Punjab MSME Electricity Duty Waiver
By Department of Industries & Commerce, Government of Punjab
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Quick Answer
100% electricity duty exemption for 7 years for new and expanding Punjab MSMEs, limited by fixed capital investment or approved DPR load, whichever is lower.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Punjab
- Registrations needed
- Udyam registration
About this subsidy
Clause 12.8 B(7) of Punjab's Industrial and Business Development Policy 2022 exempts MSME units from electricity duty entirely for seven years. Two limits apply and the lower one binds: the cumulative exemption may not exceed 100% of fixed capital investment, and it covers only the power consumption corresponding to the electric load (KW) required for the installed capacity recorded in the approved DPR. For a new unit the clock starts from the date the power connection is released; for an expansion it starts from the date of commercial production after expansion.
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
No electricity duty at all for seven years on the power a unit draws for its sanctioned load. The exemption is bounded twice over — cumulatively at 100% of fixed capital investment, and by the electric load (KW) required for the installed capacity in the approved DPR — with whichever bound is lower applying, so consumption above the DPR load is not covered.
- 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
When does the 7-year period start?
From the date of release of the power connection for a new unit, and from the date of commercial production after expansion for expansion cases.
Is all my consumption exempt?
Only the consumption corresponding to the electric load (KW) required for the installed capacity as recorded in the approved DPR, and only up to 100% of FCI — whichever is lower.
Is there a rupee cap?
No rupee figure is stated; the limits are 100% of fixed capital investment and the DPR-approved load.
Sources
Data on this page is compiled from official program and provider references.
