Punjab Ultra Mega Power Tariff

Under Punjab's Industrial and Business Development Policy 2022, Ultra Mega Projects are extended a power tariff of Rs. 5.50 per KVAh. This rate applies for five years, counted from the date the permanent power connection is released. Compared with mega projects, this gives Ultra Mega Projects an additional year under the concessional tariff.

Where a plant operates at a high load factor, the savings accrued on the recurring tariff generally exceed what one-time capital concessions would deliver. The five-year period begins at the permanent connection, not at commercial production. For this reason, the timing of the connection is a matter worth aligning deliberately with the commissioning schedule.

1. Secure approval for the project as an Ultra Mega Project in accordance with the Industrial and Business Development Policy 2022. 2. Complete registration on the Invest Punjab Business First portal, then file an application for the variable power tariff. 3. Provide the Ultra Mega Project approval along with the date on which the permanent power connection was released. 4. The unit's power billing is then charged at the concessional tariff.