Punjab

General Information

Infrastructure

Industrial Policy

New Industrial Policy 1996 has given special thrust to the development of Agro-based industry and to build a conducive industrial climate to attract fresh investments and also facilitate the growth and expansion of existing industry. The State has been categorized into three areas for providing incentives for industrial development. These categories are -

Category-A : Districts of Amritsar, Gurdaspur, Ferozepur, Faridkot, Muketsar, Moga and Mansa and designated Kandi areas except areas falling within the Municipal Limits of towns of population of more than one lakh
Category - B: The rest of the State, except areas under category A & C
Category - C: The towns with population of more than one hundred thousand in districts other than the A category A. The areas falling within the Chandigarh Capital Periphery, except Free Enterprises Zone, Industrial Areas/Focal Points/Industrial Estates and areas identified and declared by the State Govt. for industrial use.

Incentives

Subsidy of up to 30%, of fixed capital investment up to Rs.5 million, in Category-A

Subsidy of up to 20%, of fixed capital investment up to Rs.3 million, in the rest of the state

Sales tax exemption up to 300% of fixed capital investment for 10 years in category-A & 150% fixed capital investment for 7 years in category-B

New Electronic units coming up in the State after 24th June, 1991, shall be provided exemption from Sales/Purchase tax for a period of 10 years from the date of production. After the expiry of 10 years, sale/purchase tax would be charged at the rate of 3.5% for further 3 years.

Octroi exemption of up to 50% for electronics units for 6 years from the date of registration.

Equity participation by the Punjab State Industrial and Development Corporation in selected projects

Special subsidy of 5% of turnover, up to Rs.1 million, for computer software or system engineering systems units for 5 years

Hotels, restaurants and amusement/adventure parks will be eligible for Investment incentive @ 25% subject to maximum limit of Rs.2.5 million irrespective of their location.

Setting up of an exclusive Focal Point in Mohali for NRI entrepreneurs.

Reservation of Industrial plots for allotment in all Focal Points and Industrial Estates in the State for NRIs.

Preference to NRI entrepreneurs by State Industrial Development and other promotional Corporations, while finalizing proposals for joint ventures/assisted sector projects.

A Special Cell in the Udyog Sahayak Directorate of Industries, to provide Single Window Facility and to ensure time-bound clearance to all investment proposals received from NRIs.

State identified priority sectors

Agricultural Equipment and Machinery, Agro-Based, Chemicals, Energy, Electrical, Hi-Tech Electronics, Packaging Industry, Pharmaceuticals, Textiles

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