Punjab's industrial policy offers few incentives for existing industries

CHANDIGARH: In its enthusiasm to attract new industries to the state, Punjab's industrial policy, 2013, notified on Thursday, seems to offer much lesser incentives for the existing industries. Exemptions on stamp duty, electricity duty on power and property tax applicable during a fixed eligibility period have been included. For instance, 80% exemption on value added tax (VAT) has been offered to new units located in parks from commencement of production and started after the date of issue of this policy, for a period of 10 years from the date of commencement of production for products made and sold in Punjab. Besides, there will be 80% exemption of CST for the new units located in parks on all IT and electronic hardware products for 10 years. Similarly, in case of agro/food processing and hi-tech agriculture industry, VAT and Central Sales Tax (CST) incentive will be "available to new units". The quantum of incentive would be available on VAT & CST payable per annum. This incentive will commence from the date of commercial production. Exemption from payment of property tax will be available to new units during the eligible period of 10 years. "Equal emphasis should have been given to industry that is already here and struggling to survive and this is something that industrialists were looking forward to," rues K S Mahal, past president of Mohali Industries Association.Justifying the disparity, the industrial policy reads, "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."In keeping with this spirit, the state government proposes to encourage setting up of centre of excellence/agri-business Incubators to develop/standardize appropriate food processing technologies based on local produce for their commercial exploitation by entrepreneurs/producers.The centre will also have pilot plant/incubation facility for up scaling of technologies. Besides, the centre will provide training/vocational courses in agro processing to students/farmers/entrepreneurs. The centre will also undertake work like demonstration of good agronomic practices, domestic and international market certification, quality assurance, patenting, brand promotion, logistics etc.What's new?TourismMICE tourism - Acronym for meetings, incentives, conferences and exhibitions. Tourism in which large groups, usually planned well in advance, are brought together for a particular purpose.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.Agro/food processing and hi-tech agriculture Food retail chains- Making a fixed capital investment of more than Rs 100cr will be given exemption of mandi fee (2%) and rural development fund (2%) on purchase of fruits & vegetables.Mega food parks - Agro industrial units coming up in mega food parks set up under Mega Food Park Scheme of ministry of food processing industries will be eligible for incentives under this policy.Information TechnologyReimbursement of VAT paid by the promoter on the purchase of machinery and equipment for the unit, within the stateNo stamp duty will be levied in respect of land allotted by department of information technology/any other development authority of the state to the units.