Maharashtra Electricity Duty Exemption Scheme for MSME Units — Frequently Asked Questions

There is no fixed monetary figure attached to this scheme. Instead of paying out cash, it waives the electricity duty that a qualifying unit would otherwise owe, and the waiver continues for a tenure equal to the unit's overall incentive period under the Maharashtra Industries Investment and Services Policy 2025. In practice, the size of the benefit depends on how much electricity your unit consumes.

It depends on where your unit is located. New MSME units, and MSME units that meet the policy's eligibility test, can claim the waiver if they are in Group C, D, D+ or below areas. In the more developed Group A and Group B areas, only export-oriented units with at least 50% DGFT-certified export turnover, and units wholly owned by women, SC, ST or PwD entrepreneurs, qualify.

Only if your unit belongs to one of two categories. The first is an export-oriented unit with at least 50% export turnover certified by the DGFT. The second is a unit wholly owned by a woman, a member of a Scheduled Caste or Scheduled Tribe, or a Person with Disability. A general MSME unit in Group A or B does not qualify.

Ownership alone is not enough. A unit wholly owned by women, SC, ST or PwD entrepreneurs in Group A or B must also employ at least 50% of its workforce from the corresponding group — women, SC, ST or PwD as applicable. Both the ownership test and the workforce test are verified during assessment.

Neither. This is a subsidy delivered as a duty exemption, so it is non-dilutive — no equity stake is taken in your unit, and there is nothing to repay. The benefit is simply the electricity duty you no longer have to pay for the duration of the exemption.

The exemption runs for a tenure equal to the overall incentive period your unit is granted under the Maharashtra Industries Investment and Services Policy 2025. That period is not fixed upfront; it is determined by factors such as the unit's location, investment and category, and it is specified at the time your incentive application is approved.

Applications for incentives under the policy are processed through the MAITRI portal of the Government of Maharashtra. You register your industrial unit on the portal, fill in the application form for industrial incentives with accurate details of your location, investment and category, and clearly state that you are seeking the electricity duty exemption. Supporting documents are uploaded along with the form, and approval notifications are communicated through the same portal.

The document set generally includes your incorporation certificate, MSME Udyam registration, land or lease documents, a project report and financial statements. If you are applying as an export-oriented unit, DGFT certification of your export turnover is required. Units owned by women, SC, ST or PwD entrepreneurs need proof of ownership and evidence of their workforce composition.

No. The scheme operates on a rolling basis and remains open, so there is no last date to submit your application. Applications are taken up for review and assessment as they are filed under the Maharashtra Industries Investment and Services Policy 2025.

The scheme is built around MSME units, and MSME Udyam registration is among the documents typically uploaded with an application. As for DPIIT recognition, the policy does not mention it as a condition for this particular incentive.

Maharashtra Electricity Duty Exemption Scheme for MSME Units is open to startups at any stage. It is open to startups registered anywhere in India.

Maharashtra Electricity Duty Exemption Scheme for MSME Units is offered by Directorate of Industries, Government of Maharashtra, a government body. It is provided as non-dilutive funding.