M A I N   N E W S

Punjab plans major sops for industry
Sanjeev Singh Bariana
Tribune News Service

Chandigarh, June 1
In a bid to attract industry, the Punjab Government will announce at least five concessions for industrialists to set up units in the state. The concessions include waiving of VAT, stamp duty, electricity duty, property tax, and certain other fee and charges.

“We are ready with the draft of the new industrial policy and will put it up before the Cabinet on Monday,” said state Industries Minister Anil Joshi.

“I cannot reveal the details of the concessions before presenting the draft to the Cabinet for approval. The Cabinet will decide on how long the concessions will be given,” he added.

Joshi said the “concessions will be applicable to industry only at designated focal points and industrial areas”.

Under the new industrial policy, the state has been divided into two broad zones. The border and ‘kandi’ areas have been put in one category, while the remaining area of the state comes under the other. Those setting up industrial units in the border or “kandi” areas will be given special incentives. “Of course, land will be available at a comparatively lower price there,” the minister said. Industries have been divided into four categories for calculation of their actual benefits. These include industries with investment between Rs 10 and Rs 25 crore (first category); between Rs 25 and 100 crore (second category); between Rs 100 and 500 crore (third category); and more than Rs 500 crore (fourth category).

The policy lays special emphasis on investment for development of industrial parks even by private investors. Besides ensuring basic facilities, these will not be allowed to function till they have a common effluent plant (ETP) in place. “Prevention of pollution remains our top priority,” he said.

Joshi said the policy was a result of eight months of discussions on different aspects, taking inputs from industry, in particular.

The policy underlines the need for setting up of a single window facility for clearing industrialist projects.

“Special care has been taken to address the problem of unnecessary delays in clearing projects. These remain stuck for months together. We are creating a provision for state and district facilitation centres.”

Industrial development has taken a hit in Punjab owing to special concessions granted to hill states. Further, earlier industrial policies have failed to attract major industries in the state.

Punjab has remained a hub of small and medium scale industries. But the state needs to attract big industrial houses to provide employment to youth and also Information Technology units to absorb unemployed engineering graduates.

Meanwhile, Hero Eco chairman Vijay Munjal has written to Deputy Chief Minister Sukhbir Badal stressing the need for focussing on the research and development of electric vehicles.

While 13 states are charging zero per cent VAT on electric vehicles, Punjab charges 14.30 per cent VAT on such vehicles. The Delhi Government was providing 15 per cent subsidy on electric vehicles, he said.

Wooing industry

• The concessions include waiver of VAT, stamp duty, electricity duty, property tax, and other charges
• These will be applicable to industry only at designated focal points and industrial areas
• The state has been divided into two zones, one comprising border and ‘kandi’ areas and the other covering the rest of the state
• Industrial units set up in border or ‘kandi’ areas will get special incentives