Punjab Ground Water Charge Relief
Department of Industries & Commerce, Government of Punjab · Central government
New Punjab MSMEs sourcing half their water from surface sources receive a 25% ground water charge exemption for 7 years.
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 C(13)(a) of the Industrial and Business Development Policy 2022 of Punjab, a unit that draws surface water for half of its total water requirement qualifies for a 25% exemption from ground water charges. This exemption runs for seven years, counted from the date of commercial production.
The provision is directed at new MSME units, whose water sourcing arrangements are still undecided when the plant is being designed. Since the surface-water share is the condition on which eligibility rests, it must be incorporated into the unit's water plan at the design stage; it cannot be added later as a retrofit.
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
- New MSME unit located in Punjab - Meets at least 50% of its total water requirement from surface water - Exemption applies for 7 years from the date of commercial production
How to apply
- Plan the unit's water supply so that surface water accounts for half of the total requirement, and record this in the project report - File the application on the Invest Punjab Business First portal under the Industrial and Business Development Policy 2022 - Along with the claim, furnish the water-source certification and the date of commercial production
Frequently asked questions
What is the qualifying condition?
An industry is required to meet half of its total water requirement from surface water sources.
How much is exempted?
25% of ground water charges.
From when does the 7-year period run?
From the date of commercial production.
Sectors
- Manufacturing Industrial
- Punjab
- Msme
- Ground Water Charges
- Surface Water
- Water Conservation
- Industrial Policy 2022
Details last verified on 18 September 2026. Source: the issuer's published information.