Punjab MSME Electricity Duty Waiver
Department of Industries & Commerce, Government of Punjab · Central government
Punjab MSMEs that are new or expanding get a 7-year, 100% electricity duty exemption, capped at the lower of fixed capital investment or approved DPR load.
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 12.8 B(7) of the Industrial and Business Development Policy 2022 of Punjab, MSME units receive a full exemption from electricity duty for a period of seven years. Two ceilings govern this benefit, and whichever is lower will apply: the total exemption cannot go beyond 100% of fixed capital investment, and it is restricted to the power consumption that matches the electric load (KW) needed for the installed capacity stated in the approved DPR.
For a new unit, the seven-year period begins on the date the power connection is released. In the case of an expansion, it begins on the date of commercial production after expansion.
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
- MSME unit located in Punjab, whether a new unit or an expansion case - Electric load as recorded in the approved DPR - Period reckoned from the release of power connection for new units, or from the date of commercial production after expansion
How to apply
1. Complete Udyam registration as an MSME, then obtain approval for the Detailed Project Report, including the electric load specified in it. 2. File the application through the Invest Punjab Business First portal under the Industrial and Business Development Policy 2022. 3. Provide documentation of the power connection release date or commercial production date, along with evidence of fixed capital investment.
Frequently asked questions
When does the 7-year period start?
The eligibility period begins on the date the power connection is released for a new unit, or on the date commercial production starts in the case of an expansion.
Is all my consumption exempt?
Eligible electricity duty exemption applies only to the consumption matching the electric load (KW) needed for the installed capacity stated in the approved DPR, and is capped at 100% of FCI, whichever is lower.
Is there a rupee cap?
The scheme does not specify any rupee ceiling; instead, the limits are set at 100% of fixed capital investment and the load approved in the DPR.
Sectors
- Manufacturing Industrial
- Punjab
- Msme
- Electricity Duty
- Power
- Manufacturing
- Industrial Policy 2022
Details last verified on 18 September 2026. Source: the issuer's published information.