Punjab Paddy Straw Boiler SGST Refund
By Department of Industries & Commerce, Government of Punjab
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Quick Answer
Existing Punjab industries switching to paddy straw fuel boilers get 100% net SGST reimbursed for 7 years, capped at 75% of the boiler investment.
About this subsidy
Punjab's Industrial and Business Development Policy 2022 rewards existing industries that switch to paddy straw fuel based boilers with reimbursement of 100% net SGST for 7 years, capped at 75% of the total investment made in installing the boiler. The cap is anchored to the boiler investment rather than to overall fixed capital, so the incentive is sized to recover most of the conversion cost rather than to subsidise the whole plant. Units already eligible under the Expansion Category, and those in the negative list, are outside this benefit.
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
Reimbursement of 100% net SGST for 7 years, with a cap of 75% of the total investment for installation of the paddy straw fuel based boiler. The ceiling is tied to the boiler investment, so it is designed to recover the bulk of the conversion cost.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Install boiler
Install a paddy straw fuel based boiler at the existing unit.
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 much is reimbursed?
100% of net SGST for 7 years.
What is the cap?
75% of the total investment for installation of the paddy straw fuel based boiler.
Who is excluded?
Units eligible as Expansion Category cases and units in the negative list.
Does it apply to new units?
The clause is framed for existing industries switching to paddy straw fuel based boilers.
Sources
Data on this page is compiled from official program and provider references.









