Punjab Electricity Duty Waiver: Anchor Units
By Department of Industries & Commerce, Government of Punjab
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Quick Answer
Anchor units in Punjab pay no electricity duty for 15 years, bounded by 100% of fixed capital investment or their approved DPR load.
About this subsidy
Clause 12.9 of Punjab's Industrial and Business Development Policy 2022 gives Anchor Units a fifteen-year electricity duty holiday — five years longer than the general large-unit track. The exemption is 100% for 15 years, limited to whichever is lower of 100% of Fixed Capital Investment or 100% exemption on the power consumption corresponding to the electric load in KW required for the installed capacity recorded in the approved DPR. It counts from the date of release of the power connection for new units and from the date of commercial production after expansion for expansion cases. For the energy-intensive plants that typically get anchor status, duty on a monthly power bill is a real operating line, and fifteen years of it is a substantial cumulative saving.
Eligibility
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Subsidy providers
The Department of Industries & Commerce is the Government of Punjab's department that runs the Punjab Start-up Cell. The Cell is headed by the Director of Industries and Commerce and acts as a single point of contact for the state's startup policy. The department is based at…
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What You Get
A 100% exemption from electricity duty for 15 years, capped at whichever is lower of 100% of Fixed Capital Investment or the power consumption corresponding to the electric load (KW) required for the installed capacity in the approved DPR. New units count from release of the power connection; expansion cases from commercial production after expansion. It arrives as a reduced power bill rather than a cash transfer.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Anchor Unit status is granted by the State at project approval. The exemption itself is administrative: the department checks the DPR load and fixed capital investment that bound it, and issues the exemption certificate to the power utility.
Application Process
- 1
Anchor status
The State accords Anchor Unit status and approves the DPR.
Provider - 2
- 3
- 4
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.
Frequently Asked Questions
How much duty is waived?
100% of electricity duty, for 15 years.
What limits the exemption?
Whichever is lower of 100% of Fixed Capital Investment, or the power consumption corresponding to the electric load recorded in the approved DPR.
When does the period start?
From release of the power connection for new units, and from commercial production after expansion for expansion cases.
How does it compare with the large-unit exemption?
Large units get the same 100% exemption but for 10 years; anchor units get 15.
Sources
Data on this page is compiled from official program and provider references.
