Electric Duty Exemption (EDE)
If you are establishing a manufacturing unit or expanding one in Gujarat, you may benefit from the “Electricity Duty Exemption (EDE)” scheme, governed by the Energy & Petrochemicals Department, Government of Gujarat (and related state energy/industrial policy frameworks). The scheme is designed to reduce your power-cost burden by exempting or reducing the electricity duty payable on your industrial power connection for a defined period. Its purpose is to make Gujarat a more competitive destination for manufacturing and energy-intensive industry. The benefit for your business is lower operational cost (via duty waiver/reduction) during initial years of production/expansion, improving viability and cash-flow.
Key Features
- New or expansion manufacturing unit eligible – The scheme covers new manufacturing units and also existing units undergoing significant expansion (subject to conditions) in Gujarat.
- Duty exemption / reduction for a defined period – Typically the exemption applies for 5 years for new units in regular locations; for units in SEZs or special zones, the benefit may extend to 10 years.
- Differential duty reduction depending on load/connection type – For LT (low tension) power connection the duty waiver is about 10% of electricity bill; for HT (high tension) it is about 15%.
- Applies to captive generation/DG/CPP also – For units with captive power plants or diesel generator sets, the duty exemption may apply (for example “60 paisa per unit” duty after exemption) under certain conditions.
- Must apply within stipulated time of commercial production – The application for exemption should typically be submitted within 90 days of commencement of commercial production for new units (as per some commentary) to avail full benefit.
Financial Assistance
Eligibility Criteria
Who Can Apply:
- New industrial units that commence commercial production after obtaining a new electricity connection.
- Existing industries undertaking expansion/diversification, resulting in at least 50% increase in connected load or 25% increase in production capacity.
- Units that have obtained valid approvals from Gujarat Electricity Board / GUVNL / DISCOMs.
- MSMEs, large industries, and enterprises located in GIDC estates or privately developed parks in Gujarat.
Who Cannot Apply:
- Industries that are not engaged in manufacturing or service-related activities.
- Units availing power through open-access from third-party sources (unless specifically permitted).
- Entities defaulting on electricity bills or violating the Gujarat Electricity Duty Act provisions.
- Units already claiming full exemption under other overlapping power policies.
Documents Required
- Copy of Udyam /MSME Registration Certificate or Industrial Entrepreneur Memorandum (IEM).
- Copy of new or enhanced electricity connection sanction letter.
- Proof of commercial production date (Factory License / CA-certificate).
- Undertaking declaring no duplicate subsidy claimed under any other scheme.
- Electricity bills (if renewal / expansion application).
- Project report or note on activity undertaken.
- PAN / GST registration certificate of the unit.
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.
Option 2: Government Application via Industries Commissionerate / DISCOM
- Visit the official MSME Incentive Portal or contact your DISCOM (MGVCL, DGVCL, PGVCL, UGVCL) office.
- Submit the prescribed Electric Duty Exemption application form.
- Attach supporting documents (see above).
- After verification by DISCOM and state nodal agency, the order for exemption is issued.
- Exemption reflected in electricity bills for the approved period.
Option 3: Through District Industries Centre (DIC)
- Approach your local DIC with the required details of your industrial connection.
- DIC validates MSME registration and forwards the application to the appropriate authority.
- Track approval status and exemption activation through DIC or DISCOM helpdesk.
Related Schemes
Frequently asked questions
Is this scheme only for MSMEs?
The scheme is open to manufacturing units more broadly; however many MSME-eligible units will qualify and derive benefit. It is not restricted solely to MSMEs unless specified.
Will the duty-exemption reflect automatically in my electricity bills?
Once your application is approved and sanction issued, the electricity duty component in your bills should reflect the exemption benefit .
What happens if I stop production before 5 years?
If you cease production or fail to comply with conditions, the sanctioning authority may recover the benefit, or the exemption may be forfeited.
Where do I apply and find forms?
Forms and the checklist are available in the policy document (e.g., under “Claim for Electricity Duty Exemption”) on the website of the Industries Commissionerate, Gujarat. Gujarat Information Commission
Are there special rates for different sectors like electronics, renewable energy?
Yes, in specific sector-policies (for example the Gujarat Electronics Policy 2022‑2028) 100% electricity duty exemption for 5 years is offered.