Introduction: Maharashtra LSI & Special LSI incentives
The Maharashtra Industries Investment and Services Policy 2025 (MIIPS 2025) positions the state as one of India’s most competitive destinations for large manufacturing and mega industrial projects. Under this policy, Large Scale Industries (LSI) and Special Large-Scale Industries (Special LSI) receive structured, performance-linked incentives designed to improve project viability, cash flow stability, and long-term returns.
However, these incentives are not automatic. They are classification-driven, location-sensitive, and compliance-based. Incorrect structuring at the planning stage can permanently reduce or nullify benefits.
This is where Finraja Consultancy Private Limited, as a professional subsidy consulting firm, plays a critical role—ensuring correct classification, incentive optimisation, and successful realization.
Eligibility Criteria for Large Scale Industries (LSI) Under MIIPS 2025
Large Scale Industries represent projects that exceed MSME thresholds but do not meet the higher benchmarks prescribed for Special LSI classification.
Eligibility Criteria – LSI
Parameter | Policy Requirement |
Enterprise Category | Beyond Medium Enterprise |
Minimum Fixed Capital Investment (FCI) | More than ₹125 crore |
Upper Threshold | Below Special LSI limits |
Basis of Classification | Eligible Fixed Capital Investment |
Incentive Access | As notified under MIIPS 2025 |
Many projects incorrectly assume Special LSI eligibility. Misclassification at DPR or approval stage leads to future incentive rejection, even if investment size increases later.
Eligibility Criteria for Special Large-Scale Industries (Special LSI)
Special LSI projects are strategic, high-investment or high-employment units, classified based on either Fixed Capital Investment (FCI) OR Direct Employment, as per MIIPS 2025.
Eligibility Criteria for Special LSI
Area Classification | Minimum FCI (₹ Cr) | Minimum Direct Employment | Max Incentive Basket (% of FCI) | Incentive Period |
A & B | 750 | 1,000 | 40% | 7 years |
C | 500 | 750 | 50% | 7 years |
D | 350 | 500 | 60% | 7 years |
D+ | 250 | 200 | 80% | 7 years |
Vidarbha, Marathwada, Ratnagiri, Sindhudurg, Jalgaon & Dhule | 200 | 150 | 90% | 9 years |
No-Industry, Naxal-Affected & Aspirational Districts | 150 | 125 | 100% | 9 years |
Correct location selection can increase the incentive basket from 40% to 100% of FCI, dramatically improving project economics.
Industrial Promotion Subsidy (IPS) for Special LSI Units
Under the Maharashtra Industries Investment and Services Policy 2025, Industrial Promotion Subsidy is the core incentive mechanism for Special LSI projects.
Industrial Promotion Subsidy – Financial Assessment
Parameter | Details |
Incentive Type | Industrial Promotion Subsidy |
Basis | Eligible Fixed Capital Investment (EFCI) |
Maximum Limit | As per incentive basket (% of FCI) |
Disbursement | Post-production, periodic |
Duration | 7 or 9 years (location-based) |
IPS is capped, not open-ended. Structuring the incentive basket correctly is essential to avoid under-utilisation.
Stamp Duty Exemption for Special LSI Projects
As a result, Stamp duty exemption significantly reduces initial project establishment costs.
Stamp Duty Incentive
Parameter | Benefit |
Applicability | Land purchase, lease & conveyance |
Exemption | 100% Stamp Duty Exemption |
Coverage | Project-related industrial transactions |
Condition | Approval as Special LSI |
Improper land documentation can invalidate this benefit, even after approval.
Power Tariff Subsidy for Special LSI Units
Energy cost reduction is critical for large manufacturing operations.
Power Tariff Subsidy
Parameter | Details |
Incentive Type | Power Tariff Subsidy |
Applicability | Electricity used for manufacturing |
Tenure | As per Special LSI approval |
Mode | Reimbursement / adjustment |
Electricity Duty Exemption for Special LSI
Electricity Duty Incentive
Parameter | Benefit |
Electricity Duty | 100% Exemption |
Applicable Period | Approved incentive tenure |
Coverage | Industrial electricity consumption |
Employment-Linked Subsidy for Special LSI
Employment generation is a key evaluation metric under MIIPS 2025.
Employment-Linked Incentive
Parameter | Details |
Basis | Direct employment created |
Eligibility | As per approved employment commitment |
Objective | Encourage large-scale job creation |
Compliance | Periodic verification required |
Employment Factor Under Special LSI Incentives
Employment Factor Impact
Parameter | Impact |
Employment Factor | Enhances incentive eligibility |
Role | Multiplier in incentive basket |
Applicability | Projects exceeding minimum employment |
Failure to maintain employment levels can result in incentive reduction or recovery.
Why Finraja Consultancy Private Limited Is Essential for LSI & Special LSI Projects
MIIPS 2025 incentives are complex, layered, and audit-driven. Promoters often lose benefits due to:
- Incorrect project classification
- Poor location mapping
- Weak incentive documentation
- Delayed or rejected claims
Finraja Consultancy Private Limited provides:
- Correct LSI / Special LSI classification
- Incentive basket optimisation
- Approval coordination
- Claim filing & compliance management
Ensuring maximum incentive realization with zero compliance risk.
Conclusion: Maharashtra LSI & Special LSI incentives
The Maharashtra LSI & Special LSI incentives under MIIPS 2025 offer one of India’s most attractive frameworks for large and mega manufacturing projects. However, policy benefits convert into financial gains only when handled professionally.
If you are planning a large or mega industrial project in Maharashtra, partner with Finraja Consultancy Private Limited to unlock the full financial potential of MIIPS 2025—accurately, compliantly, and efficiently.
Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.
