Package Scheme of Incentives - Financial Assistance

The Package Scheme of Incentives (PSI) 2019 is the flagship fiscal assistance programme of the Government of Maharashtra. It offers a structured set of financial incentives, subsidies, and tax reimbursements to encourage new industries, expansions, and diversification projects within the state. The scheme aims to promote balanced regional growth, employment generation, and investment in backward regions through differential incentive rates based on taluka classification.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Comprehensive Financial Package: Combines Industrial Promotion Subsidy (IPS), Interest Subsidy, Electricity Duty Exemption, Stamp Duty Waiver, and Power Tariff Incentives.
Zonal Differentiation: The state is divided into Zone A to D+, No-Industry Districts, Naxal-Affected Areas, and Aspirational Districts. Backward zones receive higher benefits and longer eligibility.
Support for MSMEs: Simplified claim process, higher reimbursement percentage, and additional grant for women/SC-ST entrepreneurs.
Employment Focus: Incentives are linked to job creation, especially for local youth and women.
Sustainability Push: Green manufacturing, solar energy use, and pollution-control installations qualify as eligible fixed-capital investments.
Balanced Industrial Growth: Encourages dispersal of industries from developed talukas (A & B) to semi-urban and rural districts.

Financial Assistance

Component	Assistance Provided	Detailed Explanation (with example)
Industrial Promotion Subsidy (IPS)	100% of Gross SGST payable on first sale of eligible products billed & delivered within Maharashtra (for eligible MSMEs).	If your eligible MSME sells goods worth ₹2 crore in-state and pays SGST ₹9 lakh on the first sale, IPS can reimburse ₹9 lakh, subject to your basket cap (% of FCI) and yearly disbursement limit.
Interest Subsidy	On term-loan interest actually paid to banks/financial institutions at the effective rate (post any other subsidies) or 5% p.a., whichever is less, and not exceeding the electricity bills paid for that year.	Say you paid ₹10 lakh interest and ₹8 lakh electricity bills; effective interest after other subsidies is 6%. Eligible subsidy = min(5%-equivalent; electricity bill) → ₹8 lakh cap for the year.
Electricity-Duty Exemption	Full exemption from Electricity Duty for eligible new units in C/D/D+/No-Industry/Aspirational/Naxal areas; in A/B only for eligible 100% EOU/IT-Mfg/BT-Mfg units (7 years).	A new unit in D+ gets duty-free power during eligibility. An IT-manufacturing unit in A can also get 7-year exemption. Separate notifications are issued by the Energy Dept.
Stamp Duty Waiver	Exemption during investment period for acquiring land/lease/loan documents in C/D/D+/No-Industry/Aspirational/Naxal areas; in A/B, BT/IT Mfg in notified parks get 100%/75% respectively.	If you buy land in C area, stamp duty is waived in the investment period. In A area, an IT-Mfg unit in a public IT park gets 100% waiver.
Power-Tariff Subsidy	₹1.00/unit in Vidarbha, Marathwada, North Maharashtra, Raigad/Ratnagiri/Sindhudurg, No-Industry, Naxal, Aspirational areas; ₹0.50/unit elsewhere; for 3 years from start of production; Group A not eligible.	If you consume 8 lakh kWh in year-1 in Marathwada, you can claim ₹8 lakh (₹1/unit) subject to basket limits and annual cap.

Eligibility Criteria

Who Can Apply:

New industrial units and service enterprises established after PSI 2019 notification.
Existing units undertaking expansion/diversification with fresh fixed-capital investment.
Units registered and operating within Maharashtra.
Industries falling under eligible manufacturing or service sectors

Who Cannot Apply:

Units in non-eligible sectors (e.g., trading, real estate, tobacco, liquor manufacturing etc.).
Units outside Maharashtra or those not fulfilling minimum investment/employment criteria.
Units already availing similar benefits for same assets under previous policies (PSI 2013 or central schemes).

Documents Required

Udyam/MSME registration certificate
Detailed Project Report (DPR)
Land and building ownership or lease deed
Fixed Capital Investment Certificate (CA verified)
Loan sanction/disbursement papers (for interest subsidy)
Sales tax or SGST payment proof (for IPS)
Employment register and ESIC details
Electricity connection proof (for duty exemption)
PAN/GST certificate, bank details, and self-declaration of ownership

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

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Option 2: Government Application Process

Register your enterprise on the MAITRI portal (https://maitri.mahaonline.gov.in).
Upload project details including investment, employment, and zone classification.
Apply for the relevant financial components (IPS, Interest Subsidy etc.) through online forms.
Submit DPR, CA-certified investment proof, and first-sale or loan disbursement records.
Directorate of Industries verifies and sanctions benefits as per eligibility and category.

Option 3: Offline Submission
Applications may also be filed through District Industries Centre (DIC) for SMEs in rural zones

Frequently asked questions

What is the main purpose of PSI-2019?

PSI-2019 aims to encourage industrial investment in Maharashtra, especially in less developed regions, by offering fiscal incentives to eligible units. The scheme supports new investment, expansion and diversification while promoting employment generation and balanced regional development.

Is this a central government scheme or a state government scheme?

This is a Maharashtra state government scheme administered by the Industries, Energy and Labour Department. It applies only within the state of Maharashtra and follows the state’s area classification, project category and implementing agency structure for sanction and disbursement.

Can an existing MSME apply under the scheme?

Yes. An existing MSME can apply if it undertakes a qualifying expansion or diversification project as defined in the scheme guidelines. The unit must maintain proper records for the additional investment and ensure compliance with the eligibility conditions mentioned in the policy.

Is an Eligibility Certificate compulsory?

Yes. Most incentives under PSI-2019 can be claimed only after obtaining an Eligibility Certificate from the implementing authority. The certificate confirms that the unit meets the scheme requirements and specifies the incentive period and entitlement limits.

What happens if the eligibility application is filed late?

The scheme requires the eligibility application to be submitted on or before the date of commencement of commercial production. If there is a delay in submission, the eligibility period and total incentive entitlement may be reduced proportionately according to the rules.

Are all sectors eligible under PSI-2019?

No. While many manufacturing and industrial sectors are eligible, some industries are specifically excluded. These include liquor manufacturing, tobacco products, gutka and pan masala manufacturing, and any product that has been banned by the Central or State Government.