Punjab Electricity Duty Exemption
By Department of Industries & Commerce, Government of Punjab
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
New and expanding Punjab units get 100% electricity duty exemption for 15 years, capped at 100% of fixed capital investment.
About this subsidy
Under the Industrial and Business Development Policy 2022, all eligible new units and expansion cases in Punjab are exempt from electricity duty for 15 years. The relief is capped at whichever is lower of 100% of Fixed Capital Investment, or 100% exemption on the power consumption corresponding to the electric load (KW) required for the installed capacity recorded in the approved DPR. The clock starts from the date of release of the power connection for a new unit, and from the date of commercial production after expansion for an expansion case. Because the load ceiling is tied to the approved DPR, the DPR's stated capacity effectively sets how much consumption qualifies.
Eligibility
See if you're eligible
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…
Learn moreBenefits & Funding
What You Get
100% exemption from electricity duty for 15 years, limited to the lower of 100% of Fixed Capital Investment or 100% exemption on the power consumption corresponding to the electric load (KW) required for the installed capacity recorded in the approved DPR. It runs from the date the power connection is released for new units, and from the date of commercial production after expansion for expansion cases.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Register unit
Register the unit on the Invest Punjab Business First portal.
You - 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 long does the exemption last?
15 years.
What is the ceiling?
The lower of 100% of Fixed Capital Investment, or 100% exemption on power consumption corresponding to the electric load required for the DPR-approved installed capacity.
When does the period start?
From the date of release of the power connection for new units, and from the date of commercial production after expansion for expansion cases.
Do expansions qualify?
Yes — the clause covers all eligible new units and expansion cases.
Sources
Data on this page is compiled from official program and provider references.
