State hopeful of boosting industrial growth
Aiming at giving a much-needed fillip to the State’s industrial growth to make it country’s most industrialised State, the Punjab Government is offering package of incentives to the investors.
As per the package, the State has been divided into two zones specially for setting up large scale manufacturing. Zone-I would include Fazilka, Ferozepur, Tarn Taran, Amritsar, Gurdaspur, Pathankot, Hoshiarpur, Sangrur, Barnala, Mansa, Moga, Bathinda, Sri Muktsar Sahib and Faridkot, besides all approved Industrial Parks, Industrial Focal Points and Industrial Estates in all the districts of the State.
Zone-II would include Fatehgarh Sahib, ludhiana, Jalandhar, Kapurthala, Shaheed Bhagat Singh Nagar (Nawanshahar), Roopnagar and Ajitgarh (Mohali).
“For the new units with Fixed Capital Investment (FCI) ranging between Rs 10 to Rs 25 crore, the eligibility period for availing incentives would be eight years and these units relating to Zone-I would get 50 per cent incentive on VAT and 75 per cent on CST,” Government’s official spokesperson said.
He said that their maximum cumulative quantum of incentive would be 50 per cent of the FCI. “These units relating to Zone-II would get 25 per cent incentive on VAT, 50 per cent on CST and their maximum cumulative quantum of incentive would be 25 per cent of the FCI, he said.
For the units with FCI between Rs 25 to Rs 100 crore, eligibility period would be 10 years. These units falling under Zone-I would get 60 per cent incentive on VAT and 75 per cent on CST and their maximum cumulative quantum of incentive would be 60 per cent of the FCI. Units under zone-II would get 30 per cent incentive on VAT and 50 per cent on CST and their maximum cumulative quantum of incentive would be 30 per cent of the FCI.
“Units with FCI ranging between Rs 100 to Rs 500 crore would be of 11 years. Those falling under Zone-I would be getting 70 per cent incentive on VAT and 75 per cent on CST. Their maximum cumulative quantum of incentive would be 70 per cent of the FCI and units coming under Zone-II would receive 35 per cent incentive on VAT and 50 per cent on CST with maximum cumulative quantum of incentive of 35 per cent of the FCI,” he said.
For FCI above Rs 500 crore, period would be 13 years, and units under Zone-I would get 80 per cent incentive on VAT and 75 per cent on CST with maximum cumulative quantum of incentive of 80 per cent of FCI. Units under Zone-II shall be getting 40 per cent incentive on VAT and 50 per cent on CST with 40 per cent maximum cumulative quantum of FCI. The eligibility period for availing incentives would be determined from the date of approval of project, he said.
Spokesperson said that those units which fall under Zone-I and have FCI of above Rs 10 crore would get 100 per cent electricity duty incentive and their maximum cumulative quantum of electricity duty incentive for eligible period shall be 100 per cent of FCI and those falling under zone-II would get 50 per cent electricity duty incentive and maximum cumulative quantum of electricity duty incentive for eligible period shall be 50 per cent of FCI.
These units would also get stamp duty incentives of 100 per cent and 50 per cent for Zone-I and Zone-II, besides the property tax incentive of 100 per cent and 50 per cent for units under zone-I and Zone-II, respectively. “Package also gives series of concessions to small and medium units keeping in view their unique role in sustaining industrial growth in the State,” he added.
Regarding Property Tax incentive, the spokesperson said that 100 per cent exemption would be given during seven years’ eligibility period from approval date and furthermore projects falling under, on extension of limits, Municipal Corporation, Municipal Council or Notified Area Committee shall also be granted exemption from paying property tax during balance eligibility period of seven years.