CII Invest North 2017 - Punjab unveils Industrial and Business Policy 2017
The 6th edition of CII Invest North 2017 is a mega conclave where six northern states - Haryana, Himachal Pradesh, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand showcased potential projects and sectoral opportunities for investment.
On the first day of the two-day event (1-2 November 2017) Rajasthan, Uttar Pradesh and Uttarakhand officials presented various investment opportunities lined up in their respective states. The Punjab government took this opportunity to unveil its new Industrial and Business Policy 2017.
Unveiling Punjab’s Industrial and Business Policy 2017, Punjab’s chief minister, Amarinder Singh stated that the new policy was architected around eight core strategic pillars -- Infrastructure, Power, MSME, Ease of Doing Business, Business Startup and Entrepreneurship, Skills, Fiscal and Non-Fiscal Incentives, and Stakeholder Engagement supported by sector specific strategies for growth.
The state aims to attract an investment of Rs five lakh crore over a period of five years, by increasing its share of secondary sector GSDP to 30 percent, and tertiary sector to 62 percent. The policy aims to boost industrial growth and economic activity in Punjab.
Under this policy, the state envisages to develop infrastructure, accelerate growth in MSMEs, create job opportunities for many, and improve ease of doing business, among others.
In order to provide robust industrial growth, the state plans to develop four major industrial parks and 10 other industrial parks as per general and sector specific requirements in the next five years.
The master plan also includes development along the industrial urban corridor and economic corridors along the major rivers. These include Amritsar Kolkata Industrial Corridor (AKIC), and Chandigarh-Patiala-Sangrur-Bathinda corridor, among others. It will also facilitate affordable housing in and around the industrial estates. A separate scheme will also be formulated for promotion and development of industrial parks in the private sector.
For robust growth in power infrastructure, the state will provide power at affordable and fixed tariff rates for five years. The state will introduce a two-part electricity tariff, i.e. fixed and variable, and will provide power at a variable tariff of Rs five per kVAh for a period of five years with no increase in the existing fixed electricity tariff.
In order to support the MSME sector, the state will also set up a Single Window System at the district level. Technology centres, CFC will be set up and various incentives will be provided to encourage the MSME sector.
Another major fiscal incentive covered in the policy was 100 percent exemption of SGST for thrust sectors, MSMEs, etc. Additionally, non-fiscal incentives have also been listed in the policy.
The Industrial and Business Policy 2017 also included broad-based strategies for development of various manufacturing sectors. The state will support traditional handicrafts, garment industry, dyeing industry, etc. An initiative has also been taken up to develop an industrial park for promotion of the hi-tech cycle industry. The state, which is a hub for bicycle manufacturing in India, will see a Hi-tech cycle valley coming up at Ludhiana.
The state government will encourage e-car manufacturing in the state and will set up an automobile park as a part of AKIC.
The Punjab’s Industrial Policy 2017 includes various other business opportunities for sectors including fertilizers, knowledge park, and defence, among others.