Investment Climate in Punjab

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1 Investment Climate in Punjab

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3 Investment Climate in Punjab

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5 Contents Economic and Demographic Profile 1 Economic Profile 1 Demographic Profile 2 Physical Infrastructure 3 Power 3 Roads 4 Railways 4 Dedicated Freight Corridor 4 Airports 4 Telecom 4 Social Infrastructure 5 Health 5 Education 5 Industrial Profile 5 Land Availability 6 Industrial Land 6 Agricultural Land 7 Manpower Availability 7 State Policies and Incentives 7 Investments in the State 8 Looking Ahead 9 Annexure : Policies 10 All data is at constant ( ) prices unless explicitly stated otherwise GSDP stands for Gross State Domestic Product CSO data accessed on 18 October, 2012

6 EXECUTIVE SUMMARY Known as the land of five rivers, Punjab is endowed with rich, fertile and productive agricultural land. This has been the bulwark of agricultural growth, making the state a leading food producer in the country as well as an attractive hub for the agro based industry. Historically, an agrarian economy, it is the entrepreneurial spirit of its people that transformed Punjab into a state with a strong industry base, especially MSMEs. Today, Punjab is one of the most progressive states in the country, with a strong tradition of entrepreneurship and business acumen. Advantage Punjab: Leading producer of foodgrains in the country, second largest contributor of wheat to the Central Pool One of the country s largest producers of cotton, blended yarn and mill-made fabrics High propensity to consume, giving impetus to the retail sector. Cities of Ludhiana, Jalandhar, and Amritsar emerging as key retail markets of north India Well established export-base Well-developed infrastructure, including a well-connected intra-transport system, and excellent telecommunication set-up Availability of a large talent pool Enabling policy framework and facilitation mechanisms creating a favourable investment climate Strong tradition of entrepreneurship Thrust on knowledge-based industries such as IT/ITeS, biotechnology and traditionally strong manufacturing industries such as textiles, agro-based and light engineering industries.

7 1 Economic & Demographic Profile Economic profile The GSDP of Punjab was Rs 1,565 billion in against Rs 968 billion in , registering a CAGR of 7.1 percent. The GSDP contribution of the state in the national GDP was 3 percent in Figure 1: GSDP of Punjab ,500 in billion 1, Figure 2: Key Economic Indicators 1,026 1,130 1,232 1,386 1,481 1,565 Key Component ( ) Value GSDP Rs 1,565 billion Growth in GSDP 5.7 percent Per Capita Income Rs 46,788 National Per Capita Income Rs 37, , in percent 1,800 The state achieved the average growth rate of 6.9 percent during the 11th plan as against the target of 5.9 percent2. Source: CSO 1 2 CSO Economic Survey, Punjab, Source: CSO

8 2 Punjab, primarily an agrarian economy, is diversifying into industrial and services sectors. This has resulted in an increase in the shares of the secondary and tertiary sectors. Figure 3 : Contribution of different sectors towards the economy of Punjab Demographic profile Punjab, with a population of 27.7 million, constitutes 2.3 percent of the national population and ranks 15th in terms of size of the population. The population density of Punjab is 550 persons per sq km. The decadal population growth stood at 13.7 percent. 3 Figure 4: Key Demographic Indicators Key Indicators Value Population Population Size (Male) 27.7 million 14.6 million Population Size ( Female) 13.1 million Rural Population 17.3 million Primary Secondary Tertiary Urban Population Literacy Rate 10.4 million 76.7 percent Source: CSO Male Literacy Female Literacy 81.5 percent 71.3 percent Density of Population (persons per sq km) 550 Sex Ratio (females per 1000 males) 893 Source: Census (Provisional) Census 2011 (Provisional);

9 3 Figure 5 : Urbanisation trends in Punjab Figure 6 : Peak demand supply position in the State Source : Source: CEA Physical Infrastructure Power Punjab has a total installed power generation capacity of 7,143 MW, which includes 5,130 MW under the state utilities, 1,876 MW under central utilities and 137 MW under the private sector. Of the total installed capacity in the state, the contributions from the various sources are as follows 4 : Thermal power 49.5 percent Hydro power percent Renewable energy sources- 5.3 percent Nuclear power- 2.9 percent To address the growing demand for power, Punjab has undertaken various power projects to augment the overall capacity of the state. Steps have been taken to make Punjab self sufficient by March, Figure 7 : Upcoming Power Projects Ongoing Power Projects Projects Goindwal Sahib Thermal Power Project Talwandi Sabo Thermal Power Project MW Expected Completion Date 540 May, Nov, ,980 Aug, Nov, 2013, Mar,2014 Rajpura Thermal Power Project 1,400 Jan, May, 2014 Proposed Power Projects in 12th Plan Giddherbaha Thermal Power Plant 2,640 Allotted to NTPC Mukerian Thermal Power Plant 1,320 In state sector Shahpur Kandi Hydel Project 206 Not available 4 Central Electricity Authority, August 2012, including allocated shares in Source: Annual Plan , Government of Punjab, Planning Commission joint and central sector utilities

10 4 Roads The state has an excellent network of 64,037 km of roads. 12 national highways pass through Punjab accounting for 2.1 percent of the total national highways in India 5. Punjab is the first Indian state with 100 percent connectivity to the rural areas. Figure 8: Key Road Network Road Type Road Length (in km) National Highways 1,739 State Highways 1,503 Major District roads 2,107 Rural Roads (including Village link roads) 58,688 Source: Economic Survey , Government of Punjab Projects completed during 11th Five Year Plan: 405 km road length of key national highways upgraded to four lanes 520 km on nine roads upgraded on Build Operate Transfer (BOT) basis at a cost of Rs 6.2 billion. 705 km of state roads were upgraded under the World Bank Funded Road Sector Project at the outlay of Rs 15 billion Under Pradhan Mantri Gram Sadak Yojana, 3,193 km of rural roads were upgraded at a cost of Rs 11.8 billion. Proposed projects during the 12th Five Year Plan: The work of four laning 400 km of four national highways - Shambhu-Jalandhar highway, Pathankot-Amritsar, Ludhiana- Talwandi Bhai and Bhogpur-Mukerian is under progress and is likely to be completed by July km road length on 5 national highways of Zirakpur- Bathinda, Jalandhar-Dhilwan, Amritsar-Shri Ganga Nagar, Jalandhar-Jind road and Kharar-Ludhiana road shall be upgraded to 4/6 laning under Public Private Partnership Proposal to construct and upgrade 575 km of road length under Build Operate Transfer (BOT) basis at an estimated cost of Rs 24 billion 3,200 km of rural road length at a cost of Rs 16 billion to be taken up, in addition to the upgradation of 2,000 km of rural roads in border belt 27 Road Over Bridges (ROBs)/ Road Under Bridges (RUBs) and 10 High Level Bridges and construction of bye-passes in major towns will also be taken up over the next few years 204 km of state roads will be upgraded through long term 10 year tenure under Output and Performance Based Road Contracts. Railways Punjab has a total rail length of 2,134 km and has the fourth highest rail density amongst all states and Union Territories in India. A Metro Rail project has been proposed at Ludhiana at an investment of Rs 103 billion. The project is to be completed over the next five years. It will have 2 corridors kms long Corridor-I and 13 km long Corridor-II. Altogether, there will be 27 stations. Dedicated Freight Corridor About 88 kms of the total 1,839 kms of the Dedicated Eastern Freight Corridor will transverse through Punjab. The corridor, starting from Ludhiana, will connect the state to the eastern port at Dankuni providing connectivity to the eastern coalfields of India which is very important for thermal power projects in the state. Airports The major airports in Punjab are located at Amritsar (International aiport), Chandigarh, Ludhiana and Pathankot (operational civil enclave). New airports have been proposed at Mohali, Bathinda and Ludhiana. The proposed Greenfield airport at Ludhiana to be developed as an aerotropolis, with an investment of Rs 180 billion. For upgradation and extension of air terminals and aerodromes, a sum of Rs 240 million was earmarked in the annual budget of Financial Year Telecom Punjab has 33.3 million subscribers and an overall teledensity of Figure 9: Key Telecom Indicators Key Indicators Subscribers Value 33.3 million Wireless subscribers 31.9 million Wireline subscribers 1.4 million Teledensity Urban Teledensity Rural Teledensity 64.6 Source: The Indian Telecom Services Performance Indicators (January - March 2012) Telecom Regulatory Authority of India Annual Plan , Department of Planning, Government of Punjab 7 The Indian Telecom Service Performance Indicator (January-March 2012), Telecom Regulatory Authority of India

11 5 Social Infrastructure Health The healthcare infrastructure in the state is quite robust. Figure 10 : Key healthcare infrastructure in the State ( ): Industrial profile Punjab State Industrial Development Corporation and Punjab Small Industry and Export Corporation are the state nodal agencies for the promotion of industries and development of industrial infrastructure. Key Infrastructure Indicator Numbers Figure 12 : Number of large and medium scale industrial units and growth in production Hospitals 91 Primary Health Centres 444 Community Health Centres 130 Dispensaries 1,412 Ayurvedic and Unani Institutions 529 Homeopathic Institutions 111 Source: Economic Survey, Punjab, A sum of Rs 7.2 billion was allocated for the development of health infrastructure in the annual budget for the Financial Year Figure 11 : Key Health Indicators in the State Number of Industrial Units Number of working large and medium scale industrial units Growth in production (in percent) (P) Source: Economic Survey of Punjab Growth in percent Key Heath Indicator Numbers Figure 13 : Number of small scale industrial units and growth in production Population served per bed (2010) 1,281 Birth Rate* 16.6 Death Rate* 7 Infant Mortality Rate** 34 Source: Punjab Planning Board; Sample Registration System, December 2011 Note: * per 1000 population ** per 1000 live births Education Punjab has a well-developed school education network consisting of 13,950 primary, 3,792 middle and 5,657 high/ senior secondary schools. It has 6 Universities and 234 colleges. Some of the premier higher education institutions in the state are: Panjab University, Chandigarh National Institute of Technology, Jalandhar, Thapar University, Patiala Indian School of Business, Mohali Rajiv Gandhi University of Law, Patiala Punjab Agricultural University, Ludhiana Guru Angad Dev Veterinary and Animal Sciences University, Ludhiana Number of Industrial Units 172, , , , , , , , , ,559 Source: Economic Survey of Punjab Number of working small scale industrial units Growth in production (in percent) 164, , ,500 Punjab has a strong industrial base. The state has 425 large and medium scale industrial units with a fixed investment of Rs 400 billion and turnover of Rs 820 billion providing employment opportunities to 2,35,000 people as on (Provisional) 8. small scale industries constitute around 40 percent of the production, 60 percent of the exports and 15 percent of the investment made in Punjab. These industries generate 4.3 times the employment generated by the medium and large scale industries. The Government of Punjab has given top priority to industrial development in the state. The Industrial Policy, 2009 focuses on development of industrial clusters to provide a competitive advantage to the industries (P) Growth in percent 8 Economic Survey of Punjab

12 6 Ludhiana, Jalandhar, Amritsar, Mandi Gobindgarh and Mohali constitute the main industrial centres in Punjab. Ludhiana has the largest number of large and medium units and is a major exporter of textiles, light engineering products including machines tools, hand tools and sewing machines, bicycles and bicycle parts and auto components. Jalandhar is known for leather goods, sports goods and sewing machines and Amritsar for food processing and textiles industries. Mandi Gobindgarh, is the Steel Town of Punjab, a cluster of 275 operational rolling and re-rolling mills related to the iron and steel industry. Mohali is host to IT/ITeS sector and electronics manufacturing. With the abundant resource endowments in the state, the potential industries include tractors and auto components, agrobased industries, bicycle manufacturing, chemical products, food products, pharmaceuticals, textiles, paper products and light engineering goods. Punjab has a rich and productive agricultural base combined with a conducive Agro Industrial Policy, 2009 making it an ideal destination for setting up agro & food processing industries. The state has the highest cropping intensity in the country 9 and contributes 45.4 percent of wheat and 25.3 percent of rice to Central Pool 10. Punjab is a leading producer of milk with diary production of 25,600 tonnes. The state accounts for 10 percent of fertiliser consumption and one third of all the tractors operational in the country. The Punjab Agro Industries Corporation has been encouraging private sector investments in agro processing units. The Agro Industrial Policy, 2009, provides special incentives to the agro industry investors based on the size and projects with minimum fixed capital investment of Rs 250 million under mega project scheme. In addition, Punjab Agri Export Corporation provides a subsidy of percent on waxing/grading, packing and freight for distant marketing and export of fresh and processed vegetables. The total storage facility of foodgrains in the state is 22.6 million tonnes in The state has set up a Permanent Perishable Cargo Centre at Amritsar international airport to boost farm exports and agricultural machinery service centres to provide agricultural tools on custom hiring bases. The total budget outlay by Punjab government for the year for agriculture and allied sectors was Rs 4.53 billion, out of which Rs 3 billion was for crop husbandry and Rs. 450 million for animal husbandry 11. IT/ITeS sector is another key potential sector in the state with Mohali as the hub of electronics and IT industry. The state government has also identified suitable land parcels at Railmajra and Kapurthala for the development of world class IT/ITES infrastructure. The software exports doubled to Rs 14 billion in from Rs 7 billion in Punjab is one of the leading producers of cotton, blended yarn and mill-made fabrics in the country. Light engineering goods industry, consisting of bicycle and bicycle parts, hand tools, sewing machines and machine tools is an important sector of the state. A significant share of bicycles and bicycle parts produced in the country come from Punjab. Total exports from Punjab during the year were valued at approximately Rs billion displaying a 9.1 percent increase over exports in the year Figure 14 : Export trends Source: Statistical Abstract Punjab 2010; Government of Punjab Hosiery and readymade garments constitute about 31 percent of the total exports from Punjab followed by yarn and textile contributing 23 percent. The districts of Ludhiana, Gurdaspur and Jalandhar accounts for around 95 percent of the total exports from Punjab. Figure 15 : Sector wise distribution of goods exported from Punjab ( ) Source: Government of Punjab The key sectors in the state include textiles, light engineering goods, automotive, IT and electronics and agro-based industries. Land Availability Industrial Land The state government proposes a cluster approach to boost industrialisation. Some of the proposed industrial areas/theme parks include 14 : 1. Mohali-Chandigarh is a hub for IT/ITeS, electronics and pharmaceuticals industry. The proposed plans include: Information and Knowledge City at Mohali over an area of 1,500 acres Economic Survey of Punjab Economic Survey of Punjab Economic Survey , Government of Punjab 13 Government of Punjab 14 Economic Survey of Punjab ; KPMG Research

13 7 2. Investment Corridor Ludhiana-Jalandhar-Amritsar is a hub for Textile and Light Engineering goods. The proposed plans include : World class IT/ITeS infrastructure at Railmajra/Kapurthala Industrial clusters to promote cotton and woollen textiles Mega Tourism Project for integrated development of Amritsar city 3. Growth Centres of Bathinda-Sangrur-Patiala-Rajpura are hubs for light engineering goods, petrochemicals, and food processing. The proposed plans include: Global Industrial Knowledge City at Rajpura spread over an area of 1,359 acres Agricultural Land Around 83 percent of the available geographical area is used for agricultural purposes (i.e. the net sown area) and approximately 6 percent of the total geographical land is under forests. Figure 16 : Land Utilisation pattern in Punjab Land Type Geographical area 5,036 Area for land utilisation 5,033 Forest area 294 Net sown area 4,158 Net irrigated area 4,070 Gross irrigated area 7,724 Not available for cultivation Area put to non agricultural use Source: Statistical Abstract of Punjab, 2011 Area ( 000 hectares) 508 Barren and uncultivable land 24 Other uncultivated land excluding fallow land Permanent pastures and other grazing lands Cultivable waste land 4 Manpower Availability 4 Punjab s growth is fuelled by the availability of a large talent pool. The state government has taken a number of steps to improve the quality of education, including encouraging private participation in technical and vocational education. The state is currently upgrading 35 Industrial Training Institutes (ITIs) into Centres of Excellence at a cost of Rs 1.28 billion and 76 ITIs at Rs 25 million per ITI under PPP scheme. In addition, 11 technical institutions have been upgraded into multipurpose academies under National Bank for Agriculture and Rural Development (NABARD) project. Some of the key skill development initiatives taken by the state are: Draft Technical Education Policy a pioneering initiative to encourage skill training in the state Under the National Skill Development Mission, 73 new ITIs and 2,500 Skill Development Centres will be opened by ,000 candidates to be provided skill development training in one of the 1,400 courses by Vocational Training Providers (VTP), every year A Construction Skill Development Centre has been setup in village Abul Khurana of Lambi Block in Sri Muktsar Sahib district, in collaboration with L&T A centre for providing training in the trades of driving and automotive skills setup in collaboration with Tata Motors in village Mahuaana of Lambi block in Sri Muktsar Sahib district Establishment of Entrepreneurship Development Centres at PTU Colleges Establishment of Incubation Centre at LPU campus, Jalandhar and Mohali Skill Gap Study by CII Skill Centre in the retail sector set up at Amritsar, in collaboration with Bharti Walmart. State Policies and Incentives In order to position itself as the destination of choice in many diverse sectors and to encourage the overall growth of its economy, the Government of Punjab has implemented several policies. These policies provide a roadmap to boost the industrial climate and remove various road blocks which hampered the industrial expansion of the state. These policy documents also encompass investment incentives and schemes for investors. Please refer to Annexure for various policies and tax structure in place in Punjab. Figure 17 : ITIs/ITCs Institutes Numbers Number of Government 97 ITIs Seating Capacity 20,260 Number of Private ITCs 243 Seating Capacity 28,784 Total ITIs/ITCs 340 Total Seating Capacity 49,044 Source: Directorate General of Employment & Training (DGET), Ministry of Labour & Commerce

14 8 Single Window Clearance Mechanism - Udyog Sahayak The state government has implemented the Punjab Industrial Facilitation Act, which aims at expediting industrial approvals in a time bound manner. Udyog Sahayak in the Directorate of Industries & Commerce and District Industries Centres in the state have been designated as State Nodal Agency and District Nodal Agencies respectively under this Act. The following committees have been constituted under the Act: State Board under the Chairmanship of the Chief Minister to review and monitor industrial approvals and grant exemption or relaxation from the provision of any law made by the Punjab State Legislature relating to industrial development. Empowered Committee on Industrial Facilitation under the Chairmanship of Industries & Commerce Minister to review and monitor the status of applications for clearances and resolve inter-departmental matters District Level Single Window Clearance Committee under the Chairmanship of Deputy Commissioner to review and monitor the status of applications received at the district level. Time schedules for various approvals required by an entrepreneur have been notified under the Industrial Facilitation Act. Notification has also been issued to the effect that in case the application for approvals is kept pending by the department concerned without assigning any reason, and approval is not granted within the notified time schedule; deemed approval shall be granted to the applicant by the Nodal Agency. Investments in the State The state received industrial investment proposals amounting to Rs 1,232.8 billion during the period August 1991 to May During the year 2011 the state has attracted investment intentions of Rs billion. Figure 18 : Investment Intentions in the state Year Numbers Filed Proposed Investment (Rs billion) Share of state in Northern Region proposed investments (percent) ,449 Proposed Employment (Numbers) , , (May) ,539 Source: SIA Statistics, Department of Industrial Policy and Promotion, Ministry of Commerce & Industry Note: Investment in terms of Industrial Entrepreneur Memoranda (IEMs) filed, Letters of Intent (LOIs) issued and Direct Industrial Licenses (DILs) issued Northern Region includes the states of Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and UT Chandigarh Foreign Direct Investment According to the Department of Industrial Policy and Promotion, FDI inflows from April 2000 to July 2012 amounted to US$ 1.2 billion in the state (including Chandigarh, Haryana and Himachal Pradesh). For the period April 2012 to July 2012, FDI inflows amounted to US$ 7 million Department of Industrial Policy and Promotion, Ministry of Commerce & Industry

15 9 LOOKING AHEAD Punjab, a progressive state with enterprising people, has a strong industrial base. The traditional industries in the state include agro-based & food processing, textiles, light engineering, auto parts, sports goods, tractor and bicycle & bicycle parts. The Industrial Policy of the state aims to broaden the industrial base. It envisages greater role for the industry and services sectors in the economic development of Punjab. Some of the focus areas identified by the policy include IT & ITeS, valueadded agro-based & food processing, entertainment, hospitality, healthcare, biotechnology, telecommunication and research and development services. The policy also lays emphasis on promoting PPPs. The policy addresses land-related issues by specifying measures to facilitate land use conversion. It provides fiscal incentives for mega projects (projects with fixed capital investment of Rs 1,000 million and above, and Rs 250 million for border districts). In order to create an enabling environment for the industry, Punjab aims to become a power surplus state by March 2014 and is making substantial investment in the power sector. Skill development is another key focus area, with the state planning to implement the Technical Education Policy. The focus is to improve the quality of education. Many specialised skill development institutions are being set up in the State and the existing ones are being upgraded in Public Private Partnerships. To improve connectivity, the state is focusing on improving road infrastructure by 4 and 6 laning of existing national and state highways seeking greater participation of private players through Public Private Partnership mode. With a favourable policy environment, an enabling infrastructure and the enterprise of its people, Punjab is an attractive investment destination.

16 10 Annexure : Policies Industrial Policy The New Industrial Policy 2009 aims at infrastructure development, lesser number of regulations and speedy clearance of new projects. The key initiatives under this policy include: State-level monitoring committees set up to oversee the implementation of the industrial policy in a time-bound manner Easy and quick clearance for projects through one-time settlement schemes and Udyog Sahayak Constitution of the empowered committee to grant special privileges for projects of significance Special incentives for industries proposed to be set up in border areas Infrastructure development through private sector participation by setting up Special Purpose Vehicles (SPVs), exemption to private investors from the Punjab Apartment and Property Regulation Act 1995, and exemption from payment of stamp duty on the first sale/ transfer of developed infrastructure by the developer Power sector reforms, including permission for power generation for captive use, use of non-conventional sources of energy, electricity duty exemption for captive power generated for self-use Implementation of VAT and replacement of octroi and entry tax with a single point local area development tax Enhancement of competitiveness of existing industrial units through capital subsidy and freight subsidy Automatic clearance for sugar industry units for co-power generation, setting up of distilleries and sale of power to other industries Revival of sick industrial units through various subsidies Incentives to agro-based industries like permission for direct purchase of agricultural products from farmers, minimal sales tax on packaging materials, no market fee and rural tax on commodities other than wheat and paddy. Agro Industrial Policy Agro Industrial Policy 2009 aims to explore the vast untapped potential in agro industrial sector and make Punjab, the destination of choice for investors and processors, both global and domestic. Key features of the policy include: To increase the flow of investments in agriculture and agro industries so as to establish backward and forward linkages To accelerate a close interface between research, extension mechanisms, industry, farmers, markets and consumers To increase value addition thereby increasing income of farmers, traders and delivering better quality products to consumers To create modern supply-chain infrastructure needed for agro industrial development and marketing of agri produce To create employment opportunities, thus, improving the quality of life To assist small-scale agro based units to remain competitive in a globalized market To increase export of fruit and vegetables and value added agri products 5 percent back ended subsidy for 5 years on the interest on term loan subject to a ceiling of Rs 2 million per year per unit i.e. maximum of Rs 10 million in five years, will be provided subject to the conditions specified Interest subsidy will be available to agro industrial units making fixed capital investment ranging from Rs 100 million to less than Rs 250 million and availing term loan upto Rs 150 million. The cost of land for the computation of fixed capital investment will not be more than 20 percent of fixed capita %20-%2006%20Oct2009.pdf %20-%2006%20Oct2009.pdf ; The policy is a part of Industrial Policy 2009

17 11 IT/Knowledge Industry Policy The Information Technology & Knowledge Industry Policy 2009 endeavours to delineate a strategy for harnessing the opportunities and the resources offered by the Information Technology and Knowledge Industry for the comprehensive social and economic development of the state of the IT policy. Key features include: IT and other knowledge units notified by PICTCL will be exempt from the purview of the Punjab Pollution Control Board (PPCB) on compliance of basic minimum norms/standards defined by PPCB for green industries VAT on all IT products rationalized to be at par with minimum floor rate of 4 percent No stamp duty and registration fee will be levied in respect of land allotted by PICTCL to the IT Parks/units IT Units/Parks will have permissible FAR of 300 percent on gross area of the project Power would be available to IT units/knowledge industrial units at industrial tariff irrespective of their location/zoning IT/Knowledge Industry Parks shall be exempted from the Punjab Apartment and Property Regulation Act (PAPRA) 1995, in accordance with the power vested with the state government under Section 44 (2) of the Act Special Incentives for mega projects - government may consider special package of incentives for all mega projects on a case-tocase basis, based on the gestation period of projects, pioneering nature of projects, locational aspects, state-of-the-art technology, profitability, scope for further related investment etc. Empowered Committee, under the Chief Minister shall be competent to approve the special package of incentives and modalities for the same Special Incentives for Small and Medium Enterprise (SMEs) - Capital subsidy at 20 percent of fixed capital investment in a project, subject to ceiling of Rs 2 million, to be available to first 10 approved SME units in the IT Parks notified by PICTCL Punjab Venture Capital Fund has been created by Government of Punjab with a corpus of Rs 200 million contributed by SIDBI and various state corporations. The fund has already mobilized contributions to the tune of Rs 50 million and the management of the fund is going to be entrusted to a private partner. The state government will contribute an additional sum of Rs 5 million to the corpus. Eco Tourism Policy Punjab is endowed with a very rich spectrum of landscapes, forests, wildlife, wetlands, community reserves, conservation reserves and cultural diversity. It is also home to several endangered species including the Indus Dolphin. The Government of Punjab has implemented Eco Tourism Policy 2009 to promote ecotourism in the state. It has been developed in harmony with the broad framework outlined in the Tourism Master Plan for the state. The focus of the policy is on conservation of natural resources through awareness building, diversification of tourism activities and destinations, and local community participation and synergy with general development of the tourism sector. This policy is aimed at informing and sensitising the general public and related government departments towards ecotourism and laying down the framework for its growth in the state in an environmentally, socially and economically sustainable manner. Key features include: Building environmental and cultural awareness and respect and provide positive experience for both visitors and hosts Ecotourism would involve a selective approach, scientific planning, effective control and continuous monitoring It should be planned as part of the overall area development strategy guided by an integrated land-use plan and associated with commensurate expansion of public services Emphasis will be given to actively involve local communities and enhance their economic conditions The type and scale of tourism development should be compatible with the environment and socio-cultural characteristics of the local communities and would lead to sustainable development of the area Only activities and facilities having least impact on the natural resources and the local culture to be permitted. Preference should be given to use the already existing infrastructural facilities available in the area rather that creating a new one Adhering to the principles of carrying capacity to avoid overuse of natural resources 18 The policy is a part of Industrial Policy punjabtourism.gov.in/punjab%20eco-tourism%20policy% rtf

18 12 Capacity building of local communities and other stakeholders shall be ensured State shall ensure that certain part of project cost/economic returns of such activities are ploughed back in conservation and development of natural resources of that area. Textile Policy The government initiated Textile Policy (2006) to facilitate and promote the growth of the industry, achieve global standards in product quality, contribute to exports and to encourage textile clusters so as to improve business processes. Textile Policy key features include: Maximum investment to be attracted under the Technology Upgradation Fund Scheme (TUFS) of the central government Creation of sound infrastructure in the form of textile clusters, apparel parks and integrated textile parks, having all necessary facilities at one place, developed mainly through private sector participation Setting up of new educational and training institutes for making skilled technical workforce available to the industry, with assistance from the Government of India as well as private sector participation Reduction in electricity duty to half the existing rate for mega textile projects for a period of five years and full waiver of electricity duty for a period of seven years for mega textile projects in the districts of Patiala, Sangrur, Mansa, Bathinda, Faridkot, Moga, Muktsar and Ferozepur; Assistance in land acquisition by the state government for setting up of mega textile units, with provisions to offer flexible labour regime for these units. New & Renewable Source of Energy (NRSE) Policy Punjab formulated the NRSE Policy 2006 to develop and promote new technologies based on renewable sources of energy and focus on energy conservation measures. NRSE Policy key features include: Power generation though small/ micro hydro projects, co-generation of power in industries like sugar, paper, chemical and fertilisers and power generation from bio mass, agricultural waste and solar energy Clearances for all projects related to NRSE, in a time-bound manner through a single window mechanism within a period of 60 days Exemption of octroi on energy generation and NRSE devices/ equipment/ machinery for NRSE power projects Maintenance of a Renewable Energy Corpus Fund by the Punjab Energy Development Agency to assist and undertake activities towards commercialisation of NRSE projects and programmes Provision for purchase of electricity in whole or part (as required by the power producer) by Punjab State Electricity Board to ensure full utilisation of NRSE Provision of government land, if available, for setting up NRSE projects at a nominal lease rent of rupee one per sq m for a period of 33 years

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22 The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the growth of industry in India, partnering industry and government alike through advisory and consultative processes. CII is a non-government, not-for-profit, industry led and industry managed organisation, playing a proactive role in India s development process. Founded over 117 years ago, it is India s premier business association, with a direct membership of over 7100 organisations from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 90,000 companies from around 250 national and regional sectoral associations. CII catalyses change by working closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a range of specialised services and global linkages. It also provides a platform for sectoral consensus building and networking. Major emphasis is laid on projecting a positive image of business, assisting industry to identify and execute corporate citizenship programmes. Partnerships with over 120 NGOs across the country carry forward our initiatives in integrated and inclusive development, which include health, education, livelihood, diversity management, skill development and water, to name a few. The CII Theme for , Reviving Economic Growth: Reforms and Governance, accords top priority to restoring the growth trajectory of the nation, while building Global Competitiveness, Inclusivity and Sustainability. Towards this, CII advocacy will focus on structural reforms, both at the Centre and in the States, and effective governance, while taking efforts and initiatives in Affirmative Action, Skill Development, and International Engagement to the next level. With 63 offices including 10 Centres of Excellence in India, and 7 overseas offices in Australia, China, France, Singapore, South Africa, UK, and USA, as well as institutional partnerships with 223 counterpart organisations in 90 countries, CII serves as a reference point for Indian industry and the international business community. Confederation of Indian Industry The Mantosh Sondhi Centre 23, Institutional Area, Lodi Road, New Delhi (India) T: F: E: info@cii.in W: Block No. 3, Dakshin Marg, Sector 31-A Chandigarh Tel : / / Fax : sumanpreet.singh@cii.in