Introduction: Maharashtra Industrial Subsidy 2019

The Maharashtra Industrial Subsidy 2019 is one of the most progressive state-level policies in India, designed to accelerate industrial growth, attract new investments, and strengthen MSME development across the state. With significant incentives under the Package Scheme of Incentives PSI 2019, the Government of Maharashtra provides financial support through subsidies like Investment Promotion Subsidy (IPS/SGST refund), capital assistance, stamp duty exemption, power tariff subsidy, and sector-specific benefits.

However, securing these incentives requires accurate financial structuring, eligibility planning, documentation, zone classification, and subsidy maximization strategies. That is where experienced consultants like Finraja Consultancy Private Limited help businesses achieve the highest possible subsidy without errors.

Overview of Maharashtra Industrial Subsidy 2019

The Subsidy focuses on driving industrial investments, enabling balanced regional development, boosting MSME competitiveness, and promoting advanced technologies.

Some of the major Subsidy objectives include

• Attracting new investments across manufacturing and services
• Promoting Employment Generation
• Encouraging Mega & Ultra-Mega Projects
• Strengthening MSME sector competitiveness
• Supporting sunrise sectors like EV, Industry 4.0, Biotechnology, Renewable Energy

The Subsidy forms the base for subsidy disbursement through the Package Scheme of Incentives PSI 2019.

Package Scheme of Incentives PSI 2019

PSI 2019 is the subsidy mechanism under which eligible industrial units receive:

• Investment Promotion Subsidy (IPS/SGST Refund)
• Interest Subsidy
• Electricity Duty Exemption
• Stamp Duty Exemption
• Power Tariff Subsidy
• Incentives for Capital Investments
• Employment Subsidies

The subsidy level depends on:

• District classification (A, B, C, D, D+, Naxal/Aspirational districts)
• MSME / Large / Mega Project status
• Type of industry (Thrust Sector vs Non-Thrust Sector)
• Amount of Fixed Capital Investment (FCI)
• Location within MIDC or non-MIDC zones

Maharashtra Industrial Subsidy Highlights

1. Investment Promotion subsidy: IPS – SGST Refund

IPS is the core subsidy under PSI 2019.
 It provides a refund on the SGST paid by eligible manufacturing units.

Refund ranges:

• MSME: 40%–100% of SGST
• Large Units: 30%–70%
• Mega Projects: Negotiated package, up to 100% equivalent with caps

IPS is calculated on:

• Fixed Capital Investment (FCI)
• Eligible Zone category
• Employment generation

2. Stamp Duty Exemption (Up to 100%)

Stamp duty exemption is granted on:

• Land purchase
• Lease deeds
• Loan documents

Higher benefits apply to:

• C, D, D+, and No-Industry Districts
• Women-owned and SC/ST enterprises
• MSMEs

This can significantly reduce project establishment cost.

3. Power Tariff Subsidy

Industries in eligible regions receive reimbursement on electricity bills:

• Typical benefit: ₹0.50 to ₹1.00 per unit
• Tenure varies from 3 to 5 years

This is a strong cost saver for manufacturing units with heavy power consumption.

4. Maharashtra MSME Incentives

MSMEs receive the highest subsidy percentage under PSI 2019:

• Higher IPS percentage
• Capital subsidy for technology upgrades
• Stamp duty waiver
• Power tariff subsidy
• Quality certification support
• Cluster assistance

These benefits enable MSMEs to scale operations quickly.

MIDC Land Allotment Support

MIDC (Maharashtra Industrial Development Corporation) offers:

• Ready industrial plots
• Plug-and-play infrastructure
• Sector-specific parks
• Priority land allotment for thrust sectors & large investments
• Concession rates for eligible MSMEs in select areas

While MIDC allotment increases project eligibility, the process requires expert financial planning to match subsidy norms.

Maharashtra Thrust Sectors 2019

The Subsidy identifies several high-growth and priority sectors eligible for additional benefits:

• Electric Vehicles (EV) & Battery Manufacturing
• Industry 4.0 (AI, IoT, Automation, Robotics)
• Biotechnology & Pharma
• Aerospace & Defence Manufacturing
• Textiles & Technical Textiles
• Agro & Food Processing
• ESDM (Electronics System Design & Manufacturing)
• Renewable & Clean Energy

Projects in thrust sectors receive higher IPS and special incentives.

Agro & Food Processing Incentives

The Subsidy provides strong support for:

• Food processing units
• Cold storage & logistics facilities
• Agro-based industries
• Mega food parks
• Packaging & value-addition units

Incentives include:

• Higher IPS
• Stamp duty exemption
• Interest subsidy
• Support for quality certification
• Cluster/CFC assistance

This category is one of the most subsidized under PSI 2019.

Financial Assessment: Maharashtra Industrial Subsidy 2019

A. Investment Promotion Subsidy (IPS – SGST Refund)

B. Semi-Large Units Incentives

C. Additional Financial Incentives

D. Thrust Sector Benefits

E. Mega & Ultra-Mega Projects

How to Apply for PSI Maharashtra with Finraja Consultancy

While applications for PSI benefits are technically possible, industrial units face challenges like

• Selecting the correct zone classification
• Identifying eligible FCI components
• Preparing DPR with correct PSI cost headers
• Ensuring SGST refund is claimable
• Matching financial data with PSI guidelines
• Managing inspections & department queries
• Avoiding disqualification during scrutiny
• Filing documentation within the permitted timelines

Because PSI applications require precise financial interpretation and compliance, most businesses partner with professionals like Finraja Consultancy Private Limited to avoid rejection and maximize subsidy.

Conclusion

The Maharashtra Industrial Subsidy 2019, combined with the Package Scheme of Incentives (PSI 2019), provides massive financial benefits for businesses across manufacturing and services. Whether you are an MSME, large unit, or thrust-sector investor, correctly planning eligibility, funding structure, and documentation is key to maximizing your subsidy.

Finraja Consultancy Private Limited helps businesses secure the highest incentives from the Government of Maharashtra with expert guidance and a proven track record.

Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.