STATE
POLICIES

INDUSTRIAL POLICY - 2003
SALIENT FEATURES

  1. Objectives

    • To create a conducive investment climate through infrastructure creation, reduced regulations and general facilitation.
    • To rejuvenate and make competitive existing industry, particularly in the small scale sector through improved technology, product quality and marketing.
    • To create a special thrust in the areas where Punjab has an edge in terms of cost and competitiveness.

  2. Main Planks

    • Hassle Free Dealing with government
    • Power Sector Reforms
    • One Time Settlement Schemes
    • Revamping of Tax Administration
    • Enhancement of Competitiveness of Existing Industry
    • Revival of Sick Small Scale Industrial Units
    • Redefining role of PSIDC, PFC and PSIEC
    • Measures for attracting new investments

  3. Hassle Free Dealing with Government:

    3.1  Optional Scheme for Certification/Inspection/Verification by Chartered Engineers in place of government inspectors for:

    • Boilers under the Indian Boilers Act 1923.
    • Weights and measures under the Standards of Weights & Measures (Enforcement) Act 1985.
    • Electrical installations exclusively relating to Industrial Units under Indian Electricity Rules, 1956.
    • Industrial units for grant of consent to operate under the Water (Prevention & Control of Pollution) Act, 1974, Air (Prevention & Control of Pollution) Act, 1981.
    • Self Certification Scheme relating to various Acts of the Department of Labour & Employment.


    3.2  Measures for smooth movement of Industrial goods to ensure market driven rates instead of being dictated by truck unions.

    3.3  Monitoring Committees

    • State Level Monitoring committee headed by Industries & Commerce Minister to oversee the implementation of Industrial Policy
    • State Level Monitoring Committee headed by Chief Secretary to monitor sanction/clearances from the environmental, locational and other aspects.
    • District Level Monitoring Committee headed by Deputy Commissioner to monitor the grant of sanctions/clearances in a time bound manner.

  4. Power Sector Reforms

    • Generation of power for captive use to be freely allowed.
    • Electricity duty exemption for captive power generated for self use.
    • Captive power plants set up jointly by Industrial Units through SPV to be allowed for self use by same units.
    • Import of bulk power from any source to be allowed on terms and conditions approved by PERC/CERC.
    • No prior permission for DG sets upt 10 KW as stand by source of supply.
    • Units of a company having single balance sheet to be allowed use of captive power, even if located at a distance.
    • Uniform rate of Rs. 50 per KVA instead of two slab permission fee for installation of CP/Co-Generation.
    • Monthly parallel operation charges for CPP/Co-generation shall be @ Rs. 200 per KVA on 5% of the installation capacity of TG set instead of 7.1/2%.
    • Minimum installed capacity prescribed as 1MVA removed thereby allowing any capacity of the plant as CPP.

  5. One Time Settlement Scheme

    • PSIDC and PFC to extend liberal OTS

  6. Revamping of Tax Administration

    • Introduction of VAT w.e.f. 1.4.2003.
    • Under VAT all units to be eligible for input tax credit.
    • Discontinuation of form ST - XXIV and ST - XXIV - A by introducing one statutory declaration form ST - XXXVI.
    • Replacement of octroi and entry tax with a single point Local Area Development Tax (LADT) which will be online transferred to the Local Bodies. Any shortfall in revenue due to this to be compensated by State Government for two years.

  7. Enhancement of competitiveness of the existing industry

    • Capital subsidy to the extent of 25% of FCI upto Rs. 25 lac per unit to be provided to existing small scale units in the fields of light engineering, textile, hosiery, knitwear, sports goods, agro and food processing industries. Scheme will be operative during the tenth five year plan and budgetary allocation upto Rs. 25 crore will be made.
    • Freight subsidy to the extent of 1% of the exprort value of the goods. Budgetary allocation of Rs. 50 crore per annum will be made.
    • Centre for competitiveness to be set up with CII. Allocation of Rs. 1 crore made by Punjab Government.

  8. Revival of Sick Small Scale Industrial Units

    • State Level Industrial Revival Forum headed by Principal Secretary Industries & Commerce to be set up.

      Following concessions can be granted:

      • Deferent of recovery of arrears of Sales tax, Purchase tax, Electricity duty, Power bills, House Tax, Building tax.
      • Exemption from power cuts and minimum charges during closure period.
      • Permission for sale of surplus land.
      • Permission for retrenchment/layoff.
      • Reduction of interest on delayed payment to PSEB to 12%.
      • 20% of revival cost to be shared by the owner.

  9. Redefining Role of PSIDC, PFC and PSIEC

    • Re-capitalisation of PSIDC and PFC for their future roles.
    • Infrastructure Development, one stop banking, venture funding, one window facilitation under one roof.
    • Disinvestment in the joint/assisted sector and direct subscription companies through an attractive one time policy providing single tier 10% simple rate of interest. With option to pay 10% amount at initial stage and balance in 60 days with 10% on interest or in 120 days with 5% rebate or beyond 120 days with no rebate. The rate of interest will be 8% in Border Districts.

  10. Infrastructure Development:

    • Private sector investment to be attracted for creating adequate infrastructure.
    • Operation and maintenance of Industrial Parks through SPVs.
    • Assistance to be availed from central government for :

      • Special Economic Zone
      • Apparel Parks
      • Cluster Development for Machine tools at Batala Bicycle & parts at Ludhiana, Re-rolling steel mills at Gobindgarh.
      • Textile centers infrastructure development.

    • Private Sector Investment in Development of Industrial Parks/Estates/Agro Parks/IT Parks

      • Exemption from the Punjab Apartment and Property Regulation Act 1995.
      • No Stamp Duty on first sale/transfer of developed infrastructure by the developer.

    • Development of Multiplex Complexes

      • Multiplex complexes set up in area of 4000 sq. yd. with minimum investment of Rs. 20 Crore to be given status of industry.
      • Licensees to be free to fix rate of admission.
      • 100% exemption for first five years from Entertainment Tax.
      • Existing cinema Hall converted into multiplex complex also to be entitled to 100% exemption for first five years.
      • No transfer fee except stamp duty leviable on first sale of shopping area.

  11. Measures for attracting new investment

    • Empowered Committee headed by Chief Minister to consider special package of incentive for projects of special significance. FCI limits for such projects to be increased from Rs. 25 Crore to Rs.100 crore and above (except in Border Districts where this limit will be Rs.25 crore).
    • Capital subsidy @ 30% of FCI upto maximum of Rs. 30 lac per unit to be provided to industrial units in border districts. Allocation upto Rs. 25 crore to be made.


    11.1  Development of Sugar Industry

    • Automatic clearance to sugar mills for co-generation of power, manufacture of ethanol and setting up of distilleries.
    • Wheeling of surplus power to other industries/PSEB to be allowed.


    11.2  Development of Agro & Food Processing Industries through Concessions like-

    • No market fee and rural tax on commodities other than wheat and paddy.
    • Market fee and RD cess to be waived for integrated paddy processing plant with FCI of Rs.30 crore and above.
    • Direct purchase of agricultural products from farmers.
    • Sales Tax on packaging materials at minimum floor level.
    • Input tax credit for all units except wheat and paddy where this facility will be for units with FCI of atleast Rs.50 crore.


    11.3   Development of IT & IT Enabled Services, Electronics Industries, Knowledge Parks & Biotechnology through Special Package including:

    • Sales Tax rates on IT & BT products at minimum floor level.
    • No Octroi on IT, ITS, Electronics and Biotech items.
    • Permission to install Electric Power Transformer upto 10 KVA without locational restrictions.
    • Electricity Duty exemption for 5 years.
    • Exemption from power cuts.
    • Exemption from Stamp Duty for 3 years.
    • Exemption from Land & Building Tax.
    • General Permission to operate in three shifts and also to employ the ladies staff.
    • Relaxation of Floor Spacing Index (FSI) in towns to the extent of 50%

For Details   http://punjabgovt.nic.in/ind policy.htm