4:31 am : 19.Dec.2014
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Punjab notifies Industrial Policy 2013: Complete Text of Notification

8.2.1 Tourism Units means:

Hotels, MICE, Heritage Hotels, Hotel-cum-Spa/ Resorts-cum-Spa, Special Tourist Units (Farm House, Bed & Breakfast, Tented Accommo-dation Units), Eco-Tourism Units, and Entertainment Infrastructure as defined by the Department of Tourism, Punjab.

 

8.2.2 “Hotel” means:

1.        Any premises or part of a premises having a minimum of eight rooms to let out  commercially, and having at least one restaurant with a capacity of a minimum 30 guests or a bar or a banquet hall.

or

2.        Any premises or part of a premises having more than eight rooms, which are commercially let out, and providing lodging, with or without board, or serving any kind of eatables or beverages or other services, by way of business, for  a monetary consideration.

 

·                Premises excluded from the definition of hotel for the purposes of this policy:

 

1.         Any premises operated by a charitable, religious organization or an educational institution or government institution.

2.         Any premises operated by a society, members of a non-proprietary club, institution or other organization and used exclusively by and for the benefit of members of that society, club, institution or other organization.

3.         Any premises or other type of accommodation unit which has less than eight rooms for letting.

 

8.2.3 “MICE” is an acronym for Meetings, Incentives, Conferences and Exhibitions:

MICE is a kind of Tourism in which large groups, usually planned well in advance, are brought together for a particular purpose.

 

·                Convention Halls should have audio-visual conferencing equipment, facility for high-fidelity recording, video projection/videographs etc. and skilled man-power at various levels. The seating capacity of the hall should be minimum 300 and a mini convention hall should have 20 but preferably atleast 50 seats.

 

·                Exhibition Hall: Delegates as well as trade promoters take part in Trade Shows to promote their products during Conventions. Exhibition halls should have the capacity to accommodate at least 20 booths of 3 metres x 3 metres size excluding passages in between and around the booths. 

 

·                Convention/Exhibition Halls should also have Restaurants, Parking facility for not less than 50 cars and 5 coaches and residential accommodation for delegates/ participants as per the guidelines for Star Category Hotels.

 

8.2.4 “HERITAGE HOTEL” means the properties built before 1950 and having heritage architecture (to be certified by the Department of Tourism) and meets the requirement of a Hotel as defined in this policy.

 

8.2.5 “HOTEL-cum-SPA” / “RESORT-cum-SPA” means an establishment situated outside municipal limits, with minimum 8 letable rooms, frequented by people for relaxation or recreation wherein a provision has been made for equipment and facilities for exercising and improving physical fitness. The establishment must fulfil the requirements of minimum 3-star category resorts as per the guidelines for Time Share Resorts of the Ministry of Tourism, Government of India.

 

8.2.6 “ENTERTAINMENT INFRASTRUCTURE” means facilities specially created for tourists like amusement parks, adventure parks, tourism parks, any special theme parks, or infrastructure related to the promotion of cinematic tourism (like a film institute, a film city, film studios, theatres etc).

 

8.2.7 “SPECIAL TOURIST UNITS” means the units registered under schemes notified by the Department of Tourism such as Farm Houses/Home Stay, Bed & Breakfast Units and Tented Accommodation etc.

 

8.2.8 “GUEST HOUSE” means

 

·                Any premises or part of a premises with not more than seven rooms, providing lodging with or without boarding.

·                any premises or part of a premises with minimum nine rooms providing lodging without boarding.

 

8.2.9    “GREEN HOTEL” means :

 

Hotels which have obtained a green building certificate as per the approved standards and certified by Punjab Energy Development Agency (PEDA).

 

8.2.10 “ECO-TOURISM UNITS” means :

 

Those units, which have been approved under the Punjab Eco-Tourism Policy 2009 (as amended from time to time), issued by the Department of Tourism.

 

8.2.11 “NEW  TOURISM  PROJECTS” means :

 

All registered new tourism projects/units that have been set up or have commenced operations from the date of notification of the ‘Punjab Tourism Industry Promotion Policy-2013’.

 

8.3    INCENTIVES TO NEW TOURISM PROJECTS :

The incentives/benefits declared under this policy will be admissible only to those new tourism projects, which are registered with the Department of Tourism.

 

The following incentives are given to new tourism projects:

 

8.3.1    EARMARKED HOTEL SITES :

 

To promote tourism in the State, sites for Hotel Projects/Entertainment Infrastructure will be ear-marked in all the Urban Estates developed by the various authorities of the Housing and Urban Development Department and within the OUVGL properties of the Government.  The Department of Housing & Urban Development will frame detailed scheme for leasing out sites on suitable terms and conditions in consultation with Department of Tourism.

 

8.3.2 TAX HOLIDAY FOR NEW TOURISM PROJECTS:

 

Incentives will be granted on the basis of investment package for the entire State as below:

 

8.3.2.1 VAT & CST INCENTIVES:

 

Exemption from Stamp Duty, Electricity Duty, Property Tax and the period of eligibility of the incentives is given in the Table below:

 

Table: Quantum VAT/CST of incentives

 

*Categorization based on Investment Slab

Category-1

Category-2

Category-3

Category-4

#FCI

Rs.10 cr to

Rs.25 cr.

FCI above Rs.25 cr to to Rs.50 cr

FCI above

Rs.50cr to Rs.100 cr

FCI above

Rs.100 cr

VAT/CST

40%

50%

60%

75%

Stamp Duty exemption

50%

50%

100%

100%

Electricity Duty exemption

100%

100%

100%

100%

Property Tax exemption

100%

100%

100%

100%

Eligibility Period

 in Years

5

7

8

10

         

             #Units, which have obtained a term loan from Financial Institution/Bank.

 

*The incentive shall be available during the eligible period from the

date of approval of the unit.

 

8.3.2.2 ELECTRICITY DUTY:

 

(a)       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, 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.

(b)       This incentive shall be available during the eligible period from the date of approval of the Unit.

(c)     This incentive shall commence only after the date of operation.

(d)     Electricity Duty exemption is not available on captive power exported to entities other than PSPCL.

 

          8.3.2.3 STAMP DUTY :

 

(a)       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.

 

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

 

(c)       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 operation.

 

8.3.2.4 PROPERTY TAX :

 

(a)       Exemption from payment of Property Tax shall be available during the eligible period of availing incentives.

(b)       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.

(c)       This incentive shall commence only after the date of operation.

 

8.3.2.5 GENERAL CONDITIONS:

 

a)         The maximum limit of the sum of all incentives (VAT, CST, Electricity Duty, Stamp Duty, Property Tax, Market Fee, Rural Development Cess, Infrastructure Development Cess etc.) as provided in this Policy that can be availed under this Notification, shall not exceed 100% of Fixed Capital Investment (FCI).

b)         The proponent shall submit an application, in the prescribed format for appointment of these incentives.  Further, the Eligibility Letter issued on approval of the Project, shall contain full details with regard to the apportionment of such incentives.

c)         A sum equal to 1% of the Fixed Capital Investment (FCI) shall be contributed into the Punjab State Cancer & Drug Addiction Treatment Infrastructure Fund Act, 2013.  Such contribution shall be made in the relevant head by the proponent before issue of the Eligibility Letter.

d)         The incentives available under this Notification shall be effective from      1st April, 2013.

 

8.3.3 Water Supply Charges :

For all Tourist Units, Water Supply Charges will be paid as per industrial rates.

 

8.3.4 SPECIAL TOURISM & ECO-TOURISM UNITS :

Water supply will be charged at domestic rates as per guidelines of the schemes issued by Department of Tourism and electricity charges at domestic rates provided they are not liable to pay Service Tax as per Memo No.3/15/2012/as4/38143/1 dated 4.4.2013 of Power Department, Punjab.

 

8.3.5 GREEN HOTELS  :

These units will avail 5% extra VAT/CST incentives in addition to the benefits admissible under different slab categories of investment, but not exceeding maximum available incentives under category 4 (above Rs.100 crores investment).

 

8.3.6 HERITAGE HOTELS :

Private Heritage Properties will be allowed to convert themselves into Heritage Hotels.  Heritage status will be assigned to structures built before 1950 and having Heritage Architecture.   Heritage status will be certified by a Committee constituted by the Department of Tourism, Punjab. These Units will be given the following additional incentive:-

Change of Land Use - CLU/Conversion Charges will not be levied.

 

8.3.7 All matters of interpretation under this Chapter of the Policy – “Incentives for Tourism Sector” will be referred to the Punjab Govt. (Tourism Department) whose decision shall be final.

 

CHAPTER - 9

 

INCENTIVES FOR HEALTH SECTOR

 

9.0    Background

          In Punjab public healthcare spending and infrastructure is currently well short of what is required to fulfill its ambition of achieving universal health care. The State Government intends to seek involvement of private sector in providing desired healthcare facilities to our citizens. In the recent past, the State Government has successfully operationalized Super Specialty Cancer and Trauma hospital at Mohali and Super Specialty Cancer and Cardiac hospital at Bathinda under Public Private Partnership (PPP) mode, further the State Government is setting up of high-end Diagnostic Centres in all districts that too under PPP mode. Innovative insurance schemes such as the Bhagat Puran Singh Sehat Bima Yojana will boost private health care investments. Private sector in health care is desired in all the fields – medical education and training, medical technology and diagnostics, research, hospital constructions and ancillary services and finally, the provision of medical services. The State intended to attract private health care providers in the State by offering incentives.

9.1    Definition of new Health Sector Project

Hospitals, Poly-clinics, Diagnostic Centres, Hospitals attached with the Medical Colleges and Medical Research Institutes.

9.2    Applicability

All incentives will be admissible to those new health projects including Public Private Partnership Projects (excluding government projects), which are registered with the Department of Health and Family Welfare. The State has been divided into the following zones –

 

Zone – 1

Zone -2

(i)      Districts of  Sangrur, Barnala,         Mansa, Faridkot, Muktsar,  Ferozepur, Fazilka, Gurdaspur andTarn Taran.

 (ii)    Districts of  Bathinda (outside Municipal Limits of Bathinda City) and Pathankot (outside M.C. Limits of Pathankot City).

(i) Districts of Fatehgarh Sahib,   Hoshiarpur, Moga, Nawanshahar and  Ropar

(ii) Districts of  Patiala (outside Municipal Limits of Patiala City), Ludhiana (outside Municipal Limits of Ludhiana City), SAS  Nagar (outside Municipal Limits of SAS Nagar City), Amritsar(outside Municipal Limits of Amritsar City), Jalandhar (outside Municipal Limits of Jalandhar City) and  Kapurthala (outside Municipal Limits of Phagwara City), Pathankot City and Bathinda City

Note:   No incentive will be available for investment in Amritsar City, Jalandhar City, Mohali City, Patiala City and Phagwara City.

9.2.1 Slabs of Investments (amount in Crore of Rs.)

 

Investment Category

Category–1

Category-2

Category-3

Zone – 1

5  and upto 10

More than 10 and upto 50

More than 50

Zone – 2

25 and upto 50

More than 50 and upto 100

More than 100

 

9.3    VAT and CST Incentives

 

9.3.1 VAT & CST incentive shall be available to new projects as per following details

Investment Category

Category – 1

Category – 2

Category – 3

Zone – 1

45%

60%

75%

Zone – 2

40%

50%

60%

 

9.3.2 The incentive shall be available for the period as mentioned below -

 

Investment Category

Category – 1

Category – 2

Category – 3

Zone – 1

6 years

8 years

10 years

Zone – 2

6 years

7 years

7          years

 

 

9.4    Stamp Duty Incentive:

 

9.4.1 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 DoH&FW, with the proviso that any other charges such as Social Security Fund as levied in schedule-1-B of the Act or other contributions under any other Act shall not be exempted. The exemption of Stamp Duty will be as per following details –

 

Investment Category

Category – 1

Category – 2

Category – 3

Zone – 1

100%

100%

100%

Zone – 2

50%

50%

50%

 

9.4.2 This exemption shall be available for real estate purchased/leased within a period of 3 years from date of approval.

 

9.4.3 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 operation.

 

9.4.4 The quantum of land shall be determined as per the project report appraised by the Financial Institution/Bank/State Government or its agencies involved in PPP project investments.

 

9.5    Electricity Duty Incentive:

 

9.5.1 Exemption from payment of Electricity Duty on Power, including Captive Power consumed by the same project or exported to PSPCL, shall be available to new projects, with the proviso that any contributions made out of the Electricity Duty levied, such as those deposited in the Social Security Fund or State Cancer and Drug Addiction Treatment Infrastructure Fund shall not be exempted. The exemption of Electricity Duty Incentive will be as per following details -

 

Investment Category

Category –  1

Category – 2

Category – 3

Zone – 1

100%

100%

100%

Zone – 2

50%

50%

50%

 

9.5.2 The incentive shall be available for the period as mentioned below –

Investment Category

Category –  1

Category – 2

Category – 3

Zone – 1

6 years

8 years

10 years

Zone – 2

6 years

7 years

8 years

 

9.5.3 This incentive shall commence only after the date of operation. However, eligibility period shall commence from date of approval.

 

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

 

 

9.6    Property Tax Incentive:

 

9.6.1 Exemption from payment of Property Tax shall be available as per following details -

 

Investment Category

Category – 1

Category – 2

Category – 3

Zone – 1

100%

100%

100%

Zone – 2

50%

50%

50%

 

9.6.2 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 mentioned above.

 

9.6.3 This incentive shall commence only after the date of commencement of operations.

 

9.7    Change of Land Use:

 

          No CLU charges for hospitals and Medical Colleges (including hospitals attached with Medical Colleges).

 

9.8    General Provisions:

 

9.8.1 These incentives shall be applicable to new Projects including the projects setup under Public Private Partnership (excluding government projects), Units only.

9.8.2 The new project unit has to be set up at a new site. An existing enterprise which sets up a new unit shall be considered for incentives only if the new unit is located at an independent and distinctly separate site.

9.8.3 Fixed Capital Investment (FCI) shall mean the investment incurred on building, plant & machinery and equipment.

9.8.4 Fixed Capital Investment (FCI) for grant of incentive will be based on the unit investment and not as a chain of units.

9.8.5 The quantum of Fixed Capital Investment (FCI) shall be determined from the Date of submission of application to the concerned Nodal Agency. Thus, any investment made prior to the date of submission of application shall not be included as eligible FCI for the purpose of determining eligibility for incentives.

9.8.6 The availment of incentives will cease either on the exhaustion of the applicable quantum or on the completion of the Eligible Period, whichever is earlier.

9.8.7 The Maximum limit of the sum of all incentives (VAT, CST, Electricity Duty, Stamp Duty, Property Tax and CLU charges etc.) as provided in this Policy that can be availed under this notification shall not exceed 100% of Fixed Capital Investment (FCI).

9.8.8 The State Government may provide higher incentives or any other incentives to specific projects, as it may deem fit. Such cases shall be decided by the Empowered Committee.

9.8.9 The actual Fixed Capital Investment as well as FCI reflected in the Financial Institution / Bank Appraised Project Report shall have to be certified by a Chartered Accountant.

9.8.10 A sum equal to 1% of the Fixed Capital Investment (FCI) shall be contributed into the Punjab State Cancer & Drug Addiction Treatment Infrastructure Fund, constituted under Section-4 of the Punjab State Cancer & Drug Addiction Treatment Infrastructure Fund Act, 2013. Such contribution shall be made in the relevant head by the proponent before the issue of Eligibility Letter. All eligible periods of incentives shall begin with date of approval of project, irrespective of date of commencement of operations.

9.8.11 All matters of interpretation under this Chapter of the Policy – “Incentives for Health Sector” will be referred to the Punjab Govt. (Health & Family Welfare Department) whose decision shall be final.

 

KARAN A SINGH

Principal Secretary to Government, Punjab,

Department of Industries & Commerce

 

 

Annexure - I

 

Negative List of Industries / Sectors which shall not be eligible for incentives under this Policy

 

1.       Distilleries and Breweries and Bottling and Canning Plants.

 

2.         Tobacco, Cigarettes and Gutka Manufacturing.

 

3.         Brick Kilns.

 

4.         Manufacturing of Cement.

 

5.         Vanaspati Ghee Mills.

 

6.         Rice Shellers (With Fixed Capital Investment of less than Rs. 10 Crore).

 

7.         Refining of petroleum products.

 

8.         Iron and Steel Furnaces and Rolling Mills.

 Annexure - II

 

The categories of Electronic Hardware industry which are covered under the policy

(A)

Electronics Products including Nano-Electronics Products and Telecom Products

1

Telecom products including Optical Fiber Equipment; Terrestrial Communication Equipment; Satellite Communication Equipment; IP based new generation soft- switches/routers including L2 and L3 switches, data networking equipment - copper / optical - consumer and carrier grades, for public and private networks;  Transport  systems - DWDM, SDH, PON, Cross-connects, RF over optical fibre, Carrier Ethernet, Packet Optical Transport Platform (P-OTP); Wireless technology - GSM (2G &  2.5G), CDMA, 3G, LTE & LTE Advance, Wi-Fi, WiMAX&WiMAX Advance; Microwave Radio systems  2-70 GHz, Software defined radio, Cognitive radio,  Distributed antenna systems; Equipment related to security and surveillance, processing of speech, data, image, video; Customer Premises Equipment (CPE) - PBX  systems, eadends, 3G Routers, VoIP gateways, Residential gateways, Access points, Routers,  Broadband CPEs, Mobile phones / Mobile handsets / Smart Mobile phones, Set-top boxes, HModems, dongles, data card; Short Range Devices (SRD), Sensors; VSAT based systems - Broadband, Disaster management; Non-conventional energy sources, portable mechanical chargers for handsets, computers; NMS / OSS / BSS systems for all above - SNMP / Openview / CORBA; Customer care & Billing systems; Electronics products for energy management,  Advanced storage batteries such as Li-Ion, Video Conferencing Equipment etc.

2

IT Hardware products including computers, (laptops, tablets, desktops etc.) servers, peripherals like printers, faxes, storage devices monitors, etc.

3

Consumer Electronics like Televisions, Digital Cameras, Camcorders etc

4

Health and Medical Electronics

5

Strategic electronics

6

Solar Photo Voltaic including thin film, polysilicon etc.

7

Light Emitting Diodes (LEDs)

8

Liquid Crystal Displays (LCDs)

9

Avionics

10

Industrial Electronic products including measuring and control equipment, energy meters etc.

11

Nano electronic products

12

e-waste processing/ recycling

13

Automotive Electronics like Anti-lock braking system, Electronic Brake Distribution, Traction Control, etc.

14

Agri-electronics

15

Energy conservation electronics

16

Opto-electronics

17

Bio-metric and identity devices/ RFID

18

Power supplies for ESDM products

(B)

Intermediates:

1

Nano-electronic components

2

Semiconductor wafering

3

Semiconductor chips including logic, memory and analog

4

All Assembly, Testing, Marking and Packaging of ESDM Units

5

Chip components

6

Discrete Semiconductors like Transistors, Diodes

7

Power semiconductors (including diffusion) like FETs, MOSFETs, SCRs, GTDs, IGBT etc.

8

Electromechanical Components and Mechanical Parts such as Multilayer PCBs, Transformers, Coils, Connectors, Switches, Ferrites, Micro Motors, StepperMotors, Films etc

9

Consumables and Accessories such as Mobile Phones and IT accessories - Batteries, Chargers etc., PCBs, Foils, Tapes, Epoxy, Cabinets etc.

10

All Fabrication Manufacturing facilities (Fabs) for ESDM products

 

Note: Any intermediates not covered above shall be decided and permitted under the scheme by the Competent Authority

(C)

Electronics Manufacturing Services (EMS)

1

Electronic Manufacturing Services (EMS)

Note :- Electronic Manufacturing Services (EMS) would mean, units engaged in providing services related to manufacture of sub-assemblies and parts including       integration services to the Original Equipment Manufacturers (OEMs). However, EMS shall not encompass production of final products under their own brand name

 

 Annexure-III

 Rationalisation of Taxes and Fees on Agro and Food processing Sector

 1.       Mandi Fee, Rural Development Fee & Infrastructure Development Fee benefits:

Units will be exempted from payment of mandi fee, rural development fee and infrastructure development fee on basmati, maize, wheat and fruits & vegetables purchased & processed within the State.

2.   Purchase tax on wheat purchased & processed within the State of Punjab will be brought down to 3% both for the existing as well as the new units.

3.       Purchase tax on milk purchased & processed within the State of Punjab will be brought down to 3% both for the existing as well as the new units.

4.       No VAT will be charged on branded atta/suji/maida/dalia manufactured by units purchasing wheat from within the State.

5.       Preservation of Horticulture / Milk / Meat (Frozen raw meat, chicken and fish):

No VAT will be chargeable for preserving the food products purely for enhancing the shelf life of these products by processing units except when the functionality or nature of product is changed by additives or curing processes.

6.       Modernization of Agriculture:

No VAT/Entry tax will be charged on farm equipment.

 

 

 

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