Electric Duty Exemption

Exemption from state electricity duty for eligible new manufacturing units in Gujarat.

Electric Duty Exemption
About Electric Duty Exemption
Government Subsidy

What is Electric Duty Exemption?

Gujarat Industrial Policy provides eligible new manufacturing units with an exemption from Electric Duty (ED) for a specified period. As electricity is a major operating cost for manufacturers, this exemption significantly improves unit economics over the long term.

Who Qualifies?

  • New manufacturing units setting up in Gujarat
  • Units in specified thrust sectors
  • Units in GIDC industrial estates or backward areas
  • Units that have availed the eligibility certificate from Industries Commissionerate

Subsidy Quantum / Benefit

100% exemption from Electric Duty for 5 years (extendable in certain categories). Annual saving depends on power consumption.

How to Apply

1

Apply for Electric Duty Exemption certificate via iPlus portal

2

Submit Udyam certificate, commencement certificate, electricity account details

3

DIC inspection and verification

4

Certificate issued in favour of DISCOM (electricity provider)

5

Benefit reflected in monthly electricity bill

Expected Timeline

Exemption certificate issued within 45–90 days. Benefit applicable from the date of unit commencement.

Frequently Asked Questions

Who qualifies for Electric Duty Exemption in Gujarat?

New manufacturing units in Gujarat, particularly those in thrust sectors, GIDC industrial estates, or backward areas. Units must obtain an eligibility certificate from the Industries Commissionerate before claiming.

For how many years is Electric Duty exempted?

100% exemption for 5 years by default, extendable up to 10 years for units in special categories (thrust sectors, backward areas, women/SC/ST entrepreneurs). Applied through DISCOM in your electricity bill.

How much can a manufacturer save through Electric Duty Exemption?

Electric Duty in Gujarat is typically 15% of the electricity bill. A unit with ₹5 Lakhs/month power bill would save ~₹75,000/month or ₹9 Lakhs/year — for the entire exemption period.

Claim This Subsidy

We assess your eligibility, prepare the application, and follow up until disbursement.

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