Punjab Micro & Small Capital Subsidy
By Department of Industries & Commerce, Government of Punjab
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Quick Answer
Up to INR 50 lakh capital subsidy for new micro and small manufacturing units in Punjab — 50% of fixed capital investment in priority districts, 20% elsewhere.
- Funding amount
- Up to ₹50L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Punjab
- Registrations needed
- Udyam registration
About this subsidy
Clause 12.8 A(2) of Punjab's Industrial and Business Development Policy 2022 offers a capital subsidy to new micro and small manufacturing enterprises in thrust sectors, exporting units, and micro and small service enterprises engaged in R&D activities. In border districts, Kandi areas, Aspirational Districts and the districts of Bathinda, Faridkot, Mansa, Muktsar, Sangrur, Malerkotla and Barnala the subsidy is 50% of fixed capital investment subject to INR 50 lakh per unit. Everywhere else in Punjab it is 20% of FCI, also subject to INR 50 lakh. Any capital subsidy already availed under a Government of India or other state scheme is excluded from this incentive — you cannot stack the same rupee twice.
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…
Learn moreBenefits & Funding
- Amount
- Up to ₹50L
What You Get
A one-time capital subsidy against fixed capital investment, ceiling INR 50 lakh per unit either way. The rate is what changes with geography: 50% of FCI in border districts, Kandi areas, Aspirational Districts and Bathinda, Faridkot, Mansa, Muktsar, Sangrur, Malerkotla and Barnala; 20% of FCI in the rest of Punjab. Subsidy already received under a GoI or state scheme is netted out of the claim.
- 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
Submit on the official portal
Use the official application link and verify all details before final submission.
- 3
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
Which districts get the higher 50% rate?
Border districts, Kandi areas, Aspirational Districts, and Bathinda, Faridkot, Mansa, Muktsar, Sangrur, Malerkotla and Barnala.
What is the ceiling?
INR 50 lakh per unit, at both the 50% and 20% rates.
Can service enterprises apply?
Micro and small service enterprises engaged in providing research and development activities are covered, alongside thrust-sector manufacturers and exporting units.
Can I also claim a central capital subsidy?
Capital subsidy availed under any GoI or State scheme is excluded from this incentive.
Sources
Data on this page is compiled from official program and provider references.
