Punjab Ground Water Charge Relief
By Department of Industries & Commerce, Government of Punjab
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Quick Answer
New Punjab MSMEs that meet half their water needs from surface water get a 25% exemption from ground water charges for 7 years.
About this subsidy
Clause 12.8 C(13)(a) of Punjab's Industrial and Business Development Policy 2022 rewards units that shift away from groundwater. An industry drawing surface water for 50% of its total water requirement gets a 25% exemption from ground water charges for seven years, counted from the date of commercial production. It is aimed at new MSME units, where the water sourcing decision is still open at the design stage — the surface-water share is the qualifying condition, so it needs to be built into the plant's water plan rather than retrofitted.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Go Premium to view.
Subsidy providers
The Department of Industries & Commerce is the Government of Punjab's nodal agency for industrial development and startup ecosystem support. It operates the Startup Punjab initiative through the Invest Punjab portal, coordinating startup registrations, incentive delivery, and…
Learn moreBenefits & Funding
What You Get
A quarter off the ground water extraction charges for seven years from the date of commercial production. The condition is a real operational one: surface water has to cover 50% of the unit's total water requirement, so the incentive works alongside a canal or treated-water supply arrangement rather than on its own.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the qualifying condition?
The industry must use surface water for 50% of its total water requirement.
How much is exempted?
25% of ground water charges.
From when does the 7-year period run?
From the date of commercial production.
Sources
Data on this page is compiled from official program and provider references.
