Punjab Micro & Small Capital Subsidy
Department of Industries & Commerce, Government of Punjab · Central government
Punjab gives new micro and small manufacturing units up to INR 50 lakh capital subsidy: 50% of fixed capital investment in priority districts, 20% elsewhere.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹50,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
Under Clause 12.8 A(2) of the Industrial and Business Development Policy 2022, Punjab extends a capital subsidy to newly established micro and small manufacturing units operating in thrust sectors, to exporting units, and to micro and small service enterprises carrying out R&D.
Units located in border districts, Kandi areas, Aspirational Districts, and in Bathinda, Faridkot, Mansa, Muktsar, Sangrur, Malerkotla and Barnala receive 50% of fixed capital investment, capped at INR 50 lakh per unit. For the rest of Punjab, the rate is 20% of FCI, likewise capped at INR 50 lakh.
Capital subsidy already drawn under a Government of India scheme or under any other state's scheme does not qualify for this incentive. The same rupee cannot be claimed twice.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Punjab
Eligibility conditions:
- The unit is a new micro or small manufacturing enterprise operating in a thrust sector; or - The unit is an exporting unit; or - The unit is a micro or small service enterprise carrying out R&D activities. - The unit is located in Punjab. A higher rate applies to border districts, Kandi areas, Aspirational Districts, and Bathinda, Faridkot, Mansa, Muktsar, Sangrur, Malerkotla and Barnala. - The unit has not already availed capital subsidy under any Government of India or State scheme.
How to apply
1. Enrol the unit as an MSME (Udyam) and file the application under the Industrial and Business Development Policy 2022 through the Invest Punjab Business First portal. 2. Furnish evidence of fixed capital investment (plant, machinery, building) attested by a chartered accountant. 3. Disclose any capital subsidy already drawn under a Government of India or State scheme.
Frequently asked questions
Which districts get the higher 50% rate?
Which areas fall under this scheme? It covers border districts, Kandi areas and Aspirational Districts, along with Bathinda, Faridkot, Mansa, Muktsar, Sangrur, Malerkotla and Barnala.
What is the ceiling?
The scheme provides INR 50 lakh per unit at both the 50% and 20% rates.
Can service enterprises apply?
Which businesses qualify? Micro and small service enterprises carrying out research and development work are eligible, as are manufacturers in thrust sectors and exporting units.
Can I also claim a central capital subsidy?
Capital subsidy received under any Government of India or State scheme does not qualify for this incentive.
Sectors
- Manufacturing Industrial
- Punjab
- Msme
- Capital Subsidy
- Manufacturing
- Thrust Sector
- Border Districts
- Industrial Policy 2022
Details last verified on 18 September 2026. Source: the issuer's published information.