PSI-2013 Scheme – Expansion Units

Incentives (Subsidy) Schemes for Expansion, Modernization & Diversification of industrial units

Govt. of Maharashtra has introduced incentive (subsidy) scheme for manufacturing units undertaking expansion, modernization & diversification under Package Scheme Of Incentives – 2013 Scheme (PSI-2013).

Key Features of the scheme:

    1. Applicable to :
      This scheme is applicable only for existing industrial units carrying out expansion / modernization of their production (processing) capacities or diversification of product portfolio.
    2. Non-applicable to :
      Units carrying on trading / services activities (except IT & ITeS Industry) are not eligible to avail benefits under this scheme.
    3. Investment period :
      Investments made in eligible fixed assets during the period from 01.04.2013 to 31.03.2018 are entitled for incentives (subsidies).
    4. Assets eligible to get incentives (subsidies) :
      Normally, investment made in factory land, factory building & related construction, plant & machinery, electricity deposit, technical know-how purchase amount etc. etc. at the location of manufacturing unit are considered for incentives calculation purpose.
    5. Existing & upcoming units in same Taluka :
      In this situation, upcoming unit will be treated as an expansion unit & accordingly, all applicable benefits for an expansion unit can be granted to upcoming unit.
    6. Existing & upcoming units in different Taluka :
      Alternatively, in this situation, upcoming unit will be treated as a new unit & accordingly, all applicable benefits for a new unit can be granted to upcoming unit.
    7. Category of an unit to avail subsidy benefits :
      Units of all categories viz. micro / small / medium / large / mega / ultra-mega scale are eligible to avail benefits under PSI-2013 Scheme.
    8. Restriction of location for expansion units :
      Units located in any Group Talukas except located in Group A Talukas / areas (as defined by PSI-2013 Scheme) are eligible to avail incentives (subsidy) benefits.
    9. Coverage of businesses :
      • Industries listed in the First Schedule of the Industries (Development and Regulation) Act, 1951, as amended from time to time.
      • Manufacturing Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006. (MSMED Act, 2006)
      • Information Technology Manufacturing Units registered with the Directorate of Industries or the Maharashtra Industrial Development Corporation (MIDC) or the Development Commissioner, Santacruz Electronic Export Processing Zone (SEEPZ) or Software Technology Parks of India (STPI) in the State.
      • Bio-technology Manufacturing Units as specified by the Government from time to time, which are outside the purview of any registering authority mentioned above.
      • Cold Storages
      • Mechanized Food/Agro Processing Industries in the following sectors :
        • Dairy, Fruit and Vegetable Processing.
        • Grain Processing.
        • Fish Processing.
        • Consumer foods including Packed foods.
        • Non-alcoholic beverages from fruits and vegetables
      • Central Public Sector Units which satisfy the qualifying criteria as defined in Para No. 2.2(iii) of Government Resolution No. PSI-2013/(CR-54)/IND-8 Dt. 01.04.2013.
    10. Special conditions to be fulfilled by expansion units to avail subsidy benefits : As compared to pre-expansion stage, for post-expansion to be eligible to get benefits:
        • There should be increase in amount of gross fixed capital investment by more than 25%, subject to following minimum investment amount :
          1. For micro, small, medium scale units – Rs. 25.00 Lakhs
          2. For large scale units – Rs. 500.00 Lakhs
        • There should be increase in installed production capacity by minimum of 25%
        • There should be increase in non-supervisory employment by minimum of 10% of which minimum 80% of additional employment should be local persons.

      Kindly note that all of the above 3 conditions should be satisfied simultaneously.

    11. Eligibility to get various benefits under PSI-2013 Scheme by new unit vis-à-vis an expansion unit :
Sr. No. Particulars New Project Expansion Project
1 Vat Tax Refund YES YES
2 Interest Subsidy YES NO
3 Power Tariff Subsidy YES NO
4 Electricity Duty Waiver YES NO
5 Stamp Duty Waiver YES YES
6 Other subsidies YES NO
    1. Special additional incentives for agro / food processing units :
      • 10% additional subsidy as compare to other eligible units under this scheme
      • Subsidy benefits can be availed for additional 1 year than sanctioned as per the scheme
    2. Financial incentives for agro / food processing expansion units :
Taluka / Area Ceiling as % of Fixed Capital Investment No. of Years
Micro, Small & Medium Enterprises Large Scale Enterprises Micro, Small & Medium Enterprises Large Scale Enterprises
A —- —- —- —-
B 22.5 —- 7 —-
C 37.5 30.0 7 7
D 60 37.5 10 7
D++ 67.5 45.0 10 7
No Industry District 75.0 60 10 7
Naxalism affected area 82.5 67.5 10 7
    1. Financial incentives for non-agro / non-food processing expansion units :
Taluka / Area Ceiling as % of Fixed Capital Investment No. of Years
Micro, Small & Medium Enterprises Large Scale Enterprises Micro, Small & Medium Enterprises Large Scale Enterprises
A —- —- —- —-
B 15.0 —- 6 —-
C 30.0 22.5 6 6
D 52.5 30.0 9 6
D++ 60.0 37.5 9 6
No Industry District 67.5 52.5 9 6
Naxalism affected area 75.0 60.0 9 6

Disclaimer :

  • Above study report / information has been provided solely to create general awareness about Subsidy schemes as sponsored by Maharashtra Govt.
  • 2. For more details, please visit https://maitri.mahaonline.gov.in & District Industries Center of respective districts.
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