Odisha Electricity Duty Exemption for New Enterprises (MSME Policy)
MSME Department, Government of Odisha · Central government
New enterprises with plant and machinery up to INR 50 crores receive a 5-year electricity duty exemption, capped at 750 WA contract demand.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Scheme duration
- 5 years
About this scheme
The Odisha MSME Development Policy 2022 — not the Industrial Policy Resolution — provides the Electricity Duty Exemption scheme. Under it, new enterprises in the state can avoid paying electricity duty for five years, counted from the date they begin production.
The exemption applies to a contract demand of up to 750 WA. Businesses with moderate to substantial power needs therefore stand to gain.
By lowering the cost of electricity consumption, the scheme seeks to make new MSMEs more competitive, support industrialisation in Odisha, and create conditions favourable to business expansion. It operates as a direct form of government support, easing the financial load on emerging enterprises and furthering economic development.
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
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Odisha
- The enterprise must be a new enterprise operating in Odisha. - Investment in Plant & Machinery must not exceed INR 50 crores. - The exemption remains valid for 5 years from the date of commencement of production.
How to apply
Under the Odisha MSME Development Policy 2022, the Electricity Duty Exemption is claimed through the policy's general application process. In the usual course, a new enterprise files an application with the concerned district or state MSME authority, attaching papers that establish its standing as a 'new enterprise', particulars of its investment in Plant & Machinery, and the official date on which production commenced. The exemption is granted for the stipulated five-year period once the application has been scrutinised and cleared. The policy's implementation guidelines set out the individual forms to be used and the channels through which applications are to be submitted.
How applications are assessed
The MSME Department of Odisha, or the district authorities it designates, generally handles scrutiny of electricity duty exemption applications. Assessment centres on confirming that the applicant enterprise satisfies each eligibility condition without exception — that it qualifies as a 'new enterprise', that its investment in Plant & Machinery does not exceed INR 50 crores, and that the date of commencement of production is properly authenticated.
Approval follows once every criterion is verified. Because the exemption rests on compliance, there is no competitive selection among applicants.
Frequently asked questions
What is the Electricity Duty Exemption program?
Under the Odisha MSME Development Policy 2022, new enterprises can claim an exemption from electricity duty for five years starting from the date they commence production, applicable to a contract demand of up to 750 WA.
Which entities are eligible for this exemption?
Enterprises newly set up in Odisha qualify, provided their investment in plant and machinery stays within INR 50 crores.
What is the duration of the exemption?
Electricity duty relief applies for five years, counted from the date the enterprise formally begins production.
Is there a limit to the electricity demand covered by the exemption?
Electricity duty exemption applies where contract demand does not exceed 750 WA; demand above this limit may fall outside the exemption.
How does this exemption benefit my business?
For five years your business pays no electricity duty, which lowers operational costs. The money saved can be put back into growth, expansion or product development, improving the sustainability and profitability of your new enterprise in Odisha.
Do I need to be registered as an MSME to avail this benefit?
Yes. Under the Odisha MSME Development Policy 2022, new enterprises claiming this exemption must be registered as MSMEs and comply with the policy's guidelines.
Sectors
- Odisha
- Msme
- Electricity
- Duty Exemption
- Incentive
- Manufacturing
Details last verified on 18 September 2026. Source: the issuer's published information.