Punjab Cabinet Decisions 3 February 2023

Punjab Cabinet Decisions 3 February 2023

With a thrust on creating an enabling environment for the Industries & Business for balance economic growth, job creation and overall Development of the State, the Punjab Cabinet led by the Chief Minister Bhagwant Mann on Friday approved the New industrial and Business Development Policy, 2022 (IBDP-2022) which shall be effective from October 17, 2022.
A decision to this effect was taken in a meeting of the Cabinet held under the chairmanship of the Chief Minister here at his office in Punjab Civil Secretariat.
Disclosing this here today a spokesperson of the Chief Minister’s Office said that the new policy will be applicable for 5 years from October 17, 2022 and will spur the Industrial Development in the State leading to more employment opportunities to the youth of the State. The new policy is structured ground key strategic focus areas namely infrastructure, Power, MSMEs, large enterprises, Innovation, Startup and Entrepreneurship, Skill Development, Ease of Doing Business, Fiscal and Non Fiscal Incentive, export promotion logistic, stakeholder engagement and grievance redressal. As per the policy, the state will develop 15 Industrial Parks covering general and sector specific requirements of various Industrial Sector and 20 rural clusters across the state.
As per the policy, the state will also allow setting up of dedicated country specific integrated Industrial Township to attract investment by allowing the infrastructure and other norms of the country. The policy also envisages that Punjab Small Industries and Export Corporation (PSIEC) will be strengthened and an online system for all the Estate Management services in a time bound manner shall be developed. The issuance of notification by the Department of Power for the incentive of electricity duty exemption shall be made online and time bound through Invest Punjab Business First Portal (IPBFP).
In order to give a boost to the MSME sector, the state under the new policy will set up a MSME Punjab, as a dedicated wing of the Department of Industries & Commerce with a focus on setting up a common facility and technology centre. For MSMEs, the state will also implement the World Bank assisted GoI scheme namely Raising and Accelerating MSME Performance (RAMP). Likewise, the state will also strengthen start-up Punjab to promote innovation and startups in the state through Punjab Innovation Mission with a special focus on Women/SC/Other Entrepreneurship.
Under the policy, gender/differently abled entrepreneurship/Rural Impact Startup/Women led startup and startups shall be given relaxation in public procurement with respect to experience and turn over. Punjab Skill Development Mission will work out specific skill development centres for various activities and will work with large employers in various industry sectors to create skill training facilities in partnership with such employers. As per the new policy, the Invest Punjab Business First Portal shall be integrated with National Single Window Portal and services of NHAI, PWD, RDA, Irrigation Department and Forest will also be included in it.
The policy also stipulates fiscal incentives for new units and also to existing units for expansion with or without modernization/diversification. Policy envisages that variable power tariff shall be freezed for five years @ Rs.5.50 Per KVAH and shall be applicable for manufacturing units/IT/ITeS Unit in the approved Industrial Park/Amusement park/ Adventure Parks developed on minimum area of 50 acres. The policy also provides attractive fiscal incentives for ultra-mega/mega projects, anchor unit, large units, MSMEs and incentives for rehabilitation of Sick Large units /MSMEs, Special Incentives for Units in border zone, Startup/incubators and first two units in border zone in each sector of manufacturing and service.
As per the policy, the manufacturing of Auto/Auto components including Electric Vehicle, Sports Goods including fitness equipment, Hand tools including Power Tools and Machine Tools, Agricultural Machinery and Equipment, Paper Based Packaging Units, circular Economy activity including shredding units, based management units and one district one product have been included in the category of thrust sector for the purpose of higher fiscal incentives. The fiscal incentives include 100% exemption from stamp duty, 100% exemption from CLU/EDC to the units in thrust sector and anchor units and 100% exemption from electricity duty from 7 years to 15 years.
Policy also envisages Investment subsidy by way of reimbursement of net SGST upto 200% of FCI over a period of 7 to 15 years. MSMEs are also being provided fiscal incentive in the area of technology, finance, marketing, environmental compliance, e-commerce and freight subsidy for exporting units and exemption from ground water charges. The new Micro and Small enterprises, exporting units and service enterprises engaged in providing research and development activities will also be provided 50% Capital Subsidy on the fixed capital investment up to Rs 50 lakh.  As per the policy, the Anchor Unit have been provided incentive of employment generation subsidy upto Rs.36000/- per employees per year for a period of 5 years and @ of Rs.48000/- for woman SC/BC/OBC employees.
The policy provides sector specific special incentives like 100% exemption of market fees/RDF upto 100% of FCI over a period of 10 years to the food processing industry, Capital Subsidy to IT/ITeS @, 50% of the FCI upto Rs.2.5 Crore per unit, 5% interest subsidy @ 10 lacs per years for five years to the apparels and made up and technical textile as a additional support to such units covered under A-TUB Scheme of GOI. Similarly, 50% top up subsidy to the first 10 ESDM units supported under SPECS Scheme of MEITY limited to Rs. 10 crore per unit. The replacement of existing boilers with paddy straw based boilers have been provided incentive of SGST upto 75% cost of boiler and exemption of stamp duty for purchase of storage of paddy adding that this incentive shall be available to the first 50 units.
Under the Policy, Development of private industrial parks shall be encouraged and 100% exemption of CLU/EDC shall be provided on the Industrial and EWS residential component to an Industrial Park set up within a minimum area of 25 acres (10 acre for IT). The private industrial park set up by SPV shall be provided additional incentive of Capital Subsidy @ 25% maximum 25 Crore. The building bye-laws shall be relaxed by the Department of Housing and Urban Development (HUD), logistic park shall be developed in sector 102. Mohali and 50% of the external development charges shall be spent on the improvement of Industrial infrastructure in the Industrial Zone.
The fiscal incentive shall be processed through invest Punjab Business First Portal and the cases involving fixed capital investment upto Rs 25 crore shall be sanctioned at the district level and cases above Rs 25 Crore shall be processed at state Level and the incentive shall be disbursed by maintaining an online State Level Seniority. There will be representation of industry in the District Level and State Level Committee constituted for approval of fiscal incentive cases.
As per the policy, the units which have been filed Common Application Form (CAF) under IBDP-2017 upto 10.9.2022 may avail the incentive under GDP-2017 provided they attain commercial production within five years from filing of CAF. The units who have filed CAF between 10.9.2022 to 16.10.2022 may opt IBDP-2017 provided they fulfill certain conditions. The others who have filed CAF under IBDP-2017 and are not in production till 16.10.2022 may opt (BDP-2022 by submitting an online option within 90 days from the notification

Under the leadership of Punjab Chief Minister Bhagwant Mann, the Cabinet on Friday accorded approval to Electric Vehicle Policy (PEVP)- 2022 with a move to check the environmental pollution in the state due to omission from vehicles.

A decision to this effect was taken by the Council of Ministers in a meeting chaired by the Chief Minister here at his office in the Punjab Civil Secretariat- I.

Disclosing this here today a spokesperson of the Chief Minister’s Office said that to create public awareness about environment protection, the Punjab Cabinet also gave nod to Electric Vehicle Policy (PEVP)-2022. The policy desires to reduce vehicular emission, create infrastructure, Manufacturing, Research and Development, Job creation, ensuring sustainability besides to establish Punjab as a favored destination for manufacturing of electric vehicles, components and batteries.

APPROVAL TO SEND 66 PRINCIPALS TO SINGAPORE FOR TRAINING

The Cabinet also gave consent for implementation of the State scheme for teachers’ foreign training. The Department of School Education will send a batch of 36 Principals to Principals Academy, Singapore and 30 Principals to National Institute of Education (NIE) which is an autonomous institute of the Nanyang Technological University, Singapore in FY 2022-23. These trainings will expose them to state-of-the-art teaching practices, leadership skills, creation of teaching-learning materials and audio-visual technology adding that it will be helpful to obtain objectives of: Education in the post-Pandemic world, Essentials of Strategic Management, Shaping School Culture, Building Teachers’ Professional Capital, Curriculum Leadership, Mentoring, and Lesson Observation Skills, Innovation in Teaching and Learning and Effective Communication.

GREEN SIGNAL TO UPGRADE 117 GOVERNMENT SCHOOLS AS SCHOOLS OF EMINENCE

The Cabinet also gave its green signal for the implementation of a State scheme for upgrading Government schools into Schools of Eminence (SoE). These Schools of Eminence will serve as centers of excellence, equipped with state-of-the-art facilities. SoEs will enable peer learning across institutions, and enhance learning experiences of children through contemporary schooling practices in the world of school education and in the initial phase 117 Schools will be upgraded into Schools of Eminence.

ENDORSES PROPOSAL TO PAY RS. 74.75 CR. CRORE FOR EARLY COMPLETION OF SHAHPUR KANDI DAM PROJECT

To expedite the remaining construction work of Shahpur Kandi Dam Project, the Punjab Cabinet has endorsed the proposal to pay a total Rs. 74.75 Crore to the concerned executing agency. As per this decision a payment of Rs. 74.75 Cr. will be paid to the agency and the agency will withdraw all three cases filed in Hon’ble Punjab and Haryana High Court. By implementing the above decision, the work of Shahpur Kandi Dam will be expedited and direct financial benefits of Rs. 58 Crore per annum shall be accrued and the water going waste to Pakistan shall be utilized within India especially in Punjab State. Once the Shahpur Kandi Dam Project is completed, an irrigation potential of 5000 hectare in Punjab and 32173 hectare shall be created and 1042 MU of hydro power shall be generated per annum with two power houses of 206 MW installed capacity.

NOD TO APPOINT PUNJAB STATE ELECTION COMMISSIONER

To ensure the conduction of Urban Local Bodies and Panchayati Raj Elections/By-Elections in fair, clean and peaceful manner in the state, the Cabinet also gave the nod to appoint an eligible officer as Punjab State Election Commissioner.

APPROVES ‘THE FORENSIC SCIENCE LABORATORY, PUNJAB GROUP-C RULES’

To improve the quality of investigations as well as evidence by strengthening the Forensic Science Laboratories in the State, the Cabinet also approved ‘The Forensic Science Laboratory, Punjab Group-C Rules-2023’ to govern the recruitment/appointment and the conditions of service of the staff of Forensic Science Laboratory, Punjab. At present, one Forensic Science Laboratories is functioning at SAS Nagar (Mohali) and three Regional Forensic Laboratories at Bathinda, Amritsar and Ludhiana.

APPROVES SPECIAL REMISSION FOR LIFE CONVICTS TO COMMEMORATE AZADI KA MAHOTSAV

The Cabinet also gave approval for sending the case of special remission to convicts confined in Jails of Punjab, in the second phase to commemorate the 75th Independence Day of India being celebrated as ‘Azadi ka Amrit Mahotsav’. Similarly, green signal was also given for sending the cases for seeking Premature Release of life convicts confined in the jails of state. After the nod of Cabinet under Article 163 of the Constitution of India, these special remission/premature release cases will be submitted to the Punjab Governor under Article 161 of the Indian constitution.

POST FACTO APPROVAL TO AMENDMENT IN PPSC REGULATION

To speed up the recruitment process, the Punjab Cabinet gave its post facto approval to amendment in Part-2-B of Punjab Public Service Commission (Limitation of Functions) Regulations, 1955.

APPROVES ADMINISTRATIVE REPORT OF CIVIL AVIATION

The Cabinet also cleared Annual Administrative Reports for works executed by the Civil Aviation Department for the year 2021-22.

NOD TO MARGINAL INCREASE IN VAT RATES ON PETROL AND DIESEL

The Cabinet gave its approval for a marginal increase in the VAT rates levied on the sale of petrol and diesel in the state. The increase in the VAT rate will lead to a marginal increase in the price of petrol and diesel by approximately 90 paisa per litre. This will bring more parity in prices of Petrol and Diesel in comparison with neighboring states.

GREEN SIGNAL TO INITIATE CM YOGSHALA PROGRAM

To create a mass movement for yoga in Punjab and scale up the existing yoga ecosystem of the state, the Punjab Cabinet has accorded the approval to initiate ‘CM Di Yogshala’ program under the aegis of Guru Ravidas Ayurveda University Punjab, Hoshiarpur. This program will be implemented in Amritsar, Ludhiana, Phagwara, Patiala and Ludhiana in the initial phase. A total 400 classes will be conducted in these cities everyday which may be further increased based on demand. The project will have two Consultants and 10 Supervisors to support the project besides 80 Trainers will also be hired in each of these five cities.