Department of Industries, Government of Himachal Pradesh (Startup Himachal)
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HP AYUSH Electricity Duty Concession — 3% Duty for 5 Years

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Himachal Pradesh gives AYUSH enterprises a concessional 3% electricity duty for five years under its Industrial Investment Policy 2019.

Funding amount
Varies by program
Funding type
Subsidy
Provider
Department of Industries, Government of Himachal Pradesh (Startup Himachal) (Government)
Application deadline
Rolling
Eligible stage
Any stage
Location
Open to startups registered in India

Overview

Himachal Pradesh extends this incentive through the Department of Industries, which also runs the state's Startup Himachal push. The terms are drawn from two policy documents — the Himachal Pradesh Industrial Investment Policy – 2019 and the AYUSH Policy 2019 — and the benefit arrives as a lighter load on the power bill rather than as a cheque. In short, it is a state subsidy built for enterprises working in traditional Indian medicine and wellness.

AYUSH spans five systems: Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy. Businesses in these streams often run manufacturing units, treatment facilities, wellness centres or research operations, and all of them draw power continuously. Duty on electricity therefore shows up again and again in their cost base. Bringing that duty down to a concessional 3% for five years trims the day-to-day running cost of such a unit and sharpens its competitiveness inside the state.

The concession sits inside a larger effort to make Himachal Pradesh a destination for traditional medicine and wellness businesses, with the expected flow-on effects of fresh investment, local entrepreneurship and employment in the state. There is no competitive round to clear and no closing date to race — applications stay open, so an enterprise that fits the policy conditions can claim the concession whenever it is ready.

Highlights

  • Concessional 3% electricity duty for AYUSH enterprises in Himachal Pradesh
  • The benefit holds for 5 years once approved
  • Granted under the HP Industrial Investment Policy – 2019 and AYUSH Policy 2019
  • Rolling window — applications are always open, with no deadline
  • A subsidy, not equity or debt: no stake given up, nothing to repay
  • Applied for through the Department of Industries or a District Industries Centre (DIC)

Who can apply

The qualifying conditions are laid out in the Himachal Pradesh Industrial Investment Policy – 2019, and the first filter is the sector the business belongs to.

  • The applicant has to be an AYUSH enterprise, meaning a business whose activity falls under Ayurveda, Yoga & Naturopathy, Unani, Siddha or Homoeopathy.
  • The enterprise must be operating in Himachal Pradesh, since this is a concession offered by the state government.
  • The business must also satisfy the remaining conditions set out in the Industrial Investment Policy – 2019, read together with the AYUSH Policy 2019.

AYUSH activity generally covers manufacturing AYUSH products, delivering AYUSH healthcare services, running wellness centres, or pursuing research and development in these systems of medicine. Whether a particular registration — Udyam (MSME), a state startup recognition, or something else — is required depends on the detailed policy conditions, so it is worth reading those documents before filing.

HP AYUSH Electricity Duty Concession — 3% Duty for 5 Years is open to startups at any stage. It is open to startups registered anywhere in India.

Eligible stage
Any stage
Location
Open to startups registered in India

Deadline & timing

HP AYUSH Electricity Duty Concession — 3% Duty for 5 Years accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

What the funding covers

The benefit is a concessional rate of 3% on electricity duty, granted to a qualifying AYUSH enterprise for five years. This is not a cash grant and not a repayable loan — the relief shows up as a smaller duty component on the enterprise's electricity bills, so the saving lands automatically every billing cycle without any claim or reimbursement process to run.

  • Duty cut to 3% on electricity, in place of the standard rate, for the life of the concession.
  • A five-year run, giving a long stretch of predictable, lower overheads.
  • Applied directly on the bill, so the enterprise pays less up front instead of paying in full and claiming later.
  • No equity and nothing to repay — as a subsidy, it costs the promoter no stake in the business.

Power is a recurring expense, so a lower duty compounds across the full five years for duty-heavy AYUSH manufacturing lines and wellness facilities alike.

About the provider

HP AYUSH Electricity Duty Concession — 3% Duty for 5 Years is offered by Department of Industries, Government of Himachal Pradesh (Startup Himachal), a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

How to apply

Applications are submitted on the . Confirm the current deadline and document checklist there before you start.

Selection process

No ranking, shortlisting or competition decides this one. The concession is an entitlement under the policy, so applications are processed administratively rather than judged by a selection panel.

  • Read the policy — the enterprise goes through the Industrial Investment Policy – 2019 and the AYUSH Policy 2019 to confirm that it meets the stated conditions.
  • Prepare the paperwork — documents are gathered, usually a certificate of business registration, evidence that the business operates in the AYUSH sector, and any other forms the Department of Industries calls for.
  • File the application — the form and supporting documents are submitted to the designated authority, normally the Department of Industries or a District Industries Centre (DIC) in Himachal Pradesh.
  • Verification — the concerned government department checks the application and the documents attached to it.
  • Approval and roll-out — once verification clears, the concessional rate is applied to the enterprise's electricity bills for the five-year term.

Documents you’ll need

Before you apply to HP AYUSH Electricity Duty Concession — 3% Duty for 5 Years, keep the following documents ready:

  • A pitch deck or short business plan describing the problem, product and traction
  • Company registration documents and PAN
  • Founder identification (PAN / Aadhaar) and brief profiles
  • Recent financial statements or projections
  • Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

Frequently asked questions

How much funding does this programme actually provide?

It is not a fixed sum. The value of the concession depends on how much electricity duty the enterprise would otherwise pay, because the rate is cut to 3% and that reduced rate applies for five years. A unit with larger power consumption saves more than a small one.

Who is eligible for the electricity duty concession?

Enterprises that fall in the AYUSH sector and operate in Himachal Pradesh, provided they meet the conditions set out in the Himachal Pradesh Industrial Investment Policy – 2019. Both the sector test and the policy conditions have to be satisfied.

Which businesses are treated as AYUSH enterprises?

Those working within the traditional Indian systems of medicine covered by AYUSH — Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy. In practice this includes units manufacturing AYUSH products, providers of AYUSH healthcare services, AYUSH wellness centres, and businesses doing research and development in these systems.

What is the last date to apply?

There is none. The programme runs on a rolling basis and the window stays open, so an eligible enterprise can apply at any point rather than waiting for an application cycle.

Is this a grant or a loan?

Neither. It is a subsidy delivered as a reduced duty rate on electricity. Nothing is disbursed to you as cash and nothing has to be repaid — the saving simply appears on your electricity bill.

Does the programme take equity in my business?

No. As a subsidy, it takes no stake and no ownership in the enterprise. The promoter's shareholding stays untouched.

Do I need DPIIT recognition or MSME registration to claim it?

The concession itself is defined by the state's Industrial Investment Policy – 2019 and the AYUSH Policy 2019, and registration as an enterprise in Himachal Pradesh is generally expected. Whether a specific registration such as Udyam (MSME) or a state startup recognition is required depends on the detailed policy conditions, so check those documents before you file.

What documents will I need to submit?

Typically a certificate of business registration, evidence that your operations fall in the AYUSH sector, and any other forms specified by the Department of Industries, Himachal Pradesh. Having the AYUSH proof ready is usually the slowest part, so assemble it early.

Where do I submit the application?

Applications go to the designated authority — normally the Department of Industries or a District Industries Centre (DIC) in Himachal Pradesh. Online services are available on the state's portal at https://emerginghimachal.hp.gov.in/online-services.

Is there a competitive selection round I have to clear?

No. There is no shortlisting, scoring or ranking involved. Qualifying enterprises receive the concessional rate after their application and documents clear verification, which makes this an entitlement rather than a contest.

Who offers HP AYUSH Electricity Duty Concession — 3% Duty for 5 Years?

HP AYUSH Electricity Duty Concession — 3% Duty for 5 Years is offered by Department of Industries, Government of Himachal Pradesh (Startup Himachal), a government body. It is provided as non-dilutive funding.

How do I apply for HP AYUSH Electricity Duty Concession — 3% Duty for 5 Years?

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.

More funding from Department of Industries, Government of Himachal Pradesh (Startup Himachal)

Department of Industries, Government of Himachal Pradesh (Startup Himachal) runs 6 other programs listed on startupfunds — compare them before you decide where to apply.

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