Odisha Electricity Duty Exemption for New Enterprises (MSME Policy)
By MSME Department, Government of Odisha
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Quick Answer
New enterprises with plant and machinery up to INR 50 crores get electricity duty exemption for 5 years, up to 750 WA contract demand.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Odisha
- Registrations needed
- Udyam registration
About this subsidy
This exemption comes from the Odisha MSME Development Policy 2022, not the Industrial Policy Resolution.
New enterprises in Odisha are exempt from paying electricity duty for five years from the date they start production. The exemption applies up to a contract demand of 750 WA. Your investment in Plant & Machinery must be up to INR 50 crores.
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 Micro, Small and Medium Enterprises Department, Government of Odisha, is the state department created to facilitate, promote and improve the competitiveness of micro, small and medium enterprises in Odisha. It sits in Kharavel Bhawan, Bhubaneswar, and administers the state's…
Learn moreBenefits & Funding
What You Get
This program provides a crucial exemption from the payment of electricity duty for new enterprises in Odisha. The benefit is available for a period of 5 years from the date of commencement of production and is applicable up to a contract demand of 750 WA. This directly translates to significant cost savings on operational expenses, thereby improving the financial viability and competitiveness of the business. It functions as a direct government subsidy, reducing the overall cost of doing business in the state and promoting industrial growth.
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the electricity duty exemption are typically reviewed by the MSME Department of Odisha or designated district authorities. The evaluation process focuses on verifying that the applying enterprise strictly meets the eligibility criteria, including the definition of a 'new enterprise,' the level of investment in Plant & Machinery (up to INR 50 crores), and the authenticated date of commencement of production. Once all criteria are validated, the exemption is approved based on compliance rather than a competitive selection.
Application Process
- 1
Submit Application
Submit the application for electricity duty exemption to the designated MSME authority in Odisha, along with all required supporting documents.
You - 2
- 3
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 Electricity Duty Exemption program?
This program, part of the Odisha MSME Development Policy 2022, offers new enterprises an exemption from paying electricity duty for a period of five years from their date of commencement of production. This exemption is valid for a contract demand up to 750 WA.
Which entities are eligible for this exemption?
New enterprises operating within the state of Odisha are eligible. They must have an investment in Plant & Machinery that does not exceed INR 50 crores to qualify for this benefit.
What is the duration of the exemption?
The electricity duty exemption is provided for a period of five years, calculated from the date the enterprise officially commences its production operations.
Is there a limit to the electricity demand covered by the exemption?
Yes, the exemption from electricity duty is applicable for a contract demand up to 750 WA. Any demand exceeding this limit may not be covered under the exemption.
How does this exemption benefit my business?
By eliminating the need to pay electricity duty for five years, your business will experience a significant reduction in operational costs. This financial saving can be reinvested into growth, expansion, or product development, enhancing the overall sustainability and profitability of your new enterprise in Odisha.
Do I need to be registered as an MSME to avail this benefit?
Yes, as this program is outlined in the Odisha MSME Development Policy 2022, it is expected that new enterprises seeking to claim this exemption will need to be registered as MSMEs and adhere to the policy's guidelines.
Sources
Data on this page is compiled from official program and provider references.
