Punjab IT/ITES Capital Subsidy

Under Clause 12.9 of the Industrial and Business Development Policy 2022 of Punjab, IT and ITES units can claim a capital subsidy calculated at 50% of Fixed Capital Investment, capped at ₹2.5 crore for each unit. In a software services or BPO business, fit-outs, servers, networking and workstations — not heavy plant — make up most of the fixed capital, which means a subsidy covering half the cost alters the payback period for setting up a delivery centre in the state to a substantial degree.

Once qualifying investment reaches ₹5 crore, the ₹2.5 crore ceiling is exhausted. Any spending above that figure attracts no further benefit under this clause.

1. Obtain approval for the IT/ITES project as an eligible unit under the Industrial and Business Development Policy 2022. 2. Finish the fixed capital investment and record the assets as capitalised in the books. 3. Submit the capital subsidy claim through the Invest Punjab Business First portal, attaching the chartered accountant's FCI certificate, invoices and asset records. 4. Include unit registration, lease or ownership documents for the premises, and employment particulars. 5. The subsidy is disbursed once the department has verified the fixed capital investment.

The department first confirms that the unit meets the IT/ITES definition laid down in the policy, and then audits the Fixed Capital Investment that has been claimed. Once this verification is complete, sanction is issued for 50% of the audited investment, subject to a maximum of ₹2.5 crore.