POLICY SUMMARY I:Industrial, Investment &Infrastructure Policy of Maharashtra- 2006 Preamble Identification of areas where India can become

e a global manufacturing hub. Creation of clusters to achieve economies of scale Emphasis on Special Economic Zones. Industrial Scenario At National Level Promising government policies which led increase in investment up to Rs 739,637 crore Potential employment generation of 2.96 million Projected growth was 9% with a 7.8% growth in IIP during April-December for 2005-06. Policy Objective To attain higher sustainable development, balanced regional development and employment generation through public and private investments in industrial and infrastructural development. Policy Targets Industrial growth by 10%; sector by 12%; employment generation by 20 lakhs by 2010 Policy Validity- 31st March 2011 Strategies Identifying thrust areas and building quality infrastructure Developing areas low on human index and exploitation of local resources Nurturing clusters, preventing industrial sickness, smooth exit options and institutional support Areas identified Infrastructure- Roads, Rail, Ports; Manufacturing-Textiles, Electronics, Agro-based Industries; Mumbai, Pune, Nashik, Aurangabad Quadranglefor infrastructure support; Services-IT services, Retail, Tourism; Policiesa) Agro Processing Policy-Focus on food processing and preservation. Aims at creating more Farm Jobs b) Textile Policy-Creating world class infrastructure, upgrading technology, and providing proper training skills enabling large scale employment, especially for women c) Retail Policy-Setting up malls, addressing retailers concern and creating a conducive environment d) Infrastructure development Policy-Creation of adequate infrastructure through public and private sector participation and addressing the concern of project participant. Promotional and Financial Incentives Simplifying the PSI scheme. Providing money up to 10 lakhs to educated unemployed for starting self -venture

Industry Promotion Subsidy: Applicable to new projects and equal to 25% of any relevant tax. Additional investment in existing SSI by 25% or more, over the Gross Fixed Capital investment Special Incentives for districts coming up low in HDI. Projects with investment of more than Rs 500 Crores and employment generation of more than 100 persons will be termed as Mega Projects. To provide interest subsidy and exemption from Electricity duty to SSI units. A 100% exemption from stamp duties, royalties ,octroi on raw material. Strengthening SME sector by providing subsidies on capital equipment, expenses and patent registration Implementing the following approaches can lead to better functioning:1. Cluster approach for development 2. Establishment of Co-operative Estates 3. Sick units: Revival and Exit New Industrial Township According to article 243Q in the Indian Constitution, creation of Industrial Townships across the state to promote infrastructure facilities and services is undertaken. These areas will be responsible for up-gradation and maintenance of its infrastructure. Marketing Assistance Establishment of Gram Udyog Vasahats of Khadi and Village Industry Establishment of Urban Haat in every revenue division to provide marketing and exhibition facilities to handicrafts and articles made by small village Setting up International Exhibition Centres in Mumbai and Pune through public-private partnerships. This facilitates us to show case the strength of Indian Industrial Agriculture and Service sector. HR Initiatives LMIC-Providing a link between employers and the employees and a support to industries to ensure synergies between the two STI-Offer training on customer handling, communication and other skills. Also provide vocational training. Labour Laws and Procedures Employing contract workers. Work hours increase to 60/week. Night shift allowed to female workers. Flexibility to units exposed to fluctuating markets. Conducting inspection once/year. Single Window Clearance Setting up of a committee at state, district level and for mega projects under specified chairmanship A CAF will evolve for clearances pertaining water and power connection, building plan etc. Preparation of computer software for accessing applications online and giving eclearances

POLICY SUMMARY II:Industrial policy of Maharashtra 2013 Given the experience in the last five years, the GOM have developed the new policy to attract industries to Maharashtra. The objectives of the Industrial Policy, 2013 are: To retain Maharashtras leadership position in industrial investment. To accelerate investment flow to industrially under developed regions To create more employment opportunities The Policy targets include: To achieve manufacturing sector growth rate of 12-13 percent per annum. To achieve manufacturing sector share of 28 percent of state GDP. To create new jobs for 2 million persons. To attract investment of INR 5 lakh core(INR 5 trillion) The validity of the industrial Policy is from 1st April 2013 to 31st March 2018 Some of the major highlights of the policy are: 1. Incentives for Mega Projects - Criteria for qualification is based on investment or employment To the threshold limits specified in the earlier industrial policy, a new category of Ultra Mega Projects have been added which includes projects where investment size is greater than INR 1500 crore or employment is greater than 3000 Naxalism affected areas have been included along with the category of New Industrial development Additional incentives will be provided to project employing minimumrequired to qualify as Mega Project at that location Customized package of Incentives to mega projects and ultra mega projects on case to case basis. Threshold limits for classification of Ultra Mega / Mega projects is are given. Type of Units Taluka/Area Fixed Capital Direct employment classification Investment(in INR Crore) A&B 750 1,500 C 500 1,000 Mega D & D+ 250 500 Industrial Unit Naxalism affected area 100 250 and No Industry districts Ultra Mega Entire state 1500 3,000 Industrial Unit 2. Incentives for Large Projects Industrial promotion Subsidy o Every year, in areas other than A & B areas, the industrial promotion subsidy payable will be calculated at the rate of 60% to 100% of VAT on local sales +CST payable on eligible finished products.

o In areas other than A & B areas, to provide thrust to Food processing sector in the state, eligible units will be granted additional 10 percent incentives and additional 1 year towards eligibility period Energy and water audit o 75 percent reimbursement of the cost of water and energy audit limited to Rs.1 lakh for water audit and Rs 2 lakh for energy audit shall be admissible. o 50 per cent cost of capital equipment required for undertaking measures to conserve water and energy , limited to Rs. 5 lakh each will be granted to eligible units in the state Stamp duty exemption o Eligible large units will be entitled to 100 per cent stamp duty exemption o In A and B areas, stamp duty exemption will be offered only to IT and BT units in IT and BT parks. They will also be eligible for stamp duty exemption for their investment period Electricity Duty exemption o Eligible new units in C.D.D+ Industries Districts and Naxalism affected Area will also be entitled to exemption from payment of electricity duty for tenure equal to the eligibility period. o In A and B areas. Electricity Duty exemption will be offered to 100 percent EOU large scale units and IT/BT units for 7 years. Threshold limit for classification of large projects is as given below: Taluka/Area classification Monetary ceiling as percent of Eligibility admissible Fixed Capital Period (Years) investment A 7 B 7 C 30 7 D 40 7 D+ 50 7 No Industry Districts 70 7 Naxalite Affected Area 80 7 3. Incentives for MSME Projects Industrial Promotion Subsidy o Equal to VAT on local sales + CST payable + 20% to 100% of ITC on eligible finished products. ( In areas other than A areas on annual basis) Power tariff subsidy o Eligible for new units o Located in Vidarbha. Marathwada, North Maharashtra, and Districts of Rigad, Ratnagiri and Sindhudurg in Konkan

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o Extent of Rs. 1/- per unit consumed in above mentioned regions and in areas other than the above (except A areas) to the tune of Rs. 0.50/- per unit consumed o 3 years from the date of commencement of commercial production Interest subsidy @ 5 percent p.a maximum up to the value of electricity consumed and bills paid for that year. Will be admissible.( In areas other than A area) Food processing sector o Eligible units will be granted additional 10 per cent incentives and additional 1 year towards eligible period. Energy and Water Audit 75 per cent reimbursement of cost of water and energy audit Assistance by way of 50 per cent grant limited to Rs.1 lakh for water audit and Rs.2 lakh for energy audit 50 percent cost of capital equipment required for undertaking measures to conserve water and energy, limited to Rs.5 lakh each Additional Incentives Incentives for improving Quality Competitiveness, Research and Development, Technology up gradation and Cleaner production Measures will be continued with suitable modifications Stamp Duty Exemption In addition to incentive listed above, eligible MSMEs will be entitled to 100 percent stamp dutiy exemption within investment period for acquiring land (including assignment of lease rights and sale certificate) and for term loan purposes. In A and B areas stamp duty exemption will be offered only to IT and BT units in IT and BT parks. Electricity Duty Exemption Eligible New MSMEs in C.D .D+. No industries districts and Naxalism affected Areas will be entitled to exemption from payment of electricity duty for tenure equal to the eligibility period. In A and B areas electricity Duty exemption will be offered to 100 per cent Export Oriented MSMEs and IT/BT units for seven years.