Package Schemes Of Incentives- 2019 (PSI)

Who Can Apply Under PSI

  • This includes micro, small, medium, and large-scale industries (MSMEs and LSIs).
  • These areas are categorized based on
    their level of development, with varying eligibility criteria for each.

Which Projects Are Eligible For PSI

Micro, Small & Medium Manufacturing Enterprises (MSME) must be a manufacturing unit as per MSMED Act, 2006

Ensure remunerative prices to the farmers for their produce

New units starting after April 1, 2019 are eligible (land acquisition, incorporation etc.)

Ensure remunerative prices to the farmers for their produce

Information technology manufacturing units registered with specific authorities

Ensure remunerative prices to the farmers for their produce

Small units (Gross fixed capital investment (GFI) upto Rs.50 Cr) outside MSME definition are also eligible

Ensure remunerative prices to the farmers for their produce

Existing units can also apply for expansion/diversification

Ensure remunerative prices to the farmers for their produce

Textile units can apply for incentives not offered by other agencies.

Ensure remunerative prices to the farmers for their produce

Bio-technology manufacturing units approved by the government

Ensure remunerative prices to the farmers for their produce

Mechanized food/agro processing units in specific sectors (dairy, fruits & vegetables, grain, fish/meat/poultry, consumer foods, non-alcoholic beverages).

Ensure remunerative prices to the farmers for their produce

Benefit

  • Up to 25% of project cost on land, infrastructure, and machinery
    translates to direct savings (e.g., a Rs. 10 lakh project could get a Rs. 2.5 lakh subsidy).
  • Reduces loan interest costs, leading to lower repayment burden (e.g., 5% subsidy on a Rs. 5 lakh loan saves Rs. 25,000 annually).
  • Eliminates stamp duty and registration fees, saving on land purchase
    and construction costs.

Type of Incentive

  • Capital subsidy: Up to 25% of project cost on land, infrastructure, and machinery.
  • Interest subsidy: Up to 5% on loans for land, infrastructure, and machinery.
  • Stamp duty and registration fee exemption: On land purchase and factory construction.
  •  Electricity duty exemption/concession: For eligible industries.
  • Other fiscal incentives: Octroi exemption, reimbursement of transport subsidy, training
    subsidy, etc.
  • Single window clearance: Streamlined approvals process for businesses.
  • Land allotment assistance: Government assistance in acquiring land for eligible projects.
  •  Infrastructure support: Access to roads, water, electricity, etc., at concessional rates.
  •  Marketing and branding support: Assistance with market access and brand development.