Power Tariff Subsidy (Special LSI) — ₹1 per Unit for 3 Years in Maharashtra
Maharashtra's incentive for new Special LSI units in Group D, D+ and lower areas: ₹1 per unit of electricity consumed for three years, capped at ₹1.5 crore.
- Funding amount
- ₹1.5Cr (subsidy)
- 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
The Power Tariff Subsidy (Special LSI) is an incentive offered by the Directorate of Industries, Government of Maharashtra, under the Maharashtra Industries Investment and Services Policy 2025. It is built for newly set up Special Large Scale Industrial (LSI) units operating in the state's Group D, D+ and lower-category areas.
Electricity is one of the largest recurring expenses a large manufacturing unit carries, so the state offsets a slice of that bill directly instead of handing over a one-time cheque. Qualifying units get ₹1 per unit of power consumed, credited over a three-year window, with the total support for any single unit capped at ₹1.5 crore.
The scheme only targets fresh industrial capacity — existing plants are not its audience. By lowering running costs in the areas the policy classifies under Group D, D+ and below, it is meant to pull new investment into those locations and improve the cost-competitiveness of the units that come up there.
Applications are accepted on a rolling basis, with no closing date. Alongside the cash relief, the scheme forms part of a wider policy push to position Maharashtra as an attractive destination for large-scale industry.
Highlights
- ₹1 per unit of electricity consumed, credited for three years
- Cumulative subsidy capped at ₹1.5 crore per unit
- Only for new Special LSI units in Group D, D+ and lower categories in Maharashtra
- Rolling applications — no fixed deadline
- Offered under the Maharashtra Industries Investment and Services Policy 2025
- Apply through the MAITRI portal set up by the Government of Maharashtra
Who can apply
Eligibility turns on two things: the type of unit you operate, and the area group your unit sits in.
- Unit type: your plant must qualify as a new Special Large Scale Industrial (LSI) unit as defined under the Maharashtra Industries Investment and Services Policy 2025.
- Area group: the unit must fall within Group D, D+ or a lower category under the policy.
- New units only: this benefit is designed for units being newly established, not for plants that already existed before. The scheme exists to encourage fresh investment and industrial set-up in the identified regions of Maharashtra.
- State: the unit must be located in Maharashtra.
The full eligibility conditions, including the exact definitions of Group D, D+ and lower categories, sit in the policy document itself — check these before applying, since the classification drives the whole claim.
Power Tariff Subsidy (Special LSI) — ₹1 per Unit for 3 Years in Maharashtra 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
Power Tariff Subsidy (Special LSI) — ₹1 per Unit for 3 Years in Maharashtra 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
The core benefit is a direct reduction in your electricity cost. Eligible Special LSI units receive a subsidy of ₹1 per unit of power consumed.
- Duration: the subsidy runs for three years from the point the unit becomes eligible and commences operations.
- Cap: the cumulative subsidy a single unit can claim across those three years is limited to ₹1.5 crore.
- How it lands: after approval, the subsidy is applied to the unit's electricity bills through the three-year period, up to the ceiling — so the relief is recurring rather than a lump sum.
Because the subsidy trims a major operating overhead, it directly improves the unit's bottom line and its cost-competitiveness. Savings retained this way can be ploughed back into expansion, research and development, or hiring. The scheme also operates within a supportive regulatory framework under the state's industrial policy, which adds to the overall proposition for units setting up in Maharashtra.
About the provider
Power Tariff Subsidy (Special LSI) — ₹1 per Unit for 3 Years in Maharashtra 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
Applications are assessed in stages, with transparency and conformity to the policy guidelines as the stated aim.
- Administrative screening: once an application is filed, it is first checked for completeness and accuracy of the information supplied.
- Technical and financial assessment: experts from the Maharashtra Industries Department or a designated agency then review the application in detail. This step verifies that the applicant genuinely qualifies as a new Special LSI unit and that it falls in Group D, D+ or below as the policy defines it. The investment made and the operational readiness of the unit are also examined.
- Committee evaluation: a selection committee weighs applications against predefined parameters to confirm they meet every eligibility condition and align with the policy's objectives.
- Notification: applicants who clear the process are formally notified.
- Implementation: the subsidy is then applied to the approved unit's power tariffs, so the financial relief reaches the intended beneficiary.
Because the scheme has no fixed deadline, there is no single evaluation round — applications move through this process as they come in.
Documents you’ll need
Before you apply to Power Tariff Subsidy (Special LSI) — ₹1 per Unit for 3 Years in Maharashtra, 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.
Who this is best for
Power Tariff Subsidy (Special LSI) — ₹1 per Unit for 3 Years in Maharashtra is best suited for startups in India seeking non-dilutive funding of ₹1.5Cr. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What exactly does the Special LSI Power Tariff Subsidy give a unit?
It reduces what you pay for electricity. For every unit of power your plant consumes, the subsidy covers ₹1, and this relief continues for three years from the date your unit becomes eligible and starts operations. It is a recurring credit against your power cost, not a one-time payment.
How much money can one unit claim in total?
The aggregate subsidy for a single unit is capped at ₹1.5 crore across the full three-year period. The per-unit rate of ₹1 applies until that ceiling is reached.
Which units are eligible for this scheme?
The subsidy is open to new Special Large Scale Industrial (LSI) units that fall under Group D, D+ or a lower category, as those groups are defined in the Maharashtra Industries Investment and Services Policy 2025. The unit must be located in Maharashtra. Your position in the relevant group is the deciding factor, so confirm your classification against the policy before applying.
Can an industrial unit that is already running apply?
No. The scheme is specifically aimed at new units, since its purpose is to draw fresh investment and new industrial set-up into the identified regions of Maharashtra. Units that already existed before do not fall within its scope.
Is there a last date to submit the application?
There isn't. This is a rolling scheme with no fixed closing date, so you can apply once your unit is eligible and operational. That said, the subsidy clock runs for three years from your date of eligibility, so delaying the application does not extend the benefit period.
Does the government take equity or a stake in my company in return?
No. This is a subsidy, not an equity investment, so it does not dilute your ownership. You receive the tariff relief without giving up any shareholding in the business.
Is MSME or DPIIT recognition required to qualify?
The scheme's stated eligibility condition is your unit's status as a new Special LSI unit and its Group D, D+ or lower classification under the policy, rather than MSME or DPIIT registration. Refer to the policy document for the definitive list of conditions and any supporting registrations the application requires.
What documents do I need to put together?
The documentation is what you would normally expect for an industrial incentive claim: proof of incorporation, industrial registration, details of your power connection, investment details and other compliance certificates. A detailed project report with financial projections is also part of the submission. Make sure every field in the form is accurate and that uploads follow the prescribed format.
How and where do I apply?
Applications are submitted through the MAITRI portal (https://maitri.maharashtra.gov.in/login), or through any other designated online platform or physical office of the Maharashtra Industries Department. Submit the completed form along with the supporting documents.
Once approved, how does the subsidy actually reach me?
After verification and approval, the subsidy is applied to your unit's electricity bills over the next three years, up to the ₹1.5 crore ceiling. That means the relief shows up as a lower power bill rather than as a separate lump-sum disbursement.
Who is eligible to apply for Power Tariff Subsidy (Special LSI) — ₹1 per Unit for 3 Years in Maharashtra?
Power Tariff Subsidy (Special LSI) — ₹1 per Unit for 3 Years in Maharashtra is open to startups at any stage. It is open to startups registered anywhere in India.
Who offers Power Tariff Subsidy (Special LSI) — ₹1 per Unit for 3 Years in Maharashtra?
Power Tariff Subsidy (Special LSI) — ₹1 per Unit for 3 Years in Maharashtra is offered by Directorate of Industries, Government of Maharashtra, a government body. It is provided as non-dilutive funding.
How do I apply for Power Tariff Subsidy (Special LSI) — ₹1 per Unit for 3 Years in Maharashtra?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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