§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

  1. New units, existing units and existing units undertaking substantial expansion.
  2. Only one new DG set of 10 kW to 2000 kW; incentive can be availed only once under the policy.
  3. 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.
  4. Existing units not undertaking substantial expansion that availed this incentive earlier are not eligible.
  5. 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

  1. Paid after verification that the DG set is installed.
  2. Paid only through a bank (or the financing agency) even if no loan was taken.
  3. 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

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. 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

  1. Compendium of Schemes for MSMEs - UT of J&K (Industries & Commerce Dept with SIDBI PMU, Nov 2022), hosted on J&K Single Window
  2. 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.