Maharashtra industrial incentives should be delivered upfront rather than reimbursed years after an investment, state minister Ashish Jaiswal said at a business summit in Nagpur on October 23, 2026. He argued that delayed subsidy payments can strain businesses and undermine industrial growth.

Key Takeaways

  • Jaiswal urged industry associations to propose ways to restructure incentive schemes.
  • A separate land policy framework is nearly finalised and is expected to open for suggestions, the minister said.
  • Industry representatives highlighted land shortages and financing constraints in Vidarbha.

Maharashtra industrial incentives and payment delays

Jaiswal said investors often rely on promised government support when planning projects and arranging finance. He called for mechanisms that would provide incentives upfront and reduce delays caused by government procedures.

The minister asked industrial associations to submit concrete proposals. His comments were a call to review the existing system, not an announcement that payment rules had changed.

Land framework would seek farmer participation

Jaiswal said the state had prepared a policy framework intended to simplify land acquisition through mutual consent, government land banks, leasing and land-for-land compensation. The proposed framework would allow tripartite agreements between farmers, industries and the government.

The minister said leasing could reduce the initial capital needed to establish industrial units. He described the policy as nearly finalised and said it would be opened for suggestions before being taken forward.

Vidarbha businesses flag land and funding pressures

Julfesh Shah, chairman of the Vidarbha chapter of the Chamber of Small Industry Associations, said large industrial arrivals had increased demand for land, with some seeking plots of around 500 acres.

Kirit Joshi, co-founder of Spacewood, said many local micro, small and medium-sized enterprises make intermediate products or supply larger manufacturers and face a scarcity of funds. Manohar Pote, Nagpur regional head of the Maharashtra Industrial Development Corporation, called for local vendor networks that would let smaller businesses participate in major manufacturers’ supply chains.

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