GOVERNMENT OF MAHARASHTRA • DIRECTORATE OF INDUSTRIES
Administered under Government Resolution No. PSI-2019/CR-14/IND-II, the Package Scheme of Incentives (PSI 2019) is Maharashtra’s flagship industrial promotion policy, offering non-dilutive capital subsidies up to 100% of Eligible Fixed Capital Investment, 100% Gross SGST reimbursement for up to 10 years, and complete electricity duty exemptions.
1. Policy Architecture & Regional Industrial Zoning
Maharashtra’s industrial policy is formulated to decentralize manufacturing expansion away from saturated tier-1 regions (Mumbai, Thane, Pune city) into developing industrial corridors in Marathwada, Vidarbha, Khandesh, and North Maharashtra. Under statutory Section 4 norms, every taluka across Maharashtra’s 36 districts is classified into specific incentive zones:
| Zone Classification | Representative Talukas / Districts | Maximum Subsidy Ceiling (% of FCI) | Incentive Claim Period |
|---|---|---|---|
| Zone A & B | Mumbai MMR, Pune Haveli, Pimpri-Chinchwad | 30% of FCI (Limited benefits) | 7 Years |
| Zone C | Nashik, Kolhapur, Ahmednagar, Satara | 50% of FCI | 8 Years |
| Zone D | Solapur, Sangli, Jalgaon, Dhule | 70% of FCI | 9 Years |
| Zone D+ & Vidarbha / Marathwada | Latur, Nanded, Beed, Osmanabad, Nagpur, Amravati, Gadchiroli | 80% to 100% of FCI | 10 to 12 Years |
2. Eligible Fixed Capital Investment (FCI) Components
The quantum of financial subsidy is strictly linked to verified expenditure incurred during the project implementation period:
- Land Cost: Purchase price or long-term MIDC lease premium paid, up to statutory valuation norms.
- Factory Civil Works: Structural construction costs for industrial sheds, RCC machine foundations, storage silos, and administrative offices directly attached to manufacturing.
- Plant, Machinery & Equipment: New indigenous or imported productive machinery, electrical substations, transformers, captive solar/power generation units, material handling overhead cranes, and laboratory testing equipment.
- Ineligible Items: Second-hand plant machinery without statutory chartered engineer valuation certificate, residential quarters, guest houses, and motor vehicles.
3. Core Basket of Fiscal Incentives
- Gross SGST Reimbursement (Turnover-linked): Up to 100% of the State Goods and Services Tax (SGST) paid on intra-state sales of eligible manufactured goods, without restriction of ITC adjustments.
- Interest Subvention: 5% annual interest rebate on term loans sanctioned by Scheduled Commercial Banks for micro and small industrial units, disbursed for a period of up to 5 years.
- Electricity Duty Exemption: 100% statutory waiver of electricity duty for 7 to 10 years on industrial high-tension (HT) and low-tension (LT) connections from MSEDCL or authorized distribution licensees.
- Power Tariff Concession: Subsidy of ₹1.00 per unit for 3 years for units located in Vidarbha, Marathwada, and North Maharashtra.
- Stamp Duty Exemption: 100% exemption from payment of stamp duty on purchase/lease of land, bank loan mortgages, and hypothecation deeds.
4. Eligibility Certificate (EC) Issuance Protocol
The regulatory approval pathway involves securing the statutory Eligibility Certificate (EC) issued by the General Manager, District Industries Centre (DIC) for MSMEs, or the Directorate of Industries, Mumbai for Mega projects.
Joint Inspection Committee (JIC) officers conduct physical verification of plant machinery serial numbers, power meter installation dates, commercial production invoices, and Chartered Accountant capital expenditure certificates before formal EC sanction.