With the approval of its proposed expansion project and the incentives provided by the Maharashtra government’s Package Scheme of Incentive Policy, Privi Speciality Chemicals has accomplished a noteworthy milestone. With its facility situated in the Maharashtra Industrial Development Corporation (MIDC) area in Mahad, Tal. Mahad, Dist. Raigad, Privi’s expansion initiative to manufacture synthetic aroma chemicals has been given the status of ‘Ultra Mega Project’ by the Industries, Energy, Labour and Mining Department of Maharashtra.
Key Incentives for the Expansion Project
The recognition of Privi Speciality Chemicals’ expansion project under the Package Scheme of Incentive Policy, 2013 (PSI 2013) offers multiple advantages. As to the PSI Letter that was obtained from the Maharashtra government, the project is eligible for the subsequent incentives, provided that it complies with the guidelines mentioned in PSI 2013 and any other relevant laws:
- Electricity Duty Exemption: The project will be exempt from electricity duty for 15 years, beginning on the day that production begins or the eligibility certificate is received.
- Exemption from Stamp Duty: In accordance with Government Notification Revenue and Forest Department No. Mundrank 2013/UOR-No.19/CR-235/M-1 dated July 18, 2018, the project will not be required to pay stamp duty.
- Industrial Promotion Subsidy (IPS): Beginning on April 1, 2018, the expansion project qualifies for an IPS that is equal to 75% of qualifying investments made over a seven-year period. The exclusions listed in the PSI Letter will be subtracted before calculating the subsidy.
Strategic Importance of the Expansion
Privi Speciality Chemicals’ expansion project is expected to increase the company’s ability to produce synthetic aroma chemicals, which are essential parts of the flavour and fragrance industries. Through the utilisation of the advantages offered by the PSI 2013 policy, Privi hopes to fortify its position in the market and stimulate innovation in its range of products.
Broader Economic Impact
Privi Speciality Chemicals gains from the “Ultra Mega Project” category, which also highlights Maharashtra’s dedication to promoting industrial growth and drawing large investments. The state government’s incentives and support are intended to stimulate industry, provide jobs, and advance the region’s sustainable economic growth.
Future Prospects
The expansion project of Privi Speciality Chemicals is expected to have a major impact on the trajectory of growth of the company. The PSI 2013 policy’s strategic incentives will assist the business in cutting expenses, making investments in cutting-edge technology, and strengthening its position as a market leader internationally.
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