Punjab’s new industrial policy, framed by United Nations Industrial Development Organization (Unido), is likely to be finalised by next month, highly placed sources in the CMO said. The new industrial policy would be modelled more or less on the lines of the industrial policies of Maharashtra and Orissa, both of which have also been framed by Unido and have helped the states attract huge investment.
Industry minister Manoranjan Kalia confirmed to FE that new policy would be finalised very soon. He said the aim of the new policy would be to make Punjab investor-friendly and hassle-free.
It is learnt that the Unido has now submitted the draft policy to the state government. The draft is likely to be discussed with various chambers of small, medium and large industries before it is brought before the Cabinet for its concurrence. The draft submitted to the government proposes special concession in sales tax and excise, besides power concessions, to all new industrial projects coming in the state including small and medium enterprises. Sources said that as per the new industrial policy the state will also create a land bank to offer land to industries willing to invest. The draft also recommends to set up three special economic zones.
Not going into merits of the proposed policy, Jarnail Singh, secretary, PSIDC Union told FE the government had got new industrial policy framed by an international agency, only to appease international funding agencies that had moved away from Punjab, in view of its policies on subsidies, like free power to farmers. He said that ?outsourcing the industrial policy was unheard of in the state. It appears that Punjab is prepared to barter its interests to get easy funding?.
Industry department sources said that the government was open to new ideas as such it had assigned the task to an international expert body
The sources said that the new policy would focus on confidence building measures for the industries existing in the state. Focus will be on attracting investment in manufacturing and services sectors, rather than in real estate.
Being land-locked between Himachal Pradesh, Jammu and Kashmir and in proximity of Uttaranchal, Punjab does not have a level playing field to attract investments. Already a number of units from Punjab mainly in pharma sector have moved to Himachal Pradesh which offers special concessions. The new policy would also dwell on cluster approach. There is already a demand for a cluster in Mandi Gobindgarh (for steel) and in Ludhiana and Dera Bassi (for hosiery and textile). Border area development would also be a focus area. All industrial projects in the border areas with an investment of Rs 25 crore would be granted the status of mega projects. Presently, only projects with investment of over Rs 100 crore are granted concessions.