Punjab Fiscal Incentives 2013 Industrial Promotion Policy 2013

Punjab Fiscal Incentives - 2013 Industrial Promotion Policy, 2013 FISCAL INCENTIVES Department of Industries and Commerce, Government of Punjab 1

Contents Punjab Fiscal Incentives - 2013 1. Introduction 2. Incentives for Manufacturing Sector Units. 3. Incentives for Integrated Textile Units. 4. Incentives for Agro / Food processing Industries 5. Incentives for Electronic Hardware and IT industry 6. Way forward www. pbindustries. gov. in

1. Introduction Punjab Fiscal Incentives - 2013 Economic Snapshot –% Distribution of GSDP www. pbindustries. gov. in

1. Introduction Punjab Fiscal Incentives - 2013 Fiscal Incentives will : ► Enable Secondary and Tertiary sector contribution in CAGR. ► Enhance the industrial contribution toward state CAGR (95% of the total industrial units are small and medium category) ► Over all development of State by providing incentives in zones • Less developed zone/ Areas will have – More Incentives • More Developed zones/ Areas will have – Less incentives. www. pbindustries. gov. in

1. Introduction Punjab Fiscal Incentives - 2013 Liberal incentives for all sectors ► Manufacturing sectors ► Integrated Textile units ► Agro and Food Processing sectors ► Electronic Hardware and Information Technology sectors www. pbindustries. gov. in

2. Incentives for Manufacturing Sectors Punjab Fiscal Incentives - 2013 Zone I Fazilka, Ferozepur, Tarn Taran, Amritsar, Gurdaspur, Pathankot, Hoshiarpur, Sangrur, Barnala, Mansa, Bathinda, Sri Muktsar Sahib and Faridkot. All approved Industrial Parks, Industrial Focal Points and Industrial Estates in all districts of the State. Zone II Patiala, Fatehgarh Sahib, Ludhiana, Moga, Jalandhar, Kapurthala, Shaheed Bhagat Singh Nagar (Nawanshahr), Rupnagar and Ajitgarh(Mohali). www. pbindustries. gov. in

2. Incentives for Manufacturing Sectors Eligible Area Zone I Maximum cumulative quantum of incentive FCI Rs. FCI 1. 0 cr to Rs. above 10 cr Rs. 10 cr to below Rs. 25 cr 50%VAT+ 50% 75% CST VAT+ (*only in 75% CST IFPs. ) 50% of FCI Nil Zone II Maximum cumulative quantum of incentive Eligibility from date of application in Nil 7 Yr FCI Rs. 25 cr to below Rs. 100 cr 60% VAT +75% CST 60% of FCI 25% 30% VAT+ 50% CST 25% of 30% of FCI 8 Yr 10 Yr Punjab Fiscal Incentives - 2013 FCI ED Rs. 100 cr to Rs. 500 cr below Rs. and above 500 cr 70%VAT +75%CST 80%VAT +75%CST 70% of FCI 100% SD PT 100% 80% of FCI 100% of FCI N. A. 35% VAT+ 50% CST 40% VAT+ 50% CST 50% 50% 35% of FCI 40% of FCI 50% of FCI N. A. 11 Yr 13 Yr

3. Incentives for Integrated Textile Units. Punjab Fiscal Incentives - 2013 u Retention of VAT and CST u Electricity Duty Incentive u Stamp duty Incentive u Property Tax Incentive u Market Fee/ Rural Development Fund/ Infrastructure Development Cess Incentive www. pbindustries. gov. in

4. Incentives for Agro / Food Processing Industries Punjab Fiscal Incentives - 2013 FCI (Rs 25 Cr to < Rs 100 Cr) FCI ( >= Rs 100 Cr) Electricity Duty Stamp Duty Property Tax 80% VAT + 85% VAT + 75 % CST 80 % CST 90 % VAT + 85 % CST 100% Ceiling quantum of FCI 80% 85% 90% 100% Period 10 Yr 12 Yr 10 to 12 Yr One time FCI (Rs 1 Cr to < Rs 25 Cr) as per range of investment 10 to 12 Yr as per range of investment ► Mandi Fee, RDF, ID Cess Incentives on Basmati, Maize, Wheat Fruits and Vegetable allowed on purchases made within the State for processing www. pbindustries. gov. in

5. Incentives for Electronic Hardware and Information Technology units Punjab Fiscal Incentives - 2013 IT/ ITe. S/Knowledge Industry ( In the Districts of Mohali and Amritsar only with min. investment of Rs 1 Cr) ► VAT incentives ► Power related Incentives ► Stamp duty Incentives ► Property Tax Incentives ► Exemption from PPCB ► Exemption from inspection under labour laws ► Exemption from PAPRA ► Incentives related to Housing and Urban Development www. pbindustries. gov. in

5. Incentives for Electronic Hardware and IT industry Punjab Fiscal Incentives - 2013 ii. Electronic Hardware manufacturing industry ( Min Investment Rs 5 Cr) ► VAT incentives ► Power related Incentives ► Stamp duty Incentives ► Property Tax Incentives ► Exemption from PPCB ► Exemption from inspection under labour laws ► Exemption from PAPRA ► Incentives related to Housing and Urban Development www. pbindustries. gov. in

5. Incentives for Electronic Hardware and IT industry Punjab Fiscal Incentives - 2013 Contd. ii. Electronic Hardware manufacturing industry ► Preferential Market Access (PMA) ► Special incentive for Semi- Conductor Wafer FAB. . www. pbindustries. gov. in

6. Way Forward Punjab Fiscal Incentives - 2013 ► Facilitation Measures: For the ease of doing business in the state, Approval to be accorded in accordance with following major steps i. Simplify procedures and documents. ii. Transparent work flows iii. Online application and approval iv. Self attestation of documents v. Third party certification of building plans, stability, safety etc. vi. Payment gateway for online payments www. pbindustries. gov. in

6. Way Forward ( contd. ) Punjab Fiscal Incentives- 2013. Steps already taken ► PPCB : Simplified Consent Management for investors: • Online consent Management with online payment facility • Common application form for industry • Exemption from Site clearance u/s 41 (A) of the Factories Act, 1948 for industries set up in designated/ approved areas. www. pbindustries. gov. in

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