The Punjab Industrial and Business Development Policy 2022

Punjab · state statute

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Draft Punjab Industrial and Business Development
Policy 2022

Department of Industries and Commerce
Government of Punjab

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Message from Chief Minister, Punjab

It is with great pride and enthusiasm that I present the new Industrial and Business
Development Policy, 2022 of Punjab. This policy is a result of extensive consultations with
experts and stakeholders and has been developed keeping in mind the need for balanced
economic growth, job creation and overall development of the state.
Our aim is to create an enabling environment for the industries and businesses to thrive and
reach new heights. The policy focuses on providing ease of doing business, support for
MSMEs and attracting investment in key sectors. With this policy, we aim to provide a
supportive and conducive environment for businesses to flourish, attract investments and
spur innovation. It outlines various incentives, subsidies and infrastructure development
plans to facilitate ease of doing business.
This policy lays out a comprehensive framework for attracting investment in Ultra mega and
Mega Projects, Anchor Units, Large Units, First Two Units in the Border Zone in each sector
of Manufacturing and Service, facilitating ease of doing business, and promoting MSMEs,
Start up & innovation. It also prioritizes 14 sectors in Manufacturing and 7 Sectors in Service
Category with high potential for growth, such as Agri & Food Processing, Tourism &
Hospitality, IT/ITES, ODOP, Circular Economy Activities, Processing of Agro-waste etc to
drive sustained development.
I believe that this policy will be a game-changer for the state's economy, creating new job
opportunities and driving growth in various sectors. I encourage all entrepreneurs and
investors to take advantage of the opportunities presented by this policy and contribute to
the development of Punjab.
S. Bhagwant Singh Mann
Chief Minister, Punjab

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Table of Contents
Chapter 1: Introduction ................................................................................................................ 11
1.1. Punjab – The Land Of Opportunities ...................................................................................................... 11
1.2. Punjab Industrial And Business Development Policy 2022 .................................................................... 12
1.3. Applicability Of The Policy ...................................................................................................................... 13
Chapter 2: Vision, Mission And Goals ......................................................................................... 14
2.1 Vision ...................................................................................................................................................... 14
2.2. Mission ................................................................................................................................................... 14
2.3. Goals ....................................................................................................................................................... 14
Chapter 3: Key Strategic Focus Areas .......................................................................................... 17
3.1. Ten Core Strategic Focus Areas .............................................................................................................. 17
3.2. Infrastructure ......................................................................................................................................... 17
3.3. Power ..................................................................................................................................................... 17
3.4. Micro, Small And Medium Enterprises ................................................................................................... 17
3.5. Large Enterprises .................................................................................................................................... 17
3.6. Nurturing Innovation And Startup & Entrepreneurship ......................................................................... 17
3.7. Skill Development................................................................................................................................... 18
3.8. Ease Of Doing Business........................................................................................................................... 18
3.9. Fiscal And Non-Fiscal Incentives ............................................................................................................. 18
3.10. Export Promotion ................................................................................................................................... 18
3.12. Stakeholder Engagement ....................................................................................................................... 19
Chapter 4 - General Definitions ................................................................................................... 20
Chapter 5 – Industry Specific Definitions ............................................................................................................ 24
Chapter 6: Infrastructure ............................................................................................................. 32
6.1. Industrial Infrastructure – Key To The Growth Of Industries ................................................................. 32
6.2. Strengthening Of Psiec ........................................................................................................................... 32
6.3. Development Of New Industrial Parks And Industrial Land Banks......................................................... 32
6.4. Development Of Integrated Industrial Townships ................................................................................. 33
6.5. Development Along Industrial Urban Corridors ..................................................................................... 34
6.6. Core, Support And Social Infrastructure To Be Provided In Industrial Estates ....................................... 34
6.7. Common Environment Infrastructure .................................................................................................... 36
6.8. Maintenance Of Industrial Parks ............................................................................................................ 37
6.9. Estate Management ............................................................................................................................... 38
Chapter 7: Power .......................................................................................................................... 40
7.1. Punjab – Robust Power Infrastructure ................................................................................................... 40
7.2. Uninterrupted And Quality Power ......................................................................................................... 40
7.3. Power At Affordable Tariff For 5 Years................................................................................................... 40
7.4. Up-Gradation Of Power Infrastructure To Industrial Areas ................................................................... 40
7.5. Business Friendly Policies By Pspcl ......................................................................................................... 40
7.6. Open Access Of Power ........................................................................................................................... 40
7.7. Rationalization Of Electric Load.............................................................................................................. 40
7.8. Time Bound Incentive Of Ed ................................................................................................................... 41
Chapter 8: Msme Development .................................................................................................. 42
8.1. Msme Sector – Engine For Socio Economic Growth And Employment Generation............................... 42
8.2. State’S Approach To Msme Sector Development .................................................................................. 42
8.3. Setting Up ‘Msme Punjab’ ...................................................................................................................... 42
8.4. Setting Up Of District Level Single Window System For Msme Units..................................................... 43
8.5. Msme Cluster Identification ................................................................................................................... 43
8.6. Msme Cluster Development Programs .................................................................................................. 44
8.7. Access To Technology For Msmes .......................................................................................................... 44
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8.8. Access To Markets For Msmes ............................................................................................................... 45
8.9. Access To Infrastructure For Msmes ...................................................................................................... 46
8.10. Access To Finance For Msmes ................................................................................................................ 46
8.11. Growth Accelerator Services For Msmes ............................................................................................... 46
8.12. Common Environment Infrastructure In Msme Clusters ....................................................................... 46
8.13. Revival And Rehabilitation Of Sick Msme Units ..................................................................................... 46
8.14. Mse Facilitation Councils At District Level.............................................................................................. 47
Chapter 9: Nurturing Innovation And Startup & Entrepreneurship .......................................... 48
9.1. State’S Approach To Innovation And Entrepreneurship ........................................................................ 48
9.2. Startup Punjab - Building A Strong Eco-System For Startups ................................................................. 48
9.3. University And College Incubators ......................................................................................................... 48
9.4. Punjab Innovation Fund ......................................................................................................................... 49
9.5. Incubation Centres By Other Government Organizations...................................................................... 49
9.6. Private Incubators And Accelerators ...................................................................................................... 49
9.7. Setting Up Of Sector Specific Incubators ................................................................................................ 49
9.8. Creation Of Common Infrastructure And Co-Working Spaces ............................................................... 49
9.9. Special Focus On Women Entrepreneurship .......................................................................................... 50
9.10. Special Focus On Sc/Other Gender/Differentially Abled Entrepreneurship........................................... 50
Chapter 10: Skill Development .................................................................................................... 53
10.1. General ................................................................................................................................................... 53
10.2. Punjab Skill Development Mission – Nodal Agency For Skill Development ........................................... 53
10.3. Identifying The Skill Gap In Various Clusters .......................................................................................... 53
10.4. Convergence Of Various Skill Development Schemes ............................................................................ 53
10.5. Setting Up Of University Of Skills And Vocational Education ................................................................. 53
10.6. Setting Up Of New Multi Skill Development Centres ............................................................................. 53
10.7. Setting Up Of Cluster Specific Skill Development Centres ..................................................................... 53
10.8. Skill Training By Large Employers ........................................................................................................... 54
10.9. Skill Registry ........................................................................................................................................... 54
Chapter 11: Ease Of Doing Business ............................................................................................ 55
11.1. Invest Punjab .......................................................................................................................................... 55
11.2. International Desk .................................................................................................................................. 55
11.3. Business First .......................................................................................................................................... 55
11.4. Online Single Window System For Laying Of City Gas Pipeline .............................................................. 56
11.5. Reforms In The Processes Of Core Departments Providing Services To Industries ............................... 56
11.6. Deemed Approval For Various Regulatory Clearances........................................................................... 56
11.7. Reforms In Registration Of Property ...................................................................................................... 56
11.8. Reforms In Labour Regulations .............................................................................................................. 57
11.9. Central Inspection System ...................................................................................................................... 58
11.10. Strengthening Of Third-Party Certification ............................................................................................ 58
11.11. Rationalizing Nocs .................................................................................................................................. 58
11.12 Additional Services Under The Punjab Transparency And Accountability In Delivery Of Public Service
Act, 2018 ............................................................................................................................................................... 58
Chapter 12: Fiscal Incentives ....................................................................................................... 60
12.1. General Provision ................................................................................................................................... 60
12.2. Incentives To Existing Units For Expansion With Or Without Modernization/Diversification ............... 60
12.3. Freezing Of Power Tariff For Five Years ................................................................................................. 61
12.4. Framework For Fiscal Incentives And Other Support Measures ............................................................ 62
12.5. Categorization Of Units In Startup, Msme And Large Units ................................................................... 62
12.6. Thrust Sectors Of The State .................................................................................................................... 64
12.7. Fiscal Incentives For Startup Units ......................................................................................................... 66
12.8. Fiscal Incentives For Msme Units ........................................................................................................... 67
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12.9. Fiscal Incentives For Large Units ............................................................................................................ 71
12.10. Fiscal Incentives For Units In Thrust Sectors .......................................................................................... 72
12.11. Fiscal Incentives For Anchor Units.......................................................................................................... 74
12.12. Special Incentives For 10 Early Bird Units In The New Industrial Parks Approved By The State ............ 77
12.13. Support For Infrastructure Related Schemes ......................................................................................... 77
12.14. Reduction In Stamp Duty For Industrial Units On Registered Mortgage................................................ 79
12.15. Special Relief Package For Sick Msme Units ........................................................................................... 79
12.16. One Time Special Relief Package For Sick Large Units............................................................................ 80
12.18. Special Incentives For Border Zones And Kandi Area ............................................................................. 81
12.19. Incentive For Products Not Covered Under Gst Regime ........................................................................ 81
12.20. Fiscal Incentives To Industrial Parks ....................................................................................................... 81
12.21. Fiscal Incentives For New Ultra Mega And Mega Projects ..................................................................... 82
12.23. Negative List Of Industries ..................................................................................................................... 83
12.24. Sun Set Clause And Transition From Ibdp 2017 ..................................................................................... 83
12.25. Exclusions In The Exemption From Electricity Duty And Stamp Duty .................................................... 85
12.28. Special Fiscal Incentives To Existing Industries To Switch Over To Paddy Straw Fuel Based Boilers ..... 85
Chapter 13 - Fixed Capital Investment (Fci) For The Purposes Of Fiscal Incentives ................ 88
Chapter 14 - General Eligibility Conditions For Availing Fiscal Incentives & Penalty ............... 95
Chapter 15 – General Procedure And Authorities For Sanction Of Fiscal Incentives/ Subsidies
........................................................................................................................................................ 98
Chapter 16 Procedure For Availing Fiscal Incentives ...............................................................105
Chapter 17: Non-Fiscal Incentives .............................................................................................140
17.1 General Provision.................................................................................................................................140
17.2 Department of Housing & Urban Development..................................................................................140
17.3 Department of Tourism & Heritage Board...........................................................................................140
17.4 Department of Local Government.......................................................................................................141
17.5 Department of Labour.........................................................................................................................142
17.6 Department of Transport....................................................................................................................142
17.7 Department of Food & Civil Supplies...................................................................................................142
17.8 Department of Industries & Commerce/PSIEC....................................................................................142
Chapter 18: Stakeholder Engagement And Policy Implementation Unit ...............................144
18.1. Stakeholder Engagement ..................................................................................................................... 144
18.2 Strategic Plan And Performance Indicators.......................................................................................... 145
18.3 Policy Implementation Unit.................................................................................................................. 145
18.4 Governance Mechanism For Implementation Of The Policy................................................................ 146
Annexure -A Net Gst Formula In Accordance With Clause No. 12.26 ............................... ........149
Annexure -B Illustration For Clause 12.8(B)(7), 12.9(2), 12.10(2) And 12.11(4) ......................155
Caf– I (Common Applicati on Form For Incenti ve (Caf) – New Unit ..........................................156
Form-Sd-Application For Claiming Incentives Of Exemption/ Reimbursement Of Stamp Duty
......................................................................................................................................................160
Form – Clu/Edc: - Application For Exemption/Reimbursement Of Clu/Edc ............................162
Form– Ed: Application For Exemption From Electricity Duty ...................................................164
Form Ed1: Electricity Duty ..........................................................................................................165
Form Pt: - Applica tion For The Property Tax Exemption ..........................................................166
Form Pt1: - Performa For Detail Of Property Tax Of Building ...................................................167
Form-Sgst :-Investment Subsidy By Way Of Reimbursement Of Net Sgst/Vat ........................168
Form Sgst 1: - Reimbursement Of Sgst/Vat (To Be Obtained Online Directly By Gmdic From
Concerned Aetc Through Ipbfp In Terms Of Clause 16.5.4(Iii)) ................................................170
Form-Is:- Interest Subsidy To Msmes ........................................................................................172
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Form: Cl: - Additional State Support Under Clcss ......................................................................173
Form Cgtmse: - Additional Support Under Cgtmse ..................................................................174
Form Ex: - Financial Assistance For Emerge Exchange Platform Set Up By Nse ......................175
Form – Ta: - Reimbursement Of Cost Of Technology Acquisition. ...........................................176
Form Zed:- Additional Support To Zero Effect Zero Defect (Zed) Scheme ..............................177
Form -Zed4: Certificate From Quality Council Of India ..............................................................178
Form Ea: - Reimbursement Of Expenses Incurred For Energy/Steam Audit To Msmes .........179
Form Wa : Reimbursement Of Expenses Incurred For Water/Enviornment Audit To Msmes
......................................................................................................................................................183
Form Sa: Reimbursement Of Expenses Incurred For Safety Audit To Msmes .......................185
Form Ec: Assistance For Environment Compliance For Msmes .........................................186
Form-Pr: -Reimbursement Of Expenses Incurred For Patent Registration..............................187
Form Pcr: Additional Support For Performance And Credit Rating Scheme ...........................189
Form Mda: Market Development Assistance For Micro And Small Enterprises. ....................192
Form Mda1: Applica tion Form For Claim Of Marketing Support .............................................193
Form – Dms: - Reimbursement Of Cost Of On Boarding E -Commerce Platform Of Nsic. ......197
Form Gw: - Applica tion For The Exemption Of Ground Water Charges For New Msme Units
......................................................................................................................................................198
Form Y:- Application For Award Scheme ...................................................................................199
Form In1- Application For Registration As Incubator ...............................................................200
Form -Sr - Registration Of Startup ...............................................................................................212
Form Start : Application Format For Claiming Rental Lease Subsidy By Start-Ups. ...............216
Form: Sf - Seed Funding ..............................................................................................................217
Form -Fp: - Reimbursement Of Various Taxes On Food Processing Industries ........................220
Form Specs: - Additional Capital Subsidy To Esdm ....................................................................221
Form: It :- Capital Subsidy To It/Ites, Micro And Small Manufacturing Units In Thrust Sector
And Export Oriented Units And, Micro And Small Service Enterprises Engaged In Providing
Research And Development Activities .......................................................................................222
Form – Bz: - First Two Unit In Border Zone/Kandi Areas. ........................................................224
Form: Mu: Migration From Ibdp — 2017 To Ibdp-2022. ..........................................................225
Form: Rt: Retaining Ibdp 2017 ....................................................................................................227
Form Cida: -Critical Industrial Infrastructure Development Scheme (Ciids) .............................229
Form Cd: - Assistance Under State Mini Cluster Development Programme ...........................231
Form -S(A) – Revival Of Sick Units ...............................................................................................233
Form -S(B) – Revival Of Sick Units ...............................................................................................234
Form 1 : Declaration ...................................................................................................................235
Form 2:Ca Certif icate Regardi ng Fixed Capital Investment ......................................................236
Form 3: Certificate From Financial Institution Regardi ng Fixed Capital Investment ...............237
Form 4: Item Wise, Bill Wise Details Of Expenditure On Land, Building And Planta nd
Machinery ....................................................................................................................................238
Form 5: Certificate From Financial Institution/ Scheduled Commercial Bank Regardi ng Loan
......................................................................................................................................................239
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Form 6: Certificate From Financial Institution/ Scheduled Commercial Bank Regardi ng Loan
......................................................................................................................................................240
Form 7:Ca Certif icate Regarding Expenditure For Raising Fund At Nse ...................................241
Form 8: Ca Certif icate From M er ch a nt Br ok er Regarding Expenditure For Raising Fund At
Nse ...............................................................................................................................................242
Form 9: Ca Certificate For The Expenditure Incurred In Technology Acquisition ..................243
Form 9a: Ca Certificate For The Expenditure Incurred In On Boarding On E- Commerce
Plateform .....................................................................................................................................244
Form 10: Ca Certif icate Of Expenditure Incurred On Energy/Water /Safety Audit .................245
Form 11: Certificate From Regional Officer Of State Pollution Control Board ........................246
Form 12: Ca Certif icate For Claiming Assistance For Environment Compliance .....................247
Form 13:Ca Certificate Of Expenditure Incurred For Acquiring Patent Registration ..............248
Form 14:Ca Certificate Of Expenditure Incurred For Acquiring Credit Rating .........................249
Form 15:Ca Certificate In Respect Of Expenditure Incurred For Acquiring Zed Certification .250
Form 16: Ca Certificate Regarding Fob Value Of Goods Exporters ..........................................251
Form: 17: Details Of Exports .......................................................................................................252
Form 18: Certificate From District Mandi Officer ......................................................................253
Form: 19: Special Power Of Attorney ........................................................................................254
Form: 20-Copy Of The Resolution Pass ed..................................................................................255
Form: 21-Affidavit .......................................................................................................................256
Form: 22-Details Of Employees ..................................................................................................257
Form: 23- Ca Certificate In Respe ct Of Employm ent Generation Subsidy ...............................258
Form: 24 - Ca Certificate Regarding Reimbursement Of Net Sgst ............................................259
Certificate Of Eligibility For The Grant Of Exemption From Payment Of Stamp Duty ............261
Certificate Of Eligibility For The Grant Of Exemption From Payment Of Clu/Edc ...................262
Certificate Of Eligibility For The Grant Of Exemption From Payment Of Property Tax ...........264
Eligibility Certificate - Ed .............................................................................................................266
Certificate Of Eligibility For The Grant Of Exemption From Payment Of Electricity Duty (In
Case Of Expansion With Or Without Modernization/Diversification) .....................................267
Certificate Of Eligibility For The Grant Of Investment Subsidy By Way Of Reimbursement Of
Vat/Net Sgst ................................................................................................................................269
Additional Eligibility Certificate For The Grant Of Investment Subsidy By Way Of
Reimbursement Of Vat/Net Sgst ................................................................................................270
Annual Production Return For The Year ________ ...................................................................271
Bank Guarantee ...........................................................................................................................273
Optimal Land Use Certificate ......................................................................................................276
Passbook ......................................................................................................................................277

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List of Acronyms
AKIC Amritsar Kolkata Industrial Corridor
AOA Articles of Association
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
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
DPIIT Department for Promotion of Industry and Internal Trade
BZ Border Zone
ECS Equated Car Space
EDC External Development Charges
EDFC Eastern Dedicated Freight Corridor
EOU Export Oriented Unit
ESDM Electronic System Design and Manufacturing
FAR Floor Area Ratio
FCI Fixed Capital Investment
FDDI Footwear Design & Development Institute
FIIP(R)
2013
Fiscal Incentives for Industrial Promotion (Revised) 2013
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
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IIDS Industrial Infrastructure Development Scheme
IIT Indian Institute of Technology
ILDP Integrated Leather Development Programme
IPBFP Invest Punjab Business First Portal
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
MOA Memorandum of Association
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
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
PEDA Punjab Energy Development Agency
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
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PSIDC Punjab State Industrial Development Corporation Ltd
PSIEC Punjab Small Industries and Export Corporation
PSPCL Punjab State Power Corporation Limited
PIBDB Punjab Industrial and Business Development Board
QMC Quality Marking Centre
QMS&QT
T
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
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
VCF Venture Capital Fund
ZED Zero Effect Zero Defect

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Chapter 1: Introduction
1.1. Punjab – The Land of Opportunities
▪ Punjab, a state in the northwest region of India, is an economic powerhouse - with 1.5%
of India’s land area, Punjab contributes 2.5 % to India’s GDP.
▪ Punjab is one of the leading States in the country in providing Ease of Doing Business
with Government of India (DPIIT) recognizing it as a ‘Top Achiever ’based on the
assessment of Business Reforms Action Plan (BRAP) 2020.
▪ Invest Punjab has been ranked as top performing Investment Promotion agency with
100% implementation score. This has enabled the State to have best ecosystem for
attracting investment, creating employment opportunities and adding value to the
state GDP.
▪ The State is known for its spirit of enterprise, which is bolstered by the warm and
welcoming people of Punjab. It is this spirit of dynamism that has allowed Punjab to
become the landing place for investors coming to India with many international
companies making Punjab as their second home. Punjab is amongst the top 10 states in
attracting FDI. Punjab is also the preferred investment destination for international
companies looking to launch in India or exploring options to expand their footprint in
the country. Many of these projects have come from foreign investors and MNCs from
13 countries including USA, UK, Japan, South Korea, Italy, Germany, France, Denmark,
Netherlands, Spain, UAE, Singapore, and New Zealand.
▪ Punjab is ranked 3rd in Ease of Logistics in the country (2021) as per the Govt. of India
Logistics Ease across Different States Report. It will be connected to both the Eastern &
Western Dedicated Freight Corridors. In addition, there are 10 ICDs, 6 Private Freight
Terminals & 2 Container Freight Stations in Punjab along with a land and rail port in
Amritsar and 3 multi-modal logistics parks in Ludhiana.
▪ Punjab is also ranked as leader category in the Startup Ranking Framework in the year
2022, also, ranked 8th in the overall export Preparedness Index and 4th in the land
locked states in the export Preparedness Index.
▪ Some of the key attributes of Advantage Punjab include:
o Robust Infrastructure:
- Home to 2 international airports (Mohali and Amritsar) and 4 domestic airports
(Bathinda, Ludhiana, Pathankot, and Jalandhar).
- A new international airport coming up in Ludhiana at Halwara shortly.
- Twice the average rail density in the country
- 100% road connectivity to all towns and villages
o Peaceful Labour:
- No labour unrest faced by any industrial units over 3 decades.
- 24 Hours shifts across genders.

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o Punjab is a Peaceful State with one of the lowest rates of cognizable crime amongst
major industrial States in India.
o Punjab also offers other cutting-edge advantages such as a peaceful workforce that
is also highly skilled. It is also home to prestigious educational institutions such as IIT,
IIM, ISB, NIPER, IISER, NABI, PAU etc.
▪ The State has a business-centric approach which has resulted in policy initiatives such as
the Punjab Anti-Red Tape Act 2021 (reduces the burden of compliance on citizens &
businesses by at least 50% while also mandating the availability of all G2B & G2C
services online), Deemed Approvals (online automatic clearances will be issued on the
expiry of stipulated time-period, based on self-certification by industry unit), Auto-
Renewals etc.
▪ The state has enacted Punjab Right to Business Act 2020 to provide ease of doing
business for New and existing Micro, Small and Medium Enterprises through an
enabling eco system for self-declaration, exemptions, speedier approvals and
inspections to establish and operate in the state.
▪ The state has robust Telecom Policy to provide time bound approvals for installing
Telecom Towers through Invest Punjab Business First Portal for Roof Top Towers,
Underground telecom cables, laying of optical fibre cable including aerial fibre with
towers and 5G Microcells.
▪ All of these have statutory backing in order to provide stability and predictability to
businesses operating in the State.
▪ The State of Punjab is planning to undertake significant reforms in the coming times
which include simplifying processes and implementing technology-based solutions.
These reforms will support businesses throughout key stages in their business lifecycle.
▪ Punjab Government is ready to extend its full support to industries in their endeavours.
1.2. Punjab Industrial and Business Development Policy 2022
1.2.1. The Punjab Industrial and Business Development Policy 2022 envisage
transforming Punjab into a major industrial and export hub. The Policy also
envisions developing the thrust sectors of Punjab into world leaders in their
respective fields by 2027.
1.2.2. The Punjab Industrial and Business Development Policy 2022 aims to facilitate
manufacturing & services sector by creating an investor-friendly environment in
Punjab. It focuses on the development of sustainable business models that can
withstand competition from other businesses within India and the world.
1.2.3. The policy envisages setting up of a Policy Implementation Unit to ensure
necessary support for the implementation of various aspects of the policy.

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1.3. Applicability of the Policy
1.3.1. The policy will be applicable for 5 years from 17-10-2022 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.
1.3.2. Units submitting their CAF under this policy after 17-10-2022 shall bring their unit
into commercial production / expansion production within 5 years from the date
of filing of CAF.
1.3.3. A number of incentives have been provided to the existing MSMEs (in
commercial production before or after the notification of this policy) not linked
with new investment or expansion of project as prescribed at Sr. No.
6,9,10,11,12,13,14,15,16,17,20 and 22 in clause 12.8 of the policy. An eligible unit
can apply for these incentives after registration on the portal provided it has
implemented the relevant incentive scheme under clause 12.8 after the
notification of this policy.
1.3.4. The reference to the State in the Policy is reference to the State Government and
its relevant departments and agencies as specified in this Policy.

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Chapter 2: Vision, Mission and Goals
2.1 Vision
Fostering a Progressive, Innovative and Sustainable Industrial & Business Ecosystem in
Punjab by transforming it as the first choice for doing business.
2.2. Mission
(i) Promoting Punjab as the preferred Investment Destination by accelerating
industrial growth and job creation
(ii) To accelerate growth of Startups and promoting entrepreneurship by nurturing
innovation, improving competitiveness and enhancing capability
(iii) To accelerate growth of MSMEs.
(iv) To develop world class infrastructure for the industry including quality and
affordable power
(v) To facilitate availability of skilled manpower to the Industry
(vi) To create opportunities for moving up the Global Value Chain
(vii) To bring synergy between State programs and Central schemes
(viii) Achieving Global scale, Standards and competitiveness in Products and services
(ix) To have a Circular and sustainable economy
(x) To align targets with Sustainable Development Goals set by UN.
2.3. Goals
2.3.1. To accelerate industrial growth and job creation
(i) To attract maximum investment and create maximum employment in 5 years
(ii) To increase the Share of Secondary and Tertiary sector in GSDP.
(iii) To enable Job Creation – To increase the employability of the youth through skilling
and increase employment opportunities in the State.
2.3.2. To develop world class infrastructure and bring anchor units
(i) To facilitate the development of at least 20 Rural Industrial Clusters and, 15
Industrial Parks in the State.
(ii) To attract at least one Ultra – Mega/Mega/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 tariff for 5 years to the Industry
(ii) To upgrade power supply infrastructure to all the industrial areas to provide quality
and uninterrupted power.
(iii) To strengthen the existing skilling centres including vocational training
institutes/ITIs etc.
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

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