Odisha Electricity Duty Exemption for Priority Sector Units
By Industries Department, Government of Odisha
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Quick Answer
New industrial units in Priority Sectors pay no electricity duty for 7 years from commercial production.
About this subsidy
The 'Electricity Duty Exemption (Priority Sectors)' program, part of the Industrial Policy Resolution 2022 by the Government of Odisha, is a key incentive designed to boost industrial growth and attract investments within the state's identified priority sectors. This scheme aims to significantly reduce the operational burden on new industrial units by eliminating electricity duty for a substantial period. By providing 100% exemption for seven years from the commencement of commercial production, the policy directly supports the financial viability and competitiveness of these emerging businesses, fostering a conducive environment for industrial expansion and job creation in Odisha. This forward-looking initiative underscores Odisha's commitment to industrial development and its support for enterprises driving economic progress.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Industries Department of the Government of Odisha is the state department responsible for the all-round industrial development of Odisha. Its own description is that this generates employment, attracts investment and supports the state's economy. It works from Kharavel…
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What You Get
New industrial units in Odisha's Priority Sectors receive a 100% exemption from the payment of Electricity Duty for a period of 7 years. This translates into substantial cost savings on operational expenses, significantly improving the cash flow and profitability of businesses during their crucial initial years. The exemption provides a competitive advantage, allowing units to invest more in expansion, technology upgrades, and job creation. This financial relief, a direct benefit under the Industrial Policy Resolution 2022, serves as a powerful incentive for establishing and scaling industrial operations within the state, reinforcing Odisha's position as an attractive investment destination.
- Disbursement
- Reimbursement
- Duration
- 85 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary benefit of the Electricity Duty Exemption scheme?
The scheme offers a 100% exemption from the payment of Electricity Duty for new industrial units in designated Priority Sectors.
How long does the exemption last?
The exemption is granted for a continuous period of seven years.
When does the seven-year exemption period officially begin?
The exemption period commences from the date the industrial unit officially starts its commercial production.
Which types of businesses are eligible for this exemption?
The scheme is specifically designed for 'new industrial units' that are established within the 'Priority Sectors' as defined by the Industrial Policy Resolution 2022 Odisha.
What constitutes a 'new industrial unit' and a 'Priority Sector'?
A 'new industrial unit' refers to an enterprise incorporated and commencing operations after the policy's effective date, focusing on manufacturing or service activities. 'Priority Sectors' are specific industries identified by the Government of Odisha for strategic growth and investment, detailed within the comprehensive Industrial Policy Resolution 2022.
Is there any specific application process to claim this exemption?
Yes, eligible units must follow the application and documentation procedures stipulated under the Industrial Policy Resolution 2022 Odisha, typically involving submission to the state's Department of Industries.
Can existing industrial units also avail this exemption?
No, the policy explicitly states that the exemption is for 'new industrial units' only.
Is this exemption applicable across all industries in Odisha?
No, it is specifically targeted at industrial units operating within the defined 'Priority Sectors' of Odisha.
Sources
Data on this page is compiled from official program and provider references.
