Punjab Fiscal Incentives - 2013

Industrial Promotion Policy, 2013

FISCAL INCENTIVES

1Department of Industries and Commerce, Government of Punjab

Contents

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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

1. Introduction

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Punjab Fiscal Incentives - 2013

Economic Snapshot –% Distribution of GSDP

1. Introduction

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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.

1. Introduction

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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

2. Incentives for Manufacturing Sectors

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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).

2. Incentives for Manufacturing Sectors Punjab Fiscal Incentives - 2013

Eligible Area FCI Rs. 1.0cr to Rs. 10cr

FCI aboveRs.10cr to below Rs. 25cr

FCIRs.25cr to below Rs. 100cr

FCIRs.100cr to below Rs. 500cr

FCIRs.500cr and above

ED SD PT

Zone I50%VAT+ 75% CST(*only in IFPs.)

50% VAT+

75% CST

60% VAT +75% CST

70%VAT +75%CST

80%VAT +75%CST

100% 100% 100%

Maximum cumulative quantum of incentive

50% of FCI 50% of FCI

60% of FCI

70% of FCI 80% of FCI 100% of FCI

N.A. N.A.

Zone IINil 25%

VAT+ 50% CST

30% VAT+

50% CST

35% VAT+ 50% CST

40% VAT+ 50% CST

50% 50% 50%

Maximum cumulative quantum of incentive

Nil 25% of FCI

30% of FCI

35% of FCI 40% of FCI 50% of FCI

N.A. N.A.

Eligibility from date of application in

7 Yr 8Yr 10Yr 11Yr 13Yr

3. Incentives for Integrated Textile Units.

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Punjab Fiscal Incentives - 2013

Retention of VAT and CST

Electricity Duty Incentive

Stamp duty Incentive

Property Tax Incentive

Market Fee/ Rural Development Fund/ Infrastructure Development

Cess Incentive

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Punjab Fiscal Incentives - 2013

► Mandi Fee, RDF, ID Cess Incentives on Basmati, Maize, Wheat Fruits and Vegetable allowed on purchases made within the State for processing

4. Incentives for Agro / Food Processing Industries

FCI(Rs 1 Cr to < Rs25 Cr)

FCI(Rs 25 Cr to < Rs 100 Cr)

FCI ( >= Rs 100 Cr)

Electricity Duty

Stamp Duty

Property Tax

80% VAT + 75 % CST

85% VAT + 80 % CST

90 % VAT + 85 % CST

100% 100% 100%

Ceiling quantum of FCI

80% 85% 90% 100%

Period 10 Yr 10 Yr 12 Yr 10 to 12 Yr as per range of investment

One time 10 to 12 Yr as per range of investment

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Punjab Fiscal Incentives - 2013

IT/ ITeS/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

.

5. Incentives for Electronic Hardware and Information Technology units

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Microsoft Office PowerPoint Presentation

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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

.

5. Incentives for Electronic Hardware and IT industry

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Punjab Fiscal Incentives - 2013

ii. Electronic Hardware manufacturing industry

► Preferential Market Access (PMA)

► Special incentive for Semi- Conductor Wafer FAB

.

.

5. Incentives for Electronic Hardware and IT industry

Contd.

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Punjab Fiscal Incentives - 20136. Way Forward

► 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

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Punjab Fiscal Incentives- 20136. Way Forward ( contd.)

.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.

Thank you

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