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Policy 1: Industrial Policy

                Objectives and Strategies

1. Retaining Leadership in Industrial Investment
   Maintain and strengthen the region’s leadership position in industrial investment by fostering a highly conducive, business-friendly environment that supports sustainable growth and competitiveness.
2. Development of Sector-Specific Infrastructure
   Establish advanced, state-of-the-art infrastructure tailored to the unique requirements of various industrial sectors, ensuring operational efficiency and scalability.
3. Creation of Industrial Land Banks through MIDC
   Leverage the Maharashtra Industrial Development Corporation (MIDC) to develop and maintain a strategic land bank dedicated to industrial use, facilitating timely project implementation and expansion.
4. Provision of Special Fiscal Incentives
   Offer targeted fiscal incentive packages to high-priority projects, with a particular focus on initiatives involving emerging and advanced technologies.
5. Promotion of Sector-Specific Investments
   Encourage investments through the formulation and implementation of sector-focused policies and promotional initiatives, with emphasis on identified thrust sectors.
6. Strengthening Government–Industry–Academia Collaboration
   Foster effective collaboration between government bodies, industry stakeholders, and academic institutions to drive innovation, knowledge sharing, and long-term growth.
7. Incentivizing Research & Development and Startups
   Promote investment in research, development, and startup ecosystems by introducing supportive incentive schemes that nurture innovation and entrepreneurship.
8. Enhancing Ease of Doing Business (MAITRI System)
   Facilitate a seamless business environment by strengthening ease-of-doing-business initiatives, including the enhancement of Maharashtra’s single-window clearance system (MAITRI) to improve efficiency and transparency.
9. Establishment of State-Level Investment and Export Councils
   Set up dedicated councils at the state level to actively promote investments and boost export activities through strategic guidance and policy support.
10. Promotion of Agricultural Processing
    Encourage the development of agro-processing industries to enhance value addition in agricultural produce, thereby improving farmer income and supporting rural economic growth.

Overall Strategic Vision:
These objectives are designed to reinforce the region’s position as a leading destination for industrial investment by creating a supportive ecosystem that promotes innovation, sector-specific growth, operational efficiency, and ease of doing business.

Policy 2: Package Scheme of Incentives

Eligibility Criteria for Incentives under PSI–2025

Under the PSI–2025 framework, the following categories of industrial units within the Private Sector, Cooperative Sector, State Public Sector, and Joint Sector are eligible for consideration for incentives:

1. Industries under the Industries (Development and Regulation) Act, 1951

Industrial units engaged in activities specified in the First Schedule of the Industries (Development and Regulation) Act, 1951, as amended from time to time, shall qualify for incentives under the scheme.

2. Micro, Small, and Medium Manufacturing Enterprises (MSMEs)

Manufacturing enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006), are eligible to avail incentives under PSI–2025.

3. Information Technology and Biotechnology Manufacturing Units

Information Technology (IT) manufacturing units registered with competent authorities—such as the Directorate of Industries, Maharashtra Industrial Development Corporation (MIDC), Development Commissioner, SEEPZ, or Software Technology Parks of India (STPI)—within the state are eligible.
In addition, biotechnology manufacturing units, as may be notified by the Government from time to time, shall also be considered.

4. Mechanized Food and Agro-Processing Industries

Mechanized units engaged in food and agro-processing across the following sectors are eligible for incentives:

• Dairy processing
• Fruit and vegetable processing
• Grain processing
• Fish, meat, and poultry processing
• Consumer food products, including packaged foods
• Non-alcoholic beverages derived from fruits and vegetables

The PSI–2025 eligibility framework is designed to strengthen industrial development across priority sectors by extending targeted financial incentives. The policy aims to foster innovation, enhance manufacturing capabilities, promote value addition, and create a robust ecosystem that supports sustainable industrial growth.

Policy 3: Textile Policy

Textile Industry Development Initiatives and Eligible Activities

The following schemes and initiatives are proposed to support the comprehensive development of the textile industry across the State:

Co-operative Spinning Mills

The scheme for providing government equity to co-operative spinning mills shall be implemented specifically in cotton-growing districts. It will be applicable only in those talukas where less than 50% of the cotton produced is currently utilized by spinning mills within the same taluka, thereby encouraging local value addition and reducing raw material outflow.

Power Loom Sector

Maharashtra is a leading hub for the power loom industry, with approximately 1.3 million power looms, accounting for nearly 50% of the country’s total capacity. Of these, nearly 80% (around 1 million units) are categorized as plain power looms, highlighting the need for modernization and diversification within the sector.

Eligible Textile Segments and Activities

The following activities are covered under the textile development framework:

1. Cotton ginning and pressing
2. Spinning, silk reeling and twisting, integrated silk parks, synthetic filament production, and yarn texturing, crimping, and twisting
3. Weaving and power loom operations
4. Technical textiles, non-woven products, and non-woven converters
5. Knitting, hosiery, garments, apparel, and made-ups
6. Processing of fibre, yarn, fabric, garments, and made-ups
7. Processing of non-conventional fibres such as bamboo, banana, ghaypat, maize, coir, and hemp
8. Expansion and modernization of existing textile units
9. Establishment of textile parks and processing parks
10. Adoption of energy-efficient technologies and process control equipment across textile sectors
11. Skill development and workforce training initiatives
12. Development of the wool sector, including scouring, combing, spinning (worsted, shoddy, and woollen), weaving, and carpet manufacturing
13. Standalone spinning units
14. Spinning units integrated with downstream processing capacities
15. Manufacturing of viscose filament yarn and viscose staple fibre
16. Independent weaving preparatory units
17. Standalone embroidery units
18. Composite upgradation projects, including modernization of spinning, weaving/knitting, and processing units
19. Multi-activity textile units undertaking two or more operations (excluding composite upgradation)
20. Fully integrated composite textile units

These initiatives aim to strengthen the textile ecosystem by promoting value addition across the entire value chain—from raw material processing to finished goods. The framework emphasizes modernization, technological advancement, sustainability, and skill development, thereby enhancing the competitiveness and growth potential of the textile industry.

Subsidy for CBG Plant in Maharashtra – Comprehensive Guide (PSI–2025)

Aligned with Maharashtra Industries, Investment and Services Policy 2025 (MIISP–2025)

Introduction

With India’s accelerated focus on renewable energy, Compressed Biogas (CBG) Plants have emerged as a critical component of the clean energy ecosystem. Under the Maharashtra Industries, Investment and Services Policy 2025 (PSI–2025), CBG projects are strongly encouraged as part of the Green Energy and Biofuel segment, which continues to be treated as a priority (thrust) sector.

The policy introduces an enhanced incentive framework over PSI–2019, with a stronger emphasis on regional development, sustainability, and large-scale investments. For investors, PSI–2025 offers a highly attractive opportunity to establish financially viable and environmentally impactful CBG projects.

Why Maharashtra is Ideal for CBG Plants under PSI–2025

Maharashtra remains one of the most competitive states for renewable energy investments due to:

• Inclusion of CBG projects under Green Energy / Biofuel Thrust Sectors
• Enhanced capital subsidies and investment-linked incentives
• Higher incentives in D, D+, and special regions (Vidarbha, Marathwada, Aspirational districts)
• Potential for up to 80%–100% of Eligible Fixed Capital Investment (FCI) in select areas
• Additional benefits such as power tariff subsidies, stamp duty exemptions, and employment-linked incentives

This policy framework significantly improves project viability and long-term returns.

Eligibility Criteria for CBG Plants

CBG projects qualify under multiple categories based on scale of investment:

• MSME Category
  Projects with relatively smaller investment thresholds, benefiting from simplified compliance and higher incentive ratios
• Large Scale Industries (LSI)
  Projects with higher capital investment, eligible for structured incentive packages
• Mega and Ultra-Mega Projects
  Large infrastructure-scale CBG plants with customized incentive packages approved by state-level committees

All categories are eligible for incentives; however, location and project structuring play a critical role in determining benefit realization.

Location-Based Incentives (Key Factor)

PSI–2025 continues the five-tier taluka classification system, which directly influences subsidy levels:

• Group A & B (Developed) – Lower incentives
• Group C (Developing) – Moderate incentives
• Group D (Less Developed) – High incentives
• Group D+ (Least Developed) – Very high incentives

Special High-Incentive Regions

• Vidarbha and Marathwada
• Aspirational districts
• Naxal-affected areas
• No-Industry Districts (NID)

These regions may qualify for maximum benefits up to 100% of FCI, making them the most attractive for CBG investments.

Subsidy Structure for MSME CBG Plants (PSI–2025)

1. Capital Investment Incentive

• Base incentive ranging from 20% to 40% of eligible FCI
• Higher caps depending on region: 

2. Additional Thrust Sector Benefits

As CBG falls under Green Energy:

• Additional incentive benefits (over base limits)
• Extended eligibility period for benefits
• Priority approval and policy support

3. Power Tariff Subsidy

• ₹1/unit in Vidarbha, Marathwada, North Maharashtra, and select Konkan districts
• ₹0.50/unit in other regions
• Applicable for 3–5 years

4. Stamp Duty Exemption

• Up to 100% exemption in Group C, D, D+, and special regions
• Also applicable in select sectors even in developed zones

5. Electricity Duty Exemption

• Available for eligible units based on location and policy guidelines

6. Employment-Linked Incentives

• Additional benefits linked to job creation, improving overall project returns

Incentives for Large and Mega CBG Projects

Large Scale Industries (LSI)

• Incentives linked to investment size and SGST contribution
• Structured subsidy basket depending on location
• Additional benefits in priority sectors like renewable energy

Mega / Ultra-Mega Projects

• Customized packages approved by: 
• May include: 

Illustrative Subsidy Potential

Note: Actual incentives depend on sector classification, project size, and compliance with policy provisions.

Eligible Fixed Capital Investment (FCI)

Eligible Components

• Land acquisition and site development
• Civil construction and infrastructure
• Biogas digesters and pipelines
• Gas purification and compression systems
• Storage, bottling, and distribution infrastructure
• Electrical installations and utilities
• R&D and pre-operative expenses (within limits)

Non-Eligible Components

• Vehicles
• Non-core movable assets
• Certain restricted installations not covered under policy

Application Process (Simplified)

Pre-Implementation Stage

• Land acquisition or lease
• Statutory approvals (MPCB, registrations, etc.)
• Preparation of DPR (Detailed Project Report)
• Application through MAITRI / Directorate of Industries

Post-Commissioning

• Commencement of commercial operations
• Application for Eligibility Certificate (EC)

Claim Process

• Periodic submission of claims with financial and operational documentation
• Compliance with production, employment, and reporting requirements

Best Regions for CBG Plant Setup (PSI–2025 Perspective)

High-Subsidy Zones

• Gadchiroli, Chandrapur, Yavatmal
• Hingoli, Washim, Nandurbar
• Aurangabad, Jalna, Beed (Marathwada)

High-Potential Regions

• Ratnagiri and Sindhudurg (Konkan)
• Dhule and Jalgaon (North Maharashtra)
• Select Vidarbha districts

These locations offer a combination of maximum subsidies and strong biomass availability, critical for CBG plant success.

Conclusion

The PSI–2025 policy significantly strengthens the business case for CBG plants in Maharashtra by combining high capital subsidies, location-based incentives, and sector-specific benefits.

Key advantages include:

• Substantial capital support (up to 80%–100% of FCI in select regions)
• Reduced operational costs through energy subsidies
• Strong policy backing for renewable energy projects
• Improved project IRR and reduced payback period

With proper planning, location selection, and compliance, CBG plants under PSI–2025 can deliver high financial returns alongside sustainable environmental impact, making them one of the most attractive investment opportunities in the renewable energy sector.