Financial Incentive of Oxygen making units

anufacturing plants

Maharashtra Government has approved a special financial incentives package for industries setting up new oxygen manufacturing plants

Units set up in Vidarbha, Marathwada, Dhule, Nandurbar, Ratnagiri and Sindhudurg regions shall be eligible for incentives up to 150 per cent of their eligible fixed capital investments and units set up in the rest of Maharashtra shall be eligible for up to 100 per cent general incentives – subsidy for Oxygen plant subsidy for new oxygen manufacturing plants

The government will also give a refund on gross SGST, stamp duty, electricity duty and unit subsidy of power cost for five years, interest subsidy for MSME units with a fixed capital investment of up to Rs 50 crore, also a special capital subsidy for units producing 25 MT to 50 MT of oxygen

Eligibility

MSME up to fixed capital investment of Rs. 50 crore and start production before 31.3.2022

Application to government should be made before 30.6.21 to get eligible under this scheme

Financial Subsidy benefit

Area	Subsidy on investment amount%
Vidharbha Marathwada Dhule Nandurbar Ratnagiri	150%
Any other area	100%

Additional Capital Subsidy:

Districts	Production capacity	% of subsidy	Maximum limit
Vidharbha, Marathwada, Dhule, Nandurbar, Ratnagiri and Sindhudurg	25 MT to 50 MT	20%	Rs. 10 crore
50 MT and above	20%	Rs. 15 crore
Other areas	25 MT to 50 MT	10%	Rs. 5 crore
50 MT and above	10%	Rs. 10 crore

Period to claim Subsidy

Type of entity	No. of years
25 MT to 50 MT per day capacity	9 years
50 MT and above	12 years
MSME of FCI up to Rs. 50 crore	7 years

Fixed capital cost:

• Land
• Building,
• Plant and Machinery including manifold, LMO, transport tankers, cylinders for oxygen filling and refilling
• Other assets

Subsidy reimbursement mechanism

• 100% SGST (Gross base)
• 5% interest paid on term subject to maximum electricity paid
• Electricity duty exemption for period of benefit
• Stamp duty exemption on purchase of land, bank loan, lease
• In addition to above Rs. 2 per unit for 5 years electricity rate concession