Punjab Industry gets a fresh doze of incentives from Government

With an aim to give boost to the industrial sector in Punjab, the government is laying stress on formulating and evolving fresh industrial policy, with a central theme of Make in Punjab. The basic objective is to encourage local industry with growth incentives besides attracting new entrepreneurs for investment in Punjab.

New Measures for Industrialists

In order to avoid unnecessary hassles to the industrialists it has been decided that the excise department would scrutinize tax assessment cases for only last three years instead of five.The industrialists have been provided with the online facilities and query platform and have been asked to upload their email IDs on the department portal.

Punjab industry gets a fresh doze of incentives from government

Besides in order to help industrialists provide a level playing field, provisions of the VAT (value-added tax) retention and power incentives have been given even for the expansion of existing units.The government has also excluded steel industry from the negative list.

SPVs for focal points

It was with this purpose that the idea of having special purpose vehicles (SPVs) in each industrial area has been mooted. After collecting taxes from industrialists, the SPVs would spend this money on the development of industrial areas and help solving the problem of the requirement of basic amenities at the focal points.

Rahat scheme 

The small scale entrepreneurs have been given relief with the scheme in which they can pay lump-sum taxes,that have already implemented. Apart from helping small scale industrialists in getting their dues cleared, the scheme aims at ending ‘Inspector Raj’, by simplifying the procedure of trade and business.

Fiscal incentive to small and medium scale industries
Earlier the government has also approved fiscal incentives for those units which were located in industrial zones as per master plans with an investment of Rs 1 to 10 crore.
The move was aimed at giving fillip to small and medium scale industries.

Low power tariff   

In another major decision, the government has also approved supply power at the effective rate of Electricity per unit (with utilisation factor of 50% or more) @ less than Rs 5 per unit (FCA extra) to the entrepreneurs who had plans to set up their units during Invest Punjab or who have already installed their units to avail ‘Fiscal Incentives for Industrial Promotion (revised), 2013’. These prospective investors would be eligible to the incentive for five years from coming into commercial operations while those who have already begun such operations could avail this benefit for five years with effect from October 28, 2015.

New ordinance approved

The government has also approved the ‘The Punjab Development of Trade and Industries Ordinance, 2015’ for the creation of fund to be used for the purpose of development of trade, industrial estates, focal points and industrial clusters. For this government gave a go ahead to impose entry tax on the goods brought into the state.

Rehabilitation of units in MLU

The government has also made a plan to rehabilitate 47 industrial units operating in a mix land use zone/ residential area falling in villages of Balongi, Daon, Badmajra, Ballomajra, Landran and Saneta within the jurisdiction of GMADA.

Approvals under Right to Service Act 
In a bid to provide relief to the existing industrial units in various day to day approvals from various departments and offices, the government has decided to bring the important approvals under the Right to Service Act. These approvals would be time bound.

Plug and Play industrial park
The government has also proposed a plug and play industrial park adjoining the international airport, SAS Nagar with a purpose to facilitate prospective South Korean investors who are keen to set up their ventures in the state.ve something to say? Post your comment

Wood park
A 200-acre “Wood Park” at Anandpur Sahib has been proposed with a purpose to promote plywood and timber industry in the Kandi (sub-mountainous) area.

There is much hope for the industry sector in the coming days as Punjab Industries Minister Madan Mohan Mittal says that the state is witnessing rapid and phenomenal strides in industrial sectors. “The days are not far when Punjab will witness a massive industrial revolution since as it has sealed 374 MoUs worth Rs. 1.12 lakh crore investments,” he claimed.

In fact, Deputy Chief Minister Sukhbir Badal’s views on elaborating the government’s plans to promote industries in the state sum up the policy well.

“Our aim is to provide entrepreneurs with congenial atmosphere, liberal policies, and online facilities for overall progress and job opportunities in Punjab,” he says.

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