M A I N   N E W S

Investor-friendly industrial policy
Provision stores to sell liquor in Punjab
Tribune News Service

The apprehension in Punjab was that the denial of package posed a threat to the industry in the state, which might shift outside. Punjab faced an economic melt down, large-scale unemployment and low income generation. The Cabinet, therefore, decided to lead a delegation to the Prime Minister on this issue.

Refinery

The Chief Minister also read out a letter from the Union Minister of Disinvestment, Communications and Information Technology, Mr Arun Shourie, reiterating that the Bathinda-based Guru Gobind Singh Oil Refinery would be completed.

The industrial policy, which comes into force on April 1, has been framed after seven years. It had recently run into rough weather with the departments of finance and Industries/Commerce locking horns over ‘’incentives’’. But when both Finance and Industry came under one administrative umbrella, after January 20, the contentious issue of incentives was resolved.

Incentives

Capt Amarinder Singh said, the industrial policy envisages at doing away with the ‘’Inspector-raj’’. He announced that industry now had the option to appoint its charted engineers in respect of several Acts and laws, for ‘’self-certification and verification’’. This was applicable to certain specified categories of industry.

The Chief Minister said, the policy would enable the state to play the role of a ‘’facilitator’’ and make ‘’incentives’’ available under the changed nomenclature. The policy envisaged capital subsidy at the rate of 30 per cent of the fixed capital investment up to maximum of Rs 30 lakh per unit in the three border districts. A provision of Rs 25 crore would be made in the state Budget.

Similarly, for modernisation and up-gradation of technology to help of certain industry, capital subsidy of 25 per cent of the fixed capital investment up to a maximum of Rs 25 lakh, per unit would be given to light engineering, textiles, hosiery and knitwear units, sports goods and agro and food processing units. For this too there would be a provision of Rs 25 crore in the next budget.

To give a competitive edge to export-oriented units, the policy ensures a freight subsidy at 1 per cent of FOB value of exports up to maximum of Rs 50 lakh, per unit. For this the provision in the state Budget would be Rs 50 crore.

There are a string of measures for the ‘’revival’’ of sick small sector industrial units, even as PSIDC, PFC, PSIEC and PAIC get into a new mode under the proposed restructuring and amalgamation proposals besides introducing a one-time policy for facilitating equity disinvestment in the companies promoted by these.

The other salient points that Capt. Amarinder Singh mentioned were allowing ‘’captive power generation’’ by units and exemption from payment of electricity duty, and also to import ‘’bulk power’’ from outside Punjab, subject to certain regulations. An electricity legislation is also on the cards, as recommended by the Gajendra Haldia Committee on ‘’power reforms’’.

The other key component of the policy, included the abolition of octroi and incorporating the ‘local area development tax’. Even value added tax regime is round the corner.

The industrial policy encourages information technology, bio-technology, food parks, food processing, agri-business, textiles infrastructure, cluster development etc. A three-tier mechanism has been introduced in the policy to redress the grievances of the entrepreneurs. A ‘’one window’’ clearance system has also been introduced for clearance of projects.

The Chief Minister said a training module in technical education was also on the anvil to ensure employment for the Punjab youth. There were over 20 lakh jobless youth at present.

The policy would also promote the establishment of ‘’multiplex complexes, offering shopping and cinema-entertainment. These integrated complexes would be entitled to 100 per cent exemption form entertainment tax for five years, liberty to fix ticket rates, power tariff, as applicable to industry and no transfer fee except stamp duty on first sale of shopping area. If existing cinema halls converted into proposed multiplex complexes, these too would get 100 per exemption for a maximum of five years. ‘’The policy is aimed at generating jobs and incomes”.

Excise Policy

The excise policy for 2003-04 envisages allowing provision stores in five municipal corporation cities to sell beer and wine. This experiment is in tune with changing times. Capt. Amarinder Singh said, any such store with an annual turnover of more than Rs 25 lakh paying an annual sales tax of Rs 2 lakh, and willing to pay a licence fee of Rs 50,000, would be permitted to sell beer and wine. The five cities are, Amritsar, Jalandhar, Ludhiana, Patiala and Bathinda.

The bottom-line of the excise policy is ‘’no increase in liquor prices; smugglers beware and de-monopolise the liquor trade’’. Also, Indian made foreign liquor and Punjab medium liquor should be available at ‘’affordable price and of good quality’’.

The excise auctions are slated to fetch a revenue of Rs 1,470 crore in 2003-04. This revenue has been jacked up from the present year’s by Rs 30 crore. There will be 5 per cent increase in the number of liquor shops, which is 3,836 at present. The auction begins March 14.

Though there is no major change in the excise policy 2003-04, the department has drawn up 68 salient features.

The basic quota of IMFL is 205 lakh proof litres and that of PML 460 lakh proof litres. At least 16 per cent of excise revenue will be passed on to the panchayats.

There will be three dry days: January 26, August 15 and October 2.