LexThe Punjab Bureau of Investment Promotion Act, 2016
Punjab · state statute
Open in Lexace · Ask the AI about this actGOVERNMENT OF PUNJAB
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS
THE PUNJAB BUREAU OF INVESTMENT PROMOTION ACT, 2016.
(PUNJAB ACT 32 OF 2016)
(As amended upto the 31st May, 2025)
2025
THE PUNJAB BUREAU OF INVESTMENT PROMOTION ACT, 2016.
Section CONTENTS
1. Short title and commencement.
2. Definitions.
3. Establishment of Bureau.
4. Board of Governors.
5. Executive Committee.
6. Special Committee(s).
7. Functions of the Chief Executive Officer.
8. Powers of Bureau.
8-A. Online Portal.
8-B. Deemed clearance.
8-C. Revocation of deemed clearance.
8-D. Appeal Mechanism.
8-E. Overriding effect on other laws.
8-F. Auto renewal of clearances.
8-G. Inspections.
9. Officers and employees of the Bureau.
10. Meetings.
11. Financing of the Bureau.
12. Power to remove difficulties.
13. Power to issue directions.
14. Power to delegate.
15. Power to make rules.
16. Merger of existing bodies.
17. Protection of action taken in good faith.
18. Saving.
19. Repeal and saving.
THE PUNJAB BUREAU OF INVESTMENT PROMOTION ACT, 2016.
(Punjab Act No. 32 of 2016)
[Received the assent of the Governor of Punjab on the 1st day of November,
2016, and was first published for general information in the Punjab
Government Gazette (Extraordinary), dated the 9th November,2016.]
1 2 3 4
Year No. Short Title Whether repealed or otherwise
affected by the legislation
2016 32 The Punjab
Bureau of
Investment
Promotion Act,
2016.
Amended by Punjab Act No. 15
of 2021
An Act to provide for expeditious clearance of investment proposals (both
regulatory and fiscal) in the State of Punjab and to implement investment
promotion policies that may be announced by the State Government from
time to time and for the matters connected therewith or incidental thereto.
BE it enacted by the Legislature of the State of Punjab in the Sixty-
seventh year of the Republic of India as follows: -
1. (1) This Act may be called the Punjab Bureau of Investment
Promotion Act, 2016.
(2) It shall come into force on and with effect from the date of its
publication in the Official Gazette.
2. In this Act, unless the context otherwise requires, -
(a) “Board of Governors ” or "BoG" means the Board of Governors
of the Bureau;
(b) “Bureau” means the Punjab Bureau of Investment Promotion;
(c) “Chief Executive Officer” means the Chief Executive Officer of
the Bureau;
1[(ca) “clearance” means the grant or issue of no -objection certificate,
consent, allotment, approval, permission, registration, enrolment,
license and the like, granted or issued by any competent authority;
(cb) "competent authority" means any individual or body of
individuals or agency empowered under the relevant Act or any
rules, policy, guidelines framed thereunder, to issue clearance in
connection with the setting up of an industrial undertaking or
1 Inserted by Punjab Act No.15 of 2021, Section 2
Short title and
commencement.
Definitions.
enterprise or such similar establishment, or expansion of existing
enterprise or industrial undertaking or running an enterprise; ]
(d) “entrepreneur” means an entity who decides to set up an enterprise
and includes, -
(i) an individual;
(ii) a Hindu Undivided Family;
(iii) a company;
(iv) a registered firm;
(v) a Limited Liability Partnership as per the Limited Liability
Partnership Act, 2008 (Central Act 6 of 2009);
(vi) an association of persons or a body of individuals, whether
incorporated or not, in India or outside India;
(vii) any corporation established by or under any Central or
State Act or a Government Company as defined under
clause (45) of section 2 of the Companies Act, 201 3
(Central Act 18 of 2013);
(viii) any body corporate incorporated by or under the laws of a
country outside India; and
(ix) a co-operative society registered under any law relating to
a co-operative society;
(e) "Executive Committee ” or "E.C." means the Ex ecutive
Committee of the Bureau;
(f) “Government” means the Government of the State of Punjab in
the Department of Investment Promotion;
1[(fa) “online portal” means the Single Window Portal notified by the
Government for the purpose of issuing clearance;]
(g) “policy” means any notified policy, regulation, package or
programme of the Government;
(h) “prescribed” means prescribed by rules made under this Act;2[**]
(i) “section” means a section of this Act3[; and]
1 Inserted by Punjab Act No.15 of 2021, Section 2
2 Omitted by Punjab Act No.15 of 2021, Section 2
3 Substituted by Punjab Act No.15 of 2021, Section 2
1[(j) “stipulated time” means the maximum time as notified by the
Government from time to time to provide clearance, or to
adjudicate on any appeal presented before the Appellate
Authority.]
3. (1) There shall be established a Bureau to be known as the Punjab
Bureau of Investment Promotion.
(2) The Bureau shall be a body corporate as well as an authority,
having perpetu al succession and a common seal. It shall have the power to
acquire, hold and sell the property, both moveable and immoveable, and shall
by the said name sue or be sued.
4. (1) There shall be a Board of Governors of the Bureau which shall
be the apex governing body for all matters of the Bureau. The constitution of
the Board of Governors shall be as follows, namely: -
(i) Chief Minister; : Chairman
(ii) Minister-in-Charge,
Department of Investment Promotion;
: Senior Vice-
Chairman
(iii) Industries Minister; : Vice-
Chairman
(iv) Finance Minister; : Member
(v) Agriculture Minister; : Member
(vi) Health and Family Welfare Minister; : Member
(vii) Tourism Minister; : Member
(viii) Labour Minister; : Member
(ix) Food Processing Minister; : Member
(x) Information Technology Minister; : Member
(xi) Housing and Urban Development
Minister;
: Member
(xii) Local Government Minister; : Member
(xiii) Science, Technology and Environment
Minister;
: Member
(xiv) Chief Secretary to Government of Punjab; : Member
(xv) Financial Commissioner, Revenue; : Member
1 Added by Punjab Act No.15 of 2021, Section 2
Board o f
Governors.
Establishment
of Bureau.
(xvi) Financial Commissioner, Development; : Member
(xvii) Principal Secretary, Finance; : Member
(xviii) Financial Commissioner, Forests; : Member
(xix) Principal Secretary to Chief Minister; : Member
(xx) Principal Secretary, Health and Family
Welfare;
: Member
(xxi) Principal Secretary, Tourism; : Member
(xxii) Principal Secretary, Housing and Urban
Development;
: Member
(xxiii) Financial Commissioner, Taxation; : Member
(xxiv) Principal Secretary, Labour; : Member
(xxv) Principal Secretary, Information
Technology;
: Member
(xxvi) Principal Secretary, Power; : Member
(xxvii) Principal Secretary, Industries and
Commerce;
: Member
(xxviii) Principal Secretary, Local Government; : Member
(xxix) Principal Secretary, Science , Technology
and Environment;
: Member
(xxx) Principal Secretary, Investment
Promotion;
: Member
(xxxi) Three technical experts to be nominated
by the Government;
: Members
(xxxii) Five representatives of trade, industry and
commerce to be no minated by the
Government; and
: Members
(xxxiii) Chief Executive Officer. : Member-
Secretary
(2) Subject to the overall control and superintendence of the
Government, the Board of Governors shall provide overall policy guidance and
direction to the Bureau and shall be the apex body for all matters relating to the
Bureau. It shall be responsible for, -
(a) approving the regulations and procedures of the Bureau and
allocating such functions to the Executive Committee and the
Chief Executive Officer, which are not otherwise specified;
(b) creation, sanction, abolition and re-designation of posts required
for effective functioning of the Bureau;
(c) approval of any borrowings or hypothecation of any assets of
the Bureau, if required;
(d) approval and sanction, on behalf of the Government, of any fiscal
incentives or other benefits to an investment proposal or project,
falling outside the policie s of the Government of Punjab by way
of amendment of, addition to exception to such policy;
(e) approval of the annual budget, accounts and reports, including the
audit reports of the Bureau; and
(f) making such rules and regulations under this Act, as it may
consider necessary and prope r to transact its business and that of
the Bureau to achieve the assigned task , including matters
concerning finance, accounts and personnel.
5. (1) There shall be an Executive Committee which shall report to the
Board of Governors.
(2) The constitution of the Executive Committee shall be as follow s,
namely: -
(i) Chief Secretary, Punjab; : Chairman
(ii) Principal Secretary, Finance; : Member
(iii) Principal Secretary to Chief Minister; : Member
(iv) Principal Secretary, Industries and
Commerce;
: Member
(v) Principal Secretary, Investment
Promotion; and
: Member
(vi) Chief Executive Officer. : Member-
Secretary
(3) The Executive Committee may invite the concerned
Administrative Secretary or any other officer of a Department as a special
invitee to discuss and finalize any specific proposal or issue of such
Department.
(4) The Executive Committee may co-opt any other member, if so
required, for proper and effective discharge of its functions.
(5) The Executive Committee shall regularly guide, monitor,
supervise and review the functioning of the Bureau.
Executive
Committee .
(6) The Executive Committee shall be responsible for
recommending to the Board of Governors regarding investment proposals
that seek fiscal or other incentives outside the policies of the Government, notified
or formulated from time to time.
(7) The Executive Committee shall carry out such other functions, as
may be assigned to it by the Government or the Board of Governors.
(8) The Executive Committee may refer any matter or issue to the
Governmen t or to th e Board of Governors with its recommendations or
suggestions, if considered necessary; and
(9) The Executive Committee may delegate any of its powers to the
Chief Executive Officer.
6. The Executive Committee may constitute from time to time, such
Special Committee(s), as may be considered necessary to assist it in carrying
out its functions and facilitate investments in the State.
7. Functions of the Chief Executive Officer shall be, -
(a) to receive, process and approve all investment proposals in the
State;
(b) to coordinat e with the Government to encourage new
investment and its actualizatio n in the State in respect of all
sectors of trade, commerce and industry;
(c) to grant requisite approvals if the proposal is covered under the
Punjab Fiscal Industrial Incentives Package, 2013 or any such
similar policy, package or program me of the Government,
subject to the fulfilment of conditions specified for necessary
statutory and other approvals;
(d) to grant approvals in cases where all necessary statutory and
other approvals are received or deemed to have been received;
(e) to issue Certificate of Eligibility for incentives as per policy;
(f) to refer cases which are not fully covered under the policy of
Government to the Executive Committee;
(g) to assist various administrative/line departments whose powers
are devolved upon him under various Legislations /Acts/Rules/
Regulations in evolving a procedure for carrying out annual audit
of the proposals approved by the Bureau during a financial year;
Special
Committee(s) .
Functions of the
Chief Executive
Officer.
(h) to resolv e inter-departmental matters and coordinate with the
concerned departments, qua any investment proposal, through
various officers of line departments working in the Bureau;
(i) to guide a project proposer/applicant with regard to any
investments in the State in such a manner, as he may consider
appropriate to ensure that the investment is made at the earliest;
(j) to authenticate all documents on behalf of the Bureau;
(k) to make such procedures , as may be required for the efficient
functioning of the Bureau. The Bo ard of Governors shall be
notified of such procedures as it deems fit from time to time; and
(l) to discharge such other functions, as may be assigned to him by
the Government or the Board of Governors or the Executive
Committee from time to time.
8. (1) Subject to the overall control and superintendence of the
Government, the Bureau shall exercise powers of all the Departments of the
Government of Punjab as devolved upon it under their respective rules or
regulations or A cts or notifications , as the case may be, to carry out the
objectives of this Act, including but not limited to the following: -
Serial
No.
Name of the Regulatory Authority
Department
Powers vested in the
Bureau
1 Science,
Technology
and
Environment
Punjab Pollution Control
Board
(i) Consent to establish
and consent to operate
under the Water
(Prevention and
Control of Pollution)
Act, 1974 and the Air
(Prevention and
Control of Pollution)
Act, 1981.
(ii) Authorization under
the Hazardous Waste
(Management and
Transboundary
Movement) Rules,
2016.
(iii) Registration for
Recycling under the
Hazardous and Other
Powers of
the Bureau.
Waste (Management and
Transboundary
Movement) Rules, 2016.
(iv) Competent State
Authority Clearance/
Site appraisals /
approvals (under the
Factories Act, 1948).
(v) Authorization under
the E-waste
(Management) Rules,
2016.
(vi) Registration under the
Plastic Waste
Management Rules,
2016.
(vii)Authorization for Bio-
Medical Waste
Management Rules,
2016.
2
Excise and
Taxation
Excise and Taxation
Commissioner
- VAT incentives.
- Registration.
- GST incentives.
3 Labour a) Director of Factories
b) Labour Commissioner
- Shop Registration.
- Permission for
engaging contractor for
labour.
- Annual returns under
Labour Laws.
- Factories License.
- Annual Filing under the
Factories Act, 1948.
- Factory building Plan
Approval.
4 Industries Director of Boilers - Registration under the
Boilers Act, 1923.
5 Housing and
Urban
Development
Department of Housing
and Urban Development
- Change of land use.
- Approval of building
plans.
6 Local
Government
Regional Deputy
Director and
Commissioner, Urban
Local Bodies
- Change of land use.
- Approval of building
plans and Completion
Certificate.
- Waiver of property and
other local taxes.
- NOC of Fire Services.
7 Forests and
Wildlife
Principal Chief
Conservator of Forests
and Wildlife
- Grant of
NOCs/approvals.
- Where
approach/entry/exit
involves forest land.
- Diversion of forest land
(less than one hectare).
8 Power The Punjab State Power
Corporation Limited and
the Punjab State
Transmission
Corporation Limited
- Load sanction and issue
of new electricity
connection.
- Agreement for High
Tension/Extra High
Tension (above 100
KV) wires.
9 Power Chief Electrical Inspector - Certification of
electrical
infrastructure.
- Electricity Duty
exemption.
10 Revenue Financial Commissioner,
Revenue, District
Collector, District
Revenue Officer and
Sub-Registrar.
-Stamp Duty exemption.
(2) The Government may by notification devolve upon the Bureau
such other powers, as may be required from time to time.
(3) These powers shall be exercised by the Chief Executive Officer
on behalf of the Bureau till the commencement of production /operation s of the
project . Thereafte r, all clearance s shall be accorde d by the concerned
Department /Regulator/Agency, as the case may be.
(4) The Bureau shall be the nodal agency of the State to organize
exhibitions, conventions, conferences and Investors ' Summits for the
investment promotion (both within and outside the State) in various sectors.
1[8-A. The Government shall set-up a dedicated online portal which shall
serve as a single window for all clearances, and it shall be incumbent upon all
Departments of the Government to use this online portal for the purpose of
deploying all clearances that are required for the purpose of establishing and
carrying on business in the State of Punjab, as notified by the Government
from time to time.
8-B. (1) Upon failure of the competent authority to issue clearance to any
application filed on the online portal, within the stipulated time, the
application shall be deemed to have been issued such clearance:
Provided that the application is complete in all respects, including the
submission of requisite fees and an undertaking by the applicant to comply with
all provisions of the relevant Act or any rules, policy, guidelines framed
thereunder, and face penal action in case of non-compliance thereof.
(2) Notwithstanding anything contained in sub-section (1) , the
competent authority may, within the first seven days of the submission of the
completed application, ask for additional information from the applicant:
Provided that such request for additional information shall be made only
once by the competent authority
(3) In case the additional information furnished by the applicant to the
competent authority is found to be insufficient or unsatisfactory upon scrutiny,
the competent authority shall be at liberty to rej ect the application within the
stipulated time by issuing an order in writing, giving reasons for rejecting the
application:
Provided that in case no order is issued within the stipulated time by the
competent a uthority, the application shall be deemed to have been issued
clearance.
(4) The deemed clearance shall, for all intents and purposes, carry the
weight of a clearance granted by the competent authority under the relevant Act
or any rules, policy, guidelines framed thereunder.
1 Inserted by Punjab Act No.15 of 2021, Section 3
Online Portal.
Deemed
Clearance.
8-C. (1) The Administrative Secretary concerned, may, through an order
issued in writing, delineating the reasons thereof, revoke the deemed clearance
granted under section 8 -B, within a period of six months from the grant of
deemed clearance, if any submission made by the applicant in the Common
Application Form or any supporting document is found to be false or
fraudulent, or the applicant’s business being run or established on the basis of
deemed clearance issued by the Government is found to be in violation of any
provision of the relevant Act or any r ules, policy, guidelines framed
thereunder, and such a fact is brought to the notice of the Department or agency
concerned.
(2) In case of violation, action shall be initiated against the applicant
by the competent authority under the relevant law:
Provided that any such action shall be initiated after an opportunity of
being heard has been given to the applicant, and the orders are issued in writing
by the concerned Administrative Secretary.
8-D. Any appeal regarding any grievance(s) of an applicant, in respect
of the issuance or rejection or revocation of deemed clearance,
shall lie with the Government of the concerned department, and all appeals
shall be disposed of by passing a speaking order within thirty days from
the date of filing of the appeal.
8-E. Notwithstanding anything inconsistent contained in any other law
of the State Legislature for the time being in force, covering the grant of
clearance under section 8-B, or any rules, policy, guidelines framed
thereunder, the provisions of this Act shall have an overriding effect.
8-F. All clearances granted under the relevant Act or any r ules, policy,
guidelines framed thereunder, shall automatically be renewed on submission
of an undertaking by the applicant that there is no change in the parameters
against which renewal is sought and on submission of requisite fee:
Provided that such renewals shall be online, automatic and non-discretionary.
8-G. The provisions contained in section 8-B shall not debar the competent
authority from carrying out inspections to ensure compliance of
Revocation
of deemed
clearance.
Appeal
mechanism.
Overriding
effect on other
laws.
Auto renewal
of clearances.
Inspections.
conditions of the relevant Act or any rules, policy, guidelines framed
thereunder.]
9. (1) The Head of the Department of Investment Promotion shall be
the Chief Executive Officer of the Bureau. Such an officer shall not be below
the rank of an IAS Officer in the Super time scale.
(2) The Bureau may create such other posts and appoint such other
officers and employees, as it may deem necessary for efficient discharge of
its functions.
(3) As far as possible, the officers and employees of the Bureau, shall
be drawn on deputation/ secondment or recruited on contractual basis on such
terms and conditions, as may be approved by the Board of Governors.
(4) The Chief Executive Officer shall exercise the power of
supervision and control over all the officers and employees of the Bureau. He
shall sign all the contracts for engaging the employees on contract basis. He shall
also be the competent authority to sign all documents, approvals and sanctions
granted or issued by the Bureau.
10. (1) The Board of Governors shall meet as often as required to carry
out its functions.
(2) Likewise, the Executive Committee of the Bureau shall meet as
often as may be required to carry out the task assigned to it.
11. (1) The Bureau shall be financed by the Government by way of an
annual Grant-in-Aid.
(2) The Bureau shall receive such fee or charges on the proposals
processed by it, as may be prescribed by the Board of Governors.
(3) The Bureau may maintain a separate bank account of its receipts
and expenditure.
(4) The accounts of the Bureau shall be audite d annually by the
statutory and government auditors.
(5) The Bureau shall finalize its quarterly and annual receipts and
expenditure accounts within thirty days and sixty days, respectively from the
close of the relevant quarter/year.
(6) The delegation of financial powers shall be such, as may be
Meetings .
Financing
of the
Bureau.
Officers and
employees of
t he Bu r eau .
approved by the Executive Committee from time to time.
12. If any difficulty arises in proper discharge of functions, the Chief
Executive Officer shall make a reference to the Executive Committee with
suggestions/ proposals to remove such difficulties and the decisio n of the
Executive Committee in this regard shall be binding, subject to the ratification
by the Board of Governors.
13. The Government shall, if so required, have the power to issue policy
directions to the Bureau on the matters assigned to it and all such directions shall
be binding on the Bureau.
14. The Board of Governors may delegate any of its powers to the
Executive C o mmittee or the Chief Executive Officer, as the case may be.
15. (1) The Government may, by notification, make rules for carrying out
the purposes of this Act.
(2) Every rule made under this section shall be laid, as soon as may
be, after it is made, before the House of the State Legislature while it is in
session for a total period of ten days, which may be comprised in one sessi on
or in two or more successive sessions and if, before the expiry of the session
in which it is so laid or the successive sessions as aforesaid, the House agrees
in making any modification in the rule or the House agrees that the rules should
not be made, the rules shall thereafter have effect only in such modified form
or be of no effect, as the case may be, however, any such modification or
annulment shall be without prejudice to the validity of anything previously
done or omitted to be done under that rule.
16. On and with effect from the date of comm encement of this Act, the
Government may, by notification, merge any committee or board, functioning
on the matters relating to industries with the Bureau. Upon such merger, the
functions hitherto being performed and the powers being exercised by such
committees or boards, as the case may be, shall vest in the Bureau.
17. No suit or legal proceedings shall lie against the Chairman or other
members of the Board of Governors or the Executive Committee or any officer
or employee of the Bureau in respect of anything which is in good faith done
or intended to be done in pursuance of the provisions of this Act or any rule
made thereunder.
18. All actions taken under Notification no. 7/17/13AS1/1998 dated
Power to
issue
directions .
Power to
delegate.
Power to make
rules.
Merger of
existing
bodies.
Protection
of action
taken in
good faith.
Saving.
Power to
remove
difficulties.
5/12/2013 shall be deemed to have been taken under this Act.
19. (1) The Punjab Industrial Facilitation Act, 2005 (Punjab Act No. 23
of 2005), is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken
under the Act, referred to in sub-section (1), shall be deemed to have been done
or taken under the corresponding provisions of this Act.
Repeal and
saving.