Continuing with its spree to announce one policy after another, the Punjab Government on Tuesday came out with another textile policy. The State Government, to woo investors in this sector, announced a slew of incentives for setting up Integrated Textile Units (ITUs) in the defined Textile Zones in the State.
The incentives offered under this policy are similar to what the State Government offered to all the industrial units under its industrial policy including retention of value added tax (VAT) and central sales tax (CST), complete exemptions on electricity duty, stamp duty, property tax, besides 50 per cent exemption on market fee, rural development fund (RDF) and infrastructure development (ID) cess, among others.
Giving the details of the package of incentives, the State Industries and Commerce director Vikas Pratap said that ITUs with fixed capital investment of Rs 150 crore to Rs 500 crore would be provided retention up to 80 per cent of the quantum of VAT and CST payable per annum. Besides, they would also be provided 100 per cent exemption from payment duty on power, stamp duty on purchase or lease of land, and property tax.
In addition to this, the State Government has provided 50 per cent exemption from payment of market fee, RDF and ID cess on the purchase of cotton. He made it clear that all incentives, offered in the policy, would prevail up to 11 years where as ITUs with investment over Rs 500 crore would avail the same for a period of 13 years and VAT and CST retention for them is 90 per cent.
The ITUs would be eligible for incentives in textile zones in Mansa, Bathinda, Muktsar, Fazilka, Ferozepur, Faridkot, Moga, Barnala, Sangrur, Patiala, Amritsar and Tarn Taran districts, besides all approved Industrial Parks, Industrial Focal Points and Industrial Estates in all districts of the State. Partap added that to facilitate processing units, two common effluent treatment plants (CTPs) of the capacity of 50 MlD each are coming up in ludhiana.