LexThe Industrial And Business Development Policy 2017
Punjab · state statute
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Industrial and Business Development Policy 2017 (Amended upto 23-08-2021) Department of Industries and Commerce Government of Punjab
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Message
1. Punjab stands at the cusp of major transformation with a slew of policies on the anvil to accelerate
social and economic development of the State. The policies aim at overcoming the constraints
and challenges being faced by the State in various sectors such as agriculture, infrastructure, real
estate, education, industry and trade and building on the strengths of the State in these sectors.
2. The Industrial and Business Development Policy 2017 is part of the vision to put the State back on
high trajectory of growth and prosperity. The new Policy is a holistic framework for sustainable
industrial growth of the State. The policy is architected around eight core strategic pillars of
Infrastructure, Power, MSME, Ease of Doing Business, Startup & Entrepreneurship, Skills, Fiscal &
Non-Fiscal Incentives and Stakeholder Engagement supported by Sector Specific Strategies for
growth.
3. The Policy marks a decisive shift from department centric approach to a business centric
approach. The State will realign and restructure various Government institutions in line with the
framework of the policy. Building on the success of Invest Punjab, a unified regulator providing
services of 21 departments and agencies under one office, the policy envisages to cover all the
services throughout the business lifecycle to the existing as well as new investors through one
stop digital platform namely Invest Punjab - BusinessFirst.
4. I am sure that the policy will boost industrial activities in the State in a big way and lay the
foundation for long term sustainable growth of Punjab’s Industry and Businesses creating ample
entrepreneurial opportunities and jobs for State’s youth.
Captain Amarinder Singh,
Chief Minister Punjab
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Table of Contents
Chapter 1: Introduction ................................................................................................................ 13
1.1. Punjab – a Progressive State .......................................................................................... 13
1.2. Punjab – a Strong Agriculture base ................................................................................ 13
1.3. Punjab’s Industrial landscape – MSMEs, the backbone of Industry .............................. 13
1.4. Industrial and Business Development Policy 2017 – A new paradigm .......................... 13
1.5. Applicability of the Policy ............................................................................................... 14
Chapter 2: Vision, Mission and Goals .......................................................................................... 15
2.1. Vision .............................................................................................................................. 15
2.2. Mission ............................................................................................................................ 15
2.3. Goals ............................................................................................................................... 15
Chapter 3: Key Strategic Pillars .................................................................................................... 18
3.1. Eight Core Strategic Pillars .............................................................................................. 18
3.2. Infrastructure .................................................................................................................. 18
3.3. Power .............................................................................................................................. 18
3.4. Micro, Small and Medium Enterprises ........................................................................... 18
3.5. Startup and Entrepreneurship ........................................................................................ 18
3.6. Skill Development ........................................................................................................... 19
3.7. Ease of Doing Business ................................................................................................... 19
3.8. Fiscal and Non-Fiscal Incentives ..................................................................................... 19
3.9. Stakeholder Engagement ................................................................................................ 19
Chapter 4: Infrastructure ............................................................................................................. 21
4.1. Industrial Infrastructure – Key to the Growth of Industries ........................................... 21
4.2. Setting up of Punjab Industrial and Business Development Authority .......................... 21
4.3. Development of New Industrial Parks and Industrial Land Banks ................................. 21
4.4. Development of Integrated Industrial Townships .......................................................... 22
4.5. Development along Industrial Urban Corridors ............................................................. 23
4.6. Core, Support and Social Infrastructure to be provided in Industrial Estates ............... 24
4.7. Common Environment Infrastructure ............................................................................ 25
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4.8. Maintenance of Industrial Parks ..................................................................................... 26
4.9. Estate Management ....................................................................................................... 27
Chapter 5: Power .......................................................................................................................... 30
5.1. Punjab – Robust Power Infrastructure ........................................................................... 30
5.2. Uninterrupted and Quality Power .................................................................................. 30
5.3. Power at affordable and fixed tariff for 5 years ............................................................. 30
5.4. Up-gradation of power infrastructure to industrial areas .............................................. 30
5.5. Business Friendly Policies by PSPCL ................................................................................ 30
5.6. Stand by Support to Captive Generators/ Users ............................................................ 30
Chapter 6: MSME Development .................................................................................................. 32
6.1. MSME Sector – Engine for socio economic growth and employment generation ........ 32
6.2. State’s approach to MSME sector development ............................................................ 32
6.3. Setting up of ‘MSME Punjab’ .......................................................................................... 32
6.4. Setting up of District Level Single Window System for MSME units .............................. 33
6.5. MSME Cluster Identification ........................................................................................... 33
6.6. MSME Cluster Development Programs .......................................................................... 34
6.7. Access to Technology for MSMEs ................................................................................... 34
6.8. Access to Markets for MSMEs ........................................................................................ 35
6.9. Access to Infrastructure for MSMEs ............................................................................... 35
6.10. Access to Finance for MSMEs ......................................................................................... 36
6.11. Growth Accelerator Services for MSMEs........................................................................ 36
6.12. Common Environment Infrastructure in MSME clusters ............................................... 36
6.13. Revival and Rehabilitation of Sick MSME units .............................................................. 37
6.14. MSE facilitation councils at district level ........................................................................ 37
Chapter 7: Startup & Entrepreneurship ...................................................................................... 38
7.1. State’s approach to Innovation and Entrepreneurship .................................................. 38
7.2. Startup Punjab - Building a Strong Eco-system for Startups .......................................... 38
7.3. University and College Incubators .................................................................................. 38
7.4. IKG PTU to set up Fund for Startup ................................................................................ 39
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7.5. Incubation Centres by other Government Organizations .............................................. 39
7.6. Private Incubators and Accelerators .............................................................................. 39
7.7. Setting up of sector specific incubators ......................................................................... 39
7.8. Creation of common infrastructure and co-working spaces .......................................... 39
7.9. Special Focus on Women Entrepreneurship .................................................................. 40
7.10. Special Focus on SC Entrepreneurship ........................................................................... 40
Chapter 8: Skill Development ...................................................................................................... 41
8.1. Punjab Skill Development Mission – Nodal agency for Skill Development .................... 41
8.2. Identifying the Skill Gap in various clusters .................................................................... 41
8.3. Convergence of various skill development schemes ...................................................... 41
8.4. Setting up of University of Skills and Vocational Education ........................................... 41
8.5. Setting up of new Multi Skill Development Centres ...................................................... 41
8.6. Setting up of cluster specific Skill Development Centres ............................................... 41
8.7. Skill Training by large employers .................................................................................... 42
8.8. Skill Registry .................................................................................................................... 42
Chapter 9: Ease of Doing Business ............................................................................................... 43
9.1. Invest Punjab .................................................................................................................. 43
9.2. International Desk .......................................................................................................... 43
9.3. Business First .................................................................................................................. 43
9.4. Reforms in the processes of core departments providing services to Industries .......... 44
9.5. Deemed Approval for various Regulatory Clearances .................................................... 44
9.6. Reforms related to land and buildings ........................................................................... 44
9.7. Reforms in granting Utility Permits ................................................................................ 45
9.8. Reforms in Environment Regulations ............................................................................. 46
9.9. Reforms in Labour Regulations ....................................................................................... 46
9.10. Central Inspection System .............................................................................................. 47
9.11. Strengthening of Third Party Certification ..................................................................... 48
9.12. Additional services under Punjab Right to Service Act (RTS) ......................................... 48
Chapter 10: Fiscal Incentives ....................................................................................................... 49
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10.1. General Provision ............................................................................................................ 49
10.2. Incentives to Existing Units for Expansion, Diversification and Modernisation ............. 49
10.3. Freezing of Power Tariff for five years ........................................................................... 49
10.4. Framework for Fiscal Incentives and other support measures ...................................... 49
10.5. Categorization of units in Startup, MSME and Large units ............................................ 50
10.6. Thrust Sectors of the State ............................................................................................. 51
10.7. Fiscal incentives for Startup Units .................................................................................. 52
10.8. Fiscal incentives for MSME units .................................................................................... 54
10.9. Fiscal incentives for Large Units ..................................................................................... 56
10.10. Fiscal incentives for Units in Thrust Sectors ................................................................... 57
10.11. Fiscal Incentives for Anchor Units .................................................................................. 58
10.12. Special incentives for 10 Early Bird Units in the new Industrial Parks approved by the
State ................................................................................................................................ 60
10.13. Support for Infrastructure Related Schemes .................................................................. 60
10.14. Reduction in Stamp Duty for industrial units on registered mortgage .......................... 61
10.15. One Time Settlement (OTS) Policy for dues of PSIDC, PFC and PAIC ............................. 61
10.16. Special Relief package for Sick MSME Units ................................................................... 61
10.17. One Time Special Relief Package for Sick Large Units .................................................... 62
10.17.3. Fiscal incentive for acquisition of sick units and revival thereof ............................ 63
10.18. Interest Waiver Scheme ................................................................................................. 63
10.19. Special Incentives for Border Zone ................................................................................. 64
10.20. Incentive for products not covered under GST regime .................................................. 64
10.21. Negative List of Industries .............................................................................................. 64
10.22. Sun Set Clause and Transition from FIIP(R) 2013 ........................................................... 65
10.23. Exclusions in the exemption from Electricity Duty and Stamp Duty .............................. 65
10.24. Fiscal Incentives to Industrial Parks ................................................................................ 66
11.1. General Provision ............................................................................................................ 67
11.2. Department of Housing and Urban Development ......................................................... 67
11.3. Department of Labour .................................................................................................... 69
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11.4. Department of Science and Technology/Punjab Pollution Control Board ..................... 69
11.5. Department of Transport ............................................................................................... 70
11.6. Department of Food and Civil Supplies .......................................................................... 70
11.7. Department of Industries& Commerce/Punjab Small Industries & Export Corporation 70
Chapter 12: Stakeholder Engagement and Policy Implementation Unit ................................... 71
12.1. Stakeholder Engagement ................................................................................................ 71
12.2. Strategic Plan and Performance Indicators .................................................................... 71
12.3. Policy Implementation Unit ............................................................................................ 71
12.4. Governance Mechanism for Implementation of the Policy ........................................... 73
Chapter 13: Sector Specific Strategies ......................................................................................... 76
13.1. Focus on traditional strength as well as emerging sectors ............................................ 76
13.2. Manufacturing ................................................................................................................ 76
13.3. Services ........................................................................................................................... 76
Annexure – A: Sectoral Strategies for Manufacturing Industries .............................................. 78
Annexure – B: Sectoral Strategies for Service Industries......................................................... 100
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List of Acronyms
ABPF Agri Business Promotion Facility
AIF Alternate Investment Fund
AKIC Amritsar Kolkata Industrial Corridor
AVGC Animation, Visual Effects, Gaming & Comics
CAP Corrective Action Plan
CETP Common Effluent Treatment Plant
CFC Common Facility Centre
CFS Container Freight station
CGST Central Goods and Services Tax
CGTMSE Credit Guarantee Trust for Micro and Small Enterprises
CIAB Centre of Innovative & Applied Bioprocessing
CIIDS Critical Industrial Infrastructure Development Scheme
CLCSS Credit Linked Capital Subsidy Scheme
CLU Change of land use
CNC Computerized Numerical Control
CST Central Sales Tax
DEITY Department of Electronics& Information Technology
DIPP Department of Industrial Policy and Promotion
EBZ Extreme Border Zone
ECS Equated Car Space
EDC External Development Charges
EDC Entrepreneurship Development Centre
EDFC Eastern Dedicated Freight Corridor
EOU Export Oriented Unit
ESDM Electronic System Design and Manufacturing
FAR Floor Area Ratio
FCI Fixed Capital Investment
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FDDI Footwear Design & Development Institute
FIIP(R) 2013 Fiscal Incentives for Industrial Promotion (Revised) 2013
FPO Farmer Producers Organizations
GIS Geographic Information System
GOI Government of India
GPS Global Positioning System
GSDP Gross state Domestic Product
HR Human Resources
IBFSN Integrated business facilitation services network
IDC Industrial Development Centre
ICD Inland Container Depot
IGST Integrated Goods and Services Tax
IIDS Industrial Infrastructure Development Scheme
IIT Indian Institute of Technology
ILDP Integrated Leather Development Programme
IPDS Integrated Processing Development Scheme
IPR Intellectual Property Rights
ISB Indian School of Business
IISER Indian Institute of Science Education and Research
IT Information Technology
ITES Information Technology Enabled Services
KVAH Kilo Volt Ampere Hours
MEITY Ministry of Electronics and Information Technology
MOFPI Ministry of Food Processing Industries
MRO Maintenance, Repair and Overhaul
MSECDP Micro and Small Enterprises Cluster Development Program
MSME Micro, Small and Medium Enterprise
MSDC Multi Skill Development Centres
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NABI National Agri-Food Biotechnology Institute
NIIFT Northern India Institute of Fashion Technology
NIPER National Institute of Pharmaceutical Education and Research
NOC No Objection Certificate
NRSE New and Renewable Sources of Energy
NSE National Stock Exchange
OTS One Time settlement
PAPRA Punjab Apartment and Property Regulation Act (PAPRA) 1995
PBIP Punjab Bureau of Investment Promotion
PBTI Punjab Biotechnology Incubator
PFC Punjab Financial Corporation
PIU Policy Implementation Unit
PMA Preferential Market Access
PPCB Punjab Pollution Control Board
PPP Public Private Partnership
PSU Public Sector Undertaking
PICTC Punjab Information and Communication Technology Corporation Ltd.
PSAMB Punjab State Agricultural Marketing Board
PSIDC Punjab State Industrial Development Corporation Ltd
PSIEC Punjab Small Industries and Export Corporation
PSPCL Punjab State Power Corporation Limited
PIBDA Punjab Industrial and Business Development Authority
QMC Quality Marking Centre
QMS&QTT Quality Management Standards and Quality Technology Tools
RCF Rail Coach Factory
R&D Research and Development
RG Recreation Ground area
RTS Right to Service Act
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SAC Site Appraisal Committee
SEBI Securities and Exchange Board of India
SC Scheduled Caste
SGST State Goods & Service Tax
SIDBI Small Industrial Development Bank of India
SME Small & Medium Enterprise
SPV Special Purpose Vehicle
STPI Software Technology Parks of India
TC Technology Center
T&CPD Town and Country Planning Department
TEQUP Technology and Quality Upgradation Scheme
VAT Value Added Tax
VMC Vertical Machining Centres
VC Fund Venture Capital Fund
ZED Zero Effect Zero Defect
Chapter 1 - Introduction
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Chapter 1: Introduction
1.1. Punjab – a Progressive State
The State of Punjab is known for its leadership position in the country with rapid strides in all
round growth and prosperity. The State has done remarkably well in sectors across the spectrum
such as Agriculture, Industry, Health, Education, Sports, Arts, Literature and Culture. The State
has excellent infrastructure, human capital, progressive and enterprising people, who can
transform every potential opportunity into success. Punjabi diaspora is spread across the world
and has carved out a niche for itself.
1.2. Punjab – a Strong Agriculture base
1.2.1. The State has done exceedingly well in Agriculture and has earned the epithet of “Granary of
India”. Punjab is the highest contributor of wheat and rice to the central procurement pool.
Agriculture and allied services are one of the key strengths of the State. Punjab has highest per
capita availability of milk which is almost four times higher than all India level. It is also the 2nd
highest cotton and blended yarn producer in the country. Punjab has highest productivity of
Kinnow, a citrus fruit in the country and highest production of honey in the country.
1.2.2. Agriculture, however, has limited potential to drive future economic growth of the State and it
is the secondary and tertiary sectors, which will play an important role in future economic
growth of the State and creation of jobs for its youth.
1.3. Punjab’s Industrial landscape – MSMEs, the backbone of Industry
1.3.1. Punjab has emerged as the leading hub for textile-based industries such as apparel
manufacturing, spinning and hosiery exports. Further, engineering sector is a major contributor
in the economy of Punjab. Over the last decade, it has grown more than 16%, and constitutes
23% of the total industrial output of Punjab.
1.3.2. The key strength of Punjab is its thriving eco-system of well-established Micro, Small and
Medium enterprises. Punjab is home to approximately 1.6 lakh MSME units, which are one of
the most important pillars of the industrial growth. Punjab’s industry is dominated by small and
medium enterprises. It has a rich industrial base of MSME units belonging to Auto Components,
Bicycle Parts, Hosiery, Sports Goods, Agricultural Implements and many others.
1.3.3. Punjab leads the Country in industrial growth for more than four decades till 1990s. The State
has also given rise to some of the prominent industrial houses of the country.
1.4. Industrial and Business Development Policy 2017 – A new paradigm
Chapter 1 - Introduction
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1.4.1. The present policy ushers bold reforms, restructures institutions, and presents a holistic
framework for sustainable industrial growth of the State. The policy is architected around eight
core strategic pillars of Infrastructure, Power, MSME, Ease of Doing Business, Startup &
Entrepreneurship, Skills, Fiscal& Non-Fiscal Incentives and Stakeholder Engagement supported
by Sector Specific Strategies for growth. The policy gives a great thrust to the development of
MSME sector. The policy also aims at promoting growth of service industries apart from the
traditional manufacturing industries.
1.4.2. In true spirit of the cooperative federalism, the policy envisages substantial alignment and
synergy with respective sectoral policies of the Central Government and would focus on
optimum utilization of the same and further building upon it.
1.4.3. The policy envisages setting up of a Policy Implementation Unit to ensure necessary support for
the implementation of various aspects of the policy.
1.5. Applicability of the Policy
1.5.1. The policy will be applicable for 5 years from the date of notification and can be extended further
by the State. The policy may be amended and modified in the course of implementation,
however, all such amendments and modifications shall be applied prospectively and shall not
curtail any benefit or concession already granted under the policy.
1.5.2. The reference to the State in the Policy is reference to the State Government and its relevant
departments and agencies as may be specified in the detailed schemes for the implementation
of the Policy.
1.5.3. The definitions, standard operating procedures and other modalities for fiscal and non-fiscal
incentives and other aspects of the policy will be given in the detailed schemes for the
implementation of the Policy.
Chapter 2-Vision, Mission and Goals
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Chapter 2: Vision, Mission and Goals
2.1. Vision
To develop the State as one of the most economically developed States in the Country and make
it the best State for doing business.
2.2. Mission
(i). To accelerate industrial growth and job creation
(ii). To develop world class infrastructure for the Industry
(iii). To provide quality and affordable power to the Industry
(iv). To accelerate growth of MSMEs
(v). To focus on Start-ups and Entrepreneurship
(vi). To facilitate availability of skilled manpower to the Industry
(vii). To improve the ease of doing business in the State
(viii). To build institutional capacity and enhance institutional linkages
(ix). To bring synergy between state programs and central schemes
2.3. Goals
2.3.1. To accelerate industrial growth and job creation
(i). To attract Rs. 5 lakh crore of investment in 5 years
(ii). To increase the Share of secondary sector in GSDP to 30% and tertiary sector to 62%
(iii). To enable Job Creation – At least one job per household to fulfil GharGharRozgaar
Mission of the State
2.3.2. To develop world class infrastructure and bring anchor units
(i). To develop 4 industrial parks and 10 Industrial estates in 5 years
(ii). To attract at least one anchor unit in various manufacturing and service industry
Sectors
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2.3.3. To provide quality and affordable power to the Industry
(i). To provide power at affordable and fixed tariff for 5 years to the Industry
(ii). To upgrade power supply infrastructure to all the industrial areas to provide quality and
uninterrupted power
2.3.4. To accelerate growth of MSMEs
(i). To carryout in depth study of 10 clusters every year for specific interventions to increase
their competitiveness
(ii). To upgrade and set up common facility centres in 10 clusters every year
(iii). To upgrade and set up 10 Technology centres in the State
2.3.5. To focus on startup and entrepreneurship
(i). To facilitate 1000 start-ups in 5 years
(ii). To set up 10 incubation centres/ accelerators in the State particularly focusing on Digital
manufacturing, Lifesciences (Biotechnology), Agro &Food Processing and Information
Technology
(iii). To build strong linkages with all the major institutions
(iv). To facilitate 50 Entrepreneurship Development Centres in the colleges
2.3.6. To facilitate availability of skilled manpower for the industry
(i). To set up one Skill University in the State
(ii). To set up one Skill centre for each identified industrial cluster
(iii). To set up advance skilling on hi-tech manufacturing, design and IT skills for 5 identified
sectors
2.3.7. To improve the ease of doing business in the State
(i). To be in top 5 States in the Country in ease of doing business in 3 years and top position
in 5 years
(ii). To strengthen Invest Punjab initiative by setting up of BusinessFirst portal for a single
unified interface to the Industry and Businesses for all regulatory and fiscal services
throughout their lifecycle
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(iii). To re-engineer the processes of 7 core departments on priority namely Industry, Power,
Pollution Control, Labour, Housing & Urban Development, Local Department and
Taxation to make them extremely simple, industry friendly and completely digital
2.3.8. To build institutional capacity and enhance institutional linkages
(i). To restructure existing entities and empower them through statutory powers to
translate the vision and mission into reality
(ii). To set up a Policy Implementation Unit to support the implementation of various
aspects of the policy and monitor the progress
(iii). To set up effective mechanism for talent acquisition for specialized projects,
organizations and other initiatives
(iv). To set up effective mechanism for partnering with various national and international
agencies and develop effective PPP model for infrastructure, technology support, skills
and other requirements of the Industry
2.3.9. To bring synergy between state programs and central schemes
(i). To strengthen liaison office at Delhi with a strong team to liaison across the Central
Ministries and Agencies to ensure that State draws benefits from all the relevant Central
Schemes
(ii). To ensure optimum utilization of central schemes by respective departments and
agencies of the State with support from Policy Implementation Unit
Chapter 3: Key Strategic Pillars
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Chapter 3: Key Strategic Pillars
3.1. Eight Core Strategic Pillars
In order to provide a holistic support for the growth of existing industries as well as attracting
new manufacturing and service industries, the State would focus on the right set of drivers and
enablers to create a business friendly environment. The State has identified eight core strategic
pillars for the growth and promotion of industries in the State
3.2. Infrastructure
The State would develop quality industrial infrastructure with robust policies for its
maintenance. The Industrial Parks and Industrial Estates would be brought under one agency
and all the necessary amenities and common facilities will be provided in these estates. All the
estate management policies will be simplified. The infrastructure development agency will be
given statutory powers and suitably strengthened.
3.3. Power
The State recognizes that power is one of the most crucial input for the industry. The State will
accordingly make provision for quality, reliable and cost-effective power to give a great boost to
the Industry. The State is power surplus today. The State will provide power to the Industry at
affordable and fixed tariff for 5 years. This would benefit industries across a broad spectrum and
will bring much needed respite to the industry. The State would utilise this period of five years
to build a strong support system to enhance the productivity, efficiency and competitiveness of
the Industry in the State.
3.4. Micro, Small and Medium Enterprises
The State has a strong base of MSME units. MSMEs play a crucial role in providing large
employment opportunities at comparatively lower capital cost. MSMEs also help in
industrialization of rural & backward areas, thereby, reducing regional imbalances. The MSMEs
in the State are facing a myriad of challenges. The State would build suitable capacity to focus
on the development of MSMEs to make it a highly vibrant and dynamic sector.
3.5. Startup and Entrepreneurship
Innovation and Entrepreneurship are crucial for future growth of State’s economy. The State
would support cluster specific bottom up approach to build and strengthen Startup and
Entrepreneurship ecosystem in the State. The State would follow an entrepreneur centric
approach fostering connections and learning. The State will facilitate networking between
entrepreneurs and entrepreneurship support organizations by bringing entrepreneurs together
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in an environment that catalyzes learning. The State would set up a dedicated organization for
spearheading its strategy and action plan for promotion of Startup and Entrepreneurship.
3.6. Skill Development
The State has already set up a State Skill Development Mission, which would be further
strengthened. The State would ensure convergence of various skill training schemes to bring
scale and synergy. The State is conscious of the dire need for the Industry to adopt next
generation manufacturing to become globally competitive. Given high dependence on low skill
labour, re-skilling or up-skilling of existing workforce will be required to make them ready for
the new requirements. The State would set up cluster specific skill centres for various
manufacturing sectors to ensure skilled workforce for the Industry. The State would also focus
on employment generating service industry and train its youth for service industry. The State
would strengthen industry institute interaction to enhance the employability of youth and
would set up GharGharRozgar portal to connect skilled youth to the Industry.
3.7. Ease of Doing Business
The State recognizes the utmost need for providing conducive environment to the industry and
businesses in the State. The State would strengthen Invest Punjab initiative by setting up
“Business First” portal to provide all regulatory services and fiscal incentives to the businesses
through one common integrated platform and business friendly service delivery network. Each
business will be given a unique identification. This will avoid supplying information to multiple
web portals and creating multiple credentials. The State would set up District Bureau of
Enterprise to provide a wide range of services to the industry. The State would reengineer the
processes of seven core departments connected with Industrial development and growth so as
to make them extremely simple and easy to follow.
3.8. Fiscal and Non-Fiscal Incentives
The State would provide a variety of fiscal and non-fiscal incentives to support the growth of
existing industries and to attract new investments. The policy provides strong support to MSMEs
to enhance their access to Finance, Technology, Market, Infrastructure and other needs. The
State has identified certain thrust sectors for growth and they have been provided higher
incentives. Keeping in view the significance of Anchor investors, they have been offered special
incentives in the policy. It has also given a package of incentives for revival of sick industries.
Extreme Border Zone has also been given special incentives. The policy provides a host of non-
fiscal incentives to promote industrial growth.
3.9. Stakeholder Engagement
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Industrial growth and development requires engagement with a very diverse set of
stakeholders. The Stakeholder Engagement will be a key essential for the success of the Policy.
The policy aims to identify key stakeholders from the State and Central government, Key
Industry leaders and Industry Associations, private sector, academic institutions, civil society, as
well as development agencies and foreign governments that would require continuous
engagement. The policy suggests approaches on how to effectively engage them throughout the
implementation of the Policy.
Chapter 4: Infrastructure
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Chapter 4: Infrastructure
4.1. Industrial Infrastructure – Key to the Growth of Industries
Industrial Infrastructure is one of the key mainstays in the long term development of the
Industry. The Government aims to develop robust infrastructure including core and supporting
infrastructure which shall provide long term benefits to the industry and set the State on the
path of planned industrial growth. It is also the endeavour of the Government to simplify laws
and rules for infrastructure development, management and maintenance through a single
Industrial Infrastructure Development Agency in the State.
4.2. Setting up of Punjab Industrial and Business Development Authority
4.2.1. In order to streamline all the activities pertaining to Industrial Infrastructure development,
maintenance and management, Punjab Small Industries and Export Corporation (PSIEC) needs
to be strengthened and the State would set up Punjab Industrial and Business Development
Authority (PIBDA), a statutory body to spearhead industrial development including industrial
infrastructure in the State.
4.2.2. All Industrial estates, industrial parks, industrial focal points, industrial growth centres etc. (to
be referred as Industrial Parks hereafter) developed by the Directorate of Industries (Punjab),
Punjab Small Industries & Export Corporation (PSIEC), Punjab Infotech (PICTC) and Punjab Agro
Industries Corporation and other such agencies shall be transferred to the Authority for
development, management and maintenance.
4.2.3. The Authority shall be declared local authority for the purposes of maintaining various Industrial
Parks and shall also be vested with the powers of Special Urban Planning and Development
Authority and other powers under Punjab Regional and Town Planning and Development Act,
1995 for ensuring planned development of various designated industrial areas under the Master
Plan of respective cities.
4.3. Development of New Industrial Parks and Industrial Land Banks
4.3.1. In order to provide impetus to rapid industrial growth, the State would develop new Industrial
Parks, which shall have the best-in-class infrastructure. The State through the Authority will
develop 4 major Industrial Parks and 10 other Industrial Parks covering general and sector
specific requirements of various industrial sectors. The State would help identify and transfer
various village common lands and unutilized government lands for being developed as Industrial
Parks. In addition, the Authority will also keep a ready shelf of land bank, earmarked after their
due feasibility is established, which can be offered to the Industries.
Chapter 4: Infrastructure
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4.3.2. In order to reduce the upfront investment from the State in assembling and developing various
land pockets, making projects viable and greater benefits to the stakeholders, the State would
take following steps:
(i). The State will frame appropriate land pooling scheme for acquisition of land for
industrial parks.
(ii). The State will frame appropriate scheme to develop Industrial Parks in partnership with
land owners, where land is contributed by the land owners and the authority will bring
expertise for development and marketing of the Park. This will be particularly helpful in
case of village common lands and a revenue sharing arrangement with village panchayat
will bring greater benefits to both village panchayat and the State.
(iii). In case of unutilized government lands, the same may be made available free of cost to
the Authority for developing industrial parks.
(iv). The Authority would also mobilize upfront payments from the allottees to meet upfront
cost of acquisition of land by allotting the lands with the finalization of layout plan and
its approval by the competent authority.
(v). The land value in the area appreciates considerably due to setting up of industrial park
at any location, the State would devise a scheme to share part of the increased stamp
duty with the Authority.
(vi). In order to reduce the development cost, the State would avail the financial assistance
and grants available for development of Mega Food Parks, ESDM Parks, Amritsar Kolkata
Industrial Corridor development, Integrated Leather Park, MSME infrastructure
upgradation and other Central schemes for infrastructure development.
4.4. Development of Integrated Industrial Townships
4.4.1. Integrated development – Live, Work and Play
Industrialization and urbanization are related phenomenon and therefore the State would have
an integrated approach to face the challenges arising from the same. The State would develop
integrated townships with provision of residential, industrial, commercial and other needs
rather than developing industrial areas and residential areas separately. These industrial
townships should follow a philosophy of Live, Work and Play to ensure high degree of quality of
life and liveability.
4.4.2. Land to the Industry at reasonable price – A large scale mixed land use project would be able to
provide land to the industry at reasonable price reaping benefits from other components of the
project.
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Industrial and Business Development Policy 2017 Page 23 of 121
4.4.3. Attracting talent – A township based on live, work and play will be able to provide necessary
support for various needs of the professionals and as a result will help in attracting talent for
the industry.
4.4.4. Inclusive growth - The needs of urban poor and industrial labour are often not met adequately
and they are forced to live in the slums. Various schemes for housing for poor could not be
effectively implemented due to lack of availability of land. The new townships will provide land
for social housing to cater to the needs of weaker sections of the society particular the industrial
workers who would need housing and other facilities.
4.4.5. Decongestion of cities – The State will also enable the industries located in the congested areas
of the city or non-conforming zones (where Master Plan stipulates their shifting after certain
time period) to the new areas being developed and allow the inner areas for more value added
city use.
4.5. Development along Industrial Urban Corridors
4.5.1. Amritsar Kolkata Industrial Corridor (AKIC)
The State will develop area falling in AKIC along the Eastern Dedicated Freight Corridor (EDFC)
as major industrial hub. It will cover important towns of Rajpura, Sirhind, Doraha, Sahnewal and
Ludhiana. The State has already identified various land parcels for the purpose of setting up
Industrial Estates along AKIC.
4.5.2. Chandigarh-Amritsar Industrial Corridor
Chandigarh-Amritsar is an important urban industrial corridor. The State will strengthen the
existing industrial clusters on this corrExcerpt shown. Open the full act in Lexace.