The Incentive Equation in Maharashtra Is Changing — And Pune Could Be a Big Winner
- CRE Consultants
- Jun 13
- 3 min read
The landscape of industrial incentives in Maharashtra has just undergone a generational shift. As of mid-2026, the state has transitioned from its long-standing 2019 policy into a more aggressive framework designed to cement its status as a trillion-dollar economy.
1. The Last Major Policy: PSI-2019
Before the current overhaul, the Package Scheme of Incentives 2019 (PSI-2019) was the governing framework.
Validity: April 1, 2019 – March 31, 2024 or issuance of notification of the new policy whichever is later .
The "Pune Problem": Under this scheme, Pune was strictly a "Group A" area (Highly Developed).
Minimal Incentives: Incentives were mostly limited to Stamp Duty and Electricity Duty exemptions for specific IT/BT units. If you weren't a "Mega Project," you got very little back from the state for setting up in Pune.
2. The Current Change: MIISP 2025
The "new" equation referenced in current news is the Maharashtra Industries, Investment and Services Policy 2025, which was rolled out to succeed the 2019 policy.
The Transition Date: The policy was unveiled in December 2025 and officially came into force for the period December 31, 2025, to December 30, 2030.
Latest News Hook: On May 27, 2026, the Cabinet Sub-committee approved a massive ₹89,731 crore package for five mega-projects under this new framework.
Expanded Reach: Under the new policy, regions under Group A may also be able to avail the package scheme of incentives. This change specifically targets high-tech, service-oriented, and "green" industries, offering them 100% Gross SGST reimbursement on intra-state sales.
3. Why Pune is a "Big Winner" Now
While older policies pushed industries away from Pune toward "lesser-developed" zones, the 2025 policy recognizes Pune's role as a global hub for High-Tech and Future Sectors.
GCC & R&D Hubs: The new Global Capability Center (GCC) Policy 2025 specifically targets Pune's talent pool, offering up to 20% capital subsidies and payroll incentives that didn't exist in this form previously.
EV & Semiconductors: Pune’s existing automotive ecosystem is the primary beneficiary of the new "Ultra-Mega Project" incentives for Electric Vehicles and battery manufacturing.
Service Sector Parity: For the first time, the state is offering a "Basket of Incentives" for the service sector (IT, Logistics, and R&D) that rival those previously reserved only for heavy manufacturing.
Policy Comparison: The Old Way vs. The New Way
Feature | The Old Way (PSI-2019) | The New Way (MIISP-2025) |
Zone A Treatment | Mostly ignored; incentives pushed to rural areas. | Manufacturing: MSME/LSI may now be eligible for a 30% overall ceiling of Fixed Capital Investment (FCI) with a 5-year eligibility period . Electronics/EV: 100% of Fixed Capital Investment (FCI) with a 7-year eligibility period . Food: 50% of Fixed Capital Investment (FCI) with a 10-year eligibility period. |
Service Sector | Secondary to Manufacturing. | Direct Parity: GCCs (Global Capability Centers) and IT hubs in Pune now get capital subsidies and EPF reimbursements. |
Sustainability | Small "Green" top-ups. | Deep Integration: Massive incentives for EV battery units and "Circular Economy" projects—perfect for Pune’s auto belt. |
4. Deep Dive: Illustration for Group A
(Chakan / Talegaon / Nagar road-Pune)
To understand how this policy functions in practice, consider an eligible MSME making a Fixed Capital Investment (FCI) of ₹50 Crore:
Maximum Eligibility of Incentives: Approximately ₹15 Crore.
Investment Period: The eligible MSME will get a 03-year investment period. The eligible capex will be determined based on the investment in fixed capital investment within these 03 years.
Stamp Duty: 50% of Stamp Duty is Exempted for the Lease of Land / Purchase of Land.
Claiming FCI: The Industrial Promotion Subsidy will be based on a 100% refund of GROSS SGST Collected over the 1st Sale within Maharashtra over a period of 05 Years.
Yearly Cap: The total available incentives will be equally distributed over a period of 05 Years starting from the Date of Commencement of Production.
Lease Eligibility: Does it work for sale or lease? Yes. The subsidy is available for leased premises, subject to a minimum lease period of 15 years.
Conclusion
The transition from PSI-2019 to MIISP-2025 marks a foundational shift in how Maharashtra incentivizes industrial and commercial growth. By eliminating the "Group A" barriers that previously limited Pune's manufacturing and service sectors, the new policy provides significant financial pathways—ranging from robust SGST refunds to specialized GCC and EV subsidies. For businesses looking to establish or expand their footprint in Pune's highly developed ecosystem, the financial equation has never been more favorable.
