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Package Scheme of Incentives (PSI)

  • Overview
  • Incentives
  • Eligibility Criteria
  • Notifications
  • FAQs

Overview

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.


Mega Projects / Ultra Mega Project

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:

  1. Stamp Duty Exemption Certificate (SDEC) Apply Now
  2. Grant of Eligibility Certificate Apply Now
  3. Sanction of Incentives Apply Now

Incentives

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.

  1. Industrial Promotional Subsidy (IPS) for MSMEs
  2. 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.

  3. Industrial Promotional Subsidy (IPS) for Large Scale industries
  4. 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.

  5. Expansion/Diversification Units
  6. 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.

  7. Interest Subsidy
  8. 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).

  9. Exemption from Electricity Duty
  10. 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.

  11. Waiver of Stamp Duty
  12. 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.

  13. Power Terrif Subsidy
  14. 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.

  15. Strengthening the Micro, Small and Medium Manufacturing Enterprises
  16. The followings are the incentives to promote quality competitiveness, research and development, technology upgradation, Water & Energy Conservation, Cleaner Production & Credit Raring.

    1. New MSME’s and expansion thereof in all categories of areas eligible for following incentives.
      1. 5% subsidy on capital equipment for technology upgradation subject to maximum of ₹ 25 lakhs.
      2. 75% subsidy on the expenses incurred on quality certification limited to ₹ 1 lakhs.
      3. 25% subsidy on capital equipment for cleaner production measures limited to ₹ 5 lakhs.
      4. 75% subsidy on the expenses incurred for national patent registration limited to ₹ 10 lakhs and ₹ 20.00 lakhs for the International patents.
    2. Incentives for Credit Rating of MSME’s in all categories of areas.
    3. 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.

    4. New MSMEs, LSI and expansion thereof will be eligible for following incentives in all categories of areas.
      1. 75% of cost of water audit limited to ₹ 1.00 lakhs.
      2. 75% of cost of energy audit limited to ₹ 2.00 lakhs.
      3. 50% of cost of Capital Equipment under the measure to conserve / recycle water limited to ₹ 5.00 lakhs.
      4. 50% of cost of Capital Equipment for improving energy efficiency limited to ₹ 5.00 lakhs.

Eligibility Criteria

  1. Eligibility of Units (Para 1.2 of PSI-2013)
    1. Industries listed in the first schedule of the industries (Development and regulation ) Act, 1951or letter of intent under license provision of said Act, as amended from time to time
    2. Manufacturing Enterprise as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006)
    3. Information Technology (IT) manufacturing units registered with Directorate of Industries or MIDC or Development Commissioner (SEEPZ) or STPI in the State
    4. Bio-technology Manufacturing units
    5. Cold Storages
    6. Machanized Food/Agro Processing Industries
    7. Central Public Sector Units which qualify as Mega Project
  2. Classification of Area (Para 1.3 of PSI-2013)
  3. 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.

  4. Classification of type of units, Investmentand Employment (Para 2.2 of PSI-2013)
    1. MSMEs / Large Scale Units
    2. 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
    3. Mega project
    4. 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

  5. Criteria for New as well as Existing Unit
    1. Existing Unit ( Para 2.3 of PSI-2013)
      • Which has been set up and in production prior to 01.04.2013, or
      • Which has been granted an Eligibility Certificate or availed of any incentives under any ofearlier scheme, or
      • Which has filed valid application for EC under PSI 2007 with any of the implementing agencies on or before 31st March 2013.
    2. New Unit(Para 2.4 of PSI-2013)
    3. 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.

      • Which is not an existing Unit
      • At least one effective step is completed on or after date of this Government Resolution for setting up a unit i.e. 01/04/2013.
      • It is not formed as a result of re-establishment, mere change of ownership, change of constitution, reconstruction or revival of an existing unit.
  6. Eligibility Criteria for Expansion / Diversification of unit:(Para 2.5 of PSI 2013)
  7. The three conditions to be satisfied:

    • Additional Investment: Additional Investment should exceed 25% of the Gross Fixed Capital Investment of the Provision financial year.
    • Micro, Small & Medium Enterprises Not less than ₹ 25 Lakhs
      Large Enterprises Not less than ₹ 500 Lakhs
    • Expansion or Expansion Cum Diversification should result in Increase in Installed capacity by 25%.
    • Employment should increase in Non-supervisory category by 10% of which 80% should be local Persons
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

Frequently Asked Questions - Package Scheme of Incentives (PSI)

What is the objectives of Package Scheme of Incentives?
  • Scheme was introduced in 1964 against GR. No. IDL-7064/IND-1
  • To encourage the dispersal of industries to the less developed areas of the State
  • To Generate employment in less industrial areas / zone
  • To attract more investment in state
What is the operative period of PSI-2013?
  • PSI 2013 is operative from 1st April, 2013
  • Scheme is operative till 31st March, 2018
On what parameters incentives are considered under PSI-2013?
  • Area in which unit is or proposed to be situated
  • Amount of investment
  • Number of employment generation of the unit
  • Type of unit i.e. Small, Medium, Large, Mega and Ultra mega unit
What is the classification of industry under PSI-2013?
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
What is the qualifying criteria for Mega Project? (as para 2.2 of PSI 2013)
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
What is the definition of existing unit under PSI - 2013?
  • Unit has been set up and in production prior to 01.04.2013
  • Unit has been granted an EC or availed of any incentives under any of earlier scheme
  • Unit has filed valid application for EC under PSI 2007 with any of the implementing agencies on or before 31st March 2013.
What is the definition of new unit under PSI - 2013?

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.

  • Which is not an existing Unit
  • At least one effective step is completed on or after date of this GR for setting up a unit i.e. 01/04/2013.
  • It is not formed as a result of re-establishment, mere change of ownership, change of constitution, reconstruction or revival of an existing unit.
What is the qualifying criteria for expansion / diversification unit under PSI - 2013?
  1. Additional Investment:
    • Micro & Small & medium Enterprises - Not less than 25 Lacs
    • Large Enterprises - Not less than 500 Lacs
  2. Additional Investment to exceed 25% of the Gross Fixed Capital Investment of the Provision financial year.
  3. Expansion or Expansion Cum Diversification to result in Increase in Installed capacity by 25%.
  4. Increase in Non supervisory employment by 10% of which 80% should be local population.
What is the definition of finished product?

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.

What are the components fixed assets under PSI - 2013?

Fixed Assets shall mean and include:

  • Land, Site Development and Building
  • Plant & Machinery plus Installation
  • Pre-operative Expenses Capitalized
  • Technical Know How Fees
  • Amount paid to MSEDCL for supply of power to the Eligible units for Power Supply (Investment in intangible assets including pre-operative expenses, interest capitalized, technical knowhow, deposits paid to utility services etc put together considered only to the extent of to 10% of the Project Cost for the purpose of incentives)
Which assets are considered eligible under PSI - 2013?
  • Only New Fixed Assets acquired at site and duly paid for, as per the project/scheme accepted by the Implementing agency based on the project appraisal done by the lender /Bank and SICOM in case of self financed projects.
  • Second Hand Imported Plant with residual life not less than 10 yrs. duly certified by approved valuer.
What is the investment period under PSI-2013?
Type of Units Investment Period
For Micro & Small Enterprise 3 Years
For Medium & Large Enterprise 4 Years
For Mega Enterprise 5 Years
Which units are eligible for investment under PSI-2013?(as per para 1.2 of PSI 2013)
  • Industries listed in the first schedule of the industries (Development and regulation ) Act, 1951or letter of intent under license provision of said Act, as amended from time to time
  • Manufacturing Enterprise as defined in the Micro, Small and Medium Enterprises Development Act, 2006(MSMED Act, 2006)
  • Information Technology (IT) manufacturing units registered with Directorate of Industries or MIDC or Development Commissioner (SEEPZ) or STPI in the State,
  • Bio-technology Manufacturing units
  • Cold Storages
  • Mechanized Food/Agro Processing Industries
  • Central Public Sector Units which qualify only as Mega Project
What are the effective steps under PSI-2013?(as per para 2.9 of PSI 2013)
  • Effective possession of land with registered deed of purchase or lease and with physical possession and clear title
  • Registration, in case of company, firm, trust, society or co-operative society
  • Entrepreneur’s Memorandum from DIC or Industrial Entrepreneur’s Memorandum under Industries (Development & Regulation) Act, 1951 or Letter of Intent under license provision of said Act.
  • Enterprises Memorandum / Letter of Intent / Registration for IT units from Directorate of Industries or MIDC / Letter of Intent from the Government of India and /or permission from the State Government for setting up / shifting of the Unit, if such permission is required to be obtained.
What are the incentives, a unit can avail under PSI-2013?
  • Industrial Promotion Subsidy (IPS) i.e. Subsidy linked with Capital Investment and Sales Tax (4.3) & (4.4)
  • Interest Subsidy (4.5)
  • Exemption from electricity duty (Applicable to New Unit only) (4.6)
  • Power Tariff Subsidy (4.8)
  • Waiver of stamp duty (4.7)
  • Additional incentives to strengthen MSME and Large Scale units (4.9)
  • Incentives for Mega and Ultra Mega as sanctioned by High Power Committee (5.0)
  • Additional quantum of incentives food and agro based industries [4.1(b)]
What will the quantum of incentives under PSI-2013?

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.

What is eligibility of IPS under PSI-2013?( as per para 4.3 & 4.4 of PSI 2013)?

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
What will be the incentives of interest subsidy under PSI-2013? (as per para 4.5 of PSI 2013)

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%
What is the period of electricity duty exemption under PSI – 2013?(as per para 4.6 of PSI 2013)

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
What is the percentage of Stamp duty exemption eligible under PSI – 2013? (as per para 4.7 of PSI 2013)

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
What will be the quantum of power tariff incentive under PSI – 2013? (as per para 4.8 of PSI 2013)

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
What are the additional incentives eligible under PSI – 2013? (as per para 4.9 of PSI 2013)
  1. Micro, Small and Medium Scale Units will get:
    • 5% subsidy on capital equipment for technology up gradation subject to maximum of ₹ 25 lakhs
    • 75% subsidy on the expenses incurred for quality certification limited to ₹ 1 Lakh
    • 25% subsidy on capital equipment for cleaner production measures limited to ₹ 5 Lakhs
    • 75% subsidy on the expenses incurred for patent registration limited to ₹ 10 Lakh for National Patents and ₹ 20 Lakhs for International Patents.
    • 75% cost of credit rating carried out by Small Industries Development Bank of India/Government accredited credit rating Agency limited to ₹ 40,000
  2. Micro, Small, Medium and large Scale Units will get:
    • 75% of cost of water audit limited to ₹ 1.00 Lakhs
    • 75% of cost of energy audit limited to ₹ 2.00 Lakhs
    • 50% of cost of capital equipment under the measures to conserve/recycle water, limited to ₹ 5.00 Lakhs
    • 75% of cost of capital equipment for improving energy efficiency, limited to ₹ 5.00 Lakhs
What is the operative period of the eligible unit?

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
Content owned by Directorate of Industries, Government of Maharashtra. Last Updated On: 11.02.2016