Investment and Industrial Policies-Punjab
Industrial Policy
In the year 1996-1997, 2497 new industrial units with investment of Rs. 854.47 crore, were set up in the State. But the number came down to 1187, with investment of Rs. 622.41 crore, during the year 2001-2002. The average growth rate of the secondary sector (comprising of manufacturing), which was 11.78 % in the year 1998-1999, declined to 5.90 and 5.73 in the years 1999-2000 and 2000-2001, respectively. The Industrial Policy address itself to the two basic issues, i.e. to promote investment and development in the growth areas of agro based and knowledge based industries, and to rejuvenate and strengthen existing industries, particularly the small and medium enterprises.The new Industrial Policy is based on following objectives :-
To create a conducive investment climate through infrastructure creation, reduced regulations and general facilitation.
To rejuvenate and make competitive existing industry, particularly in the small scale sector through improved technology, product quality and marketing.
To create a special thrust in the areas where Punjab has an edge in terms of cost and competitiveness .
Information Technology Policy
Information Technology "IT Software" means any representation of instruction, data, sound or image, including source code and object code, recorded in a machine rendable form, and capable of being manipulated or providing inter-activity to a user, by means of an automatic data processing machine falling under heading, ‘I.t. Products", but does not include ‘non I.T. Product", ‘IT Service’ is defined as any service which results from the use of any IT Software over a system of IT products for releasing value addition. The IT Industry shall cover development, production and services related to IT Products. IT Software Industries include IT Software, IT Services and IT enabled services, IT infrastructure means the physical Infrastructure build by a firm or a builder and sold to an IT Industries for its own use or the Infrastructure build by an IT Industry for its own use..
Investment Incentives
Incentives for Agro Industry
To encourage diversification in agriculture and to build up a climate for industrial investment by providing linkage between agriculture and industry, the Governor of Punjab is pleased to provide the additional incentives to the defined Agro-Industries, under the Punjab Industrial Incentive Code under the Industrial policy..
Incentives for Electronic Industry
To promote growth of industry in the State, Government of Punjab provides the grant of incentive for electronics units in Punjab. To implement the scheme of incentives set out in the aforesaid Industrial Policy, the Government of Punjab notify the special facilities/ benefits/ concession/incentives for the development of Electronic Industry in the State of Punjab.
Incentives for IT Industry
Investment Incentive (Capital subsidy) @ 30% of the Fixed Capital Investment (FCI) to the SSI, Large & Medium units subject to maximum of Rs 50,000 lacs shall be available to the Information Technology units set up in SAS Nagar (Mohali) as well as 'A' Category areas defined under the Punjab Industrial Incentive Code-under the Industrial Policy, 1996. (b) Investment Incentive @ 20% of Fixed Capital Investment to the Small, Medium and Large scale Information Technology units, subject to maximum of Rs 30 lacs, in 'B' Category areas defined under the Punjab Industrial Incentive Code-under the Industrial Policy 1996. The total project cost excluding working capital should include cost of technology acquisition/transfer IPR etc. Exemption/deferment from Sales Tax.
Punjab Financial Corporation
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