PSI 2019 Subsidy Scheme
Maharashtra’s Package Scheme of Incentives – 2019: A Boost for Industrial Growth
To promote balanced industrial development across Maharashtra, the state government introduced the Package Scheme of Incentives – 2019 (PSI-2019). This scheme is designed to attract investments, generate employment, and promote regional equity by supporting industries in less developed and backward areas.
🗓 Validity of the Scheme
The PSI-2019 is applicable for projects that commence operations between April 1, 2019 to March 31, 2024, or until a new policy comes into effect.
✅ Who Can Apply?
Eligible sectors under PSI-2019 include:
- Manufacturing Enterprises under MSMED Act, 2006
- Large Scale and Mega Projects
- IT/BT, Biotech, Agro & Food Processing Units
- Special Thrust Sectors like EVs, Aerospace, Green Energy, Industry 4.0, Medical Devices, Logistics, etc.
Note: Alcohol, tobacco, and banned-product industries are not eligible.
🗺 Area-Based Classification
The state is divided into 8 categories for determining incentive eligibility:
- Group A: Industrially developed
- Group B, C, D, D+: Progressively less developed
- No Industry Districts: e.g., Hingoli, Gadchiroli
- Naxal-Affected Areas & Aspirational Districts: e.g., Osmanabad, Washim
The more backward the area, the higher the incentives.
💰 Key Incentives Offered
- Industrial Promotion Subsidy (IPS)
- MSMEs get up to 100% reimbursement of SGST paid on sales within Maharashtra.
- LSIs get 50% of SGST, Special LSIs get 40% of Net SGST.
- Interest Subsidy
- MSMEs can avail interest subsidy up to 5% p.a., limited to electricity bill amounts.
- Power Tariff Subsidy
- ₹1/unit subsidy in backward regions, ₹0.50/unit in others (for 3 years).
- Electricity Duty Exemption
- Applicable in Group C, D, D+, and special districts for the eligible period.
- Stamp Duty Waiver
- Full or partial stamp duty exemption depending on the unit’s location and activity.
- Additional Benefits for MSMEs
- Tech Upgradation: 5% subsidy up to ₹25 lakh
- Quality Certification: 75% up to ₹1 lakh
- Patent Registration: Up to ₹20 lakh for international patents
- Credit Rating, Water/Energy Audits: Up to 75% cost support
🏗 Incentive Eligibility Linked to Investment & Employment
For MSMEs:
| Area Category | Max Incentives as % of FCI | Eligibility Period |
| Group B | 30% | 7 years |
| Group D+ | 60% | 10 years |
| No Industry / Aspirational Districts | 100% | 10 years |
For LSIs:
| Area | Minimum Investment | Max Incentive % | Employment |
| Group C | ₹500 Cr | 40% | 750 jobs |
| D+ Area | ₹150 Cr | 70% | 400 jobs |
| No Industry / Aspirational | ₹100 Cr | 100% | 250 jobs |
🛠 Mega & Ultra-Mega Projects
- Tailor-made incentives approved by the High Power Committee or Cabinet Sub-Committee.
- Emphasis on employment of locals, sustainability, and sectoral thrust.
📝 Application Process
Eligible units must:
- Complete “Effective Steps” like land possession, registrations, etc.
- Apply before March 31, 2024.
- Commence production within 3–5 years (depending on project size).
📌 Final Note
The PSI-2019 is a comprehensive policy aimed at inclusive industrial growth by incentivizing units that invest in less developed regions. Whether you’re a small entrepreneur or a large investor, Maharashtra offers structured support to help your business grow sustainably.
Blog by Dipti Warma
