Electricity Duty Exemption Scheme — Maharashtra LSI Relief
A Maharashtra government incentive that exempts eligible Special LSI units, export-oriented units and women-, SC/ST- or PwD-owned enterprises from electricity duty, cutting a major recurring utility cost.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Directorate of Industries, Government of Maharashtra (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
Electricity Duty Exemption is a state incentive delivered under the Maharashtra Industries Investment and Services Policy 2025 and administered by the Directorate of Industries, Government of Maharashtra. It is not a cash payout: a qualifying industrial unit simply stops paying the electricity duty it would otherwise owe, which removes one of the largest recurring utility costs in a manufacturing operation. Applications stay open on a rolling basis, so a unit can claim the benefit as soon as it qualifies.
The design is region-first. Special Large Scale Industries (LSI) units — both new and existing — located in Group C, D, D+ and lower-category areas receive the exemption for as long as their overall incentive period under the policy runs. Backward regions therefore get the broadest access to relief.
Group A and B, the state's more industrialised belts, are treated far more narrowly. There the concession is reserved for export-driven and socially inclusive enterprises: Export Oriented Units whose export turnover is at least 50% and certified by DGFT, along with units wholly owned by women, by Scheduled Caste or Scheduled Tribe individuals, or by persons with disabilities. Those owners must additionally draw at least half their workforce from the same group.
By lowering a running cost, the scheme is meant to steer investment into less developed districts, sharpen the competitiveness of Maharashtra's large industry, support export earnings and widen industrial participation for women, SC, ST and PwD entrepreneurs.
Highlights
- Electricity duty exemption for eligible Special LSI units in Maharashtra
- No cash payout — the benefit is relief from an ongoing utility cost
- Group C, D, D+ and below units get relief equal to their policy incentive period
- EOUs and women-, SC/ST- and PwD-owned units in Group A and B get a fixed 7 years
- Group A and B categories must meet the 50% export turnover or 50% workforce test
- Rolling applications, with no fixed deadline
Who can apply
Eligibility depends on where the unit is located, and on ownership and workforce where a special category is claimed.
- Group C, D, D+ and below areas: new and existing Special LSI units qualify.
- Group A and B areas: Export Oriented Units qualify only where at least 50% of turnover is export turnover, certified by the Directorate General of Foreign Trade (DGFT).
- Group A and B areas: units fully owned by women, by Scheduled Caste (SC) or Scheduled Tribe (ST) individuals, or by persons with disabilities (PwD). Such units must also employ at least 50% of their workforce from the respective owning group.
Electricity Duty Exemption Scheme — Maharashtra LSI Relief is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Electricity Duty Exemption Scheme — Maharashtra LSI Relief accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
What the scheme provides is an exemption from electricity duty — the unit is relieved of the duty instead of receiving a cheque. Its worth therefore differs from unit to unit, since it follows the electricity actually consumed, which is why the headline amount is listed as variable.
- Group C, D, D+ and below: relief runs for a term equal to the unit's overall incentive period under the Maharashtra Industries Investment and Services Policy 2025.
- Group A and B, for EOUs and for women-, SC/ST- and PwD-owned units: a fixed 7 years.
For the Group A and B special categories, that 7-year term is conditional on both the ownership test and the 50% workforce requirement being satisfied. By taking out a significant input cost, the exemption is intended to improve the viability and long-term sustainability of these industrial units.
About the provider
Electricity Duty Exemption Scheme — Maharashtra LSI Relief is offered by Directorate of Industries, Government of Maharashtra, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
There are no pitch rounds or jury evaluations. Assessment is an administrative, compliance-based exercise handled by the competent authorities under the Government of Maharashtra.
- Applications from eligible units are examined against the criteria set out in the Maharashtra Industries Investment and Services Policy 2025.
- Authorities verify the unit's status as a Special LSI or an EOU, its geographical location, its ownership structure where a special category is claimed, and its workforce composition where that condition applies.
- Decisions rest on documented evidence, and the outcome is an approval for enterprises that meet every stated condition.
- On successful verification, the exemption is granted for the applicable tenure, usually through an official order or certificate.
Documents you’ll need
Before you apply to Electricity Duty Exemption Scheme — Maharashtra LSI Relief, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
What exactly does this scheme give a unit?
It grants an exemption from electricity duty rather than cash. A qualifying unit stops paying that duty for the sanctioned tenure. Because the saving tracks actual electricity consumption, the rupee value differs from unit to unit — which is why the scheme's amount is listed as variable.
How long does the exemption last?
There are two tracks. Special LSI units in Group C, D, D+ and below areas get relief for as long as their overall incentive period under the Maharashtra Industries Investment and Services Policy 2025 runs. In Group A and B, Export Oriented Units and units fully owned by women, SC/ST individuals or persons with disabilities get a fixed 7 years.
Which units can apply in Group C, D, D+ and below areas?
New and existing Special Large Scale Industries units situated in those areas are the ones targeted by this track of the scheme.
What must Export Oriented Units in Group A and B show?
They need export turnover of at least 50%, as certified by the Directorate General of Foreign Trade (DGFT).
What extra condition applies to women-, SC/ST- or PwD-owned units in Group A and B?
Besides full ownership by the relevant group, the unit must employ at least 50% of its workforce from that same group — women, SC, ST or PwD as applicable. Both conditions have to be met to claim the 7-year exemption.
Is there a deadline to apply?
No. Applications are accepted on a rolling basis, so a unit can apply once it becomes eligible or decides to claim the benefit.
Does the government take equity or a stake in my company?
No. This is a state subsidy in the form of a duty exemption, not an investment, so no equity or ownership stake is taken.
What documents are usually needed?
Broadly, proof of unit registration together with LSI or EOU status, ownership details for women-, SC/ST- or PwD-owned units, workforce composition records where the 50% employment condition applies, location proof, and DGFT certification for EOUs. The application and these papers are submitted for verification by the state authorities.
How do I apply for the exemption?
Through the MAITRI portal, the state's industrial facilitation platform, at https://maitri.maharashtra.gov.in/login. The application procedures are laid out in the Maharashtra Industries Investment and Services Policy 2025.
Where can I read the full policy?
The Maharashtra Industries Investment and Services Policy 2025 document, accessible through the MAITRI portal, carries the detailed forms and submission requirements.
Is DPIIT recognition required for Electricity Duty Exemption Scheme — Maharashtra LSI Relief?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Electricity Duty Exemption Scheme — Maharashtra LSI Relief, though having it can strengthen your application and unlock other benefits.
Who is eligible to apply for Electricity Duty Exemption Scheme — Maharashtra LSI Relief?
Electricity Duty Exemption Scheme — Maharashtra LSI Relief is open to startups at any stage. It is open to startups registered anywhere in India.
Who offers Electricity Duty Exemption Scheme — Maharashtra LSI Relief?
Electricity Duty Exemption Scheme — Maharashtra LSI Relief is offered by Directorate of Industries, Government of Maharashtra, a government body. It is provided as non-dilutive funding.
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