PUNJAB INDUSTRIAL AND BUSINESS DEVELOPMENT POLICY, 2026

PUNJAB GOVERNMENT SCHEME

Dear Businessman/Investors,

In Series of KIP: Business and Subsidy Update, today we are going to share with you benefit of “PUNJAB INDUSTRIAL AND BUSINESS DEVELOPMENT POLICY, 2026”

Objectives

The objective of this scheme is to accelerate industrial growth and job creation, to develop world class infrastructure and bring anchor units, to provide quality and affordable power to the Industry, to accelerate growth of MSMEs, To focus on startup and entrepreneurship and to facilitate availability of skilled manpower for the industry.

Quantum of Assistance

EXEMPTION ELECTRICITY DUTY

All eligible new units and existing units undertaking expansion shall be granted 100% exemption from electricity duty for the eligibility period. The Electricity Duty Exemption Incentive shall be subject to an annual ceiling.

Other Conditions

• Electricity duty exemption shall be applicable from the Date of Commercial Production (DoCP) in the case of New Units and expansion units.

• The exemption shall apply only to electricity duty. Any other charges such as Infrastructure Development Fee (IDF), Social Security Fund, or any other levies, fees, duties, or cess shall not be exempted.

• The first year for annual sanction or exemption shall be the financial year in which the Date of Commercial Production (DoCP) occurs. For the first and last financial year of the eligibility period, the exemption shall be allowed on a pro-rata basis, subject to the combined annual ceiling applicable for these two financial years.

Eligible Entities

In this policy, assistance can be avail by an entity/organization such as:

Private Sector Companies
Partnership Firms
Proprietorship Firms
LLP etc.

Time of Applicability of Incentives

The unit can apply for the subsidy within twelve months of closing of financial year for which incentive is being claimed.

Eligibility

• Registration Requirement

The unit must be registered with the Department of Industries online.

• Udyam Registration

The MSME should have obtained Udyam Registration.

• IEM Filing

The Large units should have filed IEM with DPIIT, Government of India.

• Negative List Condition

The Unit shall not be manufacturing item placed in the negative list as notified under the Policy and amended from time to time.

• PAN & Income Tax Compliance

All the entrepreneurs should have Permanent Account Number (PAN) and should regularly file the Income Tax Returns.

• Production Status

The unit should be in regular production at the time of disbursement of incentive except those incentives which are in pre-production stage such as Stamp Duty.

• Lease Requirement

All eligible Units set up on rented premises should furnish a registered lease deed for a period equal to more than the period of incentives.

• ZED Certification

All eligible units should have Bronze Level ZED Certificate to avail any post production incentive such as capital subsidy and others.

Applicability

The policy will be applicable for 5 years from 08.03.2026 and can be extended further by the State. The policy may be amended and modified in the course of implementation.

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KIP Financial Consultancy Ltd.

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