Madhya Pradesh Small Scale Industries Revival Scheme

Madhya Pradesh Small Scale Industries Revival Scheme

Madhya Pradesh Small Scale Industries Revival Scheme

Madhya Pradesh Government has launched the Small Scale Industries Revival Scheme (MPSSIRS) to facilitate the revival of sick industrial units and other industries which are beyond the scope of BIFR in the SSI sector. Under this scheme, the public sector banks are to provide a rehabilitation package or to the sick SSI units. In this article, we look at the Madhya Pradesh Small Scale Industries Revival Scheme in detail.

Applicability of the Scheme

The below following are the eligibility criteria of enterprises to apply for the Small Scale Industries Revival Scheme.

  • This Revival Scheme applies only to micro and small scale industrial units.
  • The ancillary units in the manufacturing sector whose total investment in plant and machinery exceeds Rs. 5 lakhs (excluding land and building) are not eligible to apply under the scheme.
  • The scheme would not apply to service and business enterprises, and such industrial units which are not eligible under the subsidy schemes of the department and for tax exemption.

Reliefs

For the preparation of rehabilitation package of Micro/ small scale units and Non-BIFR sick industrial units, the Madhya Pradesh Government has agreed in principle as such the following reliefs and concessions are listed below:

Fiscal Reliefs

The eligible units/sectors will be able to get the following reliefs and concessions from various departments or agencies of the State Government. Significant funds to operate the scheme and to reimburse financial loss to the Government and its agencies will be provided in the budget allocation of the Commerce, Industries and Employment Department. The number of units to be granted relief shall be limited according to the availability of funds in any given year.

Commercial Tax Department

The unit will be given the facility to pay arrears of commercial tax, i.e. assessed tax in 36 monthly instalments or 12 quarterly instalments with interest/penalty. The unit will be free to deposit the amount of assessed tax without interest/penalty in one stroke.

Madhya Pradesh Electricity Distribution Company

The unit eligible under the Scheme would be granted the following reliefs by the relevant Madhya Pradesh Electricity Distribution Company

  • Minimum charges for the closure period subject to a ceiling of maximum Rs. One lakh will be waived. However, if the unit has already paid the number of minimum charges, the same shall not be refunded.
  • In cases where power has been departed due to nonpayment of bills or the agreement has been terminated ex-parte, no new security deposit would be insisted upon.
  • The facility of paying arrears of electricity bills to concerned Electricity Distribution Company in six half yearly instalments from the sanctioned date of revival scheme will be given to the unit.
  • Interest payable on dues of the relevant Electricity Distribution Company for closure period of the unit will be waived up to a maximum ceiling of Rs. 1 lakh for reconnection of electricity supply by the concerned Electricity Distribution Company, a payable additional service charge will be waived upto to the maximum ceiling of Rs. 25,000.
  • Penal charges imposed by the concerned Electricity Distribution Company will be waived upto a maximum ceiling of Rs. 2500. In addition to the above, on prompt rehabilitation action in accordance with the policy in force under the concerned Electricity Distribution Company and the Electricity Act, 2003 will be ensured.

Commerce & Industry Department

If any small scale unit, which has been sanctioned rehabilitation scheme, avails new term loan amount under the revival package, it will be eligible for interest subvention as per the existing rules of MP Government

The viable closed unit would be granted the facilities as applicable to a new unit from the date of revival. If additional investment is made in plant & machinery, the State Capital Investment Subsidy would be granted as per eligibility.

Continuation of Incentives sanctioned earlier 

This scheme will also be applicable to a sick unit, which has had a change in management. The revived unit would get the facilities sanctioned to the earlier unit for the unexpired eligibility period.

Additional Relief

In addition to the above fiscal concessions, the recommendation may be made to the concerned authorities for granting of following additional reliefs.

  • Exemption from stamp duty on different agreements to be registered as a result of revival scheme.
  • This scheme will be implemented through Single Window System.

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