Electric Duty Exemption

100% Electric Duty Exemption Subsidy

1. Introduction

The Gujarat State Government has introduced several subsidy schemes to promote industrial growth and self-reliance in the state. One of these schemes is the Electric Duty Exemption Subsidy, which offers significant benefits to manufacturing units.
Apart from Electric Duty Subsidy, many subsidies are available for manufacturing unit. Do check out our recent blog on Aatmanirbhar Subsidy Scheme. 
Understanding and taking advantage of this subsidy can result in huge savings on your electric bills and contribute to the growth of your manufacturing unit.

2. What is the Electric Duty Exemption Subsidy?

The Electric Duty Exemption Subsidy is a government initiative aimed at reducing the financial burden of electricity costs for industrial units in Gujarat. Through this subsidy, eligible new & existing manufacturing units are exempted from paying electricity duty on the electric bills for 5 years.

3. Eligibility criteria for industrial Units

  • The subsidy is available for both new and existing manufacturing units that include proprietorship Firms, Partnership Firms, LLP firms, Private Limited & Limited Companies.
  • For Existing enterprises other criteria must be fulfilled such as new machinery investment to be more than 50% of the existing machinery, installation of sub-meter, etc.
  • Eligible units have to apply within 90 days of starting commercial Production to avail the benefit of 5 years.

4.  Example of RN Enterprise

Let’s understand it by taking the example of RN Enterprise.
RN Enterprise has established a new manufacturing unit in Gujarat. The unit has installed new machinery and started commercial Production on 01.04.2024.
  • Power Load – 150 KW
  • Monthly Bill Amount – Rs. 1,00,000 (Approx)
  • Monthly Electric Duty – Rs. 15000 (15%)
RN enterprise applied for Electric Duty Exemption within 90 days from commercial Production i.e 01.04.2024.
After successfully filling online application and uploading the necessary documents on https://ceicedeservice.gujarat.gov.in/#home, RN Enterprise will receive an Electric Duty Exemption Certificate for the period from 01.04.2024 (commercial Production) to 31.03.2029 (5 Years).
RN Enterprise got the benefit of a total of Rs. 9,00,000/- for 5 years.
(15000 duty *12 month *5 year)Govt. Subsidy Scheme

5.  Conclusion and key takeaways

In conclusion, understanding the Electric Duty Exemption Subsidy is crucial for industrial MSME/Large Units looking to optimize their operations and reduce costs. We hope that this guide has clarified any doubts or uncertainties you may have had about the Electric Duty Exemption Subsidy. Stay tuned for more informative content on subsidies and incentives for MSME/Large Units. Still if you have any queries you can ask on 8485966003 or mail me on sdsrajvi@gmail.com.