Punjab Cabinet Approves New Industrial Policy With Key Focus on Infrastructure, Power, MSMEs

The Punjab government on Friday approved the new industrial and business development policy, 2022 aimed at spurring industrial development and creating employment opportunities in the state. The policy is structured with a key focus on infrastructure, power, MSMEs, large enterprises, innovation, startup and entrepreneurship, skill development, ease of doing business, fiscal and non-fiscal incentives, export promotion logistics, stakeholder engagement and grievance redressal. The Bhagwant Mann-led government will develop 15 industrial parks covering general and sector-specific requirements of various industrial sectors and 20 rural clusters across Punjab.

The state will set up an MSME Punjab as a dedicated wing of the Department of Industries and Commerce with a focus on setting up a common facility and technology centre. For MSMEs, Punjab will also implement the World Bank-assisted scheme namely Raising and Accelerating MSME Performance (RAMP). Likewise, the government will also strengthen start-up Punjab to promote innovation and startups in the state through Punjab Innovation Mission with a special focus on women/SC/other entrepreneurship.

To woo investments, the AAP-led Punjab government will also allow setting up of dedicated country specific integrated industrial township by allowing the infrastructure and other norms of the country. The policy also envisages that Punjab Small Industries and Export Corporation (PSIEC) will be strengthened and an online system for all the estate management services in a time bound manner shall be developed. The issuance of notification by the Department of Power for the incentive of electricity duty exemption shall be made online and time bound through Invest Punjab Business First Portal (IPBFP).

Under the policy, gender/differently abled entrepreneurship/rural impact startup/women led startup and startups shall be given relaxation in public procurement with respect to experience and turn over. Punjab Skill Development Mission will work out specific skill development centres for various activities and will work with large employers in various industry sectors to create skill training facilities in partnership with such employers. As per the new policy, the Invest Punjab Business First Portal shall be integrated with National Single Window Portal and services of NHAI, PWD, RDA, Irrigation Department and Forest will also be included in it.

The policy also provides fiscal incentives for ultra-mega/mega projects, special incentives for units in border zone, startup/incubators and first two units in border zone in each sector of manufacturing and service. The policy also provides exemption from stamp duty, CLU/EDC and electricity duty from seven to 15 years for electric vehicle, sports goods including fitness equipment. The state cabinet also accorded approval to electric vehicle policy, 2022 with a move to check the vehicular pollution.

The policy desires to reduce vehicular emission, create infrastructure, manufacturing, research and development, job creation, ensuring sustainability besides to establish Punjab as a favoured destination for manufacturing of electric vehicles, components and batteries. The policy seeks to incentivise those buying electric vehicles by up to 15 per cent in road tax. Read all the Latest Politics News here.