Ashirvad Consultancy

Ashirvad

Consultancy

Government Subsidy

100% Electricity Duty Exemption for New Units

Power is a major running cost for any factory. Under the Viksit Gujarat Industrial Policy 2026, eligible new manufacturing units receive 100% exemption from electricity duty under the Gujarat Electricity Duty Act 1958 — a direct, recurring reduction in your monthly energy bill.

100% exempt
Benefit
2026 confirmed
Policy
Electricity duty
On
Recurring
Type

Indicative figures only

Rates, loan amounts, subsidy percentages and eligibility shown here are indicative. Actual figures depend on your credit profile, lender policies, project details and current scheme availability. Final confirmation is provided by our team over phone, WhatsApp or email — at no cost.

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100% Electricity Duty Exemption for New Units

Your electricity bill includes a state electricity duty levied on consumption. Under Gujarat's industrial incentives, an eligible new industrial unit can be exempted from this duty for a period — commonly up to five years from the date of commencing production — directly lowering the effective cost of every unit of power you consume.

For energy-intensive industries — ceramics, chemicals, engineering, textiles with processing — electricity duty exemption is a genuinely material saving that recurs every month for the full exemption period. Unlike one-time subsidies, it improves your operating margin continuously while it lasts.

The exemption must be applied for and sanctioned, and the benefit reflected by the discom in your billing. Getting the application and the supporting documentation right at the start ensures the exemption actually shows up on your bills rather than getting tangled in process. We handle the filing and the follow-up with the authorities.

Electricity duty exemption is one component of the wider incentive package for a new Gujarat unit. We combine it with capital subsidy, interest subsidy and SGST reimbursement so your total benefit — upfront and recurring — is maximised across the life of the project.

Key benefits

  • Exemption from state electricity duty
  • Up to 5 years of recurring savings
  • Especially valuable for energy-intensive units
  • Improves operating margin every month
  • Stacks with capital, interest & SGST benefits

Who is eligible

  • New industrial unit in Gujarat
  • Commencement of production within scheme window
  • Udyam / industrial registration
  • Eligible activity under the policy

Documents required

  • 📄Industrial / Udyam registration
  • 📄Electricity connection & consumer details
  • 📄Commercial production proof
  • 📄Project & investment documentation

How it works

  1. 1
    Eligibility mapping

    We map your project against every applicable Gujarat and central scheme to identify exactly what you can claim.

  2. 2
    Application & documentation

    We prepare and file the subsidy application with the correct authority — iNDEXTb, DIC, or the financing bank.

  3. 3
    Follow-up & sanction

    We track the file through scrutiny and inspection until your subsidy is sanctioned.

  4. 4
    Disbursement & claims

    We manage annual / periodic claims so you keep receiving the benefit for its full eligible period.

FAQ

Frequently asked questions

How long does the electricity duty exemption last?+

Commonly up to 5 years from commencement of production for eligible new units, as per the prevailing Gujarat policy.

Which industries benefit most?+

Energy-intensive sectors — ceramics, chemicals, engineering and textile processing — see the largest savings because the exemption applies to high monthly consumption.

How is the exemption reflected?+

Once sanctioned, the discom reflects the duty exemption in your electricity billing. We handle the application and follow-up so it is applied correctly.

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