Ruchika M Khanna
Chandigarh, October 31
The Aam Aadmi Party’s (AAP) government is all set to approve ‘The Punjab Industrial and Business Development Policy-2022’ by bringing it for discussion in the Cabinet meeting scheduled this week. The previous industrial policy of 2017 ended on October 17.
It’s for the first time that the policy would focus on providing employment generation subsidy to units that employ people having Punjab domicile.
Those employing Punjabis would be given Rs 36,000 annually per employee for five years and Rs 48,000 per employee on annual basis for five years in case the employee is a woman or belongs to the reserved categories.
Official sources in the government told The Tribune that the policy, with a primary focus on promoting manufacturing and services sector and creating an atmosphere for start-ups and incubators, would focus on development of sustainable business models that can withstand competition globally.
The policy would aim to attract an investment of Rs 5 lakh crore in five years, increase the share of secondary sector in GSDP to 30 per cent and tertiary sector to 62 per cent, enable job creation, develop worldclass infrastructure, facilitate the development of at least 15 industrial parks and attract at least one anchor unit in manufacturing and services sector.
Since the government wants to focus on building entrepreneurship and encourage start-ups, there would be subsidy on fixed capital investments, operational subsidy assistance of up to Rs 3 lakh for five years, mentoring assistance support for start-ups, lease rental subsidy, interest subsidy of eight per cent on loans taken from banks and a creation of Rs 150 crore venture capital fund.
For Micro, Small and Medium Enterprise (MSMEs) and large scale industries, the government would reimburse state goods and services tax for seven years, give a 50 per cent on fixed capital investment, exemption from electricity duty and stamp duty, subsidy on applying for patents and subsidy for getting access to technology.
The policy has identified certain thrust sectors, incuding electronics, food processing, apparel, IT and ITES. These sectors would also get above mentioned incentives, besides a slew of incentives for food processing industry.
With short-term targets to attract investment, early bird incentives may also be offered. Since many industrial units turned sick, a special package would be brought out, including deferment of various state taxes and duties.
Interestingly, the government has also come up with incentives for those setting up industry in the border zone (30 km from the International Border) and in Kandi area. Those willing to set up industry here would not need to get change of land use, 100 per cent exemption from external development charges and 75 per cent exemption from all state duties.
Certain industries —manufacturing of alcoholic products, tobacco, brick and tile kilns that do not use fly ash, manufacturing of vanaspati ghee and rice shelling units — feature in the negative list and would not get any incentives.
Major push
Govt to focus on facilitating 1000 start-ups in five yearsTo set up 10 incubation amp; 50 entrepreneurship centresFifteen industrial parks to come up across the stateLand pooling scheme for acquisition of land