Industrial And Business Development Policy 2017

Industrial and Business Development Policy 2017 (Amended upto 23-08-2021) Department of Industries and Commerce Government of Punjab Industrial and Business Development Policy 2017 Page 1 of 121 GOVERNMENT OF PUNJAB DEPARTMENT OF INDUSTRIES & COMMERCE NOTIFICATION The 17 October 2017 No.CC/Addl Dir./Indl. & Business Development/2017/1369 ; In pursuance of the approval of the Council of Ministers, Government of Punjab conveyed vide no. 1/152/2017-1Cabinet/4639 dated 16.10.2017, the Governor of Punjab is pleased to notify ‘Industrial and Business Development Policy, 2017’, as per Annexure — A, (page numbers 1-106 ). Dated 17.10.2017 Secretary to Government of Punjab Plac andigarh Department of Industries & Commerce dst No CC/Addl Dir./Indl. & Business Development 2017/ \370 Dated |7-\0-29417 A copy with a spare copy is forwarded to the Controller, Printing & Stationary, Punjab, Chandigarh for publication of this notification in the Extra Ordinary Gazette of the State Government notification. After publishing the same 100 copies may please be sent to this department. Special Secretary to Government of Punjab Department of Indygtries & Commerce Endst No CC/Addl Dir./Indl. & Business Development 2017/ Dated A copy is forwarded to the following for information and necessary action :- 1. Additional Chief Secretary, Animal Husbandry, Fisheries and Dairy Development, Government of Punjab, Chandigarh. 2. Additional Chief Secretary, Excise & Taxation, Government of Punjab, Chandigarh. 3. Additional Chief Secretary, Local Government, Government of Punjab, Chandigarh. ' 4. Additional Chief Secretary, Technical Education and Industrial Training, Government of Punjab, Chandigarh. 5. Additional Chief Secretary, School Education, Government of Punjab, Chandigarh Additional Chief Secretary, Department of Housing & Urban Development, Government of Punjab, Chandigarh. Additional Chief Secretary, Revenue, Government of Punjab, Chandigarh. Additional Chief Secretary, Development, Government of Punjab, Chandigarh. Principal Secretary to Government of Punjab, Department of Labour, Chandigarh. 0. Principal Secretary to Government of Punjab, Department of Health & Family Welfare, Chandigarh TC. p e o S Director Si : Beit of industries & Commerr® Punjab, Crandigam Industrial and Business Development Polizy-7017 Page 2 of 121 Message Punjab stands at the cusp of major transformation with a slew of policies on the anvil to accelerate social and economic development of the State. The policies aim at overcoming the constraints and challenges being faced by the State in various sectors such as agriculture, infrastructure, real estate, education, industry and trade and building on the strengths of the State in these sectors. The Industrial and Business Development Policy 2017 is part of the vision to put the State back on high trajectory of growth and prosperity. The new Policy is a holistic framework for sustainable industrial growth of the State. The policy is architected around eight core strategic pillars of Infrastructure, Power, MSME, Ease of Doing Business, Startup & Entrepreneurship, Skills, Fiscal & Non-Fiscal Incentives and Stakeholder Engagement supported by Sector Specific Strategies for growth. The Policy marks a decisive shift from department centric approach to a business centric approach. The State will realign and restructure various Government institutions in line with the framework of the policy. Building on the success of Invest Punjab, a unified regulator providing services of 21 departments and agencies under one office, the policy envisages to cover all the services throughout the business lifecycle to the existing as well as new investors through one stop digital platform namely Invest Punjab - BusinessFirst. | am sure that the policy will boost industrial activities in the State in a big way and lay the foundation for long term sustainable growth of Punjab’s Industry and Businesses creating ample entrepreneurial opportunities and jobs for State’s youth. Captain Amarinder Singh, Chief Minister Punjab Industrial and Business Development Policy 2017 Page 3 of 121 Table of Contents Chapter 1: INtrOAUCTION. ............. cece cceccccceseeceeecsneceseseececeseaececaaeeeeeaaeececeueceeseuececeseeeeseeaeeeceeaeeeeees 13 1.1. Punjab —a Progressive State 200... ceccccceceseececeseeceeeeeceeseeaeeceeeaeeceeeuececeenececseeeeeeeeaeeeeees 13 1.3. Punjab’s Industrial landscape — MSMEs, the backbone of INGUStLY ..........cccsssceessseeeeeee 13 1.4. Industrial and Business Development Policy 2017 — A new paradigm ...........::cceesceeees 13 1.5. Applicability Of the Policy .........cccessccssccssscccsssecssececsececeseccaeeeceeeseneccesaeceseeecesaeceseeeseeeenes 14 Chapter 2: Vision, Mission and Goals ..................cccccesccecesseeceeseeceeceeneececeaeecesenaecesseeecesseeeeseneaeeeenes 15 2.1. VISION 0... eee ceeeeeneeceececesseeceeececeseaaaeeceeceesuaaeececeeseaaaeeceseecnaaaeececeeseaaaaaeceseeeaaeaeceeeneeeaeaees 15 2.2. MISSION... eee eeeesenncceeceeesneceeceeeeseeaceececeseaaaeeececeseauaaeeseceeseaaaeaecesecssaaaeaeceeceeeeaeaeeeeesnenaeees 15 Chapter 3: Key Strategic Pillars............. cc cccccessccccsssncecceseaecceseeceeceeneeecseaeecesenaeceseaaeceeseeeeseenaeesenes 18 3.1. Eight Core Strategic Pillars ..........ecccsccsssecessnsceeceeneeecsenececseneeecesnaecessneceecesaeecceeaeeeceeaeeees 18 3.3. POWED 2... eeeeceececceeseaccececeecnaaacececeeseaaaeaeceeeseaaaeececeecnsaaaececeecsesaaeeeeeescasaaaeceseeseeeaeaeceseneneanaees 18 3.4. Micro, Small and Medium Enterprises ............ceceescecessneecesenseceesnaeceeseeceecenaeescneeeceeenaeees 18 3.5. Startup and Entrepreneurship............cccssseccssssccessccceceseeeceesenececeseececseneceeeeaaeeceeeaeeceeeaeeees 18 3.6. Skill DeVeElOPMENt eee cceceseneceesseececeeeceeseneceeseeaeececeneecesenececeuceceeseeeeceeaaeeceeeeeceeeaeeees 19 3.7. Ease Of DOINg BUSINESS ...........cccesseceseecessecessececeeceusecsseceseececueccesececauceecsecesaeeeeaeesenaesesaees 19 3.8. Fiscal and Non-Fiscal INC@NtiVES ............cesseceesssceeceeceeecsenececeenececeenaeceeeaeceesenaeecceaeeeceeaeeees 19 3.9. Stakeholder EngageMentt.............cccecccecsssseceeseceeceeneeecsenececeeneeeceenaecessaeceesenaeesceeaeeeceeaeeees 19 Chapter 4: Infrastructure ............ccccccccssccccsccecsseceseecesesecesseceseecscescaaeecaeeecsueceseeesaeeseeueceeaeeesneesanes 21 4.1. Industrial Infrastructure — Key to the Growth of [email protected] 21 4.2. Setting up of Punjab Industrial and Business Development Authority ...........ccccceeeees 21 4.3. Development of New Industrial Parks and Industrial Land Banks ..............:scccsssseeeeeees 21 4.4. Development of Integrated Industrial TOWNSHIDS............c:ccessecesseceseeceseecsseecsecesseeeeesaees 22 4.5. Development along Industrial Urban Corridors ...........esscccesssecessnceeceeececssaececeeaeceeenaes 23 4.6. Core, Support and Social Infrastructure to be provided in Industrial Estates ............... 24 4.7. Common Environment Infrastructure .........ccccescessecececeecssecsseeceeeeceeeeceseecaeeecesesenaesesaees 25 Industrial and Business Development Policy 2017 Page 4 of 121 4.8. Maintenance of Industrial Parks... ceeceeeeeeceseeceeeceeceecesaeceeeeaeecaeeceeeeeeceseeesaeeaaeeneeeas 26 4.9. Estate Manageme nt .......... eee eeececceceeesseeceececesseeeaeeececeseaaaeeeceseseaeeceesesseaaaeeceseeenenaeeceeeeeees 27 Chapter 5: POWEL............cccecescccesesececeseececeseececscnacececeseececeanaeceseaeceeeenaeececaeeeeceuececeeeeceeaeeeseesaeeseees 30 5.1. Punjab — Robust Power Infrastructure ..........ccscccssseccssecesseceseecessececeeceesececaeeeeesecseeeeeeeees 30 5.2. Uninterrupted and Quality POWEDP 2.0.0... ccceccsscccssneeceseneceesenececeseececeeaeceeseaaeeceeeaeeenseaeeees 30 5.3. Power at affordable and fixed tariff for 5 years .........:cecscessseceseceseecseeeeceeeeseeeseeeeeeeeees 30 5.4. Up-gradation of power infrastructure to industrial [email protected] 30 5.5. Business Friendly Policies by PSPCL.............ceccccssssecceseeecesenececeseeeceeseeeeeceeaeeceeeeeceeeaeees 30 5.6. Stand by Support to Captive Generators/ USEIS .........ccccssccessecessecessecssseecsseecssseesseseesaees 30 Chapter 6: MSME Developme ntt ...................ccccssccceseseececeseeeceesneceeeseaeececeueceesenececeeececeeaeeeeeenaeeeeees 32 6.1. MSME Sector — Engine for socio economic growth and employment generation........ 32 6.2. State’s approach to MSME sector deVeElOpMeNt..........ccccesssececesseceeeseeceescseecessteecseseeees 32 6.3. Setting Up Of ‘MSME PUnjab’ ............ceccesecesseceeseecsesecsseceseeeeceasecesececeeeeeseccaeeeeaeesenaeseaaees 32 6.4. Setting up of District Level Single Window System for MSME Uniits.............ccsscecesseeees 33 6.5. MSME Cluster Identification ......... ce eeeesccesceesecseecneeeeeceeeecaeesaeceacesaeeaeceaeenaeecseeeaeeneeeenaes 33 6.6. MSME Cluster Development Programs ..........:cccccsesceecsenececeseececeenseceseaaeeesenaeecceeaeeeceeaeeees 34 6.7. Access to Technology for MSMEGS..........c:ccsscccssecsseecsseceseceseeesseeeceeceesececaeeceseeseeeeeeerees 34 6.8. Access to Markets for MSMES ........ccsesscecsesseceseeceeeeecesecesaeesaeceacecaeceeceaeesaeeceeeeaeneeeeaees 35 6.9. Access to Infrastructure for MSMES ........ceceeecceseceeeeseeceecesaeesaeceaecaaeeeeeeeaeeaeeeeeeeaeeneeeaees 35 6.10. Access to Finance for MSMES.........:ccessecsceeeeceseeceeesaeceececaeesaeceaecaeeseeceaeenaeeceeeeaaeeneeeaees 36 6.11. Growth Accelerator Services for MSMES........:csccssseeecceseeceeeeeeeeeeceaeeeaeceaeecaeeeeesaeeneeenaee 36 6.12. Common Environment Infrastructure in MSME CIUStELS «0.0... ee eeeeeeeeceeceeeeeeeeeeaeeneeeneee 36 6.13. Revival and Rehabilitation of Sick MSME Units ..........:eecceseeeeeeeceesseeeeeceeceeeeeeeceaeenteeenaes 37 6.14. MSE facilitation councils at district leVel oo... ee eeseeseceeceeeeeseceeeceaeeeeeceaeeneeeeseeeaeeneeeaees 37 Chapter 7: Startup & Entrepreneurship. ................cccccceceseeceeeseeceeeeeaeeceeaeceeseneeeceeeececseeeeeeeenaeeeeees 38 7.1. State’s approach to Innovation and Entrepreneurship. ..........ccsccccsccecsseccsteecsseecsteeeeaees 38 7.2. Startup Punjab - Building a Strong Eco-system for Startup .........cccccessccsseecsrceeeeeeeeeeees 38 7.3. University and College INCUDators ......... ee ceecssccececceecsenececeenececesnaeceseaececeenaeeccseaeeeceeaeeees 38 7.4. IKG PTU to Set Up FUN for StartUp «0.0... ecceesecsseesseceecececeeeecesececeeeceseccnaeeeeeeesenaesesaees 39 Industrial and Business Development Policy 2017 Page 5 of 121 7.5. Incubation Centres by other Government Organizations ...........:ccecssseeceesteeeceeneeeceeeeees 39 7.6. Private Incubators and Accelerators ...........ccccccccsssseeceseeecesenseceesneeceeseeceeceeaeeceeeeeceeeaeees 39 7.7. Setting up of sector specific INCUDATOIS ..........cceceeseceseceesececessecesececsececeseecsaeeeeeceseaesesaees 39 7.8. Creation of common infrastructure and CO-WOrkKING SPACES...........scceceseecsteeeeeeeeenseeesaees 39 7.9. Special Focus on Women Entrepreneurship ..........::ccecescecessnseceeseecceseeceecseaeeccseeeceeenaeees 40 7.10. Special Focus on SC Entrepreneurship ...........cccccecsscecesseecesenececeseececeseeceesenaeeceseeeceeeaeeees 40 Chapter 8: Skill Development ..................ccccccccesseeecesseececececeeesueceeeenseececeneeceseaaeceseaeeceeseeeeseneaeeeees 41 8.1. Punjab Skill Development Mission — Nodal agency for Skill Development..............006 41 8.2. Identifying the Skill Gap in VariOUS CIUSTELS..........cccccesecesseceesseceseeecseeceesececaeecseeeeseeeeserees 41 8.3. Convergence of various skill development SCHEMES..........ccsssecesseceseeseeecsteecsteeeseeeeeaees 41 8.4. Setting up of University of Skills and Vocational EDUCAtION............cccscceecsseceesteeeeeseeees 41 8.5. Setting up of new Multi Skill Development Centres ............eeceesseesseceeeceeteeeeesesseeeeeeeees 41 8.6. Setting up of cluster specific Skill Development Centres ..........cccccccccssscesssseeecsssseeeeseeees 41 8.7. Skill Training by large EMPlOYES ........... ee eccesecceecseceecseneecesensecessnaeceeseeceseseaeecceeaeeceeesaeees 42 8.8. SKI] REQIStrY 0... cece ccceeecceecnenececesnececesueceeesneceeseaaeeceseneeeesenececeecececeeeeesenaeeceeeaeeceeeaeeees 42 Chapter 9: Ease of Doing BUSINESS. ...............ccccccceccesscecesececeeeseeeeceseessececeacecesaecesueceeeeceeaeecsaeecsees 43 9.3. BUSINESS First ........e ceeceeceesenecceceeeceesacececeecessaeeeeceeseaanaeceseseuaaeaeceeseeaaeaeceeecseaaaeeeeeecseeaeaees 43 9.4. Reforms in the processes of core departments providing services to Industries.......... 44 9.5. Deemed Approval for various Regulatory Clearances..........csscessecssecseseecsteecseeeeseeceesaees 44 9.6. Reforms related to land and DUIIINgS .............ccceesecsseceesececeeseceseeeceeceseseccueeeeeeeseaeeesaees 44 9.7. Reforms in granting Utility PErMits ...........cccceseecesseecsecceseeceseecesseeeeeeceenecesueecessecseeeeserees 45 9.8. Reforms in Environment Regulations ............ccsccccssccssecceccecessseceeecesecceeseccsaeecseeeeeseesesaees 46 9.9. Reforms in Labour REgulations.............cesscesceeseeccsseccsseceseeceessecesaeccseecseseecsaeeceeeeeeeeeeesaees 46 9.11. Strengthening of Third Party Certification ...........ccccssccsseccssseceseeceseeeeeseccsaeecseeeeeereeesaees 48 9.12. Additional services under Punjab Right to Service Act (RTS) .........ccccesscesseeerseseeeeeeeeees 48 Chapter 10: Fiscal INCENtiVES ..............cceeeccccceeseeceseenececeseeceeseeaeeeecaaeececeaeececenececeeeeeceseeeeseeaeeeeees 49 Industrial and Business Development Policy 2017 Page 6 of 121 10.1. General Provision ...........cccccssssseccccecssscececcecsccccessssseceeseesescececusseeceseeueeececeucsseseceuseseseeueauass 49 10.2. Incentives to Existing Units for Expansion, Diversification and Modernisation............. 49 10.3. Freezing of Power Tariff for five Years ......... cc ceeseccssecesecesseeceneecseeceseeeeeseeeseseceeaeeeeaeeesees 49 10.4. Framework for Fiscal Incentives and other Support MEASUFES ...........ccececetecesteeeeseeeeees 49 10.5. Categorization of units in Startup, MSME and Large UNits ............cccccesseeseteceeteeeeseeeenes 50 10.6. Thrust Sectors Of the State ..........csccssccsseccsssecesseceseecsesecseaeceseeeceeeeeseeeeesuecseaeceeaeeeeeeenes 51 10.7. Fiscal incentives for Startup Units ..........ccccessecesseceseeceeseccsseecseeecseeecesaeceseecseaeceeaeeeeeeenes 52 10.8. Fiscal incentives for MSME UNits ..........cccccesecessecesecessseccsseecseeesseeccesaecesuecseseeeeseecaeeenees 54 10.9. Fiscal incentives for Large UNnits ..........cccccccssecsssecesecesseccsseecseeecsnecsesaecesuecsesseseaeecseeecsees 56 10.10. Fiscal incentives for Units in Thrust SCtOIS .........cceccecescccsseccssceeseecceeeceeeecesaeecaeecsaeeenees 57 10.11. Fiscal Incentives for ANChOr UNits ..........ccccessecesseceseceesseccsseecseeceneceesaecesaecseseeseaeecsaeeesees 58 10.12. Special incentives for 10 Early Bird Units in the new Industrial Parks approved by the SUATC eee eeeecceeceeeceeeeeeeceeeceeeseeaeeeeecessaueaeecesessaaeaeeeceseeaaaeescesessesaeeeeeceeseaaaeeceseeeseaaeeseeeeeenea 60 10.13. Support for Infrastructure Related SCHEMES. ..........ccccccccssseeecsssececsseeecessaesesssaeeeceseeeenes 60 10.14. Reduction in Stamp Duty for industrial units on registered Mortgage ...........sccceeeceees 61 10.15. One Time Settlement (OTS) Policy for dues of PSIDC, PFC and PAIC.............c:ccccsssseeeeee 61 10.16. Special Relief package for Sick MSME Units ...........cccccssccssecseeeccecceeeceseecseeeeseaeecsaeeenees 61 10.17. One Time Special Relief Package for Sick Large UNits ...........ccceseccescceseceseeeceeteeeeseeeeees 62 10.17.3. Fiscal incentive for acquisition of sick units and revival thereof.............cceccsseeeeee 63 10.18. Interest Waiver SCHEME .........:ccccsscccessseeeceeseeeceesececeeseeceeceueeecsaneeceeeneeeceenaecenseesesensaeeseees 63 10.19. Special Incentives for Border ZONE ..........cccccescccesseesseeceesecesaeeeceeeceecceseeceeeecesaeseseeeeeeeenes 64 10.20. Incentive for products not covered Under GST regime..........cccccccssccesseceseeeceeeeeeecseeeeeees 64 10.21. Negative List Of INGUStrIES 0.0... ee etceeceesececesseceseeceeceseueccsueeceueeceneceesaecesaecseseeecaeecaeeceaes 64 10.22. Sun Set Clause and Transition from FIIP(R) 2013 ..........cccccccesssecceesececeseeeeeeseeeeesesaeeeeees 65 10.23. Exclusions in the exemption from Electricity Duty and Stamp DUty...........c:ceseceseeeees 65 10.24. Fiscal Incentives to Industrial Parks ............cccccecesseceessceceesseeeeceeseeeeecenececeseececeseeeeeeeaaeeeeees 66 11.1. General ProviSiOn...........ccccccesseccsseeceecssscecceeseececesuecesesaeceeseaaeesesuaeeceecaececeeeeeceeeeeesceeeeseees 67 11.2. Department of Housing and Urban Development ............csccssscessecceseceseecessecesaeecseeeesnes 67 11.3. Department Of LADOUL ..........ecescesseceeecesseceeseeecesececeececeuecceueeeceeescneccesueceaeeecesaeceseecsaeeesnes 69 Industrial and Business Development Policy 2017 Page 7 of 121 11.4. Department of Science and Technology/Punjab Pollution Control Board.............c006 69 11.5. Department Of Transport ........ccccsscccssccesseccsssecesseceseecsesececaeceseeeceeeeeseeeeeseecseaeceeaeeeeaeeesnes 70 11.6. Department of Food and Civil SUPpPlies ............cceecececeeteceseeeeceeeceeceeeeeceseeeseseceeaeeeeeeeeees 70 11.7. Department of Industries& Commerce/Punjab Small Industries & Export Corporation 70 Chapter 12: Stakeholder Engagement and Policy Implementation Unit......................ccccessee 71 12.1. Stakeholder EngageMent.............cccccccessccccssscecceseececeseeceeceeneeseeneeceeeaaeceseeaeeceseeseseeeeeseees 71 12.2. Strategic Plan and Performance INGiCAtOIS ..........ceccceesecesseeesececseeceececeeseeecesececaeeeeeeeenes 71 12.3. Policy Implementation Unit 0.00... ec ecccessececcesececeeseeceeceeceeecenececeseeeecseaaecesenaeesceaaeesenes 71 12.4. Governance Mechanism for Implementation of the Policy ...........:ccccccseeceteceetecesteeeeees 73 Chapter 13: Sector Specific Strategies ...............ccsccsseccssecessececseecesaeeseeeeceesecseeeceseeeceeeeceseecsaeeenes 76 13.1. Focus on traditional strength as well as emerging SCCtOIS .........ceeseeceenteceeenteeessnteeeeees 76 13.2. Manufacturing .........cccccccsccesscessseecsscesseceecececessecesaecesececeseccsaeecueeceseceessecesuecseneceeseeeaeeceees 76 13.3. SOPViCES .......eeeeeceeececeeessnsncececeecnenanaeceeeecnsaaececeecaeaeceeceessaaaecececeeeaueaeesessensaaeeeeceseeseneaeesenes 76 Annexure — A: Sectoral Strategies for Manufacturing [email protected] 78 Annexure — B: Sectoral Strategies for Service INGUStIICS...............ccccccsccsseceseeceeeeceeeceseecetneess 100 Industrial and Business Development Policy 2017 Page 8 of 121 List of Acronyms ABPF Agri Business Promotion Facility AIF Alternate Investment Fund AKIC Amritsar Kolkata Industrial Corridor AVGC Animation, Visual Effects, Gaming & Comics CAP Corrective Action Plan CETP Common Effluent Treatment Plant CFC Common Facility Centre CFS Container Freight station CGST Central Goods and Services Tax CGTMSE Credit Guarantee Trust for Micro and Small Enterprises CIAB Centre of Innovative & Applied Bioprocessing CIIDS Critical Industrial Infrastructure Development Scheme CLCSS Credit Linked Capital Subsidy Scheme CLU Change of land use CNC Computerized Numerical Control CST Central Sales Tax DEITY Department of Electronics& Information Technology DIPP Department of Industrial Policy and Promotion EBZ Extreme Border Zone ECS Equated Car Space EDC External Development Charges EDC Entrepreneurship Development Centre EDFC Eastern Dedicated Freight Corridor EOU Export Oriented Unit ESDM Electronic System Design and Manufacturing FAR Floor Area Ratio FCl Fixed Capital Investment Industrial and Business Development Policy 2017 Page 9 of 121 FDDI Footwear Design & Development Institute FIIP(R) 2013 | Fiscal Incentives for Industrial Promotion (Revised) 2013 FPO Farmer Producers Organizations GIS Geographic Information System GOl Government of India GPS Global Positioning System GSDP Gross state Domestic Product IBFSN Integrated business facilitation services network IDC Industrial Development Centre ICD Inland Container Depot IGST Integrated Goods and Services Tax IDS Industrial Infrastructure Development Scheme IIT Indian Institute of Technology ILDP Integrated Leather Development Programme IPDS Integrated Processing Development Scheme IPR Intellectual Property Rights ISB Indian School of Business IISER Indian Institute of Science Education and Research IT Information Technology ITES Information Technology Enabled Services KVAH Kilo Volt Ampere Hours MEITY Ministry of Electronics and Information Technology MOFPI Ministry of Food Processing Industries MRO Maintenance, Repair and Overhaul MSECDP Micro and Small Enterprises Cluster Development Program MSME Micro, Small and Medium Enterprise MSDC Multi Skill Development Centres Industrial and Business Development Policy 2017 Page 10 of 121 NABI National Agri-Food Biotechnology Institute NIIFT Northern India Institute of Fashion Technology NIPER National Institute of Pharmaceutical Education and Research NOC No Objection Certificate NRSE New and Renewable Sources of Energy NSE National Stock Exchange OTS One Time settlement PAPRA Punjab Apartment and Property Regulation Act (PAPRA) 1995 PBIP Punjab Bureau of Investment Promotion PBTI Punjab Biotechnology Incubator PFC Punjab Financial Corporation PIU Policy Implementation Unit PMA Preferential Market Access PPCB Punjab Pollution Control Board PPP Public Private Partnership PSU Public Sector Undertaking PICTC Punjab Information and Communication Technology Corporation Ltd. PSAMB Punjab State Agricultural Marketing Board PSIDC Punjab State Industrial Development Corporation Ltd PSIEC Punjab Small Industries and Export Corporation PSPCL Punjab State Power Corporation Limited PIBDA Punjab Industrial and Business Development Authority QMC Quality Marking Centre QMS&QTT | Quality Management Standards and Quality Technology Tools RCF Rail Coach Factory R&D Research and Development RG Recreation Ground area RTS Right to Service Act Industrial and Business Development Policy 2017 Page 11 of 121 SAC Site Appraisal Committee SEBI Securities and Exchange Board of India SGST State Goods & Service Tax SIDBI Small Industrial Development Bank of India SME Small & Medium Enterprise SPV Special Purpose Vehicle STPI Software Technology Parks of India T&CPD Town and Country Planning Department TEQUP Technology and Quality Upgradation Scheme VAT Value Added Tax VMC Vertical Machining Centres VC Fund Venture Capital Fund ZED Zero Effect Zero Defect Industrial and Business Development Policy 2017 Page 12 of 121 Chapter 1 - Introduction Chapter 1: Introduction Punjab — a Progressive State The State of Punjab is known for its leadership position in the country with rapid strides in all round growth and prosperity. The State has done remarkably well in sectors across the spectrum such as Agriculture, Industry, Health, Education, Sports, Arts, Literature and Culture. The State has excellent infrastructure, human capital, progressive and enterprising people, who can transform every potential opportunity into success. Punjabi diaspora is spread across the world and has carved out a niche for itself. Punjab — a Strong Agriculture base The State has done exceedingly well in Agriculture and has earned the epithet of “Granary of India”. Punjab is the highest contributor of wheat and rice to the central procurement pool. Agriculture and allied services are one of the key strengths of the State. Punjab has highest per capita availability of milk which is almost four times higher than all India level. It is also the 24 highest cotton and blended yarn producer in the country. Punjab has highest productivity of Kinnow, a citrus fruit in the country and highest production of honey in the country. Agriculture, however, has limited potential to drive future economic growth of the State and it is the secondary and tertiary sectors, which will play an important role in future economic growth of the State and creation of jobs for its youth. Punjab’s Industrial landscape - MSMEs, the backbone of Industry Punjab has emerged as the leading hub for textile-based industries such as apparel manufacturing, spinning and hosiery exports. Further, engineering sector is a major contributor in the economy of Punjab. Over the last decade, it has grown more than 16%, and constitutes 23% of the total industrial output of Punjab. The key strength of Punjab is its thriving eco-system of well-established Micro, Small and Medium enterprises. Punjab is home to approximately 1.6 lakh MSME units, which are one of the most important pillars of the industrial growth. Punjab’s industry is dominated by small and medium enterprises. It has a rich industrial base of MSME units belonging to Auto Components, Bicycle Parts, Hosiery, Sports Goods, Agricultural Implements and many others. Punjab leads the Country in industrial growth for more than four decades till 1990s. The State has also given rise to some of the prominent industrial houses of the country. Industrial and Business Development Policy 2017 — A new paradigm Industrial and Business Development Policy 2017 Page 13 of 121 Chapter 1 - Introduction The present policy ushers bold reforms, restructures institutions, and presents a holistic framework for sustainable industrial growth of the State. The policy is architected around eight core strategic pillars of Infrastructure, Power, MSME, Ease of Doing Business, Startup & Entrepreneurship, Skills, Fiscal& Non-Fiscal Incentives and Stakeholder Engagement supported by Sector Specific Strategies for growth. The policy gives a great thrust to the development of MSME sector. The policy also aims at promoting growth of service industries apart from the traditional manufacturing industries. In true spirit of the cooperative federalism, the policy envisages substantial alignment and synergy with respective sectoral policies of the Central Government and would focus on optimum utilization of the same and further building upon it. The policy envisages setting up of a Policy Implementation Unit to ensure necessary support for the implementation of various aspects of the policy. Applicability of the Policy The policy will be applicable for 5 years from the date of notification and can be extended further by the State. The policy may be amended and modified in the course of implementation, however, all such amendments and modifications shall be applied prospectively and shall not curtail any benefit or concession already granted under the policy. The reference to the State in the Policy is reference to the State Government and its relevant departments and agencies as may be specified in the detailed schemes for the implementation of the Policy. The definitions, standard operating procedures and other modalities for fiscal and non-fiscal incentives and other aspects of the policy will be given in the detailed schemes for the implementation of the Policy. Industrial and Business Development Policy 2017 Page 14 of 121 Chapter 2-Vision, Mission and Goals Chapter 2: Vision, Mission and Goals Vision To develop the State as one of the most economically developed States in the Country and make it the best State for doing business. Mission (i). To accelerate industrial growth and job creation (ii). To develop world class infrastructure for the Industry (iii). To provide quality and affordable power to the Industry (iv). To accelerate growth of MSMEs (v). To focus on Start-ups and Entrepreneurship (vi). To facilitate availability of skilled manpower to the Industry (vii). | To improve the ease of doing business in the State (viii). To build institutional capacity and enhance institutional linkages (ix). To bring synergy between state programs and central schemes Goals To accelerate industrial growth and job creation (i). To attract Rs. 5 lakh crore of investment in 5 years (ii). To increase the Share of secondary sector in GSDP to 30% and tertiary sector to 62% (iii). To enable Job Creation — At least one job per household to fulfil GharGharRozgaar Mission of the State To develop world class infrastructure and bring anchor units (i). To develop 4 industrial parks and 10 Industrial estates in 5 years (ii). To attract at least one anchor unit in various manufacturing and service industry Sectors Industrial and Business Development Policy 2017 Page 15 of 121 Chapter 2-Vision, Mission and Goals To provide quality and affordable power to the Industry (i). To provide power at affordable and fixed tariff for 5 years to the Industry (ii). To upgrade power supply infrastructure to all the industrial areas to provide quality and uninterrupted power To accelerate growth of MSMEs (i). To carryout in depth study of 10 clusters every year for specific interventions to increase their competitiveness (ii). To upgrade and set up common facility centres in 10 clusters every year (iii). _ To upgrade and set up 10 Technology centres in the State To focus on startup and entrepreneurship (i). To facilitate 1000 start-ups in 5 years (ii). To set up 10 incubation centres/ accelerators in the State particularly focusing on Digital manufacturing, Lifesciences (Biotechnology), Agro &Food Processing and Information Technology (iii). | To build strong linkages with all the major institutions (iv). To facilitate 50 Entrepreneurship Development Centres in the colleges To facilitate availability of skilled manpower for the industry (i). To set up one Skill University in the State (ii). To set up one Skill centre for each identified industrial cluster (iii). To set up advance skilling on hi-tech manufacturing, design and IT skills for 5 identified sectors To improve the ease of doing business in the State (i). To be in top 5 States in the Country in ease of doing business in 3 years and top position in 5 years (ii). To strengthen Invest Punjab initiative by setting up of BusinessFirst portal for a single unified interface to the Industry and Businesses for all regulatory and fiscal services throughout their lifecycle Industrial and Business Development Policy 2017 Page 16 of 121 Chapter 2-Vision, Mission and Goals (iii). To re-engineer the processes of 7 core departments on priority namely Industry, Power, Pollution Control, Labour, Housing & Urban Development, Local Department and Taxation to make them extremely simple, industry friendly and completely digital To build institutional capacity and enhance institutional linkages (i). (ii). (iii). (iv). To restructure existing entities and empower them through statutory powers to translate the vision and mission into reality To set up a Policy Implementation Unit to support the implementation of various aspects of the policy and monitor the progress To set up effective mechanism for talent acquisition for specialized projects, organizations and other initiatives To set up effective mechanism for partnering with various national and international agencies and develop effective PPP model for infrastructure, technology support, skills and other requirements of the Industry To bring synergy between state programs and central schemes (i). (ii). To strengthen liaison office at Delhi with a strong team to liaison across the Central Ministries and Agencies to ensure that State draws benefits from all the relevant Central Schemes To ensure optimum utilization of central schemes by respective departments and agencies of the State with support from Policy Implementation Unit Industrial and Business Development Policy 2017 Page 17 of 121 Chapter 3: Key Strategic Pillars Chapter 3: Key Strategic Pillars Eight Core Strategic Pillars In order to provide a holistic support for the growth of existing industries as well as attracting new manufacturing and service industries, the State would focus on the right set of drivers and enablers to create a business friendly environment. The State has identified eight core strategic pillars for the growth and promotion of industries in the State Infrastructure The State would develop quality industrial infrastructure with robust policies for its maintenance. The Industrial Parks and Industrial Estates would be brought under one agency and all the necessary amenities and common facilities will be provided in these estates. All the estate management policies will be simplified. The infrastructure development agency will be given statutory powers and suitably strengthened. Power The State recognizes that power is one of the most crucial input for the industry. The State will accordingly make provision for quality, reliable and cost-effective power to give a great boost to the Industry. The State is power surplus today. The State will provide power to the Industry at affordable and fixed tariff for 5 years. This would benefit industries across a broad spectrum and will bring much needed respite to the industry. The State would utilise this period of five years to build a strong support system to enhance the productivity, efficiency and competitiveness of the Industry in the State. Micro, Small and Medium Enterprises The State has a strong base of MSME units. MSMEs play a crucial role in providing large employment opportunities at comparatively lower capital cost. MSMEs also help in industrialization of rural & backward areas, thereby, reducing regional imbalances. The MSMEs in the State are facing a myriad of challenges. The State would build suitable capacity to focus on the development of MSMEs to make it a highly vibrant and dynamic sector. Startup and Entrepreneurship Innovation and Entrepreneurship are crucial for future growth of State’s economy. The State would support cluster specific bottom up approach to build and strengthen Startup and Entrepreneurship ecosystem in the State. The State would follow an entrepreneur centric approach fostering connections and learning. The State will facilitate networking between entrepreneurs and entrepreneurship support organizations by bringing entrepreneurs together Industrial and Business Development Policy 2017 Page 18 of 121 Chapter 3: Key Strategic Pillars in an environment that catalyzes learning. The State would set up a dedicated organization for spearheading its strategy and action plan for promotion of Startup and Entrepreneurship. Skill Development The State has already set up a State Skill Development Mission, which would be further strengthened. The State would ensure convergence of various skill training schemes to bring scale and synergy. The State is conscious of the dire need for the Industry to adopt next generation manufacturing to become globally competitive. Given high dependence on low skill labour, re-skilling or up-skilling of existing workforce will be required to make them ready for the new requirements. The State would set up cluster specific skill centres for various manufacturing sectors to ensure skilled workforce for the Industry. The State would also focus on employment generating service industry and train its youth for service industry. The State would strengthen industry institute interaction to enhance the employability of youth and would set up GharGharRozgar portal to connect skilled youth to the Industry. Ease of Doing Business The State recognizes the utmost need for providing conducive environment to the industry and businesses in the State. The State would strengthen Invest Punjab initiative by setting up “Business First” portal to provide all regulatory services and fiscal incentives to the businesses through one common integrated platform and business friendly service delivery network. Each business will be given a unique identification. This will avoid supplying information to multiple web portals and creating multiple credentials. The State would set up District Bureau of Enterprise to provide a wide range of services to the industry. The State would reengineer the processes of seven core departments connected with Industrial development and growth so as to make them extremely simple and easy to follow. Fiscal and Non-Fiscal Incentives The State would provide a variety of fiscal and non-fiscal incentives to support the growth of existing industries and to attract new investments. The policy provides strong support to MSMEs to enhance their access to Finance, Technology, Market, Infrastructure and other needs. The State has identified certain thrust sectors for growth and they have been provided higher incentives. Keeping in view the significance of Anchor investors, they have been offered special incentives in the policy. It has also given a package of incentives for revival of sick industries. Extreme Border Zone has also been given special incentives. The policy provides a host of non- fiscal incentives to promote industrial growth. Stakeholder Engagement Industrial and Business Development Policy 2017 Page 19 of 121 Chapter 3: Key Strategic Pillars Industrial growth and development requires engagement with a very diverse set of stakeholders. The Stakeholder Engagement will be a key essential for the success of the Policy. The policy aims to identify key stakeholders from the State and Central government, Key Industry leaders and Industry Associations, private sector, academic institutions, civil society, as well as development agencies and foreign governments that would require continuous engagement. The policy suggests approaches on how to effectively engage them throughout the implementation of the Policy. Industrial and Business Development Policy 2017 Page 20 of 121 Chapter 4: Infrastructure Chapter 4: Infrastructure Industrial Infrastructure — Key to the Growth of Industries Industrial Infrastructure is one of the key mainstays in the long term development of the Industry. The Government aims to develop robust infrastructure including core and supporting infrastructure which shall provide long term benefits to the industry and set the State on the path of planned industrial growth. It is also the endeavour of the Government to simplify laws and rules for infrastructure development, management and maintenance through a single Industrial Infrastructure Development Agency in the State. Setting up of Punjab Industrial and Business Development Authority In order to streamline all the activities pertaining to Industrial Infrastructure development, maintenance and management, Punjab Small Industries and Export Corporation (PSIEC) needs to be strengthened and the State would set up Punjab Industrial and Business Development Authority (PIBDA), a statutory body to spearhead industrial development including industrial infrastructure in the State. All Industrial estates, industrial parks, industrial focal points, industrial growth centres etc. (to be referred as Industrial Parks hereafter) developed by the Directorate of Industries (Punjab), Punjab Small Industries & Export Corporation (PSIEC), Punjab Infotech (PICTC) and Punjab Agro Industries Corporation and other such agencies shall be transferred to the Authority for development, management and maintenance. The Authority shall be declared local authority for the purposes of maintaining various Industrial Parks and shall also be vested with the powers of Special Urban Planning and Development Authority and other powers under Punjab Regional and Town Planning and Development Act, 1995 for ensuring planned development of various designated industrial areas under the Master Plan of respective cities. Development of New Industrial Parks and Industrial Land Banks In order to provide impetus to rapid industrial growth, the State would develop new Industrial Parks, which shall have the best-in-class infrastructure. The State through the Authority will develop 4 major Industrial Parks and 10 other Industrial Parks covering general and sector specific requirements of various industrial sectors. The State would help identify and transfer various village common lands and unutilized government lands for being developed as Industrial Parks. In addition, the Authority will also keep a ready shelf of land bank, earmarked after their due feasibility is established, which can be offered to the Industries. Industrial and Business Development Policy 2017 Page 21 of 121 Chapter 4: Infrastructure In order to reduce the upfront investment from the State in assembling and developing various land pockets, making projects viable and greater benefits to the stakeholders, the State would take following steps: (i). The State will frame appropriate land pooling scheme for acquisition of land for industrial parks. (ii). The State will frame appropriate scheme to develop Industrial Parks in partnership with land owners, where land is contributed by the land owners and the authority will bring expertise for development and marketing of the Park. This will be particularly helpful in case of village common lands and a revenue sharing arrangement with village panchayat will bring greater benefits to both village panchayat and the State. (iii). In case of unutilized government lands, the same may be made available free of cost to the Authority for developing industrial parks. (iv). The Authority would also mobilize upfront payments from the allottees to meet upfront cost of acquisition of land by allotting the lands with the finalization of layout plan and its approval by the competent authority. (v). The land value in the area appreciates considerably due to setting up of industrial park at any location, the State would devise a scheme to share part of the increased stamp duty with the Authority. (vi). In order to reduce the development cost, the State would avail the financial assistance and grants available for development of Mega Food Parks, ESDM Parks, Amritsar Kolkata Industrial Corridor development, Integrated Leather Park, MSME_ infrastructure upgradation and other Central schemes for infrastructure development. Development of Integrated Industrial Townships Integrated development — Live, Work and Play Industrialization and urbanization are related phenomenon and therefore the State would have an integrated approach to face the challenges arising from the same. The State would develop integrated townships with provision of residential, industrial, commercial and other needs rather than developing industrial areas and residential areas separately. These industrial townships should follow a philosophy of Live, Work and Play to ensure high degree of quality of life and liveability. Land to the Industry at reasonable price — A large scale mixed land use project would be able to provide land to the industry at reasonable price reaping benefits from other components of the project. Industrial and Business Development Policy 2017 Page 22 of 121 Chapter 4: Infrastructure Attracting talent — A township based on live, work and play will be able to provide necessary support for various needs of the professionals and as a result will help in attracting talent for the industry. Inclusive growth - The needs of urban poor and industrial labour are often not met adequately and they are forced to live in the slums. Various schemes for housing for poor could not be effectively implemented due to lack of availability of land. The new townships will provide land for social housing to cater to the needs of weaker sections of the society particular the industrial workers who would need housing and other facilities. Decongestion of cities — The State will also enable the industries located in the congested areas of the city or non-conforming zones (where Master Plan stipulates their shifting after certain time period) to the new areas being developed and allow the inner areas for more value added city use. Development along Industrial Urban Corridors Amritsar Kolkata Industrial Corridor (AKIC) The State will develop area falling in AKIC along the Eastern Dedicated Freight Corridor (EDFC) as major industrial hub. It will cover important towns of Rajpura, Sirhind, Doraha, Sahnewal and Ludhiana. The State has already identified various land parcels for the purpose of setting up Industrial Estates along AKIC. Chandigarh-Amritsar is an important urban industrial corridor. The State will strengthen the existing industrial clusters on this corridor. The State would further carry out the feasibility of various identified land pockets on this corridor and develop new Industrial Parks and Industrial Townships along this corridor. Development of Chandigarh-Hoshiarpur-Gurdaspur Industrial corridor will give a fillip to Kandi Area and Border Area. The State would further carry out the feasibility of various identified land pockets on this corridor and develop new Industrial Parks and Industrial Townships along this corridor. Chandigarh-Patiala-Sangrur-Bathinda Corridor Development of Chandigarh-Patiala-Sangrur-Bathinda corridor will ensure development of industrial infrastructure in Malwa region of the State and provide employment opportunities to youth in this region. Industrial and Business Development Policy 2017 Page 23 of 121 Chapter 4: Infrastructure Development of Economic Corridors along major rivers The State will explore canalization of major rivers namely Ravi, Beas and Sutlej and construct high speed economic corridors along these rivers to attract industry and investment, which will develop these areas and provide jobs and growth opportunities to local people. Core, Support and Social Infrastructure to be provided in Industrial Estates Though the actual infrastructure facilities will depend on the nature, size and resources available for an industrial Parks, the State would endeavour to provide the following core, support and social infrastructure in all the existing and future industrial Parks in a time bound manner: Core Infrastructure (i). Developed Industrial Plots (ii). Roads, Storm Water Drainage and Street Light (iii). Water Supply (iv). Power Supply Network (v). Solid Waste Disposal (vi). Environment Conservation Initiatives - Green Spaces, Parks and Gardens (vii). | Telecommunication, (viii). Gas Support Infrastructure (i). Skill Development Centre (iii). Common Facility Centre (iv). Common Effluent Treatment Plant (v). Recycling of Waste (vi). Exhibition and Convention Centre (vii). | Cargo Logistics Centre/ Custom bonded warehousing (viii). | Petrol and Service Station (x). Space for public amenities — Post office/Banks/Insurance, other Institutions Social Infrastructure (i). Industrial Housing (ii). Healthcare and medical attendance services (iii). ESI Dispensary/ Hospital (v). Organized transport linkages Provision for MSME units in the Industrial Estates Industrial and Business Development Policy 2017 Page 24 of 121 Chapter 4: Infrastructure The State would earmark adequate land for MSME units including land for development of flatted factories, industrial sheds and other measures to support MSME units. Further, the State would allow the plots to be used for duly identified service enterprises. ESI Hospitals and Dispensaries In many industrial estates, plots have been reserved but no ESI hospital or dispensary has been set up. The State would take up with ESI department either to develop the facilities in a time bound manner otherwise the State would arrange for alternate model for delivering services in such Industrial Estates. Affordable Housing for the workforce and provision of créches (i). In order to ensure availability of labour, development of affordable housing including dormitories and hostels will be done in or around industrial estates. (ii). The State would make suitable land available for developing affordable housing under various State and GOI schemes and devising suitable PPP model. (iii). The State will allow conversion of industrial plots lying vacant for affordable housing for labours keeping in view the demand of such facilities in respective industrial estates. (iv). The State will also facilitate setting up of créche facilities in the industrial areas. Exhibition and Convention Centres Exhibition centers play a key role in enabling the Industry to showcase and market their range of products. The State will set up Exhibition and Convention centers with the latest infrastructure and facilities including spacious conference halls, display areas, proper parking, etc. in Mohali, Ludhiana, Jalandhar and Amritsar in first phase. Warehousing Facility All the new Industrial Parks shall have the provision of warehousing facilities, which could be developed in PPP mode providing good facilities and latest infrastructure. Further, provisions shall be made to develop Warehousing facilities near existing clusters, in case such demand exists. Common Environment Infrastructure The State firmly believes that Industrial development has to be environmentally sustainable. Common Environment Infrastructure is the need of the hour for industries not capable of putting up their own Environment Management System due to technical, financial or land Industrial and Business Development Policy 2017 Page 25 of 121 Chapter 4: Infrastructure related constraints. This is particularly required to support MSME units in various industrial clusters. The State in partnership with Industry Associations will facilitate setting up of common environment infrastructure such as Common Effluent Treatment Plants, Common Hazardous Waste Treatment Facilities, E-Waste Collection and Disposal facilities and other such facilities to protect the environment and promote sustainable development. The State shall utilize various schemes such as MSME-CDP scheme of Ministry of MSME, Integrated Processing Development Scheme (IPDS) of Ministry of Textiles to avail funding for setting up of CETPs. Apart from facilitating assistance under various Central and State Schemes, the State will also facilitate setting up of common facilities on PPP. (i). Provide land for CETPs on lease (ii). Exemption of Electricity duty on the operations of the CETP (iii). Expedite any existing or future State shares in setting up of CETPs Natural Gas The State will explore supply of Natural gas to the Industrial Parks through proper connectivity. Availability of water for industrial use The State will set up Ground Water Authority to frame appropriate and sustainable policies for use of water. The State would also work towards greater use of surface water for industrial purpose and suitable schemes will be framed. E-waste facility Keeping in view the amount of e-Waste being generated, the State would set up adequate facilities for e-Waste collection and recycling. Maintenance of Industrial Parks Nodal Agency for maintenance The Authority shall be the nodal agency responsible for maintenance of all the Industrial Parks in the State. It will have the status of local authority. The Authority will collect and retain the charges accrued from the industrial estates, focal points, etc. transferred to the Authority in the form of property tax, water, sewerage, solid waste and utilize the same for development, upgradation, maintenance and management of the industrial areas. Levy of maintenance service charge Industrial and Business Development Policy 2017 Page 26 of 121 Chapter 4: Infrastructure The Authority would levy maintenance service charges on industrial units located in the Industrial Parks to meet the gap, if any, in the income and expenditure on maintenance. Upgradation of Industrial Parks on PPP Keeping in view that the industrial Parks are currently in poor shape, huge resources would be required to upgrade the existing infrastructure and then maintain the same as per global standards. Immediate improvement in infrastructure and their maintenance is essential. In order to ensure global standards and attract investment and management from the private sector in the maintenance of various industrial parks, the Authority will work out suitable model for upgradation and maintenance of industrial parks in PPP mode. Amendment in Common Infrastructure (Regulation and Maintenance) Act 2012 Wherever SPVs for maintenance have been formed and have come forward for maintenance of industrial estates, the Authority will involve them in the maintenance of Industrial Areas. The State will further suitably amend the existing Common Infrastructure (Regulation and Maintenance) Act, 2012 regarding maintenance of Industrial Parks in line with the Policy. Estate Management Uniform Estate Management Procedure (i). The Authority will be responsible for all estate management services of all the industrial estates, focal points and other areas transferred to it by Directorate, Punjab Infotech, Punjab Agro and other agencies. (ii). The Authority will simplify and revise existing estate management practices of different agencies keeping in view the changing economic environment, aspirations of the Industry and ensuring ease of doing business for existing and prospective allottees. The guidelines and processes pertaining to allotment, reservation, transfer of plots, grant of NOCs, land use changes and other aspects of Estate Management will be simplified and revised. (iii). | The Authority will notify and publish a standard Estate Management Procedure for all the industrial estates, industrial focal points, industrial growth areas etc. developed or transferred to the Authority. (iv). The Authority will develop online system for all the estate management services in a time bound manner. Unlocking the potential of land — Liberalizing zoning regulations Industrial and Business Development Policy 2017 Page 27 of 121 Chapter 4: Infrastructure (ii). (iii). (iv). (v). Many of the old focal points and industrial areas have come inside the city. Further, there is need to provide various support services and infrastructure to the industrial units in the focal point. In fact, in case of MSMEs, a number of services have also been included in the definition of enterprise. It is accordingly required that duly identified activities are permitted in the zoning regulations of industrial parks and estates. ELTOP Sector in SAS Nagar was setup long back and keeping in view the present needs, the permissible usage needs to be reviewed and liberalized. The department of housing and urban development has already notified a scheme for conversion of industrial plots to other usage under certain terms and conditions, the same would be reviewed to make it more effective. The State would also provide an effective mechanism for resuming the vacant plots so that they can be given to deserving entrepreneurs. Zoning regulations will be liberalized to provide for flatted factories. Further, keeping in view the paucity of land, the State and the Authority would go for vertical growth and grant of higher FAR would be liberalized. 4.9.3. Unlocking the potential of land — Liberalising the lease and other terms and conditions of old allotments (i). (ii). (iii). Some of the terms and conditions of allotment and lease deeds executed by the State and various agencies have emerged as a bottleneck towards utilization of idle land with the Industry. PSIEC has liberalised many of the lease terms and conditions over a period of time as per the demand of the Industry for their growth. PICTC is still following different policies. Uniform Estate Management Policy will be notified. Provisions regarding unearned profit clause and other such restrictive clauses in the terms and conditions of sale or lease will be reviewed. Provision of mortgaging of land to raise finances and sub-leasing will be reviewed with a view to make them more liberal. 4.9.4. E-auction of plots Wherever the number of qualified applicants are more than number of plots, the plots will be allotted by way of e-auction. 4.9.5. One Time Voluntary disclosure and Amnesty scheme Industrial and Business Development Policy 2017 Page 28 of 121 Chapter 4: Infrastructure It has been noticed that the old allottees have committed certain violations of terms and conditions of allotment pertaining to unauthorized transfer/ leasing/ change in constitution etc. The State would come out with one time amnesty scheme for regularization of such cases. 4.10. Private Industrial Park The State will separately formulate a scheme for promotion and development of Industrial Parks in Private Sector. Industrial and Business Development Policy 2017 Page 29 of 121 Chapter 5: Power Chapter 5: Power Punjab — Robust Power Infrastructure Power is one of the basic factors of production for Industry. Punjab is a power surplus state and has adequate power supply to meet the demand. The state has excellent distribution network which includes 66 KVA sub-stations at every 10 km. It has the country's first ever 400 KVA ring main system covering the entire state. The state has a cumulative installed renewable energy capacity of 1,422 MW with 475 MW of Biomass power and over 800 MW of solar power. The state thus has an advantage of surplus power and a robust power infrastructure. Uninterrupted and Quality Power Punjab is the only state in North India which has been able to control the theft of power and has achieved reduction of aggregate technical and commercial losses below 15%. The Government is committed to supply uninterrupted electricity at affordable rates so as to attract industrial investments in the state. Power at affordable and fixed tariff for 5 years Power represents a major recurring expenditure. In order to enhance the cost competitiveness, the State will provide power at affordable and fixed tariff for 5 years. This would not only benefit the new industry in Punjab, but also help in reviving the existing industry of Punjab, which has always been the State’s pillar of strength. Up-gradation of power infrastructure to industrial areas The State will through the concerned department and agency get the audit of the power distribution networks to the Industry conducted and any gaps such as lack of dedicated feeders, lack of proper feeder capacity, faults in distribution etc. will be appropriately addressed. In order to mobilize upfront investment in upgrading distribution infrastructure to the industrial estates, the State will explore the possibility of private sector participation for Industrial Estates at Ludhiana, Jalandhar and Amritsar. Business Friendly Policies by PSPCL PSPCL will review its policies to make them more business friendly for release of new connection, enhancement of load, splitting of connection, import of bulk power, rationalization of various electricity rates and other service charges, peak load charges, procurement from state MSME’s and OTS policy etc. Stand by Support to Captive Generators/ Users Industrial and Business Development Policy 2017 Page 30 of 121