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Industrial Policy Of Punjab
New Industrial Policy 1996 has given special thrust to the development of Agro-based industry and to build a conducive industrial climate to attract fresh investments and also facilitate the growth and expansion of existing industry. The State has been categorized into three areas for providing incentives for industrial development. These categories are:
Category-A: Districts of Amritsar, Gurdaspur, Ferozepur, Faridkot, Muketsar, Moga and Mansa and designated Kandi areas except areas falling within the Municipal Limits of towns of population of more than one lakh.
Category - B: The rest of the State, except areas under category A & C
Category - C: The towns with population of more than one lakh in districts other than the A category. The areas falling within the Chandigarh Capital Periphery, except Free Enterprises Zone, Industrial Areas/Focal Points/Industrial Estates and areas identified and declared by the State Govt. for industrial use.
From the role of direct promotion and direct financial assistance, the government has to change to the role of a facilitator, by creating a physical and institutional climate of investment and industry friendliness that increases the efficiency and competitive ability of industry, or groups of industries in general, in a sustainable manner. This becomes even more critical in the era of trade liberalization brought about by the various WTO agreements, which are already in place, and will progressively come into play over the next few years. Trade liberalization is both a threat and an opportunity-and the Industrial policy needs to deal with both these aspects. The State’s industry has to meet the challenges of higher product standards, environmental requirements and increased competition, while at the same time, take full advantage of new markets, inputs and technologies available. The new Industrial Policy is based on these concerns, with the following broad objectives:
- Subsidy of upto 30%, of fixed capital investment upto Rs. 5 million, in Category-A
- Subsidy of upto 20%, of fixed capital investment upto Rs. 3 million, in the rest of the state
- Sales tax exemption upto 300% of fixed capital investment for 10 years in category-A & 150% fixed capital investment for 7 years in category-B
- New Electronic units coming up in the State after 24th June, 1991, shall be provided exemption from Sales/Purchase tax for a period of 10 years from the date of production. After the expiry of 10 years, sale/purchase tax would be charged at the rate of 3.5% for further 3 years.
- Octroi exemption of upto 50% for electronics units for 6 years from the date of registration.
- Equity participation by the Punjab State Industrial and Development Corporation in selected projects Special subsidy of 5% of turnover, upto Rs. 1 million, for computer software or system engineering systems units for 5 years
- Hotels, restaurants and amusement/adventure parks will be eligible for Investment incentive @ 25% subject to maximum limit of Rs. 2.5 million irrespective of their location.
- Setting up of an exclusive Focal Point in Mohali for NRI entrepreneurs.Reservation of Industrial plots for allotment in all Focal Points and Industrial Estates in the State for NRIs.
- Preference to NRI entrepreneurs by State Industrial Development and other promotional Corporations, while finalising proposals for joint ventures/assisted sector projects.
- A Special Cell in the Udyog Sahayak Directorate of Industries, to provide Single Window Facility and to ensure time-bound clearance to all investment proposals received from NRIs.