The Punjab Deputy Chief Minister Mr. Sukhbir Singh Badal today unveiled the new policy for Fiscal Incentives for Industrial Promotion in Punjab and described it as aggressive, incentive based policy that besides changing the paradigm of Industrial Development would facilitate the investment in the state.
Giving the presentation of New Industrial Policy that was passed by the cabinet under the chairmanship of Punjab Chief Minister Mr. Parkash Singh Badal earlier in the day Mr. Badal thanked Industry and Commerce Minister Mr. Anil Joshi, Chief Parliamentary Secretary Mr. N.K. Sharma and the core group of Industrialists that gave a feed back on the requirements of Industry for 4 month long intensive brainstorming exercise that enabled Punjab to come out with one of its own kind ‘Earn Your Incentive’ Policy. He said that Punjab suffered to attract industry being the landlocked state that had tax haven hilly states as neigbourers. He said that Punjab has taken a proactive step to facilitate the investment in the state by offering maximum incentives than any states, ensuring surplus power besides 24 hour power to IT industry, world class infrastructure, regulation free regime and on the top of it self attested proposals without any site verification. Mr. Badal said that New Industrial Policy focused on three points Incentives, Simplifying Procedures and facilitation. He said that all earlier steps of screening committee and empowered committee have been eliminated with Punjab becoming the first state to provide online approvals in most transparent manner.
Giving the details of the incentives, Mr. Badal said that for manufacturing sector, Punjab has been pided into two zones with zone I including Fazilka, Ferozepur, Tarn Taran, Amritsar, Gurdaspur, Pathankot, Hoshiarpur, Sangrur, Barnala, Mansa, Bathinda, Sri Muktsar Sahib, Faridkot and all approved industrial parks, focal points, industrial estates in any part of the state. Zone II would include Patiala, Fatehgarh Sahib, Ludhiana, Moga, Jalandhar, Kapurthala, Shaheed Bhagat Singh Nagar and Ajitgarh (Mohali). Mr. Badal said that for the first time substantial incentives have been given to small and medium industry, which were not given in any policy.
Describing the incentives for zone I Mr. Badal said that manufacturing units Fixed Capital Investment (FCI) from 1 to 10 crore would be eligible for 50% of VAT plus 75% of CST retention for 7 years and for units having FCI 10 crore to 25 crore these benefits would be for 8 years. Units having FCI from 25 crore to 100 crore would be eligible for 60% of VAT plus 75% of CST retention with maximum of 60% of FCI for 10 years and units with FCI from 100 crore to 500 crore, VAT incentives would be 70% plus 75% of CST retention with maximum of 70% of FCI for 11 years. A new category of units with FCI above 500 crore has been created that would enjoy 80% of VAT incentive plus 75% of CST retention with maximum limit of 80% of FCI for 13 years. In addition these units would have 100% exemption in Electricty Duty, Stamp Duty and Property Tax.
For Industry in Zone II units with FCI of 10 to 25 crore would enjoy 25% VAT plus 50% of CST retention for 8 years, units with FCI of 25 to 100 crore would have 30% of VAT and 50 % of FCI for 10 years, units with FCI 100 to 500 crore would have 35% of VAT and 50% of CST retention for 11 years and units with FCI above 500 crore would enjoy 40% of VAT and 50% of CST retention for 13 years besides 50% exemption in electricity duty, stamp duty and property tax.
Details of retention of VAT, CST, Electricity Duty, Stamp Duty and Property Tax Incentives have been separately notified.
Giving a new boost to Agro/Food Processing industry, such units anywhere in the state besides enjoying all benefits of zone I of manufacturing sector would also have Mandi Fee, Rural Development Fee, Infrastructure Development Cess incentives besides purchase tax incentives on wheat and milk. It has been decided that no purchase tax would be levied on wheat and milk purchased and processed in the state. It has also been decided that no VAT/Entry Tax will be charged on farm equipments.
In a major step to make SAS Nagar Mohali and Amritsar as IT hub of the state, Mr. Sukhbir Singh Badal today announced a plethora of incentives including VAT incentives, ensuring 24 hour power, Stamp Duty, Property Tax exemption and exemption from Punjab Pollution Control Board, exemption from all labour laws, PAPRA besides incentives related to housing and urban development sector. For the Hardware sector similar incentives have been offered besides offering them preferential market access and special incentives for Semi Conductor Wafer FAB. Mr. Badal said that IT industry would be offered subsidised or cost to cost land.
Promising to revolutionarise the investment pattern in Punjab, Mr. Badal said that he has getting queries from industrial houses, who were keenly looking towards the industrial policy of the state and Punjab would soon hold a ‘Investment Summit’ and ‘Road Shows in different parts of the country. He said that besides offering 24 hour power supply to IT industry, billing charges have also been relooked. Mr. Badal said that with the setting up of STPI node at Amritsar, the IT industry in the border sector would get a flip. He said that new industrial policy would be applicable to all new units and New Expansions in the existing units. Mr. Badal said that PSIEC has already identified 5000 hectares of land for creating a land bank for the industrial sector.
Giving the details of facilitation measures, Mr. Badal said that Punjab is the first state that has simplified the all procedures and documents, ensured transparent workflow, online application and approval, self-attestation of documents, third party certification of building plans, stability and safety etc, and payment gateway for online payments. Mr. Badal said that Punjab Pollution Control Board has already made the procedure online.
The Deputy Chief Minister said that he was looking for investment in Sunrise Sectors like biosciences, consumer electronics, micro biotech, export promotion units, agro based units and textile sector that have maximum employment potential.
Speaking on the occasion, Mr. Anil Joshi, Industries Minister, Punjab said that it was the most comprehensive policy notified by any state of the country and would give big boost to investment climate in the state. Mr. N.K. Sharma, Chief Parliamentary Secretary Industries, Mr. Rajinder Gupta, Deputy Chairman Planning Commission, Mr. Kamal Oswal, Industrial Advisor were also present on the occasion.