Punjab Mandi Fee Exemption 2022
Department of Industries & Commerce, Government of Punjab · Central government
Punjab waives mandi fees, RDF and other taxes on extra raw material bought by an expanding manufacturing unit, up to 100% of its fixed capital investment.
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
Under Clause 12.2.2(d) of the Industrial and Business Development Policy 2022 of Punjab, a manufacturing unit undertaking expansion is relieved of mandi fees, Rural Development Fund (RDF) and similar levies, but only on the additional raw material it buys over and above its baseline. That baseline is fixed as whichever is higher — the unit's average raw-material purchase quantity across the three preceding years, or its average over the 12 months preceding the date on which expansion of the eligible product or activity begins. Certification of the baseline rests with the District Mandi Officer concerned.
The exemption applies solely to purchases exceeding the baseline. The total benefit a unit may claim cannot exceed 100% of the fixed capital investment made in the expansion. While the policy specifies the FCI percentage, it does not prescribe any ceiling in rupees.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Punjab
- Manufacturing unit already operating in Punjab - Carrying out expansion, whether or not accompanied by modernisation or diversification - Incremental raw-material purchase certified by the concerned District Mandi Officer
How to apply
1. File the application through the Invest Punjab Business First portal, which operates under Punjab's Industrial and Business Development Policy 2022. 2. Obtain certification of the incremental raw-material purchase quantity from the District Mandi Officer having jurisdiction. 3. Provide documentary evidence of the fixed capital investment made towards the expansion.
Frequently asked questions
How is the incremental quantity worked out?
The benchmark is whichever is greater: your average raw-material purchase quantity over the three preceding years, or over the 12 months prior to the date on which expansion of the eligible product or activity begins.
Who certifies the incremental purchase?
The concerned District Mandi Officer.
Is there a rupee cap?
The exemption is not expressed as a rupee amount; it covers up to 100% of fixed capital investment.
Sectors
- Manufacturing Industrial
- Punjab
- Mandi Fee
- Rdf
- Expansion
- Manufacturing
- Industrial Policy 2022
Details last verified on 14 September 2026. Source: the issuer's published information.