Subsidy
Punjab Industrial Policy - MSME Fiscal Incentives
Punjab Industrial & Business Development Policy 2022 provides comprehensive fiscal incentives to MSMEs. With 3.5 lakh existing MSME units, Punjab offers 100% SGST reimbursement for 7 years, electricity duty exemption, stamp duty waiver, and CGTMSE fee reimbursement. Aims to strengthen Punjabs position as industrial hub.
Quick Info
Department:
Department of Industries & Commerce, Government of Punjab
Amount Range:
₹500,000 - ₹50,000,000
Processing:
75 days
Benefits
✅ SGST REIMBURSEMENT:
• 100% reimbursement for 7 years
• From date of commercial production
• Cap: 100% of Fixed Capital Investment (FCI)
• Significant tax benefit
✅ STAMP DUTY EXEMPTION/REIMBURSEMENT:
• 100% exemption or reimbursement
• For purchase or lease of land and building
• Reduces land acquisition costs
✅ CGTMSE FEE REIMBURSEMENT:
• 100% of guarantee fee reimbursed
• For Micro and Small Enterprises
• Maximum: ₹2 Lakh per annum
• For 5 years from commercial production
• Total potential: ₹10 Lakh
✅ ELECTRICITY DUTY EXEMPTION:
• 100% exemption
• For 7 years
• Reduces operational costs
✅ CAPITAL SUBSIDY:
• Up to 50% of Fixed Capital Investment
• For manufacturing businesses
• Substantial upfront support
✅ INTEREST SUBSIDY:
• Additional support under CLCSS
• Up to 5% for 5 years
• On term loans
• Reduces financing burden
✅ LAND CONCESSION:
• Concessionary rates for industrial land
• Priority allocation
• Plug-and-play infrastructure
✅ EXPANSION BENEFITS:
• Same benefits for expansion projects
• Minimum 25% additional investment required
• Technology upgradation support
✅ GREEN ENERGY SUPPORT:
• Subsidy for solar panel installation
• Green energy incentives
• Environmental sustainability focus
✅ SINGLE WINDOW CLEARANCE:
• Punjab Bureau of Investment Promotion
• Simplified registration and approvals
• Fast-track clearances
NOTE: Policy designed to leverage Punjabs strong MSME base of 3.5 lakh units and create investment-friendly environment
• 100% reimbursement for 7 years
• From date of commercial production
• Cap: 100% of Fixed Capital Investment (FCI)
• Significant tax benefit
✅ STAMP DUTY EXEMPTION/REIMBURSEMENT:
• 100% exemption or reimbursement
• For purchase or lease of land and building
• Reduces land acquisition costs
✅ CGTMSE FEE REIMBURSEMENT:
• 100% of guarantee fee reimbursed
• For Micro and Small Enterprises
• Maximum: ₹2 Lakh per annum
• For 5 years from commercial production
• Total potential: ₹10 Lakh
✅ ELECTRICITY DUTY EXEMPTION:
• 100% exemption
• For 7 years
• Reduces operational costs
✅ CAPITAL SUBSIDY:
• Up to 50% of Fixed Capital Investment
• For manufacturing businesses
• Substantial upfront support
✅ INTEREST SUBSIDY:
• Additional support under CLCSS
• Up to 5% for 5 years
• On term loans
• Reduces financing burden
✅ LAND CONCESSION:
• Concessionary rates for industrial land
• Priority allocation
• Plug-and-play infrastructure
✅ EXPANSION BENEFITS:
• Same benefits for expansion projects
• Minimum 25% additional investment required
• Technology upgradation support
✅ GREEN ENERGY SUPPORT:
• Subsidy for solar panel installation
• Green energy incentives
• Environmental sustainability focus
✅ SINGLE WINDOW CLEARANCE:
• Punjab Bureau of Investment Promotion
• Simplified registration and approvals
• Fast-track clearances
NOTE: Policy designed to leverage Punjabs strong MSME base of 3.5 lakh units and create investment-friendly environment
Eligibility Criteria
• Must be Micro, Small, or Medium Enterprise as per MSMED Act, 2006
- Valid Udyam Registration Certificate
- All manufacturing enterprises eligible
- Service enterprises limited to specified sectors:
- IT and ITES
- Life Sciences
- Skill Development Centres, Incubation Centres, Accelerators
- Healthcare
- Tourism & Hospitality
- Media and Entertainment
- Logistics
- Maintenance, Repair and Overhaul (MRO) in Aviation & Defence
- Industrial R&D labs, Industrial Testing Labs
- Engineering and Design Services
- Equipment Rental and Leasing
- Equipment Maintenance and Repair
- Environment services
- Common Utility services
- Printing presses (offset, flexi/vinyl, flexo)
- Design Studios (investment > ₹50 lakh on machinery)
- Auto servicing/repairing (investment > ₹50 lakh)
- New units OR expansion in existing units
- For expansion: Minimum 25% of original investment
- Must commence commercial production
- Located in Punjab state
- Compliance with environmental and labor regulations
- Valid Udyam Registration Certificate
- All manufacturing enterprises eligible
- Service enterprises limited to specified sectors:
- IT and ITES
- Life Sciences
- Skill Development Centres, Incubation Centres, Accelerators
- Healthcare
- Tourism & Hospitality
- Media and Entertainment
- Logistics
- Maintenance, Repair and Overhaul (MRO) in Aviation & Defence
- Industrial R&D labs, Industrial Testing Labs
- Engineering and Design Services
- Equipment Rental and Leasing
- Equipment Maintenance and Repair
- Environment services
- Common Utility services
- Printing presses (offset, flexi/vinyl, flexo)
- Design Studios (investment > ₹50 lakh on machinery)
- Auto servicing/repairing (investment > ₹50 lakh)
- New units OR expansion in existing units
- For expansion: Minimum 25% of original investment
- Must commence commercial production
- Located in Punjab state
- Compliance with environmental and labor regulations
Required Documents
Udyam Registration Certificate (Mandatory)
Aadhar Card of proprietor/partners/directors
PAN Card of enterprise
Project report with FCI details
Land purchase/lease documents
Building ownership/lease proof
Manufacturing license/approval
Pollution clearance certificate
Fire safety certificate
Factory plan approval
Machinery and equipment list with invoices
Bank account details
Term loan sanction letter (if applicable)
CGTMSE certificate (for fee reimbursement)
Proof of commercial production commencement
SGST registration certificate
Partnership deed/MOA-AOA/Company registration
Expansion details (if applicable - showing 25% increase)
Employment details
Electricity connection documents
Environmental compliance certificate
Declaration on company letterhead
Apply for This Scheme
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What happens next? After you submit an inquiry, our team will:
- Contact you within 24 hours
- Assess your eligibility for this scheme
- Guide you through the documentation process
- Handle the application submission with the government
Scheme Details
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