New Industrial Policy Rolled Out By Punjab; Patiala Comes Under Zone II

There was a bid on Punjab which aimed at attracting investments. The Punjab government in the bid made some important announcements regarding the new industrial policies, offering tax incentives for food processing, Information and technology sectors, agriculture and electronics hardware sectors. This gave an assurance about the faster clearance of the products. The state government led by SAD-BJP also made an announcement about creating a land bank of 5,000 hectares, which would help in accommodating new projects and the expansion of industry all around the state. The said policy will be applicable in all cities of Punjab including Patiala, Sangrur, Bathinda and all other cities.

The Deputy Chief Minister of Punjab Sukhbir Singh Badal also said that this policy is the most industrial friendly policy in the entire country. There are many incentives which are offered for the purpose of expansion and fresh investment. The projects will be implemented faster by the setup of a single window system.

The state is being divided in two zones by the government. The places like Gurdaspur, Fazilka, Ferozpur and Hoshiarpur are included in zone-I and these areas are being offered with the maximum fiscal incentives. These areas are the least developed areas in Punjab and due to this step by the government the industrial development in these areas has gain a huge speed. The scale of investment determines the fiscal incentives that would be offered. The textiles and food processing sectors also get a VAT redemption form minimum of 50% to a maximum of 80%. 100 % tax redemption is being experienced by the IT sectors and the electronics and hardware sectors. 100% exemption forms the payment of electricity duty, property tax duty and stamp duty is also being introduced along with the 75% exemption in the payment of CST (central sales tax).

The zone-II comprises of the areas like Patiala, Jalandar, Mohali, Moga and Ludhiana. The incentives are restricted to a maximum of 50% in CST exemption and a maximum of 40% in VAT exemption. Now coming to the stamp duty, property tax and electricity duty, there is an exemption of 50 per cent in the payment in these areas.

Patiala comes under the section 2. The investments are divided in several slabs like 1-10 crore, 10-25 crore, 25-100 crore, 100-500 crore and more than 500 crore. These slabs are set up in order to claim the tax incentives. The Punjab principal Secretary industry Karan Avtar Singh said it in his speech. Incentives can be earned under this policy. The VAT can be retained up to exemption level for setting up a factory and it is much more advantageous than depositing VAT. This idea was explained very well by Sukhbir Singh Badal.

Special focus was given in the food processing and agro sector which was very much important. Investments in the processing of wheat, milk, basmati and maize are very much encouraged. Sukhbir Singh Badal also said that purchase tax exemption will be there on the purchase of wheat and milk and in their processing. The zone will not be considered while giving the tax exemption of 90% on VAT and 100% in electricity duty, property tax and stamp duty. Thus, this policy would be very much beneficial in the development of industries in Punjab.