Punjab’s Deputy Chief Minister Sukhbir Singh Badal on Monday announced new policy for Fiscal Incentives for Industrial Promotion in Punjab and claimed that the news will change the paradigm of Industrial Development and facilitate the investment in the state.
“New new policy, we have come out with one of its own kind ‘Earn Your Incentive’ Policy 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,” Sukhbir Badal said, adding that Punjab had failed to attract industry being the landlocked state that had tax haven hilly states as neigbourers.
Sukhbir said that New Industrial Policy focuses on three points Incentives, Simplifying Procedures and facilitation and 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.
“For manufacturing sector, Punjab has been divided 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),” Sukhbir Badal said, adding that for the first time substantial incentives have been given to small and medium industry, which were not given in any policy.
While describing the incentives for zone I, Sukhbir Badal said that the manufacturing units with Fixed Capital Investment (FCI) from Rs 1 to 10 crore will be eligible for 50 percent of VAT plus 75 percent of CST retention for 7 years and for units having FCI from Rs 10 crore to Rs 25 crore, these benefits will continue upto for 8 years.
“Units having FCI from Rs 25 crore to Rs 100 crore will be eligible for 60 percent of VAT plus 75 percent of CST retention with maximum of 60 percent of FCI for 10 years and units with FCI from Rs 100 crore to Rs 500 crore, VAT incentives would be 70 percent plus 75 percent of CST retention with maximum of 70 percent of FCI for 11 years. Moreover, 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,” Sukhbir said.
In addition, these units would have 100 percent exemption in Electricty Duty, Stamp Duty and Property Tax. For Industry in Zone II units with FCI of Rs 10 to Rs 25 crore would enjoy 25 percent VAT plus 50 percent of CST retention for 8 years, units with FCI of Rs 25 to Rs 100 crore would have 30 percent of VAT and 50 percent of FCI for 10 years, units with FCI Rs 100 to Rs 500 crore would have 35 percent of VAT and 50 percent of CST retention for 11 years and units with FCI above Rs 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.
Sukhbir added that the details of retention of VAT, CST, Electricity Duty, Stamp Duty and Property Tax Incentives have been separately notified.
“While 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,” he said.
Meanwhile, in a major step to make SAS Nagar Mohali and Amritsar as IT hub of the state, 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.
Badal added 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.
Further, 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,” he added.
He said that Punjab Pollution Control Board has already made the procedure online.
Meanwhile, Punjab’s Industries Minister Anil Joshi said that it was the most comprehensive policy notified by any state of the country and will give big boost to investment climate in the state.