Odisha Electricity Duty Exemption — 20-Year Waiver for Captive Renewable Plants — Frequently Asked Questions

It gives your unit a 100% exemption from Electricity Duty for 20 years. The relief applies to the renewable energy your captive plant produces and that you consume for commercial operations in Odisha, so instead of paying the duty each cycle you pay nothing on that consumption for the full exemption period.

There is no fixed rupee figure attached to the scheme — the value varies from unit to unit, because it depends on how much electricity duty your operation would otherwise pay on the renewable power you consume. The bigger your captive renewable consumption, the larger the saving, and it repeats every year for 20 years.

Any industrial unit in Odisha in a Thrust, Priority or other industrial sector covered by the Industrial Policy Resolution 2022 can apply, whether it is already operating or newly established. The one firm condition is that the unit must set up a captive generating plant based on renewable energy, and that plant must be located within Odisha.

Yes. The eligibility rules require the captive generating plant to be situated within the state of Odisha. A renewable plant owned by the unit but located outside Odisha does not meet the condition.

The exemption is valid for 20 years. The 20-year period begins on the date the unit starts consuming renewable energy for commercial operations in the state, so it is tied to when generation actually goes live rather than to the date the application is filed.

No. This is a standing incentive under the state's industrial policy rather than a time-bound scheme, and it is offered on a rolling, always-open basis. Units that meet the conditions can claim it whenever they become eligible.

No equity is involved. The scheme is a subsidy in the form of a duty exemption, so it is completely non-dilutive: your ownership of the business stays exactly as it is, and the benefit reaches you as a reduced statutory charge rather than as shares issued to the state.

The procedure follows the general application process laid down in the Industrial Policy Resolution 2022, and the paperwork is expected to cover the details of your industrial unit, proof that the renewable energy captive generating plant has been established, the operational clearances for it, and documentation of the date your commercial operations started consuming renewable energy.

The exemption is claimed through the standard application route defined in the Industrial Policy Resolution 2022 Odisha. In practice that means filing a formal application with the Department of Industries, Government of Odisha, or the designated nodal agency, and the Invest Odisha portal at https://investodisha.gov.in/goswift/ is the online entry point. Units are advised to study the full policy document for the exact forms and submission channels, and to engage the state authorities early so the claim is processed without delay.

The policy applies broadly — units in Thrust, Priority and all other industrial sectors are covered. It is not restricted to a single sector, so a wide range of manufacturing and industrial operations in Odisha can structure a captive renewable project around this exemption.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Odisha Electricity Duty Exemption — 20-Year Waiver for Captive Renewable Plants, though having it can strengthen your application and unlock other benefits.

Odisha Electricity Duty Exemption — 20-Year Waiver for Captive Renewable Plants is offered by Industries Department, Government of Odisha, a government body. It is provided as non-dilutive funding.

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