1 | Page Draft Punjab Industrial and Business Development Policy 2022 Department of Industries and Commerce Government of Punjab 2 | Page Message from Chief Minister, Punjab It is with great pride and enthusiasm that I present the new Industrial and Business Development Policy, 2022 of Punjab. This policy is a result of extensive consultations with experts and stakeholders and has been developed keeping in mind the need for balanced economic growth, job creation and overall development of the state.
Our aim is to create an enabling environment for the industries and businesses to thrive and reach new heights. The policy focuses on providing ease of doing business, support for MSMEs and attracting investment in key sectors. With this policy, we aim to provide a supportive and conducive environment for businesses to flourish, attract investments and spur innovation. It outlines various incentives, subsidies and infrastructure development plans to facilitate ease of doing business.
This policy lays out a comprehensive framework for attracting investment in Ultra mega and Mega Projects, Anchor Units, Large Units, First Two Units in the Border Zone in each sector of Manufacturing and Service, facilitating ease of doing business, and promoting MSMEs, Start up & innovation. It also prioritizes 14 sectors in Manufacturing and 7 Sectors in Service Category with high potential for growth, such as Agri & Food Processing, Tourism & Hospitality, IT/ITES, ODOP, Circular Economy Activities, Processing of Agro-waste etc to drive sustained development.
I believe that this policy will be a game-changer for the state's economy, creating new job opportunities and driving growth in various sectors. I encourage all entrepreneurs and investors to take advantage of the opportunities presented by this policy and contribute to the development of Punjab.
S. Bhagwant Singh Mann Chief Minister, Punjab 3 | Page Table of Contents Chapter 1: Introduction ................................................................................................................ 11
1.1. Punjab – The Land Of Opportunities ...................................................................................................... 11
1.2. Punjab Industrial And Business Development Policy 2022 .................................................................... 12
1.3. Applicability Of The Policy ...................................................................................................................... 13 Chapter 2: Vision, Mission And Goals ......................................................................................... 14
2.1 Vision ...................................................................................................................................................... 14
2.2. Mission ................................................................................................................................................... 14
2.3. Goals ....................................................................................................................................................... 14 Chapter 3: Key Strategic Focus Areas .......................................................................................... 17
3.1. Ten Core Strategic Focus Areas .............................................................................................................. 17
3.2. Infrastructure ......................................................................................................................................... 17
3.3. Power ..................................................................................................................................................... 17
3.4. Micro, Small And Medium Enterprises ................................................................................................... 17
3.5. Large Enterprises .................................................................................................................................... 17
3.6. Nurturing Innovation And Startup & Entrepreneurship ......................................................................... 17
3.7. Skill Development................................................................................................................................... 18
3.8. Ease Of Doing Business........................................................................................................................... 18
3.9. Fiscal And Non-Fiscal Incentives ............................................................................................................. 18
3.10. Export Promotion ................................................................................................................................... 18
3.12. Stakeholder Engagement ....................................................................................................................... 19 Chapter 4 - General Definitions ................................................................................................... 20 Chapter 5 – Industry Specific Definitions ............................................................................................................ 24 Chapter 6: Infrastructure ............................................................................................................. 32
6.1. Industrial Infrastructure – Key To The Growth Of Industries ................................................................. 32
6.2. Strengthening Of Psiec ........................................................................................................................... 32
6.3. Development Of New Industrial Parks And Industrial Land Banks......................................................... 32
6.4. Development Of Integrated Industrial Townships ................................................................................. 33
6.5. Development Along Industrial Urban Corridors ..................................................................................... 34
6.6. Core, Support And Social Infrastructure To Be Provided In Industrial Estates ....................................... 34
6.7. Common Environment Infrastructure .................................................................................................... 36
6.8. Maintenance Of Industrial Parks ............................................................................................................ 37
6.9. Estate Management ............................................................................................................................... 38 Chapter 7: Power .......................................................................................................................... 40
7.1. Punjab – Robust Power Infrastructure ................................................................................................... 40
7.2. Uninterrupted And Quality Power ......................................................................................................... 40
7.3. Power At Affordable Tariff For 5 Years................................................................................................... 40
7.4. Up-Gradation Of Power Infrastructure To Industrial Areas ................................................................... 40
7.5. Business Friendly Policies By Pspcl ......................................................................................................... 40
7.6. Open Access Of Power ........................................................................................................................... 40
7.7. Rationalization Of Electric Load.............................................................................................................. 40
7.8. Time Bound Incentive Of Ed ................................................................................................................... 41 Chapter 8: Msme Development .................................................................................................. 42
8.1. Msme Sector – Engine For Socio Economic Growth And Employment Generation............................... 42
8.2. State’S Approach To Msme Sector Development .................................................................................. 42
8.3. Setting Up ‘Msme Punjab’ ...................................................................................................................... 42
8.4. Setting Up Of District Level Single Window System For Msme Units..................................................... 43
8.5. Msme Cluster Identification ................................................................................................................... 43
8.6. Msme Cluster Development Programs .................................................................................................. 44
8.7. Access To Technology For Msmes .......................................................................................................... 44 4 | Page
8.8. Access To Markets For Msmes ............................................................................................................... 45
8.9. Access To Infrastructure For Msmes ...................................................................................................... 46
8.10. Access To Finance For Msmes ................................................................................................................ 46
8.11. Growth Accelerator Services For Msmes ............................................................................................... 46
8.12. Common Environment Infrastructure In Msme Clusters ....................................................................... 46
8.13. Revival And Rehabilitation Of Sick Msme Units ..................................................................................... 46
8.14. Mse Facilitation Councils At District Level.............................................................................................. 47 Chapter 9: Nurturing Innovation And Startup & Entrepreneurship .......................................... 48
9.1. State’S Approach To Innovation And Entrepreneurship ........................................................................ 48
9.2. Startup Punjab - Building A Strong Eco-System For Startups ................................................................. 48
9.3. University And College Incubators ......................................................................................................... 48
9.4. Punjab Innovation Fund ......................................................................................................................... 49
9.5. Incubation Centres By Other Government Organizations...................................................................... 49
9.6. Private Incubators And Accelerators ...................................................................................................... 49
9.7. Setting Up Of Sector Specific Incubators ................................................................................................ 49
9.8. Creation Of Common Infrastructure And Co-Working Spaces ............................................................... 49
9.9. Special Focus On Women Entrepreneurship .......................................................................................... 50
9.10. Special Focus On Sc/Other Gender/Differentially Abled Entrepreneurship........................................... 50 Chapter 10: Skill Development .................................................................................................... 53
10.1. General ................................................................................................................................................... 53
10.2. Punjab Skill Development Mission – Nodal Agency For Skill Development ........................................... 53
10.3. Identifying The Skill Gap In Various Clusters .......................................................................................... 53
10.4. Convergence Of Various Skill Development Schemes ............................................................................ 53
10.5. Setting Up Of University Of Skills And Vocational Education ................................................................. 53
10.6. Setting Up Of New Multi Skill Development Centres ............................................................................. 53
10.7. Setting Up Of Cluster Specific Skill Development Centres ..................................................................... 53
10.8. Skill Training By Large Employers ........................................................................................................... 54
10.9. Skill Registry ........................................................................................................................................... 54 Chapter 11: Ease Of Doing Business ............................................................................................ 55
11.1. Invest Punjab .......................................................................................................................................... 55
11.2. International Desk .................................................................................................................................. 55
11.3. Business First .......................................................................................................................................... 55
11.4. Online Single Window System For Laying Of City Gas Pipeline .............................................................. 56
11.5. Reforms In The Processes Of Core Departments Providing Services To Industries ............................... 56
11.6. Deemed Approval For Various Regulatory Clearances........................................................................... 56
11.7. Reforms In Registration Of Property ...................................................................................................... 56
11.8. Reforms In Labour Regulations .............................................................................................................. 57
11.9. Central Inspection System ...................................................................................................................... 58
11.10. Strengthening Of Third-Party Certification ............................................................................................ 58
11.11. Rationalizing Nocs .................................................................................................................................. 58
11.12 Additional Services Under The Punjab Transparency And Accountability In Delivery Of Public Service Act, 2018 ............................................................................................................................................................... 58 Chapter 12: Fiscal Incentives ....................................................................................................... 60
12.1. General Provision ................................................................................................................................... 60
12.2. Incentives To Existing Units For Expansion With Or Without Modernization/Diversification ............... 60
12.3. Freezing Of Power Tariff For Five Years ................................................................................................. 61
12.4. Framework For Fiscal Incentives And Other Support Measures ............................................................ 62
12.5. Categorization Of Units In Startup, Msme And Large Units ................................................................... 62
12.6. Thrust Sectors Of The State .................................................................................................................... 64
12.7. Fiscal Incentives For Startup Units ......................................................................................................... 66
12.8. Fiscal Incentives For Msme Units ........................................................................................................... 67 5 | Page
12.9. Fiscal Incentives For Large Units ............................................................................................................ 71
12.10. Fiscal Incentives For Units In Thrust Sectors .......................................................................................... 72
12.11. Fiscal Incentives For Anchor Units.......................................................................................................... 74
12.12. Special Incentives For 10 Early Bird Units In The New Industrial Parks Approved By The State ............ 77
12.13. Support For Infrastructure Related Schemes ......................................................................................... 77
12.14. Reduction In Stamp Duty For Industrial Units On Registered Mortgage................................................ 79
12.15. Special Relief Package For Sick Msme Units ........................................................................................... 79
12.16. One Time Special Relief Package For Sick Large Units............................................................................ 80
12.18. Special Incentives For Border Zones And Kandi Area ............................................................................. 81
12.19. Incentive For Products Not Covered Under Gst Regime ........................................................................ 81
12.20. Fiscal Incentives To Industrial Parks ....................................................................................................... 81
12.21. Fiscal Incentives For New Ultra Mega And Mega Projects ..................................................................... 82
12.23. Negative List Of Industries ..................................................................................................................... 83
12.24. Sun Set Clause And Transition From Ibdp 2017 ..................................................................................... 83
12.25. Exclusions In The Exemption From Electricity Duty And Stamp Duty .................................................... 85
12.28. Special Fiscal Incentives To Existing Industries To Switch Over To Paddy Straw Fuel Based Boilers ..... 85 Chapter 13 - Fixed Capital Investment (Fci) For The Purposes Of Fiscal Incentives ................ 88 Chapter 14 - General Eligibility Conditions For Availing Fiscal Incentives & Penalty ............... 95 Chapter 15 – General Procedure And Authorities For Sanction Of Fiscal Incentives/ Subsidies ........................................................................................................................................................ 98 Chapter 16 Procedure For Availing Fiscal Incentives ...............................................................105 Chapter 17: Non-Fiscal Incentives .............................................................................................140
17.1 General Provision.................................................................................................................................140
17.2 Department of Housing & Urban Development..................................................................................140
17.3 Department of Tourism & Heritage Board...........................................................................................140
17.4 Department of Local Government.......................................................................................................141
17.5 Department of Labour.........................................................................................................................142
17.6 Department of Transport....................................................................................................................142
17.7 Department of Food & Civil Supplies...................................................................................................142
17.8 Department of Industries & Commerce/PSIEC....................................................................................142 Chapter 18: Stakeholder Engagement And Policy Implementation Unit ...............................144
18.1. Stakeholder Engagement ..................................................................................................................... 144
18.2 Strategic Plan And Performance Indicators.......................................................................................... 145
18.3 Policy Implementation Unit.................................................................................................................. 145
18.4 Governance Mechanism For Implementation Of The Policy................................................................ 146 Annexure -A Net Gst Formula In Accordance With Clause No. 12.26 .......................................149 Annexure -B Illustration For Clause 12.8(B)(7), 12.9(2), 12.10(2) And 12.11(4) ......................155 Caf– I (Common Application Form For Incentive (Caf) – New Unit ..........................................156 Form-Sd-Application For Claiming Incentives Of Exemption/Reimbursement Of Stamp Duty ......................................................................................................................................................160 Form – Clu/Edc: - Application For Exemption/Reimbursement Of Clu/Edc ............................162 Form– Ed: Application For Exemption From Electricity Duty ...................................................164 Form Ed1: Electricity Duty ..........................................................................................................165 Form Pt: - Application For The Property Tax Exemption ..........................................................166 Form Pt1: - Performa For Detail Of Property Tax Of Building...................................................167 Form-Sgst:-Investment Subsidy By Way Of Reimbursement Of Net Sgst/Vat ........................168 Form Sgst 1: - Reimbursement Of Sgst/Vat (To Be Obtained Online Directly By Gmdic From Concerned Aetc Through Ipbfp In Terms Of Clause 16.5.4(Iii)) ................................................170 Form-Is:- Interest Subsidy To Msmes ........................................................................................172 6 | Page Form: Cl: - Additional State Support Under Clcss ......................................................................173 Form Cgtmse: - Additional Support Under Cgtmse ..................................................................174 Form Ex: - Financial Assistance For Emerge Exchange Platform Set Up By Nse ......................175 Form – Ta: - Reimbursement Of Cost Of Technology Acquisition. ...........................................176 Form Zed:- Additional Support To Zero Effect Zero Defect (Zed) Scheme ..............................177 Form-Zed4: Certificate From Quality Council Of India ..............................................................178 Form Ea: - Reimbursement Of Expenses Incurred For Energy/Steam Audit To Msmes .........179 Form Wa : Reimbursement Of Expenses Incurred For Water/Enviornment Audit To Msmes ......................................................................................................................................................183 Form Sa: Reimbursement Of Expenses Incurred For Safety Audit To Msmes .......................185 Form Ec: Assistance For Environment Compliance For Msmes .........................................186 Form-Pr: -Reimbursement Of Expenses Incurred For Patent Registration..............................187 Form Pcr: Additional Support For Performance And Credit Rating Scheme ...........................189 Form Mda: Market Development Assistance For Micro And Small Enterprises. ....................192 Form Mda1: Application Form For Claim Of Marketing Support .............................................193 Form – Dms: - Reimbursement Of Cost Of On Boarding E -Commerce Platform Of Nsic.......197 Form Gw: - Application For The Exemption Of Ground Water Charges For New Msme Units ......................................................................................................................................................198 Form Y:- Application For Award Scheme ...................................................................................199 Form In1- Application For Registration As Incubator ...............................................................200 Form-Sr - Registration Of Startup...............................................................................................212 Form Start : Application Format For Claiming Rental Lease Subsidy By Start-Ups. ...............216 Form: Sf - Seed Funding ..............................................................................................................217 Form-Fp: - Reimbursement Of Various Taxes On Food Processing Industries ........................220 Form Specs:- Additional Capital Subsidy To Esdm ....................................................................221 Form: It :- Capital Subsidy To It/Ites, Micro And Small Manufacturing Units In Thrust Sector And Export Oriented Units And, Micro And Small Service Enterprises Engaged In Providing Research And Development Activities .......................................................................................222 Form – Bz: - First Two Unit In Border Zone/Kandi Areas. ........................................................224 Form: Mu: Migration From Ibdp — 2017 To Ibdp-2022. ..........................................................225 Form: Rt: Retaining Ibdp 2017....................................................................................................227 Form Cida:-Critical Industrial Infrastructure Development Scheme (Ciids).............................229 Form Cd: - Assistance Under State Mini Cluster Development Programme ...........................231 Form-S(A) – Revival Of Sick Units ...............................................................................................233 Form-S(B) – Revival Of Sick Units ...............................................................................................234 Form 1 : Declaration ...................................................................................................................235 Form 2:Ca Certificate Regarding Fixed Capital Investment ......................................................236 Form 3: Certificate From Financial Institution Regarding Fixed Capital Investment ...............237 Form 4: Item Wise, Bill Wise Details Of Expenditure On Land, Building And Plantand Machinery ....................................................................................................................................238 Form 5: Certificate From Financial Institution/ Scheduled Commercial Bank Regarding Loan ......................................................................................................................................................239 7 | Page Form 6: Certificate From Financial Institution/ Scheduled Commercial Bank Regarding Loan ......................................................................................................................................................240 Form 7:Ca Certificate Regarding Expenditure For Raising Fund At Nse ...................................241 Form 8: Ca Certificate From Mer ch a nt Br ok er Regarding Expenditure For Raising Fund At Nse ...............................................................................................................................................242 Form 9: Ca Certificate For The Expenditure Incurred In Technology Acquisition ..................243 Form 9a: Ca Certificate For The Expenditure Incurred In On Boarding On E- Commerce Plateform .....................................................................................................................................244 Form 10: Ca Certificate Of Expenditure Incurred On Energy/Water /Safety Audit .................245 Form 11: Certificate From Regional Officer Of State Pollution Control Board ........................246 Form 12: Ca Certificate For Claiming Assistance For Environment Compliance .....................247 Form 13:Ca Certificate Of Expenditure Incurred For Acquiring Patent Registration ..............248 Form 14:Ca Certificate Of Expenditure Incurred For Acquiring Credit Rating .........................249 Form 15:Ca Certificate In Respect Of Expenditure Incurred For Acquiring Zed Certification.250 Form 16: Ca Certificate Regarding Fob Value Of Goods Exporters ..........................................251 Form: 17: Details Of Exports .......................................................................................................252 Form 18: Certificate From District Mandi Officer......................................................................253 Form: 19: Special Power Of Attorney ........................................................................................254 Form: 20-Copy Of The Resolution Passed..................................................................................255 Form: 21-Affidavit .......................................................................................................................256 Form: 22-Details Of Employees ..................................................................................................257 Form: 23- Ca Certificate In Respect Of Employment Generation Subsidy ...............................258 Form: 24 - Ca Certificate Regarding Reimbursement Of Net Sgst ............................................259 Certificate Of Eligibility For The Grant Of Exemption From Payment Of Stamp Duty ............261 Certificate Of Eligibility For The Grant Of Exemption From Payment Of Clu/Edc ...................262 Certificate Of Eligibility For The Grant Of Exemption From Payment Of Property Tax ...........264 Eligibility Certificate - Ed .............................................................................................................266 Certificate Of Eligibility For The Grant Of Exemption From Payment Of Electricity Duty (In Case Of Expansion With Or Without Modernization/Diversification) .....................................267 Certificate Of Eligibility For The Grant Of Investment Subsidy By Way Of Reimbursement Of Vat/Net Sgst ................................................................................................................................269 Additional Eligibility Certificate For The Grant Of Investment Subsidy By Way Of Reimbursement Of Vat/Net Sgst ................................................................................................270 Annual Production Return For The Year ________...................................................................271 Bank Guarantee...........................................................................................................................273 Optimal Land Use Certificate......................................................................................................276 Passbook ......................................................................................................................................277 8 | Page List of Acronyms AKIC Amritsar Kolkata Industrial Corridor AOA Articles of Association 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 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 DPIIT Department for Promotion of Industry and Internal Trade BZ Border Zone ECS Equated Car Space EDC External Development Charges EDFC Eastern Dedicated Freight Corridor EOU Export Oriented Unit ESDM Electronic System Design and Manufacturing FAR Floor Area Ratio FCI Fixed Capital Investment FDDI Footwear Design & Development Institute FIIP(R) 2013 Fiscal Incentives for Industrial Promotion (Revised) 2013 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 9 | Page IIDS Industrial Infrastructure Development Scheme IIT Indian Institute of Technology ILDP Integrated Leather Development Programme IPBFP Invest Punjab Business First Portal 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 MOA Memorandum of Association 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 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 PEDA Punjab Energy Development Agency 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 10 | Page PSIDC Punjab State Industrial Development Corporation Ltd PSIEC Punjab Small Industries and Export Corporation PSPCL Punjab State Power Corporation Limited PIBDB Punjab Industrial and Business Development Board QMC Quality Marking Centre QMS&QT T 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 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 VCF Venture Capital Fund ZED Zero Effect Zero Defect 11 | Page Chapter 1: Introduction
1.1. Punjab – The Land of Opportunities ▪ Punjab, a state in the northwest region of India, is an economic powerhouse - with 1.5% of India’s land area, Punjab contributes 2.5 % to India’s GDP.
▪ Punjab is one of the leading States in the country in providing Ease of Doing Business with Government of India (DPIIT) recognizing it as a ‘Top Achiever ’based on the assessment of Business Reforms Action Plan (BRAP) 2020.
▪ Invest Punjab has been ranked as top performing Investment Promotion agency with 100% implementation score. This has enabled the State to have best ecosystem for attracting investment, creating employment opportunities and adding value to the state GDP.
▪ The State is known for its spirit of enterprise, which is bolstered by the warm and welcoming people of Punjab. It is this spirit of dynamism that has allowed Punjab to become the landing place for investors coming to India with many international companies making Punjab as their second home. Punjab is amongst the top 10 states in attracting FDI. Punjab is also the preferred investment destination for international companies looking to launch in India or exploring options to expand their footprint in the country. Many of these projects have come from foreign investors and MNCs from 13 countries including USA, UK, Japan, South Korea, Italy, Germany, France, Denmark, Netherlands, Spain, UAE, Singapore, and New Zealand.
▪ Punjab is ranked 3rd in Ease of Logistics in the country (2021) as per the Govt. of India Logistics Ease across Different States Report. It will be connected to both the Eastern & Western Dedicated Freight Corridors. In addition, there are 10 ICDs, 6 Private Freight Terminals & 2 Container Freight Stations in Punjab along with a land and rail port in Amritsar and 3 multi-modal logistics parks in Ludhiana.
▪ Punjab is also ranked as leader category in the Startup Ranking Framework in the year 2022, also, ranked 8th in the overall export Preparedness Index and 4th in the land locked states in the export Preparedness Index.
▪ Some of the key attributes of Advantage Punjab include:
o Robust Infrastructure:
- Home to 2 international airports (Mohali and Amritsar) and 4 domestic airports (Bathinda, Ludhiana, Pathankot, and Jalandhar).
- A new international airport coming up in Ludhiana at Halwara shortly.
- Twice the average rail density in the country - 100% road connectivity to all towns and villages o Peaceful Labour:
- No labour unrest faced by any industrial units over 3 decades.
- 24 Hours shifts across genders.
12 | Page o Punjab is a Peaceful State with one of the lowest rates of cognizable crime amongst major industrial States in India.
o Punjab also offers other cutting-edge advantages such as a peaceful workforce that is also highly skilled. It is also home to prestigious educational institutions such as IIT, IIM, ISB, NIPER, IISER, NABI, PAU etc.
▪ The State has a business-centric approach which has resulted in policy initiatives such as the Punjab Anti-Red Tape Act 2021 (reduces the burden of compliance on citizens & businesses by at least 50% while also mandating the availability of all G2B & G2C services online), Deemed Approvals (online automatic clearances will be issued on the expiry of stipulated time-period, based on self-certification by industry unit), Auto- Renewals etc.
▪ The state has enacted Punjab Right to Business Act 2020 to provide ease of doing business for New and existing Micro, Small and Medium Enterprises through an enabling eco system for self-declaration, exemptions, speedier approvals and inspections to establish and operate in the state.
▪ The state has robust Telecom Policy to provide time bound approvals for installing Telecom Towers through Invest Punjab Business First Portal for Roof Top Towers, Underground telecom cables, laying of optical fibre cable including aerial fibre with towers and 5G Microcells.
▪ All of these have statutory backing in order to provide stability and predictability to businesses operating in the State.
▪ The State of Punjab is planning to undertake significant reforms in the coming times which include simplifying processes and implementing technology-based solutions.
These reforms will support businesses throughout key stages in their business lifecycle.
▪ Punjab Government is ready to extend its full support to industries in their endeavours.
1.2. Punjab Industrial and Business Development Policy 2022
1.2.1. The Punjab Industrial and Business Development Policy 2022 envisage transforming Punjab into a major industrial and export hub. The Policy also envisions developing the thrust sectors of Punjab into world leaders in their respective fields by 2027.
1.2.2. The Punjab Industrial and Business Development Policy 2022 aims to facilitate manufacturing & services sector by creating an investor-friendly environment in Punjab. It focuses on the development of sustainable business models that can withstand competition from other businesses within India and the world.
1.2.3. The policy envisages setting up of a Policy Implementation Unit to ensure necessary support for the implementation of various aspects of the policy.
13 | Page
1.3. Applicability of the Policy
1.3.1. The policy will be applicable for 5 years from 17-10-2022 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.
1.3.2. Units submitting their CAF under this policy after 17-10-2022 shall bring their unit into commercial production / expansion production within 5 years from the date of filing of CAF.
1.3.3. A number of incentives have been provided to the existing MSMEs (in commercial production before or after the notification of this policy) not linked with new investment or expansion of project as prescribed at Sr. No.
6,9,10,11,12,13,14,15,16,17,20 and 22 in clause 12.8 of the policy. An eligible unit can apply for these incentives after registration on the portal provided it has implemented the relevant incentive scheme under clause 12.8 after the notification of this policy.
1.3.4. The reference to the State in the Policy is reference to the State Government and its relevant departments and agencies as specified in this Policy.
14 | Page Chapter 2: Vision, Mission and Goals
2.1 Vision Fostering a Progressive, Innovative and Sustainable Industrial & Business Ecosystem in Punjab by transforming it as the first choice for doing business.
2.2. Mission
(i) Promoting Punjab as the preferred Investment Destination by accelerating industrial growth and job creation
(ii) To accelerate growth of Startups and promoting entrepreneurship by nurturing innovation, improving competitiveness and enhancing capability
(iii) To accelerate growth of MSMEs.
(iv) To develop world class infrastructure for the industry including quality and affordable power
(v) To facilitate availability of skilled manpower to the Industry
(vi) To create opportunities for moving up the Global Value Chain
(vii) To bring synergy between State programs and Central schemes
(viii) Achieving Global scale, Standards and competitiveness in Products and services
(ix) To have a Circular and sustainable economy
(x) To align targets with Sustainable Development Goals set by UN.
2.3. Goals
2.3.1. To accelerate industrial growth and job creation
(i) To attract maximum investment and create maximum employment in 5 years
(ii) To increase the Share of Secondary and Tertiary sector in GSDP.
(iii) To enable Job Creation – To increase the employability of the youth through skilling and increase employment opportunities in the State.
2.3.2. To develop world class infrastructure and bring anchor units
(i) To facilitate the development of at least 20 Rural Industrial Clusters and, 15 Industrial Parks in the State.
(ii) To attract at least one Ultra – Mega/Mega/anchor unit in various Manufacturing and Service Industry Sectors 15 | Page
2.3.3. To provide quality and affordable power to the Industry
(i) To provide power at affordable tariff for 5 years to the Industry
(ii) To upgrade power supply infrastructure to all the industrial areas to provide quality and uninterrupted power.
(iii) To strengthen the existing skilling centres including vocational training institutes/ITIs etc.
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 5 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 facilitate setting up of 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 educational institutions
(iv) To facilitate setting up of 50 Entrepreneurship Development Centres in 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 centre 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 scale up Invest Punjab Business First portal for a single unified interface to the Industry and Businesses for all regulatory and fiscal services throughout their lifecycle and its Integration with National Single Window System.
16 | Page
(ii) To re-engineer the processes of 7 core departments on priority namely Industries & Commerce, Power, Science Technology & Environment (Punjab Pollution Control Board), Labour, Housing & Urban Development, Local Government and Taxation to make them extremely simple, industry friendly and completely digital
(iii) To simplify and reduce checklist of various regulatory services at all levels of processing.
2.3.8. To build institutional capacity and enhance institutional linkages
(i) To restructure existing Entities/Agencies/Departments and empower them through statutory powers to translate the vision and mission into reality
(ii) Capacity building of Policy Implementation Unit shall 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 the liaison at Delhi, a strong team to liaison across the Central Ministries and Agencies ensuring the 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
(iii) GOBARdhan Scheme: The GoI scheme for development of new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-agro Resources Dhan) Scheme will be utilized by State Government to promote Circular Economy by Setting up of compressed biogas (CBG) plants.
(iv) Unity Mall: The GoI scheme of Unity Mall will be utilized by State Government to encourage Setting up of Unity Mall in the State Capital or at Prominent Tourism Centre for promotion and sale of ODOPs, GI Products and other handicraft products.
2.3.10. To boost Exports from the State
(i) To ensure that Punjab is amongst the Top 10 States in terms of value of exports
(ii) To ensure that Punjab is amongst the Top 3 Landlocked States in terms of value of exports 17 | Page Chapter 3: Key Strategic Focus Areas
3.1. Ten Core Strategic Focus Areas 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 Ten core strategic Focus areas for the growth and promotion of industries in the State
3.2. Infrastructure The State would develop quality industrial infrastructure, digital infrastructure and connectivity including availability of fast internet and township/industrial township dedicated to a country for attracting more foreign investments 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 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. Large Enterprises Large Enterprises including Anchor units, Mega projects and Ultra Mega Projects leads to development of MSMEs /ancillaries and allied economic activities. The state would facilitate Implementation of such Large Projects in fast track mode through Invest Punjab.
3.6. Nurturing Innovation and Startup & 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 18 | Page 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 The State dedicated agency startup Punjab is responsible for spearheading its strategy and action plan for promotion of Startup and Entrepreneurship and for processing incentives to startups.
3.7. 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 ensuring the supply of skilled youth to the Industry.
3.8. Ease of Doing Business The State recognizes the utmost need for providing conducive environment to the industry and businesses in the State. The State shall strengthen Invest Punjab and its “Invest Punjab 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 Industry and Investment Promotion in all districts 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.
3.9. 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 non-fiscal incentives to promote industrial growth.
3.10. Export Promotion State Export Action Plan shall be Implemented in next five years with an aim to double the export in next five Areas. Dedicated Help Desk shall be set up in each DICs to hand hold the export of Potential Product including ODOP.
19 | Page
3.11. Logistic The State recognizes the enormous potential in the sector and will provide necessary modern infrastructure, technology and ecosystem which will facilitate the State of Punjab in becoming favourite destination for warehousing and logistic sector in country. A separate State Logistic Policy shall be notified in line with the PM Gati Shakti Programme.
3.12. Stakeholder Engagement Industrial growth and development requires engagement with 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.
3.13. Grievance Redressal The state would set up a Grievance Redressal Mechanism at District and State Level to resolve issues of Industry and Business Enterprises. It will have participation of members from Industry.
20 | Page Chapter 4 - General Definitions
4.1. Approved Industrial Park Approved Industrial Park means an Industrial area, Focal Point, Industrial Estate, Mixed– use Industrial Park, SEZ, Textile Park, Biotech Park, IT Park, Industrial Township, Growth Centre, Food-Processing Park, Logistic Park or any other similar project approved by the Competent Authority of the State Government or the Central Government as the case may be.
4.2. Approved Project Cost Approved Project Cost means the cost of the project on different components as approved by the term loan lending institution or in case of joint financing, by the lead term loan lending institution.
In respect of self-financed projects, the Approved Project Cost will be as approved by the Punjab State Industrial Development Corporation / SIDBI/State empaneled agencies/ CAG empaneled CA
4.3. Aided unit The unit availing term loan from Scheduled Commercial Banks/ Financial Institutions recognized by Reserve Bank of India for setting up the unit is treated as Aided unit.
4.4. Border District Border district means a district with an international boundary.
4.5. Border Zone Border Zone is the area within 30 Km of international boundary as certified by the concerned revenue authority.
4.6. Date of Commencement of Commercial Production (DCP)
(i). The date on which commercial production has started, as indicated in the UAM/Part B in respect of Micro, Small & Medium Enterprises and IEM/IL in case of Large Industries, as the case may be.
(ii). DCP will be determined on the basis of the documentary evidence i.e. first sale invoice, to be provided by the investor. Other documents such as VAT/SGST returns, power bills, bills of purchase of machinery etc. may be considered, if required by the Scrutiny Committee.
(iii). In case of Phased production/Expansion/Diversification/Modernization, the date of production, as declared by the promoter after capitalization of complete investment in the books of accounts for relevant phase/ Expansion/ Diversification/ Modernisation shall be reckoned as date of commercial production of particular case of Phased production/ Expansion/ Diversification/ Modernization.
21 | Page
(iv). In case of any dispute on DCP between the Unit and the Department, State Level Committee (SLC) will review and its decision shall be final.
4.7. Detailed Project Report (DPR) Detailed Project Report means a document, depicting physical financial and non-financial projections relating to the unit, duly appraised/ approved by a financial institution or a scheduled bank while sanctioning term loan and /or working capital limit. In case of units which had neither availed term loan nor working capital, such document shall be appraised and approved by Punjab State Industrial Development Corporation/SIDBI/State empanelled agencies/CAG empanelled CA’s.
4.8. Department Department means the Department of Industries & Commerce, Punjab.
4.9. Effective date Effective date of the policy shall be 17-10-2022
4.10. Electricity Duty Electricity duty is the duty levied and paid to the State Government on the electricity supplied by PSPCL or any licensee or electricity trader or generating company to a consumer, as the State Government may notify from time to time, with the proviso that any contributions made out of the Electricity Duty levied, such as those deposited in the social security fund, Infrastructure Development Fund etc., shall not be exempted.
4.11. Enterprise Value Enterprise value means a price which acquirer pay for another firm. In financial terms it is arrived by adding Market capitalization+ Market value of Preferred equity + Market Value of debt+ minority Interest- Cash and Cash equivalent
4.12. Exporting Unit Exporting Unit mean an industrial unit exporting at least 25% of its manufactured Products in markets outside India with minimum value addition of 33% against direct receipt of Foreign exchange or through Merchant Exporters including PSIEC or any other trading house and registered as such with competent authority like DGFT.
4.13. GST Goods and Services Tax.
4.14. Innovative Activities A broad sense of new technologies, but also new markets, industrial structures, or exploitation of previously underutilized natural resources.
22 | Page
4.15. Kandi Areas Area notified by Government of Punjab vide letter no. 1462-SMAC-1(AC)-73/33147 dated 31/10/1973 as amended from time to time
4.16. New Unit
(i). A New Unit will ordinarily be set up at a new site along with separate VAT/GST registration.
(ii). An existing enterprise which sets up a New Unit in the same premises shall be considered for incentives provided the New Unit is located in a distinct building/ structure, provided the unit is having separate VAT/GST number.
(iii). If any existing Industrial Enterprise sets up a new unit for the same end product/new product at different location in the same name it will be treated as new Unit for the purpose of sanction of various incentives, provided the new unit has separate VAT/SGST Registration number.
(iv). If an existing unit undertake expansion at different location then it shall be treated as expansion case if it has same GST number, the locations are separated by a canal/ Road or are adjoining each other and manufacturing process at both the location is interlinked. In case of any other specific case the matter shall be decided by committee constituted under the chairman ship of Director of Industries and Commerce, Punjab.
4.17. Policy Policy shall mean Industrial and Business Development Policy 2022 as amended from time to time.
4.18. Property Tax Property tax is the local tax as levied by urban/rural local self-government/authority of the area.
4.19. Self-Financed Unit The Unit set up with own funds/ unsecured loans without any involvement from Commercial Banks / Financial Institutions etc. is treated as Self-Financed Unit.
4.20. Stamp Duty Stamp Duty is duty payable as levied in schedule 1-A of Indian Stamp Act on transfer of property. It shall not include any other charges such as registration fee, infrastructure development cess, social security fee/cess etc. levied under Schedule 1-B and Schedule 1-C of the Act.
4.21. State Government 23 | Page Any reference to the State Government in this policy shall mean Government of Punjab in the Department of Industries and Commerce.
4.22. State Level Committee State Level Committee (SLC) means the Committee under the Administrative Secretary, Department of Industries and Commerce, Punjab set up under this Policy for sanction of incentives.
4.23. District Level Committee District Level Committee (DLC) means the Committee under Deputy Commissioner of the district set up under this Policy for sanction of incentives.
4.24. Unit Unit is a project set up by a Legal entity in the State of Punjab, to manufacture a product(s) or provide a service(s).
4.25. Unit under SC Category A Unit with100% SC entrepreneur/s as proprietor/partner/directors, as the case may be, belonging to SC category as notified by the Government of Punjab from time to time.
4.26. Unit under Women Category A unit with 100%-woman entrepreneur/s as proprietor /partner/directors, as the case may be.
4.27. Value Added Tax (VAT) VAT is a tax as levied under The Punjab VAT Act 2005, as amended from time to time.
24 | Page Chapter 5 – Industry Specific Definitions
5.1.1 General All Manufacturing products classified under National Industrial Classification (NIC) 2008 are eligible under the Policy except those specified in the negative list in the Policy. In addition, following definitions of specific sectors will be followed for the Policy.
5.1.2. Electronic System Design and Manufacturing The entire value chain of all electronic verticals/products covered under the National Policy on Electronics and related notifications issued by the Department of Electronics & Information Technology (Deity), Ministry of Communication & Information Technology, Government of India from time to time.
5.1.3. Aerospace & Defence Manufacturing
(i) Aerospace Industry shall include the units in the aerospace value chain from raw material to finished products which add value to aerospace products/ intermediates/ residues both hardware and software. It shall include inter alia civil & military aircrafts, rotorcrafts, helicopters, business jets. This also includes design, research, development and prototyping. Further, it will also include guided missile component, UAVs and related components, propulsion units, overhaul machinery, rebuilding, manufacturing components etc.
(ii) Defence Manufacturing enterprise means manufacturing enterprises which are supplying to Ministry of Defence, Government of India or their equivalent in foreign countries at least 50% of value of their finished goods as average of last three years OR should have secured defence order worth at least INR 10 Crore as average of last three years, from Ministry of Defence, Government of India or their equivalent in foreign countries. However, in case of a new unit, a bank guarantee equivalent to the amount of CLU/EDC for a period of 2 years after commercial Production shall be obtained. The new unit shall also file their annual production return by 30th June of every year reporting the defence order worth Rs 10 crores as an average for the next three years.
(iii) The definition shall cover those units also which are supplying component of worth at least 50% of value of their finished goods to the units who in turn is supplier (as per terms laid down in above para) to Ministry of Defence, Govt. of India or their equivalent in foreign countries
5.1.4. Energy Storage Devices Energy Storage Devices shall mean Energy storage batteries like Lithium-ion, Lithium Polymer, Nickel Cadmium, Nickel Metal Hydride (NiMH)used for Mobile Phones, Laptops, IPad, Tablets and other such electronic devices. It will also include batteries for E- vehicles and Hydrogen fuel cell.
25 | Page
5.1.5. Technical Textiles Technical Textiles are defined as textile materials and products used primarily for their technical performance and functional properties rather than their aesthetic or decorative characteristics. Depending on the product characteristics, functional requirements and end –use, applications, the highly diversified range of technical textiles have been grouped into 13 sectors, Application-wise.
i. Agrotech (Agriculture, Horticulture and Forestry) ii. Buildtech (Building and Construction) iii. Clothtech (Technical components of shoes and clothing) iv. Geotech (Geo-textiles and Civil Engineering) v. Hometech (Components of furniture, household textiles and floor overrings) vi. Indus tech (Filtration, cleaning and other industrial usage) vii. Meditech (Hygiene and Medical) viii. Mobiltech (Automobiles, Shipping, Railways and Aerospace) ix. Ouko tech (Environmental Protection) x. Packtech (Packaging) xi. Protech (Personal and Property Protection) xii. Sporttech (Sport and Leisure) xiii. Defecates (Textile for defence use) xiv. Any other product as notified by Ministry of Textiles, Government of India, time to time
5.1.6. Industry 4.0 i. Industry 4.0 is integrating new technologies – like Internet of Things (IoT), cloud computing and analytics, artificial intelligence and machine learning - into manufacturing production processes and operations, ushering in a new era of ‘smart manufacturing’ ii. The following committee shall examine the proposal for Industry 4.0 and the decision of the Committee shall be final: - a. Administrative Secretary, Industries & Commerce Chairman b. Administrative Secretary, Science & Technology Member 26 | Page c. Director of Industries & Commerce, Punjab Member d. Chief Executive Officer, PBIP Member e. Director, IIT Ropar Member f. Dean, Punjab Technical University, Jalandhar Member g. Head, STPI, Mohali Member h. Head, CII, Northern region Member i. General Manager, Institute for Auto Parts, Ludhiana Member j. General Manager, District Industries Centre Member- Secretary
5.1.7. IT and ITES
(i). IT and ITES industry comprises of IT Software and ITES companies, AVGC (Animation, Visual Effects, Gaming and Comics) Units, BPO, Call centres, Internet and E-mail Service Providers, E-commerce and EDI Services, Electronic Data Centre Services, Knowledge based industries and any professional services that are provided or delivered using the resources of ICT.
(ii). The fiscal incentives will also include the incentives in the proposed Information Technology Industry policy as and when approved and notified by the Government.
5.1.8. Life Sciences It shall mean units carrying out Research & Development activities including Contract research & Clinical research in the field of Pharmaceuticals, Biotechnology, biology, genomics, proteomics, bioinformatics, and biomedical.
5.1.9. Skill Development Centres, Incubation Centres, Accelerators
(i) Skill Development Centre A unit set up to impart skill Training under National Skill Qualification Framework with an aim of providing gainful employment to the youth or setting up of self-employment ventures.
(ii) Incubation Centres An incubator is an enterprise that is set up to provide office space, equipment and mentoring assistance and other such support services for Startups.
(iii). Accelerators It shall include incubation centres, which provide a short duration very focussed support to Start-ups to help them scale up.
27 | Page
5.1.10. Healthcare Healthcare unit for the purpose of fiscal incentives shall mean hospital (including Hospital attached with the Medical College and Medical Research Institute), Poly-clinic, Diagnostic Centre etc. with investment above Rs. 50 lakh in machinery & equipment.
5.1.11. Tourism & Hospitality Tourism and Hospitality unit for the purposes of fiscal incentives shall mean Healthcare Tourism, Caravan Tourism, Hotel, Eco-Tourism Units, Heritage Hotel, Units for MICE and Green Hotels as defined below:
(i) Health care Tourism It shall mean the rapidly growing practice of travelling across international borders to seek medical services including elective and essential procedures as well as complex surgeries etc in Allopathy, and it also includes services given in Homeopathy, Ayurveda, Yoga, Sidha and Naturopathy provided by certified/approved/recognized professionals with minimum investment of Rs 1 CR in machinery and equipment in such enterprise.
(ii) Caravan Tourism Caravan Tourism shall mean specially built vehicles being used for the purpose of travel, leisure, and accommodation viz. Recreational Vehicle (RV), Campervans, Motor Homes etc. for large group-based tourism in circuits/ destinations, which are not having adequate hotel accommodation identified by Department of Tourism GOI/state Govt.
(iii) Eco-Tourism Units Eco Tourism Units means those Units, which have been approved under the latest Eco Tourism Policy/Rules approved by Government of India.
(iv) Green Hotel Green Hotels are Hotels certified by Punjab Energy Development Agency (PEDA), which have obtained a green building certificate as per the approved standards.
(v) Heritage Hotel Heritage Hotel is a Unit as defined under ‘Guidelines for Classification of Heritage Hotels’ of Ministry of Tourism, Government of India. Heritage status will be assigned to the Units built before 1950 and having Heritage Architecture. Heritage status will be certified by a Committee constituted by the Department of Tourism, Punjab.
(vi) Hotel Any premises or part of a premise having twenty or more rooms, which are commercially let out, and provide lodging, with or without board, or serving any kind 28 | Page of eatables or beverages or other services, by way of business, for a monetary consideration subject to fulfilment of Punjab Urban Planning and Development Building Rules, 2021 also as under: - “Hotel” means any premises or part of a premises wherein more than fifty percent of the total covered area including temporary structure shall be under lodging or boarding in the form of rooms, presidential suites etc., which are commercially let out, and providing lodging with or without food, or serving any kind of eatables or beverages or other services by way of business, for a monetary consideration and having at least one restaurant with a capacity of minimum fifty guests or a bar or Banquet Hall Premises excluded from the definition of hotel for the purposes of this policy:
a) Any premises operated by a charitable, religious organization or an educational institution or a government institution.
b) Any premises operated by a society, a non-proprietary club, institution or other organization and used exclusively by and for the benefit of members of that society, club, institution or other organization.
c) Any premises or other type of accommodation unit which has less than twenty rooms for renting/leasing
(vii) Units for Meetings, Conferences and Exhibitions (MICE) A MICE unit is a hotel with facilities for a large group to hold Meetings including social and corporate gatherings, Conferences and Exhibitions and includes at least one Convention Hall or Exhibition Hall as described below:
a) Convention Hall should have audio-visual conferencing and high-fidelity recording equipment, etc. and skilled man power to operate and manage the facilities. The seating capacity of the hall should be minimum 300 persons.
(size of 500 sq. m) b) Exhibition Hall should accommodate at least 40 booths of 3 meters' x 3 meters' size excluding passages in between and around the booths. (size of 500 sq. m).
c) The Unit should include a restaurant with minimum 40 covers, parking facility for not less than 50 cars and 5 coaches and residential accommodation for at least 50 delegates/ participants as per the guidelines of Government of India for Star Category Hotels.
(viii) Farm stays/Homestays and Tented accommodation/camping units Farm stays/Homestays and Tented accommodation/camping units approved under the relevant scheme for Registration notified by Department of Tourism Punjab ( as amended from time to time) and exclusively catering to tourists, linked to 29 | Page online Booking portal and accepting regular bookings for a period of at least six month prior to the date of commencement of Incentives.
(ix) Adventure Tourism Projects Adventure Tourism Projects approved under the Adventure Tourism by the Department of Tourism Punjab developed on an area at least 50 Acres.
(x) Any other Projects/Units oriented towards Tourism and Hospitality Any other Projects/Units oriented towards Tourism and certified by empowered committee notified by Department of Tourism
5.1.12. Media and Entertainment Media and Entertainment for the purposes of fiscal incentives under the Policy shall mean Units specially created for tourists like amusement parks, adventure parks, tourism parks, any special theme parks, or infrastructure related to the promotion of cinematic tourism (like a film institute, a film city, film studios, theatres, Multiplex having atleast three cinema halls with total minimum seating capacity of 500 seats).
5.1.13. Logistics Logistics for the purposes of fiscal incentives under the Policy shall mean Units meeting the following criteria:
(i) Providing warehousing services i.e. warehousing including fulfillment facilities having a minimum of 10000 sq. ft. of storage area at the ground level), material handling, packaging facilities and transport facilities.
Provided only specialized transportation facilities e.g. specialized vehicles such as refrigerated transport vehicles, specialized construction sector vehicles, specialized chemical transportation vehicles, cryogenic vehicles will be counted for the purposes of FCI. It shall exclude normal transport vehicles, goods carriers, cargos, containers etc.
(ii). The facility shall not be for self-consumption.
(iii). The fiscal incentives will also include the incentives in the proposed Logistics policy as and when approved and notified by the Government
5.1.14. Maintenance, Repair and Overhaul (MRO) for Aviation and Defence Sector It shall mean all Units engaged in Maintenance, Repair and Overhaul (MRO) for Aviation and Defence Sector.
5.1.15. Industrial R&D labs, Industrial Testing Labs 30 | Page It shall mean Industrial R&D and testing labs with a minimum investment of Rs. 50 lakh in machinery, equipment & service related specialized software. The facility shall not be for self-consumption.
5.1.16. Engineering and Design Services It shall mean units providing Engineering & Design Services with a minimum investment of Rs. 50 lakh in machinery, equipment & service related specialized software. The facility shall not be for self-consumption.
5.1.17. Equipment Rental and Leasing (construction and industry related) It shall mean units providing Equipment and Leasing (construction and industry related) with minimum investment of Rs. 50 lakh in specialised machinery / equipment related to construction & industry. The same shall not be used for self-consumption.
5.1.18. Equipment Maintenance and Repair It shall mean units providing Equipment Maintenance and Repair (Industry related) services with minimum investment of Rs. 50 lakh in machinery, equipment & related specialized software used for equipment maintenance & repair. The same shall not be used for self-consumption.
5.1.19. Environment services (Sewage/ refuse disposal) It shall mean units providing Environment services such as solid waste disposal, sewage disposal etc. with minimum investment of Rs. 50 lakh in machinery & equipment. It shall include Common STPs & ETPs. The same shall not be used for self-consumption.
5.1.20. Common Utility services like Steam, Air, Water & STP It shall mean units providing Utility services such as steam, air, water & STP with minimum investment of Rs. 50 lakh in machinery & equipment. The same shall not be used for selfconsumption.
5.1.21. Printing presses, offset printing press, Flexi/Vinyl Printing, Flexo printing It shall mean a unit for printing press, offset printing press, flexi/vinyl printing, flexo printing. The unit shall have minimum investment of Rs. 50 lakh in machinery, equipment & related specialised software used for printing presses. This shall not be used for selfconsumption.
5.1.22. Design Studios It shall mean Units such as design studios for apparel and made ups with investment more than 50 lakhs on Machinery and equipment.
5.1.23. Auto servicing and / or repairing units 31 | Page It shall mean Auto servicing and/ or repairing units with investment more than 50 lakhs on machinery and equipment. This shall not be used for self-consumption.
5.1.24. Packaging Units It shall mean Packaging Units with investment more than 50 lakhs on machinery and equipment. This shall not be used for self-consumption.
32 | Page Chapter 6: Infrastructure
6.1. 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. All the infrastructural projects shall be dovetailed with the Programmes included under PM Gati Shakti Program.
6.2. Strengthening of PSIEC
6.2.1. 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 Strengthen PSIEC to spearhead industrial development including industrial infrastructure in the State.
6.2.2. 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 PSIEC for development, management and maintenance.
6.2.3. The PSIEC 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.
6.3. Development of New Industrial Parks and Industrial Land Banks
6.3.1. 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 PSIEC and HUD will develop 15 Industrial Parks covering general and sector specific requirements of various industrial sectors. The State would help identify and transfer various vacant lands and unutilized government lands for being developed as Industrial Parks. In addition, the PSIEC will also keep a ready shelf of land bank, earmarked after their due feasibility is established, which can be offered to the Industries.
6.3.2. 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.
33 | Page
(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.
(iii) In case of unutilized government lands, the same may be made available free of cost to the PSIEC for developing industrial parks.
(iv) 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 PSIEC.
(v) In order to reduce the development cost, the State would avail the financial assistance and Government of India grants available for development of Mega Food Parks, ESDM Parks, Amritsar Kolkata Industrial Corridor development, Integrated Leather Park, MSME infrastructure upgradation and other schemes for infrastructure development.
6.4. Development of Integrated Industrial Townships
6.4.1. 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.
6.4.2. 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.
6.4.3. 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.
6.4.4. 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.
6.4.5. 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.
6.4.6. Dedicated Country specific Integrated Industrial Township shall be developed to attract investment by allowing the infrastructure and other norms of that Country.
34 | Page
6.5. Development along Industrial Urban Corridors
6.5.1. 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.
6.5.2. 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.
6.5.3. 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.
6.5.4. 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.
6.5.5. 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 tourism which will develop these areas and provide jobs and growth opportunities to local people.
6.5.6. Development of Export Processing Zones and Special Economic Zones The state will explore setting up of Export Processing Zone and Special Economic Zone in accordance with similar Frame work of Govt of India to attract foreign and domestic Investment.
6.6. Core, Support and Social Infrastructure to be provided in Industrial Estates
6.6.1. 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:
35 | Page 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 and Digital infrastructure and including availability of fast internet
(viii) Gas
(ix) Public Parking space 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 Labour Housing
(ii) Healthcare and medical attendance services
(iii) ESI Dispensary/ Hospital
(iv) Schooling & Crèches
(v) Organized transport linkages
6.6.2. Provision for MSME units in the Industrial Estates The State would earmark adequate land for MSME units including land for development of flatted factories, industrial sheds, Labour housing and other measures to support MSME units. Further, the State would allow the plots to be used for duly identified service enterprises.
36 | Page
6.6.3. 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 Medical services in such Industrial Estates.
6.6.4. 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.
6.6.5. 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.
6.6.6. 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/promote Warehousing facilities near existing clusters, in case such demand exists.
6.7. Common Environment Infrastructure
6.7.1. 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 related constraints. This is particularly required to support MSME units in various industrial clusters.
6.7.2. 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.
6.7.3. The State shall utilize various GOI schemes such as MSME-CDP scheme of Ministry of MSME, Integrated Processing Development Scheme (IPDS) of Ministry of Textiles to avail 37 | Page 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 Mode with the following measures.
(i) Provide land for CETPs on lease
(ii) Exemption of Electricity duty on the operations of the CETP
(iii) Expedite release of any existing or future State shares in setting up of CETPs
6.7.4. Natural Gas The State will facilitate supply of Natural gas to the Industrial Parks through proper connectivity.
6.7.5. Availability of water for industrial use The State Ground Water Authority will 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.
6.7.6. 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.
6.8. Maintenance of Industrial Parks
6.8.1. Nodal Agency for maintenance The PSIEC 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 PSIEC will collect and retain the charges accrued from the industrial estates, focal points, etc. transferred to the PSIEC in the form of property tax, water, sewerage, solid waste and utilize the same for development, upgradation, maintenance and management of the industrial areas.
6.8.2. Levy of maintenance service charge The PSIEC 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.
6.8.3. Up gradation of Industrial Parks on PPP In order to ensure global standards and attract investment and management from the private sector in the maintenance of various industrial parks, the PSIEC will work out suitable model for upgradation and maintenance of industrial parks in PPP mode.
38 | Page
6.8.4. 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.
6.9. Estate Management
6.9.1. Uniform Estate Management Procedure
(i) The PSIEC will be responsible for all estate management services of all the industrial estates, focal points and other areas transferred to it by all agencies.
(ii) The PSIEC 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 PSIEC 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 PSIEC will develop and streamline online system for all the estate management services in a time bound manner.
6.9.2. Unlocking the potential of land – Liberalizing zoning regulations
(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) PICTC Sector now entrusted with PSIEC 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.
39 | Page
(v) Zoning regulations will be liberalized to provide for flatted factories. Further, keeping in view the paucity of land, the State and the PSIEC would go for vertical growth and grant of higher FAR would be liberalized.
6.9.3. 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.
6.9.4. E-auction of plots
(i) All the industrial plots below 100 Acre will be allotted by way of E-auction as per existing policy notified on 31.01.2019, however SPV shall be allotted plots at current reserve price in accordance with clause no 3 of notification no.
US/CC/PSIEC/Allotment Policy/1860 dated 31.10.2013.
(ii) The state will formulate separate guidelines for allotment of land / Plot for area beyond 100 Acre.
40 | Page Chapter 7: Power
7.1. 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 2825 MW which includes 1936 MW of Solar Power and 889 MW of Non-Solar Power that includes Co-generation, Biomass, Biogas Waste to Energy and Mini Hydel Projects as on 31.12.2022. The state thus has an advantage of surplus power and a robust power infrastructure.
7.2. 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.
7.3. Power at affordable tariff for 5 years Power represents a major recurring expenditure. In order to enhance the cost competitiveness, the State will provide power at affordable 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.
7.4. 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