Psi 2007

Chapter III
District Industries Centre and Its Scheme
Govt. of Maharashtra is one of the first States implementing

Package Scheme of Incentives for decentralisation of industries.
Scheme is proven as most effective for industrial
decentralisation Government involves the Chamber of
Commerce & Industries, Industrial.Organisations while framing
the policies. Govt. has simplified the procedural Rule &
Regulations while framing the policy and classified whole State
in 6 categories like A,B,C,D,D+ & No Industry Dist. as per the
Industrialdevelopment so far achieved.
Latur dist. is categorised as D+ zone and eligible up to 50% and

30% subsidy against the total fixed capital investment, done by
the Micro / Small & Medium / Large Scale units respectively.
Besides this, other incentives like Stamp duty/Electricity duty
exemption, Royalty refund, Interest subsidy for Textiles. Special
incentives for quality up gradation are also admissible.
3.1 Package Scheme of Incentives for Industries in
Maharashtra:
In order to encourage the dispersal of industries to the less
developed areas of the State, Government has been giving a
Package of Incentives to New / ExpansionUnits set up in the
43 |Role of DIC in Employment Generation and Its Impact on Jalna and Aurangabad Districts.
developing region of the State since 1964 under a Scheme
popularly known as the Package Scheme of Incentives.
The Package Scheme of Incentives, introduced in 1964, was

amended from time to time. The last amended Scheme,
commonly known as the 2001 Scheme is operative from the 1st
April, 2001 to 31st March, 2007.
The State has declared the new Industrial, Investment,

Infrastructure Policy 2006 to ensure sustained industrial growth
through innovative initiatives for development of key potential
sectors and further improving the conductive industrial climate in
the State, for providing the global competitive edge to the State’s
industry. The policy envisages grant of fiscal incentives to
achieve higher and sustainable economic growth with emphasis
on balanced Regional Development and EmploymentGeneration
through Greater Private and Public Investment in industrial
development.
The Package Scheme of Incentives 2007 which were

implemented on 1st April 2007 outlines the eligibility criteria,
quantum of incentives and monitoring mechanism for
administering the incentives.
3.2 Coverage under the 2007 Scheme:

1. The following categories of Eligible Industrial Units in the Private
Sector, State Public Sector/ Joint Sector and the Co-operative
Sector but not in the Central Public Sector will be considered for
incentives under the 2007 Scheme;
2. Industries listed in the First Schedule of the Industries
(Development and Regulation) Act, 1951, as amended from time
to time
3. Manufacturing Enterprises as defined in the MSMED Act, 2006.
4. Information Technology (IT) units registered with Directorate of
Industries or MIDC or Development Commissioner (SEEPZ) or
STPI in the State,
5. Poultry
6. Cold Storages and Agro Industries,
7. Package Scheme of Incentives for Industries in Maharashtra
8. Biotechnology (BT) units as specified by Government from time
to time, which are outside the purview of any registering
authority mentioned above. In the case of poultry, only capital
expenditure on land, building and equipment will be considered
eligible for incentives.
3.3 Classification of Areas:
For the purpose of the 2007 Scheme, the classification of the

areas of the State shall be as indicated below.
a) Group A: comprising the developed areas, viz. Mumbai
Metropolitan Region(MMR) and Pune Metropolitan Region
(PMR).
b) Group B: comprising the areas where somedevelopment has
taken place.
c) Group C: comprising the areas, which are less developed than
those coveredunder Group B.
d) Group D: comprising the lesser-developed areas of the State not
covered underGroup A/ Group B/ Group C.
e) Group D+: comprising those least developed areas not covered
under GroupA/Group B/Group C/Group D
f) No Industry District: Not covered under Group A / B/ C/ D & D+
The detailed talukawise classification of the areas of the State
made accordingly has been indicated in Annexure I to this
Resolution.
3.4 Scheme Implementing Agencies:
The Implementing Agencies for the purpose of the 2007 Scheme

is The Joint Director of Industries (Mumbai Metropolitan Region)
[JDI (MMR)] inrespect of Mumbai and Mumbai Suburban
Districts and concerned District Industries Centre (DICs) for the
Micro & Small Manufacturing Enterprises as specified in
theMSMED Act, 2006 and activities as specified under the
provision of Para 1.1 (iii to vi) wherein investment in equipments
at par with Micro & Small ManufacturingEnterprises.
3.5 Jurisdiction of Industries under DIC:
(a) The eligible unit will continue to remain with the JDI (MMR)
or DIC which had issued an Eligibility Certificate (EC) in favour
of the Eligible Unit, for the purposes ofincentives and other
connected matters, even if the Eligible Unit ceases to be a
Micro& Small Manufacturing Enterprises or exceeds the
investment ceiling prescribed forMicro & Small Manufacturing
Enterprises. In other words, even when an Eligible
Micro & Small Manufacturing Enterprises graduates to Medium

manufacturingPackage Scheme of Incentives for Industries in
Maharashtra enterprises/Large Scale Sector, the Eligible Unit
shall continue to remain with the JDI (MMR) / DIC, which issued
the EC in favour of the Unit.
Where an Eligible Unit has been issued an EC under any of the

Schemes prior tothe 1993 Scheme by aRegional Development
Corporation (RDC), it will be coveredfor benefits under the 2007
Scheme according to its status as Micro &
SmallManufacturingEnterprises or Large Scale Industry (LSI)
consequential tonew/expansion/diversification project. It
shallaccordingly file its application with theconcerned
Implementing Agency.
An Eligibility Certificate under the 2007 Scheme will be issued

by the ImplementingAgency afterascertaining that the eligible
unit has complied with\ the provisions ofthe Scheme and has
commenced its commercial production. The EC will be
issuedwith effect from the date of commencement of commercial
production by the EligibleUnit. The date ofcommencement of
commercial production will be determined by theUnit supported
by the relevant extract of the excise register or, in case excise is
notapplicable by the first sale bill is issued by the unit in respect
of such production oras may be permitted by Government of
Maharashtra in respect of Mega Projectproposals. For the
purpose of the EC, the date of commencement of
commercialproduction will be deemed to be the first day of the
month following the month inwhich such production has
commenced. The Implementing Agency will send a copyof the
EC to the agency supplying power and to the concerned
Inspector.
3.6 Micro & Small Manufacturing Enterprises,
Medium manufacturing Enterprises /LSI & Mega
Projects:
I. Micro, Small and Medium Manufacturing Enterprises as defined

in the MSMED Act,2006.
II. LSI Units / Enterprises having the investment more than medium
manufacturing enterprises under MSMED Act, 2006.
III. Mega Projects: Industrial Projects with investment more than
Rs.500 Crores or generating employment for more than 1000
persons in A & B area or investment more than 250 Crores or
generating employment for more than 500 person in rest of
Maharashtra. Package Scheme of Incentives for Industries in
Maharashtra Page 4 However, Industrial Projects with
investment of more than Rs. 100 Crores or generating
employment for more than 250 persons coming up in low human
development district as mentioned in Annexure II will qualify as
Mega Project. Note:
The Mega projects claiming the benefits based on employment
criteria will have to employ the qualifying number of employees
throughout the year and 75% of such employees should be local
persons.
3.7 Earlier Scheme:
'Earlier Scheme' shall mean and include:

a. The 1964 Scheme outlined in the Government Resolution,
Industries and Labour Department, No. IDL-7064/IND-I, dated
the 25th September, 1964.
b. The 1969 Scheme outlined in the Government Resolution,
Industries and Labour Department No. IDL-7069/IND-I, dated
the 2nd April, 1969.
c. The 1973 Scheme outlined in the Government Resolution,
Industries and Labour Department, No. IDL-7073/34605/IND-I
(B) dated the 23rd October, 1973.
d. The 1976 Scheme outlined in the Government Resolution,
Industries, Energy and Labour Department, No. IDL-
7076/6212/(5)/IND-8, dated the 18th January, 1977.
e. The Special Capital Incentive Scheme outlined in the
Government Resolution, Industries, Energy and Labour
Department, No. IDL- 7076/48287/(295)/IND-8, dated the 17th
September, 1977.
f. The 1979 Scheme outlined in the Government Resolution,
7079/(2043)/IND-8, dated the 5th January, 1980 read with the
Department, No. IDL-7082 / (3559) / IND-8 dated the 5th July,
1982.
g. The 1983 Scheme outlined in the Government Resolution,
1082/(4077)/IND-8, dated the 4th May, 1983 read with the
Department, No. IDL-1088 / (6612) / IND-8 dated the 25th
March, 1988 and the Government Resolution, Industries, Energy
and Labour Department, No. IDL- 1087/(6245)/IND-8 dated the
25th July, 1988.
h. The 1988 Scheme outlined in the Government Resolution,
1088/(6603)/IND-8, dated the 30th September, 1988 read with
the Government Resolution, Industries, Energy and Labour
Department, No. IDC-2188/ (11324)/ IND-14 dated the 8th
November, 1988, the Government Resolution, Industries,
Energy and Labour Department, No. IDL-1088/ (7018)/IND-8
dated the 31st January, 1989 and the Government Resolution,
1088/(7056)/IND-8 dated the 22nd February, 1989,
i. The 1993 Scheme outlined in Government Resolution,
1093/(8889)/IND-8, dated the 7th May, 1993 as amended from
time to time, and Package Scheme of Incentives for Industries in
Maharashtra Page 5 x) The 2001 Scheme outlined in
Department No. IDL-1021/(CR-73)/IND-8, dated 31st March,
2001 as amended from time to time.
3.8 Effective Steps:
Effective Steps shall mean and include:

1. Effective possession of land / shed / gala by an Eligible Unit. If
the rental / leased period are less than operative period then
there should be a provision of automatic extension of the
agreement for further period which should be equivalent to
operative period of the eligible unit.
Explanation: Effective possession of land means physical
possession with registered deed with clear title documents & / or
registered lease deed in case of rental / lease of land / premises.
2. Registration in respect of Firm / Company / Trust / Society / Co-
operative Society. However, in respect of Partnership Firm only
evidence of execution of a Partnership Deed and filing of a
requisite application with payment of necessary registration fees
with the Registrar of Firms will be necessary.
3. Enterprises Memorandum / Letter of Intent / Registration for IT
units from Directorate of Industries or MIDC / Letter of Intent
from the Government of India and / or permission from the State
Government for setting up / shifting of the Unit, if such
permission is required to be obtained.
4. A copy of the Industrial Entrepreneur’s Memorandum (IEM)
along with a copy of its acknowledgement in the case of a LSI
Unit not covered under the licensing provisions of the Industries
(Development & Regulation) Act, 1951 or letter of intent, which
is covered under license provision of IDR Act.
Explanation: Based on the documentary evidence produced by
the Eligible Unit, the Implementing Agency shall determine the
date on which the Effective Steps are completed, subject to such
directions as the Government may issue from time to time.
3.9 Existing Unit:
An Existing Unit shall mean and include:

a. A Unit which has been set up and is in production on or any time
prior to the date of issue of the G.R. whatsoever, or
b. A Unit which has been granted an EC or availed of any
incentives under any of the Earlier Schemes, or
c. A Unit which has filed a valid application for grant of an EC
under the 2001.Scheme with any of the Implementing Agencies
on or before 31st March 2007.
3.10 Expansion / Diversification:
An Existing / New Unit in any of the areas covered under Group

“B”, Group “C”, Group “D”, Group D+, or No Industry District
which creates on or after the date of Package Scheme of
Incentives for Industries in Maharashtra Page 6 issue of this
G.R., an additional fixed capital investment for additional
production / manufacturing facilities for manufacture of the same
product / products as of the existing /new unit for Expansion or
different products, diversification only if it satisfies the following
conditions, namely :-
i) Such Expansion /Diversification should provide for additional
Fixed Capital Investment by non-micro and small manufacturing
enterprises exceeding Rs.5 Crores or by micro and Small
manufacturing enterprises exceeding Rs.100 lacks by way of
additions to the production / manufacturing facilities;
ii) The said additional Fixed Capital Investment should exceed 25
per cent of the Gross Fixed Capital Investment of the Existing /
New Unit immediately prior to setting up of the additional
production facilities; investment as on the last of previous
financial year for expansion / diversification of the existing unit.
iii) In the case of Expansion or Expansion-cum-Diversification but
not mere Diversification “per se”; the said additional Fixed
Capital Investment should result in increase of existing installed
capacity by at least 25 per cent; and
iv) Such Expansion / Diversification should increase the
employment in the nonsupervisory category at least to the extent
of 10 per cent of the pre expansion/ diversification level of such
employment and 80 percent of such additional employment
should be out of local population. Note: The eligible unit claiming
benefits under Expansion / Diversification shall be required to
maintain separate record of production for such expansion. In
case, however, maintaining the separate record is not possible,
the benefits for such eligible units shall be available in the ratio
of additional fixed capital investment to the total gross fixed
capital investment.
3.11 Finished Product:
Finished product shall mean and include the item/s of

manufacture by the Eligible Unit as considered under the project
scheme approved by the concerned term lending agency and /
or by the Implementing Agency, together with by-product /scrap
which may get generated as incidental to and during the main
production activity. Explanation: The units will be allowed
inclusion of related items (i.e. same line of finished product
mix/same finished product range / category) freely during the
eligibility period. However the incentives for included products
will be available prospectively.
3.11.1 Fixed Assets:
The term Fixed Assets shall mean and include:

i) Land / area in effective possession for a minimum further period
equivalent to operative period prescribed under the scheme and
as required for the project.
ii) Building, i.e. any built-up area used for the Eligible Unit including
administrative building, residential quarters, industrial housing
and accommodation for all such facilities as are required for the
manufacturing processes.
iii) Plant and Machinery, i.e. Tools and equipment including
handling and haulage equipment or tools as are necessarily
required and exclusively used for sustaining the working of the
Eligible Unit.
Package Scheme of Incentives for Industries in Maharashtra
iv) The cost of development of the location of the Eligible Unit, such
as fencing, construction of roads and other infrastructure
facilities which the Eligible Unit has to incur under the project.
v) Installation charges and pre-operative expenses capitalized.
vi) Technical know-how including cost of drawings and know-how
fees.
vii) The amount paid to the Electricity Distribution Company for
supply of power to the Eligible Unit, or to the Maharashtra
Industrial Development Corporation
viii) (MIDC) for development of infrastructure for the Eligible Unit, or
to any other Government agency for similar purpose.
ix) For Mega Project -
a) The Tooling acquired by the Mega Project may be located at the
premises of various ancillary units of the Mega Project within the
State limited to maximum 40% of the total plant and machinery
of the Mega Project.
b) If Mega Project want to support certain captive process vendors
who may put up investment purely and entirely for the purpose
of carrying out certain processes in the overall manufacturing
process of the Mega Project, the investment made by such
captive process vendors would also qualify for being counted
towards the fixed capital investment of the Mega Project subject
to the following conditions–
(b.1) Such Mega Project shall furnish a list of such captive
process vendors which it want to support.
(b.2) Such captive process vendors in the same industrial area
or higher classified Taluka where the Mega Project unit is
situated ( e.g. if the mega project is located in B area, then the
captive process vendors should be from the same classified
area or from C, D, D+ area or No Industry Districts ).
(b.3) Such captive process vendors should be engaged in a part
of the manufacturing process (and not components or
independent products) of only one Mega Project unit
(b.4) Such captive process vendors shall not be entitled to any
benefits under Package Scheme of Incentive though it is putting
up investment in its own name in a backward area. Explanation
– The above definition of fixed assets at Sr. No.
3.11.2 New Unit:
A New Unit shall mean a Unit which is set up for the first time by
an entity in the Private Sector / Co-operative Sector / State
Public Sector / Joint Sector in any Taluka where there is no
Existing Unit set up by the said entity provided that the Unit
satisfies the following conditions:
a. It is not an Existing Unit.
b. At least one of the Effective Steps is completed on or after
date of this G.R. for setting up the Unit.
c. It is not formed as a result of re-establishment, mere change
of ownership, change in the constitution, reconstruction or
revival of an Existing Unit.
Explanation- The incentives available to a New Unit under the
2007 Scheme shall, however, is available to units which get
established as result of purchase of assets of Existing / Defunct /
Closed / Sick Units subject to and to the extent mentioned in
Annexure III to this Resolution.
3.11.3 Period of Eligibility:
The period of eligibility applicable to an Eligible Unit will be as

per paras 5.1, 5.2, 5.3, 5.5, 5.6 and 5.9 and shall be computed
from the date of commercial production as contained in the EC
and depending on the nature and location of the Eligible Unit,
during which the incentives will be available to the Eligible Unit
subject to fulfilment of the conditions of the 2007 Scheme except
in respect of “Mega Project” where eligible period will be as, has
been approved by “High Power Committee” or “Infrastructure
Sub Committee”
Example: For example, an Eligible New Micro & Small

Manufacturing Enterprises located in D area has obtained EC
and its date of commencement of commercial production is
XXXX. The Eligible unit will be entitled to Industrial Promotion
Subsidy at the rate of (a maximum of) 40% of its eligible
investment for (over a period of) 8 years (of the) EC period. The
unit will also be entitled to octroi refund in the form of grant
restricted to 100% of the admissible fixed assets for a period of
9 years and exemption from payment of electricity duty for a
period of 15 years. In addition, if the unit is Textile unit in Micro &
Small Manufacturing Enterprises it will be entitled to interest
subsidy for a period of 5 years subject to a ceiling of Rs. 20
lakhs.
3.11.4 Procedural Rules:
'Procedural Rules' shall mean and include the rules as laid down
under Government Resolution, Industries, Energy and Labour
Department, No.IDL-7079 / 95227/(2540)/IND-8, dated the 11th
August, 1980 as amended from time to time. In case of any
conflict, the provisions of this Govt. resolution shall prevail.
3.11.5 Sick Unit:
A 'Sick Unit' shall mean and include an Micro & Small

Manufacturing Enterprises so considered and certified by the
Directorate of Industries, or Medium Manufacturing Enterprises /
LSI Unit so considered by the Board for Industrial and Financial
Reconstruction (BIFR) and Co-operative unit’s / Enterprises as
certified by Commissioner of Co-operation, State of
Maharashtra.
Year- 'Year' shall mean the financial year, i.e. 1st April to 31st
March.
3.12 GENERAL PROVISIONS:

3.12.1 Application for Eligibility:
1. An application for eligibility under the 2007 Scheme shall be filed
to the implementing agency by an Eligible Unit only after it has
taken all the Effective Steps but not later than the 31st March,
2011. It shall be supported by documentary evidence in regard
to completion of the Effective Steps.
2. For claiming eligibility under the 2007 Scheme, new Eligible Unit
shall commence the commercial production and also acquire the
fixed assets at site and paid for it within three years if it is for
Micro & Small Manufacturing Enterprises, within four years if it is
Medium Manufacturing Enterprises / LSI units / Enterprises and
five years if it is Mega Project except in respect of those “Mega
Projects” where extra period has been approved by “High Power
Committee” or “Infrastructure Sub Committee” from the date of
submission of application as determined by the implementing
agency and as mentioned in Para-4.1.(1). The assets acquired
beyond the stipulated period will not be considered eligible for
incentives and delay in Commencement of production will entail
proportionate curtailment of incentives.
3. If an Eligible Unit has filed an application with the Implementing
Agency on or before the date of this G.R. after completion of the
Initial Effective Steps for incentives under 2001 scheme, but
where the applicant fails to complete all the Final Effective
Steps latest by 31st March 2008 shall be automatically
considered under PSI-2007. However, the incentives applicable
to such an eligible unit shall be at the scale under the 2001
Scheme or 2007 Scheme, whichever, is lower except in respect
of those “Mega Project” where customised package has been
approved by “High
Power Committee” or “Infrastructure Sub Committee”
4. An application for eligibility shall be submitted to the
Implementing on or before the date of commencement of
commercial production. If there is any delay, the period and
entitlement will be curtailed proportionately. 4.2 Time limit for
commencement of production in respect of Valid application
under earlier schemes: The units which have filed valid
applications under PSI 1988, PSI- 1993 and PSI-2001 scheme,
such units should start commercial production on or before 30th
September, 2007, on or before 31st March, 2008 and on or
before 31st March, 2009 respectively. The unit failing to start
production within the stipulated time will be disqualified and will
not be entitled to the Incentives under any of the incentive
schemes.
3.12.2 Claim for Incentive:
No right or claim for any incentives under the 2007 Scheme shall
be deemed to have been conferred by the 2007 Scheme merely
because the applicant Unit has fulfilled the conditions of the
2007 Scheme. The incentives under the 2007 Scheme cannot
be claimed unless an EC has been issued under the 2007
Scheme by the Implementing agency and the Eligible Unit has
complied with the stipulations/conditions of the EC. The
Implementing Agency shall issue EC to the Eligible Unit within
two months of the unit complying with the stipulations of the
2007 Scheme.
3.13 Promotional and Financial Incentives:
3.13.1 Industrial Promotion Subsidy: (IPS)
A. New Micro & Small Manufacturing Enterprises, Medium

Enterprises / LSI (including IT/ BT units) : New projects, which
are set up in these categories in different parts of the State, will
be eligible for Industrial Promotion Subsidy (IPS). The quantum
of subsidy will be linked to the Fixed Capital Investment.
Payment of IPS every year will be equal to 25% of any Relevant
Taxes paid by the eligible unit to the State or to any of its
departments or agencies. Ceiling as % of Fixed Capital
B. Expansion units: Existing Micro & Small Manufacturing
Enterprises, Medium Enterprises / LSI units making additional
investment to the extent of 25% or more over the Gross Fixed
Capital investment, as on the last date of the previous financial
year, for expansion, diversification will also be eligible to get the
Industrial Promotion Subsidy equivalent to 75% of the incentives
admissible for new units. The admissible period for availing the
subsidy will be reduced by one year in the respective category
and area. Explanation: The Zero VAT Units will be eligible for
getting employment based incentive as proposed for low HDI
districts in the form of 75% reimbursement of expenditure on
account of contribution towards Employees State Insurance
(ESI) and Employees Provident Fund (EPF) Scheme for a
period of 5 years However the quantum of incentives for these
units will be limited to 20%, 30%, 40%, 50%, 60% of FCI in “B”,
“C”, “D”, “D+”, No Industry District respectively.
3.13.2 Interest subsidy:
All new eligible Micro & Small Manufacturing Enterprises in

textile, hosiery, knitwear and readymade garment sector will be
eligible for interest subsidy in addition to Industrial Promotion
Subsidy. The Interest Subsidy will be payable only on the
interest actually paid to the Banks and Public Financial
Institutions on the term loan for acquisition of fixed capital
assets. The amount of interest subsidy will be effective rate of
interest (after deducting interest subsidy receivable any
institution / under any Govt. of India scheme or 5 % p.a.
whichever is less).
3.13.3 Exemption from Electricity Duty:
Eligible new units in C, D, and D+ areas and No-Industry

District(s) will be exempted from payment of Electricity Duty for a
period of 15 years. In other parts of the State, 100% Export
Oriented Units (EOUs), Information Technology (IT) and Bio-
Technology (BT) units will also be exempted from payment of
Electricity Duty for a period of 10 years. Necessary Notification
under the provision of the Electricity Duty Act 1958 will be issued
separately by Energy Department.
3.13.4 Waiver of Stamp Duty:
New as well as units undertaking Expansion/ Diversification will

be exempted from payment of Stamp duty up to 31st March
2011 in “C, D, D+ Talukas and No Industry Districts. However, in
A and B areas, stamp duty exemption would be available as
given below:
• BT and IT units in public Parks : 100%
• BT and IT units in private Parks : 75%
• Mega Projects : 50%
Necessary Notification under the provision of the Bombay Stamp
Act 1958 will be issued separately by Revenue & Forest
Department.
3.14 Royalty Refund:

All eligible units, new as well as units undertaking expansion in
Vidarbha region will be eligible for refund of royalty paid on
purchase of minerals from mine owners within the State of
Maharashtra for a period of five years from the date of
commencement of commercial production.
3.14.1 Refund of Octroi / Entry Tax in lieu of Octroi:

a) An eligible unit, after it goes into commercial production,
will be entitled to refund of Octroi duty / Entry Tax (in lieu
of Octroi), account based cess or other levy charged
instead of or in lieu of Octroi payable and paid to the local
authority on import of all items required by the eligible unit.
This incentive will be admissible in the form of a grant
restricted to 100% of the admissible fixed capital
investment of the eligible unit for a period 5 / 7 / 9/ 12
years respectively in the B / C / D / D+ areas. In respect of
No Industry District areas, however, the period will be 15
years.
b) The period of eligibility for refund of the Octroi / Entry Tax

in lieu of Octroi, account based cess or other levy charged
instead of or in lieu of Octroi shall be from the date of
commencement of commercial production.
3.14.2 Strengthening the Micro, Small and Medium

Manufacturing Enterprises :
The followings are the incentives to promote quality

competitiveness, research and development and technology
upgradation:
• 5% subsidy on capital equipment for technology up
gradation subject to maximum of Rs.25 lacs
• 50% subsidy on the expenses incurred for quality
certification limited to Rs. 1 Lakh
• 25% subsidy on cleaner production measures limited to
Rs.5 Lakhs
• 50% subsidy on the expenses incurred for patent
registration limited to Rs. 5 Lakh
Explanation:
A Committee under the Chairmanship of Secretary (Industries)
will decide the eligibility and sanction the above incentives.
3.14.3 Additional Incentives:
The eligible Micro & Small Manufacturing Enterprises coming up

in Industrial Clusters / Parks to be notified by the State
Government and in identified thrust areas i.e Agro based
Industries, Textile, Auto & Auto Components, Electronics
Products, Pharmaceuticals, Gems & Jewellery, Information
Technology, I.T. enable Services and Bio-technology will be
eligible for the IPS applicable to the one step higher incentive
category under clause 5.1 Package Scheme of Incentives for
Industries in Maharashtra Page 13.
Explanation:
A Committee under the Chairmanship of Secretary (Industries)
will finalise / decide the clusters / parks in above categories.
3.14.4 Special Incentives for Units coming up in the low

Human Development Index Districts:
New units setting up facilities in notified districts (Annexure-II)

and employing at least 75% local persons as defined in the
Employment of Local Persons Policy will be offered 75%
reimbursement of expenditure on account of contribution
towards Employees State Insurance (ESI) and Employees
Provident Fund (EPF) Scheme for a period of 5 years. However
these benefits will be limited to 25% of FCI. The amount of
reimbursement will be paid annually based on minimum
statutory limit subject to the condition that the unit has paid its
contribution towards ESI & EPF on the due dates.
3.14.5 Mega Projects:
The quantum of incentives within the approved limit will be

decided by the High Power Committee under the chairmanship
of Chief Secretary, Government of Maharashtra. The
Infrastructure Committee under the chairmanship of the Chief
Minister of Maharashtra will have the power to customize and
offer special / extra incentives for the prestigious Mega Projects
on a case to case basis.
3.15 MONITORING AND REVIEW:
(a) Monitoring and Review of the Fixed Capital Investment and

Production activities of the Eligible Unit- With a view to
monitoring the production activities of and the establishment of
Fixed Assets by the Eligible Unit in relation to the incentives
available under the 2007 Scheme, and ensuring that the two
match during the period of eligibility and also thereafter during
the operative period of the agreement entered into by the
Eligible Unit, the following procedure is laid down.
(i) The Eligible Unit shall submit a report duly signed by its
authorized representative covering information and details
regarding production and sales, inDICating the period of
stoppage of production and/or closure of the Unit, if any, with
reasons therefore, addition to the Fixed Capital Investment,
disposal of Fixed Assets, and changes in the constitution of the
Eligible Unit.
(ii) The Eligible Unit shall also submit to the Implementing
Agency, within a period of 9 months from the close of every
year, a certified true copy of the audited annual statement of
accounts and Balance Sheet for the said year.
(iii) The Implementing Agency shall be entitled to call for any
information and details for a shorter period even prior to the
close of the year. The implementing Agency shall independently
examine the position from time to time in order to ensure that the
incentives drawn/availed of are within the ceilings specified
under the 2007 Scheme or under the relevant earlier Scheme,
as the case may be.
(b) Failure on the part of an Eligible Unit to submit any of the

above information / documents within the specified time shall
tantamount to breach of the provisions of Package Scheme of
Incentives for Industries in Maharashtra Page 14 the 2007
Scheme entailing suitable action as provided under the
Procedural Rules, including action to cancel the EC, or
premature recall of and immediate recovery of the incentives
drawn / availed.
(c) The Implementing Agencies shall, as far as possible, ensure

that the Eligible Unit and relevant agency for supply of power,
and the Electrical Inspector are kept informed of the continuance
or discontinuance of the EC during the tenure in accordance
with the Procedural Rules.
(d) If and when the Eligible Unit reaches the relevant ceilings
prescribed in the EC in the matter of drawal of the refund of
octroi prior to expiry of the EC period, or contravenes any of the
conditions there under, the Implementing Agencies shall take
prompt action to cancel the EC.
3.16 D.I.C. AURANGABAD:
Synonymous with the world famous heritage sites of Ajanta and

Ellora Caves, Aurangabad is a city still uniquely steeped in
tradition, yet taking its tentative steps to words the new
economy. Part of the original Nizam state of Hyderabad,
Aurangabad along with the six other districts of Marathwada
were merged with Maharashtra after the 1960 reorganization of
states, by virtue of having a major Marathi speaking population
There is evidence to believe that Aurangabad was developed as

a trading hub four centuries ago. It lies on a major trade route
that used to connect north-west India’s sea and land ports to the
Deccan region.
3.17 INDUSTRY:
The city was a major silk and cotton textile production centre. A
fine blend of silk with locally grown cotton was developed as
Himroo textile. Much of the silk Industry has vanished over time,
but some manufacturers have managed to keep the tradition
alive. Paithani silk saris are also made in Aurangabad. The
name of this cloth is derived from Paithan town. In 1889 a
cotton-spinning and weaving mill was erected in Aurangabad
city, which employed 700 people. With the opening of the
Hyderabad-Godavari Valley Railways in the year 1900 several
ginning factories were started. In the Jalna alone there were 9
cotton-ginning factories and 5 cotton-presses, besides two
ginning factories at Aurangabad and Kannad, and one oil-press
at Aurangabad. The total number of people employed in the
cotton-presses and ginning factories in the year 1901 was 1,016.
Until 1960, Aurangabad languished as a city, remaining as
industrially backward. In 1960, the region of Marathwada was
merged with Maharashtra. This was the time
when the industrial development of the Marathwada region

began, propelled through designated backward area benefits.
And it was only when the Maharashtra Industrial Development
Corporation (MIDC) began acquiring land and setting up
industrial estates that it began to grow. Aurangabad is now
classic example of efforts of state government towards balanced
industrialization of state.
Some of the well known names are: Videocon, Garware, Ajanta

Pharma, AMRI, Glenmark, Lupin, wipro, orchid pharma,
Endurance systems, Rucha Eng, Indo German Tool Room,
Ceekay daikin Ltd, Cosmos Films, NRB bearings, Hindalco-
Almex Aerospace, Can-pack India, Varroc, Dagerforst ,
FriogoriFico Allana, Nath Seeds.
Many firms have their Manufacturing bases in Aurangabad in the

sectors of automotive and auto components pharmaceuticals
and breweries, consumer durables, plastic processing,
aluminum processing, agriculture and biotech Among
Pharmaceutical there is Recombinant Insulin Manufacturing
plant of Wockhards ( Wockhardt Biotech Park ) in Aurangabad,
which is Largest Biopharmaceutical plant in India. Aurangabad
also has 5 star hotels like ITC Welcomgroup’s The Rama
International, The Ajanta Ambassador, The Taj Residence, The
Lemontree (formerly the president Park) and the Aurangabad
Gymkhana, Vits etc.
The Shendra, Chikalthana and Waluj MIDC Industrial Areas are

prominent industrial zones on the outskirts of the city, with
various major multinational groups having set up manufacturing
or processing plant in and around the city.
3.18 LOCAL ARTS:
3.18.1 Paithani Textiles:
The Paithani saris from Paithan are considered to be

priced possession by one and all. One can get an opportunity to
witness this age old art of weaving Paithani saris. The yarn used
is of pure silk and the zari or gold threads drawn from pure gold.
3.18.2 Mashru and Himroo:
Aurangabad is famous for Mashru and Himroo fabrics

made of cotton and silk with the luster of satin. Himru is an age-
old weaving craft, and was originally known as kum khuab.
3.19 SWOT ANALYSIS of DIC Aurangabad:
3.19.1 S- STRENGTH :
1. Historical background of the District useful for Foreign

Investor.
2. Tremendous scope for ancillarisation of industries
Especially in Engineering Units.
3. Middle in India.
4. Well communication system available.
5. Well Transportation Connectivity available i.e. Road, Rail
& air, with all over the Nation.
6. A strong young first Generation Entrepreneurs in
Aurangabad.
7. Skilled & unskilled man power Available at very Low cost.
8. Good dealer network & logistic facility is Available.
9. Educational Intuition like ITI/Engg. College/IGTR/ CIPET/
MCED to facilitate & good support To industries.
10. Due to major financial institute running in
Aurangabad, finance is made easily available to the
Industries.
3.19.2 W-WEAKNESS-
• Poor Entrepreneurship Development.

• Poor Water Supply System.
• Improper maintenance of available Infrastructure
• Lack of coordination with different Govt. Depts.
• Inadequate Working Capital from F.I. & higher rate of
interest.
• R & D / Technology up gradation Facilities are not
available.
• Low level of Business exports
• Lack of Vision
• Awareness Camps/seminars are not organized so
frequently.
• High level of skilled man power is not available.
3.19.3 O-OPPORTUNITIES :
• MIDC has plan to develop Additional MIDC’s in the region

which creates good
• opportunities for industries.
• Cluster development programme of Central Govt. boost for
creation of jobs /
• skilled & unskilled man power.
• Expansion project of CIPET is playing vital role for plastics
mfg in the region.
• DMIC Project develops the Region.
• Scope for tourism due to Historical background.
• Major Investment & Job creation due to State Govt. Mega
Project policy.
• Wide Scope for retail sector.
3.19.4 T-THREATS:
• Shortage of Power.
• Labour policy to be reviewed.
• Pollution (17th rank district)
• Non availability of Agriculture Labour
• Dependency on large scale Industries for ancillary
Industries.
• High costing of Industrial land.
• Labour union problems.
3.20 FUNDAMENTAL BASIC ASSUMPTIONS IN THE

VISIONING EXERCISE OF DIC AURANGABAD:
• GROWTH & DEVELOPMENT IN INDUSTRIES SECTOR

AND EMPLOYMENT OPPORTUNITIES.
• QUANTITATIVE ACTION SUCH AS INCREASE IN THE
INFRASTRUCTURE FACILITIES TO PROVIDE TO THE
INDUSTRIALIST.
• QUALITATIVE ACTIONS SUCH AS FILLING,
EDUCATION & QULIFICATION OF FACULTY.
• QUALITATIVE ACTION SUCH AS ENHANCING
INFRASTRUCTURE & OTHER NEED BASED
FACILITIES.
3.20.1 Benchmark:
• Aurangabad as a preferred destination

• Norm and standards
• Essential facilities to be provided
• National & international scenario
• World class infrastructure and facilities to the industrial
units.
3.20.2 AIM OF DIC AURANGABAD
“To develop a district as a world class industrial hub by

developing globally competative and quality product through
msme and employment opportunities may be provided throuth
enhancing the quality industrial product at par with world
standards & therby contribute to the social, economical and
professional growth & overall industrial development of the
district aurangabad.”
3.20.3 Developmental Objectives:
Industrial Growth:
• The widest possible dissemination of Industrial

development to the young Entrepreneurs of the district
• To match the quality products and standard to the National
and international norms
• To design courses in consonance with newer
developments in various disciplines as also the needs of
business and industry. To equip institutions of higher
education with latest tools, apparatus and infrastructural
facilities
• To encourage quality research at par with international
standards
• To provide overall facilities to development of industrialists
so as to enable them to meet a variety of challenges in all
walks of life and competitive world.
• To provide common facilities through various schemes of
Govt. of India like ICDP,
• As a whole total economical growth of the industrialist,
new young entrepreneurs.
Table: 3.1 No. Of MSME Units Registered During Last Ten

Years.
No. of Investment
Year No. of units Employment made Rs.
Registered. Generated. In lakhs
2000-01 1615 14393 16093

2001-02 1793 16144 18315
2002-03 1938 17594 19441
2003-04 2109 19175 21475
2004-05 2284 19355 23958
2005-06 2504 231349 25936
2006-07 2785 23814 28604
2007-08 3059 25784 30619
2008-09 3233 35221 36311
2009-10 3405 36871 40486
Source : Complied from DIC Vision Documents
Table: 3.2 Total No. Of LEM ( Large Entreprises), in
Aurangabad District.
No. of units NO. Of Investment

Year Registered. Employment made Rs.
Generated. In lakhs
2000-01 123 50645 4645.46
2001-02 131 58460 4975.23
2002-03 143 59085 5419.71
2003-04 150 62055 5692.13
2004-05 164 67526 6193.95
2005-06 170 69871 6409.02
2006-07 172 70652 6480.71
2007-08 179 73779 6767.47
2008-09 191 78624 7211.94
2009-10 195 80500 7384.00
Table: 3.3 Major Product Wise Small Enterprises Dist.,

Aurangabad
Year Engineeri Rubber Printing Paper Food

ng & Plastic Offset Products Products
2000-01 938 270 131 119 34
2001-02 965 276 138 126 41
2002-03 1003 285 147 131 51
2003-04 1022 303 153 136 57
2004-05 1041 338 163 142 66
2005-06 1053 347 168 148 74
2006-07 1074 352 171 150 77
2007-08 1132 367 176 154 86
2008-09 1240 384 182 160 103
2009-10 1275 397 188 179 108
Table: 3.4 Major Productwise Large Enterprises (Lem) Dist.,
Aurangabad
Engineeri Food Mfg. of Mfg. of Mfg.

Year ng Products Machinery Rubber Pharma
& & & /Chemical
Bverages Equipment Plastic
M-01 28 6 28 8 23
M -02 29 6 30 8 25
M -03 32 6 33 10 25
M -04 34 7 35 11 27
M -05 37 7 36 11 27
M -06 39 8 38 13 29
M -07 42 8 41 13 31
M -08 44 10 43 15 33
M -09 45 10 43 16 35
M -10 48 11 46 17 36
Table: 3.5 Details Of Msme And Large Enterprises At A

Glance.
Type Indicator Aurangabad Maharashtra
MSME No. 3405 151495

Employment 36871 1188181
Investment 40486
(lac)
Large No. 525 (195) 6627
Enterprises
Employment 80500 836265
Investment 7384 147443
(lac)
Table: 3.6 Socio Economic Indicators
Factory Statistics Economic Census

No. of Average No. of Employment in
Workin daily establishment establishment
g factory per lac per lac
Factori employ population population
es per ment per
lac lac
Populat populati
ion on
Rur Urb Tot Rur Urb Tot
al an al al an al
Auranga 25 28 257 554 37 55 128 84
bad 4
5 5 39 95 72 8
Maharas 29 1229 362 459 40 76 149 10
htra 8
9 7 55 07 64 53
3.21 REVISED SEED MONEY SCHEME:
Eligibility: Min 7th Pass, Age 18-50 years, Domiciled of

Maharashtra
Conditions: I/S/B activities covered, project cost upto Rs 25 Lac
(75% by Bank, 15% by DIC, 10% by borrower) Rate of Interest
6% ( Moratorium period for industrial activity 3 to 7 years )
Existing
3.21.1 Prime Minister Employment Generation Programme:
Eligibility:
Age above 18 years, No income limit, 8th pass (for above 10

Lac project cost for industrial activity)
Conditions: Industrial activity to be promoted, Project cost up to
25 lac, Margin money will be 15% for urban, 25% for rural and
for SC/ST/OBC/Minority/Women/ Ex- Serviceman/ Physically
Challenged margin money will be 25% for Urban & 35% for rural
Prime Minister Employment Generation Programme
3.21.2 DIC LOAN SCHEME:
Eligibility: Applicable for rural artisans, No age and Education

limit
Conditions: Project Cost upto 2 lacs, Bank loan 75%, DIC
margin money 20% (if SC/ST margin money will be 30%)
DIC Loan Scheme
3.21.3 Entrepreneurship Development Training Programme:
Eligibility: Minimum 7th pass, age limit 18 to 35 years, Should

not be bank defaulter
Entrepreneurship Development Training Programme
Table: 3.7 Existing Infrastructure Dist. Aurangabad
Location Area in No. of Plots No. of Units

Hectors Indus+Comm. Shed Functioning
MIDC Rly. 34.95 81 + 6 + 46 = 133 128

Station
MIDC 633.18 755 + 82 + 108 =955 794
Chikalthan
MIDC Waluj 1521.99 1614 + 541 + 1119 = 3032
3274
MIDC Paithan 285.51 246 + 60 + 30 = 336 76
MIDC Shendra 902.88 456 + 51 + 294 = 801 35
MIDC Vaijapur 436.88 81 --
IGrowth Centre)
MIDC 4.22 --
Khultabad(
Growth Centre)
3.22 Focus On Integrated Development:
Establishing, Improving Technical Training Institutes, ITIs,

Entrepreneurship Development Centers. Transparent Policies.
Supporting Infrastructure Development like Road, Electricity,
Disposal of Solid Waste, Sanitation etc. Beautification in and
around Industrial Belt Single Point Clearance. Setting of
Transportation infrastructure like Depot for Trucks Road side
amenities for Truck Drivers like improved Lodges, Toilets, Food
Plazas etc.
3.22.1 Cluster Development:
• Leads to Capacity Buildings

• Skills Development
• Technology Up gradation
• Marketing Support
• Setting up of Common Facilities
• Research & Development
Table: 3.8 Projected Up To 2020 Year Wise Growth Of MSME

Registration
Year No. of units NO. Of Investment

Registered. Employment made Rs.
Generated. In lakhs
2010-11 3650 39000 44000

2011-12 4000 43000 49000
2012-13 4400 47000 55000
2013-14 4900 52000 61000
2014-51 5500 58000 68000
2015-16 6000 65000 77000
2016-17 6600 72000 85000
2017-18 7300 79000 92000
2018-19 8100 87000 98000
2019-20 9000 95000 105000
Table: 3.9 Up To 2020 Year Wise Growth Of Large
Enterprises
Year No. of units NO. Of Investment

Registered. Employment made Rs.
Generated. In lakhs
2010-11 195 80500 8185

2011-12 208 92000 8975
2012-13 220 104000 9693
2013-14 236 116000 10440
2014-51 252 130000 11488
2015-16 270 145000 12565
2016-17 290 157000 13642
2017-18 310 172000 15437
2018-19 330 182000 16514
2019-20 343 195000 17950
Table: 3.10 Major Productwise Small Enterprises Dist.

Aurangabad
Year Engineering Rubber Printing Paper Food

& Plastic Offset Products Products
2010-11 1285 409 200 191 123
2011-12 1299 424 215 205 143
2012-13 1313 442 235 223 168
2013-14 1329 464 259 245 196
2014-51 1347 489 287 271 228
2015-16 1367 517 319 301 264
2016-17 1392 547 354 335 304
2017-18 1422 579 392 373 348
2018-19 1454 614 434 415 396
2019-20 1489 652 482 463 448
Table: 3.11 Major Productwise Large Enterprises (LEM)
Dist, Aurangabad
Year Engineering Food Mfg. of Mfg. Mfr. Of

Products Machinery Rubber pharma/
& & & Chemical
Beverage Equipment Plastic
M-11 48 11 48 17 36
M -12 51 11 48 18 37
M -13 53 13 51 18 39
M -14 55 13 54 20 41
M -15 59 16 59 23 45
M -16 63 16 65 25 49
M -17 57 191 71 27 52
M -18 73 19 75 30 55
M -19 78 20 78 31 58
M -20 83 21 81 32 61
Table: 3.12 Industrial Cluster Scenario District
Aurangabad
Locatio Name Activit Name No. of Proje Status

n of y Special Units ct of
Schem Purpose will be Cluste
e vehicle benefit r
ed
First
Installment
Auto
Waluj Rs. 80 of GOI
IIUS Compo CMIA 1000
MIDC Cr. Grant in
nent
Aid is
released
SPV
Auto Formed
Waluj MSEC MASSI 200 Rs. 80
Compo awaited
MIDC DP A unit Cr.
nent MIDC
Land
Auranga Soft
Offset/ bad Interventio
Chikalth
MSEC Flexo Mudrank 80 Rs. 80 n Sanction
an
DP Printin sung units Cr. Land is not
MIDC
g Printing allotted
Cluster
Gen.
Eng.
Machi Tiny
Chikalth ne Industrie
MSEC 250 Rs. 80
an Spare s Eng. &
DP units Cr.
MIDC parts Allied
For Cluster
Micro
Unit
Plastic
Mould
Chikalth ed & To be To be
MSEC Yet not
an Extrusi Project Projec Proposed
DP defined
MIDC on ed ted
Article
s
To be
Chikalth Himro To be
MSEC Yet Not Projec
an o Project Proposed
DP defined ted
MIDC Shawl ed
Table: 3.13 Proposed Infrastructure Dist. Aurangabad
Sr. Area Hectors-R Status

No.
1 Shendra 813.69 Land acquisition of village ladgoan &
karmad is under progress
2 Gandheli 2763.21 Regarding purchase of Land initiative
(SEZ) to be taken by M/s Videocon
Company & It in progress
3 Additonal 343.68 Meeting of Land owner & MIDC
Waluj official regarding Land acquisition is
in progress
4 Devgaon 36.49 Under Land acquisition,transfer of
(Rangari) Govt. land to MIDC is in progress
5 Bidkin 2363.829 Regarding Land acquisition, Chapter 6
notification published
3.23 SPECIAL ECONOMIC ZONES (SEZ):
As per the Central Government SEZ Policy there are 5 special

economic Zones are approved and work is in progress in
Aurangabad district. Which are as follows :
● Aluminum SEZ (MIDC SENDRA)
The MIDC has allotted 110.31 Hectors Land in MIDC Shendra
Aurangabad to M/s. Hindalco Almex Aurospace Ltd. for
Aluminum SEZ & the work is in Progress.
● Wockhardt Pharmaceutical SEZ (MIDC SENDRA)

The MIDC has allotted 107 Hectors Land in MIDC Shendra
Aurangabad to M/s. Wockhardt Ltd. for Pharmaceutical SEZ &
the work is in Progress.
● Ajantha Project India. SEZ (MIDC SENDRA)

The MIDC has allotted 100 Hectors Land in MIDC Shendra
Aurangabad to M/s. Ajantha Projects India Ltd. for
Pharmaceuticals SEZ & the work is in Progress.
● Glen mark Pharma Ltd. SEZ (MIDC SENDRA)

The MIDC has allotted 11.89 Hectors Land in MIDC Shendra
Aurangabad to M/s. Glen mark Pharma Ltd. for Pharmaceuticals
SEZ & the work is in Progress.
● Bajaj Auto Ltd. SEZ (MIDC SENDRA)

The MIDC has allotted 100 Hectors Land in MIDC Waluj
Aurangabad to M/s Bajaj Ltd. for Automobile SEZ & the work is
in Progress.
3.24 UDYOG SETU :
Objective:
To establish new industries, give information & guidance

regarding:
• Various rules & regulations of Govt.
• Various incentive schemes.
• Permission required from Govt./Semi Govt. Institutes
• Clearance certificates.
• Various services as per need of applicant.
• All above services at one counter & within predetermined time
limit.
3.24.1 Services provided by Udyog Setu:
• Services of Directorate of Industries / DIC

• Services of MIDC
• Services of MPCB
• Services of MSEDCL
• Services of Labour Dept.
• Services of Sales Tax Dept.
• Services of Other Depts.
3.24.2 District Industries in Jalna :
In the year 1981, Jalna is established as a district place having

surrounding boundaries of Buldhana, Parbhani, Aurangabad,
Jalgoan & Beed District. Jalna District is knows an a seed
processing capital having companies like mahyco, krushidhan
seed bejosheetal which have a good will over all county and
wide also. Rive Godavari Passed through the district having
command area of Jayakwadi Project in, Ambad, Ghansawangi &
Partur Taluka, Jalna Market committee is highest gaining
committee in the Marathwada,. Therefore major agro based
industries are established all over the district
Recently Jalna City in particular known as a steel manufacturing

centre & near about 54 steel rolling mills, plants, are working in
the Jalna Industrial area. All these units are providing
employment to local person & Production capacity is about
10.80. lac MT. per anum
665 M.S.M.E.s are working the district as on today & capital

investment is 24950 lac. All the M.S.M.E.s are providing
employment to local persons. Looking in the future industrial
growth Maharashtra Industrial Development Corporation has
proposed additional MIDC area near to Jalna Town away 5 k.m.
from main city.
A) There are Seven Large Scale unit in the district, details are as
under upto 2010:
1. Total no of Large scale units 07
2. Capital Investment Rs.
19763 Lac
3. Employment Generated 3356
4. Local Employment 3343
5. Proposed new Large units 04
6. Proposed Capital Investment 9450
lac
7. Proposed employment 1200
B) Data regarding M.S.M.E.s upto 2010
1. Total No. of M.S.M.Es 670

2. Capital investment Rs.
9997.93 Lac
3. Emplloyment Generated 4161
4. Local Employment 3362
5. M.S.M.Es Proposed 1412
6. Proposed Capital Invesment Rs.
17123.17 Lac
7. Proposed investment 11856
3.25 INDUSTRIAL AREA IN THE DISTRICT:
District is having following MIDC areas, over all supervision

by Dy. Engineer office for infrastructure development and Are
Manager, office is working for allotment of Plots etc. Plots
more than ½ acres are allotted by Regional office, MIDC,
Aurangabad.
Table: 3.14 Industrial Area In The District
Industrial Area Total Rate per Total Plots No of

S. Area in M2 Plots Allotted unit
N Hector establi
. shed
1 2 3 4 5 6 7
1 Old Jalna 50.58 200 80 80 45
Industrial Area
2 Addl. Industrial 158.10 200 329 328 181
Area Phase ‐ I
3 Addl. Industrial 123.46 200 148 119 82
Area Phase – II
4 Mini Industrial 10.69 25 53 53 05
Area
Bhokardan
5 Mini Industrial 35.38 25 27 24 02
Area Ambad
6 Partur 51.21 50 48 02 0
Development
Centre
7 Mini 14.04 25 31 31 03
Development
Area Jafrabad
8 Bio Technology 50.53 200 43 23 02
Park
Source: Compiled from Primary Data
MIDC has acquired 215.76 hector of land for IInd phase which will
be opened soon for allotment
1. Financial Institute in the District

1. Nationalized Bank 16
2. Nationalized Bank Branches 54
3. Urban Co‐op Bank Branches 22
4. Gramin Banks Branches 26
2. Educational Facilities available :
1. Engineering College 01
2. Polytechnique 01
3. Capacity to learn in polytechniques 461
4. I.T.I. 08
5. I.T.I Students Capacity 658
6. B.Pharm College 01
7. B.Pharm College Capacity 52
8. M.C.V.C. Units 08
9. M.C.V.C. student Capacity 1331
10.Agro Colleges 02
3. Agro Produced in
Table: 3.15 Various Crops in District.
S. Particular
N s Crops
.
Jawar Wheat Bajra Tur Palses Sugar Cotton Maka Halad Gro
Pase Cane und
nut
1 2 3 4 5 6 7 8 9 10 11 12
1 Productio 1667 440839 303 119 318 11220 2000 1233 73 22
n M.T.
2 Yield per 973 1593 971 631 759 587 69 235 2133 99
hector 8
productio
n
Source : Compiled from Primary data.
3.26 Schemes Implemented by the Directorate of
Industries for Industrial Growth:
In order to encourage the dispersal of Industries to less

developed are of the state, Govt. has been giving a package
of incentives to new expansion units set up in the developing
region of the state, a scheme, popularly know as the package
scheme of incentives presently package scheme of incentives
2007 is in force and operative from 1.4.2007 to 31.3.2011
which is according to new industrial, investment infrastructure
policy to censure sustained industrial growth through imitative
innovative for development of key potential sectors.
1. Incentives offered :
1. Industrial promotional subsidy MSME 50% of fixed

capital investment period nine years
2. Interest subsidy to new MSMEs from 2010-11 5%
period 5 years
3. Electricity duty exemption period 15 years
4. 5% subsidy on capital equipment for technology up
gradation 5% maximum 25 Lac
5. 50% subsidy for the expenses incurred for quality
certificate. 50% maximum Rs. 1 lac
2. Revised Seed Money Scheme :
Industrial Project upto 25 Lac are eligible for benefits

under the scheme and upto Rs. 10 lac for service
industries/ Banished sector. Seed Capital upto 15% of the
project cost to the general category unemployed youth and
20% of the project cost to the SC/ST/OBC category
unemployed youth will be sanctioned as a soft loan having
interest rate @ 6% p.a.
3. State Aid to Industry (DIC Loan)
Industries project upto 2 Lac in the rural areas are eligible

for scheme soft loan @ 4% will be sanctioned 20% of the
project cost approved by financial institute to the general
category beneficiary & 30% to the SC/ST beneficiary
4. P.M.E.G.P. :
Govt. of India has introduced a new credit linked scheme

called prime minister Employment Generation Programme
(P.M.E.G.P.) by merging the two schemes i.e. P.M.R.Y. &
R.E.G.P. for establishment of micro enterprises in rural
area as well as urban area thereby creating employment
generation.
The scheme well be implemented by Khadi & Village
industries Commission (KVIC), KVIB & DIC under the
administrative control of Ministry of MSME.
The Maximum cost of the project/unit admissible under

manufacturing sector is Rs. 25 Lac & Rs. 10 Lakhs under
business Service Sector
Table: 3.16 Quantum and Nature Of Financial Assistance

Under the Scheme.
Category of Beneficiary Beneficiary’s Rate of Subsidy

Contribution (of ( of Project Cost)
Project cost) Urban Rural
General Category 10% 15% 25%
Special Category 5% 25% 35%
SC/ST/OBC/ Minorities/ Women/
Ex. Serviceman/ Physically
Handicapped/ NER, Hilly &
Border Areas
Source : Compiled from Primary data
1. Minimum Age limit 18 years
2. No Income Ceiling
3. Educational Qualification – Mfg. Project above Rs 10 Lakhs &
Business / Service Sector Projects about Rs. 5 Lakhs,
Beneficiaries should posses at least VIII std. Pass Education
4. Assistance only for new projects
5. The Scheme will be implemented by 27 public sector banks all
Regional Rural Banks, Co‐oprative Banks approved by State
Level T.F.C., Private Sector Scheduled commercial banks by
State Level T.F.C. & SIDBI
6. The identification of beneficiaries will be done by Dist. Level
T.F.C.
7. The Bank will sanction 90% bank finance of the project cost in
case of General Category beneficiary. And 95% in case of
Special category beneficiary.
8. Normal Rate of interest will be charged by banks and
repayment schedule may range between 5 to 7 years
9. Villages / Town whose population does not exceed 20000
persons will be rural area.
10.One person from one family will be assisted under the scheme.
11.Only candidate are eligible who has not taken any benefit under
any govt. sponsored scheme of State or Central govt.
Table: 3.17 Targets & Budget provision proposed for the period
2010 to 2031 Financial Fiscal
S. Plane 2009‐10 2014‐ 2019‐ 2024‐ 2030‐2031

N. Sche 2015 2020 2025
me Phyl. Fin Phyl Final Phy Final Phy Final Phyl Final
al l l
1 Revise 2.80 16 12 165 13 160 21 275 500 620
d 5 7 0
Seed
Mone
y
Sche
me
DIC 0.60 03 5.0 25 15 50 20 65 100 120
loan 0
EDTP 20 40 10 400 15 600 20 800 300 1000
0 0 0 0 0 0 0 0
Distric 0.30 2 1.5 10 3 10 3 10 3 10
t 0
Awar
d
2 SCP 1.50 6 10 40 15 60 25 75 40 100
Revise
d
Seed
Mone
y
Sche
me
DIC 1.50 5 10 40 15 60 25 75 40 100
Loan
EDTP 13.9 50 80 400 10 600 15 700 2000 1000
9 0 0 0 0 0 0 0 0
PMEG 105 76 30 150 40 200 50 300 600 5000
P 0 0 0 0 0 0
Table: 3.18 MSME registration, Capital Investment and
employment generation target for the period 2010 to 2030
S.N. Particulars 2010 2015 2020 2025 2030

1 MSMEs 662 1162 1462 1912 2400
permanent
Nos
Capital 27882 34392 39947 46268 54500
Investment
Employment 7294 14000 20000 30000 45000
Generation
2 MSMEs 1157 2400 3000 4500 5500
proposed
Nos
Capital 16116 20500 27400 35500 50000
Investment
Employment 9739 20000 30000 40000 50000
Generation
3.27 Thrust Areas of Industrial Development of Jalna:
A. Bio-Technology – Units (Park) : MIDC has developed bio

technology park in the additional MIDC area Phase II, over
50.53 hectors and 43 plots are developed. Units based on
Bio Technology research, Bio Technologies, Tissue
culture, Genetic Research etc. are eligible for getting plots
in this park.
Following sectors have a scope.

1. Food Grain
2. Enzymes, Fresh Compressed Yeast
3. Composed Fertilizers from Municipal & Agri, Waste.
4. Specialty Bio Degradable Plastics
5. Micropopayation of Bamboo & Forest Lands
6. Bio Pesticides
7. Genetically Modified Seeds.
B. Agro Based Industries : District is ahead in the mass
production of Maize crop. In the year 2010 maize yield is
24, 27 on M.T. but there is no Industrial Unit working in the
district, hence very good scope for Cornflakes, Poultry
feed, Starch, Riva Mfg. Units
C. Cotton Processing : Textile Units around 52 ginning,
Processing units are working in the District & average
production of cotton bales are 32000 p.a. therefore there
is scope for textile based units like , dying, printing, soot
girni, knitwear unit in the district.
D. Fruits Processing Units.: District is having major
production of sweet lemon which is exported over all the
country. But there is no processing unit is working in the
district. Therefore two or more cold storage units
particularly for storage of sweet lemon is proposed and
juice by produced mgg. Unit can be established. Govt. has
started Mosambi Sanshodhan Kendra at Badnapur for
further development.

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Chapter III

District Industries Centre and Its Scheme

Govt. of Maharashtra is one of the first States implementing

Latur dist. is categorised as D+ zone and eligible up to 50% and

3.1 Package Scheme of Incentives for Industries in

The Package Scheme of Incentives, introduced in 1964, was

The State has declared the new Industrial, Investment,

The Package Scheme of Incentives 2007 which were

3.2 Coverage under the 2007 Scheme:

3.3 Classification of Areas:

For the purpose of the 2007 Scheme, the classification of the

3.4 Scheme Implementing Agencies:

The Implementing Agencies for the purpose of the 2007 Scheme

3.5 Jurisdiction of Industries under DIC:

Micro & Small Manufacturing Enterprises graduates to Medium

Where an Eligible Unit has been issued an EC under any of the

An Eligibility Certificate under the 2007 Scheme will be issued

3.6 Micro & Small Manufacturing Enterprises,

Medium manufacturing Enterprises /LSI & Mega

I. Micro, Small and Medium Manufacturing Enterprises as defined

3.7 Earlier Scheme:

'Earlier Scheme' shall mean and include:

3.8 Effective Steps:

Effective Steps shall mean and include:

3.9 Existing Unit:

An Existing Unit shall mean and include:

3.10 Expansion / Diversification:

An Existing / New Unit in any of the areas covered under Group

Finished product shall mean and include the item/s of

3.11.1 Fixed Assets:

The term Fixed Assets shall mean and include:

3.11.2 New Unit:

3.11.3 Period of Eligibility:

The period of eligibility applicable to an Eligible Unit will be as

Example: For example, an Eligible New Micro & Small

3.11.5 Sick Unit:

A 'Sick Unit' shall mean and include an Micro & Small

3.12 GENERAL PROVISIONS:

3.12.2 Claim for Incentive:

3.13.1 Industrial Promotion Subsidy: (IPS)

A. New Micro & Small Manufacturing Enterprises, Medium

All new eligible Micro & Small Manufacturing Enterprises in

3.13.3 Exemption from Electricity Duty:

Eligible new units in C, D, and D+ areas and No-Industry

New as well as units undertaking Expansion/ Diversification will

3.14 Royalty Refund:

3.14.1 Refund of Octroi / Entry Tax in lieu of Octroi:

b) The period of eligibility for refund of the Octroi / Entry Tax

3.14.2 Strengthening the Micro, Small and Medium

The followings are the incentives to promote quality

3.14.3 Additional Incentives:

The eligible Micro & Small Manufacturing Enterprises coming up

3.14.4 Special Incentives for Units coming up in the low

New units setting up facilities in notified districts (Annexure-II)

3.14.5 Mega Projects:

The quantum of incentives within the approved limit will be

3.15 MONITORING AND REVIEW:

(a) Monitoring and Review of the Fixed Capital Investment and

(b) Failure on the part of an Eligible Unit to submit any of the

(c) The Implementing Agencies shall, as far as possible, ensure

3.16 D.I.C. AURANGABAD:

Synonymous with the world famous heritage sites of Ajanta and

There is evidence to believe that Aurangabad was developed as