Punjab was the first Indian State to use agricultural technology to engineer a “Green Revolution” which recorded the highest growth rate in food production in the country. But the state was in dire need of a new industrial policy so the state government launched its new Industrial policy in the year 2013 to make the state an investor friendly industrial place.
- To encourage and promote IT and IT enabled services
- To lessen government control and outsourcing regulatory measures
- To attract and encourage investment in private sector under PPP (public Private Partnership) model
- To promote value-addition to promote Agro-based and Food Processing Industry
- To focus on skill-upgradation
Ease of doing business-
The policy focuses on ease of doing business to make the business environment in the state investor friendly. Online application/submission for any governmental work is to be done through single window system to make it easier for new as well as existing entrepreneurs and business to have a hassle free. Also, 24 hour help line facility, outsourcing the inspection of forms and others, opening information hubs to help business have also found their way in the policy.
VAT and CST incentives- for Fixed Capital Investment (FCI) above ₹ 25 crore
|Zones||FCI between ₹ 25 cr. and ₹ 100 cr.
|FCI between ₹ 100 cr. and 500 cr.||FCI above ₹ 500 cr.|
Where Fixed Capital Investment above ₹ 25 crore
|Zones||FCI between ₹ 10 cr. and ₹ 25 cr.
Electricity Duty Exemption-
- Where FCI is above ₹ 10 crore, in Zone-I-units would get 100% exemption
- In Zone-II, units would get 50% exemption
List of zones-
|Zone- I||Fazilka, Ferozepur, Tarn Taran, Amritsar, Gurdaspur, Pathankot, Hoshiarpur, Sangrur, Barnala, Mansa, Moga, Bathinda, Sri Muktsar Sahib and Faridkot. All approved Industrial Parks, Industrial Focal Points and Industrial Estates in all districts of the State.|
|Zone-II||Patiala, Fatehgarh Sahib, Ludhiana, Jalandhar, Kapurthala, Shaheed Bhagat Singh Nagar (Nawanshahr), Rupnagar and Ajitgarh(Mohali).|
Measures for attracting investments-
The state has given priority on taking various measures for attracting investments by planning to have an open-ended policy to attract anchor units, providing special concessions for mega projects to be set up in the state, exempting units from Stamp Duty, developing integrated multiplexes, providing 25% medical facilities to health tourism, special incentive packages for textile industry etc. also, to attract new industries as well as improve the existing ones, the state also plans to provide ₹ 150 crores annualized fund to create/upgrade industrial infrastructure.
Agro & Food Processing Industry-
The state also gives provides special incentives for the mentioned sectors apart from VAT, CST, Stamp Duty exemption.
The policy also talks about developing clusters for new/existing units, developing industrial parks, developing Special Economic Zones etc. The state plans to follow PPP model for development.
Special Incentives for Small and Medium Enterprise (SMEs) under IT/Knowledge Policy under the Industrial Policy-
20% Capital subsidy of fixed capital investment, amounting to a maximum of ₹ 20 lacs, to be provided to first 10 approved SME units in the IT Parks notified by PICTCL.
The government encourages IT software companies for quality certification by reimbursing 20% of expenditure obtained to attain quality certifications for SEI CMM (Software Engineering Institute – Capability Maturity Model) Level 2 upwards, amounting to a maximum of ₹ 4 lacs.
The government plans to make the state as the leading IT destination in the country by implementing these measures as envisioned in the aforementioned policy.
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