Mumbai: In a major policy twist, the Maha Vikas Aghadi government plans to link a Package Scheme of Incentives — including GST refund — to investors and job creation.
So, a firm pumping Rs 1,500 crore in a project and creating 2000 jobs will get mega project status. Likewise, an investment of Rs 4,000 crore generating 4,000 jobs will get an ultra-mega project status.
These projects will be entitled to benefits under the Package Scheme of Incentives and GST refund, even though less jobs may be created because of automation.
Chief Minister Uddhav Thackeray, who on Saturday reviewed the performance of the Industries Department, has asked its officials and the Maharashtra Industrial Development Corporation to tweak the present policy, so that the investors create the maximum number of jobs, in lieu for GST refund and other financial benefits. This will help promote more labour intensive units in the state.
Industries Minister Subhash Desai told FPJ: “Investments should lead to the creation of more and more jobs. CM Thackeray has asked for necessary changes in the policy.”
The move is significant, especially when the alliance partners Shiv Sena, the NCP and the Congress in their Common Minimum Programme have proposed 80 per cent jobs for locals.
The state industrial policy announced in March 2019 has set an ambitious target of investment of Rs 10 lakh crore and 40 lakh jobs in five years.
An Industries department official explained that in an industrial area category, the minimum threshold investment in a mega project is Rs 1,500 crore or minimum direct employment of 2000.
If the investment of Rs 1,500 crore leads to the creation of 100 jobs due to automation, the investor is still entitled to benefits under the Package Scheme of Incentives and the GST refund.
“However, CM Thackeray and Industries secretary Bhushan Gagrani opined that the investment should be linked to creation of minimum 700 or 1000 jobs to boost sectors which have more labour potential. The industrial policy will be revised and presented to the state cabinet for its approval,” the official informed.
