Jharkhand Electricity Duty Reimbursement
Department of Industries, Government of Jharkhand · Central government
Jharkhand MSME Policy 2023 reimburses 100% electricity duty for five years from commercial production start.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
Clause 6.6 of the Jharkhand MSME Promotion Policy 2023 provides industrial units with complete exemption from electricity duty in their initial years of operation.
The State refunds **100% of the electricity duty** remitted by the unit for **5 years from the date of commencement of commercial production**. The advantage scales with the unit's actual power usage, as the policy imposes no monetary cap—only the full rate and the five-year period apply.
Since the countdown begins at commercial production commencement, a unit must anchor its claims to that event, not to its incorporation date or the start of construction.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Jharkhand
- Industrial units located in Jharkhand. - Commercial production must have commenced. - Reimbursement is available for a period of 5 years from the date of commencement of commercial production. - Claim must be made under the Jharkhand MSME Promotion Policy 2023.
How to apply
- Access the Jharkhand Single Window portal and file your application under the incentives offered by the MSME Promotion Policy 2023. - Provide documentation confirming the date on which commercial production began. - Furnish electricity bills that itemise the duty component paid during the claim period. - Attach the unit’s registration papers that demonstrate eligibility as per the policy.
How applications are assessed
The department does not run a competitive selection. It checks the date when commercial production began and the electricity duty that was actually paid, and then refunds the amount for claims made within the five-year period.
Frequently asked questions
How much electricity duty is reimbursed?
The unit is eligible for a full refund of the electricity duty it has paid, amounting to 100% of the amount.
How long does the benefit last?
Five years from the date commercial production begins.
When does the five-year period start?
The countdown for the scheme begins on the day commercial production starts, not from the date of incorporation or the start of construction.
Is there a maximum rupee amount?
The policy does not specify a rupee ceiling; the benefit is solely 100% of the electricity duty for five years.
Does this cover the whole electricity bill?
No, the scheme covers only the electricity duty component, not the energy charges themselves.
Where is this incentive defined?
Clause 6.6 of the Jharkhand MSME Promotion Policy 2023 provides the relevant provisions.
Sectors
- Manufacturing Industrial
- Jharkhand
- Msmepolicy2023
- Electricityduty
- Reimbursement
- Manufacturing
- Stateincentive
Details last verified on 9 September 2026. Source: the issuer's published information.