How zones are determined
The Maharashtra Tourism Policy 2024 classifies the state into geographic zones based on development level and tourism potential. Your project's location determines the percentage of fiscal incentives you receive. Mega and Ultra-Mega project thresholds also vary by zone.
Complete zone comparison table
Rates below reflect Large / Mega hotel and resort projects (Category A). MSME units and homestays follow separate eligibility periods under MTP 2024 — typically shorter SGST windows (e.g. 5–7 years for MSME, 3–5 years for homestays in Zones A–C).
| Zone | Area | Mega FCI | Jobs | Stamp duty | SGST | SGST yrs | Electricity | Interest ceiling |
|---|---|---|---|---|---|---|---|---|
| Zone A | Mumbai, Thane, Navi Mumbai Municipal Area | ₹300 Cr | 400 | 50% | 50% | 5 | 50% | ₹20L |
| Zone B | Nashik, Pune, Aurangabad, Nagpur Municipal Corporations | ₹150 Cr | 200 | 75% | 75% | 7 | 75% | ₹25L |
| Zone C | Rest of Maharashtra (excluding Zones A & B) | ₹100 Cr | 50 | 100% | 100% | 10 | 100% | ₹30L |
| STZ / STD | Specially Declared Tourism Zones & Destinations | ₹50 Cr | 50 | 100% | 100% | 10 | 100% | ₹50L |
Zone A — Mumbai, Thane, Navi Mumbai Municipal Area
Mega project threshold: ₹300 crore FCI and 400 direct jobs. Stamp duty exemption at 50%. SGST reimbursement at 50% of net SGST paid for 5 years. Electricity duty exemption at 50% plus 50% of the commercial-to-industrial tariff differential. Interest subvention up to 5% on term loans (cap ₹5 Cr, ceiling ₹20 lakh).
Zone B — Nashik, Pune, Aurangabad, Nagpur Municipal Corporations
Mega project threshold: ₹150 crore FCI and 200 direct jobs. Stamp duty exemption at 75%. SGST reimbursement at 75% of net SGST paid for 7 years. Electricity duty exemption at 75% plus 75% of the commercial-to-industrial tariff differential. Interest subvention up to 5% on term loans (cap ₹10 Cr, ceiling ₹25 lakh).
Zone C — Rest of Maharashtra (excluding Zones A & B)
Mega project threshold: ₹100 crore FCI and 50 direct jobs. Stamp duty exemption at 100%. SGST reimbursement at 100% of net SGST paid for 10 years. Electricity duty exemption at 100% plus 100% of the commercial-to-industrial tariff differential. Interest subvention up to 5% on term loans (cap ₹15 Cr, ceiling ₹30 lakh).
STZ / STD — Specially Declared Tourism Zones & Destinations
Mega project threshold: ₹50 crore FCI and 50 direct jobs. Stamp duty exemption at 100%. SGST reimbursement at 100% of net SGST paid for 10 years. Electricity duty exemption at 100% plus 100% of the commercial-to-industrial tariff differential. Interest subvention up to 5% on term loans (cap ₹20 Cr, ceiling ₹50 lakh).
Ultra-Mega projects (entire state)
Projects anywhere in Maharashtra with ₹500 crore FCI and 800 direct jobs qualify as Ultra-Mega tourism units. Benefits include 10% capital incentive (cap ₹25 Cr), 100% SGST for 15 years, 100% stamp duty and electricity exemptions, and interest subvention up to ₹75 lakh on loans up to ₹25 crore.
Which zone is best for hotel investment?
Zone C and STZ/STD offer the highest incentive percentages (100% stamp duty, 100% SGST, 100% electricity). However, Zone A (Mumbai) commands premium room rates that can justify lower incentive percentages. The optimal zone depends on your project's revenue model, land cost, and target segment. Our advisors help you model total policy benefit against project economics for each zone.