Punjab Variable Power Tariff Scheme

The Government of Punjab introduced the Freezing of Power Tariff – Variable Tariff scheme as part of its Industrial Policy 2022. Under this measure, manufacturing units and IT & ITES industries in the state are supplied power at a fixed variable tariff, which lowers operating costs and supports industrial growth. The intent is to build a more competitive environment for industrial units, drawing investment, generating jobs and advancing economic development in Punjab. For industries dealing with rising input costs, the scheme helps them hold on to operational efficiency and concentrate on expanding within the state.

Eligibility covers a wide range of industries. All manufacturing units and IT & ITES businesses situated in approved industrial parks may apply. Large-scale recreational facilities, such as amusement and adventure parks, are also included, in recognition of their role in tourism and local economies.

The tariff benefit runs for five years and carries a moderate annual increase. This structure gives businesses predictability and stability for financial planning, which the state positions as a factor in making Punjab an attractive destination for industrial investment and expansion.

Industries seeking this power tariff benefit must submit an application through the channels notified under the Punjab Industrial Policy 2022. In most cases, this means filing with the state department or nodal agency that administers industrial incentives. The applicant has to establish eligibility on the basis of industry type, location and operational status. Documents such as proof of industrial operation, registration details and, where applicable, a completed application form will be needed. For the detailed procedure and application guidelines, refer to the official policy document or the Punjab Industrial Policy portal.

The Government of Punjab, or one of its industrial development agencies, generally assigns a committee or a nominated authority to scrutinise each variable power tariff application. Their examination centres on whether the applicant satisfies the conditions set out in the Industrial Policy 2022 — specifically the classification of the industry, where it is situated, and whether it is in operation. Where these conditions are met, the concession is taken forward and linked to the industry's power connection.