Maharashtra announces New Industrial Policy 2013-18

 

Maharashtra’s New Industrial Policy 2013-18, announced in Mumbai on Thursday, aims  to boost the SMEs by giving them several sops in terms of subsidies and tax concessions.  An investment of Rs.5 lakh crore, jobs for two million people,  and an aim to increase the states GDP to 28% are other few highlights of the said policy, which will be implemented from April 1.
The policy, which focuses on the promotion of micro, small, medium scale (MSME) enterprises in the state, offers 100% rebate VAT to to MSMEs especially in tribal areas and Naxalite-infested districts and  90% in under developed districts such as Chandrapur in Vidarbha and Nandurbar in North Maharashtra. Further, industrial projects proposed to be set up in Vidarbha and Marathwada regions will receive waiver in the payment of stamp and registration duty and also in the electricity duty. The government will provide 75 per cent or up to Rs 2 lakh reimbursement of expenses incurred by MSMEs for carrying out electricity and water audits. The government has also proposed rebate Rs 1 per unit or 20 per cent annually in the electricity tariff charged to MSME.
The Maharashtra government has classified all 357 taluks in the state in five categories on the basis of industrial development—A, B, C, D and D+. The new policy includes 100% stamp duty exemption while purchasing land in C, D and D+ zones in the state and an  additional  5% subsidy  to  MSMEs on capital investment C and D zones for development purposes.
The Maharashtra government has also found a way to use land acquired for special economic zones (SEZs) that did not materialize. The new policy gives an exit route for SEZ developers by allowing them to use such land to primarily develop industrial townships, but also keep a portion for residential and commercial projects. Developers will likely be allowed to use 60% of such land for industrial projects and the rest for residential or commercial buildings, the state government official

‘Green finance scheme’ for industries

TNN | Jan 25, 2014, 02.57AM IST

With a focus on promoting green industries as per the government’s new policy, the 12th Kerala Budget has set aside Rs 639.40 crore for various industries, which also includes one-time central grant of Rs 23.44 crore.

To encourage environment-friendly industries, the government will launch a Rs 100-crore ‘green finance scheme’ for which Rs 10 crore has been allotted initially. The Budget also includes plans to develop an international furniture hub to ensure global standards and international participation in the furniture production units operating in the suburbs of Ernakulam. Rs 6.50 crore has been set aside towards this. Thrust will be on developing traditional industries, handicrafts and industrial parks with investment promotion activities.

To promote innovative entrepreneurship of youth, the budget has set aside a total Rs 5 crore, at a rate of Rs 5 lakh for each project. For job opportunities and placements for the youth, the budget has set aside Rs 5 crore. In order to attract young entrepreneurs to the handloom sector and promote innovative enterprises, Rs 1.5 crore has been set aside. A margin money of Rs 50 lakh will be offered to new units to start their functioning. In addition, to attract more units into handloom production and distribution and support their production incentive, a special package will be allowed. The Budget has allocated Rs 10 crore towards these programmes. Rs 7 crore will be used to offer handloom rebate. For the revival of Hantex, Rs 1 crore has been set aside, and to modernize spinning mills, the Budget has allocated Rs 8.98 crore. In order to ensure more working days for cashew workers, the Cashew development Corporation and Capex will get Rs 28 crore and Rs 18 crore, respectively. For the overall development of the coir industry, Rs 116.93 crore has been set aside.

Further, to set up a caustic soda plant at Travancore Cochin Chemicals Ltd, Rs 10 crore has been allotted in the Budget as initial support. To develop basic infrastructure for Kinfra projects, Rs 148.79 crore has been offered in this fiscal. They include new projects like Mattannur Industrial Park, Ernakulum Green Field Electronic Park, Palakkad Non-Conventional Energy Park, Eco Industrial Park and Global Ayurveda Village, and the development of basic amenities and land banks for industries in Kochi, Kozhikode and Kannur.

 

Master Circular on Exports of Goods and Services

{RBI/2013-14/14 /Master Circular No.14/2013-14    (Updated as on November 30, 2013) July 1, 2013}

All Category – I Authorised Dealer Banks

Export of Goods and Services from India is allowed in terms of clause (a) of sub-section (1) and sub-section (3) of Section 7 of the Foreign Exchange Management Act 1999 (42 of 1999), read with Notification No. G.S.R. 381(E) dated May 3, 2000 viz. Foreign Exchange Management (Current Account) Rules, 2000, as amended from time to time.

2. This Master Circular consolidates the existing instructions on the subject of “Export of Goods and Services from India” at one place. The list of underlying circulars/notifications consolidated in this Master Circular is furnished in Appendix.

3. This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 01, 2014 and be replaced by an updated Master Circular on the subject.

C.15 Reduction in Invoice Value on Account of Prepayment of Usance Bills

Occasionally, exporters may approach AD Category – I banks for reduction in invoice value on account of cash discount to overseas buyers for prepayment of the usance bills. AD Category – I banks may allow cash discount to the extent of amount of proportionate interest on the unexpired period of usance, calculated at the rate of interest stipulated in the export contract or at the prime rate/LIBOR of the currency of invoice where rate of interest is not stipulated in the contract.

C.16 Reduction in Invoice Value in other cases

(i) If, after a bill has been negotiated or sent for collection, its amount is to be reduced for any reason, AD Category – I banks may approve such reduction, if satisfied about genuineness of the request, provided:

1. The reduction does not exceed 25 per cent of invoice value:
2. It does not relate to export of commodities subject to floor price stipulations
3. The exporter is not on the exporters’ caution list of the Reserve Bank, and
4. The exporter is advised to surrender proportionate export incentives availed of, if any.

(ii) In the case of exporters who have been in the export business for more than three years, reduction in invoice value may be allowed, without any percentage ceiling, subject to the above conditions as also subject to their track record being satisfactory, i.e., the export outstandings do not exceed 5 per cent of the average annual export realization during the preceding three financial years.

(iii) For the purpose of reckoning the percentage of export bills outstanding to the average export realizations during the preceding three financial years, outstanding of exports made to countries facing externalization problems may be ignored provided the payments have been made by the buyers in the local currency.