Punjab govt to announce its new Agro Industrial Policy-2009

The Punjab government would soon announce its new Agro Industrial Policy-2009 which would be implemented through its nodal agency – Punjab Agro Industries Corporation Ltd (PAIC) to achieve the goal of rapid industrialisation in the field of agriculture and agro-processing.

The proposed industrial policy envisages a component of interest subsidy to agro industrial units making fixed capital investment from Rs 10 crore to less than Rs 25 crore at 5 per cent back ended interest subsidy i.e. Rs 20 lac per unit per year not more than Re 1 crore in five years, for 5 units per year totaling Rs 25 crore for 9 years on specified conditions.

Likewise, agri-infrastructure projects and small/medium agro industrial units for modernisation and technology up-gradation would also be entitled for the same interest subsidy as in the case of agro industrial units.

Disclosing this here today a spokesperson of the Punjab government today said that the proposed agro policy would be including financial assistance for setting up Centres of Excellence, preparation of Detailed Project Report (DPR), patent registration, international food standards/global gap certification besides back ended interest subsidy.

Under the proposed agro policy, Punjab Agri Export Corporation Ltd (PAGREXCO) would continue to provide subsidy for distant domestic marketing and export of flowers, fruits & vegetables and import of planting material.

However, the existing concession under industrial policy, 2003 regarding exemption of market fee on wheat would be retained.

All agro processing units would be allowed to purchase agricultural products directly from the farmers. VAT, Rural Development Fund, Market Development Fund, Infrastructure Development Cess and other taxes/levies would be rationalised and Change in Land Use (CLU) charges would be waived off while External Development Charges would be reviewed in the proposed new agro-policy.

Outlining the action plan for promotion of agro processing industries during 2009-10, the spokesperson mentioned that the state government had initiated dialogue with the province of Manitoba in Canada for setting up of a joint task force to explore new avenues of investment in agriculture sector in Punjab.

The State of Manitoba has offered to facilitate setting up of a Centre of Excellence for development of Food Processing Technologies in Punjab on the lines of the Food Development Centre set up in Manitoba.