Working out mechanics for industrial growth in Punjab, the State Cabinet on Monday finally announced Rs 3 per unit reduction in the industrial power tariff in sync with its pre-poll promise, along with a slew of measures for the revival of the industrial sector.
From November 1, the industrial power tariff will be fixed at Rs 5 per unit, against the current rate of Rs 8 per unit, as the State Council of Ministers approved the New Industrial and Business Development Policy-2017.
The announcement came a day after the electorate “reposed its trust” in the Congress government by voting its candidate Sunil Jakhar to a massive victory.
The move is being interpreted as an attempt by the Congress Government to tell the people that it not just riding on the anti-incumbency wave against the party in power at the Centre but is working its way into the “hearts of people”.
Besides, the policy also paved way for a one-time settlement of industrial loans, creation of Rs 100 crore fund to promote start-up culture, establishment of a skills university and industry-specific skill development centres, among other things.
As per the policy, all skill training schemes in the state will be brought under one agency — the Punjab Skill Development Mission.
The Cabinet meeting, chaired by Chief Minister Capt Amarinder Singh, gave its nod to the salient features of the policy, including the provision regarding five-year fixed power tariff for existing and new industries, said the government’s official spokesperson.
Besides incentives for expansion and upgrade of existing units, the new policy envisages an OTS for loans taken from the Punjab State Industrial Development Corporation (PSIDC), the Punjab Financial Corporation (PFC) and the Punjab Agro Industries Corporation ltd (PAIC).
Spokesperson said that the OTS Policy-2017 would help in releasing blocked industrial investments and assets and put these to productive use so as to revive the existing industries in Punjab. It will also result in reducing the burden of litigation, he said.
“State Power Minister Rana Gurjit Singh abstained from the discussion on the one-time settlement of loans as his company would also benefit from the move,” the spokesperson said.
Industrial infrastructure development is a priority and the provisions provide for development of border districts, extreme border zone and ‘kandi’ areas, he said adding that the Chief Minister proposed hiking incentives for the industry in border areas from 125 to 140 percent.
The new policy has been prepared in consultation with all stakeholders, including industrial associations and the departments concerned.
Aimed at promoting ease of doing business, the policy is founded on the eight strategic pillars of infrastructure, power, MSME, start-up and entrepreneurship, skill development, ease of doing business, fiscal and non-fiscal incentives, stakeholder engagement and policy implementation unit and sector specific strategies, the official said.
It envisages establishment of 10 technology centres, 10 common facility centres and 10 clusters for development in the first phase.
Besides, the state would set up MSME (Micro, Small and Medium Enterprises) facilitation Councils at ludhiana, Jalandhar, Amritsar, Mohali and Patiala to provide remedial measures.
The policy also enables SINGlE-window facility to existing enterprises at the district level and special relief for sick MSME units including deferment of recovery of arrears of electricity duty, power bills, house tax and water charges for a period of five years.
These units shall also be exempted from minimum charges for electric connection during closure period and incentive of exemption from electricity duty for two years shall also be provided, the official said.
The State would also provide a one-time special relief package for BIFR-registered or declared sick large units by reimbursement of 75 per cent of net VAT or net SGST for a period of five years for border districts and 50 per cent of net VAT or net SGST for a period of five years for other districts, and deferment of recovery of arrears of electricity duty, power bills, house tax and water charges for a period of five years, he added.
These units shall be exempted from minimum charges for electric connection during closure period and incentive of exemption from electricity duty for three years shall also be provided.
Development of 14 new industrial parks and standardisation of all estate management policies and procedures have also been provided for in the industry.
It also provides for establishment of exhibition and convention centres in Mohali, ludhiana, Jalandhar and Amritsar in the first phase, the spokesperson said.
To promote stakeholder engagement and governance mechanism, it is proposed to set up Punjab Industrial and Business Development Board under the chairmanship of Chief Minister and comprising of other relevant Ministers, Chief Secretary and other Administrative Secretaries.
Specific strategies will be formulated for specific sectors to address their respective problems and promote their growth.