Haryana Electricity Duty Exemption 2020: Complete Business Guide

Are high electricity costs cutting into your business profits? If you’re operating in Haryana, here’s some good news. Under the Haryana Enterprises and Employment Policy (HEEP) 2020, businesses can take advantage of the Electricity Duty Exemption scheme, a powerful incentive designed to lower operational expenses and make enterprises more competitive. Whether you’re launching a new venture or expanding an existing one, this benefit can help you save big on energy costs.

What is the Electricity Duty Exemption?

It’s a government waiver of electricity duty (tax on energy use) under HEEP 2020. The goal is simple—reduce the cost of doing business in Haryana and encourage industrial growth across different sectors.

Who Can Benefit?

MSMEs (Micro, Small, Medium Enterprises)
Large & Mega Enterprises
Start-ups and Import Substitution Units
Thrust Sector & Essential Sector Enterprises
Service Sector Enterprises
Industries undergoing expansion/diversification (with a separate power connection)

How Much Can You Save?

The exemption ranges from 75% to 100% for 5 to 20 years, depending on:

Type of enterprise (MSME, Large, Mega, etc.)
Location of the unit within Haryana’s categorized blocks:
- ‘A’ (Developed)
- ‘B’ (Intermediate)
- ‘C’ (Backward)
- ‘D’ (Most Backward)

Example:

An MSME in a ‘D’ category block → 100% exemption for 10 years.
A Thrust Sector unit in a ‘D’ block → 100% exemption for 20 years.

Key Eligibility Conditions

Units must have started commercial production on or after January 1, 2021.
Must possess:
- IEM/Udyam Registration Certificate (URC)
- Haryana Udhyam Memorandum (HUM)
Exemption is available only on production load (not light load).
Unit should not fall under the restrictive industries list of the State Government.

Frequently Asked Questions (FAQs)

Q1: What is the Haryana Electricity Duty Exemption?

It’s a waiver on electricity duty (tax on energy use) offered under HEEP 2020 to reduce costs and boost industrial competitiveness.

Q2: Who can apply for this exemption?

Eligible units include new and expanding MSMEs, Large & Mega Projects, Start-ups, and enterprises in Thrust, Import Substitution, and Essential Sectors.

Q3: How much can I save?

Businesses can save 75% to 100% on electricity duty for 5–20 years, depending on enterprise size and location.

Q4: What are the main eligibility requirements?

The unit must have started production after Jan 1, 2021, have URC & HUM, and should not fall in the restricted industries list.

Q5: Can existing units benefit from HEEP 2020?

Yes! Both new and existing businesses that are expanding or diversifying can claim electricity duty exemptions if they meet eligibility criteria.