Viksit Gujarat Industrial Policy 2026 · Power connection
Power connection charges: 35% back, up to ₹5 lakh
If your MSME is outside a GIDC estate or an approved industrial park, Gujarat refunds 35% of what you pay the DISCOM for an LT or HT service line — for a new connection, extra load or shifting the line — up to ₹5 lakh over the scheme period. The claim must reach the District Industries Centre within six months of payment.
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Two examples: ₹12 lakh paid to the DISCOM gives a ₹4.2 lakh refund; ₹18 lakh would give ₹6.3 lakh at 35%, so the ₹5 lakh ceiling applies.
- 35%of the service-line charges paid to the DISCOM
- ₹5 lakhceiling over the scheme period
- 6 monthsfrom payment to apply
What is the power connection charges refund?
It is an assistance in the Viksit Gujarat Industrial Policy 2026 scheme for MSMEs (para 16). A manufacturing MSME located outside GIDC estates and approved industrial parks gets back 35% of the charges it pays the DISCOM for an LT or HT service line — for a new connection, additional load or shifting of the connection or line — up to ₹5 lakh during the scheme period. It must apply within six months of paying the charges.
- Legal basis
- Scheme for assistance to MSMEs, para 16 (GR IMD/WRT/e-file/9/2026/2630/CH, 25 September 2026).
- Who qualifies
- A manufacturing MSME (production, processing or job work) located outside GIDC estates and approved industrial parks.
- What is covered
- Charges paid to the DISCOM for the LT or HT service line: new connection, additional load, or shifting of the connection or service line.
- How much
- 35% of the charges paid, up to ₹5 lakh in total during the operative period.
- When it was paid
- During the operative period: 1 June 2026 to 31 May 2031.
- Deadline
- Apply within six months from the date you paid the DISCOM.
- Who sanctions it
- The General Manager of the District Industries Centre, for micro, small and medium units alike.
Where it applies most. Units on their own or rented industrial land, away from GIDC estates — and every DISCOM area in Gujarat.
- UGVCL — north Gujarat
- MGVCL — central Gujarat
- DGVCL — south Gujarat
- PGVCL — Saurashtra and Kutch
- Torrent Power — Ahmedabad, Gandhinagar, Surat
New in 2026 · what VGIP 2026 sets
- New scheme period: charges paid from 1 June 2026 to 31 May 2031 qualify under VGIP 2026.
- 35% up to ₹5 lakh for the whole period — one ceiling, shared by every connection, load addition or shifting you claim.
- Six months to apply, counted from the date you paid the DISCOM, not from the date the connection was released.
- One sanctioning office: the District Industries Centre handles it for medium units too.
Who gets the refund, and on what
Two tests decide it: where the unit is and what you paid for. The unit must be a manufacturing MSME outside a GIDC estate or an approved industrial park, and the payment must be the DISCOM’s charge for the LT or HT service line — for a new connection, extra load or shifting.
Covered
- A new LT or HT connection for a manufacturing MSME on non-GIDC land
- Additional load on an existing connection
- Shifting of the connection or the service line
- Charges paid to UGVCL, MGVCL, DGVCL, PGVCL or Torrent Power
Not covered
- Units inside a GIDC estate or an approved industrial park
- Trading and service businesses — the scheme is for manufacturing, processing and job work
- Payments made before 1 June 2026, or claims filed after six months
- Amounts beyond the ₹5 lakh ceiling for the period
Keep the security deposit out of the claim. It is refundable and is not a service-line charge; the claim is on what the DISCOM charged for the line itself.
How much: 35% of the charges, up to ₹5 lakh
Multiply the service-line charges by 35%. If the result is more than ₹5 lakh — or more than what is left of the ₹5 lakh after earlier claims — the ceiling applies. From about ₹14.29 lakh of charges upward, 35% is more than ₹5 lakh, so the refund stops at ₹5 lakh.
Swipe sideways to see every column
| Charges paid to the DISCOM | 35% of the charges | Refund |
|---|---|---|
| ₹4 lakh | ₹1.4 lakh | ₹1.4 lakh |
| ₹12 lakh | ₹4.2 lakh | ₹4.2 lakh |
| ₹15 lakh | ₹5.25 lakh | ₹5 lakh (ceiling) |
| ₹18 lakh | ₹6.3 lakh | ₹5 lakh (ceiling) |
The refund in numbers
Four illustrations, including how the ₹5 lakh ceiling works across more than one claim — and a site that does not qualify.
How to claim the refund, step by step
Check the location first, keep every DISCOM receipt, and file with the District Industries Centre within six months of the payment.
Confirm the location and the unit
Check that the premises are outside GIDC estates and approved industrial parks, and that the unit is a manufacturing MSME with Udyam registration.
Before you payPay the DISCOM and keep the paper trail
Keep the DISCOM’s estimate or demand note, the payment receipt and the release order for the connection, load addition or shifting.
At paymentFile with the District Industries Centre
Submit the claim with the receipts, the Udyam certificate and proof of the location to the General Manager, DIC.
Within 6 months of paymentAnswer queries and get it sanctioned
The DIC verifies the location, the charges and the dates, and sanctions 35% subject to the ₹5 lakh ceiling.
Track the refund to your account
We follow the claim until the amount is credited, and log what is left of the ₹5 lakh for any later claim.
- DISCOM estimate or demand notefor the LT or HT service line
- Payment receiptits date starts the six-month clock
- Release order or connection sanctionnew connection, extra load or shifting
- Udyam registration certificateMSME status
- Proof of the premisessale deed, lease or rent deed showing the address
- Bank detailscancelled cheque for the credit
The scheme’s implementing guidelines may prescribe the exact form and portal; we file on the current ones.
Where power connection refunds go wrong
- Missing the six months.The clock starts on the payment date, and claims after it are not eligible.
- Assuming every estate is excluded the same way.GIDC estates and approved industrial parks are out; other industrial land is in. Check the status of your site before you pay.
- Claiming the security deposit.Only the service-line charges count, not refundable deposits.
- Losing the release order.The DIC matches the payment to a connection, load addition or shifting that actually happened.
- Forgetting the ceiling is shared.Every claim in the scheme period draws on the same ₹5 lakh.
- Counting a trading or service unit.The scheme is for manufacturing, production, processing and job work.
Power connection refund: questions we get asked
What is the power connection charges refund in Gujarat?
It is an assistance under the Viksit Gujarat Industrial Policy 2026 scheme for MSMEs (para 16): 35% of the charges a manufacturing MSME pays the DISCOM for an LT or HT service line — for a new connection, additional load or shifting — up to ₹5 lakh during the scheme period.
We are inside a GIDC estate. Can we claim it?
No. The assistance is for MSMEs located outside GIDC estates and approved industrial parks.
Is additional load on an existing connection covered?
Yes. The scheme covers charges paid for a new connection, for additional load in the case of an existing consumer, and for shifting of the connection or service line.
What is the maximum refund?
₹5 lakh during the operative period of the scheme (1 June 2026 to 31 May 2031). If 35% of your charges is more, or if earlier claims have used part of the ₹5 lakh, the ceiling applies.
How long do we have to apply?
Six months from the date of payment of the charges to the DISCOM. Applications after that are not eligible.
Who sanctions the refund?
The General Manager of the District Industries Centre (DIC) sanctions and disburses it, for micro, small and medium enterprises.
Does it apply to HT and LT connections?
Yes. The scheme refers to charges paid to the distribution licensee for an LT or HT service line.
Which DISCOMs does it cover?
Any distribution licensee in Gujarat: UGVCL, MGVCL, DGVCL, PGVCL or Torrent Power. What matters is the location of the unit and the service-line charges paid.
We paid the DISCOM before 1 June 2026. Are we covered?
Not under VGIP 2026, which covers charges paid during its operative period from 1 June 2026. Earlier payments fall under the previous Aatmanirbhar Gujarat Scheme and its own time limits.
Is the power connection refund part of the 45% combined ceiling?
The combined ceiling in para 4.2 of the MSME scheme covers capital, interest and power tariff subsidy. The power connection refund is a separate assistance under para 16 with its own ₹5 lakh ceiling.
Legal basis and official sources
This page follows para 16 of the VGIP 2026 MSME scheme, with the definitions in para 1 and the sanctioning authority in para 23.2, all read in full.
Scheme for assistance to MSMEs
Para 16: eligibility, 35% up to ₹5 lakh, and the six-month time limit. Para 23.2: the District Industries Centre sanctions it.
Download the GRNotes. Worked examples are illustrations. Whether a site counts as an approved industrial park is confirmed with the District Industries Centre before filing.
We check the site and the charges before you pay, keep the six-month clock, and file the claim with the District Industries Centre.
- Location check: GIDC, approved park or neither
- DISCOM estimate review: what counts as service-line charges
- Claim filed within six months of payment
- Coordination with electricity duty exemption and power tariff subsidy
Taking a new connection or extra load?
Send us the DISCOM estimate. We confirm the site qualifies, track the six months, and file the claim.