MSME incentive ceiling (Table 4 of the GR)
| Zone | Ceiling (% of fixed capital investment) | Period |
|---|---|---|
| Group A | 30% | 5 years |
| Group B | 40% | 7 years |
| Group C | 50% | 7 years |
| Group D | 60% | 10 years |
| Group D+ | 70% | 10 years |
| Vidarbha, Marathwada, Ratnagiri, Sindhudurg, Jalgaon, Dhule | 80% | 10 years |
| Aspirational districts (Dharashiv, Gadchiroli, Washim, Nandurbar), no-industry and Naxal-affected areas | 100% | 10 years |
The ceiling is the total of the incentives the unit can draw – mainly SGST reimbursement (industrial promotion subsidy), interest subsidy and electricity duty exemption – not a cash grant on day one.
Main components
- Reimbursement of SGST paid by the unit, within the zone ceiling.
- Interest subsidy up to 5% on the term loan.
- Electricity duty and stamp duty exemption.
- Power tariff subsidy of ₹1 per unit for 3 years (maximum ₹1 crore) for new units in Group D, D+ and the special districts.
- Energy audit (50%, up to ₹2 lakh) and water audit (50%, up to ₹1 lakh) reimbursement.
Extra for special categories
- Women and SC/ST-owned units: additional 20% (Vidarbha, Marathwada and special districts), 10% (Group D/D+) or 5% (Group C), subject to ownership and employment conditions.
- Special-category MSMEs and ODOP units: additional 10% of FCI in plant and machinery, within a cumulative cap of 120% of FCI.
The GR is issued, but the operating scheme that sets out the claim procedure has not been notified yet. Keep dated records of every "effective step" – land, building plan approval, loan sanction, machinery orders – so your claim is complete once it opens.
Common questions
Can I claim MIISP-2025 incentives today?
Not yet. The policy GR was issued on 31.12.2025, but the operating scheme with the claim procedure has not been notified. Units starting now should plan and keep records so the claim can be filed once it opens.
Are hotels and hospitals covered?
No. Hotels are covered by the Tourism Policy. Hospitals are not eligible under the services package (only medical value travel is).
My unit started under PSI-2019. Which applies?
Units that took effective steps before the MIISP cut-over continue under PSI-2019 rules.
Source: Industries Department GR dated 31.12.2025 (Table 4, Tables 8–9). Taluka zone list as notified with the policy.