Punjab announces new Industrial Policy 2013

By Editor_iGovernment |

4th June 2013

This includes fiscal incentives for manufacturing, integrated textile units, agro and food processing sector, electronics hardware and IT

To give filip to industrialisation in the state, the Punjab government announced its new incentive-based Industrial Policy-2013. Under the policy, the state has approved a liberal package of fiscal incentives for the manufacturing sector, integrated textile units, agro and food processing sector, electronics hardware and Information Technology.

According to the policy, the state will offer incentives on value-added tax (VAT) and central sales tax (CST), electricity duty, stamp duty, property tax, purchase tax (on select commodities), market fees, rural development fund (RDF) and infrastructure development cess.
For the first time, emphasis has been given on the development of SMEs, with a capital investment of Rs 1-10 crore. Under this category, the maximum cumulative quantum of incentive is 50 percent of the total fixed capital investment.
Unveiling the policy, the Punjab Deputy Chief Minister Sukhbir Singh Badal described it as an aggressive, incentive-based policy that, besides changing the paradigm of industrial development, would facilitate investment in the state.
Terming it as an 'Earn Your Incentive' Policy, Mr. Badal added that Punjab has taken a proactive step to facilitate investment in the state by offering maximum incentives as compared to other states. Mr. Badal said that the New Industrial Policy focused on three points: incentives; simplifying procedures; and facilitation. He said that all earlier steps of the Screening Committee and the Empowered Committee have been eliminated, with Punjab becoming the first state to provide online approvals in the most transparent manner.
Giving the details of the incentives, the Deputy CM said that for the manufacturing sector, Punjab has been divided into two zones: Zone I, which is less industrialised; and Zone II, which is highly industrialised. Describing the incentives for Zone I, Mr. Badal said that manufacturing units with Fixed Capital Investment (FCI) from Rs 1 to 10 crore would be eligible for 50 percent of VAT plus 75 percent of CST retention for seven years; and for units having FCI Rs 10 crore to 25 crore these benefits would be for eight years.
Units having FCI from Rs. 25 crore to 100 crore would be eligible for 60 percent of VAT plus 75 percent of CST retention with maximum of 60 percent of FCI for ten years; and units with FCI from Rs 100 crore to 500 crore, VAT incentives would be 70 percent plus 75 percent of CST retention with maximum of 70 percent of FCI for 11 years. A new category of units with FCI above Rs 500 crore has been created that would enjoy 80 percent of VAT incentive plus 75 percent of CST retention with maximum limit of 80 percent of FCI for 13 years. In addition, these units would have 100 percent exemption in electricty duty, stamp duty and property tax.
Industry in Zone II units with FCI of Rs 10 to 25 crore would enjoy 25 percent VAT plus 50 percent of CST retention for eight years. Units with FCI of Rs 25 to 100 crore would have 30 percent of VAT and 50 percent of FCI for ten years. Units with FCI of Rs. 100 to 500 crore would have 35 percent of VAT and 50 percent of CST retention for 11 years, and units with FCI above 500 crore would enjoy 40 percent of VAT and 50 percent of CST retention for 13 years besides 50 percent exemption in electricity duty, stamp duty and property tax.
Further, for agro/food processing industry, besides all benefits of Zone I of the manufacturing sector, these 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 equipment.
In a major step to make SAS Nagar, Mohali and Amritsar as IT hubs of the state, Mr. Badal announced incentives including VAT incentives, ensuring 24-hour power, stamp duty and property tax exemption and exemption from the Punjab Pollution Control Board as well as exemption from all labour laws as well.
Source & Credit: Business Standard
comments powered by Disqus
Tourism Ministry to get Rs 600 crore for two new...

The money will be spent for the development of tourism circuits and pilgrimage centres...

Vinay Srivastava appointed PS to Prakash Javadekar...

Srivastava is a 1992 batch officer of Indian Railway Service of Mechanical Engineers...

Sanjeev Kr Singla appointed PS to PM Narendra...

Singla is 1997 batch IFS officer and will succeed Vikram Misri


PSU Prism

Panel Discussion on Information Infrastructure : Challenges and Solutions for Public Sector

iStates Kerala

iStates is primarily an exercise in idea mining, best practice sharing and showcasing new technologies as well...

survey & reports

/* 768_menu */