Nibe Gains Mega Project Status: What It Means for the Small-Cap Aerospace

Nibe Ltd’s Share Price Performance

The share price of small-cap aerospace and defence company Nibe Ltd increased by 0.72% to ₹1,554 as of 9:41 AM on January 13, 2025. The stock has delivered staggering returns of 3,039.17% over three years and 84.5% in the past year. Here’s a closer look at what the “Mega Project” status means for the company.

Mega Project Status: A Game-Changer for Nibe Ltd

Nibe Ltd’s proposed manufacturing facility at MIDC, Shirdi, Ahmednagar, Maharashtra, has achieved a significant milestone by receiving “Mega Project” status under the Package Scheme of Incentives Policy, 2019, granted by the Government of Maharashtra’s Department of Industries, Energy, Labour, and Mining.

Details of the Project

The project involves setting up a cutting-edge facility for producing various aircraft components, such as vertical stabilisers, jet engines, cockpits, and fuselages. The revised plan in January 2025 brought the estimate for the project to ₹800 crore and will utilise 300 acres of land provided by MIDC, Shirdi.

Benefits of Mega Project Status

The “Mega Project” status comes with several advantages aimed at bolstering industrial development:

1. Industrial Promotion Subsidy:
   • Subsidies equal to 100% of eligible investments within 5-year starting April 1, 2025, or up to 100% of SGST payable in the same period, whichever is lower.
2. Power Tariff Subsidy:
   • Financial assistance to offset power tariff costs.
3. Cost Reimbursements:
   • Reimbursement or exemption for costs like stamp duty, electricity expenses, and employee provident fund contributions.

Next Step for Nibe Ltd

While the “Mega Project” status provides significant benefits, it comes with prerequisites, including regulatory approvals. Meeting these conditions will be essential for Nibe Ltd to unlock the full potential of this status and achieve its strategic goals.

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