Punjab Variable Power Tariff Scheme
By Department of Industries & Commerce, Government of Punjab
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Quick Answer
This scheme provides eligible manufacturing and IT & ITES industries in Punjab with a subsidized variable power tariff of ₹5.50 per KVAH for five years.
About this subsidy
The Freezing of Power Tariff - Variable Tariff scheme is an initiative by the Government of Punjab under its Industrial Policy 2022. Designed to bolster industrial growth and reduce operational costs for businesses, this scheme offers a significant incentive for manufacturing and IT & ITES industries operating within the state. By providing power at a fixed variable tariff, the government aims to create a more competitive and supportive environment for industrial units, thereby encouraging investment, job creation, and economic development in Punjab. This measure is crucial for industries facing rising input costs, ensuring they can maintain their operational efficiency and focus on expansion within the state.
The scheme specifically targets a broad spectrum of industries, including all manufacturing units and IT & ITES businesses located in approved industrial parks. It also extends its benefits to large-scale recreational facilities like amusement and adventure parks, recognizing their contribution to tourism and local economies. The long-term nature of this tariff benefit, spanning five years with a moderate annual increase, provides predictability and stability for businesses in their financial planning, making Punjab an attractive destination for industrial investment and 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
The primary benefit is a significantly reduced power tariff, set at ₹5.50 per KVAH for a period of five years. This variable tariff helps businesses manage their operational costs more effectively, offering predictability in energy expenditure. The tariff includes an annual increase of 3%, balancing stability for businesses with evolving economic conditions. This direct financial advantage translates into substantial savings, enhancing the competitiveness and profitability of eligible industries in Punjab. It is a direct cost subsidy that improves the bottom line for industrial operations.
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the variable power tariff are typically reviewed by a committee or designated authority within the Government of Punjab or its industrial development agencies. The assessment focuses on verifying the applicant's compliance with the eligibility criteria outlined in the Industrial Policy 2022, including industry classification, location, and operational status. Once eligibility is confirmed, the benefit is processed and applied to the industry's power connection.
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.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the Freezing of Power Tariff - Variable Tariff scheme?
This scheme, under Punjab's Industrial Policy 2022, provides eligible industries with power at a special variable tariff of ₹5.50 per KVAH for five years, aiming to reduce operational costs and promote industrial growth.
Which industries are eligible for this power tariff scheme?
All manufacturing industries in Punjab, IT & ITES industries in Approved Industrial Parks, and amusement/adventure parks developed on a minimum area of 50 acres in Punjab are eligible.
What is the tariff rate and for how long is it applicable?
The power is provided at a variable tariff of ₹5.50 per KVAH for five years. This tariff is subject to an annual increase of 3%.
How does the scheme benefit businesses?
The scheme offers substantial cost savings on electricity consumption, providing a predictable and stable energy cost structure for five years. This helps businesses improve profitability and competitiveness.
Is there an application deadline for this scheme?
No specific deadline is mentioned; the scheme is part of the ongoing Industrial Policy 2022 and applications are likely accepted on a rolling basis as long as the policy is active.
Who is the authority providing this incentive?
The incentive is provided by the Government of Punjab as part of its Industrial Policy 2022.
Sources
Data on this page is compiled from official program and provider references.
