PLI scheme for pharmaceutical industries

Production Linked Incentive (PLI) Scheme for Pharmaceutical

The scheme intends to boost domestic manufacturing of identified KSMs, Drug Intermediates and APIs by attracting large investments in the sector and thereby reduce India’s import dependence in critical APIs – PLI scheme for pharmaceutical industries

Quantum of Incentive:

Financial incentive under the scheme shall be provided on sales of 41 identified products for six (06) years at the rates given below:

  • For fermentation based products, incentive for FY 2023-24 to FY 2026-27 would be 20%, incentive for 2027-28 would be 15% and incentive for 2028-29 would be 5%
  • For chemical synthesis based products, incentive for FY 2022-23 to FY 2027-28 would be 10%.

Eligibility

 Support under the scheme shall be provided only to manufacturers of critical KSMs/DIs and APIs registered in India.

  • Eligibility shall be subject to threshold investment in green field projects
  • Eligibility under the scheme shall not affect eligibility under any other scheme and viceversa.

 Target Segments

  Fermentation based KSMs/Drug Intermediates

 1. Penicillin G

2. 7-ACA

3. Erythromycin Thiocynate (TIOC)

 4. Clavulanic Acid

II. Fermentation based niche KSMs/Drug Intermediates/APIs

5. Neomycin

6. Gentamycin

7. Betamethasone

 8. Dexamethasone

 9. Prednisolone

 10. Rifampicin

11. Vitamin B1

 12. Clindamycin Base

13. Streptomycin

 14. Tetracycline III. Key Chemical Synthesis based KSMs/Drug Intermediates

15. 1,1 Cyclohexane Diacetic Acid (CDA)

16. 2-Methyl-5Nitro-Imidazole (2-MNI)

17. Dicyandiamide (DCDA)

18. Para amino phenol IV. Other Chemical Synthesis based KSMs/Drug Intermediates/APIs

19. Meropenem

 20. Atorvastatin

21. Olmesartan

22. Valsartan

23. Losartan

 24. Levofloxacin

 25. Sulfadiazine

 26. Ciprofloxacn

27. Ofloxacin

28. Norfloxacin

29. Artesunate

30. Telmisartan

 31. Aspirin

32. Diclofenac Sodium

33. Levetiracetam

34. Carbidopa

 35. Ritonavir

36. Lopinavir

37. Acyclovir

 38. Carbamazepine

39. Oxcarbazepine

40. Vitamin B6

41. Levodop

Eligibility Threshold Criteria

S. No.. SegmentThreshold Investment
1 Fermentation based 04 KSMs /Drug IntermediatesRs. 400 crore
2Fermentation based 10 niche KSMs / Drug Intermediates / APIsRs. 50 crore
3Key Chemical Synthesis based 04 KSMs /Drug IntermediatesRs. 50 crore
4Other 23 Chemical Synthesis based KSMs / Drug Intermediates / APIsRs. 20 crore
PLI scheme for pharmaceutical industries

subsidy for startup

Start Up scheme and policy

Obective

If it is incorporated as a private limited company (as defined in the Companies Act, 2013) or register as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India. Up to seven years from the date of its incorporation/ registration; however, in the case of Startups in the biotechnology sector, the period shall be up to ten years from the date of its incorporation/registration. If its turnover for any of the financial years since incorporation/ registration has not exceeded Rupees 25 crores. If it is working towards innovation, development or improvement of products or processes or services, or if it is a salable business model with a high potential of employment generation or wealth creation.- subsidy for startup policy Maharashtra

Benefits of Startup India

  1. IPR Benefits – To promote awareness and adoption of IPRs by Startups and facilitate them in protecting and commercializing the IPRs, Startup India provides access to high quality Intellectual Property services and resources, including

Fast-tracking of Startup patent applications:

The patent application of Startups is fasttrack for examination and disposal

 Panel of facilitators to assist in filing of IP applications:

A panel of Facilitators is responsible for providing general advisory on di fferent IPRs as also information on protecting and promoting IPRs in other countries.

 Government to bear facilitation cost:

Central Government bears the entire fees of the facilitators for any number of patents, trademarks or designs that a Startup may file, & Startups only bear the cost of the statutory fees payable.

 Rebate on filing of application:

 Startups are provided an 80% rebate in filing of patents vis-à-vis other companies. This helps them pare costs in the crucial formative years. 50% rebate is also provided in filing of Trademarks vis-à-vis other companie

2. Relaxation in Public Procurement Norms

All Government of India Ministries / Departments / Public Sector Undertakings have authorised to relax norms in all public procurements, subject to meeting quality and technical specifications. Startups are entitle to avail exemption on:

• Prior Turnover and Experience. Earnest Money Deposit. Know more about the government tenders

3. Self-Certification under Labour and Environment Laws

To reduce the regulatory burden on Startups thereby allowing them to focus on their core business & keep compliance cost low, Startups are allow to self-certify their compliance under 6 Labour and 3 Environment laws for a period of 5 years from the date of incorporation.

In respect of 3 Environment laws, units operating under 36 white category industries (as published on website of Central Pollution Control Board) do not require Environment clearance under 3 Environment related Acts for 3 years.

4.Faster Exit for Startups

MCA has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies. An insolvency professional shall appointe for the Startup, who shall be in charge of the company for liquidating its assets and paying its creditors within six months of filing an application in this regard.

5. Fund of Funds for Startups

   To provide equity funding support for development and growth of innovation driven           enterprises, the government has set aside a corpus fund of 10,000 crores managed by SIDBI. The Fund is in the nature of Fund of Funds, which means that the Government participates in the capital of SEBI registered Venture Funds, who further invest in Startups.

6. Tax Exemption for 3 years       

The profits of recognis Startups that are grant an Inter-Ministerial Board Certificate are exemptfrom income-tax for a period of 3 years out of 7 years since incorporation. This fiscal exemption is aim at facilitating growth of business and meeting the working capital requirements during the initial years of operations

7. Tax Exemption on Investment above Fair Market Value

   If a Startup, having certificate from the Inter-Ministerial Board Certificate, receives any consideration for issue of shares that exceeds the face value of such shares, then the aggregate consideration, up to Rs. 10 Crore, receive for such shares that exceeds the fair market value of the shares is exempte from tax.

Eligibility for Startup Registration

  • If a company is form, that company must a private limited company or limited liability partnership.
  • The company should not be more than five years old, and if the total turnover of the company is more than 25 crores, then that company will not be eligible for this scheme.
  • Any company should get approval from the Department of Industrial Policy and Promotion (DIPP).
  • For the company to receive approval from the DIPP, the firm must funded by an incubation fund, angel fund, or private equity fund.
  • Any company or firm should seek a guardian guarantee from the Indian Patent and Trademark Office.

Schemes  for startups

  1. The Venture Capital Assistance Scheme
  2. Support for International Patent Protection in Electronics and & Information Technology (SIP-EIT)

3. Stand-Up India for Financing SC/ST and/or Women Entrepreneurs.

4.     Dairy Entrepreneurship Development Scheme

5.     Multiplier Grants Scheme

6.     Biotechnology Ignition Grant (BIG) Scheme

7.     Sustainable Finance Scheme

8.     Coir Vikas Yojan

9.     Amended Technology Upgradation Fund Scheme (ATUFS)

10.  Central Sector Scheme for Promotion of International Co-operation in AYUSH

11.  Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

12.  Agro Processing Cluster Scheme

13.  Research & Development In Processed Food Sector

14.  Creation / Expansion of Food Processing & Preservation Capacities

15.  Drugs & Pharmaceutical Research

16.  Mega Cluster

17.  Development/Upgradation of Watermills and setting up Micro Hydel Projects

 

 

Startup  Policy

 Maharashtra Startup Policy 2018-2023

Over a period of five years i.e. 2018 to 2023, the Maharashtra State Innovative Start-Up Policy 2018 (the “Policy”) sets out to achieve the following:  Attract angel and seed stage investment of INR 5,000 Cr Develop at least 15 incubators in collaboration with industry and academia  Facilitate incorporation of at least 10,000 start-ups  Create 500,000 direct and indirect employment opportunities

the benefits being provided by the Government of Maharashtra, startups must fulfill the eligibility criteria and should register with the State. Support will be provided to startups across stages i.e. idea, growth, and mature stage. One possibility is to create an organization which may allow different startups to commence operations as an independent vertical and then to spin off after maturity

 

  1. Tax  Holiday

Start up  may   reimbured in lieu  of the  state good  and services tax  paid  by them whenever  system credit  for the same is not  available  to the coustomer of these startup

  • Stamp duty and registration fees

For recognized  incubators or start ups  that wish to  rent space  , 100%  of stamp duty  and registration  fees may  compensated  for first three year  and 50%  for 2nd three year

  • Quality testing assistances

The state may take up  80% of quality testing  costs  incurred  by start ups  at BIS  accredited  faacilities

  • Patent filing  Assistances

To mitigate  the limited  manpower  and resources  at start ups  disposal  the state will  provide  assistance – both financial  and technical  in filling of patent , Trade mark  and design . start up  shall be provide  with an  80%  rebate  in patent filling  costs up to Rs 2 lakh in Indian patent . …… …… For more info click

Guidelines for Production Linked Incentive Scheme ‘National Programme on High Efficiency Solar PV Modules

Guidelines for Production Linked Incentive Scheme ‘National Programme on High Efficiency Solar PV Modules

Objective

a. To build up solar PV manufacturing capacity of high efficiency modules.-

PLI Scheme For Solar Module subsidy for solar PV manufacturing

 b. To bring cutting edge technology to India for manufacturing high efficiency modules. The scheme will be technology agnostic in that it will allow all technologies. However, technologies which will result in better module performance will incentivised.

c. To promote setting up of integrated plants for better quality control and competitiveness.

 d. To develop an ecosystem for sourcing of local material in solar manufacturing

 e. Employment generation and technological self-sufficiency

Manufacturing Capacity:

Preference will given to manufacturers who set up higher capacity plants.

However, in order to qualify for the bid, the applicant manufacturer will have to undertake to set up

a manufacturing plant of minimum 1,000 MW capacity

(1,000 MW each for all individual stages included in the manufacturer’s proposal)

Minimum module performance:

 Manufacturers will also have to fulfill following minimum performance parameters:

Minimum module efficiency of 19.50% with temperature coefficient of Pmax better than -0.30% per degree Celsius Or Minimum module efficiency of 20% with

temperature coefficient of Pmax equal to or better than – 0.40% per degree Celsius

Bidders eligible for PLI:

The bidder manufacturer can be a single company or a Joint Venture/ Consortium of more than one company. However, in case of Joint Venture/Consortium, a partner/company will allowed to tie up their manufacturing capacity (of any stage) with another partner/company for one bid only.

The selection of the beneficiaries will done by the bucket filling method keeping in view the overall PLI limit of ₹ 4,500 crore, and the PLI requirements quoted by the bidders.

The bidder getting highest marks/inter se position will get

PLI amount for five years as quoted by him followed

by 2nd bidder and so on till the PLI amount of ₹ 4,500 crore is exhauste.

Manufacturing units which have availed any benefit under the MNRE’s tender(s) for solar Power Purchase Agreements linked to PV manufacturing or SIPS/ MSIPS programme of Ministry of Electronics & Information Technology (MEITY) will not be eligible for benefits under this programme.

Manufacturing units which have imported capital goods for setting up the module manufacturing facility before the last date of bid submission will not be eligible for participation under the PLI scheme.

Greenfield & Brownfield projects:

Greenfield new solar PV module manufacturing units will be eligible for PLI. Brownfield projects will also allowed to participate subject to the fulfilment of prescribed eligibility criteria for greenfield projects. PLI rate for such Brownfield projects will be 50% of the rate for Greenfield projects.

Calculation of Production Linked Incentive (PLI):

PLI will calculate as per following formula: PLI (₹) to manufacturers = Sales Volume (Wp) × Base PLI Rate (₹/Wp as per position in Performance Matrix mentioned in para 3.7) × Tapering Factor as explained in para 3.7.1

(1.4, 1.2, 1, 0.8, 0.6 for 1st, 2nd, 3rd, 4th & 5th year respectively) × Local Value Addition expressed in fraction of one.

At the time of bidding, the bidders will also have to submit the quantum of total PLI required for the five year period post commissioning of the manufacturing unit. They will calculate PLI requirement for each individual year

Maximum Sales (in MW) covered:

Though a manufacturer can bid for any capacity (MW), the maximum capacity that can awarded, to one bidder under the PLI scheme, is 50% of the bid capacity (capacity which he has promised to set up in his bid)

or 2000 MW, whichever is less, to accommodate at least three manufacturers under the overall envelope of ₹ 4,500 crore.

PLI will given on actual production and sales of high efficiency module by the selecte units. In case, the annual sales (in MW) of a unit is more than the capacity (in MW) awarded to it,

PLI will limited to the sales (MW) equal to the capacity (MW) awarded under the PLI scheme.

Guidelines on Production Linked Incentive (PLI) Scheme for Food Processing Industry

Guidelines on Production Linked Incentive (PLI) Scheme for Food Processing Industry

Objective

The objective of the scheme is to support the creation of global food manufacturing champions promote Indian brands of food products; increase employment opportunities for off-farm jobs, ensure remunerative prices of farm produce and higher income to farmers.

The tenure of the Scheme is six years from Financial Year 2021-22 to Financial Year 2026-27.

Components

The scheme has three broad components.

The first component relates to incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) including millet-based foods, Processed Fruits & Vegetables, Marine Products & Mozzarella Cheese.

The Second component is for incentivising Innovative/ Organic products of SMEs across all the above four food product segments including Free Range – Eggs, Poultry Meat & Egg Products.

The third component relates to support for branding and marketing abroad to incentivise the emergence of strong Indian brands

Eligibility Criteria for different Categories of Applicants

Category-I:
Segments Minimum Sales of All Food Products in 201920 (Rs Crore) Minimum Investment (Rs Crore)Segments Minimum Sales of All Food Products in 2019
RTE/ RTC500100
Processed Fruits & Vegetables250  50
Marine60075
Mozzarella Cheese15010 MTPD Plant-Rs.23 cr
   
Category-II:
Udyog Aadhar/ Udyami Registered;Achieved Minimum Sales of Rs 1 crore during 2019-20 for each of the innovative/ organic products proposed to be incentivised; Applicant for Organic Product shall be registered with APEDA for the organic product proposed to be incentivised
 
Category-III:
Only Indian Brands are covered for selling food products completely manufactured in India;Branding & Marketing shall be undertaken either by the Applicant directly or through its subsidiary or any other Agency.

Rates of Incentives on Incremental Sales

YearRTC/ RTEProcessed F & VMarine Products *Mozzarella Cheese
2021-2210%10%6%10%
2022-2310%10%6%10%
2023-2410%10%6%10%
2024-2510%10%6%8%
2025-269%9%5%6%
2026-278%8%4%4%

Note : 10% Incentive Rate for Value Added Marine products, as specified at Appendix-B for all 6 years. **Base Year for calculation of Incremental Sales would be 2019-20 for the first 4 years. For 5th & 6th years, the Base year would shift to 2021-22 & 2022-23 respectively

Production linked incentive scheme for automobile and auto sector

Production linked incentive scheme for automobile and auto sector

The PLI scheme is launched with the intent to make India ‘Atmanirbhar’ and has the following objectives:  subsidy for automobile sector

  • Encourage domestic manufacturing
  • Promotion of exports
  • Import substitution

Government is reportedly considering strict eligibility criteria for automakers to qualify for financial subsidies under the production-linked incentive (PLI) scheme. The new rules are likely to favour the creation of large manufacturing capacities for global standards in the country.

The ministry of heavy industries and public enterprises along with the commerce ministry are planning to offer sops on the basis of the incremental increase in export revenues from the base year instead of just total revenue from goods shipped in a given year, according to a report in Livemint. Besides, the ministries are also planning to shift the base year to FY19 from FY20.

In order to include export to neighbouring countries, the ministries might reduce “long-distance” sales to 2,500 km from 3,000 km. At present, Maruti Suzuki India Ltd, Hyundai Motor India, and Ford Motor India are the top three passenger vehicle exporters in the country. On the other hand, Bajaj Auto Ltd and TVS Motor are the leading exporters of two-wheelers.

Last year, in November, the Centre announced the PLI scheme to incentivise firms in 10 sectors to drive local manufacturing and improve exports. The automotive sector, which comprises vehicle makers and parts suppliers, will receive subsidies worth Rs 57,000 crore–the biggest chunk–as part of the scheme.

The PLI scheme has set ambitious targets on investment with expectation that PLI would result in additional investment of over Rs 1 lakh crore over a five-year period with potential for additional employment generation of 58.84 lakh jobs.

Auto PLI

Proposed scheme for Auto sector:

 Budget allocation to the Auto sector is expect to be Rs570bn for ramping up manufacturing  by way of various incentive schemes.  

The scheme is expect to have four plans for the auto sector: Global Sourcing Scheme, Vehicle Champion Scheme, Component Champion Scheme and Production-Linked Incentive Scheme.  

The manufacturers are expecte to get a cashback of between 2% and 12% of the incremental· sales revenue and incremental exports revenue. The scheme is expect to rolled out on Dec 31, 2020.

 Eligibility criteria:

  • In the case of vehicle manufacturers: Global group revenue > Rs100bn; Global investment in fixed assets Rs35bn AND Revenue from outside India >= Rs10bn.
  • In case of component manufacturers: Global group revenue > Rs10bn; Global investment in fixed assets Rs3.5bn AND Revenue from outside India >= Rs2bn.

Proposed incentive scheme for auto sector

Budget allocation INR 57,002 Cr for  ramping manufacturing  in india  by way of  various incentive  schemes

Vehical manifacturingGlobal  group  revenue > INR 10,000 croreGlobal investment in fixed assets ( gross block )  of INR 3500 croreRevenue from outside India >=1,000 core
Component manifacturingGlobal  group  revenue > INR 1,000 croreGlobal investment in fixed assets ( gross block )  of INR 350 croreRevenue from outside India >=200 core

Proposed  Incentive scheme for auto Sector

Vehicle champion scheme

Production linked incentive scheme

Global Sources scheme

Component  Champion Scheme

Electronics Manufacturing

Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing

Incentives

4% – 6% Production Linked Incentive for a period of 5 years – PLI scheme for Electronics manufacturing

Target Segments

Mobile Phones & Specified Electronic Components

Tenure

Five (5) years Application Period 4 months initially

Base Year

Financial Year 2019-20

Eligibility

The number of applications allowed per applicant for support under the Scheme shall be restricted to one . Subject to thresholds of incremental investment and incremental sales of manufactured goods

Applicability Incentives applicable from 01.08.2020

Invoice Value:

Unit Price charged on an invoice raised by an applicant on sale of manufactured goods, net of credit notes, discounts or any other adjustments and applicable taxes

Net Sales Turnover

Net Sales Turnover shall mean the Gross Sale Turnover net of credit notes (raised for any purpose), discounts (including but not limited to cash, volume, turnover, target or for any other purpose) and taxes applicable

• Manufacturing: Processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character [CGST Act – 2017]

 Employment:

Jobs which are directly involved in the production process or with related activities beginning from when materials enter a production facility and up until the resultant manufacturing good leaves the production facility. Such employment shall include on-roll, contractual and apprentice workforce in the country only

Domestic Value Addition:

A divided by B A. Net Sales Turnover minus value of non-originating material and services used in manufacturing B. Net Sales Turnover

Non-Originating Material and Services:

Material and Services whose country of origin is other than the country in which that material / service is used in manufacturing and any material / service whose origin cannot be determined

Competent Authority:

Competent Authority under the Scheme shall be defined as per delegation of powers for appraisal and approval of Public Funded Schemes and Projects vide OM No. 24(35)/PFII/2012 dated 05.08.2016 issued by Department of Expenditure, Ministry of Finance or any subsequent modifications thereof

Domestic Company(ies):

Domestic Company(ies) shall be defined as those which are owned by resident Indian citizens as defined in the FDI Policy Circular of 2017. A company is considered as ‘Owned’ by resident Indian citizens if more than 50% of the capital in it is beneficially owned by resident Indian citizens and / or Indian companies, which are ultimately owned and controlled by resident Indian citizens.

Group Company(ies):

Group Company(ies) shall mean two or more enterprises which, directly or indirectly, are in a position to:

• Exercise twenty-six percent or more of voting rights in other enterprise; or

 • Appoint more than fifty percent of members of board of directors in the other enterprise. (As defined in the FDI Policy Circular of 2017)

Eligibility Criteria

1.Eligible companies should be engaged in manufacturing of goods in India as covered under Target Segments.

2. Eligibility shall be subject to thresholds of Incremental Investment and Incremental Sales of Manufactured Goods (covered under Target Segments) over the base year

3. An applicant must meet threshold criteria to be eligible for disbursement of incentive for the year under consideration.

 4. In case an applicant does not meet threshold criteria for any given year, the applicant shall not be eligible for incentive in that particular year. However, the applicant will not be restricted from claiming incentive in subsequent years during the tenure of the Scheme, provided eligibility criteria are met for such subsequent years

Qualification Criteria and Ceiling

Eligibility shall be subject to qualification criteria for applicants under different Target Segments in the Scheme are as defined

Segment Qualification Criteria Ceiling on eligible applicants*Segment Qualification Criteria Ceiling on eligible applicants*Segment Qualification Criteria Ceiling on eligible applicants*
Mobile (Invoice value of INR 15,000 and above)Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 10,000 Crore in the base year5
Mobile – DomesticConsolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 100 Crore in the base year. Applicants under this category can only be Domestic Companies5
Specified Electronic ComponentsConsolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 50 Crore in the base year.10

Sale of Manufactured Goods

Specific Conditions of Incremental Sale of Manufactured Goods (Covered under Target Segments) .

Total Sales of Manufactured Goods covered under Target Segments for such year over the Base Year, irrespective of Invoice Value (whether below or above INR 15,000 in case of Mobile Phones) shall be considered.

Calculation of Incentive

Net Incremental Sales of Eligible Product x Rate of Incentive Where

• Net Incremental Sales shall be Net Sales Turnover of Eligible Product for the period to which claim for disbursement of incentive pertains minus the Net Sales Turnover of said Eligible Product as per baseline

• The incentive amount payable will be subject to ceilings on Net Incremental Sales Turnover on which incentive shall be applicable as determined by EC

 • The annual financial outlay will be appropriated proportionately depending on number of applicants under each target segment. At the end of the year, unappropriated incentive amount resulting from under performance by any applicant(s), will be allocated to the remaining eligible applicants relative to their performance under the Scheme. Illustratively, if there are five (5) eligible applicants under Mobile Phones (Invoice Value of INR 15,000 and above) target segment, the year-wise incentive ceiling per applicant will be 1/5th of the annual financial outlay for the said target segment. 17 Disbursement Process

PLI Scheme – Eligibility Criteria

SegmentProposed Incentive Rate (%)Incremental Investment over Base Year Incremental Sales of Manufactured Goods over Base YearIncremental Investment over Base Year Incremental Sales of Manufactured Goods over Base Year
Mobile (Invoice value of INR 15,000 and above) *Year 1: 6% Year 2: 6% Year 3: 5% Year 4: 5% Year 5: 4%INR 1000 Crore over 4 Years Cumulative Minimum Year 1: 250 Year 2: 500 Year 3: 750  Year 4: 1000  Year 1: INR 4Year 1: INR 4,000 Crore Year 2: INR 8,000 Crore Year 3: INR 15,000 Crore Year 4: INR 20,000 Crore Year 5: INR 25,000 Crore
Mobile – DomesticINR 200 Crores over 4 Years Cumulative Minimum Year 1: 50 Year 2: 100 Year 3: 150 Year 4: 200Year 1: INR 500 Crore Year 2: INR 1,000 Crore Year 3: INR 2,000 Crore Year 4: INR 3,500 Crore Year 5: INR 5,000 Crore
Specified Electronic ComponentsINR 100 Crores over 4 Years Cumulative Minimum Year 1: 25 Year 2: 50 Year 3: 75 Year 4: 100Year 1: INR 100 Crore Year 2: INR 200 Crore Year 3: INR 300 Crore Year 4: INR 450 Crore Year 5: INR 600 Crore

PLI Scheme – List of Specified Electronic Components

 1. SMT components

 2. Discrete semiconductor devices including transistors, diodes, thyristors, etc.

 3. Passive components including resistors, capacitors, etc. for electronic applications

4. Printed Circuit Boards (PCB), PCB laminates, prepregs, photopolymer films, PCB printing inks

5. Sensors, transducers, actuators, crystals for electronic applications

6. System in Package (SIP)

7. Micro / Nano-electronic components such as Micro Electrome chanical Systems (MEMS) and Nano Electromechanical Systems (NEMS)

8. Assembly, Testing, Marketing and Packaging (ATMP) units

Production linked incentive scheme for textile industry

Production Linked Incentive Scheme For Textile Industry

Objective

The ₹10,683-crore scheme covers 10 technical products, 40 man-made items subsidy for textile industries Production Linked Incentive Scheme For Textile

The Textile Ministry is likely to impose caps on the incentive that can claim by a company under

the Production Linked Incentive (PLI) scheme for man-made fiber and technical textiles to ensure that big players do not corner a large part of the funds, according to sources.

“A cap on the maximum amount that can claimed under the PLI scheme by a textile company is likely

to put in place so that a big player can’t take most of the amount

that has earmark for the sector and there is a more even distribution,”

The PLI scheme was launche for 10 sectors in November 2011

to promote domestic manufacturing by providing financial incentives on incremental turnover for five years.

The textile sector has allocated ₹10,683 crore under the scheme which,

the Ministry has decided, will offere for incremental production in 40 identified man-made fibre items and 10 technical textiles products.

“The 40 MMF lines identified for the PLI push are the ones where India’s share in world market is negligible while

the 10 technical textile products are the top globally trad lines,” the source said.

As soon as the Union Cabinet approves the PLI scheme for the textile sector, which is in the last stages of discussion and finalisation, it will be notified by

the Textiles Ministry and the modules for registering interested players will made, the source said.

According to sources in the industry who have been part of the government’s discussion on the contours of the PLI scheme,

the incentive rates offere for the textiles sector is one of the highest (compared to other sectors).

It is likely to fixed at 9 per cent of turnover in the first year for companies with a turnover between ₹100 crore and ₹500 crore and 7 per cent for those above that.

In the subsequent four years it would keep tapering.

Eligibility norms

While the minimum turnover for eligibility under the scheme could be ₹100 crore, it need not be for the specific item for which a company wants to claim PLI.

“In case a textile company is presently engage in production of cotton, woollen or jute products but wants to get into a technical textile item that is covered under the PLI scheme, it can eligible if it meets the minimum turnover criteria through production of the other items.

While the incremental production has to of the item for which PLI is being claime

the applicant has to maintain the level of turnover of the items it was originally manufacturing

,” the source said. To claim incentive under the PLI scheme, the industry will have to get registere with the government.

“The eligibility is for both domestic sale and exports as restricting it to exports would make

the scheme incompatible at the WTO,” the official said.

PLI scheme for textile industry production linked incentive scheme for textile industry

for textile industry PLI scheme for textile industry production linked incentive scheme for textile industry

While the incremental production has to be of the item for which

SCHEME SEGMENTS AND INCENTIVES

Scheme Part- 1:

Any person, which includes firm / company willing to invest a minimum ₹300 Crore in
Plant, Machinery, Equipment and Civil Works (excluding land and administrative building cost) to produce
products of Notified lines, shall be eligible to apply for participation in this part of the scheme

Scheme Part-2:

Any person, which includes firm / company willing to invest a minimum ₹100 Crore in
Plant, Machinery, Equipment and Civil Works (excluding land and administrative building cost) to produce
products of Notified lines, shall be eligible to apply for participation in this part of the scheme

Incremental turnover and Incentive Rate

Incentive under the scheme will be provided on incremental turnover only
as per the rate indicated as under

Scheme Part-1Scheme Part-2
Performance
Year
Incremental turnover on minimum ₹300cr investmentRate of
incentive in
%
Incremental
turnover on
minimum
₹100cr
Rate of
incentive
in %
Year 1
(FY 2024-2025)
₹600 Crore15₹200 Crore11
Year 2
(FY 2025-2026)
25%1425%10
Year 3
(FY 2026-2027)
25%1325%9
Year 4
(FY 2027-2028)
25%1225%8
Year 5
(FY 2028-2029)
25%1125%7

Industrial policy 2019 Maharashtra subsidy for msme industries

Industrial policy 2019 Maharashtra

Policy objectives

  • To retain leadership positions in industrial investment
  • sustain high level of employment generation
  • promote regional balanced environmentally sustainable and inclusive industrial growth

Incentive for micro small and medium enterprises msme

Msme includes units per as per the definition of government of India – msme act 2006 as well as small industries with fixed capital investment of up to INR 50 crores


Incentive componentZone AZone BZOne CZone DZone D+Specified  areasNo of industry area
Eligible period7710101010
Ceiling  as % of FCI304050680100


100 percent exemption within the investment period for acquiring land including assignment of lease rights sale certificate and for term loan

State goods and services tax


Investment promotion subsidy of sgst paid paid by unit on the first sale of eligible product billed and deliver to the same entity within Maharashtra


Electricity Duty exemption

In zone A&B electric ity exemption only to 100 per cent export oriented name and IT/BT units for 7 years
Eligible new name in C  D D D+ , no industries district and naxalism area will be entitled to exemption from payment of electricity Duty for tenure equal to the eligibility period



Power subsidy


Subsidy for eligible unit shall be for 3 year from the date of commencement of commercial production

Unit located in vidharbha marathwada , north Maharashtra and district of Raigad . Ratnagiri and sindhudurgh will be extent of INR 1 per unit consume d

Other areas to the tune of INR .50 per unit consume


Intrest subsidy


Subsidy @ 5 per cent per annum up to maximum value of electricity consumed

Other incentives


Eligible msme unit in agro &food processing green energy biofuel and industry 4.0 shall be granted 20% additional fiscal assistance and two year additional eligibility period shall be applicable



NON fiscal Benefits


Reservation of 20% land MIDC areas LSI are defined as industrial unit satisfing the minimum threshold limits of fixed capital investment or direct investment of direct employment prescribed

Incentive for lagre scale industries

Incentive componenetZone AZone BZOne CZone DZone D+Specified  areas
Minimum FCI(INR)750cr500cr250cr150cr100cr100cr
Minimum direct employmet100750500400300250
Ceiling as % of FCI2540607080100
Eligible period777799

Stamp Duty exemption


100 percent exemption within the investment period for acquiring land including assignment of lease rights  sale certificate and for term loan

In case OF A and B , exemption is given only to information technology and biotechnology manufacturing units in IT and BT parks



State goods and services tax (sgst )


Investment promotion subsidy of SGST paid by unit on the first sale of eligible products billed and delivered to the same entity within Maharashtra. This shall be provided on first cm- first serve basis



Electricity Duty exemption


In zone A& B electricity exemption only 100% export oriented makes and IT /BT units for 7 years
Eligible new names in C, D, D+ no industries  

Other incentives

Eligible msme unit in agro &food processing green energy biofuel and industry 4.0 shall be granted 20% additional fiscal assistance and two year additional eligibility period shall be applicable

Mega and ultra mega project

Industrial units  satisfiying the minimum  threshold  limits of  fixed capital  investment  or direct employment prescribed shall be classifiled  as mega  units /ultra mega units

ParticularZone A & BZone CZone DZone D+Specified areasNo industries areaEntire state
ClassificationMega projectUltra mega
Minimum fixed  capital investment1500 Cr100Cr750Cr500Cr350Cr200Cr4000Cr
Minimum direct employment2000150010007505003504000

Incentives

  • All incentives  on ultra  mega  AAND MEGA unit shall  be offered gross  basis
  • Allocation of MIDC land to mega  project  on priority basis
  • Financial refund/incentive

PMFME-Scheme-1

Maharashtra Start-up Policy-2018

OBJECTIVES

Provide a platform and nurture the entrepreneurial aspirations amongst the citizens of Maharashtra  Empower start-ups to contribute Maharashtra State Innovative Start-up Policy-2018

significantly to Maharashtra’s economic growth and create employment opportunities for all sections of society  Develop robust infrastructure and ease the regulatory framework to spur the development of the start-up ecosystem

Over a period of five years i.e. 2018 to 2023, the Maharashtra State Innovative Start-Up Policy 2018 (the “Policy”) sets out to achieve the following:  Attract angel and seed stage investment of INR 5,000 Cr Develop at least 15 incubators in collaboration with industry and academia  Facilitate incorporation of at least 10,000 start-ups  Create 500,000 direct and indirect employment opportunities

Setting up Innovation Clusters

The GoM would leverage the strength bestowed upon various cities across the State and simultaneously build on it.

Each State of Maharashtra has its own forte like Mumbai is

the financial hub as well as a leader in AVGC segment.

Pune has its strength in Auto & Electronics industry as well as Hardware products, Aurangabad has attracted leading manufacturing industries.

Thus, based on existing and potential regional economic advantages,

urban local bodies and the local industries will work together to nurture sector-specific

start-ups and establish major urban/rural areas as innovation clusters.

Compensation for Stamp Duty & Registration Fees

For recognized incubators or start-ups that wish to rent space/property, 100% of stamp duty

and registration fee may compensated for first three years and 50% for the second tranche of three years

Funding Start-Ups

To ensure seamless and uninterrupted growth of start-ups, adequate funding support will be provided to the start-ups across stages

i.e. early/seed stage, growth stage and mature stage to ensure holistic growth of the entire ecosystem.

Start-ups that would qualify for the eligibility conditions in Maharashtra

and who are registered at the portal will entitled to receive grants and financial assistance.

The State envisages to develop a self-sustaining financial model for the start-ups in Maharashtra.

Fund-of-Funds

A fund-of-funds will established with an initial corpus of ₹100 Crore and a total corpus of ₹500 Crore over a period of four years.

Investments will made in SEBI-registered funds including early stage i.e. angel and seed funds. A professional investment management team will recruited for this purpose.

Certain risks of primary funds may hedged using this fund of funds to cover the cost of funds for concerned start-ups.

Infrastructure Fund

The State will institute an Infrastructure Fund to provide assistance to academic incubators,

CoEs, and tinkering labs to cover capital and operational expenditures in the establishment and/or expansion of facilities.

Special infrastructure like cloud, internet etc. may made available through various service providers.

Crowdfunding

Social entrepreneurs comes with a very different set of problems and hence,

the cost for bringing their product/service into market/doorstep is very high as compared with commercial enterprises.

The social enterprises in India require a huge amount of long-term capital and have long gestation period. The State will provide vital financial support to the Social sector start-ups4 . They may receive grants matching the contributions raised on verified online crowdfunding platforms, up to INR 5 lakhs. The number of individual donors must exceed 100.

Equity Grant Scheme For Farmer Producer Companies (Fpcs)

Equity Grant Scheme For Farmer Producer Companies (Fpcs)

The Scheme

shall address nascent and emerging FPCs, which have paid up capital not exceeding Rs. 30 lakh as on the date of application.

The Equity Grant Scheme enables eligible FPCs to receive a grant equivalent in amount to the equity contribution of their shareholder members in the FPC subject to a maximum of Rs. 10.00 lakh per FPC in two tranche.

Objectives of Equity Grant Fund Scheme

Equity Grant Scheme extends support to the equity base of Farmer Producer Companies (FPCs) by providing matching equity grants. The EGS shall operated by Small Farmers’ Agri Business Consortium (SFAC).

Enhancing viability and sustainability of FPCs Enhancing credit worthiness of FPCs Enhancing

the shareholding of members to increase their ownership and participation in their FPC.

Eligibility Criteria For FPCs

It is a duly registereFPC as define under Part IXA of the Indian Companies Act, 1956

It has raise equity from its Members as laid down in its Articles of Association/ Bye laws.

The number of its Individual Shareholders is not lower than 50 Its paid up equity does not exceed Rs.30 Lakh.

Minimum 33% of its shareholders are small, marginal and landless tenant farmers as defined by the Agriculture Census carried out periodically by the Ministry of Agriculture, GOI. Maximum shareholding by any one member other than an institutional member is not more than 5% of total equity of the FPC.

Maximum shareholding of an institutional member should not be more than 10% of total equity of the FPC.

It has a duly elected Board of Directors (BoD) with a minimum of five members, with adequate representation from member farmers and minimum one woman member.