Industrial and Business Development Policy 2017 Page 1 of 121 Industrial and Business Development Policy 2017 (Amended upto 23-08-2021) Department of Industries and Commerce Government of Punjab Industrial and Business Development Policy 2017 Page 2 of 121 Industrial and Business Development Policy 2017 Page 3 of 121 Message
1. Punjab stands at the cusp of major transformation with a slew of policies on the anvil to accelerate social and economic development of the State. The policies aim at overcoming the constraints and challenges being faced by the State in various sectors such as agriculture, infrastructure, real estate, education, industry and trade and building on the strengths of the State in these sectors.
2. The Industrial and Business Development Policy 2017 is part of the vision to put the State back on high trajectory of growth and prosperity. The new Policy is a holistic framework for sustainable industrial growth of the State. The policy is architected around eight core strategic pillars of Infrastructure, Power, MSME, Ease of Doing Business, Startup & Entrepreneurship, Skills, Fiscal & Non-Fiscal Incentives and Stakeholder Engagement supported by Sector Specific Strategies for growth.
3. The Policy marks a decisive shift from department centric approach to a business centric approach. The State will realign and restructure various Government institutions in line with the framework of the policy. Building on the success of Invest Punjab, a unified regulator providing services of 21 departments and agencies under one office, the policy envisages to cover all the services throughout the business lifecycle to the existing as well as new investors through one stop digital platform namely Invest Punjab - BusinessFirst.
4. I am sure that the policy will boost industrial activities in the State in a big way and lay the foundation for long term sustainable growth of Punjab’s Industry and Businesses creating ample entrepreneurial opportunities and jobs for State’s youth.
Captain Amarinder Singh, Chief Minister Punjab Industrial and Business Development Policy 2017 Page 4 of 121 Table of Contents Chapter 1: Introduction ................................................................................................................ 13
1.1. Punjab – a Progressive State .......................................................................................... 13
1.2. Punjab – a Strong Agriculture base ................................................................................ 13
1.3. Punjab’s Industrial landscape – MSMEs, the backbone of Industry .............................. 13
1.4. Industrial and Business Development Policy 2017 – A new paradigm .......................... 13
1.5. Applicability of the Policy ............................................................................................... 14 Chapter 2: Vision, Mission and Goals .......................................................................................... 15
2.1. Vision .............................................................................................................................. 15
2.2. Mission ............................................................................................................................ 15
2.3. Goals ............................................................................................................................... 15 Chapter 3: Key Strategic Pillars .................................................................................................... 18
3.1. Eight Core Strategic Pillars .............................................................................................. 18
3.2. Infrastructure .................................................................................................................. 18
3.3. Power .............................................................................................................................. 18
3.4. Micro, Small and Medium Enterprises ........................................................................... 18
3.5. Startup and Entrepreneurship ........................................................................................ 18
3.6. Skill Development ........................................................................................................... 19
3.7. Ease of Doing Business ................................................................................................... 19
3.8. Fiscal and Non-Fiscal Incentives ..................................................................................... 19
3.9. Stakeholder Engagement ................................................................................................ 19 Chapter 4: Infrastructure ............................................................................................................. 21
4.1. Industrial Infrastructure – Key to the Growth of Industries ........................................... 21
4.2. Setting up of Punjab Industrial and Business Development Authority .......................... 21
4.3. Development of New Industrial Parks and Industrial Land Banks ................................. 21
4.4. Development of Integrated Industrial Townships .......................................................... 22
4.5. Development along Industrial Urban Corridors ............................................................. 23
4.6. Core, Support and Social Infrastructure to be provided in Industrial Estates ............... 24
4.7. Common Environment Infrastructure ............................................................................ 25 Industrial and Business Development Policy 2017 Page 5 of 121
4.8. Maintenance of Industrial Parks ..................................................................................... 26
4.9. Estate Management ....................................................................................................... 27 Chapter 5: Power .......................................................................................................................... 30
5.1. Punjab – Robust Power Infrastructure ........................................................................... 30
5.2. Uninterrupted and Quality Power .................................................................................. 30
5.3. Power at affordable and fixed tariff for 5 years ............................................................. 30
5.4. Up-gradation of power infrastructure to industrial areas .............................................. 30
5.5. Business Friendly Policies by PSPCL ................................................................................ 30
5.6. Stand by Support to Captive Generators/ Users ............................................................ 30 Chapter 6: MSME Development .................................................................................................. 32
6.1. MSME Sector – Engine for socio economic growth and employment generation ........ 32
6.2. State’s approach to MSME sector development ............................................................ 32
6.3. Setting up of ‘MSME Punjab’ .......................................................................................... 32
6.4. Setting up of District Level Single Window System for MSME units .............................. 33
6.5. MSME Cluster Identification ........................................................................................... 33
6.6. MSME Cluster Development Programs .......................................................................... 34
6.7. Access to Technology for MSMEs ................................................................................... 34
6.8. Access to Markets for MSMEs ........................................................................................ 35
6.9. Access to Infrastructure for MSMEs ............................................................................... 35
6.10. Access to Finance for MSMEs ......................................................................................... 36
6.11. Growth Accelerator Services for MSMEs........................................................................ 36
6.12. Common Environment Infrastructure in MSME clusters ............................................... 36
6.13. Revival and Rehabilitation of Sick MSME units .............................................................. 37
6.14. MSE facilitation councils at district level ........................................................................ 37 Chapter 7: Startup & Entrepreneurship ...................................................................................... 38
7.1. State’s approach to Innovation and Entrepreneurship .................................................. 38
7.2. Startup Punjab - Building a Strong Eco-system for Startups .......................................... 38
7.3. University and College Incubators .................................................................................. 38
7.4. IKG PTU to set up Fund for Startup ................................................................................ 39 Industrial and Business Development Policy 2017 Page 6 of 121
7.5. Incubation Centres by other Government Organizations .............................................. 39
7.6. Private Incubators and Accelerators .............................................................................. 39
7.7. Setting up of sector specific incubators ......................................................................... 39
7.8. Creation of common infrastructure and co-working spaces .......................................... 39
7.9. Special Focus on Women Entrepreneurship .................................................................. 40
7.10. Special Focus on SC Entrepreneurship ........................................................................... 40 Chapter 8: Skill Development ...................................................................................................... 41
8.1. Punjab Skill Development Mission – Nodal agency for Skill Development .................... 41
8.2. Identifying the Skill Gap in various clusters .................................................................... 41
8.3. Convergence of various skill development schemes ...................................................... 41
8.4. Setting up of University of Skills and Vocational Education ........................................... 41
8.5. Setting up of new Multi Skill Development Centres ...................................................... 41
8.6. Setting up of cluster specific Skill Development Centres ............................................... 41
8.7. Skill Training by large employers .................................................................................... 42
8.8. Skill Registry .................................................................................................................... 42 Chapter 9: Ease of Doing Business ............................................................................................... 43
9.1. Invest Punjab .................................................................................................................. 43
9.2. International Desk .......................................................................................................... 43
9.3. Business First .................................................................................................................. 43
9.4. Reforms in the processes of core departments providing services to Industries .......... 44
9.5. Deemed Approval for various Regulatory Clearances .................................................... 44
9.6. Reforms related to land and buildings ........................................................................... 44
9.7. Reforms in granting Utility Permits ................................................................................ 45
9.8. Reforms in Environment Regulations ............................................................................. 46
9.9. Reforms in Labour Regulations ....................................................................................... 46
9.10. Central Inspection System .............................................................................................. 47
9.11. Strengthening of Third Party Certification ..................................................................... 48
9.12. Additional services under Punjab Right to Service Act (RTS) ......................................... 48 Chapter 10: Fiscal Incentives ....................................................................................................... 49 Industrial and Business Development Policy 2017 Page 7 of 121
10.1. General Provision ............................................................................................................ 49
10.2. Incentives to Existing Units for Expansion, Diversification and Modernisation ............. 49
10.3. Freezing of Power Tariff for five years ........................................................................... 49
10.4. Framework for Fiscal Incentives and other support measures ...................................... 49
10.5. Categorization of units in Startup, MSME and Large units ............................................ 50
10.6. Thrust Sectors of the State ............................................................................................. 51
10.7. Fiscal incentives for Startup Units .................................................................................. 52
10.8. Fiscal incentives for MSME units .................................................................................... 54
10.9. Fiscal incentives for Large Units ..................................................................................... 56
10.10. Fiscal incentives for Units in Thrust Sectors ................................................................... 57
10.11. Fiscal Incentives for Anchor Units .................................................................................. 58
10.12. Special incentives for 10 Early Bird Units in the new Industrial Parks approved by the State ................................................................................................................................ 60
10.13. Support for Infrastructure Related Schemes .................................................................. 60
10.14. Reduction in Stamp Duty for industrial units on registered mortgage .......................... 61
10.15. One Time Settlement (OTS) Policy for dues of PSIDC, PFC and PAIC ............................. 61
10.16. Special Relief package for Sick MSME Units ................................................................... 61
10.17. One Time Special Relief Package for Sick Large Units .................................................... 62
10.17.3. Fiscal incentive for acquisition of sick units and revival thereof ............................ 63
10.18. Interest Waiver Scheme ................................................................................................. 63
10.19. Special Incentives for Border Zone ................................................................................. 64
10.20. Incentive for products not covered under GST regime .................................................. 64
10.21. Negative List of Industries .............................................................................................. 64
10.22. Sun Set Clause and Transition from FIIP(R) 2013 ........................................................... 65
10.23. Exclusions in the exemption from Electricity Duty and Stamp Duty .............................. 65
10.24. Fiscal Incentives to Industrial Parks ................................................................................ 66
11.1. General Provision ............................................................................................................ 67
11.2. Department of Housing and Urban Development ......................................................... 67
11.3. Department of Labour .................................................................................................... 69 Industrial and Business Development Policy 2017 Page 8 of 121
11.4. Department of Science and Technology/Punjab Pollution Control Board ..................... 69
11.5. Department of Transport ............................................................................................... 70
11.6. Department of Food and Civil Supplies .......................................................................... 70
11.7. Department of Industries& Commerce/Punjab Small Industries & Export Corporation 70 Chapter 12: Stakeholder Engagement and Policy Implementation Unit ................................... 71
12.1. Stakeholder Engagement ................................................................................................ 71
12.2. Strategic Plan and Performance Indicators .................................................................... 71
12.3. Policy Implementation Unit ............................................................................................ 71
12.4. Governance Mechanism for Implementation of the Policy ........................................... 73 Chapter 13: Sector Specific Strategies ......................................................................................... 76
13.1. Focus on traditional strength as well as emerging sectors ............................................ 76
13.2. Manufacturing ................................................................................................................ 76
13.3. Services ........................................................................................................................... 76 Annexure – A: Sectoral Strategies for Manufacturing Industries .............................................. 78 Annexure – B: Sectoral Strategies for Service Industries......................................................... 100 Industrial and Business Development Policy 2017 Page 9 of 121 List of Acronyms ABPF Agri Business Promotion Facility AIF Alternate Investment Fund AKIC Amritsar Kolkata Industrial Corridor AVGC Animation, Visual Effects, Gaming & Comics CAP Corrective Action Plan CETP Common Effluent Treatment Plant CFC Common Facility Centre CFS Container Freight station CGST Central Goods and Services Tax CGTMSE Credit Guarantee Trust for Micro and Small Enterprises CIAB Centre of Innovative & Applied Bioprocessing CIIDS Critical Industrial Infrastructure Development Scheme CLCSS Credit Linked Capital Subsidy Scheme CLU Change of land use CNC Computerized Numerical Control CST Central Sales Tax DEITY Department of Electronics& Information Technology DIPP Department of Industrial Policy and Promotion EBZ Extreme Border Zone ECS Equated Car Space EDC External Development Charges EDC Entrepreneurship Development Centre EDFC Eastern Dedicated Freight Corridor EOU Export Oriented Unit ESDM Electronic System Design and Manufacturing FAR Floor Area Ratio FCI Fixed Capital Investment Industrial and Business Development Policy 2017 Page 10 of 121 FDDI Footwear Design & Development Institute FIIP(R) 2013 Fiscal Incentives for Industrial Promotion (Revised) 2013 FPO Farmer Producers Organizations GIS Geographic Information System GOI Government of India GPS Global Positioning System GSDP Gross state Domestic Product HR Human Resources IBFSN Integrated business facilitation services network IDC Industrial Development Centre ICD Inland Container Depot IGST Integrated Goods and Services Tax IIDS Industrial Infrastructure Development Scheme IIT Indian Institute of Technology ILDP Integrated Leather Development Programme IPDS Integrated Processing Development Scheme IPR Intellectual Property Rights ISB Indian School of Business IISER Indian Institute of Science Education and Research IT Information Technology ITES Information Technology Enabled Services KVAH Kilo Volt Ampere Hours MEITY Ministry of Electronics and Information Technology MOFPI Ministry of Food Processing Industries MRO Maintenance, Repair and Overhaul MSECDP Micro and Small Enterprises Cluster Development Program MSME Micro, Small and Medium Enterprise MSDC Multi Skill Development Centres Industrial and Business Development Policy 2017 Page 11 of 121 NABI National Agri-Food Biotechnology Institute NIIFT Northern India Institute of Fashion Technology NIPER National Institute of Pharmaceutical Education and Research NOC No Objection Certificate NRSE New and Renewable Sources of Energy NSE National Stock Exchange OTS One Time settlement PAPRA Punjab Apartment and Property Regulation Act (PAPRA) 1995 PBIP Punjab Bureau of Investment Promotion PBTI Punjab Biotechnology Incubator PFC Punjab Financial Corporation PIU Policy Implementation Unit PMA Preferential Market Access PPCB Punjab Pollution Control Board PPP Public Private Partnership PSU Public Sector Undertaking PICTC Punjab Information and Communication Technology Corporation Ltd.
PSAMB Punjab State Agricultural Marketing Board PSIDC Punjab State Industrial Development Corporation Ltd PSIEC Punjab Small Industries and Export Corporation PSPCL Punjab State Power Corporation Limited PIBDA Punjab Industrial and Business Development Authority QMC Quality Marking Centre QMS&QTT Quality Management Standards and Quality Technology Tools RCF Rail Coach Factory R&D Research and Development RG Recreation Ground area RTS Right to Service Act Industrial and Business Development Policy 2017 Page 12 of 121 SAC Site Appraisal Committee SEBI Securities and Exchange Board of India SC Scheduled Caste SGST State Goods & Service Tax SIDBI Small Industrial Development Bank of India SME Small & Medium Enterprise SPV Special Purpose Vehicle STPI Software Technology Parks of India TC Technology Center T&CPD Town and Country Planning Department TEQUP Technology and Quality Upgradation Scheme VAT Value Added Tax VMC Vertical Machining Centres VC Fund Venture Capital Fund ZED Zero Effect Zero Defect Chapter 1 - Introduction Industrial and Business Development Policy 2017 Page 13 of 121 Chapter 1: Introduction
1.1. Punjab – a Progressive State The State of Punjab is known for its leadership position in the country with rapid strides in all round growth and prosperity. The State has done remarkably well in sectors across the spectrum such as Agriculture, Industry, Health, Education, Sports, Arts, Literature and Culture. The State has excellent infrastructure, human capital, progressive and enterprising people, who can transform every potential opportunity into success. Punjabi diaspora is spread across the world and has carved out a niche for itself.
1.2. Punjab – a Strong Agriculture base
1.2.1. The State has done exceedingly well in Agriculture and has earned the epithet of “Granary of India”. Punjab is the highest contributor of wheat and rice to the central procurement pool.
Agriculture and allied services are one of the key strengths of the State. Punjab has highest per capita availability of milk which is almost four times higher than all India level. It is also the 2nd highest cotton and blended yarn producer in the country. Punjab has highest productivity of Kinnow, a citrus fruit in the country and highest production of honey in the country.
1.2.2. Agriculture, however, has limited potential to drive future economic growth of the State and it is the secondary and tertiary sectors, which will play an important role in future economic growth of the State and creation of jobs for its youth.
1.3. Punjab’s Industrial landscape – MSMEs, the backbone of Industry
1.3.1. Punjab has emerged as the leading hub for textile-based industries such as apparel manufacturing, spinning and hosiery exports. Further, engineering sector is a major contributor in the economy of Punjab. Over the last decade, it has grown more than 16%, and constitutes 23% of the total industrial output of Punjab.
1.3.2. The key strength of Punjab is its thriving eco-system of well-established Micro, Small and Medium enterprises. Punjab is home to approximately 1.6 lakh MSME units, which are one of the most important pillars of the industrial growth. Punjab’s industry is dominated by small and medium enterprises. It has a rich industrial base of MSME units belonging to Auto Components, Bicycle Parts, Hosiery, Sports Goods, Agricultural Implements and many others.
1.3.3. Punjab leads the Country in industrial growth for more than four decades till 1990s. The State has also given rise to some of the prominent industrial houses of the country.
1.4. Industrial and Business Development Policy 2017 – A new paradigm Chapter 1 - Introduction Industrial and Business Development Policy 2017 Page 14 of 121
1.4.1. The present policy ushers bold reforms, restructures institutions, and presents a holistic framework for sustainable industrial growth of the State. The policy is architected around eight core strategic pillars of Infrastructure, Power, MSME, Ease of Doing Business, Startup & Entrepreneurship, Skills, Fiscal& Non-Fiscal Incentives and Stakeholder Engagement supported by Sector Specific Strategies for growth. The policy gives a great thrust to the development of MSME sector. The policy also aims at promoting growth of service industries apart from the traditional manufacturing industries.
1.4.2. In true spirit of the cooperative federalism, the policy envisages substantial alignment and synergy with respective sectoral policies of the Central Government and would focus on optimum utilization of the same and further building upon it.
1.4.3. The policy envisages setting up of a Policy Implementation Unit to ensure necessary support for the implementation of various aspects of the policy.
1.5. Applicability of the Policy
1.5.1. The policy will be applicable for 5 years from the date of notification and can be extended further by the State. The policy may be amended and modified in the course of implementation, however, all such amendments and modifications shall be applied prospectively and shall not curtail any benefit or concession already granted under the policy.
1.5.2. The reference to the State in the Policy is reference to the State Government and its relevant departments and agencies as may be specified in the detailed schemes for the implementation of the Policy.
1.5.3. The definitions, standard operating procedures and other modalities for fiscal and non-fiscal incentives and other aspects of the policy will be given in the detailed schemes for the implementation of the Policy.
Chapter 2-Vision, Mission and Goals Industrial and Business Development Policy 2017 Page 15 of 121 Chapter 2: Vision, Mission and Goals
2.1. Vision To develop the State as one of the most economically developed States in the Country and make it the best State for doing business.
2.2. Mission
(i). To accelerate industrial growth and job creation
(ii). To develop world class infrastructure for the Industry
(iii). To provide quality and affordable power to the Industry
(iv). To accelerate growth of MSMEs
(v). To focus on Start-ups and Entrepreneurship
(vi). To facilitate availability of skilled manpower to the Industry
(vii). To improve the ease of doing business in the State
(viii). To build institutional capacity and enhance institutional linkages
(ix). To bring synergy between state programs and central schemes
2.3. Goals
2.3.1. To accelerate industrial growth and job creation
(i). To attract Rs. 5 lakh crore of investment in 5 years
(ii). To increase the Share of secondary sector in GSDP to 30% and tertiary sector to 62%
(iii). To enable Job Creation – At least one job per household to fulfil GharGharRozgaar Mission of the State
2.3.2. To develop world class infrastructure and bring anchor units
(i). To develop 4 industrial parks and 10 Industrial estates in 5 years
(ii). To attract at least one anchor unit in various manufacturing and service industry Sectors Chapter 2-Vision, Mission and Goals Industrial and Business Development Policy 2017 Page 16 of 121
2.3.3. To provide quality and affordable power to the Industry
(i). To provide power at affordable and fixed tariff for 5 years to the Industry
(ii). To upgrade power supply infrastructure to all the industrial areas to provide quality and uninterrupted power
2.3.4. To accelerate growth of MSMEs
(i). To carryout in depth study of 10 clusters every year for specific interventions to increase their competitiveness
(ii). To upgrade and set up common facility centres in 10 clusters every year
(iii). To upgrade and set up 10 Technology centres in the State
2.3.5. To focus on startup and entrepreneurship
(i). To facilitate 1000 start-ups in 5 years
(ii). To set up 10 incubation centres/ accelerators in the State particularly focusing on Digital manufacturing, Lifesciences (Biotechnology), Agro &Food Processing and Information Technology
(iii). To build strong linkages with all the major institutions
(iv). To facilitate 50 Entrepreneurship Development Centres in the colleges
2.3.6. To facilitate availability of skilled manpower for the industry
(i). To set up one Skill University in the State
(ii). To set up one Skill centre for each identified industrial cluster
(iii). To set up advance skilling on hi-tech manufacturing, design and IT skills for 5 identified sectors
2.3.7. To improve the ease of doing business in the State
(i). To be in top 5 States in the Country in ease of doing business in 3 years and top position in 5 years
(ii). To strengthen Invest Punjab initiative by setting up of BusinessFirst portal for a single unified interface to the Industry and Businesses for all regulatory and fiscal services throughout their lifecycle Chapter 2-Vision, Mission and Goals Industrial and Business Development Policy 2017 Page 17 of 121
(iii). To re-engineer the processes of 7 core departments on priority namely Industry, Power, Pollution Control, Labour, Housing & Urban Development, Local Department and Taxation to make them extremely simple, industry friendly and completely digital
2.3.8. To build institutional capacity and enhance institutional linkages
(i). To restructure existing entities and empower them through statutory powers to translate the vision and mission into reality
(ii). To set up a Policy Implementation Unit to support the implementation of various aspects of the policy and monitor the progress
(iii). To set up effective mechanism for talent acquisition for specialized projects, organizations and other initiatives
(iv). To set up effective mechanism for partnering with various national and international agencies and develop effective PPP model for infrastructure, technology support, skills and other requirements of the Industry
2.3.9. To bring synergy between state programs and central schemes
(i). To strengthen liaison office at Delhi with a strong team to liaison across the Central Ministries and Agencies to ensure that State draws benefits from all the relevant Central Schemes
(ii). To ensure optimum utilization of central schemes by respective departments and agencies of the State with support from Policy Implementation Unit Chapter 3: Key Strategic Pillars Industrial and Business Development Policy 2017 Page 18 of 121 Chapter 3: Key Strategic Pillars
3.1. Eight Core Strategic Pillars In order to provide a holistic support for the growth of existing industries as well as attracting new manufacturing and service industries, the State would focus on the right set of drivers and enablers to create a business friendly environment. The State has identified eight core strategic pillars for the growth and promotion of industries in the State
3.2. Infrastructure The State would develop quality industrial infrastructure with robust policies for its maintenance. The Industrial Parks and Industrial Estates would be brought under one agency and all the necessary amenities and common facilities will be provided in these estates. All the estate management policies will be simplified. The infrastructure development agency will be given statutory powers and suitably strengthened.
3.3. Power The State recognizes that power is one of the most crucial input for the industry. The State will accordingly make provision for quality, reliable and cost-effective power to give a great boost to the Industry. The State is power surplus today. The State will provide power to the Industry at affordable and fixed tariff for 5 years. This would benefit industries across a broad spectrum and will bring much needed respite to the industry. The State would utilise this period of five years to build a strong support system to enhance the productivity, efficiency and competitiveness of the Industry in the State.
3.4. Micro, Small and Medium Enterprises The State has a strong base of MSME units. MSMEs play a crucial role in providing large employment opportunities at comparatively lower capital cost. MSMEs also help in industrialization of rural & backward areas, thereby, reducing regional imbalances. The MSMEs in the State are facing a myriad of challenges. The State would build suitable capacity to focus on the development of MSMEs to make it a highly vibrant and dynamic sector.
3.5. Startup and Entrepreneurship Innovation and Entrepreneurship are crucial for future growth of State’s economy. The State would support cluster specific bottom up approach to build and strengthen Startup and Entrepreneurship ecosystem in the State. The State would follow an entrepreneur centric approach fostering connections and learning. The State will facilitate networking between entrepreneurs and entrepreneurship support organizations by bringing entrepreneurs together Chapter 3: Key Strategic Pillars Industrial and Business Development Policy 2017 Page 19 of 121 in an environment that catalyzes learning. The State would set up a dedicated organization for spearheading its strategy and action plan for promotion of Startup and Entrepreneurship.
3.6. Skill Development The State has already set up a State Skill Development Mission, which would be further strengthened. The State would ensure convergence of various skill training schemes to bring scale and synergy. The State is conscious of the dire need for the Industry to adopt next generation manufacturing to become globally competitive. Given high dependence on low skill labour, re-skilling or up-skilling of existing workforce will be required to make them ready for the new requirements. The State would set up cluster specific skill centres for various manufacturing sectors to ensure skilled workforce for the Industry. The State would also focus on employment generating service industry and train its youth for service industry. The State would strengthen industry institute interaction to enhance the employability of youth and would set up GharGharRozgar portal to connect skilled youth to the Industry.
3.7. Ease of Doing Business The State recognizes the utmost need for providing conducive environment to the industry and businesses in the State. The State would strengthen Invest Punjab initiative by setting up “Business First” portal to provide all regulatory services and fiscal incentives to the businesses through one common integrated platform and business friendly service delivery network. Each business will be given a unique identification. This will avoid supplying information to multiple web portals and creating multiple credentials. The State would set up District Bureau of Enterprise to provide a wide range of services to the industry. The State would reengineer the processes of seven core departments connected with Industrial development and growth so as to make them extremely simple and easy to follow.
3.8. Fiscal and Non-Fiscal Incentives The State would provide a variety of fiscal and non-fiscal incentives to support the growth of existing industries and to attract new investments. The policy provides strong support to MSMEs to enhance their access to Finance, Technology, Market, Infrastructure and other needs. The State has identified certain thrust sectors for growth and they have been provided higher incentives. Keeping in view the significance of Anchor investors, they have been offered special incentives in the policy. It has also given a package of incentives for revival of sick industries.
Extreme Border Zone has also been given special incentives. The policy provides a host of nonfiscal incentives to promote industrial growth.
3.9. Stakeholder Engagement Chapter 3: Key Strategic Pillars Industrial and Business Development Policy 2017 Page 20 of 121 Industrial growth and development requires engagement with a very diverse set of stakeholders. The Stakeholder Engagement will be a key essential for the success of the Policy.
The policy aims to identify key stakeholders from the State and Central government, Key Industry leaders and Industry Associations, private sector, academic institutions, civil society, as well as development agencies and foreign governments that would require continuous engagement. The policy suggests approaches on how to effectively engage them throughout the implementation of the Policy.
Chapter 4: Infrastructure Industrial and Business Development Policy 2017 Page 21 of 121 Chapter 4: Infrastructure
4.1. Industrial Infrastructure – Key to the Growth of Industries Industrial Infrastructure is one of the key mainstays in the long term development of the Industry. The Government aims to develop robust infrastructure including core and supporting infrastructure which shall provide long term benefits to the industry and set the State on the path of planned industrial growth. It is also the endeavour of the Government to simplify laws and rules for infrastructure development, management and maintenance through a single Industrial Infrastructure Development Agency in the State.
4.2. Setting up of Punjab Industrial and Business Development Authority
4.2.1. In order to streamline all the activities pertaining to Industrial Infrastructure development, maintenance and management, Punjab Small Industries and Export Corporation (PSIEC) needs to be strengthened and the State would set up Punjab Industrial and Business Development Authority (PIBDA), a statutory body to spearhead industrial development including industrial infrastructure in the State.
4.2.2. All Industrial estates, industrial parks, industrial focal points, industrial growth centres etc. (to be referred as Industrial Parks hereafter) developed by the Directorate of Industries (Punjab), Punjab Small Industries & Export Corporation (PSIEC), Punjab Infotech (PICTC) and Punjab Agro Industries Corporation and other such agencies shall be transferred to the Authority for development, management and maintenance.
4.2.3. The Authority shall be declared local authority for the purposes of maintaining various Industrial Parks and shall also be vested with the powers of Special Urban Planning and Development Authority and other powers under Punjab Regional and Town Planning and Development Act, 1995 for ensuring planned development of various designated industrial areas under the Master Plan of respective cities.
4.3. Development of New Industrial Parks and Industrial Land Banks
4.3.1. In order to provide impetus to rapid industrial growth, the State would develop new Industrial Parks, which shall have the best-in-class infrastructure. The State through the Authority will develop 4 major Industrial Parks and 10 other Industrial Parks covering general and sector specific requirements of various industrial sectors. The State would help identify and transfer various village common lands and unutilized government lands for being developed as Industrial Parks. In addition, the Authority will also keep a ready shelf of land bank, earmarked after their due feasibility is established, which can be offered to the Industries.
Chapter 4: Infrastructure Industrial and Business Development Policy 2017 Page 22 of 121
4.3.2. In order to reduce the upfront investment from the State in assembling and developing various land pockets, making projects viable and greater benefits to the stakeholders, the State would take following steps:
(i). The State will frame appropriate land pooling scheme for acquisition of land for industrial parks.
(ii). The State will frame appropriate scheme to develop Industrial Parks in partnership with land owners, where land is contributed by the land owners and the authority will bring expertise for development and marketing of the Park. This will be particularly helpful in case of village common lands and a revenue sharing arrangement with village panchayat will bring greater benefits to both village panchayat and the State.
(iii). In case of unutilized government lands, the same may be made available free of cost to the Authority for developing industrial parks.
(iv). The Authority would also mobilize upfront payments from the allottees to meet upfront cost of acquisition of land by allotting the lands with the finalization of layout plan and its approval by the competent authority.
(v). The land value in the area appreciates considerably due to setting up of industrial park at any location, the State would devise a scheme to share part of the increased stamp duty with the Authority.
(vi). In order to reduce the development cost, the State would avail the financial assistance and grants available for development of Mega Food Parks, ESDM Parks, Amritsar Kolkata Industrial Corridor development, Integrated Leather Park, MSME infrastructure upgradation and other Central schemes for infrastructure development.
4.4. Development of Integrated Industrial Townships
4.4.1. Integrated development – Live, Work and Play Industrialization and urbanization are related phenomenon and therefore the State would have an integrated approach to face the challenges arising from the same. The State would develop integrated townships with provision of residential, industrial, commercial and other needs rather than developing industrial areas and residential areas separately. These industrial townships should follow a philosophy of Live, Work and Play to ensure high degree of quality of life and liveability.
4.4.2. Land to the Industry at reasonable price – A large scale mixed land use project would be able to provide land to the industry at reasonable price reaping benefits from other components of the project.
Chapter 4: Infrastructure Industrial and Business Development Policy 2017 Page 23 of 121
4.4.3. Attracting talent – A township based on live, work and play will be able to provide necessary support for various needs of the professionals and as a result will help in attracting talent for the industry.
4.4.4. Inclusive growth - The needs of urban poor and industrial labour are often not met adequately and they are forced to live in the slums. Various schemes for housing for poor could not be effectively implemented due to lack of availability of land. The new townships will provide land for social housing to cater to the needs of weaker sections of the society particular the industrial workers who would need housing and other facilities.
4.4.5. Decongestion of cities – The State will also enable the industries located in the congested areas of the city or non-conforming zones (where Master Plan stipulates their shifting after certain time period) to the new areas being developed and allow the inner areas for more value added city use.
4.5. Development along Industrial Urban Corridors
4.5.1. Amritsar Kolkata Industrial Corridor (AKIC) The State will develop area falling in AKIC along the Eastern Dedicated Freight Corridor (EDFC) as major industrial hub. It will cover important towns of Rajpura, Sirhind, Doraha, Sahnewal and Ludhiana. The State has already identified various land parcels for the purpose of setting up Industrial Estates along AKIC.
4.5.2. Chandigarh-Amritsar Industrial Corridor Chandigarh-Amritsar is an important urban industrial corridor. The State will strengthen the existing industrial clusters on this corridor. The State would further carry out the feasibility of various identified land pockets on this corridor and develop new Industrial Parks and Industrial Townships along this corridor.
4.5.3. Chandigarh-Hoshiarpur-Gurdaspur Industrial Corridor Development of Chandigarh-Hoshiarpur-Gurdaspur Industrial corridor will give a fillip to Kandi Area and Border Area. The State would further carry out the feasibility of various identified land pockets on this corridor and develop new Industrial Parks and Industrial Townships along this corridor.
4.5.4. Chandigarh-Patiala-Sangrur-Bathinda Corridor Development of Chandigarh-Patiala-Sangrur-Bathinda corridor will ensure development of industrial infrastructure in Malwa region of the State and provide employment opportunities to youth in this region.
Chapter 4: Infrastructure Industrial and Business Development Policy 2017 Page 24 of 121
4.5.5. Development of Economic Corridors along major rivers The State will explore canalization of major rivers namely Ravi, Beas and Sutlej and construct high speed economic corridors along these rivers to attract industry and investment, which will develop these areas and provide jobs and growth opportunities to local people.
4.6. Core, Support and Social Infrastructure to be provided in Industrial Estates
4.6.1. Though the actual infrastructure facilities will depend on the nature, size and resources available for an industrial Parks, the State would endeavour to provide the following core, support and social infrastructure in all the existing and future industrial Parks in a time bound manner:
Core Infrastructure
(i). Developed Industrial Plots
(ii). Roads, Storm Water Drainage and Street Light
(iii). Water Supply
(iv). Power Supply Network
(v). Solid Waste Disposal
(vi). Environment Conservation Initiatives – Green Spaces, Parks and Gardens
(vii). Telecommunication,
(viii). Gas Support Infrastructure
(i). Skill Development Centre
(ii). Technology Centre
(iii). Common Facility Centre
(iv). Common Effluent Treatment Plant
(v). Recycling of Waste
(vi). Exhibition and Convention Centre
(vii). Cargo Logistics Centre/ Custom bonded warehousing
(viii). Petrol and Service Station
(ix). Fire Station
(x). Space for public amenities – Post office/Banks/Insurance, other Institutions Social Infrastructure
(i). Industrial Housing
(ii). Healthcare and medical attendance services
(iii). ESI Dispensary/ Hospital
(iv). Schooling & Crèches
(v). Organized transport linkages
4.6.2. Provision for MSME units in the Industrial Estates Chapter 4: Infrastructure Industrial and Business Development Policy 2017 Page 25 of 121 The State would earmark adequate land for MSME units including land for development of flatted factories, industrial sheds and other measures to support MSME units. Further, the State would allow the plots to be used for duly identified service enterprises.
4.6.3. ESI Hospitals and Dispensaries In many industrial estates, plots have been reserved but no ESI hospital or dispensary has been set up. The State would take up with ESI department either to develop the facilities in a time bound manner otherwise the State would arrange for alternate model for delivering services in such Industrial Estates.
4.6.4. Affordable Housing for the workforce and provision of crèches
(i). In order to ensure availability of labour, development of affordable housing including dormitories and hostels will be done in or around industrial estates.
(ii). The State would make suitable land available for developing affordable housing under various State and GOI schemes and devising suitable PPP model.
(iii). The State will allow conversion of industrial plots lying vacant for affordable housing for labours keeping in view the demand of such facilities in respective industrial estates.
(iv). The State will also facilitate setting up of crèche facilities in the industrial areas.
4.6.5. Exhibition and Convention Centres Exhibition centers play a key role in enabling the Industry to showcase and market their range of products. The State will set up Exhibition and Convention centers with the latest infrastructure and facilities including spacious conference halls, display areas, proper parking, etc. in Mohali, Ludhiana, Jalandhar and Amritsar in first phase.
4.6.6. Warehousing Facility All the new Industrial Parks shall have the provision of warehousing facilities, which could be developed in PPP mode providing good facilities and latest infrastructure. Further, provisions shall be made to develop Warehousing facilities near existing clusters, in case such demand exists.
4.7. Common Environment Infrastructure
4.7.1. The State firmly believes that Industrial development has to be environmentally sustainable.
Common Environment Infrastructure is the need of the hour for industries not capable of putting up their own Environment Management System due to technical, financial or land Chapter 4: Infrastructure Industrial and Business Development Policy 2017 Page 26 of 121 related constraints. This is particularly required to support MSME units in various industrial clusters.
4.7.2. The State in partnership with Industry Associations will facilitate setting up of common environment infrastructure such as Common Effluent Treatment Plants, Common Hazardous Waste Treatment Facilities, E-Waste Collection and Disposal facilities and other such facilities to protect the environment and promote sustainable development.
4.7.3. The State shall utilize various schemes such as MSME-CDP scheme of Ministry of MSME, Integrated Processing Development Scheme (IPDS) of Ministry of Textiles to avail funding for setting up of CETPs. Apart from facilitating assistance under various Central and State Schemes, the State will also facilitate setting up of common facilities on PPP.
(i). Provide land for CETPs on lease
(ii). Exemption of Electricity duty on the operations of the CETP
(iii). Expedite any existing or future State shares in setting up of CETPs
4.7.4. Natural Gas The State will explore supply of Natural gas to the Industrial Parks through proper connectivity.
4.7.5. Availability of water for industrial use The State will set up Ground Water Authority to frame appropriate and sustainable policies for use of water. The State would also work towards greater use of surface water for industrial purpose and suitable schemes will be framed.
4.7.6. E-waste facility Keeping in view the amount of e-Waste being generated, the State would set up adequate facilities for e-Waste collection and recycling.
4.8. Maintenance of Industrial Parks
4.8.1. Nodal Agency for maintenance The Authority shall be the nodal agency responsible for maintenance of all the Industrial Parks in the State. It will have the status of local authority. The Authority will collect and retain the charges accrued from the industrial estates, focal points, etc. transferred to the Authority in the form of property tax, water, sewerage, solid waste and utilize the same for development, upgradation, maintenance and management of the industrial areas.
4.8.2. Levy of maintenance service charge Chapter 4: Infrastructure Industrial and Business Development Policy 2017 Page 27 of 121 The Authority would levy maintenance service charges on industrial units located in the Industrial Parks to meet the gap, if any, in the income and expenditure on maintenance.
4.8.3. Upgradation of Industrial Parks on PPP Keeping in view that the industrial Parks are currently in poor shape, huge resources would be required to upgrade the existing infrastructure and then maintain the same as per global standards. Immediate improvement in infrastructure and their maintenance is essential. In order to ensure global standards and attract investment and management from the private sector in the maintenance of various industrial parks, the Authority will work out suitable model for upgradation and maintenance of industrial parks in PPP mode.
4.8.4. Amendment in Common Infrastructure (Regulation and Maintenance) Act 2012 Wherever SPVs for maintenance have been formed and have come forward for maintenance of industrial estates, the Authority will involve them in the maintenance of Industrial Areas. The State will further suitably amend the existing Common Infrastructure (Regulation and Maintenance) Act, 2012 regarding maintenance of Industrial Parks in line with the Policy.
4.9. Estate Management
4.9.1. Uniform Estate Management Procedure
(i). The Authority will be responsible for all estate management services of all the industrial estates, focal points and other areas transferred to it by Directorate, Punjab Infotech, Punjab Agro and other agencies.
(ii). The Authority will simplify and revise existing estate management practices of different agencies keeping in view the changing economic environment, aspirations of the Industry and ensuring ease of doing business for existing and prospective allottees. The guidelines and processes pertaining to allotment, reservation, transfer of plots, grant of NOCs, land use changes and other aspects of Estate Management will be simplified and revised.
(iii). The Authority will notify and publish a standard Estate Management Procedure for all the industrial estates, industrial focal points, industrial growth areas etc. developed or transferred to the Authority.
(iv). The Authority will develop online system for all the estate management services in a time bound manner.
4.9.2. Unlocking the potential of land – Liberalizing zoning regulations Chapter 4: Infrastructure Industrial and Business Development Policy 2017 Page 28 of 121
(i). Many of the old focal points and industrial areas have come inside the city. Further, there is need to provide various support services and infrastructure to the industrial units in the focal point. In fact, in case of MSMEs, a number of services have also been included in the definition of enterprise. It is accordingly required that duly identified activities are permitted in the zoning regulations of industrial parks and estates.
(ii). ELTOP Sector in SAS Nagar was setup long back and keeping in view the present needs, the permissible usage needs to be reviewed and liberalized.
(iii). The department of housing and urban development has already notified a scheme for conversion of industrial plots to other usage under certain terms and conditions, the same would be reviewed to make it more effective.
(iv). The State would also provide an effective mechanism for resuming the vacant plots so that they can be given to deserving entrepreneurs.
(v). Zoning regulations will be liberalized to provide for flatted factories. Further, keeping in view the paucity of land, the State and the Authority would go for vertical growth and grant of higher FAR would be liberalized.
4.9.3. Unlocking the potential of land – Liberalising the lease and other terms and conditions of old allotments
(i). Some of the terms and conditions of allotment and lease deeds executed by the State and various agencies have emerged as a bottleneck towards utilization of idle land with the Industry. PSIEC has liberalised many of the lease terms and conditions over a period of time as per the demand of the Industry for their growth. PICTC is still following different policies. Uniform Estate Management Policy will be notified.
(ii). Provisions regarding unearned profit clause and other such restrictive clauses in the terms and conditions of sale or lease will be reviewed.
(iii). Provision of mortgaging of land to raise finances and sub-leasing will be reviewed with a view to make them more liberal.
4.9.4. E-auction of plots Wherever the number of qualified applicants are more than number of plots, the plots will be allotted by way of e-auction.
4.9.5. One Time Voluntary disclosure and Amnesty scheme Chapter 4: Infrastructure Industrial and Business Development Policy 2017 Page 29 of 121 It has been noticed that the old allottees have committed certain violations of terms and conditions of allotment pertaining to unauthorized transfer/ leasing/ change in constitution etc.
The State would come out with one time amnesty scheme for regularization of such cases.
4.10. Private Industrial Park The State will separately formulate a scheme for promotion and development of Industrial Parks in Private Sector.
Chapter 5: Power Industrial and Business Development Policy 2017 Page 30 of 121 Chapter 5: Power
5.1. Punjab – Robust Power Infrastructure Power is one of the basic factors of production for Industry. Punjab is a power surplus state and has adequate power supply to meet the demand. The state has excellent distribution network which includes 66 KVA sub-stations at every 10 km. It has the country's first ever 400 KVA ring main system covering the entire state. The state has a cumulative installed renewable energy capacity of 1,422 MW with 475 MW of Biomass power and over 800 MW of solar power. The state thus has an advantage of surplus power and a robust power infrastructure.
5.2. Uninterrupted and Quality Power Punjab is the only state in North India which has been able to control the theft of power and has achieved reduction of aggregate technical and commercial losses below 15%. The Government is committed to supply uninterrupted electricity at affordable rates so as to attract industrial investments in the state.
5.3. Power at affordable and fixed tariff for 5 years Power represents a major recurring expenditure. In order to enhance the cost competitiveness, the State will provide power at affordable and fixed tariff for 5 years. This would not only benefit the new industry in Punjab, but also help in reviving the existing industry of Punjab, which has always been the State’s pillar of strength.
5.4. Up-gradation of power infrastructure to industrial areas The State will through the concerned department and agency get the audit of the power distribution networks to the Industry conducted and any gaps such as lack of dedicated feeders, lack of proper feeder capacity, faults in distribution etc. will be appropriately addressed. In order to mobilize upfront investment in upgrading distribution infrastructure to the industrial estates, the State will explore the possibility of private sector participation for Industrial Estates at Ludhiana, Jalandhar and Amritsar.
5.5. Business Friendly Policies by PSPCL PSPCL will review its policies to make them more business friendly for release of new connection, enhancement of load, splitting of connection, import of bulk power, rationalization of various electricity rates and other service charges, peak load charges, procurement from state MSME’s and OTS policy etc.
5.6. Stand by Support to Captive Generators/ Users Chapter 5: Power Industrial and Business Development Policy 2017 Page 31 of 121 The State will in consultation with Stakeholders endeavor towards an equitable policy to provide Stand by support to Captive Generators/ Users based on similar policies in other States.
Chapter 6: MSME Development Industrial and Business Development Policy 2017 Page 32 of 121 Chapter 6: MSME Development
6.1. MSME Sector – Engine for socio economic growth and employment generation
6.1.1. MSME sector plays a crucial role in providing large employment opportunities at comparatively lower capital cost. MSMEs also help in industrialization of rural & backward areas, thereby, reducing regional imbalances. MSME sector has emerged as an engine for socio economic growth.
6.1.2. The Micro Small Medium Enterprises Development (MSMED) Act 2006 enacted by Central Government seeks to facilitate the development of these enterprises, enhance their competitiveness and provides a legal framework for recognition of both manufacturing and services entities.
6.1.3. Khadi and Village Industries development, which is being looked after by Khadi and Village Industries Board would also be supported as part of the MSME sector.
6.2. State’s approach to MSME sector development
6.2.1. The State recognizes that different stages of MSMEs have different needs. MSME growth can be broadly classified into five stages – Ideating a Business, Starting a Business, Growing a Business, Reviving a Business and Exiting a Business. The policy will address various needs that emerge in these stages.
6.2.2. The Policy is not merely subsidization of factors of production but growth and performance oriented. The policy will strengthen the state institutions to support a smart MSME Ecosystem driven by efficiency and innovation.
6.3. Setting up of ‘MSME Punjab’
6.3.1. Punjab has a strong base of close to 1.6 lac MSME units truly reflecting the enterprising spirit of the State. In order to address a myriad of challenges being faced by the MSMEs in the State and to make it a highly vibrant and dynamic sector, the State would set up ‘MSME Punjab’, as part of the Punjab Industrial and Business Development Authority to focus on the development of MSMEs.
6.3.2. ‘MSME Punjab’ will address the following key functions pertaining to MSME sector in the State:
(i). Enhance the competitiveness of MSMEs in the changed economic scenario.
(ii). Adequate flow of credit from financial institutions/banks
(iii). Support for technology upgradation and modernization
(iv). Modern testing facilities and quality certification
(v). Access to modern management practices Chapter 6: MSME Development Industrial and Business Development Policy 2017 Page 33 of 121
(vi). Support for product development, design intervention and packaging
(vii). Assistance for better access to domestic and export markets and
(viii). Entrepreneurship development and skill upgradation through appropriate training facilities
(ix). Cluster-wise measures to promote capacity-building and empowerment of the units and their collectives.
6.3.3. MSME Punjab will have dedicated divisions and requisite competencies to provide necessary assistance to MSME units in Access to Finance/Credit, Access to Technology, Access to Market, Access to Skills and other needs of the Sector. The organization will be assisted by professional agencies in delivering various services to its stakeholders.
6.4. Setting up of District Level Single Window System for MSME units
6.4.1. In order to strengthen support to the industry particularly MSME sector at the District Level, the State would set up a strong and effective Single Window System at the District level.
6.4.2. The District Level Single Window System will provide following services to MSME Units:
(i). One stop clearances for all regulatory services
(ii). One stop clearances for all fiscal incentives
(iii). Facilitate access to Infrastructure
(iv). Facilitate access to Finance/ Credit
(v). Facilitate access to Technology
(vi). Facilitate access to Mentoring
(vii). Facilitate other support measures to MSME sector
(viii). Facilitate support to Self-Employment, Startup and Entrepreneurship Development
6.5. MSME Cluster Identification
6.5.1. The State would clearly identify and delineate various industry clusters based on their presence in various geographic locations. The same would be marked on GIS for their visibility and providing necessary linkages.
6.5.2. The State would particularly prioritise following clusters for development in phase 1:
(i). Cycle and Cycle Parts
(ii). Automobiles and Auto components
(iii). Light Engineering
(iv). Machine Tools
(v). Leather and Sports Goods
(vi). Petro-Chemicals
(vii). Secondary Steel
(viii). NRSE Equipments Chapter 6: MSME Development Industrial and Business Development Policy 2017 Page 34 of 121
(ix). Textile and Apparel
(x). Agri and Food Processing
(xi). Electronics
(xii). IT/ITES
(xiii). Life Sciences and Pharmaceuticals
6.6. MSME Cluster Development Programs The State will follow cluster approach for development of MSME Sector. The State will focus on optimal utilization of Central Government schemes for developing and upgrading various MSME clusters. Common facilities will be set up in partnership with SPV’s of respective clusters. Apart from the Schemes of Central Government for cluster development, the State would also formulate its own scheme for cluster development based on the felt needs of the State and gaps in the Central Scheme.
6.7. Access to Technology for MSMEs
6.7.1. Setting up of Technology Centres The State will set up one Technology Centre for each major industrial cluster. Technology Centre shall act as a hub of research and demonstration of latest tools and technological know-how, innovation & design services, prototyping, testing & calibration, incubation and training. These Technology Centres will partner with Punjab Technical University, Council for Science and Technology and other research and technical organizations at national and international level.
6.7.2. Setting up of Common Facility Centres The State will aim to set up one Common Facility Centre (CFC) in each major industrial cluster.
CFCs shall have testing labs, marketing centers and other supportive capacity as per the needs of the concerned cluster. The State and the Authority may provide land free of cost on lease basis for setting up of CFCs by SPVs under Ministry of MSME’s Cluster Development Programme or other schemes.
6.7.3. Upgradation of QMCs and IDCs as Technology Centres, Common Facility Centres and Skill Centres Revamping of the existing Quality Marking Centres (QMC’s) and IDCs as technology centres and common facility centres on Public Private Partnership model shall be undertaken for supporting the MSME sector. There are 13 existing QMCs and 20 IDCs in the state catering to different sectors like Engineering, Sports Goods, Leather, Paints, Textile, and Machine Tool etc.
6.7.4. Adoption of Central Schemes Chapter 6: MSME Development Industrial and Business Development Policy 2017 Page 35 of 121 The State would ensure adoption of technology upgradation and modernization schemes for MSMEs such as Credit Linked Capital Subsidy Scheme (CLCSS), Technology and Quality Upgradation Scheme (TEQUP), Lean Manufacturing, Quality Management Standards and Quality Technology Tools (QMS & QTT) and ZED (Zero Effect Zero Defect). The State would also make its own scheme to promote these concepts.
6.7.5. Water, Energy and Safety Audit The State will incentivize audit of water, energy and safety to promote technology adoption by MSME units.
6.8. Access to Markets for MSMEs The State would take a number of measures to extend export and marketing support to MSMEs:
(i). The State would encourage various E-commerce portals for online trading and marketing of MSME products.
(ii). The State would make MSME units aware and encourage them to register on Government E-Market Place to avail of opportunities in the Government procurement.
(iii). The State will collect marketing intelligence for tracking and forecasting trends in demand and linkages with raw materials and technology. The information should be disseminated to MSME units.
(iv). The State will facilitate ancillary units and supply clusters around the anchor units such as Rail Coach Factory, Kapurthala, DMW, Patiala and other such anchors.
(v). Annual buyer & Seller Meets and Vendor Development Programmes in respect of large industry, CPSU and major State PSUs will be organized by the State in collaboration with MSME-DI
(vi). The state shall provide financial assistance to MSME for showcasing their products at local, national and international event.
(vii). Greater thrust will be given on income generating economic activities by women and a system will be developed for marketing of their home made traditional articles such as “durries, khes, embroidery work, Phulkaries, hosiery etc.” on a regular basis.
6.9. Access to Infrastructure for MSMEs The State will provide developed sheds, flatted factories and plug and play infrastructure for MSMEs across the districts.
Chapter 6: MSME Development Industrial and Business Development Policy 2017 Page 36 of 121
6.10. Access to Finance for MSMEs
6.10.1. The State will facilitate MSME units in seeking credit from financial institutions by providing them required information and handholding in documentation.
6.10.2. The State shall facilitate raising funds through National Stock Exchange(NSE) dedicated platform for SME’s, called ‘Emerge’ where small companies can list and raise productive capital. The State will provide necessary incentives to make the SMEs available on the exchange platform.
6.10.3. The State would explore the possibility of setting up a government sponsored SME equity participation fund in partnership with SIDBI and National Stock Exchange of India Limited.
(i). The main objective of the Fund will be to invest in the lPOs of the emerging high growth potential companies in the state, in both the manufacturing and services sector.
(ii). The investment manager for the fund will be a Government appointed agency. The appointed investment manager will be responsible for investment decisions of the fund.
(iii). NSE shall undertake third party due diligence of such companies and submit it to government fund manager, with a view to empowering investors to make betterinformed investment decisions.
(iv). The listing of securities of the investee company on NSE-EMERGE will be a means of creating liquidity for that investment
(v). Such companies will be enrolling for NSE’s Capital Markets Program, which shall include physical & virtual participation in training and awareness activities.
6.11. Growth Accelerator Services for MSMEs
6.11.1. The State will provide Growth Accelerator services for MSMEs. It shall involve designing a bespoke intervention for each MSME sector targeting their challenges and encompass a blend of coaching, training and handholding. The State would partner with globally established agencies to appoint and train Growth managers to coach MSMEs to achieve higher growth.
Sustainability of these growth managers as service providers shall be pursued.
6.11.2. Further, there are large number of GOI schemes which offer unit level incentives to specific industries e.g. Food processing, electronics, leather, textiles. The State will partner with suitable agencies to facilitate benefits to greater number of MSMEs in the state. It shall support MSMEs in preparing applications and obtaining approvals under respective schemes.
6.12. Common Environment Infrastructure in MSME clusters Chapter 6: MSME Development Industrial and Business Development Policy 2017 Page 37 of 121 The State will facilitate setting up of common environment infrastructure such as CETPs in various MSME clusters. Apart from utilizing assistance available under various schemes, the State will facilitate setting up of common environment infrastructure on PPP. The State will provide land and other concessions for setting up of CETP and Private Partner will make the requisite investment and will recover from industry in the form of user charges.
6.13. Revival and Rehabilitation of Sick MSME units The State will closely monitor implementation of RBI’s framework for identification, nursing and providing rehabilitation package to potentially viable sick units of the State. The State shall identify and prepare district wise list of sick units. The identified viable sick MSMEs shall be provided relief measures by the State for their rehabilitation and revival.
6.14. MSE facilitation councils at district level
6.14.1. MSE facilitation council has been set up under the Micro, Small and Medium Enterprises Development (MSMED) Act 2006. It functions as a State-Level Council and MSEs have to visit Chandigarh to seek Council’s remedial measures for the recovery of delayed payments from buyers located anywhere in India.
6.14.2. In order to make the functioning of the Council effective, the State will also set up MSE Facilitation Councils under the Chairmanship of respective Deputy Commissioners in all the districts of the State by designating1 them as ‘Director’ for providing effective services to MSE units at district level.
1 Amended vide Notification no. 3194 dated 31.07.2019 Chapter 7-Startup & Entrepreneurship Industrial and Business Development Policy 2017 Page 38 of 121 Chapter 7: Startup & Entrepreneurship
7.1. State’s approach to Innovation and Entrepreneurship
7.1.1. The State is known for the enterprising spirit of its people, which brought green revolution and also made Punjab a hub of small and medium enterprises. The State now has to transition to knowledge and technology driven enterprises. It has to develop a new culture of innovation. The State recognizes that innovation and entrepreneurship are crucial for future growth of State’s economy.
7.1.2. The State would support cluster specific bottom up approach to build and strengthen Innovation and Entrepreneurship ecosystem in the State. The State would follow an entrepreneur centric approach fostering connections and learning. The State will facilitate networking between entrepreneurs and entrepreneurship support organizations by bringing entrepreneurs together in an environment that catalyzes learning.
7.2. Startup Punjab - Building a Strong Eco-system for Startups
7.2.1. The State will launch “Startup Punjab” to build a strong eco-system for nurturing innovation and Startup. The State will ensure necessary convergence and synergy in various Central and State programs promoting innovation, entrepreneurship and Startup. It will promote networking of various reputed academic institutions carrying out research and innovation and other organizations running incubators and accelerators.
7.2.2. The State has a large number of reputed national level research and academic institutions particularly around the State capital such as Indian School of Business (ISB), Indian Institute of Technology (IIT), National Institute of Pharmaceutical Education and Research (NIPER), Indian Institute of Science Education and Research (IISER) and National Agri-biotech Institute apart from various State Universities for Technical Education and Higher Education and other institutions of excellence.
7.2.3. The State will connect these leading institutions and leverage their expertise and research capabilities for promoting innovation, entrepreneurship and Startups in the State. The State will connect them with entrepreneurs and global network of venture capital, angel funds and mentors. It will accelerate the state’s handholding in not only technology sector but also other fields like manufacturing, healthcare, agriculture, tourism etc.
7.3. University and College Incubators The State will promote setting up of Incubation Centres in Universities and other Academic Institutions. These incubation centres play an important role in promoting entrepreneurial culture in students. It inculcates the concept of entrepreneurship in the mind of students in Chapter 7-Startup & Entrepreneurship Industrial and Business Development Policy 2017 Page 39 of 121 place of finding the jobs after completing their study. Besides the principles and practices of good business ownership which incubator programs provide, the student business owners also enjoy a creative, innovative, and engaging environment. The State will also put in the efforts to build strong academia industry linkages and networking through these incubation centres. The incubation facilities could also be made available to non-residents or non-students to bring greater benefits and learnings for all stakeholders. The students will be provided information and support regarding available State & Central schemes, incentives and grants.
7.4. IKG PTU to set up Fund for Startup In order to help youth of the State and develop them into entrepreneurs, IKG Punjab Technical University in partnership with State Government will set up Startup Fund of Rs. 100 crores, which will be used for promoting incubation centres, seed money for Startups, scale up funding and other support to the Startup units.25% funds will be dedicated to promote Startups by SC and Women entrepreneurs.
7.5. Incubation Centres by other Government Organizations There are a number of Incubation Centres set up by various Central and State Government organizations such as Biotech Incubator, STPI Incubation Centre. These incubation centres need to be promoted effectively and necessary linkages with the State Government programs and industry shall be provided.
7.6. Private Incubators and Accelerators The State would also encourage private sector lead Incubation Centres and Accelerators and provide them necessary support. The State would frame a scheme to provide various fiscal and non-fiscal incentives to promote development of Incubation Centres in private sector.
7.7. Setting up of sector specific incubators In order to provide impetus to entrepreneurship in the focus sectors for development, the State would encourage setting up of sector specific incubators such as Digital manufacturing, Lifesciences & Biotechnology, Agro & Food Processing and Information Technology. These incubators will be set up in and around the existing and envisaged industry clusters in the State.
7.8. Creation of common infrastructure and co-working spaces The State would facilitate creation of adequate support infrastructure for boosting innovation ecosystem. Such infrastructure would be created across different sectors in all districts in Punjab and would comprise of components such as:
(i). Ready-to-use office spaces Chapter 7-Startup & Entrepreneurship Industrial and Business Development Policy 2017 Page 40 of 121
(ii). R&D and testing labs
(iii). Software and hardware solutions
(iv). Services such as legal, accounting, HR, IPR, etc.
(v). Facilities such as internet connectivity, electricity, water, security, etc.
7.9. Special Focus on Women Entrepreneurship
7.9.1. Women entrepreneurs constitute a small percentage of overall entrepreneurs. Women entrepreneurs need to be encouraged for significant social and economic development and inclusive growth. The State would identify specific challenges women entrepreneurs face in formal and informal sectors of economy including rural and urban areas and create facilitative environment for women entrepreneurs to contribute to economic development.
7.9.2. The State would encourage women entrepreneurs, create awareness among women entrepreneurs on various State & Centrally sponsored schemes. The State would also handhold women who have business ideas and are interested to start their business ventures. The State will provide specific schemes to promote Women entrepreneurship.
7.10. Special Focus on SC Entrepreneurship
7.10.1. For growth and prosperity to be truly inclusive, all sections of the society need to partake in this prosperity. Besides wage employment and education, the marginalized sections of the society also need to envision, create and scale-up ventures to be a major participant in this growth story.
There is a need to substantially increase SC entrepreneurs and number of SC owned enterprises to enable the socio-economic empowerment of the SC communities.
7.10.2. The state would encourage SC entrepreneurs, create awareness among SC entrepreneurs on various State & Centrally sponsored schemes and provide handholding support to them. The state will dovetail Standup India program with State specific schemes to promote entrepreneurship amongst SC youth.
Chapter 8-Skill Development Industrial and Business Development Policy 2017 Page 41 of 121 Chapter 8: Skill Development
8.1. Punjab Skill Development Mission – Nodal agency for Skill Development Skilled workforce is essential for growth and competitiveness of Industries. The State has already set up Punjab Skill Development Mission, a nodal agency to spearhead skill development activities in the State. The Mission would further be strengthened and integrated with the Industry requirements.
8.2. Identifying the Skill Gap in various clusters The State would work out specific skill development needs including advance skilling for various sectors. The State would identify skill gaps in all the major industrial clusters.
8.3. Convergence of various skill development schemes The State would ensure convergence of various skill training schemes to bring scale and synergy.
Various skill training schemes being run by different departments would be transferred to the Mission. At the district level, District Bureau of Employment and Enterprises will be coordinating the implementation of various skill development schemes.
8.4. Setting up of University of Skills and Vocational Education The State will set up a University of Skills and Vocational Education in Punjab. The University will help upgrade the standard of skills and vocational training in the State by devising Industry relevant curriculum, offering skill based certificate, diploma and degree programs relevant for Industry and Employers. The University will co-ordinate with the Department of Technical Education, Department of Higher Education and Department of Industries and other relevant Departments and Organizations of the State and Central Government and Industry bodies to enhance employability of students.
8.5. Setting up of new Multi Skill Development Centres In order to ensure quality training and make skill training aspirational, the State has already set up state of the art multi skill development centres at Ludhiana, Jalandhar, Amritsar, Hoshiarpur and Bathinda. The State will further set up new MSDC in the remaining districts in PPP mode.
8.6. Setting up of cluster specific Skill Development Centres The State would work out specific skill development needs including advance skilling for various sectors. The State would identify skill gaps in all the major industrial clusters. The State will set up cluster specific Skill Development Centres, which shall allow skilling of new entrants as well as skill upgradation of existing workers in the clusters. The State will also set up Advanced Skill Chapter 8-Skill Development Industrial and Business Development Policy 2017 Page 42 of 121 Development Centres for providing latest know-how and courses to meet high end skill requirement of the Industry. These may be part of the Technology Centres being set up in the State.
8.7. Skill Training by large employers The State would work with large employers in various industry sectors to create skill training facilities in partnership with such employers.
8.8. Skill Registry In order to help both the skilled candidate and employers, the State would maintain a registry of all the skilled candidates passing out from different institutions and under various skill training schemes. The State may utilise the Labour Information Management System developed by Central Government.
Chapter 9- Ease of Doing Business Industrial and Business Development Policy 2017 Page 43 of 121 Chapter 9: Ease of Doing Business
9.1. Invest Punjab The State accords highest priority to enhance the ease of doing business in the State. Improving the business environment is key to spur growth and generate employment. The State has set up ‘Invest Punjab’, a unified regulator vested with the powers to grant regulatory clearances across 23 departments. Building on the success of Invest Punjab, to strengthen facilitation support to the industry at the district level, the State would set up a similar mechanism at the District level to provide one stop clearance for all regulatory services and one stop disbursement of all fiscal incentives apart from providing host of other services to MSME units and other industrial units as may be notified by the State.
9.2. International Desk To attract foreign investments in various manufacturing and service industry sectors and to enable an investor friendly experience for the foreign investors, the State would be setting up International Desks as part of Invest Punjab for focus countries to facilitate such prospective global investors.
9.3. Business First
9.3.1. Facilitation to existing as well as new Industry Building on the success of Invest Punjab, the State will launch Business First, an initiative to put Ease of Doing Business as the core philosophy of the State. The State realizes unequivocally that a conducive business environment and facilitation is pre-requisite for growth, innovation and employment generation in the State. Business First means putting the welfare and growth of businesses as foremost priority of the State. The State would ensure business facilitation services of the highest order. Business First will be supported by an integrated business facilitation services network (IBFSN).
9.3.2. BusinessFirst Portal – A unified electronic portal for online services to the Businesses
9.3.3. The State would take the ease of doing business in the State to the next level by replacing multiple electronic interfaces by various regulatory departments and agencies providing services to the Industries through their lifecycle by setting up a unified Business First portal. The Business First portal will provide services to both existing as well as new industries. The portal will also provide online facility for availing various fiscal incentives and centralized inspection mechanism. Business First will provide a common platform driven by robust IT infrastructure and services for all regulatory services and fiscal and non-fiscal incentives being delivered to the businesses throughout their lifecycle.
Chapter 9- Ease of Doing Business Industrial and Business Development Policy 2017 Page 44 of 121
9.3.4. The State would follow a business centric and whole of government approach to design Business First portal. It will be one stop shop providing transparent, efficient and convenient interface, through which the government and businesses can interact ensuring less physical touch points, easy applicability and reduced timelines.
9.3.5. Business First portal will have a strong backend integration with every stakeholder to mandatorily perform processing of application through the portal only. It will help real time tracking of the status of various processes and generate alerts for possible delays. Business First portal will provide dashboard for review and monitoring at various levels.
9.4. Reforms in the processes of core departments providing services to Industries Apart from setting up Business First portal to provide hassle free services to the industries, the State would reform and reengineer various processes of following departments/agencies based on the national and international best practices on priority:
(i). Punjab Pollution Control Board/ Department of Science, Technology and Environment
(ii). Punjab State Power Corporation Limited/ Department of Power
(iii). Punjab Small Industries and Exports Corporation/ Department of Industries and Commerce
(iv). Department of Taxation
(v). Department of Labour
(vi). Department of Housing and Urban Development
(vii). Department of Local Government
(viii). Department of Revenue
9.5. Deemed Approval for various Regulatory Clearances A statutory mechanism will be provided for deemed approval for various regulatory clearances at all levels. The entrepreneur will be at liberty to proceed further for execution of the project beyond the prescribed time limit subject to his certifying that all the provisions of regulations will be complied with.
9.6. Reforms related to land and buildings
9.6.1. Transparency in Land Allotment System The State will put in place a transparent and clear policy for allotment of plots and ensure GIS mapping of available land and plots for industrial use and make the information available on Business First portal. The State will design and implement a land allotment system that allows online application and payment without the need for a physical touch point for document submission and verification and implement the same through Business First Portal. The State Chapter 9- Ease of Doing Business Industrial and Business Development Policy 2017 Page 45 of 121 would have single agency for industrial infrastructure, and all land would be allotted through that Authority.
9.6.2. Reforms in Registration of Property The State shall ensure seamless integration between Department of Revenue and Department of Local Bodies. The State will develop online system for registration of properties.
9.6.3. Online availability of master plans & CLUs The State would ensure that duly notified master plans for all the planning areas are widely available and published on Business First portal. Khasra number and GPS coordinates (if available) would also be superimposed on various plans and made available online. The Change of Land Use service will be made available online.
9.6.4. Notification of Uniform Building Code and online approval of building plans The State would notify ‘Punjab Uniform Building Code, 2017’ applicable to the entire State and for all agencies. The State would provide online facility for submission and approval of building plans.
9.6.5. Single Application form for construction permit related clearances The Department of Housing and Urban Development & the Department of Local Government and other agencies granting constructions permits shall integrate their services of granting occupation/ completion certificate via One Stop Clearance System and subsequently with Business First Portal. The State will introduce single form for construction permits to be sanctioned within a specified time period. The State would also ensure issuance of single completion cum occupancy certificate within 15 days.
9.7. Reforms in granting Utility Permits
9.7.1. Easing the process of Electricity Connection The State would reduce the number of documents required for obtaining the electricity connection to only two i.e. proof of ownership/occupancy and authorization document in case of firm/company.
9.7.2. Reducing the timeline for new connections The State would ensure that charged electrical connections up to 150 KVA is provided within 7 days, where no ‘RoW’ is required and in 15 days where RoW is required from concerned Chapter 9- Ease of Doing Business Industrial and Business Development Policy 2017 Page 46 of 121 agencies. The State would devise the system where there is deemed ROW clearance subject to depositing the requisite fee to the relevant agencies.
9.7.3. Reducing the timeline for certificate from Chief Electrical Inspector The State would ensure online certification by Chief Electrical Inspector within 7 days.
9.7.4. Road Cutting Permissions The State would ensure grant of road cutting permissions by PWD and other agencies through Business First portal.
9.7.5. Release of Water Connection The State would ensure online permission for water connection from concerned authority to be given within 7 days.
9.8. Reforms in Environment Regulations
9.8.1. Exemption from Grant of CTE/CTO for Green Category The State in consultation with Punjab Pollution Control Board exempt Green Category Industries from consent management subject to appropriate self-regulatory measures.
9.8.2. Auto-Renewal of CTE and enhancement of validity period The State in consultation with Punjab Pollution Control Board would allow auto-renewal of Consent to Establish based on self-certification/third party certification and validity period of consent will also be enhanced.
9.9. Reforms in Labour Regulations
9.9.1. The State would allow third party certification from the competent person for approval of plan and permission to construct/extend/or take into use any building as a factory under the Factories Act, 1948.
9.9.2. The State would Introduce self-certification for registration of principal employer's establishment under the Contracts Labour (Regulation and Abolition) Act, 1970 and registration under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
9.9.3. The State would further simplify the self-certification scheme for industries and employers under various Central and State laws regarding labour, factories and industries. The requirement of performance bank guarantee will be removed. The random inspections will be limited to not Chapter 9- Ease of Doing Business Industrial and Business Development Policy 2017 Page 47 of 121 more than 5% of the units. The self-certification scheme may be made mandatory for Startups, MSME, IT/ITES, Life Sciences and Biotechnology and other such categories except for certain categories of industries based on risk profiling of the industries.
9.9.4. The State will undertake comprehensive labour law reforms creating employment opportunities through greater investments and easing the conduct of business in the state. More investments will open-up new avenues for labour. The reforms will be aimed to create better opportunities in the organised labour sector, which is essential for quality employment. The State will examine necessary amendments in Industrial Disputes Act, Factories Act and Contract Labour Act, which have been carried out by other States.
Industrial Disputes Act
(i). Firms employing up to 300 workers can retrench or shut shop without govt's permission against the current limit of 100 workers.
(ii). In case of retrenchment, a worker should raise an objection within 3 months. There is no time limit at present.
(iii). Trade union can be formed only if it gets 30% of the workers as members against the current provision of 15%.
Factories Act
(iv). The Act will apply to factories with 40 workers, if without electricity; and 20 workers, if with electricity (the present condition respectively is 20 and 10).
(v). Complaints against an employer about violation of this Act would not receive cognisance by a court without prior written permission from the State Government.
(vi). A provision for compounding of offences will be added.
Contract Labour Act
(vii). The Act will apply to companies employing more than 50 workers (against current provision of 20 workers)
(viii). The industries will be able to hire more temporary workers without passing on to them the benefits contract workers are entitled to.
9.10. Central Inspection System Chapter 9- Ease of Doing Business Industrial and Business Development Policy 2017 Page 48 of 121
9.10.1. The State would institutionalize a Central Inspection System for Labour (Regulation and Abolition) Act 1970, Factories Act 1948, the Boilers Act 1923, Various Environment Regulations and other laws to minimize multiple visits of inspectors.
9.10.2. The State would design and implement a computerized system for identifying building/area that needs to be inspected based on risk assessment. The State will mandate online submission of inspection report within 24 hours to the department. No inspection will be carried out by the Inspector without the prior approval of the department.
9.10.3. The State will standardize the process of Inspection System and establish a dedicated Joint Inspection Cell. The cell will have the database of all facilities, including basic information like the geographical location, sector, and compliance history, as well as information specific to the area of inspection.
9.10.4. Business First portal will be set up to allow complete data sharing between all participating departments, inspections reports generation and management, mobile/email access, automated scheduling of inspections and work schedules of inspectors.
9.10.5. Joint Inspection Cell will ensure that the central inspection process is optimized that the resources are allocated to enterprises based on the identified risk profile.
9.11. Strengthening of Third Party Certification Wherever a technical expertise is required for inspection and certification, the State would notify a panel of technically competent agencies along with their terms and conditions, which can carry out third party inspection and certification on behalf of the State. The State has already provided for third party certification under certain laws, for which the scheme would be strengthened and additional services under the remaining laws will be taken up for third party certification.
9.12. Additional services under Punjab Right to Service Act (RTS) The State will notify remaining services to the Industries under RTS Act, 2011. The State will also rationalise the timelines for all services pertaining to Industries under RTS Act, 2011 and simplify the proformas and work flow for delivery of services to ensure timely execution and delivery.
Chapter 11- Non-Fiscal Incentives Industrial and Business Development Policy 2017 Page 49 of 121 Chapter 10: Fiscal Incentives
10.1. General Provision
10.1.1. The State would frame detailed schemes in line with the provisions of the policy regarding various fiscal incentives and other support measures. The detailed schemes would inter-alia lay down in detail, eligibility criteria, terms and conditions, manner of processing the applications and disbursement of incentives amongst other relevant modalities for availing the incentives. In order to ensure clarity and unambiguity in the instructions, all the departments wil