Punjab industrial policy focuses on IT, agri sectors

Punjab released the new Industrial Policy-2009 by giving special impetus to IT/ITES, agro and knowledge-based industries to attract new investments.

The new industrial policy has been drafted by seeking suggestions from United Nations Industrial Development Organization (UNIDO). It may be recalled that the state government had formulated industrial policies in 1978, 1982, 1989, 1992, 1996 and last industrial policy of Punjab was notified in March, 2003.

According to Punjab Industries and Commerce Minister, Manoranjan Kalia the thrust of the new industrial policy-2009 would be to facilitate potential investors to attract investment in the private sector and under the PPP mode, create Dedicated Fund for the development clusters, Common Facilities Centres and providing infrastructure support under the initiatives of Centre and state government.

It is also to focus on revival of sick industry by way of One Time Settlement Scheme and to provide mechanism for debt restructuring and to address and take care of environmental issues.

In an interaction, with Business Standard, Kalia said, “To attract new investments, anchor units having scope for ancillary would be given concessions on case to case basis. Also, approval for change of land use from agriculture to industry would not be required. Besides, the industrial component of Industrial Park would be exempted from CLUE charges and license fee.”

The concessions given to IT/TIES Industry includes exemption from stamp duty and registration fee for land transfer/allotted by PICTCL(Punjab Information & Communication Technology Corporation Ltd.), 100 per cent stamp duty reimbursement on land acquired by developer for building IT park or IT units developing their own campuses, Capital subsidy @20 per cent of fixed capital investment in the project, subject to ceiling of Rs. 20 lakh to be given to first ten SME units in IT Park notified by PICTC etc. Also, as per the policy IT units can be set up in Residential, Commercial, Institutional, Industrial or Agriculture Use Zone notified under the master plan. Further, VAT on all IT products rationalized to be at par with the minimum floor rate of 4 %.

In order to develop the agro sector, the policy has made provision of interest subsidy at 5 per cent for 5 years on the interest on term loan subject to ceiling of Rs. 20 lakh per year per unit to agro-industrial units, agri-infrastructure projects and also to existing small/medium agro-industrial units for modernisation, assistance for preparation of detailed project report and for patent registration in agro-industries up to 50 per cent etc. Also, the CLU charges would be waived off while EDC charges are to be reviewed, VAT and other taxed/levies would be rationalised etc.

Also, the government has made a dedicated fund of Rs. 150 crore per annum for creation and upgradation of industrial infrastructure and for contribution as state share in Central schemes like cluster development, common facility centres, R&D marketing etc. In addition, the policy also made provision for setting up land banks to develop industrial areas for relocating existing industries from residential areas to be created.