§1Who it is for
- New manufacturing units and units with substantial expansion
Useful if
Power-intensive manufacturing (food processing, bamboo, mineral-based).
Do not spend time on it if
Service units and low-power workshops.
§2Eligibility
- Power: MSME manufacturing units with 11/33 kV connection from Dept of Power; large units with 132 kV+ connection
New units or substantial expansion
- Regular and timely payment of power bills
- SGST/VAT: eligible new units; VAT exemption also for substantial expansion
§3Benefits
- Power: ₹2.00/unit for 5 years (MSME), max ₹75 lakh/year; ₹1.00/unit for 5 years (large)
- SGST: 100% net SGST for 7 years, cap Micro 250%, Small 200%, Medium & Large 180% of eligible investment
- VAT: 99% exemption for 7 years
§4Norms — pattern of assistance
- Power subsidy capped at 100% of P&M investment
- Given as bill remission; excludes load security, interest, taxes
- Power Dept shares data with Industries Dept quarterly
§5Documents
Not published
The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.
§6How to apply
- 1
Register under the policy; power subsidy is adjusted in bills by Dept of Power
§7Pros and cons
Merits
- Front-ended power subsidy - no waiting for reimbursement
- Micro units SGST cap up to 250% of investment
Demerits
- Only units on Dept of Power HT lines qualify for power subsidy
→Related schemes
Need help with Arunachal power & SGST?
Eligibility check, DPR and application file — ask us on WhatsApp.
Our interestHelp is our paid service. You can also apply for the scheme yourself.
¶Sources
Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.