The Industry and Commerce Minister, Punjab, Sunder Sham Arora has said that the new industrial policy in its modified form would bolster the industrial development in the state. He said that as per the demands of the industrial sector many financial incentives have been given to the industry which would be of tremendous assistance in the modernization as well as the expansion of the industrial units.The minister also said that in the new industrial policy many path breaking modifications have been carried out namely exemption from stamp duty, CLU/EDC, Electricity Duty, Property Tax, Investment subsidy through payment of VAT/State GST, Interest subsidy for the small & medium industries, financial assistance for acquiring technology, Assistance for adhering to environmental norms, Assistance for startup entrepreneurs, Increasing subsidy from Rs. 36000 to Rs. 48000 per job per year for enabling established anchor units to generate employment for women/SC/BC labourers, Additional incentives for the first industrial units in border regions and special relief package for the small as well as big sick units.Mr. Arora further said that in the newly modified policy the industrial parks to be established in at least 25 acre area would be accorded sanction to develop 50 percent area for residential and commercial purposes and no CLU/EDC would be applicable on the industrial area. He also said that due assistance after consulting various stakeholders would be given to the units using captive generator and the government would notify an entirely different scheme about the State GST benefit scheme as per new modifications.A special relief package would be given to the industrial institutions purchasing sick units of the big regions. The enterprise value of the sick unit must be at least Rs. 5 crores. He also divulged that the sick unit must have been operational for at least 5 years and its net worth ought to have finished or the account of the unit must have been declared NPA for the previous 8 quarters continuously.
He also said that those buying such sick units would be granted exemption from the electricity duty and increase in the net State GST from 3 to 7 years.Mr. Arora further said that the exemption in the electricity duty would not include relief from social security cess. He further disclosed that manufacturing and service centers have been included in the thrust sectors in the new policy. He also said that the food processing anchor units have been granted 100 percent exemption from the 2 percent amount levied on the purchase price of the raw material bought as the private market yard, 100 percent exemption from the electricity duty for 10 years to the big units and 100 percent exemption from the electricity duty for 15 years to the anchor units. Apart from this those units who have attained full benefit under the credit linked capital subsidy scheme of the Union Government would also be granted additional assistance.The minister further added that under the new modifications the phase production/exception/diversification/ and date of production under modernization would only be considered that one which has been declared by the unit on the completion of the whole immovable capital of the concerned phase production/exception/diversification/modernization. He also said that for the units having immovable capital to the tune of Rs. 500 crore or more would be considered as eligible from the first date of production to the investment done up till 5 years period with possibility of issuance of the 5 additional eligibility certificates. Besides this, the units having immovable capital of more than Rs. 100 crore or more would need additional immovable capital investment of at least Rs. 50 crore for expansion. He also said that the 100 percent exemption on the fees levied on the raw material of the food processing industries would be granted besides market fees, rural development fees and state taxes and also the payment of fees and other taxes for buying the raw material by the food processing units would be converted into the exemption of 10 years.