Maharashtra’s draft defence & aerospace policy proposes support, incentives for MSMEs

Mumbai, Mar 6 (KNN) The Maharashtra Government’s draft defence and aerospace policy proposes a   Rs 1,000 crore corpus to help micro, small and medium enterprises (MSMEs) to set up defence manufacturing units in the state.

The draft policy aims support MSME sector by forming a critical supplier base to anchor units. Under the policy, MSMEs will be given incentives for market development, quality certification and patent registration.

The Maharashtra government on Saturday released a draft defence and aerospace policy to attract investments of USD 5 billion and create 100,000 jobs in the next five years.

Fadnavis was addressing at press conference jointly with union defence minister Manohar Parrikar at Hotel Trident after a conference with global defence manufacturers.

The proposed investments are expected in Pune, Nashik, Nagpur, Ahmednagar and Aurangabad. 

The state government aims to establish Maharashtra as the preferred destination for domestic and aerospace manufacturing, promote indigenous and modernised technological capabilities, develop world-class manpower and support MSMEs to be globally competitive.

In an attempt to cut red tape and remove procedural hurdles, the defence industry will be declared as essential services under the Maharashtra Essential Services and Maintenance Act.

The CM said state government would float a Rs 1,000 crore fund with the involvement of Maharashtra Industrial Development Corporation (MIDC), IDBI, SBI Caps and other financial institutions to provide initial funding to investors.

The fund will provide comfort to investors to kick start their projects considering the defense and aerospace industry is capital intensive.

Further, the government will provide need-based support to R&D institutions. Fiscal and non-fiscal incentives will be provided to investors who set up aerospace and defence-related R&D units in the state.

Incentives will be provided to units for developing skilled human resources and emphasis will be laid on imparting vocational training.

Some other incentives include an industrial promotion subsidy; exemptions in the electricity duty, stamp duty, entry tax and local body tax; and VAT and CST waivers. 

All anchor units with investments ranging from Rs 500 crore to Rs 1,000 crore will be allowed to use up to 20 per cent of the designated land for residential and commercial purposes.

Defence and aerospace units will be entitled to relaxations with regard to working hours, shifts and employment of women.

These units will be exempted from maintaining records for attendance and salary. They will also enjoy an option for self-certification and filing of consolidated annual returns under 13 laws administered by the labour department.

These units will be entitled to relaxations under the Contract Labour Act applicable to special economic zones. These relaxations will be subject to approval by the state legislature.