§1Who it is for
- New units, existing units, and existing units undertaking substantial expansion in J&K
Useful if
Manufacturing units in J&K needing captive backup power.
Do not spend time on it if
Units that already took this subsidy and are not expanding.
§2Eligibility
- New units, existing units and existing units undertaking substantial expansion.
- Only one new DG set of 10 kW to 2000 kW; incentive can be availed only once under the policy.
- Expanding units that already took the subsidy on existing load get it only on the incremental power load; if not availed earlier, on the aggregate load after expansion.
- Existing units not undertaking substantial expansion that availed this incentive earlier are not eligible.
- DG sets of 125 KVA and above must have retrofitted emission control devices as per NGT conditions.
§3Benefits
- 100% subsidy on purchase and installation of one new DG set, max Rs 40 lakh in Zone A and Rs 45 lakh in Zone B.
§4Norms — pattern of assistance
- Paid after verification that the DG set is installed.
- Paid only through a bank (or the financing agency) even if no loan was taken.
- Sanction: up to Rs 5 lakh by General Manager DIC; Rs 5-50 lakh by Divisional Level Committee; above Rs 50 lakh by UT Level Committee; disbursal within 15 days of sanction; 10% of claims audited by DIC before disbursement.
§5Documents
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
Apply on J&K Single Window under 'My Incentive' (Department of Industries & Commerce).
§7Pros and cons
Merits
- Covers the full cost of a backup DG set up to Rs 40-45 lakh - useful where grid supply is unreliable (compendium).
Demerits
- One-time only; emission-control retrofit is mandatory for sets of 125 KVA and above, adding cost.
→Related schemes
Need help with J&K DG set subsidy?
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
- Compendium of Schemes for MSMEs - UT of J&K (Industries & Commerce Dept with SIDBI PMU, Nov 2022), hosted on J&K Single Window
- J&K Single Window - 'Jammu and Kashmir: Policies and Schemes' brochure (2022)
Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.
