Incentives granted by Government of Maharashtra for the Mega Project under Thrust and Hi Tech Sector Government Policy in light of Memorandum of Understanding signed by company with Government ....
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AEIM had signed an MoU with the Government of Maharashtra on 10th February 2025 to set up a manufacturing facility for Sapphire Ingots and wafers at Mihan SEZ, Nagpur, with a planned investment of Rs. 10,000 Crore. The project has now been classified as an Ultra Mega Project under the state's Thrust and Hi-Tech Sector Government Policy. The Maharashtra Government has approved a package of incentives on this fixed capital investment, including a 30% capital subsidy (covering technical know-how), 100% stamp duty exemption, electricity duty exemption, interest subsidy up to 4%, power tariff subsidy of Rs. 3 per unit, and land offered at 25% concessional rate in Mihan SEZ/MIDC. The benefits also extend to capital investment made by captive process vendors associated with the project.
Positive for shareholders: the 30% capital subsidy and other concessions significantly reduce the upfront and operating costs of a very large Rs. 10,000 Crore project, improving its economics. However, execution risk remains high given the scale, and investors should track project milestones, land allotment and actual capex deployment.