PSI-2019 Policy

The operating period of PSI-2019 Scheme is from 01.04.2019 to 31.03.2026.
New / Expansion / Diversification units in the manufacturing sector, MSME manufacturing units, IT / BT manufacturing units, and specified mechanised agro & food processing units.
Subsidy benefits under PSI-2019 Scheme depend on location classification: Group A, B, C, D, D+, Vidarbha / Marathwada / Ratnagiri / Sindhudurg / Dhule, No Industry Districts, Naxal-affected and Aspirational Districts.
For MSMEs, the basket of incentives generally ranges from 30% to 100% of the eligible Fixed Capital Investment (FCI), depending on location; Group A does not get normal basket incentives except for specified stand-alone incentives.
Certain units, such as eligible agro / food processing, green energy / bio-fuel, and Industry 4.0 units, may get 20% additional benefit, subject to an overall cap of 100% of the eligible FCI.
Eligible expansion/diversification projects generally get 80% of the incentives admissible to new units, with the eligibility period reduced by one year
Benefits are subject to timely application, completion of effective steps, commencement of commercial production, eligible investment within the prescribed investment period, local employment conditions, and issue of the Eligibility Certificate.