Electricity Duty Exemption Scheme
Directorate of Industries, Government of Maharashtra · Central government
Maharashtra's electricity duty exemption supports eligible Special LSI units and certain socially-inclusive enterprises.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Electricity Duty Exemption scheme sits within the Maharashtra Industries Investment and Services Policy 2025. It applies to Large Scale Industries (LSI), giving them relief on electricity duty so that running costs fall and competitiveness improves. Electricity is a major input for industry, and the policy treats a stable, lower-cost power environment as a condition for both new and existing units to operate.
The exemption is weighted towards less developed parts of the state — Group C, D and D+ areas — where it runs for a tenure equal to the unit's overall incentive period under the policy. Group A and B areas, which are more developed, are treated differently, with special provisions carved out for certain units.
Those special provisions cover Export Oriented Units (EOUs) with substantial export turnover, along with enterprises wholly owned by women, Scheduled Castes (SC), Scheduled Tribes (ST) or persons with disabilities (PwD). The design therefore serves two ends at once: spreading industry more evenly across Maharashtra's regions, and extending support to specific socio-economic groups and to export-led units.
By bringing down a significant input cost, the scheme is intended to draw in investment, generate employment and support industrial expansion across the state over the longer term.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Maharashtra
- New and eligible Special Large Scale Industrial (LSI) units located in Group C, D, D+ and lower-category areas. - Units in Group A and B areas that hold Export Oriented Unit (EOU) status and have a DGFT-certified export turnover of not less than 50%. - Units in Group A and B areas owned wholly by women, SC/ST members or persons with disabilities (PwD), subject to the condition that 50% of the workforce belongs to the same group.
How to apply
Special LSI units that qualify for the Electricity Duty Exemption need to apply by the procedures set out in the Maharashtra Industries Investment and Services Policy 2025. In general, the process works as follows:
- **Online application**: A formal application is filed via the MAITRI portal or the state's designated industrial facilitation platform. - **Documents**: The unit must furnish the required paperwork, including proof of registration (LSI or EOU status), ownership particulars (for units owned by women, SC/ST or PwD applicants), workforce composition where relevant, proof of location, and any mandatory certifications, such as DGFT certification in the case of EOUs. - **Compliance**: The unit has to satisfy every eligibility condition laid down for its category and location (Group A/B as against C/D/D+). - **Verification**: State authorities concerned examine the application and attached documents to establish eligibility and adherence to the policy guidelines. - **Approval**: Once verification succeeds, the exemption is sanctioned for the prescribed tenure, ordinarily by way of an official order or certificate.
Specific forms and submission requirements are detailed in the full Maharashtra Industries Investment and Services Policy 2025 document and on the MAITRI portal.
How applications are assessed
Under the Government of Maharashtra, the Electricity Duty Exemption application is put through a detailed administrative review by the competent authorities. Eligible units' submissions are checked against the specific conditions laid down in the Maharashtra Industries Investment and Services Policy 2025 — covering the unit's recognition as a Special LSI or EOU, where it is located, its ownership pattern (for special categories), and, where relevant, the composition of its workforce. Since the exercise rests on compliance, the applicant must satisfy every stated condition for exemption, and the decision is taken on the basis of documented evidence. No competitive pitch rounds or jury evaluations are involved; this is an approval route for enterprises that qualify.
Frequently asked questions
What is the purpose of the Electricity Duty Exemption scheme?
Maharashtra's scheme seeks to lower operating costs for eligible Large Scale Industries and certain other unit categories, so as to encourage industrial growth and investment, sharpen their competitiveness, and support more balanced development across the state's regions.
Which types of industrial units are eligible for this exemption?
The scheme mainly covers new and eligible Special LSI units located in Group C, D, D+ and below areas. In Group A and B areas, it extends to Export Oriented Units (EOUs) with 50% export turnover, as well as units wholly owned by women, SC/ST or persons with disabilities that also draw 50% of their workforce from that group.
What is the duration of the electricity duty exemption?
For Special LSI units in Group C, D, D+ and below areas, the exemption runs for the unit's full incentive period under the policy, while specified units — EOUs and those owned by women, SC/ST or PwD entrepreneurs — in Group A and B areas receive a fixed 7-year exemption.
Is there a specific application deadline for this exemption?
The Electricity Duty Exemption operates under a continuing state industrial policy, with applications typically accepted on a rolling basis whenever new units qualify or wish to claim the benefit. No particular application deadline is specified, which indicates the scheme runs continuously.
Do units owned by women, SC/ST, or PwD in Group A and B areas have additional requirements?
Yes. Besides full ownership by the relevant demographic group, units in Group A and B areas must draw at least 50% of their total workforce from that same group to be eligible for the 7-year exemption.
Where can I find the official policy document for more details?
The Maharashtra Industries Investment and Services Policy 2025 is available on the MAITRI portal, usually under its policy or governance sections, and the PDF link is often posted on related government websites.
Sectors
- Lsi
- Maharashtra
- Exemption
- Electricity Duty
- Industrial Incentive
Details last verified on 16 September 2026. Source: the issuer's published information.