Maharashtra Electricity Duty Exemption — 3 to 5 Years for Service Units — Frequently Asked Questions

It exempts your service sector unit from paying electricity duty for a fixed number of years. The Directorate of Industries, Government of Maharashtra runs it under the Maharashtra Industries Investment and Services Policy 2025. It is a recurring saving on an operating cost rather than a one-time payment.

It depends on where your unit is located. Units in Group C, D, D+ and lower-category areas get an exemption of 5 years, while units in Group A and Group B areas get 3 years. Because the location classification drives the length of the benefit, it is the key detail to confirm before applying.

The scheme covers new and eligible service sector units in Maharashtra, as defined under the policy. It is not open to every industry — manufacturing and other sectors are addressed by separate incentives under the same policy. Your unit needs to be a newly established service sector business meeting the policy's 'new and eligible' test.

The published details of this incentive do not list DPIIT or MSME registration as a condition, and no particular entity type is specified. Eligibility turns on the unit being a new service sector business operating in an eligible part of Maharashtra, with the location classification deciding the exemption period.

It is a waiver. Your unit simply does not pay electricity duty for the exemption period, so the saving shows up as a lower cost rather than a cheque. Because the value tracks your actual duty liability, it varies from unit to unit — heavier power users save more.

No. This is a subsidy in the form of a duty exemption, so there is no equity dilution, no stake taken and nothing to repay. The benefit is yours for the exemption period regardless of how the business is structured.

There is no fixed deadline. Applications run on a rolling basis and are accepted continuously for as long as the Maharashtra Industries Investment and Services Policy 2025 remains in force. That said, since the exemption is tied to your unit's eligibility date, applying early makes sense.

Typical requirements include proof of incorporation, business registration, evidence of the unit's location, investment details, and the date commercial operations commenced. Anything else specified in the policy guidelines will also be needed to establish that your unit qualifies as new and eligible.

Apply through the MAITRI portal (Maharashtra Industry, Trade and Investment Facilitation Cell) at https://maitri.maharashtra.gov.in/login, which is the state's single-window system for industrial approvals and incentives. Register or log in, locate the electricity duty exemption for service sector units, fill in the online form with your unit's details, upload the supporting documents and submit. You can track the application status on the portal afterwards.

No. The process is an administrative review of your application by the relevant state authority, checking the unit's establishment date, operational status and geographical classification against the eligibility norms. Every unit that meets the criteria receives the benefit — there is no shortlist or ranking.

Maharashtra Electricity Duty Exemption — 3 to 5 Years for Service Units is offered by Directorate of Industries, Government of Maharashtra, a government body. It is provided as non-dilutive funding.