Industrial areas · Bharuch, Ankleshwar, Dahej and Jhagadia
Incentives for a unit in Dahej SEZ, Dahej GIDC and the PCPIR: category, subsidies and filing
Dahej is Gujarat’s petrochemical coast: the 453-square-kilometre Petroleum, Chemicals and Petrochemicals Investment Region across 44 villages of Vagra and Bharuch talukas, the multi-product Dahej SEZ promoted by GIDC and ONGC, the Dahej GIDC estates, and a port with LNG, chemical and bulk terminals. Both talukas are Category B under the Viksit Gujarat Industrial Policy 2026: a Large chemical unit takes the thrust-sector matrix — 15% capital subsidy over eight years within a 25% ceiling — an MSME 25%, 7% and ₹1 a unit within 35%, and a new unit in the SEZ is exempt from electricity duty for ten years. We file every scheme that applies, with the Industries Commissionerate, DGFT Vadodara and the Custom House at Dahej.
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Vagra and Bharuch talukas, Bharuch district: both Category B in the taluka GR of 8 September 2026; the PCPIR’s 44 villages fall in the two; Netrang, inland, is the district’s only Category A taluka.
- Bcategory of Vagra (Dahej, Vilayat, Saykha) and Bharuch talukas
- 453 sq kmthe PCPIR, across 44 villages; Dahej SEZ Ltd (GIDC and ONGC) runs the multi-product SEZ inside it
- 25%combined ceiling of EFCI for a Large chemical unit on the thrust matrix in Category B; 35% for an MSME
On this page
Dahej SEZ and PCPIR at a glance: taluka, category, DISCOM and offices
Dahej is Category B in both of its talukas, billed by Torrent Power inside the SEZ and DGVCL outside it, sanctioned through the Industries Commissionerate for the Large and Mega units that dominate the region and the District Industries Centre, Bharuch, for MSMEs, and served by DGFT Regional Authority Vadodara for EPCG and the Custom House at Dahej for bonded cargo. The region’s own details are below.
- Talukas and category
- Vagra and Bharuch talukas, Bharuch district — both Category B under GR IMD/HMR/e-file/9/2026/2211/I of 8 September 2026
- The region
- PCPIR of 453 sq km across 44 villages, anchored by ONGC Petro additions; Dahej SEZ Ltd (GIDC and ONGC), a multi-product SEZ in Vagra taluka; Dahej GIDC estates; GIDC’s 25 MGD Narmada water supply, a 40 MLD common effluent treatment plant and a 90 MLD deep-sea effluent disposal line
- Port and access
- Petronet LNG, Adani Dahej, the GCPTCL chemical terminal and the Birla Copper jetty at Dahej port, about 45 km from Bharuch; Bharuch–Dahej rail 62 km; Vadodara airport about 90 km, Surat about 85 km, Ahmedabad about 250 km
- DISCOM
- Torrent Power holds the distribution licence for Dahej SEZ; DGVCL supplies Dahej GIDC and the rest of the PCPIR
- DGFT (EPCG)
- Regional Authority Vadodara; the Development Commissioner, Dahej SEZ, for units inside the zone
- Customs (MOOWR)
- Custom House, Dahej, for the port; the MOOWR licence is issued by the Customs Commissionerate with jurisdiction over the plant
- Sanctioning offices
- Industries Commissionerate, Gandhinagar, for Large, Mega and Ultra Mega units (the High Powered Committee under the Chief Minister for Mega and Ultra Mega thrust-sector packages); District Industries Centre, Bharuch, for MSME claims; CEICED for the electricity duty exemption
Dahej’s plots are allotted by GIDC, Dahej SEZ Ltd or the PCPIR’s development authority, and an SEZ unit’s approvals run through the Development Commissioner. This page is about the State and Central incentives a unit here can claim once it has its plot — what each pays, which office pays it and by when it must be filed.
What a unit in Dahej SEZ and PCPIR earns under VGIP 2026
The table reads the three VGIP 2026 GRs for Vagra taluka, which is Category B. The MSME column is where most plots here fall; the Large columns are the general-sector and thrust-sector matrices of the GR of 8 September 2026. Electricity duty exemption and EPF reimbursement are statutory and sit outside the ceiling in every column.
Swipe sideways to see every column
| Component | MSME, Category B | Large, general sectors (B) | Large, thrust sectors (B) |
|---|---|---|---|
| Capital subsidy | 25% of EFCIover 5 years; micro units in one instalment | 10% of EFCIover 10 years | 15% of EFCIover 8 years |
| Interest subsidyon the term loan; 8% for women, first-generation and registered start-up MSMEs | 7% a year5 years, up to 10% of EFCI | 7% a year10 years, up to 10% of EFCI | 7% a year8 years, up to 15% of EFCI |
| Power tariff subsidyon units bought from the DISCOM | ₹1 a unit5 years, up to 25% of EFCI | ₹1 a unit10 years, up to 10% of EFCI | ₹1 a unit8 years, up to 15% of EFCI |
| Combined ceilingthe three above, together | 35% of EFCIover 5 years; 7% a year for small and medium units | 15% of EFCIover 10 years; 1.5% a year | 25% of EFCIover 8 years; 3.5% a year |
| Electricity duty exemption | 100% for 5 years from the date production starts10 years for a new SEZ unit; statutory under the Gujarat Electricity Duty Act 1958, outside the ceiling, the same for every size and category | ||
| EPF reimbursement | 100% for 5 yearsof the employer’s EPF on new employees, up to ₹1,800 / ₹2,500 / ₹3,000 a month; outside the ceiling | 100% for 10 yearsof the employer’s EPF on new employees, same monthly caps; outside the ceiling | 100% for 8 yearsof the employer’s EPF on new employees, same monthly caps; outside the ceiling |
The ceiling, not the rates, usually sets the number. Capital, interest and power tariff subsidy together cannot exceed 35% of EFCI over five years for an MSME in a Category B taluka (45% in Category A), and 15% over ten years for a Large unit in a general sector (25% over eight for a thrust sector). A power-hungry plant that could earn more than that from the power tariff subsidy alone is therefore placed in the components that pay earliest and most reliably — which is a filing decision, not a formula.
Which incentives apply in Dahej SEZ and PCPIR
The package is the State’s, not the estate’s: what Dahej SEZ and PCPIR fixes is the rate (Category B), the DISCOM whose bills carry the power tariff subsidy and the electricity duty, and the offices that take each file — Torrent Power’s bills inside the SEZ and DGVCL’s outside as the claim documents, the Industries Commissionerate for the Large and Mega units, Regional Authority Vadodara for EPCG and the Custom House at Dahej for bonded cargo.
Capital subsidy in Gujarat
25% of eligible fixed capital investment for an MSME in a Category B taluka (35% in Category A); 10% to 35% for Large, Mega and Ultra Mega units, paid in annual instalments within the combined ceiling.
Interest subsidy in Gujarat
7% a year on the term loan in every taluka, 8% for women, first-generation and registered start-up MSMEs; the unit bears at least 2%. Five years for MSMEs, capped at 10% of EFCI; eight to twelve years for larger units.
Power tariff subsidy in Gujarat
₹1 a unit on power bought from DGVCL (Torrent Power inside the SEZ) in the Category B talukas (₹2 in Category A), for five years for MSMEs, capped at 25% of EFCI. Captive power does not count; an expansion claims only its additional consumption on a sub-meter.
Electricity duty exemption in Gujarat
No electricity duty — 15% of consumption charges on HT, 10% on LT — for five years from the date production starts, ten for a new SEZ unit. Applied for at CEICED within 90 days of production; statutory, outside the VGIP ceiling, and available inside GIDC estates.
MOOWR and EPCG
No customs duty upfront on imported machinery and inputs under MOOWR (duty on inputs only when goods are sold in India), or zero duty under EPCG against exports of six times the duty saved within six years, filed at Regional Authority Vadodara. Central schemes, so they stack on the Gujarat package.
EPF reimbursement and the connection refund
100% of the employer’s EPF on new employees, up to ₹1,800 to ₹3,000 a month each, for five years (MSMEs) to ten, outside the ceiling. And for MSMEs outside GIDC estates and approved parks, 35% of the DISCOM’s service-line charges back, up to ₹5 lakh.
What Dahej SEZ and PCPIR makes, and the schemes that fit
What the estate makes decides which component carries the money: power-heavy plants live on the power tariff subsidy and the duty exemption, machinery-heavy plants on the capital and interest subsidy and the customs schemes, labour-heavy plants on EPF. The estate’s sectors and the components that matter most for each:
Swipe sideways to see every column
| Sector | Where | Schemes that usually matter most |
|---|---|---|
| Petrochemicals and bulk chemicals | OPaL complex, SEZ, GIDC estates | Large, Mega and Ultra Mega registration under the Viksit Gujarat Industrial Policy 2026 by 8 December 2026; the chemical thrust matrix — 15% capital subsidy over eight years in Category B — or a Mega package from the High Powered Committee; MOOWR scheme on imported feedstock and machinery; the electricity duty exemption in Gujarat for five years, ten in the SEZ |
| Specialty chemicals, fluorochemicals and agrochemicals | Dahej GIDC, SEZ | Thrust rates for Large units with the CETP condition met by the 40 MLD common plant; MSMEs take 25% capital subsidy, 7% interest and ₹1 a unit |
| Pharmaceuticals and APIs | Dahej GIDC, SEZ | Healthcare is a thrust sector for Large units; MSMEs take capital subsidy, EPCG scheme or MOOWR on imported equipment and EPF reimbursement in Gujarat on new hires |
| Copper, metals and industrial gases | Port area, GIDC estates | Metals and minerals is a thrust sector for Large units; the electricity duty exemption on smelting and separation loads; power tariff subsidy in Gujarat on the DISCOM’s bills |
| Engineering, fabrication and logistics | Dahej GIDC, Vilayat, Saykha | Capital and interest subsidy for MSMEs; the power connection refund for units outside the GIDC estates and approved parks |
Worked example: a Large specialty-chemicals unit in the Dahej PCPIR
A ₹300 crore specialty-chemicals plant on a GIDC plot in the PCPIR, financed with ₹180 crore of term loan and drawing 10 MW from DGVCL. Chemicals are a thrust sector and the plant has CETP access, so the Large GR’s thrust matrix for Category B applies: 15% capital subsidy, 7% interest up to 15%, ₹1 a unit up to 15%, within a 25% ceiling paid over eight years at no more than 3.5% of EFCI a year.
₹300 crore specialty-chemicals plant, Dahej PCPIR
Gross plant and machinery above ₹125 crore makes it a Large unit; chemicals with CETP access make it a thrust-sector unit; Vagra taluka makes it Category B.
- Eligible fixed capital investment (plant, machinery, buildings, utilities, project infrastructure inside the premises; land excluded): ₹300 crore
- Term loan of ₹180 crore at 9.0%, 10-year tenure with a 2-year moratorium, repaid in equal annual instalments; the unit bears 2.0% after the 7% subsidy
- Contracted load 10,000 kW, run 6,000 hours a year — 60 million units bought from DGVCL
- Registered with the Industries Commissionerate before production; IEM filed; GPCB consent and CETP membership in hand
- Capital subsidy, 15% of EFCI₹45 crore
- Interest subsidy, 7% on the balance for 8 years (₹77.17 crore before the 15% cap)₹45 crore
- Power tariff subsidy, ₹1 a unit on 60 million units a year for 8 years (₹48 crore before the 15% cap)₹45 crore
- The three components added₹135 crore
- Combined ceiling, 25% of EFCI over 8 years₹75 crore
₹75 crore over 8 years under VGIP 2026, within an annual ceiling of ₹10.5 crore. The three components add up to ₹135 crore, well past the combined ceiling, so the ceiling is the number; the annual ceiling of 3.5% of EFCI caps what any one year can pay, and the electricity duty exemption in Gujarat and EPF reimbursement are claimed on top, outside both.
Figures are illustrative and rounded; eligible fixed capital investment excludes land, working capital and second-hand machinery, and the interest subsidy runs only on the term loan actually disbursed. Our capital subsidy worked example, interest subsidy worked example and power tariff subsidy worked example walk through each component year by year, and the Gujarat subsidy calculator applies the right category to any plot.
How a claim runs for a unit in Dahej SEZ and PCPIR
A file from Dahej SEZ and PCPIR passes through the District Industries Centre at Bharuch for MSME claims, the Industries Commissionerate in Gandhinagar for Large units and above, CEICED online for the electricity duty exemption, Regional Authority Vadodara for EPCG and the jurisdictional Customs Commissionerate for MOOWR. We prepare, file and follow each one.
Fix the category and the dates
We read the plot’s taluka from the land record, confirm its category in writing, and set the project’s dates: investment counted from 1 January 2026, the date of commercial production, and the first deadline that follows from it.
Before you spendRegister where the size requires it
Large, Mega and Ultra Mega units register with the Industries Commissionerate before production or by 8 December 2026, whichever is later; MSMEs need no registration step but apply for the provisional or final eligibility certificate within six months of the date of commercial production.
Before productionFile the statutory and central applications on their own clocks
The electricity duty exemption online to CEICED within 90 days of production; the MOOWR application to the jurisdictional Customs Commissionerate before the first bonded import; EPCG at Regional Authority Vadodara before the machinery lands.
To each scheme’s clockClaim with the sanctioning office
The District Industries Centre at Bharuch takes the MSME claims for capital, interest and power tariff subsidy, the quarterly EPF claims and the connection refund; the Industries Commissionerate takes the Large claims. Queries and asset verification are answered on site.
Follow every instalment
Annual instalments over five years for small and medium units, quarterly EPF, MOOWR returns, and the DISCOM’s refund of duty paid before the exemption certificate — tracked until the money is in the account.
The dates that decide a claim in Dahej SEZ and PCPIR
Four dates do most of the work in a VGIP 2026 claim, and the estate does not move any of them. Investment counts from 1 January 2026; Large, Mega and Ultra Mega units register before production or by 8 December 2026, whichever is later (our note on the 8 December 2026 registration deadline); the electricity duty exemption is applied for within 90 days of first production; and production must start before the operative period ends on 31 May 2031.
- 1 Jan 2026Assets bought and paid for from this date count as eligible investment
- 8 Dec 2026Registration deadline for Large, Mega and Ultra Mega units, or before production if later
- 90 daysAfter production starts: electricity duty exemption application to CEICED
- 31 May 2031The operative period ends; production must start within it
MSMEs apply for the provisional eligibility certificate within six months of the date of commercial production or of 25 September 2026, whichever is later; a late application within two years is accepted with the incentive reduced in proportion to the delay. The power connection refund is claimed within six months of paying the DISCOM’s charges; EPCG is authorised before the machinery is imported; a MOOWR licence is in place before the first bonded consignment.
Dahej SEZ and PCPIR: questions we get asked
Is Dahej Category A or Category B under VGIP 2026?
Category B. Dahej SEZ, Dahej GIDC and most of the PCPIR lie in Vagra taluka, and the PCPIR’s remaining villages in Bharuch taluka; the taluka GR of 8 September 2026 lists both as Category B, with Ankleshwar, Jhagadia, Hansot, Valia, Jambusar and Amod. Netrang is the district’s only Category A taluka. We confirm the category in writing before you file.
What does a Large chemical unit at Dahej earn under VGIP 2026?
The thrust-sector matrix for Category B, because chemicals and petrochemicals are sector 8 of Annexure-A and the region’s CETP meets the condition precedent: 15% of eligible fixed capital investment as capital subsidy over eight years, or 7% interest subsidy up to 15% of EFCI, or ₹1 a unit of power tariff subsidy up to 15% — in any combination within a 25% ceiling, paid at no more than 3.5% of EFCI a year (₹300 crore a year at most). EPF reimbursement for eight years and the electricity duty exemption come on top.
Does a new unit in Dahej SEZ get the electricity duty exemption for ten years?
Yes — ten years from the date production starts for a new industrial unit in a special economic zone, against five years in Dahej GIDC or elsewhere in the PCPIR. Torrent Power, the SEZ’s distribution licensee, stops charging the duty once CEICED’s certificate is on record; the application goes in within 90 days of production.
Torrent Power inside the SEZ, DGVCL outside — does the licensee change the subsidy?
No. The power tariff subsidy is paid on power bought from any distribution licensee in Gujarat, so a unit billed by Torrent Power in the SEZ and one billed by DGVCL in Dahej GIDC earn the same ₹1 a unit in a Category B taluka, each within its cap. Both licensees charge electricity duty until the exemption certificate reaches them.
A PCPIR project will start production in 2027. When must it register?
Before the date of commercial production or by 8 December 2026, whichever is later — the Large GR gives three months from its date of 8 September 2026 and makes registration mandatory. The application carries the IEM, land possession, GPCB consent to establish, the detailed project report and the term loan sanction; the provisional eligibility certificate then follows within three months of production, for 40% of the eligible investment.
Can a Mega project at Dahej get more than the published matrix?
A Mega unit — a thrust-sector project of ₹1,000 crore of gross investment with 250 direct jobs — or an Ultra Mega unit (₹10,000 crore and 3,000 jobs) may be offered a customised package by the High Powered Committee chaired by the Chief Minister; the published Mega matrix in Category B is 20% capital subsidy over ten years within a 30% ceiling. Ultra Mega units also recover the stamp duty and registration charges on project land.
Where does a Dahej MOOWR file go?
The licence under Section 65 of the Customs Act comes from the Customs Commissionerate with jurisdiction over the plant, and bonded cargo clears through the Custom House at Dahej; the licence must be in force before the first bonded consignment, after which the unit files monthly returns. A unit inside the SEZ imports duty-free under the SEZ Act instead and does not need MOOWR.
Is the power connection refund available in Dahej GIDC?
No. The 35% refund of the DISCOM’s service-line charges, up to ₹5 lakh, is for MSMEs outside GIDC estates and approved industrial parks. Capital, interest and power tariff subsidy, EPF reimbursement and the electricity duty exemption apply inside the estates and the SEZ.
Legal basis and official sources
Every rate on this page is the published term of the scheme it links to, read from the GRs and the Act; the taluka categories come from the taluka GR’s annexure.
Classification of talukas: Category A and B
Annexure-A lists all 268 talukas, district by district, as Category A or Category B — the source for every category on this page.
Download the GRScheme for assistance to MSMEs
Capital, interest and power tariff subsidy, EPF reimbursement and the power connection refund: rates, periods, ceilings and sanctioning authorities.
Download the GRScheme for assistance to Large, Mega and Ultra Mega industries
The general, thrust and selected-thrust matrices, the registration rule, PEC and FEC timelines and the sanctioning committees.
Download the GRNotes. Taluka categories are read from the annexure to the taluka GR; DISCOM areas from the distribution licences in force; DGFT jurisdictions from Appendix 1A of the Handbook of Procedures; Customs jurisdictions from CBIC Notification 21/2022-Customs (N.T.) of 31 March 2022; PCPIR and SEZ facts from the Dahej SEZ Ltd and PCPIR published profiles; sector descriptions are ours. Estate boundaries, approved-park status and the DISCOM for a specific plot are confirmed with the GIDC, the DISCOM and the District Industries Centre before filing. Scheme notices are published by the Industries Commissionerate, Gujarat.
We work with chemical and petrochemical units across Dahej, Vilayat and Saykha from our office in Ahmedabad: the eligibility check is free and names every scheme, figure and deadline for your plot.
- Taluka category confirmed in writing before you commit to the plot
- Registration and eligibility certificates timed to the date of commercial production
- Electricity duty exemption filed with CEICED within 90 days; MOOWR and EPCG before the first import
- Claims filed and followed at the District Industries Centre at Bharuch
Setting up or expanding in Dahej SEZ and PCPIR?
One free eligibility check: the category confirmed in writing, every scheme that applies to the plot, the figures and the first deadline.