Punjab Mandi Fee Exemption 2022
By Department of Industries & Commerce, Government of Punjab
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Quick Answer
Punjab waives mandi fees, RDF and other taxes on the incremental raw material an expanding manufacturing unit buys, up to 100% of its fixed capital investment.
About this subsidy
Clause 12.2.2(d) of Punjab's Industrial and Business Development Policy 2022 exempts an expanding manufacturing unit from mandi fees, Rural Development Fund (RDF) and other such taxes on the incremental quantity of raw material it purchases. The baseline is the higher of the unit's average raw-material purchase quantity over the preceding three years or its average over the preceding 12 months from the date the expansion of the eligible product/activity starts; the concerned District Mandi Officer certifies it. Only purchases above that baseline are exempt, and the cumulative benefit is capped at 100% of the fixed capital investment in the expansion. The policy states the FCI percentage but no rupee ceiling.
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
Mandi fees, RDF and other such taxes are waived on the extra raw material the unit buys after expanding. The comparison baseline is the higher of the preceding three years' average purchase quantity or the preceding 12 months' average from the start of expansion, certified by the District Mandi Officer, and the benefit runs until it equals 100% of the fixed capital investment.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
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 is the incremental quantity worked out?
Against the higher of the average raw-material purchase quantity of the preceding three years or of the preceding 12 months from the date expansion of the eligible product/activity starts.
Who certifies the incremental purchase?
The concerned District Mandi Officer.
Is there a rupee cap?
No rupee figure is stated; the exemption runs up to 100% of fixed capital investment.
Sources
Data on this page is compiled from official program and provider references.
