Punjab Electricity Duty Exemption (Large Units)
By Department of Industries & Commerce, Government of Punjab
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Quick Answer
Eligible large units in Punjab pay no electricity duty for 10 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 grants eligible large units a full waiver of electricity duty for 10 years. The exemption is the lower of two bounds: 100% exemption for 10 years up to 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. The clock starts 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 an energy-intensive plant the duty component of a monthly power bill is material, so a ten-year waiver changes the unit economics of running at full capacity in Punjab rather than a neighbouring state.
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 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 10 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 the period from release of the power connection; expansion cases count it from commercial production after expansion. The benefit arrives as a reduced power bill rather than a cash transfer.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Non-competitive. The department confirms eligibility under the policy, checks the DPR load and fixed capital investment that bound the exemption, and issues the exemption certificate to the power utility.
Application Process
- 1
Eligibility approval
The department approves the unit and its DPR under the policy.
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 10 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 10-year period start?
From release of the power connection for new units, and from commercial production after expansion for expansion cases.
Do expansion projects qualify?
Yes — the clause covers all eligible units, including expansion cases.
Sources
Data on this page is compiled from official program and provider references.
