Punjab Deputy Chief Minister Sukhbir Singh Badal on Saturday unveiled the Agro Industrial and Food Processing Policy-2013, announcing a special package of incentives for fixed capital investment ranging from Rs 1 crore to above Rs 100 crore.
Announcing this at a function regarding Agro and Food Processing Policy for Punjab organised by Confederation of Indian Industry (CII) in New Delhi, the Deputy Chief Minister said Punjab would provide 80 per cent VAT (Value Added Tax) and 75 per cent CST (Central Sales Tax) exemptions for 10 years for all projects with fixed capital investment ranging from Rs 1 crore to Rs 25 crore.
He said similarly 85 percent VAT and 80 per cent CST exemption would be given for investment from Rs 25 crore to Rs 100 crore. Mega projects with investment of Rs 100 crore or above will invite 90 per cent and 85 per cent VAT and CST exemption respectively, he added.
Sukhbir while addressing industrialists also announced that property tax exemption of 100 per cent would be also provided for investment up to Rs 100 crore and the mega projects with an investment of Rs 100 crore or above would be exempted from property tax for twelve years.
Among other slew of benefits announced by the deputy Chief Minister was exemption from stamp duty on purchase or lease of land for three years and exemption from Mandi Fee, Rural Development Fund and Infrastructure Development cess.
Sukhbir said no VAT would be charged on branded atta, suji, maida and dalia manufactured by units purchasing wheat from within the state and no VAT would be charged for preserving food products including horticulture, milk and meat purely for enhancing shelf life. The government would also provide subsidy on waxing, grading, cold-storage, packing and freight, ranging from 25 to 50 per cent.
He said his government was taking concrete steps to ensure farmers were able to market their agro products effectively. Sukhbir said the government would promote Private Market Yards in the state by making amendments in the Agriculture Produce Marketing Committee Act.
He also assured industrialists that a concerted drive would be launched to make farmers aware about the benefits of direct marketing and contract farming. Sukhbir also announced that the state government would launch an online portal for ‘Single Window Clearance’ for all types of NOCs from October onwards.
He said, simultaneously, the Administrative Reforms Department had been directed to simplify old acts and rules for quick access to facilities and services to eradicate the hindrances posed by the errant officials. The deputy Chief Minister announced that the State cabinet would take up the issue of establishment of a dispute redressal authority for approval in its next meeting.