Punjab to give fiscal incentives to units incl distilleries in border areas

The Punjab government in its new industrial policy has given fiscal incentives to the first manufacturing unit of different sectors in border districts and has pruned the negative list of industries for such areas to include distilleries for concessions, according to sources and official notification.

In first of its kind, the Detailed Schemes and Operational Guidelines, 2018, for availing fiscal incentives under the Industrial and Business Development Policy provides for fiscal incentives for units set up within 30-km of the international boundary, a move that industry sources said will put other units in the state, particularly distilleries, at a heavy disadvantage.

"No CLU (change of land use charges) will be required for units set up in Border Zone and 100 per cent exemption from External Development Charges (EDC) to these units," the Policy said.

"The first unit which comes into commercial production for each sector of manufacturing and service industry with minimum FCI (fixed capital investment) of Rs 100 crore would be entitled to 40 per cent additional FCI in the maximum limit prescribed for net State-GST (SGST)."