In order to encourage the dispersal of industries to the less developed areas the State Government has been giving a Package of Incentives to New / Expansion units to set up in the developing region of the state since 1964 under a scheme popularly known as Package Scheme of Incentives. The said scheme was amended from time to time. As per the Government Resolution dated 1st April, 2013, Govt. has declared Package Scheme of Incentives 2013 shall remain in operation from 1st April 2013 to 31st March 2018.
An eligible unit in the Private Sector, State Public Sector / Joint Sector and the Co-operative Sector & Central Public Sector (Only for Mega Project) is considered for incentives under the PSI 2013 Scheme.
The quantum of incentives within the approved limit is decided by the Principal Secretary, Industries on a case to case basis. The Cabinet sub Committee under the chairmanship of the Chief Minister of Maharashtra is having the power to sanction customized package of incentives and offer special / extra incentives for the prestigious Mega Projects / Ultra Mega Project on a case to case basis.
As per Government Resolution the projects with Fixed Capital Investment (FCI) or employing direct regular persons according to the threshold limits stated in the below table will be classified as Mega Projects / Ultra Mega Project:
Type of Unit | Taluka/Area Classification | Minimum Fixed Capital Investment (₹. In Crores) | Minimum Direct Employment (Nos.) |
Mega Project | A & B | 750 | 1,500 |
C | 500 | 1,000 | |
D & D+ | 250 | 500 | |
No Industry Districts & Naxalism Affected Area | 100 | 250 | |
Ultra Mega Project | Entire State | 1,500 | 3,000 |
Following services under Package Scheme of Incentives (PSI) are available online:
The Financial Incentives for MSME/LSI, under PSI-2013 are as follows:
New MSME/LSI unit be eligible for a basket of incentives & the total quantum is linked with Fixed Capital Investment. The total quantum of Incentives & the eligibility period is provided that-
Taluka / Area Classification | Ceiling as % of Fixed Capital Investment | Number of years | ||
Micro & Small Manufacturing Enterprises | Medium Manufacturing Enterprises / LSI | Micro & Small Manufacturing Enterprises | Medium Manufacturing Enterprises / LSI | |
A | - | - | 7 | 7 |
B | 20 | - | 7 | 7 |
C | 40 | 30 | 7 | 7 |
D | 70 | 40 | 10 | 7 |
D+ | 80 | 50 | 10 | 7 |
No Industry District | 90 | 70 | 10 | 7 |
Naxalism Affected Area | 100 | 80 | 10 | 7 |
The total quantum of incentives for the food/agro processing units covered as per GR, will be 10% over and above the limit mentioned above and such units will get one more year of eligibility to avail of the incentives.
The eligible New/Expansion Micro, Small and Medium Manufacturing Enterprises, which are set up in different parts of the State, will be eligible for Industrial Promotion Subsidy(IPS) as follows:
SN | Taluka/Area Classification | Quantum of Industrial Promotion Subsidy Every Year |
1. | Naxalism Affected Area | VAT on local sales minus input Tax Credit (ITC) or zero whichever is more + CST payable + 100% of ITC. |
2. | No Industries District | VAT on local sales minus ITC or zero whichever is more + CST payable + 75% of ITC. |
3. | Entire Vidharbha and Marathwada (Other than Sr.No. 1 & 2) | VAT on local sales minus ITC or zero whichever is more + CST payable + 65% of ITC. |
4. | Group D+ Taluka (Other than Sr.No. 1 & 3) | VAT on local sales minus ITC or zero whichever is more + CST payable + 50% of ITC. |
5. | Group D Taluka (Other than Sr.No. 1 & 3) | VAT on local sales minus ITC or zero whichever is more + CST payable + 40% of ITC. |
6. | Group C Taluka | VAT on local sales minus ITC or zero whichever is more + CST payable + 30% of ITC. |
7. | Group B Taluka | VAT on local sales minus ITC or zero whichever is more + CST payable + 20% of ITC. |
The eligible New/Expansion Large Scale Manufacturing Units, which are set up in different parts of the State, will be eligible for Industrial Promotion Subsidy (IPS) as follows:
SN | Taluka/Area Classification | Quantum of Industrial Promotion Subsidy Every Year |
1. | Naxalism Affected Area | 100% VAT on local sales minus input Tax Credit (ITC) or zero whichever is more + CST payable. |
2. | No Industries District, Vidarbha and Marathwada | 90% VAT on local sales minus ITC or zero whichever is more + CST payable. |
3. | Group D+ Taluka (Other than Sr.No. 1 & 3) | 80% VAT on local sales minus ITC or zero whichever is more + CST payable. |
4. | Group D Taluka (Other than Sr.No. 1 & 3) | 70% VAT on local sales minus ITC or zero whichever is more + CST payable. |
5. | Group C Taluka | 60% VAT on local sales minus ITC or zero whichever is more + CST payable. |
Existing/New Micro & Small Manufacturing Enterprises, Medium Enterprises / LSI (including manufacturing IT/BT) units, qualifying as Expansion / Diversification units, will also be eligible to get incentives for Expansion /Diversification, equivalent to 75% of the incentives admissible for New Units. The eligibility period for availing of the incentives will however be reduced by one year in case of Expansion /Diversification units.
All new eligible Micro, Small & Medium Manufacturing Enterprises in areas other than Group ‘A’ are eligible for interest subsidy. The Interest Subsidy is payable only on the interest actually paid to the Banks and Public Financial Institutions on the term loan for acquisition of fixed capital assets. The Amount of interest subsidy is effective rate of interest (after deducting interest subsidy receivable any institution / under any Govt. of India Scheme or 5% p.a. whichever is less).
Eligible new units in C, D, D+ areas and No Industry District(s) and Naxalism Affected Area are exempted from payment of Electricity Duty during the eligibility period not exceeding 15 years. In Group A & B area, 100% Export Oriented Units (EOUs), Information Technology (IT) and Bio-Technology (BT) units are also be exempted from payment of Electricity Duty for a period of 7 years.
New as well as units undertaking Expansion / Diversification are exempted of payment of stamp duty in C, D, D+ Talukas, No Industry District and Naxalism Affected Areas. However, in A and B areas, Stamp Duty exemption is available for BT & IT manufacturing units in Public Parks , BT & IT manufacturing units in private parks and for Mega Project is 100%, 75% & 50% respectively.
Eligible New Micro, small and Medium Enterprises (MSME), except the units in Group ‘A’ areas, are eligible for power tariff subsidy. The subsidy to the tune of ₹ 1/- per unit for the Units located in Vidarbha, Marathwada, North Maharashtra and the Districts of Raigad, Ratnagiri and Sindhudurg in Konkan Region and ₹ 0.50 per unit for the Units in other areas of the State for a period of 3 years from the date of commencement of commercial production, for the energy consumed and paid.
The followings are the incentives to promote quality competitiveness, research and development, technology upgradation, Water & Energy Conservation, Cleaner Production & Credit Raring.
75% of the cost of carrying out credit rating by small industries development Bank of India / Government accredited Credit Rating Agency limited to ₹ 40,000 only.
For the purpose of this scheme Maharashtra state has classified in to different area such as:
Group A | Industrially Developed area |
Group B | Where some Industrial development has taken place but less than areas under Group A |
Group C | Less developed other than those covered under Group B |
Group D | Lesser developed area not covered under Group A, B, C |
Group D+ | Least developed area not covered under Group A, B, C, D |
No Industry District (NID) | As notified in Annexure I of the GR |
Naxalism Affected Area (NAA) | As described in GR NAVIKA-2008/C.R. 209/Ka. 1416, Dated 31st May, 2009 |
On the basis of group under which industrial unit in situated, different types of incentives are available to that industrial unit. More we go to less industrially developed area will get more incentives.
Type of Units | Investment Required in Plant & Machinery |
Micro enterprises | Up to ₹ 25 Lakhs |
Small Enterprises | ₹ 25 Lakhs - ₹ 5 Crores |
Medium Enterprises | ₹ 5 Crores - ₹ 10 Crores |
Large Scale Units | ₹ 10 Crores and above |
Group | Investment Basis | Employment Basis | |
Ultra Mega Project | Entire State | More than ₹ 1500 Crores | More than 3000 persons |
Mega Project | A & B | More than ₹ 750 Crores | More than 1500 persons |
Mega Project | C | More than ₹ 500 Crores | More than 1000 persons |
Mega Project | D & D+ | More than ₹ 250 Crores | More than 500 persons |
Mega Project | NID & NAA | More than ₹ 100 Crores | More than 250 persons |
Mega project qualifying under Employment criteria shall have direct employment of minimum 75% local persons within 2 years from the date of commercial production
A New unit shall mean a unit which is setup for the first time by an entity in Private Sector/ Co-op sector/ Central or State Public Sector/ Joint Sector in any taluka, where there is no existing set up by the said entity.
The three conditions to be satisfied:
Micro, Small & Medium Enterprises | Not less than ₹ 25 Lakhs |
Large Enterprises | Not less than ₹ 500 Lakhs |
GR's and Notifications | |
GR Mega Project Approval - 05.03.2015 | View Details |
GR Eligibility to backward integration investment_declaration of incentive period - 12.09.2014 |
View Details |
PSI Circular No 4 - 26.08.2014 | View Details |
GR Delegation of power to Principal Secy. (I) to approve Mega projects under PSI - 07 - 19.03.2014 |
View Details |
GR Classification of Chincholi area in MIDC in D+ class - 01.03.2014 | View Details |
Circular PSI Procedure of issuing Eligibility Certificate LSI - 13.01.2014 | View Details |
Circular PSI Procedure of issuing Eligibility Certificate for Stamp Duty Exemption - 27.11.2013 |
View Details |
Circular PSI Procedure of issuing Eligibility Certificate MSME - 27.11.2013 | View Details |
GR Modalities for sanction and disbursement of incentives to strengthen MSME and LSI - 19.10.2013 |
View Details |
GR Modification to IPS GR dt.03.12.2008 - 30.08.2013 | View Details |
GR Consideration of investment period of Mega projects under PSI 2007 and 2013 - 12.08.2013 |
View Details |
Modalities for sanction and Disbursement of Employer’s contribution to Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI) Under Para 5.9 of Package Scheme of Incentives 2007 - 12.08.2013 | View Details |
Corrigendum PSI 2013 Para 4.7 - 27.06.2013 | View Details |
GR Recovery of incentives fron closed units under PSI - 25.06.2013 | View Details |
GR PSI 2013 - 01.04.2013 | View Details |
GR Closure of PSI 2007 - 30.03.2013 | View Details |
GR Extension to PSI 2007 - 29.03.2012 | View Details |
GR Extension to PSI 2007 up to 31.03.2012 - 31.01.2012 | View Details |
GR Extension to PSI 2007 up to 31.01.2012 - 30.11.2011 | View Details |
GR Modifications of Para 1.1 and 5.10 of PSI 2007 - 31.10.2011 | View Details |
GR Extension to PSI 2007 up to 30.11.2011 - 30.08.2011 | View Details |
GR Extension to PSI 2007 up to 31.08.2011 - 30.06.2011 | View Details |
GR Modalities for Cleaner Production Measures under PSI 2007 - 18.06.2011 | View Details |
GR Procedural Rule for Change in constitution - 18.06.2011 | View Details |
GR Modalities for Royalty Refund under PSI 2007 - 17.06.2011 | View Details |
GR Extension to PSI 2007 upto 30.06.2011 and change in criteria of Mega Projects - 22.03.2011 |
View Details |
Corrigendum PSI 2013 Annexure III - 25.10.2010 | View Details |
GR Modifications to para 5.2_5.1(A)_3.6(A)for the yr 2010-11 - 31.07.2010 | View Details |
GR Procedural Rules for Disposal of Assets - 18.07.2010 | View Details |
GR Procedural Rule for recovery from closed units under PSI - 12.07.2010 | View Details |
GR Modification to Para 5.8 of PSI 2007 - 03.06.2010 | View Details |
GR Grant of SCI under PSI2001 to Malegaon Taluka - 27.10.2009 | View Details |
GR Incentives to Powerloom and Gament Inds.under PSI 2001 - 22.05.2009 | View Details |
GR Electricity Duty exemption to Vidarbha and Marathwada - 02.03.2009 | View Details |
GR IPS 2007 for Non-Mega Industries - 04.12.2008 | View Details |
GR IPS 2007 for Mega Industries - 03.12.2008 | View Details |
GR Status D+_Tal.Malegaon - 30.04.2007 | View Details |
GR Increase in Project Cost_PSI-1988_1993 - 19.04.2007 | View Details |
GR PSI - 01.04.2007 | View Details |
Type of Units | Investment Required (In Plant & Machinery) |
Micro Enterprises | Up to ₹ 25 lakhs |
Small Enterprises | ₹ 25 lakhs - ₹ 5 Crores |
Medium Enterprises | ₹ 5 Crores – ₹ 10 Crores |
Large Scale Enterprises | ₹ 10 Crores and above |
Zone | Investment Basis (in ₹ Crores) OR | Employment Basis (Numbers) |
Ultra Mega Project | 1500 | 3000 Local Persons |
A & B | 750 | 1500 Local Persons |
C | 500 | 1000 Local Persons |
D & D+ | 250 | 500 Local Persons |
NID and NAA | 100 | 250 Local Persons |
A New unit shall mean a unit which is setup for the first time by an entity in private Sector/ co-op sector/ Central or State public sector/ Joint sector in any taluka, where there is no existing unit set up by the said entity.
Product manufactured by Enterprises as considered under project scheme approved by the concerned implementing agency together with by products/ scrap & by-product generated as incidental during the main production activity.Units will be allowed Inclusion of related items (i.e. same line of finished product mix/same finished product range/category) freely during EC period with prospective effect.
Fixed Assets shall mean and include:
Type of Units | Investment Period |
For Micro & Small Enterprise | 3 Years |
For Medium & Large Enterprise | 4 Years |
For Mega Enterprise | 5 Years |
The maximum quantum of this subsidy will be based on certain percentage of the fixed capital investment.
Area | Ceiling limit % of Fixed Assets admissible investment |
Number of years | ||
Micro, Small & Medium Unit | Large Unit | Micro, Small & Medium Unit | Large Unit | |
A | -- | -- | 7 Years | 7 Years |
B | 20% | -- | 7 Years | 7 Years |
C | 40% | 30% | 7 Years | 7 Years |
D | 70% | 40% | 10 Years | 7 Years |
D+ | 80% | 50% | 10 Years | 7 Years |
No Industry District | 90% | 70% | 10 Years | 7 Years |
Naxalism Affected Areas | 100% | 80% | 10 Years | 7 Years |
In care of expansion / diversification the incentives will be 75% of above mentioned celling limit and no. of years will be reduced by 1 year.
In case of expansion / diversification the incentives will be 75% of above mentioned celling limit and no. of years will be reduced by 1 year
Area | Ceiling limit % of Fixed Assets admissible investment | |
Micro, Small & Medium Unit | Large Unit | |
A | -- | -- |
B | 100% of Net MVAT + 100% of CST payable + 20% of ITC | -- |
C | 100% of Net MVAT + 100% of CST payable + 30% of ITC | 60% of Net MVAT + 100% of CST payable |
D (other than NID, NAA & Entire Vidarbha and Marathwada) | 100% of Net MVAT + 100% of CST payable + 40% of ITC | 70% of Net MVAT + 100% of CST payable |
D+ (other than NID, NAA & Entire Vidarbha and Marathwada) | 100% of Net MVAT + 100% of CST payable + 50% of ITC | 80% of Net MVAT + 100% of CST payable |
Entire Vidarbha and Marathwada (other than NID & NAA) | 100% of Net MVAT + 100% of CST payable + 65% of ITC | 90% of Net MVAT + 100% of CST payable |
No industry district (NID) | 100% of Net MVAT + 100% of CST payable + 75% of ITC | 90% of Net MVAT + 100% of CST payable |
Naxalism Affected Areas | 100% of Net MVAT + 100% of CST payable + 100% of ITC | 100% of Net MVAT + 100% of CST payable |
The Interest subsidy will be payable only to New unit on the interest actually paid to bank or Public financial institutions on term loan for acquisition of fixed capital asset. The amount of interest subsidy will be 5% p.a. The quantum of Interest subsidy will be maximum to the extent of bills paid for electricity consumed by unit during the relevant year.
Area | Micro, Small & Medium Scale Units | |
Maximum Limit | Exempt Interest Rate | |
A | -- | -- |
B | Electricity bill paid p.a. | 5% |
C | Electricity bill paid p.a. | 5% |
D | Electricity bill paid p.a. | 5% |
D+ | Electricity bill paid p.a. | 5% |
No industry district | Electricity bill paid p.a. | 5% |
Naxalism Affected Areas | Electricity bill paid p.a. | 5% |
As per the Bombay electricity duty Act 1958. Eligible New Unit will be exempted from payment of Electricity duty charged for particular period mention as under.
Area | % Exemption for Electricity Duty | Maximum Period |
A | -- | -- |
B | -- | -- |
C | 100% | 15 Years |
D | 100% | 15 Years |
D+ | 100% | 15 Years |
No industry district | 100% | 15 Years |
Naxalism Affected Areas | 100% | 15 Years |
A & B (EOU, IT and BTP) | 100% | 7 Years |
New as well as units under expansion will be exempted from payment of stamp duty till new policy is announced
Area | % Exemption for Stamp Duty | Maximum Period |
A | -- | -- |
B | -- | -- |
C | 100% | Till 31st March 2018 |
D | 100% | Till 31st March 2018 |
D+ | 100% | Till 31st March 2018 |
No industry district | 100% | Till 31st March 2018 |
Naxalism Affected Areas | 100% | Till 31st March 2018 |
IT, Boi-Tech in Public park in A & B | 100% | Till 31st March 2018 |
IT, Boi-Tech in Private park in A & B | 75% | Till 31st March 2018 |
Mega Project | 50% for first Conveyance deed only | Till 31st March 2018 |
New Micro, Small & Medium Enterprises will be eligible for power tariff subsidy.
Area | % Exemption for Electricity Duty | Maximum Period |
A | -- | -- |
B | ₹ 0.50 per unit | 3 Years |
C | ₹ 0.50 per unit | 3 Years |
D | ₹ 0.50 per unit | 3 Years |
D+ | ₹ 0.50 per unit | 3 Years |
Vidharbha, Marathwada, North Maharashtra, Raigad, Ratnagiri & Sindhudurg | ₹ 1.00 per unit | 3 Years |
The Operative period of the eligible Industrial Unit will commence from the event of the disbursement of last installment of incentive such as Sales Tax Benefits, Special Capital Incentives, Industrial Promotion Subsidy etc, is received as the case may be.
SN | Category | Period |
1. | Small Scale Industry / Micro & Small manufacturing Enterprise | 5 Years |
2. | Medium / Large Scale Industry / Medium Manufacturing Enterprises | 7 Years |
3. | Mega Projects | 10 Years |