Punjab Electricity Duty Exemption
Department of Industries & Commerce, Government of Punjab · Central government
Punjab's new and expanding units receive a 15-year, 100% electricity duty exemption, capped at 100% of fixed capital investment.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
Punjab's Industrial and Business Development Policy 2022 grants a 15-year electricity duty exemption to eligible new units and expansion projects. The benefit is limited to the lower of two figures: 100% of Fixed Capital Investment, or a full exemption on power consumption matching the electric load (KW) needed for the installed capacity stated in the approved DPR.
For a new unit, the exemption period begins on the date the power connection is released. For an expansion case, it begins on the date commercial production starts after expansion.
Since the load ceiling is linked to the approved DPR, the capacity recorded in that document determines the volume of consumption that can qualify for the exemption.
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 and expansion cases in Punjab are eligible. - Exemption is limited to whichever is lower: 100% of Fixed Capital Investment, or the power consumption corresponding to the electric load approved in the DPR. - For new units, the exemption is available for 15 years from the date the power connection is released. - For expansion cases, the exemption is available for 15 years from the date of commercial production after expansion.
How to apply
1. Enrol the unit on the Invest Punjab Business First portal. 2. File an application for electricity duty exemption under the Industrial and Business Development Policy 2022. 3. Provide the approved DPR, covering installed capacity and electric load, along with FCI particulars and the date on which the power connection was released. 4. Collect the exemption certificate and produce it before the power utility so that billing reflects the exemption.
Frequently asked questions
How long does the exemption last?
15 years.
What is the ceiling?
The subsidy is capped at whichever is lower: 100% of the Fixed Capital Investment, or a full 100% exemption on the power consumed for the electric load needed to run the DPR-approved installed capacity.
When does the period start?
The eligibility period begins on the date the power connection is released for new units, or on the date commercial production commences after expansion in expansion cases.
Do expansions qualify?
Yes, the clause applies to every eligible new unit as well as to expansion cases.
Sectors
- Punjab
- Electricityduty
- Industrialpolicy2022
- Powercost
- Manufacturing
- Stateincentive
Details last verified on 16 September 2026. Source: the issuer's published information.