Maharashtra becomes first Indian state to roll out ‘Industrial Policy for Women’

Mumbai, December 6: Maharashtra becomes the first Indian state to roll out ‘Industrial Policy for Women’. Under the policy, first-generation women entrepreneurs who set up micro, small or medium enterprises (MSMEs) will be entitled to a capital subsidy of up to Rs 1 Crore, depending on the location of the unit. The policy aims at creating more women entrepreneurs. 

“This is the first time the government has extended a capital grant incentive to an industry segment,” said Maharashtra Development Commissioner (Industries) Dr Harshdeep Kamble.

Industries Minister Subhash Desai said the women-run businesses would be offered special concessions for locating their units, and extended lower power tariffs, higher interest subsidies, and grants for branding their products, among other incentives.

For existing women-run enterprises, the fresh perks would come in addition to those already offered under the universal package of incentives. But with the state’s finance managers cautioning about the possibility of other entrepreneurs misusing the policy for added benefits, the government has decided to limit the new perks only to units or businesses exclusively established and run by women. There is another mandatory clause that 50 per cent of the employees in such units must be women for availing the benefits.

While Maharashtra is India’s most industrialized state, it has a poor women participation rate of 9% in the MSME sector. The corresponding national average is around 13.8%. The industries policy for women, to be in force for the coming five years, is aimed at increasing this to 20 per cent in the state.

Further Desai said, “A separate budgetary head will be created for the expenditure. The expenditure should be viewed as an investment to boost industrial investment and financially empower women.”

Women setting up enterprises in Naxal-infested districts in Vidarbha would be entitled to a capital grant equal to 35 per cent of the unit’s capital cost, or up to Rs 1 crore. Those setting up units in other backward districts in Marathwada and Vidarbha will be offered a 25 per cent capital grant, or up to Rs 50 lakh. While no incentives are offered for units in developed industrial belts such as the Mumbai Metropolitan Region and Pune, the state has made an exception for women enterprises, who would be entitled to 15 per cent capital grant or Rs 20 lakh. While units already availing benefits under various central, state, and PSU-run schemes would also be eligible for the benefit, the government has capped the overall capital grant that could be availed to 50 per cent.