Punjab Border Zone EDC Exemption
Department of Industries & Commerce, Government of Punjab · Central government
Punjab's Border Zone and Kandi areas offer 100% EDC relief to the first two new units per sector with FCI of at least Rs 100 crore.
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
Punjab's Industrial and Business Development Policy 2022 offers full relief from External Development Charges — either through exemption or reimbursement — to the first two new units in every sector of manufacturing and service industry that locate in the Border Zone and Kandi areas. To qualify, a unit must commit a minimum Fixed Capital Investment of Rs 100 Crore.
Two conditions apply at once: the sector-wise limit of the first two units, and the Rs 100 Crore FCI floor. Both must be satisfied.
The design of the incentive therefore targets anchor projects capable of opening up an under-industrialised belt, rather than extending general relief across the area.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not required
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Jammu and Kashmir
- New units located in Punjab's Border Zone and Kandi areas - Restricted to the first two new units in each manufacturing and service industry sector - Minimum Fixed Capital Investment of Rs 100 Crore required - Relief provided through exemption or reimbursement of EDC charges
How to apply
1. Register the project on the Invest Punjab Business First portal. 2. File the application under the Border Zone & Kandi Area package of the Industrial and Business Development Policy 2022. 3. Attach land documents, the EDC demand or payment receipts, and evidence of the Rs 100 Crore FCI commitment. 4. The exemption is granted upfront, or charges already deposited are reimbursed.
Frequently asked questions
Which areas are covered?
Which areas of Punjab are covered? The Border Zone and Kandi areas of Punjab.
How many units can claim it?
Manufacturing and service businesses can each claim benefits for their first two new units.
Is there an investment threshold?
Yes. A minimum Fixed Capital Investment of Rs 100 Crore is required.
What form does the benefit take?
The scheme provides a full exemption from EDC charges, or reimbursement if these charges have already been paid.
Sectors
- Punjab
- Borderzone
- Kandiarea
- Edcexemption
- Industrialpolicy2022
- Anchorunit
Details last verified on 16 September 2026. Source: the issuer's published information.