For the effective implementation of the new Industrial Policy, the Punjab Cabinet on Monday gave its approval to detailed schemes and operational guidelines for availing fiscal incentives under the same offering something to everyone.
The operational guidelines have been framed after a series of brainstorming sessions with all stakeholders, incorporating their valid and useful suggestions to make them vibrant partners in the industrial growth, said an official spokesperson after the cabinet meeting.
The Cabinet also approved a scheme for ‘Early Bird Units’ and another scheme for setting up the first unit in the Border Zone (BZ).
To facilitate industrial units to migrate to the new policy, the Cabinet has approved a scheme for migration to new policy 2017. Besides, it has also okayed a special relief package for sick MSME (Micro, Small and Medium Enterprises) and large units.
The operational guidelines approved include schemes for exemption from payment of stamp duty or reimbursement thereof to the industrial units, besides approving a scheme for exemption from change of land use (ClU) or the external development charges (EDC) as per given guidelines.
The Cabinet also approved detailed guidelines for grant of exemption from payment of electricity duty, property tax. It also approved another scheme for investment subsidy by way of reimbursement of VAT (value added tax) or State Goods and Services Tax (SGST).
Operational guidelines have been also finalized for providing fiscal incentives, interest subsidy to MSMEs.
Spokesperson said that categorization of units in start-up, MSMEs and large and Anchor units has also been finalized under the operational guidelines. “Fiscal incentives for micro, small and medium enterprises would be sanctioned at district level whereas incentive of large units would be sanctioned at the state level,” said the spokesperson.
To facilitate the easy disbursal of fiscal incentives, an online portal has already been set up for processing all types of incentive cases.
To encourage innovation by MSMEs, the policy guidelines contain a number of schemes including additional state support under Credit linked Capital Subsidy Scheme (ClCSS) for technology updation for MSMEs, financial assistance for Emerge Exchange Platform set up by NSE and Small and Medium Enterprises (SMEs), assistance for technology acquisition of MSMEs.
The MSMEs have been further incentivized by giving them additional support in Zero Effect Zero Defect (SED) scheme of the Central Government, besides giving them reimbursement of expenses incurred on the energy audit, water audit, safety audit and expenses for environment compliance.
To encourage these units in new research and development activities, guidelines have also been framed for reimbursement of expenses incurred on patent registration, quality certification, besides providing them additional support for Performance and Credit Rating Scheme.
To provide marketing support to MSMEs, the Cabinet also approved a Freight Assistance Scheme for export from MSMEs, besides finalizing a scheme for providing fiscal incentives to incubators in the public and private sector. Focusing on IT sector and Start-ups, the Cabinet has finalized operational guidelines for providing them incentives, capital subsidy to IT/ITES units and employment generation subsidy to anchor units.
For the food processing industry, the state Cabinet also approved a scheme for exempting this industry from various taxes.
