State incentivesState scheme, PunjabRelevant to manufacturing

Capital subsidy, tax and duty relief for new and expanding units in Punjab

Punjab Industrial and Business Development Policy 2026

01 · What it is

This is the policy on the Invest Punjab site, which replaces the 2022 policy for new applications. It comes into force from its notification, and the text we read states no end date. The Detailed Schemes and Operational Guidelines 2026 followed, after the Council of Ministers approved them on 7 March 2026. The figures below are from the policy document.

02 · Who should check it

New units and existing manufacturing units that expand or modernise in Punjab. In services, new units only

03 · What it can support

Capital subsidy of up to 20 per cent of eligible fixed capital investment, capped at ₹10 crore, paid in yearly instalments over the 10 to 15 years you choose
100 per cent exemption or reimbursement of stamp duty on land and buildings for the unit
100 per cent exemption from electricity duty for the chosen period
Reimbursement of 75 per cent of net SGST, within the yearly limit
Freight subsidy for exporters of 1 per cent of the FOB value, up to ₹30 lakh a year for five years
All incentives together are capped at 100 per cent of eligible fixed capital investment for MSMEs, and 125 per cent in border districts, Kandi areas and priority sectors, with a limit of ₹500 crore

04 · What may be required

Udyam registration for an MSME, and registration with the Department of Industries and Commerce
An MSME must register under the ZED scheme and reach at least the Bronze level before its incentive application is approved, to get any incentive after production starts
Commercial production within five years of the Common Application Form being accepted
Not an item on the policy's negative list

05 · Documents commonly requested

Tick what you already have. 0 of 4 ready.

06 · Application route

Online through the Department of Industries and Commerce's portal, with the General Manager of your District Industries Centre. Invest Punjab also links the state's Fast Track Punjab portal.