Investment Climate in Punjab

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10Annexure : PoliciesIndustrial Policy 2009 16The New Industrial Policy 2009 aims at infrastructure development, lesser number of regulations and speedy clearance of new projects.The key initiatives under this policy include:• State-level monitoring committees set up to oversee the implementation of the industrial policy in a time-bound manner• Easy and quick clearance for projects through one-time settlement schemes and Udyog Sahayak• Constitution of the empowered committee to grant special privileges for projects of significance• Special incentives for industries proposed to be set up in border areas• Infrastructure development through private sector participation by setting up Special Purpose Vehicles (SPVs), exemption toprivate investors from the Punjab Apartment and Property Regulation Act 1995, and exemption from payment of stamp duty onthe first sale/ transfer of developed infrastructure by the developer• Power sector reforms, including permission for power generation for captive use, use of non-conventional sources of energy,electricity duty exemption for captive power generated for self-use• Implementation of VAT and replacement of octroi and entry tax with a single point local area development tax• Enhancement of competitiveness of existing industrial units through capital subsidy and freight subsidy• Automatic clearance for sugar industry units for co-power generation, setting up of distilleries and sale of power to other industries• Revival of sick industrial units through various subsidies• Incentives to agro-based industries like permission for direct purchase of agricultural products from farmers, minimal sales tax onpackaging materials, no market fee and rural tax on commodities other than wheat and paddy.Agro Industrial Policy 2009 17Agro Industrial Policy 2009 aims to explore the vast untapped potential in agro industrial sector and make Punjab, the destination ofchoice for investors and processors, both global and domestic.Key features of the policy include:• To increase the flow of investments in agriculture and agro industries so as to establish backward and forward linkages• To accelerate a close interface between research, extension mechanisms, industry, farmers, markets and consumers• To increase value addition thereby increasing income of farmers, traders and delivering better quality products to consumers• To create modern supply-chain infrastructure needed for agro industrial development and marketing of agri produce• To create employment opportunities, thus, improving the quality of life• To assist small-scale agro based units to remain competitive in a globalized market• To increase export of fruit and vegetables and value added agri products• 5 percent back ended subsidy for 5 years on the interest on term loan subject to a ceiling of Rs 2 million per year per unit i.e.maximum of Rs 10 million in five years, will be provided subject to the conditions specified• Interest subsidy will be available to agro industrial units making fixed capital investment ranging from Rs 100 million to less than Rs250 million and availing term loan upto Rs 150 million. The cost of land for the computation of fixed capital investment will not bemore than 20 percent of fixed capita.16http://pbindustries.gov.in/pdf/Industrial_Policy_2009__48%20-%2006%20Oct2009.pdf17http://pbindustries.gov.in/pdf/Industrial_Policy_2009__48%20-%2006%20Oct2009.pdf ; The policy is a partof Industrial Policy 2009
11IT/Knowledge Industry Policy 2009 18The Information Technology & Knowledge Industry Policy 2009 endeavours to delineate a strategy for harnessing the opportunitiesand the resources offered by the Information Technology and Knowledge Industry for the comprehensive social and economicdevelopment of the state of the IT policy.Key features include:• IT and other knowledge units notified by PICTCL will be exempt from the purview of the Punjab Pollution Control Board (PPCB) oncompliance of basic minimum norms/standards defined by PPCB for green industries• VAT on all IT products rationalized to be at par with minimum floor rate of 4 percent• No stamp duty and registration fee will be levied in respect of land allotted by PICTCL to the IT Parks/units• IT Units/Parks will have permissible FAR of 300 percent on gross area of the project• Power would be available to IT units/knowledge industrial units at industrial tariff irrespective of their location/zoning• IT/Knowledge Industry Parks shall be exempted from the Punjab Apartment and Property Regulation Act (PAPRA) 1995, inaccordance with the power vested with the state government under Section 44 (2) of the Act• Special Incentives for mega projects - government may consider special package of incentives for all mega projects on a case-tocasebasis, based on the gestation period of projects, pioneering nature of projects, locational aspects, state-of-the-art technology,profitability, scope for further related investment etc. Empowered Committee, under the Chief Minister shall be competent toapprove the special package of incentives and modalities for the same• Special Incentives for Small and Medium Enterprise (SMEs) - Capital subsidy at 20 percent of fixed capital investment in a project,subject to ceiling of Rs 2 million, to be available to first 10 approved SME units in the IT Parks notified by PICTCL• Punjab Venture Capital Fund has been created by Government of Punjab with a corpus of Rs 200 million contributed by SIDBI andvarious state corporations. The fund has already mobilized contributions to the tune of Rs 50 million and the management of thefund is going to be entrusted to a private partner. The state government will contribute an additional sum of Rs 5 million to thecorpus.Eco Tourism Policy 2009 19Punjab is endowed with a very rich spectrum of landscapes, forests, wildlife, wetlands, community reserves, conservation reserves andcultural diversity. It is also home to several endangered species including the Indus Dolphin.The Government of Punjab has implemented Eco Tourism Policy 2009 to promote ecotourism in the state. It has been developed inharmony with the broad framework outlined in the Tourism Master Plan for the state. The focus of the policy is on conservation ofnatural resources through awareness building, diversification of tourism activities and destinations, and local community participationand synergy with general development of the tourism sector. This policy is aimed at informing and sensitising the general public andrelated government departments towards ecotourism and laying down the framework for its growth in the state in an environmentally,socially and economically sustainable manner.Key features include:• Building environmental and cultural awareness and respect and provide positive experience for both visitors and hosts• Ecotourism would involve a selective approach, scientific planning, effective control and continuous monitoring• It should be planned as part of the overall area development strategy guided by an integrated land-use plan and associated withcommensurate expansion of public services• Emphasis will be given to actively involve local communities and enhance their economic conditions• The type and scale of tourism development should be compatible with the environment and socio-cultural characteristics of thelocal communities and would lead to sustainable development of the area• Only activities and facilities having least impact on the natural resources and the local culture to be permitted. Preference should begiven to use the already existing infrastructural facilities available in the area rather that creating a new one• Adhering to the principles of carrying capacity to avoid overuse of natural resources18www.punjabinfotech.org, The policy is a part of Industrial Policy 200919punjabtourism.gov.in/Punjab%20Eco-tourism%20Policy%202009.rtf
Page 3: Investment Climate inPunjab
Page 6 and 7: EXECUTIVE SUMMARYKnown as the land
Page 8 and 9: 2Punjab, primarily an agrarian econ
Page 10 and 11: 4RoadsThe state has an excellent ne
Page 12 and 13: 6Ludhiana, Jalandhar, Amritsar, Man
Page 14 and 15: 8Single Window Clearance Mechanism
Page 18 and 19: 12• Capacity building of local co
Page 20: 14AboutKPMG IN INDIAKPMG is a globa

Investment Climate in Punjab

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