The state's non-conventional energy Minister Bikram Singh Majithia announced this at a two-day seminar on 'Energy Access' inaugurated by Prime Minister Manmohan Singh here today.
Under the new policy, Punjab would provide the highest ever tariff to purchase power generated by bio-mass projects in the country.
To woo giant players in biomass sector, he said their government would offered highest tariff at Rs 5.83 per unit to purchase the power generated by the biomass plants.
Majithia said Punjab would become a power surplus state by the end of next year with the completion of four under construction thermal plants with a combined generation capacity of 3920 MW.
He said under the upcoming policy, Punjab would also provide "wheeling and banking facilities" to the investors.
Besides the government has decided to provide 50 per cent exemption on electricity duty on the power used during construction period by the investors.
He also said 100 per cent entry tax exemption would also be given to the project holder in respect of all supplies made by setting up of the New Renewable Energy Projects.
The Government has also announced VAT exemption on equipments required for these projects.
