Punjab cabinet approves guidelines for incentives under industrial policy

For the effective implementation of the new industrial policy, the Punjab Cabinet led by Chief Minister Amarinder Singh today approved operational guidelines for availing fiscal incentives under it.

The operational guidelines have been framed after a series of brainstorming sessions with stakeholders, an official spokesperson said after the cabinet meeting.

The operational guidelines approved today include schemes for exemption from payment of stamp duty or reimbursement thereof to the industrial units, besides approving a scheme for exemption from CLU/EDC as per given guidelines, he said.

The cabinet also approved guidelines for grant of exemption from payment of electricity duty, property tax and approving another scheme for investment subsidy by way of reimbursement of VAT/SGST, he said.

Operational guidelines have been also finalised for providing fiscal incentives, interest subsidy to MSMEs, he said.

The spokesperson said categorisation of units in start-ups, MSMEs and large and anchor units has also been finalised under the operational guidelines.

He said fiscal incentives for micro, small and medium enterprises (MSMEs) would be sanctioned at district level whereas the incentive to large units would be sanctioned at state level.

To facilitate the easy disbursal of incentives, an on-line portal has already been set up, he said.

To encourage innovation by MSMEs, the policy guidelines contain schemes including additional state support for technology updation for MSMEs, and assistance for technology acquisition of MSMEs, he said.

The MSMEs have been incentivised by giving them support in Zero Effect Zero Defect (SED) scheme of the Government of India, besides reimbursement of expenses incurred on the energy audit, water audit, safety audit and expenses for environment compliance, he said.

To encourage these units in research and development activities, guidelines have also been framed for reimbursement of expenses incurred on patent registration, quality certification, besides additional support for Performance and Credit Rating Scheme, he said.

To provide marketing support to MSMEs, the cabinet also approved a Freight Assistance Scheme for export from MSMEs, besides finalising a scheme for providing fiscal incentives to incubators in the public and private sector, he said.

Focusing on Information Technology (IT) sector and start-ups, the cabinet has finalised operational guidelines for providing them incentives, capital subsidy to IT/ITES units and employment generation subsidy to anchor units, he said.