Punjab Electricity Duty Waiver: Anchor Units

Under Clause 12.9 of the Industrial and Business Development Policy 2022 of Punjab, Anchor Units receive an electricity duty exemption lasting fifteen years, which exceeds the general large-unit track by five years. The relief is granted at 100% for the full fifteen-year period, subject to a ceiling: whichever is lower between 100% of Fixed Capital Investment and a 100% exemption on power consumption corresponding to the electric load in KW needed for the installed capacity stated in the approved DPR.

For new units, the exemption period begins on the date the power connection is released; for expansion cases, it begins on the date commercial production starts after expansion.

Anchor status is usually extended to energy-intensive plants, where electricity duty forms a genuine operating cost on each monthly power bill. Over fifteen years, the cumulative saving is considerable.

1. Obtain Anchor Unit status for the project; the DPR must state the installed capacity and electric load. 2. Submit the power connection application and note the release date, or the date commercial production begins after expansion. 3. Submit the electricity duty exemption application through the Invest Punjab Business First portal. 4. Enclose the approved DPR, particulars of fixed capital investment and the PSPCL connection documents. 5. Once sanctioned, PSPCL raises bills on the unit without electricity duty for the duration of the exemption period.

Anchor Unit status is conferred by the State at the point of project approval. The exemption that follows is administrative in nature: the department verifies the DPR load together with the fixed capital investment tied to it, and then issues the exemption certificate to the power utility.