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Industrial policy 2022: Punjab govt calls meeting to finalise fiscal, non-fiscal incentives
Industries and commerce department has called a meeting of top officials of 15 departments and agencies on Wednesday to discuss and firm up the new industrial policy before it is put up to the state council of ministers for approval
About a month after it released the draft industrial policy for suggestions, the Punjab government has set in motion the process to finalise the fiscal and non-fiscal incentives to be granted to industry under the proposed ‘Punjab Industrial and Business Development-2022’.
The industries and commerce department has called a meeting of top officials of 15 departments and agencies on Wednesday to discuss and firm up the new industrial policy before it is put up to the state council of ministers for approval.
The fiscal and non-fiscal incentives and reforms proposed in the draft policy, which was unveiled on September 9, relate to exemption from electricity duty, stamp duty and groundwater extraction charges, environmental compliances and digging permissions, rationalisation of NOCs and deemed approvals, employment generation subsidy, change of land use, building bylaws and external development charges.
The draft policy proposals mainly relate to housing and urban development, finance, local government, taxation, power, labour, water resources, and revenue departments, Punjab Pollution Control Board and Punjab State Industries and Export Corporation.
“Their comments and suggestions have been sought since these incentives and concessions, several of which were also there in the previous policy and need to be continued, have financial implications. In case of any difference in opinion, the council of ministers will have the final say,” a senior government official said, requesting anonymity. Principal secretary, industries and commerce, Dilip Kumar will chair the meeting.
Current policy lapsed on Monday
The current policy, framed by the previous Congress government in 2017, and incentives available under it lapsed on Monday. The new industrial policy is crucial for the Bhagwant Mann-led Aam Aadmi Party (AAP) government that has not had a smooth start in this sector.
The government dropped the 1,000-acre site for the mega textile park in Ludhiana under the Prime Minister Mega Integrated Textile Region and Apparel (PM MITRA) Scheme in July under pressure from some protesting farmer organisations, environmentalists, and non-governmental organisations who objected to setting up the project near Mattewara forest.
Later, the government withdrew the proposal for setting up a drug park in Bathinda, just days before the Centre finalised the sites for the ambitious project. The chief minister’s week-long trip to Germany last month, his first to attract investments, was also mired in controversy.
Incentives for MSMEs, incubators, startups added to draft policy put into public domain
The state government, in the draft policy put into public domain in September for suggestions and comments from the various stakeholders, had added new thrust areas and fiscal incentives for MSMEs, incubators and startups to propel growth and suggested measures for streamlining of procedures for building plan approvals.
A hike was also proposed in variable tariff for power frozen at ₹5/KV in the previous policy to ₹5.50 for five years with an annual increase of 3%. The tariff hike has, however, been opposed by several industry associations which termed it “excessive” in the present competitive business environment.
They also suggested a slew of changes in the norms for incentives for state goods and services tax reimbursement, employment generation subsidy, expansion and modernisation and setting up units in the border belt. “Several of their suggestions have been incorporated,” said the officer quoted above, refusing to elaborate.
