Package of incentives set to give a fillip to industrial growth in Punjab

Chandigarh, September 28, 2014: The package of incentives designed by Punjab Government are set to give a fillip to industrial growth in the state making Punjab most industrialised state of the country.

Stating this here today, a spokesperson of the Punjab Government said that in the package Punjab has been divided into two zones especially for setting up large scale manufacturing. He said that  Zone-1 includes- Fazilka, Ferozepur, Tarn Taran, Amritsar, Gurdaspur, Pathankot, Hoshiarpur, Sangrur, Barnala, Mansa, Moga, Bathinda, Sri Muktsar Sahib and Faridkot. All approved Industrial Parks, Industrial Focal Points and Industrial Estates in all the districts of the state are also included in this zone. Zone-2 includes Fatehgarh Sahib, Ludhiana, Jalandhar, Kapurthala, Shaheed Bhagat Singh Nagar (Nawanshahar), Roopnagar and Ajitgarh (Mohali).

He also said that for the new units with Fixed Capital Investment (FCI)ranging between between Rs. 10 crore to Rs. 25 crore, the eligibility period for availing incentives would be 8 years and these units relating to zone-1 would get 50 % incentive on VAT and 75 % on CST. Their Maximum cumulative quantum of incentive would be 50% of FCI. These units relating to zone-2 would get 25% incentive on VAT, 50% on CST and their maximum cumulative quantum of incentive would be 25% of FCI. For the units with FCI between Rs. 25 crore to Rs. 100 crore the eligibility period would be 10 years. These units falling under zone-1 would get 60% incentive on VAT and 75% on CST and their maximum cumulative quantum of incentive would be 60% of FCI. Units under zone-2 would get 30% incentive on VAT and 50% on CST and their maximum cumulative quantum of incentive would be 30% of FCI.

He said that for the FCI’s ranging between Rs. 100 crore to Rs. 500 crore this period would be of 11 years. These units falling under zone-1 would be getting 70% incentive on VAT and 75% on CST. Their maximum cumulative quantum of incentive would be 70% of FCI and units coming under zone-2 would receive 35% incentive on VAT and 50% on CST. Their maximum cumulative quantum of incentive would be 35% of FCI. For the FCI’s above Rs. 500 crore this period would be 13 years and these units coming under zone-1 would get 80% incentive on VAT and 75% on CST. Their maximum cumulative quantum of incentive would be 80% of FCI. Units under zone-2 shall be getting 40% incentive on VAT and 50% on CST. Their maximum cumulative quantum of incentive would be 40% of FCI. The eligibility period for availing incentives would be determined from the date of approval of project.

He further said that those units which fall under zone-1 and have FCI of above Rs. 10 crore would get 100% electricity duty incentive and their maximum cumulative quantum of electricity duty incentive for eligible period shall be 100% of FCI and units having FCI of above Rs. 10 crore and falling under zone-2 would get 50% electricity duty incentive. Their maximum cumulative quantum of electricity duty incentive for eligible period shall be 50% of FCI. Units coming under zone-1 and having FCI of above Rs. 10 crore would get 100% and units under zone-2 would get 50% of stamp duty incentive. Property Tax incentive for units under zone -1 and having FCI of above Rs. 10 crore would be 100% and those coming under zone-2 would get 50% incentive.

The spokesperson said that the package also gives series of concessions to small and medium units keeping in view their unique role in sustaining industrial growth in the state. He said that  units with FCI ranging from Rs. 1 crore to Rs. 10 crore would get 50% incentive on VAT and 75% on CST. This incentive shall start only date of production. Their eligibility period from date of approval would be 7 years and their maximum cumulative quantum of incentive shall be 50% of FCI. These incentives would be extended to the units falling within approved industrial parks, Industrial focal points and Industrial Estates. They would also be getting 100% incentive on electricity duty and their maximum cumulative quantum of incentive shall be 100% of FCI. They would also get 100% exemption from payment of stamp duty according to schedule 1-A of Indian Stamp Duty Act from the date of submitting application with the nodal agency , but social security fund shall not be exempted.

Regarding Property Tax Incentive the spokesperson said that 100% exemption would be given during 7 years’ eligibility period from approval date and furthermore projects falling under, on extension of limits, Municipal Corporation, Municipal Council or Notified Area Committee shall also be granted exemption from paying property tax during balance eligibility period of 7 years.

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