Quick answer: MIISP 2025 is Maharashtra’s new industrial incentive policy. It was announced on 31 December 2025 and replaces the Package Scheme of Incentives 2019 (PSI 2019). It runs until 30 December 2030. The headline change: factories in Pune and Mumbai (Zone) now get a subsidy for the first time. Most other zones get higher caps too. But the detailed rules are still being released, so PSI 2019 remains active for now. Which scheme you fall under depends on when you file.

If you are planning a manufacturing unit in Maharashtra right now, you are standing between two schemes.

PSI 2019 is the old scheme. It is still operating. MIISP 2025 is the new policy. It is announced but not fully rolled out.

File at the wrong time, in the wrong way, and you could receive the lower benefit of the two. File smart, and you lock in the better deal. This guide explains what MIISP 2025 offers and what has changed from PSI 2019.

What Is MIISP 2025?

MIISP 2025 stands for the Maharashtra Industries, Investment and Services Policy 2025. It is the state’s master plan for industrial growth over the next five years. The government issued it on 31 December 2025, and it stays valid until 30 December 2030.

The goals are big. Maharashtra wants ₹70.5 lakh crore in new investment and 50 lakh new jobs by 2030. It wants to become India’s first trillion-dollar state economy.

For you as a manufacturer, MIISP 2025 means one thing: a fresh basket of subsidies. The main ones are the Industrial Promotion Subsidy (an SGST refund), a new capital subsidy for priority sectors, stamp duty exemption, interest subsidy, power tariff subsidy, electricity duty exemption, and a new EPF reimbursement for job creation.

And for the first time ever, the service sector gets incentives on par with manufacturing. IT, logistics, tourism, finance, and similar businesses can now claim benefits too.

PSI 2019 vs MIISP 2025: What Actually Changed?

The core structure stays the same. Maharashtra still divides its talukas into zones (Group A, B, C, D, D+, plus special regions). Less developed zones still get bigger subsidies for longer periods.

What changed is the numbers. Here is the zone-wise SGST refund cap (as a % of your Fixed Capital Investment) under both schemes:

Three takeaways from this table:

Group A wins big. Under PSI 2019, a factory in Pune city got nothing. Under MIISP 2025, it gets up to 30% of its investment back over 5 years. This is the single biggest change in the policy.

Middle zones got a raise. Groups B, C, D, and D+ each moved up by 10 percentage points.

Backward regions stay at the top. The special belt and aspirational districts keep their 80% and 100% caps. The gap between zones is smaller now, but location still matters a lot.

What Is Completely New in MIISP 2025?

1. Capital Subsidy for Priority Sectors
   Units in priority and thrust sectors can receive a direct cash subsidy of up to 20% of eligible investment, capped at ₹25 crore overall and ₹5 crore per year. This benefit is available only for sectors such as pharma, EVs, auto components, aerospace, food processing, electronics, batteries, and green energy.
2. EPF Reimbursement for Job Creation
   Units in Group D, Group D+, and lower-developed regions can claim reimbursement of 50% of the employer’s EPF contribution for up to 5 years.
3. Stamp Duty Relief in Group A and B
   MIISP 2025 introduces a 50% stamp duty waiver on the first eligible land or building deed in Group A and Group B regions. Group C onwards continue to receive 100% exemption.
4. Service Sector Incentives
   IT, BPO, logistics, tourism, and other service businesses can now claim incentives such as EPF reimbursement, rental subsidies, stamp duty exemption, and skilling support. Eligibility is linked to employment generation rather than capital investment.
5. Higher Benefits for Thrust Sectors
   Food processing, green energy, and Industry 4.0 projects receive a 20% higher subsidy cap and an additional 2 years of benefits beyond standard zone incentives.

What Got Tighter in MIISP 2025?

It is not all good news. A few things became less generous:

• Expansion projects now get 75% of the incentives given to new units (it was 80% under PSI 2019), with one year less eligibility.
• Interest subsidy is capped at ₹1 crore per year and is not available in Group A and B for most units.
• Power tariff subsidy starts only from Group C, with caps of ₹1 crore for MSMEs and ₹1.5 crore for LSIs.
• Employment conditions are stricter. Mega projects must maintain their promised workforce through the whole benefit period or lose incentives.

Who Can Apply Under MIISP 2025?

The eligible list looks a lot like PSI 2019:

• Manufacturing units under the MSMED Act, 2006
• Industries in the First Schedule of the IDRA Act, 1951
• IT and biotech manufacturing units registered with DIC, MIDC, SEEPZ, or STPI
• Food and agro-processing units
• Service sector units (new under MIISP 2025)

Both new units and expansions qualify. Mega and ultra-mega projects get customised packages approved by a Cabinet Sub-Committee chaired by the Chief Minister.

Who is out: alcohol, tobacco, and cigarette makers, and textile units covered by the separate Textile Policy.

Which Scheme Applies to You Right Now?

This is the most important question in 2026, so let us be clear.

MIISP 2025 has been announced, but the detailed implementing rules (the incentive GRs) are still being published. Until those rules are out, PSI 2019 remains operative.

Here is how it plays out:

• Effective steps done, application not yet filed? You can still file under PSI 2019 today. For units in backward zones, PSI 2019 terms may be better than waiting.
• Planning a new unit in Pune, Mumbai, or another Group A area? MIISP 2025 is your scheme. You were entitled to nothing before. Now you can get 30% of your investment back.
• If you wait and get moved to the new scheme, you may receive the lower of the PSI 2019 or MIISP 2025 benefits. In some zones that means less money.

The transition window is exactly where manufacturers lose crores by guessing. This needs case-by-case analysis based on your zone, sector, and project stage. Bizastra runs this comparison as part of our free eligibility assessment.

Quick Answer: To claim MIISP 2025 incentives, businesses must identify their zone, complete an effective step, obtain an Eligibility Certificate, start production, and file annual claims with supporting GST and CA-certified documents.

How to Apply for MIISP 2025 in Maharashtra

1. Check your taluka’s zone. Your zone determines the maximum incentive percentage and benefit period available under MIISP 2025.
2. Complete an effective step. Purchase land, obtain an MIDC allotment, secure MPCB consent, or incorporate your company.
3. Prepare required documents. Gather your Udyam Registration or IEM, MPCB Consent to Establish, CA-certified investment certificate, and project report.
4. Apply for an Eligibility Certificate. Submit your application through the Invest Maharashtra portal before commercial production begins.
5. Start commercial production. Begin manufacturing and generate eligible sales within Maharashtra.
6. File annual incentive claims. Submit GST returns and CA-certified investment data every year to continue receiving benefits.

What Should You Do Now?

Three steps, today:

1. Map your zone under both schemes. Your taluka’s group decides whether PSI 2019 or MIISP 2025 pays you more.
2. Check your sector. If you are in pharma, EV, electronics, food processing, or green energy, the new capital subsidy could add crores to your benefit.
3. Time your filing. The transition window will not stay open forever. Filing early can lock in the better scheme.

You can also read about: Production Linked Incentive (PLI) Scheme 2026

Bizastra’s CA-led team has handled subsidy mandates across all zones in Maharashtra, ranging from MSMEs to mega projects. We will tell you which scheme pays you more and file it right the first time. Get a free eligibility assessment with a subsidy report in 3 business days.

📞 +91 84849 54611 · ✉ always@bizastra.com · 🌐 bizastra.com/contact-us

Frequently Asked Questions

What is MIISP 2025 in simple words?

MIISP 2025 is Maharashtra’s new industrial subsidy policy. It replaces PSI 2019 and runs from 31 December 2025 to 30 December 2030. Set up or expand a unit in the state and you can get an SGST refund of 30% to 100% of your investment, plus stamp duty waiver, interest subsidy, cheaper power, and EPF reimbursement, depending on your zone and sector.

Is PSI 2019 over now?

Not yet. The detailed rules for MIISP 2025 are still being published. Until they are out, PSI 2019 remains operative. Units that completed effective steps under PSI 2019 can still file under it today.

What is the biggest change in MIISP 2025?

Group A areas like Pune and Mumbai now get a subsidy for the first time: 30% of Fixed Capital Investment over 5 years. Under PSI 2019, these areas got nothing. The new capital subsidy for priority sectors (20% of investment, up to ₹25 crore) is the other headline change.

Is MIISP 2025 better than PSI 2019?

For Group A and B units, yes. Caps went up in almost every zone. But expansion projects get a smaller share than before, and some subsidies now carry tighter caps. Units in backward zones that already qualify under PSI 2019 should compare both before filing.

Does MIISP 2025 cover service businesses?

Yes, and this is a first for Maharashtra. IT, BPO, logistics, tourism, finance, and other service units can claim EPF reimbursement, rental subsidies, stamp duty exemption, and skilling support. Eligibility is based on jobs created.

What is the capital subsidy under MIISP 2025?

It is a direct grant of 20% of your eligible investment, capped at ₹25 crore total and ₹5 crore per year. It is only for priority and thrust sectors like pharma, EV, aerospace, electronics, food processing, and green energy. General manufacturers do not get it.

How do I apply for MIISP 2025 benefits?

Confirm your taluka’s zone, complete an effective step (land purchase, MIDC allotment, MPCB consent, or incorporation), and apply for an Eligibility Certificate on the Invest Maharashtra portal before starting production. MSMEs apply through their District Industries Centre. Then file claims each year with CA-certified data.

Sources:

• PSI 2019 GR
• MIISP 2025 policy via MAITRI