PSI -2019
- ☉ The PSI 2019 is a government scheme by Maharashtra to encourage industries to set up or expand in less developed areas of the state.
- ☉ The scheme gives various financial incentives to new and expanding industrial units, especially in backward regions, to promote balanced industrial growth.
Objectives
- ☉ To attract new investments in the state, especially in less developed and remote areas.
- ☉ To generate more employment opportunities for locals.
- ☉ To support the growth and expansion of Micro, Small, Medium, and Large Scale Industries.
Eligible Beneficiaries
- ☉ New industrial units (first-time setup in any taluka/area by an entity).
- ☉ Existing units planning for expansion or diversification.
- ☉ Units in Private Sector, Co-operative Sector, State/Central Public Sector, and Joint Sector.
- ☉ Both manufacturing and processing industries are covered.
Eligible Activities (Based on Units)
| Type of Unit | Investment in Plant & Machinery |
|---|---|
| Micro Enterprise | Up to ₹25 lakhs |
| Small Enterprise | ₹25 lakhs – ₹5 crores |
| Medium Enterprise | ₹5 crores – ₹10 crores |
| Large Scale Enterprise | Above ₹10 crores |
Area Classification
Maharashtra is divided into different zones for this scheme:
- ☉ Group A: Most developed areas (like Mumbai, Pune)
- ☉ Group B: Moderately developed
- ☉ Group C: Less developed
- ☉ Group D: Backward areas
- ☉ Group D+: Most backward areas
- ☉ No Industry District (NID): Areas with very little or no industry
- ☉ Naxalism Affected Area (NAA): Areas affected by Naxal activities
The further you go from developed to less developed areas, the more incentives you get!
Benefits Under PSI 2019
| Incentive Name | What You Get | Who Can Get It / Where Applicable | Duration / Limitations |
|---|---|---|---|
| Industrial Promotion Subsidy (IPS) | Get back a percentage of your investment as subsidy, based on area and unit size. For example, up to 90% of fixed capital investment for micro/small units in No Industry Districts over 10 years. | All eligible new/expanding units. Higher benefits in less developed areas (C, D, D+, NID, NAA). | 7–10 years, % and years depend on area and unit. |
| Interest Subsidy | Subsidy on interest paid for term loans (up to 5% per year or actual paid, whichever is less). | New MSMEs (except in Group A areas). | As per eligibility period. |
| Electricity Duty Exemption | No electricity duty for new units. | Units in C, D, D+, NID, NAA: Up to 15 years. A & B: Only 100% EOUs, IT/BT units for 7 years. |
7–15 years, depending on area and unit type. |
| Stamp Duty Exemption | No stamp duty on land purchase/lease. | Units in C, D, D+, NID, NAA: All eligible units. A & B: Only BT/IT units in parks and Mega Projects. |
As per investment period. |
| Power Tariff Subsidy | Subsidy on power bills: ₹1/unit (Vidarbha, Marathwada, North Maharashtra, Konkan), ₹0.50/unit (other areas). | MSMEs (except Group A). | For 3 years from the start of production. |
| Other Incentives | Subsidy for quality certification, technology upgradation, R&D, water/energy conservation, credit rating (up to 75% of cost, max ₹40,000). | Eligible MSMEs and expansion projects. | As per scheme guidelines. |
How to Apply?
- ☉ Set up your unit in the eligible area and make the required investment.
- ☉ Apply online for incentives on the Maharashtra Industries Department portal.
- ☉ Submit necessary documents (project report, investment proof, registration, etc.).
- ☉ Get eligibility certificate from the District Industries Centre (DIC).
- ☉ Claim incentives as per the scheme guidelines and eligibility period.
Avail Subsidy Summary Report On Your Project
Got any questions?
We provide consultancy for various government subsidies, including those for agriculture, manufacturing, MSMEs, exports, technology upgrades, and infrastructure development.
We offer end-to-end support, from assessing eligibility to preparing and submitting subsidy applications, ensuring maximum benefits with minimal hassle.
The timeline varies based on the type of subsidy and government processing times. However, we streamline the process to ensure faster approvals.
Yes, we have successfully assisted over 750 clients across India and continue to expand our reach to help more businesses benefit from subsidies.
The required documents depend on the specific scheme but generally include business registration certificates, financial statements, project reports, and compliance documents. We guide you through the entire documentation process.
