Boost For Pune, Pimpri-Chinchwad MSMEs: New Policy Extends Industrial Incentives To Developed Areas

Pune: The state government provides benefits to Micro, Small, and Medium Enterprises (MSMEs) under the Industrial Incentive Scheme. However, since a large part of Pune is industrially developed, most MSMEs in the district were not benefiting from this scheme. With the state government's new industrial policy, which extends these benefits to MSMEs in developed areas as well, thousands of industries in this sector in Pune will now benefit. This will lead to increased industrial growth and job creation in Pune, Pimpri-Chinchwad, and several other talukas.

The state government implements the Industrial Incentive Scheme for industries in the MSME sector. Under this scheme, these industries receive benefits such as interest subsidies, Goods and Services Tax (GST) refunds, electricity tariff subsidies, and stamp duty concessions after their establishment.

However, the eligibility for these benefits depended on the industrial classification of the area where the industry was located. The concessions were highest in industrially backward areas, while the scheme was not applicable at all in developed areas. Now, it has been made applicable.

The government classifies the industrial areas of each district into five categories: 'A', 'B', 'C', 'D', and 'D Plus'. Since most industries in the Pune district fall under the 'A' category, they were not receiving the benefits of the scheme.

Now that they will receive these benefits, it will be useful not only for newly established industries but also for the expansion of currently operating industries. For this, the fixed capital limit for industries in the MSME sector is between Rs. 2.5 crore and Rs. 125 crore.

Industrial Expansion Expected

Responding to the development, Sandeep Rokade, Joint Director of Industries, Pune Division, said, “Since Pune and Pimpri-Chinchwad are industrially developed areas, the Industrial Incentive Scheme was initially not applicable to the MSME sector here. Now, under the new industrial policy, this scheme has been extended to developed areas. This will lead to the expansion of existing industries in the Pune region and an increase in the number of new industries being established.”

Government's Welcome Decision

Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) told Loksatta, “The MSME sector is the backbone of Maharashtra's industrial economy. The government's decision to establish a separate MSME commissionerate and extend the benefits of the industrial incentive grant scheme to MSMEs in Pune is commendable. The effective implementation of this policy must be regularly and transparently evaluated.”