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This policy Generate fresh investments in the tourism sector to the tune of INR 30,000 crore by 2025 – Tourism policy tourism incentives subsidy for adventure tourism subsidy for hotel

Development of Special Tourism Districts/Zones:

1. The districts of Nagpur, Aurangabad and Sindhudurg will be earmarked as special tourism districts.
2. In addition, the state will notify other special tourism zones/estates as when required.
3. These regions will be given additional incentives and incentive period.
4. In addition, special marketing assistance will be given to them to promote them as major tourism destinations of the state.

Development of Tourism growth corridors

1. Classify the state into separate tourist cities, tourist clusters and tourist corridors which will be promoted through identified themes.

2. Employ a pilot project along a major highway and on its successful returns, replicate the process along five major highways in the state.

Rural Tourism

The state offers a unique tourism proposition through its rural landscape (approx. 55% of the state area). This strategy aims to promote rural tourism as the primary tourism product to spread tourism and its socio-economic benefits to rural and the surrounding regions. This will lead to a balanced and far-reaching growth in the state, thus improving the economic situation at the village level. 

A maximum of 20% of the total land available should be undertaken for construction of dormitories, rooms, and tents; rest of the land should be reserved for cultivation and agricultural activities

Eligible Units

Eligible units that will be covered as a part of this policy are as follows:

1. Hotels, Heritage Hotels, Resorts and Health Farms, Health & Wellness spa and units registered under the Bed and Breakfast scheme of MTDC/DoT.

2. Motels and wayside amenities

3. Apartment Hotels/Service Apartments

4. Water Sports and Amusement Parks

5. Arts and Crafts Villages

6. Golf Courses

7. Camping, Caravanning and Tent Facilities

8. Arial Ropeways

9. Exhibition-cum-Convention Centers

10. Development of Hill Stations – Tourism units

11. Adventure Tourism Projects

12. Houseboats

13. Eco-Tourism Projects

14. Museums and Aquariums

15. Shacks

16. Medical tourism units

17. Projects approved by classification Committee of the Tourism Department of the State Government

New Tourism Unit

A “New Tourism Unit” means a new tourism project set up for the first time by a tourism undertaking satisfying the following conditions:

1. It is not an existing unit.

2. At least one of the Effective Steps is completed on or after1stApril, 2016 for setting of the Unit.

3. 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. – Tourism policy

Eligible Investment

Eligible Investment shall mean and include the investment in the fixed assets [as per Para Nos.5.6.7 and 5.6.8 (a), (b), (c)], acquired at site and paid for within the permissible investment period, limited to the item wise maximum limit (i.e. Land at ready reckoner rate, Land development, Building, Plant and Machinery etc.) as per the approved Project Scheme by the concerned term lending agency or as appraised by the approved agency in case of self-financed projects and accepted by the Implementing Agency.

All projects aimed to promote tourism with a fixed capital investment of a minimum of Rs 500 crore or promising a direct employment generation of 750 anywhere in the state will be categorised as ultra mega projects. – Tourism policy

Maharashtra Tourism Policy Incentives

Mega Project classification and threshold limits

Fiscal incentives to Mega/Ultra Mega projects

	A	B	C	STZ/STD	Ultra Mega project unit
Eligibility Period (in years)	10	10	15	15	20
VAT reimbursement	50% of VAT on local sales less Input Tax Credit or zero whichever is higher	75% of VAT on local sales less Input Tax Creditor zero whichever is higher	100% of VAT on local sales less Input Tax Creditor zero whichever is higher	100% of VAT on local sales less Input Tax Creditor zero whichever is higher	100% of VAT on local sales less Input Tax Creditor zero whichever is higher
Luxury Tax exemption	50%	75%	100%	100%
Entertainment Tax exemption	50%	75%	100%	100%
Electricity duty Exemption	50%	75%	100%	100%
Stamp duty and Registration charges exemption	50%	75%	100%	100%

Fiscal Incentives to Largeunits

	A	B	C	STZ/STD
Eligibility Period (in years)	7	7	10	10
VAT reimbursement	50% of VAT on local sales less Input Tax Credit or zero whichever is higher	75% of VAT on local sales less Input Tax Credit or zero whichever is higher	100% of VAT on local sales less Input Tax Credit or zero whichever is higher	100% of VAT on local sales less Input Tax Credit or zero whichever is higher
Luxury Tax exemption	50%	75%	100%	100%
Entertainment Tax exemption	50%	75%	100%	100%
Electricity duty Exemption	50%	75%	100%	100%
Stamp duty and Registration charges exemption	50%	75%	100%	100%
Non-Agricultural Tax Exemption	Total exemption from Non-Agricultural Tax to all tourism projects owned by MTDC to be continued
FSI	1. Base FSI will be 1.0 for all mega/ultra-mega tourism units. Additional FSI as permissible will be given with an additional premium at ready recknoner rates. This is subject to special restrictions in the zones, as specified by local bodies. 2. 80 per cent of the total area can be permitted for tourism and the remaining 20 per cent for the tourism support activities
Licenses and Clearances	Tourism projects require various licenses and clearances like lodging house license, eating house license, Police permissions, license under the Shops& Establishment Act, and license under the Food & Drug Admin. Act etc. These licenses have to be renewed every year. By this Policy 2016, these licenses/permissions will require renewal every 5 years instead of the present annual renewal.
Additional incentives for Special tourism zones and Special Tourism districts	Additional FSI of up to 50 percent with a premium of the existing ready reckoner rates will be given to all tourism projects in STZs and STDs. This is subject to special restrictions in the zones, as specified by local bodies.  No increase in water charges for a period of 10 years except urban area (i.e. Municipal Councils /Corporations area). However, any actual increase in the cost of operation of these services shall be recovered from the user as per the guidelines issued by the concerned Departments.

Incentives to MSME units

	A	B	C	STZ/STD
Eligibility Period (in years)	5	5	7	7
VAT reimbursement	50% of VAT on local sales less Input Tax Credit or zero whichever is higher	75% of VAT on local sales less Input Tax Credit or zero whichever is higher	100% of VAT on local sales less Input Tax Credit or zero whichever is higher	100% of VAT on local sales less Input Tax Credit or zero whichever is higher
Luxury Tax exemption	50%	75%	100%	100%
Entertainment Tax exemption	50%	75%	100%	100%
Electricity duty Exemption	50%	75%	100%	100%
Stamp duty and Registration charges exemption	50%	75%	100%	100%
Non-Agricultural Tax Exemption	Total exemption from Non-Agricultural Tax to all tourism projects owned by MTDC will be continued
FSI	1. Base FSI will be 1.0 for all mega/ultra-mega tourism units. Additional FSI as permissible will be given with an additional premium at ready recknoner rates. This is subject to special restrictions in the zones, as specified by local bodies 2. 80 per cent of the total area can be permitted for tourism and the remaining 20 per cent for the tourism support activities
Licenses and Clearances	Tourism projects require various licenses and clearances like lodging house license, eating house license, Police permissions, license under the Shops& Establishment Act, and license under the Food & Drug Admin. Act etc. These licenses have to be renewed every year. By this Policy 2016, these licenses/permissions will require renewal every 5 years instead of the present annual renewal.
Additional incentives for Special tourism zones and Special Tourism districts	1. Additional FSI of up to 50 percent will be given to all MSME projects. This is subject to special restrictions in the zones, as specified by local bodies in these districts and zones 2. No increase in water charges for a period of 10 years except urban area (i.e. Municipal Councils /Corporations area). However, any actual increase in the cost of operation of these services shall be recovered from the user as per the guidelines issued by the concerned Department

Eligible units in Annexure – A

Hotels

Hotel projects should have facilities expected of establishments in the 1 to 5 star categories according to the guidelines for hotels of the Department of Tourism, Govt. of India,

Resorts

The Resort project should have a minimum of 20 lettable rooms with attached bathrooms. Unless it is a hill station or a beach or a location, which, in the opinion of the Tourism Project Approval Group (TAG), does not require air conditioning, at least 35% of the rooms should be air conditioned.

Health Farm

There should be at least 20 lettable rooms with attached bathrooms. It should have at least six of the following facilities.

Health Club , Gymnasium Yoga/Meditation Area ,Outdoor Exercise Areas  , Indoor Games ,Outdoor Games , Swimming Pool , Classroom , Jogging Tracks , Horse Riding facility  It should be located on a plot ad measuring at least 5000 sq.m.- Tourism policy

Water sports

Water sports projects should be set up at a beach or, lakeside or, riverside along with a pontoon/jetty. It should offer at least two water sport facilities. Parasailing, water-scooters, hovercraft and water-skiing are examples of such facilities. In addition to investment in boat and outboard motor, it should make an investment of at least Rs.5 lakhs in water sports equipment

Amusement Park

“An Amusement Park should have at least 8 amusement rides. There should be a minimum investment of Rs.50 lakhs in amusement rides/aids. This pertains to the cost of equipment alone. It should have a minimum area of 20000 sq.m.”

Ropeway

The Ropeway should be mechanized and motor driven. The horizontal length may be about 500 meters but it can be slightly less if the location demands so. It should be comfortable for the passengers and free from noise. It should have capacity to carry minimum 200 passengers per hour.

Heritage hotel

“A Heritage hotel should be a palace, a haveli, a darbargrih of any building, built in a traditional style, prior to 1950. The façade, architectural features and general construction should have the distinctive qualities, ambience, and décor consistent with a traditional lifestyle. It should have minimum 10 lettable rooms

Adventure Tourism Projects

“An adventure tourism project should provide required equipment with trained staff to maintain and run the activity. The requisite permissions from local authorities as well as permission/provision from safety angle must to be obtained/made. Minimum facilities like restaurant (wherever required), drinking water supply, staying arrangements (wherever required), toilet etc. should be provided.”- Tourism policy

The government of Maharashtra  consider it necessary  in the public interest  to exempt the consumption of energy in respect of the class  of premises  for the payment of  the electricity  duty payable  under PART – B  of the scheduled A  appended to the Maharashtra  electricity duty  act  2016  

Mega /ultra mega project

Classification of zone	% of electricity duty exemption	Eligibility period in year
A-  Mumbai  Mumbai suburban  district , navi  Mumbai , thane  and pune  municipal  corporation  and pimpri  chinchwad  municipal corporation areas	50	10
B-  all municipal  corporations  (except area mentioned  in above  serial no.  1 in  and special  tourism districts  of sindhudurg Aurangabad  and Nagpur  and special  tourism zone ) and A class  municipalities	75	10
C- all district of Maharashtra (except areas  mentioned in above serial no. 1 and 2 ) and special tourism district	100	15
STZ /STD – district  of sindhudurg , Aurangabad  and Nagpur  and high potential  zones  to be earmarked by Dot	100	15
Ultra mega project unit	100	20

Large project

Classification of zone	% of electricity duty exemption	Eligibility period in year
A-  Mumbai  Mumbai suburban  district , navi  Mumbai , thane  and pune  municipal  corporation  and pimpri  chinchwad  municipal corporation areas	50	7
B-  all municipal  corporations  (except area mentioned  in above  serial no.  1 in  and special  tourism districts  of sindhudurg Aurangabad  and Nagpur  and special  tourism zone ) and A class  municipalities	70	7
C- all district of Maharashtra (except areas  mentioned in above serial no. 1 and 2 ) and special tourism district	100	10
STZ /STD – district  of sindhudurg , Aurangabad  and Nagpur  and high potential  zones  to be earmarked by Dot	100	10

MSME project

Classification of zone	% of electricity duty exemption	Eligibility period in year
A-  Mumbai  Mumbai suburban  district , navi  Mumbai , thane  and pune  municipal  corporation  and pimpri  chinchwad  municipal corporation areas	50	5
B-  all municipal  corporations  (except area mentioned  in above  serial no.  1 in  and special  tourism districts  of sindhudurg Aurangabad  and Nagpur  and special  tourism zone ) and A class  municipalities	75	5
C- all district of Maharashtra (except areas  mentioned in above serial no. 1 and 2 ) and special tourism district	100	7
STZ /STD – district  of sindhudurg , Aurangabad  and Nagpur  and high potential  zones  to be earmarked by Dot	100	7

stamp duty exemption

“New Tourism Unit” or “Expansion of an existing Unit” shall mean the Tourism Unit which is so certified to be such unit by the Maharashtra Tourism Development Corporation Limited, under the Tourism Policy of Maharashtra 2016

Zone	Description of the Areas	Extent of reduction of. Stamp Duty
1	2	Mega/Ultra project	Large project	MSME project
‘A’	Mumbai, Mumbai Suburban District, Navi Mumbai, Thane, Pune and Pimpri-Chinchwad Municipal Corporation areas.	50%	50%	50%
‘B’	All Municipal Corporations (except areas in Zone ‘A’ areas, Special Tourism Districts and A class Municipalties).	75%	75%	75%
‘C’	All Districts of Maharashtra except areas in Zone ‘A’ and ‘B’ and Special Tourism Districts	100%	100%	100%
Special, Tourism Aurangabad and Nagpur. Districts (STD).	Districts of Sindhudurg	100%.	100%	100%
Special Tourism earmarked by DoT. Zones (STZ)	High Potential Zones to be	100%	100%	100%

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The credit Linked Capital Subsidy Scheme CLCSS is an innovative credit product launched by the Ministry of Micro, Small and Medium Enterprises MSME scheme. The primary objective of this scheme is to aid the technology up-gradation of micro and small enterprises, especially in rural and semi-urban areas. 

Duration: The CLCS component of CLCS-TU Scheme will be operational/valid with effect from 01.04.2017, till 31st March, 2020 .

Key Features of the CLCSS

• Under the CLCSS, businesses can avail up to 15% subsidy (with a maximum limit of up to Rs. 1 crore) on investment in eligible machinery. 
• The subsidy of 15% is available only to businesses that have invested in eligible plant machinery by using term loans borrowed from the pre-approved list of PLIs (Public Lending Institutions). 
• Industries that are transforming from small scale to medium scale due to sanction of additional loans under the CLCSS are also eligible for the subsidy.

The Revised CLCSS Scheme

In September 2019, Nitin Gadkari, the Union minister msme announced certain changes to the existing CLCSS scheme. The revised scheme will play a crucial role in increasing the contribution of MSMEs to the GDP from the current 29% to 50% in the next few years. Additionally, it will also help in boosting exports from the MSME sector from the current 40% to 50%. 

The revised scheme offers an up-front subsidy of up to Rs. 1 crore (15% of the investment costs) for purchase of machinery and equipment. 

The Cabinet Committee on Economic Affairs allocated funds worth Rs. 2900 for the CLCSS scheme in February. There is no upper limit on the subsidy disbursal for a year, and all eligible MSMEs can apply for the scheme. 

As per the revised scheme, an additional 10% subsidy is offered to entrepreneurs belonging to SC/ST categories and hailing from the “117” aspiration districts that belong to North-eastern states and other hilly terrains in the country.

Who is eligible for the CLCSS? 

• Micro and small enterprises belonging to the 51 sub-sectors mentioned by the Ministry of MSME are eligible for capital subsidy. 
• The subsidy is available to both existing and new enterprises. 
• The subsidy is available to small and micro enterprises in rural and urban areas. 
• This scheme is available to all micro and small enterprises having a valid UAM number. It can include sole-proprietorships, partnerships, private limited companies including khadi, tiny industries, cottage industries, coir units, village industries and more. 

If you’re looking to upgrade the equipment for your plant or industry, make sure to check out if you’re eligible for this scheme to avail the 15% subsidy. 

Quantum of Subsidy & disbursement:

(i) The scheme is implemented from retrospective date, therefore subsidy should be calculated on the Investment on eligible machineries as per earlier practice. The quantum of capital subsidy would be restricted to 15% (maximum up to Rs.15 lakh) of the eligible investment.

 (ii) The subsidy claims for which the Term loans are sanctioned after date of notification of these guidelines (i.e. 13.08.2019), the subsidy would be 15% of the loan / credit amount or cost of P/M whichever is lower, maximum up to Rs.15 lakh. The ceiling limit of loan to be considered for granting the subsidy under the Credit Linked Capital Subsidy (CLCS) is Rs. 100.00 Lakh. – MSME scheme

Types of units to be covered under the Scheme

i). Existing SSI units registered with the State Directorate of Industries, which upgrade their existing plant and machinery with the state- of -the -art technology, with or without expansion.

ii). New SSI units which are registered with the State Directorate of Industries and which have set up their facilities only with the appropriate eligible and proven technology duly approved by the GTAB/TSC.

Ceiling on eligible loan amount and capital subsidy

The maximum limit of eligible loan under the revised scheme is Rs. 100 lakh. Accordingly, the ceiling on subsidy would be Rs.15 lakh or 15 per cent of the investment in eligible plant and machinery, whichever is lower.

the cost of equipment such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores; MSME scheme

• he cost of equipment such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores & the cost of installation of plant & machinery;
• the cost of research & development equipment and pollution control equipment ( except where these have been approved for specific product/sub sector by the GTAB
• The cost of generation sets and extra transformer installed by the undertaking as per the regulations of the State Electricity Board; (except where gas based generation sets have been approved for specific product/sub- sector by the GTAB)
• the bank charges and service charges paid to the National Small Industries Corporation Ltd or the State Small Industries Corporation;
• the cost involved in procurement or installation of cables, wiring, bus bars, electrical control panels (not those mounted on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant & machinery or for safety measures;
•  the cost of gas producer plants ( except where these have been approved for specific product/sub sector by the GTAB) ;
•  transportation charges (excluding of sales-tax and excise) for indigenous machinery from the place of manufacturing to the site of the factory; charges paid for technical know-how for erection of plant & machinery;
•  cost of such storage tanks which store raw materials, finished products only and are not linked with the manufacturing process; and cost of fire fighting equipment

Products and Industries covered under the CLCSS

Drugs and pharmaceuticals	Glass and ceramic items including tiles	Bio-tech industry	Food processing	Rubber processing including manufacture of tyres
Wooden Furniture	Cosmetics	Machine Tools	Fans and motors	Dyes and Intermediates
Printing Industry	Zinc Sulphate	Steel furniture	Toys	Mineral water bottle
Wires and cables	Auto industry components	Readymade garments	Pencil ingot making industries	Steel rolling
Locks	Paints and varnishes	Sports goods	Agricultural equipment	Forging and hand tools
Bicycle parts	Industrial gases	Poultry, cattle feed and hatchery industry	Gold plating and jewellery	General engineering works
Leather and leather products	Coir products	Common effluent treatment  plants	Welding electrodes	Sewing machine industry
Industry-based on medicinal and aromatic plants	Transformers, coils, chokes, electrical stampings, etc.	Heating elements	Hardware for information technology	Plastic moulded components

For a complete list of the eligible products and industries, refer to the official website of the Ministry of MSME. 

Objective of the Scheme Fisheries

The scheme is launched with the objective to:

• Promote fish farming
• Enhance fish production from the Inland sector
• Increase fish seeds and quality seeds in the country
• Develop hatcheries and brood banks across all the agro-climatic regions of the country
• Generate employment opportunities
• Diversify aquaculture practices
• Provide sustenance to fish farmers –Fisheries

Components of the Scheme

The Ministry has approved the total assistance of Rs.135 Crores to cover all the inland fishery resources available in the country in the form of fresh water, brackish water, cold water, waterlogged areas, alkaline soils for aquaculture and other fishery resources such as reservoirs, ponds, tanks, rivers etc.

The expenses of the developmental activities are shared between the Central and the State Government with the ratio of 75:25 and the scheme covers the following components:

• Development of Freshwater Aquaculture
• Development of Brackishwater Aquaculture
• Development of Waterlogged Areas
• Cold water Fisheries and Aquaculture
• Productive Utilisation of Inland Saline Soil Aquaculture
• Integrated Development of Inland Capture Resources (reservoirs/rivers, etc.)

Development of Freshwater Aquaculture

Description of Item	Rate of assistance
Construction of new ponds	Rs 2.00 lakh/ha in the plain areas. Subsidy @ 20% with a ceiling of Rs. 40,000/ha for all farmers except SC’s/ST’s for whom it will be Rs 50, 000/ha (25%) Rs 3.0 lakh/ha in the hill States/Districts and North-Eastern region. Subsidy @ 20% with a ceiling of Rs 60,000/ha for all farmers except SC’s/ST’s for whom it will be Rs 75, 000/ha (25%)
Reclamation / Renovation of Ponds / tank	Rs 60,000/ha subsidy @20% with a celling of RS 12,00/ha for all farmers except SC’s/ ST’s for whom it will be Rs 15,00/ha (25%)
Cost of inputs	a) Fin fish Culture – Rs 30,000/ha Subsidy @ 20% with a ceiling of Rs 6,000/ha for all farmers except SC’s/ST’s for whom it will be Rs 7,500/ha (25%) b) Freshwater prawn culture – Unit cost Rs 1.20 lakh per ha. Subsidy @ 20% with a ceiling of Rs 24,000/- per ha
Running Water fish culture in hilly areas as well as in plain areas	Rs 20,000/unit of 100 sq meters. The above cost is inclusive of rs 4,000 towards inputs. Subsidy @20% with a celling of Rs 4,000/- unit for all farmers except SC’s/ST’s for whom it will be rs 5,000/unit (25%) celling of 3 units for each farmer in term of admissibility of grant
Integrated Fish Farming	Rs 80, 000/ha. Subsidy @ 20% with a ceiling of Rs 16, 000/ha for all farmers except SC’s/ST’s for whom it will be Rs 20,000/ha (25%).
Aerators/ pumps	50,000/unit of two- 1hp aerators/one ghp diesel pump subsidy @25 % with a celing of Rs  12,500/- for each set of aerators/ pump for all categories of farmers who have reached a level of production of 3000 kg/ha/year. Maximum of two-1hp aerators/one 5hp diesel pump for one hectare water area will be admissible
Freshwater Fish Seed Hatchery	Rs 8 lakh for a fish seed hatchery with 10 million (fry) capacity for the plain areas and Rs 12 lakh for same capacity in the hill States/Districts and NE Region. Subsidy @ 10% with a ceiling of Rs 80,000/- and Rs 1.20 lakh in the plain and hilly areas respectively to entrepreneurs only.
Fish feed units	Small Units- Unit cost Rs 5 lakh with a capacity of 1.2 quintals/day the subsidy would be @20 % with a celling of Rs 1 lakh per unit to entrepreneurs
Training of fish farmers	Stipend @ Rs 100/- per day during training period of 10 days and a lump sum of Rs 100/- towards travel expenses/field visits.
establishment of freshwater prawn seed hatchery	i) Unit cost Rs 30 lakh for a large freshwater prawn hatchery with a minimum capacity of 25 million PL/year this would be one time grant to the state for establishment of hatchery at state level ii) Unit cost is Rs 8 lakh for a small hatchery of 5-10 million PL/year capacity. Subsidy @20 % with a celling of Rs 1.60 lakh to entrepreneurs as one time grant
Establishment of laboratories at State level for water quality and fish health Investigations	Unit cost is Rs 30 lakh (Rs 25 lakh for the construction of building and Rs 5 lakh for equipment, glassware & chemicals, etc.). This would be one time grant to the States. The respective States would meet operational and other recurring cost.
Provision of soil and water testing kits of each FFDA	Unit coast of such soil and water testing kit is rs 30,000 the kits are snctioned once to each FFDA as one time grant
Setting up of integrated units, including hatcheries for ornamental fishes	Unit cost is Rs 15 lakh, which includes hatchery of 5-10 million (fry) capacity. Subsidy @ 10% with a maximum ceiling of Rs 1.50 lakh to all categories of fish farmers.
Transportation of fish / prawn seed	This will be applicable only for the hill states/ districts and north – eastern region subsidy @Rs 20 for 1000 fry transported to all FFDAs not applicable to individual fish farmer
Purchase of Vehicles	50% cost of vehicle for each new FFDA and 50% cost for the replaced vehicle (second vehicle).

 

Development of Brackish water Aquaculture

The component aims at making use of the country’s wide area of brackish water and improves the shrimp culture under the execution of FFDA. It is implemented by Brackish Water Fish Farmers Development Agencies (BFDAs) formed in all the coastal areas and the UTs. The pattern of assistance provided under the component is as follows:

• For effective revamping or erection of brackish water fish farms, assistance of Rs.40,000 per hectare is provided as subsidy for the beneficiaries having land of 2 hectares.
• Training assistance is provided under the Fisheries Training and Extension Scheme for the shrimp farmers by the State Governments through the surveillance centres of Aquatic Animal Health.
• A 100% or compete expenditure is provided by the centre for building the network of expertise diagnostic centres with laboratories for Aquatic Animal Health.
• A single payment of Rs.5 Lakh is provided as a grant by Government for establishing the demonstration centres with enriched training etiquettes.
• The centre extends a 100% or entire expenditure for the Aquatic Quarantine and Inspection Units (AQIU) and its allied units for implanting the inspection and testing methods in-line with the NBFGR (ICAR Institute).

Coldwater Fisheries and Aquaculture

• The State Government delivers a grant of Rs.5 Lakh for the preparation of a resource survey report and feasibility report.
• The State Government grants payment of Rs.5 Lakh for the short-term investigations, breeding or rearing, etc.
• The state government disburses the entire proposal amount for the construction, renovation, extension or remodelling of fish farms.
• A subsidy of Rs.7,000 per unit for a unit cost of Rs.35,000 is allotted for the beneficiaries as the farming units for cold water species at an annual input.
• Subsidy benefits of Rs.8,500 per unit is released for the units under the running water fish culture.
• State Government releases a grant of Rs.10 Lakh per unit for the Feed units
• The state provides a stipend of Rs.100 per day of training for a period of 10 days with Rs.100 towards travel expenses and field visits per trainee.

The state and the centre equally share the cost incurred for the purchase of the vehicle under the scheme.

1. Creative Application of Inland Saline/Alkaline Waters for aquaculture
   • A subsidy of Rs.50,000 per hectare is issued as the cost for construction.
   • The subsidy of Rs.20,000 is issued as the input cost for land with the unit cost of Rs.1 Lakh per hectare.

The state provides a stipend of Rs.100 per day of training for a period of 10 days with Rs.100 towards travel expenses and field visits per trainee.

1. Inland Capture Fisheries (Reservoirs/Rivers etc.)

• As assistance for the Fish Seed Rearing Units, a subsidy of Rs.40,000 is issued to the  beneficiary/State Government/ FISHCOPFED.
• To incur the input cost for the seed, feed, manures, fertilisers, preventive measures, etc., a subsidy of Rs.6,000 is released to the beneficiary/State Government/FISHCOPFED.
• The state provides a Stipend of Rs.100 per day of training for a period of 10 days with Rs.100 towards travel expenses and field visits per trainee.
• A subsidy of Rs.3,000 is provided to the farmers to purchase the nets, boats, crafts and gears.
• Further, the assistance of Rs.1 lakh is allotted by the State Government for the construction of landing centers.
• State provides financial assistance of Rs.2 lakhs per year for the Riverine Fisheries Conservation and Awareness Programmed.

Subsidy for Hydroponic Farming

Among technologies that can potentially influence the future of agriculture and seed industry,hydroponics is one of the most exciting. Hydroponics is basically soil-less cultivation where plants are grown without soil and by providing nutrients to water and roots are submerged in water to grow (soil-less growth of plants and without conventional soil). It uses artificial means to support and nutrient solutions to provide the required nutrition to plants. There are different   categories of hydroponics based on the solution used. -subsidy for Hydroponic Farming

In order to feed the world population rapidly, Hydroponics could be one of the go-to approaches because one  can grow plants rapidly, and in habitats that don’t normally support them for commercial units ( hydroponic) 1000 sqm or above is given by the National Horticulture Board. There is also provision for hi-tech horticulture project credit linked assistance programme by the NHB for 2500 sqm or above.

Advantages

India propose hydroponics as a solution that can change the way horticulture is done there. The advantages of hydroponics include but are not limited to the following:

• Requires no soil
• Enables for the reuse of water
• Provides greater control of nutrients to prevent over nourished crops
• Enables ease of harvesting
• Enables ease of pest management and food safety controls
• Increases food production stability, providing higher yields
• Provides off-season production when market prices are highest-Hydroponic Farming

How hydroponics is done

Hydroponics, is a subset of hydroculture, which is a method of growing plants without soil by using mineral nutrient solutions in a water solvent. Terrestrial plants may be grown with only their roots exposed to the mineral solution, or the roots may be supported by an inert medium, such as perlite or gravel. 

Is hydroponics profitable in India 

India is currently importing more than 85% of its exotic vegetables, creating a growth rate of  15-20% per year. Certainly hydroponics or CEA can help fuel this growth given the farming expertise that exists in India. When the land is already owned, capital costs per acre every 5 years are Rs 30.5 lakhs-Hydroponic Farming

How to get subsidy for Hydroponics

In India, the central and state government have subsidized the capital costs for farmers willing to invest in hydroponics. Exact subsidy applicable is different for each state. Recently Maharashtra government  has provided 50% subsidy to farmers to adopt hydroponics for growing animal fodder-Hydroponic Farming

Similarly subsidy is available for each state separately by National Horticulture board.(NHB)  In order to get the details of their respective states the farmer needs to go to NHB website and search for the subsidies and schemes available at their states and avail the same. 

Commercial Horticulture Development in protected cover on project mode

Crops eligible: a. Flowers: Anthurium, Orchids, Rose, Lilium, Chrysanthemum, Carnation and Gerbera. b. Vegetables: High value vegetables: Capsicum, Cucumber, Tomato Pattern of Assistance Credit linked back-ended subsidy @ 50% of the total project cost limited to Rs 56.00 lakh per project as per admissible cost norms for green houses, shade net house, plastic tunnel, anti bird /hail nets & cost of planting material etc.

Revenue potential

When the land is already owned, capital costs per acre every 5 years are Rs 30.5 lakhs. Operational costs, with tomatoes as the example crop, in 1 acre per year are Rs 9 lakhs and revenue typically averages around 33.5 lakhs. If the land is independently owned the profit potential of 15 lakhs per year is slightly less than if it were leased, averaging around 16.5 lakhs per year.

It’s important to note that in the first year a greenhouse is purchased, 80% depreciation is available under the Indian Income Tax Act to the buyer. 75% bank financing is available through agriculture loans and a 20% subsidy on greenhouses is available from National Horticulture Board (NHB). Thankfully, insurance is also available for portable greenhouses in India

Technology Development and Transfer Scheme – Projects for popularization of identified new technologies/tools/techniques for commercialization/ adoption shall be undertaken through following sub-components of the scheme subsidy for nursery import of planting material subsidy

1. Sub component Setting up of block /mother plant and root stock nursery

This activity is for Setting up Mother Blocks and Bank for Root Stock and Scion / bud stick of higher pedigree for making the same available to commercial nurseries for raising mother trees on their commercial nursery and also for multiplication and sale to farmers

Pattern of assistance:-  Project based – 100% and only through Govt. agency/Public Sector @ Rs.100.00 Lakh /ha for effective nursery area including virus indexing, tissue culture lab et

2. Acquisition of technologies including import of planting material from other countries for evaluation and mass multiplication in order to increase production & productivity of horticulture crops 

This  components aims to acquire technologies either nationally or globally that have been developed in the area of horticulture or which can be commercialized to put for farmers/industry benefit. This will also include assistance for meeting cost of Import of best quality planting material of latest varieties of horticultural crops has been included.

Pattern of assistance: – Rs.50.00 lakh/project. Project based – 100% and only through Govt. agency/ PSUs.

3. Horticulture mechanization is aimed to improve farm efficiency and reduce drudgery of farm work force.

 To promote Farm mechanization and introduce technologically advanced plants & machinery from abroad, NHB will provide assistance for importing new machines in the field operations areas of horticultural crops viz nursery/seedling preparation, post hole digging for planting, inter culture, aeration, earthing, irrigation, plant protection, harvesting, handling, packaging transport etc.

Pattern of assistance: – Rs. 50.00 lakh / machine. 100% of total cost and only through Govt. agency/ Public Sector.

4. Long Distance Transport Solution 

Component has been introduced to facilitate long distance transportation and bulk movement of horticulture products through rail etc.

Pattern of assistance: – Project Based Rs. 2000.00 lakh

5. Product Promotion and Market Development Services- Horti-fairs

• To organize demonstrations of modern scientific techniques / technologies, package of production and PHM practices at suitable locations / areas by the NHB
• To organize demonstrations of improved / high yielding varieties of fruits, vegetables, flowers, ornamental plants etc, by NHB

 Pattern of assistance:- Rs. 25.00 lakh 100% of cost by Central Nodal Agency

6. Exposurev is it of farmers (OutsideState) Purpose of visit

  Pattern of assistance:- Project based as per actual 100% of the cost.

7. Visit Abroad for Government Officers

Awareness for technology up-gradation, product development, product promotion, exploring improved varieties of fruits, vegetables and flowers and market intelligence, shall be in consonance with the WTO commitments and the same would remain as an integrated component as per the objectives of the scheme for the government officers

Pattern of assistance:- 

Rs. 6.00 lakh per participant 100% of air / rail travel and course fee

8. Organization/Participation in Seminar/symposia/workshop for development of horticulture

Technology awareness programme by NHB Seminars/workshop/exhibition etc shall organized at the state, national and international levels for promotion of horticulture.

  Pattern of Assistance

The financial assistance would limited up to Rs.10.00 lakh for International event(3-5 days), Rs.5.00 Lakh for National event, Rs.3.00 lakh for Stale Level event and Rs.0.50 lakh for District Level event- Technology Development and Transfer Scheme

• In case of short duration (1-2 days) seminars, financial assistance would limited to:-
• Rs.1.00 lakh per event for State Level event,
• Rs. 2.00 lakh for National level event and
• Rs 3.00 lakh for International event (for organizations/participation of international event within India). 

9. Accreditation and Rating of Fruit Plant Nurseries

Accreditation system will be based on rating in a scale of single star to five star with appropriate weightage on production system, nursery management practices and quality of planting material produced

 Pattern of assistance:- Rs. 1.00 lakh / nursery 

Finwala providing all type of government subsidy & We ensure that your project get maximum subsidy/grant- Technology Development and Transfer Scheme



Creation / Expansion of Food Processing & Preservation Capacities- The Ministry of Food Processing Industries (MOFP) has launched the Scheme for Creation or Expansion of Food Processing Units (CEFPU) under the guidance of Pradhana Mantri Kisan Sampada Yojana. This scheme aims to provide financial assistance in the form of loan for setting up of new units and for expansion of existing food processing units. In this article- mofpi consultancy consultants for food processing industries subsidy for food processing

Objective :  

The main objective of the Scheme is creation of processing and preservation capacities and modernization / expansion of existing food processing units which will help in increasing the level of processing, value addition and thereby lead to reduction of wastage and enhancement of farmer’s income

Pattern of Assistance :

The scheme envisages financial assistance to food processing units in the form of grant-in-aid as under:

• 35% of the eligible project cost subject to a maximum of Rs. 5.00 crore in General Areas;
• 50% of the eligible project cost subject to a maximum of Rs. 5.00 Crores in North Eastern States including Sikkim and Difficult areas including Himalayan States (Himachal Pradesh, J&K & Uttarakhand), State Notified ITDP areas and Islands.- mofpi

Who are eligible :

1. Central and State PSUs
2. Joint Ventures
3. Farmer Producer Organizations (FPOs)
4. NGOs
5. Cooperatives
6. SHG’s
7. Public and Pvt. companies
8. Limited liability Partnerships
9. Corporate entity
10. Proprietorship firms
11. Partnership firms
12. only one proposal to a family under PMKSY schemes.
13. Family will include all members/ relatives.
14. Net-worth of each Promoter Individually equal or more than proposed promoter’s equity / Contribution before submitting for approval.
15. Methodology of “Net worth” calculation as defined in the Integrated Cold Chain Scheme (ICC) may be adopted.

Ineligible components:

 The following items will not be eligible for calculation of the grant for the unit

(I) Compound wall. (Ii) Administrative Office Building. (iii) Labour quarters for employees/ Workers. (iv) Any other civil work not directly related to the production and processing. v) Cost of land shall not be considered as part of eligible project cost. – mofpi

Ineligible list of plant and machinery:

(i) Fuel, consumables, spares and stores.

(ii) Computers, AC with ducting and allied office furniture.

(iii) Personal Transport vehicles.

(iv) Second hand/ old machines / refurbished machinery.

(v) Expenditure on painting of machinery.

Other ineligible items:

(i) Stationery items. (ii) Pre-operative expenses, consultancy Fee, Margin Money, working capital and

Release of Subsidy :

• 1^st installment after utilization of 50% of Promoter contribution and 50% of TL towards Eligible Project Cost
• 2^nd Installment after utilization of 100% of Promoter contribution and 100% of TL towards

Eligible Project Cost:

Includes the cost of plant & Machinery and Technical civil work including applicable taxes except  for ineligible items as mentioned in paras 3.1 & 3.2 above. Cost of ‘Utilities’ essential for the plant  i.e. Water pipeline, DG set, Transformer, Solar panels, Boiler, Solid waste treatment plant, ETP,  etc. will be considered under eligible project cost subject to restriction of above cost being  maximum 25% of the total project cost.

Finwala providing all type of government subsidy & We ensure that your project get maximum subsidy/grant- Creation / Expansion of Food Processing & Preservation Capacities

Scheme for creation of backward and forward linkages pmkvy scheme subsidy for milk processing plant subsidy for Pack-House Processing plant

Scheme for creation of backward and forward linkages-This Scheme is a sub-Scheme under the umbrella Scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY)  MOFPI subsidy for milk processing plant subsidy for Pack-House Processing plant

Objective :

The objective of the scheme is to provide effective and seamless backward and forward integration for processed food industry by plugging the gaps in supply chain in terms of availability of raw material and linkages with the market. The scheme will enable linking of farmers to processors and the market thereby ensuring remunerative prices for their produce

Pattern of Assistance :

1. 35% of Eligible Project Cost in General Areas
2. 50% of Eligible Project Cost in difficult areas (SC/ST will be considered as difficult areas)
3. Max Cap – 5 Cr
4. Credit Linked not back ended
5. Three Installments – 25%, 40% and 35%
6. Eligible Project Cost – Cost of Plant & Machinery + Technical Civil Work

Who are eligible

The applicants organizations such as Central and state PSUs, / Joint Ventures , Farmer Producer Organization (FPOs)/ NGOs/ Cooperatives / SHGs/ Public and Private companies/ Limited Liability Partnerships, Corporate Entity/ Proprietorship Firms / Partnership Firms, etc.

Release of Subsidy :

• 1st Instalment of 25% After utilization of 25% of Promoter contribution and 25% of TL towards Eligible Project Cost, after site inspection within 8 months from date of approval letter (within 10 months for Difficult)
• 2nd Instalment of 40% After utilization of 1st Instl., 65% of Promoter contribution and 65% of TL towards Eligible Project Cost, after Site Inspection within 14 months from date of approved letter (within 16 months for Difficult)
• 3rd & Final Instalment of 35% After utilization of 2nd Instl. 100% of Promoter contribution, 100% TL, Completion of project, Stats Commercial Operations and after joint inspection, within 18 months from date of issue of approval letter (within 10 months for Difficult)

Eligible sectors :

1. Horticulture,
2. Milk & Milk products
3. Meat, Poultry, Fishery, Marine, Piggery
4. Ready to Eat/ Ready to Food Products
5. Honey, Coconut, Spices, Mushroom
6. Retail Shops for Perishable Food Products

Eligibility Criteria

Final term loan sanction for an amount not less than 20% of  project cost. Infusion of equity of not less than 20% of total project cost (10% in case of North east, Himalayan states, and ITDP Areas and Islands.

Backward Linkage

• Integrated Pack-House (s) (with mechanized sorting and grading line / packing line / waxing line/ staging cold room cold storage, etc.)
• Milk Chilling Centre(s)/Bulk Milk Coolers(s)
• Pre Cooling Unit(s)/ Chillers
• Reefer boats
• Machinery and equipment or minimal processing and/or value additions such as cutting, dicing, slicing, pickling , drying, pulping, canning, waxing , etc.
• Machinery and Equipment for packing and packaging-

Forward Linkage

• Retail chain of outlets to be set up by the processors, and/or organizations with farm level infrastructure under component at above or perishable food products. These would have facilities such as frozen storage/ deep freezers / refrigerated display cabinets/cold room/ chillers/ packing / packaging, etc.
• Distribution center associated with the retail chain of outlets s above with facilities like old room/ cold storage/ ripening chamber.

Transport

• Refrigerated/ Insulated Transport/ Reefer Vans in conjunction with components at (a) and/or (b) above.

Admissible Grant

1. 35% of the eligible project cost for genral areas and non-SC/ST
2. 50% for North-East, Himalayan States, ITDP areas and Islands respectively  or SC/ST- MOFPI

Finwala providing all type of government subsidy & We ensure that your project get maximum subsidy Scheme for creation of backward and forward linkages MOFPI

Under this model, a maximum of 16% return on equity is estimated -subsidy consultants for renewable energy

The Ministry of New and Renewable Energy (MNRE) has modified its guidelines for the development of solar parks and ultra-mega solar power projects.

The program was initiated in December 2014 to facilitate solar project developers to set up projects through a plug and play model.

There were seven models under which this program could be implemented, but the ministry has now added a new model called Ultra-Mega Renewable Energy Power Parks (UMREPPs).

As per the document released by MNRE, any central public sector undertaking (CPSU) unit, state PSUs, state government organizations, or their subsidiaries, can be the solar power park developer under this model. A joint venture between two or more entities can also act as the developer.

The state government will aid in the identification and acquisition of land for the UMREPPs and also with the required statutory clearances.

The land will be allotted to the developers with the condition that the project will be completed within two years (with a provision of extension of one year under extreme circumstances). If the project is not completed within the stipulated time, the state government may take back the allotted land.

Earlier, the MNRE emorandum modifying certain provisions of its solar park program for the CPSUs. The MNRE had stated that under Mode 5A, any CPSU, or special purpose vehicle formed by the CPSU, or government organizations that have land, or the central government could approach the ministry to set up a solar park. Before that, CPSUs were required to be the owner of the land.

The ministry had also stated that private entrepreneurs could develop solar parks, but they would not get any central financial assistance (CFA). They would be entitled to connectivity and long-term access (LTA) from the central transmission utility.

In this latest notice, the ministry further added that a committee of the concerned state government will be set up to facilitate the setting up of the UMREPPs. The committee will also set the one-time upfront charges, and annual operation and maintenance (O&M) charge to be paid by the power developers.

The UMREPPs should not be taken as profit-making activities, and a maximum of 16% return on equity will be allowed, the MNRE notice added.

The state government or any agency designated for the work will be paid a facilitation charge of ₹0.05 (~$0.0006)/kWh of power generated from the projects for the entire period of the power purchase agreement (PPA).

The MNRE has specified that the developer will be entitled to a CFA of ₹2 million (~$26,275) or 30% of the cost of the development, whichever is lower for the development of the internal infrastructure, including the evacuation infrastructure. If the developer has a trading license, they would be entitled to claim a margin of ₹0.07 (~$0.0009)/kWh. This will not apply to projects developed under the engineering, procurement, and construction (EPC) model.

The projects inside the UMREPP s will be developed either through tariff-based competitive bidding or under EPC model, or a combination of both. In case of bidding for the selection of renewable energy developers, the facilitation charge of ₹0.05 (~$0.006)/kWh and the trading margin of ₹0.07 (~$0.0009)/kWh will be paid by the developers.

In March 2019, to address land and evacuation issues in solar park development, the MNRE had modified model 7 and the payment security mechanism of the solar park program.

Previously, it was reported that MNRE had extended  the implementation timeline of 40 GW of solar parks in India. The timeline for the development of solar parks and ultra-mega solar projects totaling 40 GW had been extended from 2019-20 to 2021-22 without any additional financial implications.

A total of 38,964 storage infrastructure projects (Godowns), with storage capacity of 655.48 Lakh MT have been sanctioned across the country under Agricultural Marketing Infrastructure (AMI) scheme. Warehouse Directory New AMI Sub- Scheme of ISAM – Continuation of Scheme . Extension of timelines for Submission of various supervisory returns received by Department of Supervision.- Extension Of Rural Godown NABARD Rural Godown Subsidy Scheme

OBJECTIVES OF THE SUB-SCHEME

Main objectives of scheme include creation of scientific storage capacity with allied facilities in rural areas to meet out various requirements of farmers for storing farm produce, processed farm produce, agricultural inputs, etc., and prevention of distress sale by creating the facility of pledge loan and marketing credit.- NABARD scheme

SUBSIDY PATTERN:

Category	Rate of Subsidy (on capital cost)	50- 1000 MT in Rs./MT	More than 1000 MT and up to 10,000 (in Rs./MT)	Maximum ceiling (Rs. Lakhs)
North Eastern States, Sikkim, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly* areas	33.33%	1333.20	1333.20	133.20
In other Areas
For Registered FPOs, Panchayats, Women, Scheduled Caste (SC)/ Scheduled Tribe (ST) entrepreneurs or their cooperatives**/ Self-help groups	33.33%	1166.55	1000.00	100.00
For all Other categories of beneficiaries	25%	875/-	750/-	75.00

Hilly area is a place at an altitude of more than 1,000 meters above mean sea level

Capital  cost  of  the  project  for  the purpose of subsidy  under the scheme shall be calculated as follows:

• For godowns up to 1000 tonnes capacity
  • North–Eastern States, hilly areas – Rs 1333.20/- per tonne of storage capacity,  Maximum ceiling is Rs 400 lakhs.
  • For Registered FPOs, Panchayats, Women, Scheduled Caste(SC)/Scheduled Tribe (ST) beneficiaries or their cooperatives/Self-help groups – Rs 1166.55/- per tonne of storage capacity, Maximum ceiling is Rs 300 lakhs.
  • For all Other categories of beneficiaries – Rs 875/- per tonne of storage capacity, Maximum ceiling is Rs 225 lakhs.-Extension Of Rural Godown

For godowns exceeding 1000 tonnes and upto 30000 MT capacity

• North–Eastern States, hilly areas – Rs 1333.20/- per tonne of storage capacity, Maximum ceiling is Rs 400 lakhs.
• For Registered FPOs, Panchayats, Women, Scheduled Caste(SC)/Scheduled Tribe (ST) beneficiaries or their cooperatives/Self-help groups – Rs 1000/- per tonne of storage capacity, Maximum ceiling is Rs 300 lakhs.
• For all Other categories of beneficiaries – Rs 750/- per tonne of storage capacity, Maximum ceiling is Rs 225 lak – NABARD scheme

SUBSIDY CEILING

The total subsidy which can be availed of by a promoter for all  projects in a District since inception of the scheme (erstwhile GBY) up to the end of 2019-20 will be restricted to a maximum capacity ceiling of 10,000 MT

if  promoter intends to have more than one project of different type including storage project in the same District he/ she will be eligible for a maximum subsidy up to Rs.75 lakh or Rs. 133.20 lakh as the case may be.

RELEASE OF FUNDS AND SUBSIDY:

Release of Subsidy by DAC&FW to NABARD :

• 50% of the annual budget allocation minus the opening balance at the beginning of the financial year available with NABARD will be released to NABARD by DAC&FW in advance.

• NABARD will release advance subsidy to the FI for keeping the same in a Subsidy Reserve Fund (SRF) account of the concerned borrowers, to be adjusted finally against loan amount. This amount of 50% eligible subsidy would be released by NABARD to the FI on submission of a project profile-cum-claim

• Remaining 50% of the eligible subsidy amount will be released to the FI by NABARD after an inspection and recommendation

ELIGIBLE BENEFICIARIES:

1. For creation of storage infrastructure (Capacity 50 – 5000 MTs) and Non- storage infrastructure
2. For creation of storage infrastructure (Capacity 50 – 10,000 MTs):
3. For development/upgradation of farmer-consumer market and Rural Haats/RPMs

CAPACITY OF STORAGE INFRASTRUCTURE PROJECTS

• The capacity of storage infrastructure projects will be calculated @ 1.8 MT per square meter of floor area for projects having average height of 4.5 meter and above. For storage infrastructure having average height less than 4.5 meters, the capacity will be calculated @ 0.4 MT per cubic meter of storage volume

• The height of the storage infrastructure will be measured from the floor level to the bottom of the truss. In case of storage infrastructure with RCC roof, the height to be considered will be height of the ceiling minus one meter.

c

Foreign Direct Investment (FDI) Policy– The Indian government’s favourable policy regime and robust business environment has ensured that foreign capital keeps flowing into the country. The government has taken many initiatives in recent years such as relaxing FDI norms across sectors such as defence, PSU oil refineries, telecom, power exchanges, and stock exchanges, among others.FDI consultants

Market size

According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI equity inflow in India stood at US$ 456.79 billion during April 2000 to December 2019, indicating that government’s effort to improve ease of doing business and relaxing FDI norms has yielded results.

FDI equity inflow in India stood at US$ 36.79 billion during April-December 2019. Data for 2019-20 indicates that the service sector attracted the highest FDI equity inflow of US$ 6.52 billion, followed by computer software and hardware at US$ 6.34 billion, telecommunications sector at US$ 4.29 billion and trading at US$ 3.52 billion.

During 2019-20, India received the maximum FDI equity inflow from Singapore (US$ 11.65 billion), followed by Mauritius (US$ 7.45 billion), the Netherlands (US$ 3.53 billion), Japan (US$ 2.80 billion) and the USA (US$ 2.79 billion).

On 17 April 2020, India changed its Foreign Direct Investment (FDI) policy to protect Indian companies from “opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 Pandemic“, according to the Department for Promotion of Industry and Internal Trade (DPIIT). While the new FDI policy does not restrict markets, the policy ensures that all FDI investments by entities from countries that share a border with India will now require a clearance from the Centre.

Sector In India –FDI

Pharmaceuticals:

India is a prominent and rapidly growing presences in global pharmaceuticals. It is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and also supplies 62% OF global demand for vaccines. India rank 3^rd worldwide for production by volume and 10^th by value, thereby accounting for around 10% of world’s production by volume and 1.5 % by value

Aviation 

India is the 5^th largest market in terms of aircraft passengers (domestic and international) The Aviation sector in India currently contributes $72 bn to GDP.India aims to become the third-largest aviation market globally by 2020. Indian carriers plan to increase 11% Passenger traffic growth 15.90% Foreign Tourist Arrival growth 3.60 MMT Total freight traffic (MMT) 14.40% Domestic aircraft movement grow

Food Processing :

Worlds largest milk producing nation the processed food market is expected to grow to $ 543 bn by 2020 from $ 322 bn in 2016, at a CARG of 14.6%. also , by 2020, India food and retail market is projected to touch $ 482 bn, 32% in india’s food market 11.60% sharer in total employment 10.70% share in india exports  

Ports & Shipping

India is strategically locatetd on the world’s shipping routes with a coastline of approximately 7,517 km. maritime transport handles around 70% of India’s trading in value terms. The government has also introduces various fisical and non- fisical incentives for enterprises that develop, maintain and operate portrs, inland waterways and shipbuilding in India 699.55 MT Cargo traffic at major ports (2018-19) 2.9% Cargo traffic growth 1,400 Indian fleet strength (no. of vessels – coastal & overseas as on Dec 2018) 1,451.2 MTPA Capacity (2018)

FDI Governments schems for start ups

1. The Venture Capital Assistance Scheme: Ministry of Agriculture and Farmers Welfare Venture Capital Assistance is financial support in the form of an interest free loan provided by SFAC to qualifying projects to meet shortfall in the capital requirement for implementation of the project.
2. Support for International Patent Protection in Electronics and & Information Technology (SIP-EIT): Ministry Of Electronics & Information Technology SIP-EIT is a scheme to provide financial support to MSMEs and Technology Startup units for international patent filing to encourage innovation and recognize the value and capabilities of global IP along with capturing growth opportunities in ICTE sector 
3. Stand-Up India: Small Industries Development Bank of India (SIDBI) Stand Up India Scheme facilitate bank loans between 10 lakh and 1 crore to atleast one scheduled caste (SC) or Scehduled Tribe, borrower and atleast one women per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur. 
4. Single Point Registration Scheme : Ministry of Micro Small & Medium Enterprises The Government is the single largest buyer of a variety of goods. With a view to increase the share of purchases from the small-scale sector

Investments/ developments

Some of the significant FDI announcements made recently are as follows:

• In May 2020, private equity (PE) firm Vista Equity Partners announced investment of Rs 11,367 crore (US$ 1.61 billion) in Jio Platforms for a 2.32 per cent stake.
• In May 2020, PE firm Silver Lake announced investment of Rs 5,655.75 crore (US$ 802.35 million) into Jio Platforms for 1.15 per cent stake.
• In April 2020, Facebook, Inc. announced an investment of Rs 43,574 crore (US$ 6.23 billion) into Jio Platforms for 9.99 per cent stake.
• In January 2020, Amazon India announced investment of US$ 1 billion for digitising small and medium businesses and creating one million jobs by 2025.
• In January 2020, Mastercard announced its plans to invest up to US$ 1 billion in India over the next five years to double its research and development effort in the Indian market.
• In October 2019, French oil and gas giant, Total S.A., acquired 37.4 per cent stake in Adani Gas Ltd for Rs 5,662 crore (US$ 810 million), making it the largest FDI in India’s city gas distribution (CGD) sector.
• In August 2019, Reliance Industries (RIL) announced one of India’s biggest FDI deals with Saudi Aramco to buy a 20 per cent stake in Reliance’s oil-to-chemicals (OTC) business at an enterprise value of US$ 75 billion.

Government Initiatives

• In May 2020, government increased FDI in Defence manufacturing under the automatic route from 49 per cent to 74 per cent.

• In April 2020, government amended existing consolidated FDI policy for restricting opportunistic takeovers or acquisition of Indian companies from neighboring nations.

• In March 2020, government permitted non-resident Indians (NRIs) to acquire up to 100 per cent stake in Air India.

• In December 2019, government permitted 26 per cent FDI in digital sectors.

• In August 2019, government permitted 100 per cent FDI under the automatic route in coal mining for open sale (as well as in developing allied infrastructure like washeries).
• In Union Budget 2019-20, the government of India proposed opening FDI in aviation, media (animation, AVGC) and insurance sectors in consultation with all stakeholders.
• 100 per cent FDI is permitted in insurance intermediaries.

• As of February 2019, the government of India has been working on a road map to achieve its goal of US$ 100 billion worth of FDI inflow.

• In February 2019, the government of India released the Draft National E-Commerce Policy to encourage FDI in the marketplace model of E-commerce. Further, it stated that the FDI policy for E-commerce sector was developed to ensure a level playing field for all participants.

Government of India had been planning to consider 100 per cent FDI in Insurance intermediaries in India to give a boost to the sector and attract more funds.

In December 2018, the government of India revisedforiegn direct investment FDI rules related to E-commerce. As per the revised rules, 100 per cent Foreign Direct Investment FDI was allowed in the marketplace-based model of E-commerce. Also, sales of any vendor through an E-commerce market place entity or its group companies was limited to 25 per cent of the total sales of such vendor.

Road ahead

India is going to be the most attractive emerging market for global partners (GP) investment for the coming 12 months as per a recent market attractiveness survey conducted by Emerging Market Private Equity Association (EMPEA).

Annual FDI inflow in the country is expected to rise to US$ 75 billion over the next five years as per a report by UBS.

The government of India is aiming to achieve US$ 100 billion worth of Foreign Direct Investment FDI inflow in the next two years.

our roles finwala company and consultants providing foreign direct investment