➢Secondary Agro/Food Processing: involves mechanized processing of food/agro

ingredient that has already undergone primary processing. Eg. Baking Bread in a
Bakery.

➢Tertiary Agro/ Food Processing: is the mechanised commercial production of what

is commonly called processed food. These are ready to eat or heat and serve foods,
such as re-heated airline meals.
Units which are not eligible:
The units manufacturing the following products shall not be eligible for incentives
under PSI-2019:
• Beer, liquor manufacturing industries
• Cigarette, bidi or any other tobacco containing products manufacturing
industries
• Gutka & pan masala manufacturing industries
• Any other product(s) banned by Central/State Government.

Note: Units manufacturing all types of textiles including cotton ginning and
pressing, sizing, spinning, weaving, bleaching, dyeing, mercerizing, etc. covered
under the Textile Policy- 2018-23 of Maharashtra State shall be eligible only for
incentives other than those offered by the other state government agencies.
PSI-2019

MSMEs
Financial Incentives: New MSME units & Small Industries will be eligible for a
Basket of Incentives. The total quantum of incentives will be linked up to the percentage of actual
eligible Fixed Capital Investment as per Taluka/Area classification. The aggregate fiscal incentives
provided by various departments of the State Government shall not exceed the basket of incentives
(as %age of FCI)
• Basket of incentives for new MSME units & Small industries is:
Taluka/Area Classification Maximum Ceiling of basket of Eligibility Period
incentives as % of FCI (Yrs)
A -- --
B 30% 7
C 40% 7
D 50% 10
D+ 60% 10
Vidarbha, Marathwada, Ratnagiri, 80% 10
Sindhudurg & Dhule
No industry Districts, Naxalism Affected 100% 10
Areas & Aspirational Districts
Financial Incentives:

• The quantum of incentives for food/agro processing units, eligible

green energy/bio-fuel manufacturing units & units carrying out
industry 4.0 activity (Artificial intelligence, 3D Printing, internet of
things & Robotics) will be 20% over & above the limits mentioned
above & will get 2 more years of eligibility to avail incentives.

Expansion/Diversification Units:
• Eligible for incentives equivalent to 80% of the incentives admissible
for New Units & the eligibility period will be reduced by one year.
Classification of Area for PSI-2019: For the purpose of PSI-2019, on the
basis of level of industrial development, different areas of the state (taluka wise) has been
classified as:
i) Group-A Industrially Developed Areas

ii) Group-B Developed but less than Group-A

iii) Group-C Less Developed Than Group-B

iv) Group-D Lesser developed areas not covered under Group-A/B/C

v) Group-D+ Least developed areas not covered under Group-A/B/C/D

vi) No Industry District District having no industries viz. Hingoli & Gadchiroli

vii) Naxalism Affected Area Area affected by Naxalism

viii) Aspirational Districts Defined by Govt. of India viz. Washim, Gadchiroli, Osmanabad &
Nandurbar
Who are MSME units & Small Industries??

• MSMEs shall be construed as per the definition in the MSMED Act 2006 which
says:

Category Investment in Plant & Machinery

Micro Upto Rs.25 Lakhs
Small Between Rs.25 lakhs to Rs.5 Crores
Medium Between Rs.5 Crores to Rs.10 Crores

& Units outside the above definition with Total Gross Fixed Capital Investment (FCI)
up to Rs.50 Crore* as Small Industries.

(Note:*The gross FCI of Expansion/diversification Units should be up to Rs.50 Crores after

expansion to qualify for incentives under this category)
Meaning of New & Expansion/diversification unit:
• Existing Unit:
• A Unit which has been set up and is in production on or any time prior to
the 1st April, 2019, or

• A Unit which has been granted an Eligibility Certificate (EC) or has

availed any incentives (excluding Stamp Duty) under any of the Earlier
Schemes, or

• A Unit which has filed a valid application for grant of an EC under the
PSI-2013 with any of the Implementing Agencies on or before the 31st
March 2019.
New Unit:
• Unit which is set up for the first time by an entity in any taluka where
there is no Existing Unit set up by the said entity, provided that such
Unit satisfies the following conditions:

• It is not an Existing Unit.

• At least one of the Effective Steps is completed on or after the

1st April, 2019 for setting of the Unit.

• It is not formed as a result of re-establishment, mere change of

ownership, change in the constitution, reconstruction or revival
of an Existing Unit.
Expansion/Diversification Project:
• The investment shall be regarded as Expansion or Diversification project if it satisfies the
following conditions:
• The said additional fixed capital investment should exceed 25% of the existing
gross fixed capital investment as on the last day of previous Financial Year.
• The minimum additional fixed capital investment made on or after 1st April, 2019
should be Rs.25 Lacs in case of MSMEs, Rs. 5 Crores in case of non-MSMEs up
to Special LSIs and Rs. 10 Crores in case of LSI and Special LSIs.
• The additional fixed capital investment should result in increase of existing
installed production capacity by at least 25% (in case of Expansion or expansion
cum diversification but not mere diversification "per se”)
• There should be increase in the employment at least to the extent of 10% of
existing level and 80% of such additional employment should be from amongst
local persons.
• There will be limit of TWO number of expansions/diversifications in the scheme
period.
What is Actual Eligible Fixed Capital Investment:
• The actual eligible Fixed Capital Investment shall mean & include the capitalized
value of the following assets (net value after all set offs):
• Land/area in effective possession with permission for industrial use.
• Cost of development of the location of the unit
• Building- any new built up area including administrative building, residential quarters, industrial housing &
accommodation for all such facilities as are required for the manufacturing process at the site
• Amount paid to Electricity Distribution company for supply of power or to MIDC for development of
infrastructure or to any other govt. agency for similar purpose excluding deposits paid.
• Plant & Machinery required & used for sustaining the working of the unit at site (excluding vehicles)
• Cold storage which are a part of integrated manufacturing process.
• Installation Charges & pre-operative expenses capitalized.
• Research & Development- up to 25% of FCI (max Rs.100 Cr)
• Royalties paid for technology transfer & technical know how including cost of drawings & know how fees
(up to max. 10% of capital cost)
• Investment in Captive power plant- considered for qualifying criteria for eligibility but not for incentives.

---contd--
Conditions:
• Only new fixed assets shall be accepted.
• The project appraisal shall be done by the lender of term loan
• In case project is financed by NBFC/Credit Society/Self or partly financed
project; the appraisal to be done by Scheduled Commercial Bank/SICOM.
• Only imported second hand machinery having residual life of minimum 10
years shall be considered towards Gross FCI.
• The assets on which benefit is availed cannot be disposed
off/sold/shifted/written off without prior permission of implementing
agency.
• Any increase in Gross FCI as a result of replacement of any fixed assets
earlier considered under the EC shall not have any additional incentives.
How much time we get for such investment:

• Investment Period:
• It is period for unit to acquire the fixed assets at site and put them to
use for commercial production. The permissible investment period for
various categories are as under:
Category of Unit Period of investment
MSME Three years
LSI & Special LSI Four years
Mega/Ultra Mega Five years
Procedure for Application & Claim for Eligibility
• Application for EC: An application for eligibility under PSI-2019 Scheme shall be submitted
to the implementing agency by an eligible unit along with documentary evidence only after it has
taken all the effective steps but not later than 31st march 2024.
• A valid application for eligibility shall be submitted on or before the date of commencement of
commercial production. If there is any delay, the EC period and entitlement amount will be
curtailed proportionately.

• Now what these Effective Steps are:

➢ Effective possession of land/shed/gala, having a permission for industrial use

➢ Registration, in case of firm/LLP/Company/Trust/Society/Co-operative society.
➢ LOI for IT/BT manufacturing Units
➢ In case of MSMEs- Consent to Establish from MPCB
➢ Other than MSMEs- Copy of IEM
Claim for EC:

• For claiming eligibility, the unit shall commence the commercial production &
also acquire the fixed assets at site, put them to use & paid for the same within
the permissible investment period.

• The investment period shall be counted from the date of submission of

application or the date suggested by the eligible unit. The date should be within
the scheme period & assets acquired should be within the investment period.

• However, in case of vacant land acquired prior to policy period or investment

period; the cost of such land shall be considered as a part of eligible fixed capital
investment, provided no incentives were availed earlier under any scheme on the
said land.

• The unit shall obtain a separate registration under Maharashtra GST Act 2017
Effective Date of Eligibility Certificate
The EC shall be issued with effect from the date of commencement of
commercial production. For the purpose of EC, the date of
commencement of commercial production shall be deemed to be the first
day of the month following the month in which such production has
commenced.

Claiming benefits under Expansion/Diversification:

The unit shall be required to maintain separate record of production for
such expansion. In case, however, maintain separate records is not
possible, the benefits for such eligible units shall be available in the ratio
of additional fixed capital investment to the gross fixed capital
investment.
---contd..---

In which form I will be getting the above benefit?

Financial Incentives to MSMEs & Small Industries:
Type of Subsidy To whom Quantum of subsidy
Industrial Promotion All eligible 100% Gross SGST payable on 1st sale of eligible products billed
Subsidy (IPS): New/Expansion and delivered within Maharashtra
units

Interest Subsidy All eligible New 5% pa on term loan (not exceeding the bills paid for electricity
Units consumed during the relevant year)

Exemption from All eligible New Exempt from payment of electricity duty during applicable
Electricity Duty Units (except eligibility period
(Out of Basket of units in Grp A&B
Incentives) areas)
In Grp-A &B Only eligible 100% export oriented units, IT/BT manufacturing
areas units will be exempted from payment of electricity duty for a period
of 7 years.
---contd---
Financial Incentives to MSMEs & Small Industries:
Type of Subsidy To whom Quantum of subsidy
Waiver of Stamp All eligible New/Expansion Units (except Exempt from payment of stamp duty for acquiring land
Duty units in Grp-A&B areas) (including assignment of lease rights & sale certificate) &
for term loan purposes.
In Grp-A&B areas -IT/BT manufacturing Units in Public IT/BT Parks:100%
-IT/BT manufacturing Units in Private IT/BT Parks:75%

Power Tariff Eligible New MSME & Small Industries in Re.1/- per unit for a period of 3 years from the date of
Subsidy Vidarbha & Marathwada, North Maharashtra commencement of commercial production for energy
& districts of Raigad, Ratnagiri & Sindhudurg consumed & paid.
in Konkan Region, No Industries Districts,
Naxalism Affected Areas & Aspirational
Districts
Other Area Rs.0.50 per unit for a period of 3 years from the date of
commencement of commercial production for energy
consumed & paid.

---contd--
Financial Incentives to MSMEs & Small Industries:
• Additional Incentives for Strengthening MSMEs (Out of Basket):
Type of Subsidy To whom Quantum of subsidy
Technology 5% subsidy only on additional capital equipment acquired for
Upgradation Technology upgradation, subject to maximum of Rs.25.00 lakhs
Quality Certification 75% subsidy on expenses incurred –Limited to Rs.1.00 Lakh
Cleaner Production 25% subsidy on additional capital equipment acquired for cleaner
Measures production measures–Limited to Rs.5.00 Lakhs.
Expansion
Patent Registration projects of 75% subsidy on expenses incurred- Limited to Rs.10.00 lakhs for
MSMEs & National Patents & Rs.20.00 lakhs for International Patents.
Water Audit Small 75% of cost of water audit limited to Rs.1.00 lakh
Energy Audit Industries 75% of cost of energy audit limited to Rs.2.00 lakh
Conserve/Recycle 50% of cost of capital equipment-limited to Rs.5.00 lakhs
Water
Improving Energy 50% of cost of capital equipment-limited to Rs.5.00 lakhs
Efficiency
Credit Rating 75% of cost-limited to Rs.40,000/-
Procedure for Claiming Incentives

The eligible units shall file a valid claim in prescribed format on annual basis. The
valid claim shall be filed within 11 months from the close of concerned financial year.
First such claim shall be filed within 11 months from the close of the financial year in
which EC has been issued or its effective eligibility was established, whichever is
later.
A valid claim shall be preferred in Form II (Annexure-A) along with the following:
• Annexure-B (Auditor’s Certificate) certifying the actual value of turnover/GST
paid/payable.
• Certified Copies of SGST Returns and tax paid challans
• Statutory SGST Audit Report
• Annexure-C (Auditor’s Certificate) with regards to fixed assets.
• Annexure-D (Estimate) regarding anticipated liabilities under SGST for next FY.
• Audited financial statements
• Annual Follow-up Report
• Board Resolution empowering signatory for signing application
Sanctioning of Incentives:
• Based on above documents, the Implementing Agency shall sanction 90% of
IPS in case of Mega/Ultra Mega Projects and 85% of IPS in case of other
units.

• Claim for remaining 10% / 15% of IPS shall be sanctioned by the

Implementing Agency after completion of assessment and receipt of Form-A
from GST authority.

• Any delay in filing of valid IPS claim within the prescribed time shall attract
penalty by way of 10% deduction in quantum of admissible IPS and for
delay exceeding 6 months, claim shall be automatically treated as lapsed.

• The last claim of 10% / 15% shall be sanctioned by Implementing Agency

only after completion of Operative Period.
Financial Incentives
• NOTE:
• Apart from Industries Departments Package Scheme of Incentives, micro, small, medium,
large, mega & ultra mega units are given incentives/concessions by other administrative
departments of state government (eg. Textiles, Food processing, tourism, IT). The
financial refunds/incentives to an industrial units from all sources put together shall not
exceed admissible fixed capital investment as per respective taluka category.
• Yearly Cap On Incentives
• The amount of incentives to be disbursed to all category of units every year will be
limited to the total quantum of incentives divided by the number of years as per the
applicable Eligibility period with the provision of carrying forward the surplus differential
between the actual sanctioned amount for a given year and the yearly disbursement limit.
Deficit differential will not be carried forward.
• (High Power Committee has the power to amend the yearly cap of incentives in case of Mega/Ultra
Mega Projects.)
Monitoring & Review:
• The eligible unit shall submit a report covering details regarding:
-production and sales,
-indicating period of stoppage of production and/or closure of unit with
reasons there for,
-addition to the fixed capital investment
-disposal of fixed assets and
-changes in the constitution of the unit.
• Shall also submit within a period of 9 months from the closure of every year, a
certified true copy of the audited annual statement of accounts & balance sheets
for the said year.
• Failure on the above part shall mount to breach of the provisions of PSI-2019,
entailing suitable action as provided under the Procedural Rules, including action
to cancel the EC or premature recall of and immediate recovery of the incentives
drawn/availed.
Operative Period:

• Mean & include the minimum period of operation of unit which has availed
incentives under the scheme.

Category Period
Micro & Small Scale Eligibility period + 5 Years
Medium & Large Scale Eligibility period + 7 years
Mega Projects Eligibility period + 10 years

• If the unit which has availed incentives stops production during the operative
period, then the incentives availed shall be recovered along with penal interest as
per law.
PSI-2019

Large Scale Industries

Financial Incentives to LSI & Special LSI:
• New Large Scale Industrial Units & Special LSI Units will be eligible for a basket
of incentives as mentioned below:

Taluka/Area Classification Maximum Ceiling of basket of Eligibility Period (Yrs)

incentives as % of FCI
A & B (Only LSI) 25% 7
C 40% 7
D 60% 7
D+ 70% 7
Vidarbha, Marathwada, Ratnagiri, 80% 9
Sindhudurg & Dhule
No industry Districts, Naxalism 100% 9
Affected Areas & Aspirational
Districts
Financial Incentives to LSI & Special LSI:
• The quantum of incentives for food/agro processing units, eligible green energy/bio-fuel
manufacturing units & units carrying out industry 4.0 activity will be 20% over & above
the limits mentioned above & will get 2 more years of eligibility to avail incentives.

• The units applying for incentives & going for commercial production in the 1st year of
policy period will be given full basket of eligible incentives. If the unit applies or goes
into commercial production in subsequent years of the policy period, the ceiling of basket
of incentives will be reduced by 5% each year of delay in going into commercial
production. (This provision will not be applicable to industries in thrust sectors)

• Expansion/Diversification Units:
• Eligible for incentives equivalent to 80% of the incentives admissible for New Units &
the eligibility period will be reduced by one year.
What do Large Scale Industries mean:
• Industrial Units having investment more than Medium manufacturing enterprise as defined under
MSMED ACT 2006 up to FCI of Rs.50 Cr but less than Mega Projects, satisfying the minimum
threshold limit of FCI or Direct Employment shall be classified as Large Scale Industries(LSI)
Taluka/Area Classification Minimum Qualifying Fixed Minimum Direct
OR
Capital Investment (in Cr.) Employment (No. of
People)
A&B 750 1000
C 500 750
D 250 500
D+ 150 400
Vidarbha, Marathwada, Ratnagiri, 100 300
Sindhudurg & Dhule
No industry Districts, Naxalism 100 250
Affected Areas & Aspirational Districts
Direct Employment:

- Shall mean on pay roll of the company covered under Maharashtra

Profession Tax Act, Employees Provident Funds & Misc Provisions
Act & Scheme & for which EPF contribution is paid by the unit.

- It shall not include employees on the pay roll of the contractors.

- The eligible unit shall maintain a record of the employees on its roll
such as Aadhar Card/ Election Voting Card.
Then what does Special LSI mean??
Units having eligible FCI more than Rs.50 Cr. & up to the minimum
investment stipulated for qualifying as LSI unit are termed as Special
LSI and will have separate dispensation for incentives.
Financial Incentives to LSI & Special LSI:
Type of Subsidy To whom Quantum of subsidy
Industrial Promotion All Eligible new & 50% of Gross SGST payable on 1st sale of eligible
Subsidy (IPS): Expansion/Diversification LSI products billed & delivered within Maharashtra
All Eligible new & Expansion Special 40% of NET SGST paid on 1st sale of eligible products
LSI (except units in Grp-A&B areas) billed & delivered within Maharashtra

Exemption from All eligible New Units (except units in Exempt from payment of electricity duty during
Electricity Duty Grp A&B areas) applicable eligibility period
In Grp-A &B areas Only eligible 100% export oriented units, IT/BT
manufacturing units will be exempted from payment of
electricity duty for a period of 7 years.
Waiver of Stamp Duty All eligible New/Expansion Units Exempt from payment of stamp duty for acquiring land
(except units in Grp-A&B areas) (including assignment of lease rights & sale certificate)
& for term loan purposes.
In Grp-A&B areas -IT/BT manufacturing Units in Public IT/BT Parks:100%
-IT/BT manufacturing Units in Private IT/BT Parks:75%
-Large Projects & Mega & Ultra Mega Projects:50% for
first lease/conveyance deed only.
PSI-2019

MEGA & ULTRA MEGA PROJECTS

 Mega Projects/Ultra Mega Projects:

• Industrial Units satisfying the minimum threshold limits of Fixed Capital Investment OR Direct
Employment as below shall be classified as Mega/Ultra Mega Projects:

Type of Taluka/Area Classification Minimum Qualifying Fixed Minimum Direct

Unit Capital Investment (in Cr.) OR Employment
(No. of People)
Mega A&B 1,500 2,000
C 1,000 1,500
D 750 1,000
D+ 500 750
Vidarbha, Marathwada, Ratnagiri, 350 500
Sindhudurg & Dhule
No industry Districts, Naxalism Affected 200 350
Areas & Aspirational Districts
Ultra Entire State 4,000 4,000
Mega
For Mega/Ultra Mega Projects:
➢ Tooling acquired by the Mega/Ultra Mega Project may be located at the premises of various
ancillary units of the Mega/Ultra Mega Project within the state, limited to maximum 40% of the
total Plant and Machinery of such Mega/Ultra Mega Project.

➢ If Mega/Ultra Mega Project wants to support certain Captive Process Vendors who may put up
investment purely and entirely for the purpose of carrying certain processes in the overall
manufacturing process of the eligible Mega/Ultra Mega Project but the said investment will not
qualify for the benchmark for investment criteria to fulfill Mega/Ultra Mega Project status.
However, the same shall be counted for eligible FCI.

➢ Such Captive Process Vendors should be engaged in a part of the manufacturing process (and not
for manufacturing components or independent products) of only one Mega/Ultra Mega Project.

➢ Such Captive Process Vendors are located in the same industrial area or higher classified taluka
where the Mega/Ultra Mega Project is situated.

➢ Such captive process vendors shall not eligible to any benefits under PSI.
Financial Incentives for Mega & Ultra Mega Projects:
• The quantum of incentives & eligibility period for Mega Projects and
Ultra Mega Projects shall be decided by the High Power Committee
under the chairmanship of the Chief Secretary, Government of
Maharashtra on a case to case basis. However, the Cabinet Sub
Committee for Mega Projects, under the chairmanship of the Chief
Minister of Maharashtra will have the powers to sanction customized
package of incentives and even offer special / extra incentives for
prestigious Mega Projects / Ultra Mega Projects, on a case to case
basis with recommendation of High Power Committee.
Conditions for LSI/ Mega/ Ultra Mega Units

• Provided that:
• LSI/Mega/Ultra projects based on employment criteria shall be
required to maintain the qualifying direct employment on roll & in the
premises of the eligible unit throughout the year & 80% of such
employees should be local persons.
• Minimum direct employment prescribed should be created within a
period of 2 years from the date of commencement of commercial
production.
• The investment in captive power plant including solar power plant
shall be considered for determining the qualifying criteria but the same
will not be incentivized. However the investment in captive power
plant will be limited to 20% of total project cost.
PSI-2019

OTHER IMPORTANT CONTENTS IN THE SCHEME

Thrust Sectors
• With a view to steer industrial development towards high tech emerging sectors and generate employment, the State
govt. has identified following thrust sectors. Thrust sector shall mean & include:
i) Electric vehicles
ii) Aerospace & defence manufacturing
iii) Industry 4.0 (Artificial intelligence, 3D printing, Internet of things & Robotics, Nanotechnology, among others)
iv) Integrated Data Centre Parks (IDCP)
v) Textile Machinery manufacturing
vi) Bio technology & Medical & Diagnostic Devices
vii) Agro & food processing (Secondary & Tertiary Food Processing Units)*
viii) Information Technology (IT) & IT Enabled Services (ITeS)
ix) Electronic Systems Design & Manufacturing (ESDM) & Semiconductor Fabrication (FAB)
x) Logistics & warehousing
xi) Green Energy/Bio Fuel Production
xii) Sports & Gym Equipment manufacturing
xiii) Nuclear Power Plant equipment manufacturing
xiv) Mineral/Forest based industries
 Implementing Agencies:

• The implementing Agencies for the purpose of PSI-2019 shall be:

Category of Industrial Units Implementing Agency
Micro & Small Concerned DIC
Medium manufacturing enterprises and small The Regional Joint Directors of respective
industries Region (JDI (MMR))
Special LSI/LSI/Mega projects/Ultra Mega Directorate of Industries, Govt. of Maharashtra
Projects

• The eligible units will continue to remain with the implementing agency which
had issued an EC in the present scheme for the purpose of incentive & other
matters, even if the Eligible unit ceases to be in the said category (Micro, Small
industry etc.) for which EC was issued. However, consequent to
expansion/addition in assets/diversification, if the Gross FCI is exceeding Rs.50
Cr, the implementing agency shall be Directorate of Industries, Head Office,
Mumbai.
Green Industrialization Assistance

Eligible green industrialization units shall be provided a Green

Industrialization Assistance for undertaking measures to conserve water,
energy & environment. Projects covered under the scheme include
waste management systems (including ETP, STP etc.), pollution control
systems/ devices, health & safety systems/devices, water conservation/
harvesting systems/ devices & captive renewable power generation.
Budgetary support from MPCB & Govt. of India’s Scheme will be
considered. A committee under chairmanship of Development
Commissioner (Industries) will approve these incentives.
Re-appraisal of the project/ Restructuring of original Appraisal
of projects under PSI-2019
• Re-appraisal/ re-structuring of the project cost by respective term lending
institution, within the project cost already appraised & accepted by the
implementing agency while issuing EC, prior to cut-off date for making
admissible investment, if duly justified, can be accepted by the implementing
agency.
• In case permission for shifting of assets is granted, a re-appraisal of the project
shall be submitted to the implementing agency for the project at new/relocated
site.
• In case of mega & ultra mega projects the prior approval of department of
industries shall be needed.
PSI-2019

Thank you

CA. NITIN AGRAWAL