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Punjab notifies Industrial Policy 2013: Complete Text of Notification

Industrial Policy LMIChandigarh, Dec 5, 2013 (YP Bureau)

 

Punjab government Thursday notified the much-hyped and eagerly awaited new industrial policy of the state.

 

The policy was unveiled by Deputy Chief Minister Sukhbir Singh Badal on June 3, 2013 in Chandigarh after it was approved by Punjab Cabinet in a meeting held earlier on the same day.


Giving presentation of the new industrial policy then, the Deputy CM had patted the back of his government saying that the policy would offer fiscal incentives for industrial promotion in Punjab.

 

Describing the policy as aggressive and incentive based, the Deputy CM had said that besides changing the paradigm of industrial development it would facilitate investment in the state.

 

YesPunjab.com brings you the COMPLETE NOTIFICATION issued today i.e. on 5th of December, 2013.

 

GOVERNMENT OF PUNJAB

DEPARTMENT OF INDUSTRIES & COMMERCE

 

NOTIFICATION

 

No.CC/FIIP/2013/5343                                                    Dated: 05.12.2013

 

The Governor of Punjab is pleased to formulate ‘Fiscal Incentives for Industrial Promotion-2013’ to facilitate the development of Industry in the State of Punjab, as contained in Chapters 1 to 9 hereunder:

 

Contents

 

Chapter

Topic

Page No.

1.

Introduction

2

2.

Incentives for Large Manufacturing Sector Units

3

3.

Incentives for Small and Medium Units

8

4.

Incentives for Integrated Textile Units

11

5.

General Provisions

14

6.

Incentives for Electronics Hardware and IT Industry

18

7.

Incentives for Agro Industrial and Food Processing Sector

32

8.

Incentives for Tourism Sector

45

9.

Incentives for Health Sector

51

 

Annexure – I

56

 

Annexure – II

57

 

Annexure – III

59

 

Chapter 1

 

INTRODUCTION

 

To encourage industrial development and employment generation in the State, it is imperative that fresh impetus is given to Industry and Commerce. Hence, the State Government announces this Package of Fiscal Incentives for setting up new industry. Alive to the needs and aspirations of SME sector, the package provides for liberal incentives to this segment too.

 

The Industrial Policy - 2009 notified vide No.CC/NIP/2009/1547 dated 07.10.2009 will stand amended and modified to the extent of the fiscal incentives, and terms and conditions contained in this Package.


Chapter 2

 

INCENTIVES FOR LARGE MANUFACTURING SECTOR UNITS

 

2.0    VAT and CST Incentives

 

2.1    VAT & CST incentives for new Units with Fixed Capital Investment of above Rs.25cr:

 

2.1.1  VAT & CST incentive shall be available to new units with Fixed Capital Investment (FCI) of above Rs.25cr, as shown in Table-2.1. The quantum of incentive would be available on the VAT and CST payable per annum.

 

2.1.2  The incentive shall be available during Eligible Period, as given in Table 2.6, from the Date of Approval of the unit.

 

2.1.3 This incentive shall commence only after the Date of Production.

 

2.1.4 Maximum cumulative quantum of incentive for Eligible Period is given in Table-2.1.

 

Table-2.1 : Quantum of VAT/CST incentive

 

Eligible Area*

FCI above

Rs.25cr to Rs.100cr

FCI above

Rs.100cr to Rs.500cr

FCI above

Rs.500cr

 

 

Zone I

 

60% VAT +75% CST

 

70%VAT +75%CST

 

80%VAT +75%CST

Maximum cumulative quantum of incentive

 

60% of FCI

 

70% of FCI

 

80% of FCI

 

Zone II

 

 

 

30% VAT+ 50% CST

 

35% VAT+ 50% CST

 

40% VAT+ 50% CST

Maximum cumulative quantum of incentive

 

30% of FCI

 

35% of FCI

 

40% of FCI

Eligibility Period

in Years

10

11

13

* Zones are defined in Table-2.7

2.2    VAT & CST incentive for Units with Fixed Capital Investment above Rs.10cr to Rs.25cr:

 

2.2.1 VAT & CST incentive shall be available to new units, having Fixed Capital Investment (FCI) above Rs.10cr to Rs.25cr, which have obtained a term loan from a Financial Institution/Bank, as shown in Table 2.2. The quantum of incentive would be available on the VAT and CST payable per annum.

 

2.2.2  The incentive shall be available during Eligible Period, as given in Table 2.6, from the Date of Approval of the unit.

 

2.2.3 This incentive shall commence only after the Date of Production.

 

2.2.4 Maximum Cumulative Quantum of Incentive for Eligible Period is given in Table 2.2.

 

Table 2.2 :

Eligible Area*

FCI above

Rs.10cr to Rs. 25cr

Maximum cumulative quantum of incentive

Eligible Period from Date of Approval

 

Zone I

 

50% VAT+ 75% CST

 

50% of FCI

 

8 Years

 

 

Zone II

 

 

25% VAT+ 50% CST

 

25% of FCI

 

8 Years

* Zones are defined in Table-2.7

 

2.3    Electricity Duty Incentive:

 

2.3.1 Exemption from payment of Electricity Duty on Power, including Captive Power consumed by the same unit or exported to PSPCL shall be available to new units, as shown in Table-2.3, with the proviso that any contributions made out of the Electricity Duty levied, such as those deposited in the Social Security Fund, shall not be exempted.

 

2.3.2 This incentive shall be available during the Eligible period of availing incentives, as shown in Table-2.6.

 

2.3.3 This incentive shall commence only after the Date of Production.

 

2.3.4 Electricity Duty exemption is not available on Captive Power exported to entities other than PSPCL.

 

2.3.5 Maximum Cumulative Quantum of Incentive for Eligible Period is given in Table 2.3.

 

Table 2.3:       Quantum of Electricity Duty Incentive

                                                                                               

Eligible Area*

FCI  above Rs.10cr

Maximum Cumulative Quantum of ED Incentive for Eligible Period

Zone I

100%

100% of FCI

Zone II

50%

50% of FCI

* Zones are defined in Table-2.7

 

2.4    Stamp Duty Incentive:

 

2.4.1 Exemption from payment of Stamp duty as levied in Schedule 1-A of Indian Stamp Duty Act on purchase/lease of land is available from the date of submission of application with Nodal Agency, as shown in Table 2.4, with the proviso that any other charges such as Social Security Fund as levied in schedule-1-B of the Act shall not be exempted.

 

2.4.2 This exemption shall be available for real estate purchased/leased within a period of 3 years from Date of Approval.

 

2.4.3 Refund of Stamp duty shall be allowed for all real estate which has been purchased/leased upto 3 years prior to the date of submission of application form, by the same entity. The refund, however, will be given only after the Date of Production.

 

2.4.4 The quantum of land shall be determined as per the project report appraised by the Financial Institution/Bank.

 

Table 2.4:       Quantum of Stamp Duty Incentive

                                                                                               

Eligible Area*

FCI above Rs.10cr

Zone I

100%

Zone II

50%

           * Zones are defined in Table-2.7

 

2.5    Property Tax Incentive:

 

2.5.1 Exemption from payment of Property Tax shall be available during the Eligible Period of availing incentives, as shown in Table-2.5.

2.5.2 Projects whose real estate subsequently falls, on extension of limits, in Municipal Corporation, Municipal Council or Notified Area Committee, shall also remain exempt from payment of Property Tax during the balance Eligible Period of availing incentives, as shown in Table-2.6.

 

2.5.3 This incentive shall commence only after the Date of Production.

 

Table 2.5:       Quantum of Property Tax Incentive

         

                                                                                   

Eligible Area*

FCI above Rs.10cr

Zone I

100%

Zone II

50%

           * Zones are defined in Table-2.7  

 

2.6    Period of Incentives:

 

2.6.1 Eligible Period of availing VAT, CST, Electricity Duty and Property Tax incentives shall be as shown in Table-2.6.

 

2.6.2 Eligible Period of availing incentives shall be determined from the Date of Approval.

 

Table-2.6: Period of Incentives (for VAT, CST, Electricity Duty &

      Property Tax exemption.)

 

 

FCI above

Rs.10cr to 25cr

FCI above

Rs.25cr to 100cr

FCI above

Rs.100cr to 500cr

FCI above Rs.500cr

Eligible Period for availing incentives

 

8 Years

 

10 Years

 

11 Years

 

13 Years

 

2.7    Investment Zones:

 

Units shall be eligible for incentives as per the Zones given in Table2.7.

 

Table-2.7: Investment Zones

Zones

Districts & Other Areas

Zone I:

 

Fazilka, Ferozepur, Tarn Taran, Amritsar, Gurdaspur, Pathankot, Hoshiarpur, Sangrur, Barnala, Mansa, Moga, 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, Jalandhar, Kapurthala, Shaheed Bhagat Singh Nagar (Nawanshahr), Rupnagar and Ajitgarh(Mohali).

 

 

2.8    General Conditions:


General conditions as contained in Chapter 5 shall be applicable to all projects considered for grant of incentives under this Chapter.

 

 

Chapter 3

 

INCENTIVES FOR SMALL AND MEDIUM UNITS

 

3.1    VAT and CST incentive for Units with Fixed Capital Investment (FCI) from Rs.1.0 cr to Rs.10 cr:

 

3.1.1 VAT and CST incentive shall be available to new Small & Medium Units, having FCI from Rs.1 cr to Rs.10 cr., which have obtained term loan from a Financial Institution/Bank, as shown in Table 3.1. The quantum of incentive would be available on VAT and CST payable per annum.

 

3.1.2 The incentive shall be available only to units setup in Industrial Focal Points, Industrial Estates and approved Industrial Parks.

 

3.1.3 The incentive would be available for a maximum period of 7 years from the Date of Approval.

 

3.1.4 This incentive shall commence only after the Date of Production.

 

3.1.5 Maximum Cumulative Quantum of Incentive for Eligible Period is as per Table 3.1.

Table-3.1

Eligible Area

FCI Rs.1 cr to Rs.10 cr

Eligible Period from Date of Approval

Maximum cumulative quantum of incentive

Within approved Industrial Focal Points, Industrial Estates, Industrial Parks

50% VAT + 75% CST

7 Years

50% of FCI

 

3.2    Electricity Duty Incentive:

 

3.2.1 100% exemption from payment of Electricity Duty on Power, including Captive Power consumed by the same unit or exported to PSPCL, shall be available to new units, as shown in Table-3.2, with the proviso that any contributions made out of the Electricity Duty levied, such as those deposited in the Social Security Fund, shall not be exempted.

 

3.2.2 This incentive would be available for a maximum period of 7 years from the Date of Approval.

 

3.2.3 This incentive shall commence only after the Date of Production.

3.2.4 Electricity Duty exemption is not available on Captive Power generated and sold.

 

3.2.5 Maximum Cumulative Quantum of Incentive for Eligible Period is as per Table 3.2.

 

Table-3.2

Eligible Area

FCI Rs.1 cr to Rs.10 cr

Eligible Period from Date of Approval

Maximum cumulative quantum of incentive

Within approved Industrial Focal Points, Industrial Estates, Industrial Parks

 

100% of ED

 

7 Years

 

100% of FCI

 

3.3    Stamp Duty Incentive:

 

3.3.1 100% exemption from payment of Stamp duty as levied in Schedule 1-A of Indian Stamp Duty Act on purchase/lease of land is available from the date of submission of application with Nodal Agency, with the proviso that any other charges such as Social Security Fund as levied in schedule-1-B of the Act shall not be exempted.

 

3.3.2 This exemption shall be available for real estate purchased/leased within a period of 3 years from Date of Approval.

 

3.3.3 Refund of Stamp duty shall be allowed for all real estate which has been purchased/leased up to 3 years prior to the date of submission of application form, by the same entity. The refund, however, will be given only after the Date of Production.

 

3.3.4 The quantum of land shall be determined as per the project report appraised by the Financial Institution/Bank.

 

3.3.5 The incentive shall be available only to units setup in Industrial Focal Points, Industrial Estates and approved Industrial Parks.

 

3.4    Property Tax Incentive:

 

3.4.1 100% exemption from payment of Property Tax shall be available during the Eligible Period of 7 years from the Date of Approval.

 

3.4.2 Projects whose real estate subsequently falls, on extension of limits, in Municipal Corporation, Municipal Council or Notified Area Committee, shall also remain exempt from payment of Property Tax during the balance Eligible Period of 7 years.

 

3.4.3 This incentive shall commence only after the Date of Production.

 

3.4.4 The incentive shall be available only to units setup in Industrial Focal Points, Industrial Estates and approved Industrial Parks.

 

 

3.5    Conditions:

 

3.5.1.   These incentives shall be applicable to new Small & Medium manufacturing Units with investment from Rs.1.0 cr to Rs.10 cr.

 

3.5.2 The incentives under this Chapter shall be available only to units set up in Industrial Focal Points, Industrial Estates and approved Industrial Parks.

 

3.5.3 These incentives shall be available only to Projects which have obtained term loan from a Financial Institution/Bank.

 

3.5.4 All General conditions as contained in Chapter 5 shall be applicable to Projects considered for grant of incentives under this Chapter.

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