Odisha Electricity Duty Exemption for Priority Sector Units
Industries Department, Government of Odisha · Central government
Priority Sector industrial units pay no electricity duty for 7 years from commercial production.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 85 months
About this scheme
The Government of Odisha's Industrial Policy Resolution 2022 includes the Electricity Duty Exemption (Priority Sectors) programme, an incentive intended to encourage industrial growth and draw investment into the state's designated priority sectors. Under this scheme, new industrial units are relieved of electricity duty for a considerable duration, which lowers their operating costs.
A full 100% exemption applies for seven years, counted from the date commercial production begins. This measure is meant to strengthen the financial viability and competitiveness of newly established businesses, while creating conditions favourable to industrial expansion and job creation in Odisha.
The initiative reflects Odisha's approach to industrial development and its backing of enterprises that contribute to economic progress.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Odisha
- New industrial units - Located in Priority Sectors - Exemption applies from the date of commencement of commercial production
How to apply
Applicants seeking the Electricity Duty exemption under the Industrial Policy Resolution 2022 Odisha must follow the procedures set out in that policy.
1. Register formally and secure the requisite clearances as a 'new industrial unit' falling within one of the state's 'Priority Sectors'. 2. Once commercial production has commenced, prepare and file a detailed application with the relevant authority, in all likelihood the Department of Industries, Government of Odisha. 3. Attach supporting documentation establishing the unit's eligibility, the date of commercial production, and its classification under a priority sector.
Prospective applicants should refer to the full policy document or approach the department directly for the exact forms, checklists and submission timelines, so that their exemption claim is compliant and processed without delay.
Frequently asked questions
What is the primary benefit of the Electricity Duty Exemption scheme?
New industrial units operating in designated Priority Sectors receive a full exemption from Electricity Duty under this scheme.
How long does the exemption last?
The exemption runs for seven years without a break.
When does the seven-year exemption period officially begin?
The exemption begins on the date the industrial unit formally commences commercial production.
Which types of businesses are eligible for this exemption?
The scheme applies only to new industrial units set up in the Priority Sectors notified under the Industrial Policy Resolution 2022, Odisha.
What constitutes a 'new industrial unit' and a 'Priority Sector'?
A new industrial unit is an enterprise incorporated and beginning operations after the policy's effective date, engaged in manufacturing or service activities. Priority Sectors are the industries the Government of Odisha has identified for strategic growth and investment under the Industrial Policy Resolution 2022.
Is there any specific application process to claim this exemption?
Eligible units are required to follow the application and documentation process laid down in the Industrial Policy Resolution 2022 Odisha, which generally means filing with the state's Department of Industries.
Can existing industrial units also avail this exemption?
No. The policy limits the exemption to new industrial units.
Is this exemption applicable across all industries in Odisha?
No. It applies only to industrial units that operate within Odisha's designated Priority Sectors.
Sectors
- Electricity Duty
- Industrial Policy
- Odisha
- Cost Saving
- Priority Sector
Details last verified on 18 September 2026. Source: the issuer's published information.