What the Exemption Covers

Under the Gujarat Electricity Duty Act, new manufacturing units are eligible for a full exemption on electricity duty for 5 years from the date of commercial production in normal industrial areas, and up to 10 years for units in SEZs.

The exemption rate depends on your connection type:

• HT (High Tension) connection — 15% of your electricity bill is exempted
• LT (Low Tension) connection — 10% of your electricity bill is exempted
• DG sets up to 125 KVA — fully exempt from electricity duty
• DG sets above 125 KVA — duty rate of 60 paise per unit generated applies

Expansion units also qualify, provided the additional capital investment exceeds 50% of the existing fixed capital investment at the time of expansion.

Who This Applies To

This benefit is available to:

• New manufacturing units setting up for the first time in Gujarat
• Existing units undergoing significant expansion meeting the capital investment threshold

One critical condition most businesses miss: the application must be filed within 90 days of commencement of commercial production(for New manufacturing units) to avail the full 5-year benefit. Filing late means losing those initial months permanently.

Where Things Usually Get Missed

Most units start operations, begin paying electricity bills, and never check whether the exemption applies to them. The planning for this benefit needs to start at the project stage — not after operations begin. By the time someone thinks to check, months of eligible exemption have already lapsed, and in some cases the 90-day application window has closed entirely.

How We Help

We assess your unit’s connection type, DG set capacity, and production start date to determine your eligibility and the correct exemption amount — then handle the complete process:

• Eligibility assessment under the Gujarat Electricity Duty Act based on your connection type and production date
• Documentation preparation and application filing with CEICED within the 90-day window
• Follow-up until the Electricity Duty Exemption Certificate is issued

A Practical Saving

For an HT-connected manufacturing unit, a 15% exemption on monthly electricity bills — sustained over 5 years — adds up to a substantial reduction in operating costs. For a unit paying ₹15 lakh per month in electricity, that is ₹2.25 lakh back every month, or ₹1.35 crore over the 5-year exemption period.

These figures are for illustrative purposes only. Actual savings depend on your connection type, sanctioned load, applicable duty rate, and monthly consumption.

The exemption exists. The only thing required to capture it is knowing it applies and filing before the window closes.