Electricity Duty Exemption Scheme
By Directorate of Industries, Government of Maharashtra
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Quick Answer
A scheme by the Maharashtra government providing exemption from electricity duty for eligible Special LSI units and specific socially-inclusive enterprises.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Maharashtra
About this subsidy
The Electricity Duty Exemption scheme, an integral part of the Maharashtra Industries Investment and Services Policy 2025, aims to bolster industrial growth and investment across various regions of Maharashtra. This initiative specifically targets Large Scale Industries (LSI) by providing relief from electricity duties, thereby reducing operational costs and enhancing competitiveness. The policy recognizes the critical role of electricity in industrial operations and seeks to provide a favorable environment for both new and existing units to thrive.
This exemption is strategically designed to encourage industrial development in less developed regions, categorized as Group C, D, and D+ areas, by offering benefits for a tenure equivalent to their overall incentive period under the policy. This differentiated approach helps to balance industrialization across the state, promoting equitable growth.
Furthermore, the scheme extends special provisions for certain categories of units located even in more developed Group A and B areas. This includes Export Oriented Units (EOUs) that demonstrate significant export turnover, as well as enterprises wholly owned by women, Scheduled Castes (SC), Scheduled Tribes (ST), or persons with disabilities (PwD). These provisions underscore the government's commitment to inclusive industrial development, supporting specific socio-economic groups and export-driven growth. By reducing a significant input cost, the policy aims to stimulate investment, create employment opportunities, and foster sustainable industrial expansion throughout Maharashtra.
Eligibility
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Subsidy providers
Benefits & Funding
What You Get
The program offers exemption from electricity duty, providing significant financial relief to eligible industrial units. For new and existing Special LSI units located in Group C, D, D+, and below areas, the exemption will be granted for a period equivalent to their overall incentive period under the Maharashtra Industries Investment and Services Policy 2025. This measure is designed to reduce operational overheads and enhance the viability of large-scale industrial operations in these regions, encouraging investment and job creation where it is most needed.
In more developed Group A and B areas, the electricity duty exemption is specifically targeted to support strategic and inclusive growth. Here, the exemption applies for a fixed period of 7 years to:
- Export Oriented Units (EOUs) that achieve at least 50% export turnover, as certified by the Directorate General of Foreign Trade (DGFT).
- Industrial units that are fully owned by women entrepreneurs.
- Industrial units fully owned by individuals from Scheduled Castes (SC) or Scheduled Tribes (ST).
- Industrial units fully owned by persons with disabilities (PwD). An additional condition for these special categories in Group A and B is that they must also employ at least 50% of their workforce from the respective owning group (women, SC, ST, or PwD). This comprehensive financial benefit directly reduces utility costs, contributing to the long-term sustainability and growth of these prioritized industrial segments.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the Electricity Duty Exemption involves a thorough administrative review by the competent authorities under the Government of Maharashtra. Applications submitted by eligible units are scrutinized against the detailed criteria specified in the Maharashtra Industries Investment and Services Policy 2025. This includes verifying the unit's status as a Special LSI or EOU, its geographical location, ownership structure (for special categories), and workforce composition where applicable. The process is largely compliance-based, focusing on ensuring that all stated conditions for exemption are met by the applicant. Decisions are made based on documented evidence, and there are no competitive pitch rounds or jury evaluations; it is an approval process for qualifying enterprises.
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the purpose of the Electricity Duty Exemption scheme?
The scheme aims to promote industrial growth and investment in Maharashtra by reducing operational costs for eligible Large Scale Industries (LSI) and specific categories of units, thereby enhancing their competitiveness and fostering equitable development across different regions of the state.
Which types of industrial units are eligible for this exemption?
The scheme primarily targets new and eligible Special LSI units in Group C, D, D+, and below areas. Additionally, in Group A and B areas, it applies to Export Oriented Units (EOUs) with 50% export turnover, and units fully owned by women, SC/ST, or persons with disabilities, provided they also employ 50% workforce from the said group.
What is the duration of the electricity duty exemption?
For Special LSI units in Group C, D, D+, and below areas, the exemption tenure is equivalent to their overall incentive period under the policy. For specified units (EOUs, women/SC/ST/PwD-owned) in Group A and B areas, the exemption applies for a fixed period of 7 years.
Is there a specific application deadline for this exemption?
The Electricity Duty Exemption is part of an ongoing state industrial policy, and applications are generally accepted on a rolling basis as new units become eligible or seek to claim the benefit. There is no specific application deadline mentioned, indicating it is an active and continuous scheme.
Do units owned by women, SC/ST, or PwD in Group A and B areas have additional requirements?
Yes, in addition to being fully owned by these demographic groups, such units in Group A and B areas must also employ at least 50% of their total workforce from the respective owning group to qualify for the 7-year exemption.
Where can I find the official policy document for more details?
The official policy document, "Maharashtra Industries Investment and Services Policy 2025", can be accessed through the MAITRI portal, typically in the policy or governance sections. The specific PDF link is often provided on relevant government websites.
Sources
Data on this page is compiled from official program and provider references.
