Maharashtra Electricity Duty Exemption Scheme (2026)

Frequently Asked Questions

What is the Exemption from Electricity Duty scheme?

This scheme, part of the Maharashtra Industries Investment and Services Policy 2025, provides eligible new MSME units and specific categories of units with an exemption from paying electricity duty for a period equivalent to their incentive tenure. It aims to reduce operational costs and promote industrial growth in Maharashtra.

Which types of units are eligible for this exemption?

Eligible and new MSME units located in Group C, D, D+, and below areas are eligible. In Group A and B areas, the exemption applies specifically to Export-Oriented Units (EOUs) with at least 50% export turnover (DGFT certified), and units fully owned by women, SC/ST, or Persons with Disabilities (PwD), provided they employ 50% workforce from these respective groups.

Is there a specific monetary amount for the exemption?

The scheme does not specify a fixed monetary amount. Instead, it offers an exemption from electricity duty for a tenure equivalent to the overall incentive period that the unit is eligible for under the policy. The actual financial benefit will depend on the unit's electricity consumption.

How does a unit apply for this electricity duty exemption?

The exemption is claimed as part of the broader application process under the Maharashtra Industries Investment and Services Policy 2025. Interested units typically need to register on the MAITRI portal (maitri.maharashtra.gov.in) and submit their applications and required documentation as per the policy guidelines to avail the incentives.

What is the 'incentive period' mentioned in the scheme?

The 'incentive period' refers to the duration for which a new or eligible industrial unit is entitled to various incentives under the Maharashtra Industries Investment and Services Policy 2025. This period is determined based on factors like the unit's location, investment, and category, and it will be specified during the approval of the unit's incentive application.

Are there any specific conditions for units owned by women, SC/ST, or PwD?

Yes, for units in Group A and B areas fully owned by women, SC/ST, or PwD, an additional condition is that they must employ at least 50% of their workforce from the respective group (women, SC, ST, or PwD) to be eligible for the electricity duty exemption.

The Exemption from Electricity Duty scheme is a key incentive under the Maharashtra Industries Investment and Services Policy 2025, aimed at promoting industrial growth and supporting specific business categories within the state. This program offers a direct financial benefit to eligible industrial units by exempting them from paying electricity duty for a period equivalent to their general incentive tenure. This exemption helps reduce operational costs, making businesses more competitive and encouraging investment across various regions of Maharashtra.

The policy categorizes areas into Groups A, B, C, D, and D+, with differing eligibility criteria to ensure balanced regional development. While the exemption is broadly available to new and eligible MSME units in less developed regions (Group C, D, D+, and below), it specifically targets export-oriented units (EOUs) and businesses fully owned by women, Scheduled Castes (SC), Scheduled Tribes (ST), or Persons with Disabilities (PwD) in more developed areas (Group A and B). This targeted approach ensures inclusive growth and provides crucial support to historically underserved entrepreneurial groups, fostering a conducive environment for their enterprise to flourish.

Applications for the electricity duty exemption are assessed based on their adherence to the eligibility criteria outlined in the Maharashtra Industries Investment and Services Policy 2025. The selection process involves a thorough review of submitted documentation to verify the unit's status as a new and eligible MSME, its location in the designated industrial group, and compliance with specific conditions for EOUs or units owned by women, SC/ST, or PwD. This includes verification of export turnover (for EOUs) and workforce composition (for women/SC/ST/PwD-owned units). The relevant authorities evaluate each application against the policy's guidelines to determine eligibility for the incentive period and subsequent exemption.

Maharashtra Electricity Duty Exemption Scheme

Maharashtra Electricity Duty Exemption Scheme

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