Punjab approves incentives for SMEs in industrial zones

The Punjab government today approved a proposal to extend fiscal incentives to units located in industrial zones, benefitting small and medium enterprises in the state.
The fiscal sops under the Fiscal Incentives for Industrial Promotion (revised), 2013 Policy were available only to units that were located in industrial parks.
Those units which are located in industrial zones as per master plans with an investment of Rs 1 to 10 crore would also be covered under the policy.
A decision to this effect was taken by the Cabinet in its meeting held under the chairmanship of Punjab Chief Minister Parkash Singh Badal here, an official spokesperson said.

He said this step would be instrumental in giving a fillip to small and medium scale industries.
The incentive policy was also changed to include the entire district of Ropar under Zone -I category instead of only Anandpur Sahib Sub Division, entitling any future industry in entire district for higher incentives under the policy.

In a bid to incentivise and extend full support to the existing industry in the state, the Cabinet asked the departments of Industries & Commerce and Investment promotion to prepare a comprehensive package in this regard and put forth in the next meeting of the Cabinet.

In another major decision, the Cabinet also gave go ahead to supply power at the effective rate of Electricity per unit (with utilisation factor of 50 per cent or more) at less than Rs 5 per unit (FCA extra) to those industrial units which intend to set up their units during Invest Punjab summit or which have already installed their units to avail 'Fiscal Incentives for Industrial Promotion (revised), 2013'.
Such prospective investors would be entitled for this incentive for five years from coming into commercial operations whereas those who have already begun such operations could avail this benefit for five years with effect from October 28, 2015.

The Cabinet also approved the 'The Punjab Development of Trade and Industries Ordinance, 2015' for the creation of fund to be utilised for the execution of several works for the purpose of development of trade, commerce and industry in the state such as development of industrial estates, focal points and industrial clusters being developed by the government, to provide infra structure to the trade and industry, financial incentives, grants, subsidies etc.
In order to meet the aforesaid purposes, the state government would impose entry tax on goods brought into the state.
The rate on which the tax was to be imposed on different goods would be specified by the government from time to time.

On the request of various marriage palace owners which were not covered under the marriage palace regularisation policy of October 2012, they would now get the benefit of this policy by paying additional compounding fees.
They would be liable to pay all other charges as enshrined under the regularisation policy of 2012.