INDIAN STATE : PUNJAB

General Information

Punjab symbolizes the land of enterprise and endeavor. The state of Punjab blessed with fertile soils and rivers, has earned the distinction of being the " Granary of India" owing to its enterprising spirit and toil of its people. Punjab is a progressive state of India with an average growth rate of 10 per cent and has evolved into a land of boundless opportunities for investment, industry and employment.

Punjab is bordered by Pakistan in the West, Jammu and Kashmir in the North, Himachal Pradesh to the northeast, Haryana to the south and southeast, Chandigarh to the southeast and Rajasthan to the southwest. The state of Punjab was the first to translate agricultural technology into the " Green Revolution" recording the highest growth rate in food production.

Fact File

Geographical Area	0.50 ( Lakh Sq km)
Capital	Chandigarh
Population (2001 Census) In lakhs	243.59
Gross state Domestic Product at Current Prices (2004-05) (As on Feb 2006)	88351 (Rs Crores) US$ 19.1497 bn
Gross state Domestic Product at Constant Prices (1993-94 ) for the Year (2004-05) (As on Feb 2006)	48532 (Rs crores) US$ 10.5207 bn
Net State Domestic Product at Current Prices (2004-05)(As on Feb 2006)	79010 (Rs Crores) US$ 17.1278 bn
Net State Domestic Product at Constant Prices (1993-94) for the year (2004-05) (As on Feb 2006)	43122 (Rs Crores ) US$ 9.34826 bn
Per capita NSDP (state Income) at Current Prices(As on Feb 2006)	Rs 30710 US$ 665.751
Percentage of State Population to All India Population	2.37
Literacy Rate Male Female	69.65% 75.23% 63.36%
Languages	Hindi, English, Punjabi

Advantage Punjab

• All towns and villages are well connected by roads. All villages are
  electrified. A vast network of canals and tube wells irrigate 90% of the
  cultivated area.
  
• Punjab has 4.2 millions hectares of well-irrigated and fertile land in which cropping intensity is 182%. Having a geographical area of only 1.5%, Punjab produces 21% of the country's wheat (13.7 million tons), 9% of rice (7.3 million tons) and 15% of cotton (1.9 million bales). It contributes 60 to 70% of wheat and 40 to 50% of rice to the central pool. Punjab State has earned a name "Food Basket of Country" & "Granary of India" has been containing 40- 50% of Rice & 50-70% of Wheat for the last two decades.
• The state has abundant labour resources coupled with cheap water and power supply.
  
• Highly skilled and professional work force with an abundance of skilled workers.
  
• Punjab has the highest per capita incomes in India.
  
• Conducive and harmonious industrial relations.
  
• Well-developed export base.
  
• Strong agricultural and a well developed small and medium scale industrial base.
  
• Well-developed financial services- banks, financial institutions and stock exchange.
  
• Peaceful and congenial environment.
  
• The state of Punjab cleared a record level of Private investment amounting to US$ 11.2718 billion in various industrial and housing projects, of which nearly US$ 1.95088 billion has been materialized. Punjab has been judged as the best-administered state in India over the last three years.
• Punjab has the best power situation in the country and the power tariff is one of the lowest in the country.
• The Government is committed to its initiatives in e-governance and has envisioned the creation of a common infrastructure for the implementation of e-governance projects

Economic Infrastructure

Roads

Punjab provides a very fine system of road transport. A total of 54836-kilometer long roads pass through it. Mettled roads link almost all villages of the state. Its modern bus fleet of 3,511 buses covers a distance of 1.05 million Kilometers per day. The state government has also proposed to construct express highways and free ways for speedier vehicular traffic. The Punjab Government proposes to construct 50 ROBs and 3 Super Bus Terminals (Jalandhar, Amritsar and Ludhiana) on BOT basis. Projects have been taken in a big way for the upgradation of Chandigarh-Ludhiana, Zirakpur-Patiala, Ropar-Nawanshahar, Jagraon-Nakodar highway.

Villages connected by metalled roads, towns of adjoining states and National Highways:

National Highway No.1: Has four-laning halfway complete, passes through Punjab from Ambala to Amritsar, links Punjab with Haryana, J&K and Delhi.

National Highway No. 2: (Ambala-Shimla), passing through Chandigarh and linking Punjab with HP

Kilometers of National Highways: 1729 kms

Kilometers of Provincial Roads: 48660 Kms

Roads per 100 sq. kms: 118 km

Percentage of villages linked with roads: 99.24

Highest Surface Length/100sq Km: 95 Km

National Highways: 977 Kms

State Highways: 2166 Kms

Major District Roads: 1799 Kms

Other District Roads: 3340 Kms

Link Roads: 31657 Kms

Railways

A well-connected railway system exists in Punjab through the network of Indian Railways. The main railway routes passing through Punjab are:

• Amritsar-Ambala-Delhi
  
• Sriganganagar-Ambala-Delhi
  
• Ferozepur-Ludhiana-Ambala
  
• Pathankot-Rupnagar-Fatehgarh Sahib
  
• Sriganganagar-Bathinda-Narwana

Aviation

Punjab has well - connected airports at Chandigarh, Amritsar & Ludhiana. It has air cargo complex at Amritsar, inland container depot at Ludhiana, container freight station at Jalandhar, Ludhiana, Amritsar and container freight station at Bathinda, Rajpura.

Power

With the approval of electricity bill 2003 by the parliament, the power sector reforms have also speeded up in the state. Reforms such as availability of quality power at an competitive rates to the customer have been undertaken in the power sector with the proposals of Punjab State Electricity Board (PSEB).

In 2006,GNDTP thermal plant saw the maximum growth in power generation of nearly 24 per cent. Further, during 2006-07, Guru Gobind Singh super thermal plant registered the highest thermal power generation at 4,909 million KwH, witnessing an increase of 6 per cent.

Among the hydro power plants in the state, RSDP power plant generated 220 million KwH of power followed by ASHP hydel power plant at 75 million KwH and Shanan power plant at 57 million KwH during 2006. During 2006,hydroelectricity produced by RSDP power plant was the highest at 1,071 million KwH.

The Government of Punjab has set the following objectives to reform the power sector:

• Achieving commercial viability. PSEB earned a whooping commercial profit of about Rs. 180 crores during 2003-04.
  
• Providing reliable quality power to all the consumers in the state at the affordable rates.
  
• Memorandum of Understanding (MOU) signed between Ministry of Power, Govt. of India and Govt. of Punjab on 30.3.2001 to affirm the joint commitment of two parties to reform the power sector in the State.

Energy

The Punjab state is dependent mainly on thermal, hydel and solar power. The main source of power in the state all along has been hydroelectric power and thermal power. For thermal power, the state has three power stations at Bathinda, Ropar and Lehra Mohabbat. Another, rice straw plant of 10 MW at Jalkhari has been leased out w.e.f. 24.7.02.

Considering some alternative sources of energy, the scope for solar energy is very wide in the state and biogas can also meet the requirements of rural people to a limited extent.

Energy is one of the crucial infrastructures for economic development of the state. Government has been making higher allocation for this sector to meet the demand for electricity in the state. During 2005 out of total plan outlay of Rs. 3550.00 crores, a sum of Rs.964.65 crores (27.17 percent) has been approved for energy .The installed plant capacity generation was 4450 MW in the year 2005-06.

Electricity

Installed plant capacity: During the 2005-06, installed plant capacity for electric power generation in the State is 4450 MW.

Plant load factor: Thermal power plants are expected to generate a plant load factor of 74.69 percent during 2005-06 as against 77.45 percent during 2004-05.

Electricity Generation During 2006 total power generation in Punjab rose by 5.7 per cent to 1,768 million KwH. Around 75.7 per cent of the total power generation came from the thermal power plants. In absolute terms, thermal power generation was 1,338 million KwH while hydel power generation was 430 million KwH. During 2006-07 total power generation in the state was 10,370 million KwH. Thermal power generation rose by 6.6 to 7,729 million KwH.

Tube wells energized As many as 31212 tube wells were energised during 2004-05(P) thus bringing the progressive total of energised tube wells to 912889 in the state, to meet the increasing demand for irrigation facilities.

Transmission and Distribution (T&D) losses: As per estimates of financial resources of Punjab State Electricity Board, transmission and distribution losses (Technical & Non Technical) is estimated to be 24.00 percent during 2005-06. There is a scope to curb these losses in the state. The energy saved from such losses will increase its availability.

Biogas plants provide energy in a clean and non-polluted form in rural areas. It also produces nitrogen-enriched manure, which helps in raising crop production. Department of Agriculture Punjab has installed 477 and Punjab Energy Development Agency has installed 1000 Bio gas plants during 2004-05.

Social Infrastructure

Education

Punjab is ranked seventh in terms of education amongst the states. With growing pace of industrialization in Punjab, the main stress has been on expansion, modernisation and reorientation of technical education and industrial training system so as to match it with emerging technologies for ensuring quality manpower availability to the industrial sector. The basic objective is to produce engineers, technicians and craftsmen who are viewed as assets by the Industry of world-class capability. For this purpose, besides opening up new Engineering colleges, Polytechnics and Industrial training in the emerging areas, the existing institutions are being modernized by providing new equipment and machinery with the assistance of World Bank as also the state government. To consolidate the development in these fields, a new full fledge 'Punjab Technical University' at Jalandhar has been established.

Four Directorates function under the Punjab Education Department:

• Directorate of Public Instruction (Colleges)
  
• Directorate of Secondary Education
  
• Directorate of Primary Education
  
• Directorate of State Council of Educational Research and Training (SCERT).

Punjab has a well-developed educational system consisting of the following:

• 5 Universities.
• 2 deemed universities.
• 38 Engineering Colleges from which 9,455 students pass out each year.
  
• 57 MBA & BBA Colleges from which 2,000 students pass out each year.
• 25 MCA Colleges from which 1,180 students pass out each year.
• 355 undergraduate Colleges from which 44,000 students pass out each year.
• 75 post graduate Colleges from which 16,032 students pass out each year.

Major Industries

Agriculture

Agriculture is the most important constituent of the primary sector including forestry, animal husbandry, mining and fishing. Looking at the history of the economic development of the most of the present developed nations or those, which have embarked on the development path, it is the development of the agriculture that has laid the foundation of the development of the other sectors of their economies.

Punjab is a little big state of India: little because the state occupies only 1.5 per cent of the geographical area of the country and big because around two-third of the food grains procured annually in the country come from this state. Further over 95 per cent of the food grains that are moved interstate to feed deficit areas through the public distribution systems are the stocks procured from this state.

New Initiatives in Agriculture

• Integrated Pest Management: A new concept introduced to farmers to assist in general crop conditions & ability to identify pests & diseases and their cures.
• Bio-Fertilisers Bio-fertilisers play a very vital role in farming today. Concentrated efforts are being made to popularise them in the state, and a special Bio fertiliser unit has been recently set up in Ludhiana.
• Special Campaign to Boost Productivity: Under this campaign, two villages will be allocated to each agricultural development officer to provide technology transfers and target on an increase in crop production within a period of two years. Agricultural development officer also ensures timely supply of inputs such as certified seeds, fertilisers etc.
• Diversification of Agriculture To diversify the cropping pattern, efforts have been made to divert areas to a variety of crops like sugarcane, maize, soyabean and agro forestry.
• Bee Keeping Under this scheme, beehives, boxes and other equipment are given on subsidized rates to the small, marginal and land-less farmers who opt for bee keeping. In addition to this Punjab Agro Industries Corporation in collaboration with Natural Honey Bee Products Ltd., is also providing loans through the banks to the farmers for bee keeping.
• Floriculture The state Government of Punjab has given a tremendous boast to floriculture. It has provided nearly 30 lacs gladiolus bulbs to the farmers in the state. Floriculture centres have been set up in Punjab with financial assistance from the central government to train the farmers. To propagate new gladiolus varieties a floriculture centre is being set up at village Majra, near Chandigarh.Punjab Agro Industries Corporation (PAIC) has set up a floriculture project in joint sector near Lalru under the name and style of M/s Punjab Blossoms Ltd with a capital outlay of Rs. 303 lacs. Another floriculture project has come in public sector under the name Toubro Industries Limited near Dappar, District Patiala.

Biotechnology

Biotechnology in agriculture refers to the techniques that allow scientists to modify DNA, the genetic material of crop plants and livestock, to enhance their tolerance to pests and diseases, increase yield and improve quality and nutritional value. It has a wide range of possible applications in agriculture and food.

The Punjab Government has set up seventeen member Biotechnology Council, besides seeking to involve top experts to facilitate the quick transfer of biotechnology for the immediate benefit of the farm sector. The state government has already approved an integrated approach for the practical application of biotechnology in agriculture by bringing together the farmer and industry.

The state now proposes to set up an institute for excellence in biotechnology with the support of the Department of Biotechnology of the Union Government by coordinating research activities in various institutions, including Punjab Agricultural University, Guru Nanak Dev University, Punjab University and the Institute of Microbial Technology.

The biotechnology benefits to agriculture include:

• Improving crop yield by developing genetically improved plants (GIPs).
• Less chemical usage on crops
• Improved food quality
• Environment friendly due to less use of pesticides and more of herbicides.
• Green-manuring (ploughing live plant material into soil for improving the physical structure as well as fertility of the soil).
• Agro forestry (using trees on farms which helps in availability of many products such as timber, fodder, fuel wood, medicines and oils and also helps to conserve soil, enhance soil fertility, and provide shelterbelts for crops and fruit trees).

New schemes of extension reforms:

• Mass media support to agriculture extension.
• Agri-clinics / agri-business centres.
• Establishment of kissan call centre.
• Private - Public Partnership (PP) in agriculture extension management.

Textiles

The textile industry in India occupies a significant position in the economy, as it is one of the oldest industry to come into existence. The Textile industry also forms an important part of the Punjab economy as it adds about 19% to the total industrial production, and contributes nearly 38% of the total exports from Punjab thereby adding foreign exchange to the economy.

It is the only industry that is complete and self-reliant in value addition i.e from raw material to the highest value-added products-garments/made ups. Thus, the growth and development of textile industry has a significant bearing on the overall development of the Indian economy.

The textile industry employs near about 60% of the total industrial employment in the state of Punjab, becoming the single largest employment Provider. The textile industry requires specific human skills, even though it has a high level of mechanisation, the chances of machine replacing the humans is minimum. This industry helps in the upliftment of the lower sections of the society / semi-literates where the incident of unemployment is high. More importantly it employs more women than any other industry in Punjab. Any boost to the textile industry in Punjab will help in raising the employment levels in the state.

With the elimination of quota regime under Multi-Fibre Arrangement (MFA) and implementation of World Trade Organization (WTO) agreement on textile and clothing, the potential for global trade in textile has increased. There is a now greater export opportunity and at the same time making the domestic industry permeable to higher imports. To maintain a competitive edge in the international market, the industry has to improve its efficiency and productivity. At present, with an end to quota regime, the major importers of textiles, USA and European Union (EU) are looking forward to Indian textile industry to meet their textile requirements.

Information Technology

The information technology has gained a global recognition as an important medium of development in the new era. India has also recognized this need and embraced Information Technology (IT) as the principal engine of rapid growth. The Government of Punjab is committed to install IT as an effective tool for catalyzing accelerated efficient governance, human resource development and economic growth. In India's resolve to become an IT superpower, Punjab ensures to become an equal and leading partner.

Government of Punjab has a clear vision to use the Information technology towards accelerated overall development of a knowledge rich society. The benefits of information technology is being viewed as of vital importance by the state because of two main reasons:

• Firstly, Information Technology will be used to reduce the cost of governance and improve overall efficiency and effectiveness of the government machinery and to enable the government to dramatically re-engineer and improve its processes and service delivery systems for the benefit of common public.
• Secondly, Information Technology can dramatically help improve the economy of Punjab, generating more jobs and export revenues and thus enhance the overall quality of life of people.

IT and Internet have established a Global Digital Networked Economy. Government of Punjab has also fully recognized the fact that it needs to invest in education, Infrastructure and IT to be a leader in this economy.

The government of Punjab has identified three ways in which the State can increase employment and boost economic growth in Punjab by using IT:

• By increased organizational efficiency of the Government.
  
• By building a successful domestic Information Technology & knowledge based Industry and business.
  
• By producing globally competitive IT enabled human resources for self-employment as well as job employment within and outside the state and the Country.

Tourism

In Punjab, both domestic and international tourism provides huge opportunities of development to the state in short-term as well as on a long-term basis and generates sizeable revenue to meet the necessary requirements of state. Popularity of Punjab tourism can be witnessed by the fact that the internationally renowned Golden temple in Amritsar has been recommended to UNESCO by tourists for world heritage monument status.

In Punjab tourism is primarily religious and tourists from all over the world visit Punjab mainly on a religious trip. There are large numbers of Gurudwaras including three principal Takhts of Sikhs in Punjab. Moreover, there are many important Hindu Temples such as the Ram Tirath, Durgiana Mandir, Kali Devi Mandir at Patiala, which have a history behind them. Punjab also has certain important Muslim religious places like Rauza Sharif in Sirhind, which is considered, next to Mecca. Other important mosques are Jamma Masjid Jalandhar, Moorish Mosque Kapurthala, Chilla Baba Sheikh Farid Faridkot etc.Two major tourism destinations of Punjab are Amritsar and Anandpur Sahib.

The Government of Punjab has been taking several initiatives to promote investments in the tourism sector. These include:

• The state abounds with some of the best forts and palaces. The Government is encouraging the preservation, conservation and upkeep of such heritage properties and selectively open some of them for being developed into Hotels/Tourist Complex.
  
• The state encourages private investments in developing ancient buildings and heritage properties as tourist resorts.
  
• The properties owned by the state government may be offered on easy terms to private entrepreneurs for conversion into hotels on a case-to-case basis.
  
• Corporate sector is invited to join hands with the government in conservation of historical heritage and monuments in the state.
  
• The government is working towards improvement in infrastructure facilities at tourist attractions.
  
• Private sector is encouraged to set up hotels/restaurants/ lodging facilities at religious centres.

Leading Business Locations

Ludhiana	Bicycle, Bicycle Components Hosiery Goods, Sewing machine & parts of Machine Tools. Jalandhar Agricultural products, textiles, leather goods, wood products& sporting goods.
Phagwara	Cloth and sugar mills.
Goraya	Fodder chopping machines, harvesting combines and axles.
Kartarpur	Furniture
Pathankot	An important link city for going to Jammu and Kashmir, Dalhousie, Chamba, Kangra and the deep Himalayas
Patiala	Embroidered golden and silver Punjabi shoes, match dresses, silver and gold embroidered "naalas" (or pyjama strings) parandhas (women weave them at the end of their plaits or braids)
Rajpura	Cables,tyres and a whole range of agro-products
Nabha	manufacturing unit of the famous Horlicks Company
Bhatinda	One of the biggest cotton producing regions of India, a big thermal power plant and fertilizer factory. A big oil Refinery is also coming up in the district.

Internationally Renowned Indian Companies Working In Punjab

Ranbaxy	Medicines
Hero Cycles, Avon Cycles	Cycles
Punjab Tractor Ltd	Swaraj Tractors and Combine Harvester
Oswal Woolen Mills	Monte Carlo, Casablanca
Oswal Knit India Ltd.	Pringle
JCT Textiles, DCM	Ctv Picture Tube, Steel rope, Castings
Birla_VXL (OCM)	Woolen fabric
JIL	Maltova, Viva, range of wines and liquor
Gujarat Ambuja	Cement

Major Multinational Corporations Operating in Punjab

• Nestle
• Hitachi
• SmithKline Beecham
• Fujitsu
• PepsiCo
• OKI of Japan
• GEC, USA
• Kenwood
• Olivetti, Italy
• Motorola
• Nippon
• ICI

Investment Incentives

Investment Incentives in the Agro & Food Processing Industry

• For agriculture commodities other than wheat and paddy no market fees shall be levied on purchases made by agro and food processing units.
• Similarly for commodities other than wheat and paddy purchased by food and agro processing units, no rural output tax shall be charged.
• All processing units will be allowed to purchase agricultural products directly from the farmers and necessary exemption for this purpose will be given to them under the Punjab APMC Act.
• Sales tax on packaging material will be reduced to minimum floor level.
• Sales tax on ISI mark pumps and motors will be reduced to the minimum floor level.
• There will be no restriction on any dealer for stocking / movement of food grains, sugar and edible oils in view of Removal of Licensing Requirements Stock Limit and Movement Restrictions on Specified Food Stuffs Order, 2002.
• For agro and food processing units (other than those processing wheat and paddy) input tax credit in respect of sales or purchase tax paid, as envisaged under the proposed VAT regime, will be allowed provided the finished products are taxable under the local tax act or under the CST act. This input tax credit shall be allowed at the rate of tax on inputs or the rate of tax on output, whichever is lower. In respect of wheat, paddy / rice industry, this Input tax credit will only be allowed to those agro and food processing units which have a fixed capital investment of at least US$ 10.8152 million.

Investment Incentives in the Information Technology Sector

Single Window Service

• All Knowledge ,IT/ITES Parks, estates, complexes that are set up by Punjab Information and communication Technology Corporation Limited or in its joint ventures would be facilitated through a Single Window Service to assist the entrepreneurs / investors.
  
• These units will also be provided with a single window service to assist entrepreneurs / investors to get statutory clearances for setting up units.
  

Tax / local tax Rationalization and benefits

• Sales Tax on IT and BT products would be maintained on the minimum floor rates as announced by the Govt of India . No turnover tax,additional sales tax, surcharge or any other additional levy related to sales tax, shall be applicable to IT and BT products and services.
  
• No restrictions on the movement of capital equipment including IT, ITES, Electronics and Biotech equipment, hardware peripherals, captive power generating sets, UPS sets and telephone exchanges.
  

Rationalisation of Octroi

No octroi will be charged on the IT, ITES, Electronics and Biotech items including hardware, software, components, PCB's, populated PCBs and mechanical items relating to IT and ITES and electronics, which are being brought into the Industrial Areas/ Industrial Focal Points/ IT parks / complex,

Locational benefits

Software, Electronics and bio-informatics industry which require electrical power up to 10 KVA will be permitted to be established without any location restrictions and will be eligible for all incentives and concessions. This is subject to certain norms to be notified by Punjab Information and communication Technology

Benefits in respect of electric power

Power at the industrial tariff rate and other incentives and concessions will be applicable to IT, ITES, Electronics and Biotech industry including those in the urban areas.

Exemption from Electricity Duty

All IT, ITES, Electronics and Biotech units located in the State of Punjab are exempted from payment of electricity duty for a period of 5 years from the date of release of electricity connection.

No power cuts or restrictions of peak load hours

All IT, ITES, Electronics and Biotech units located in the State of Punjab are exempted from the purview of statutory power cuts.

Facilitation Services:

• All IT, ITES, Electronics and Biotech units are exempted from obtaining NOC/ consent from the Punjab Pollution Control Board (PPCB) provided that where the number of workers in such industry is more than 300 and there exists no sewerage facility, no exemption shall be available. Even the hardware industries, except for those having electroplating, heat treatment and painting process, are exempted from obtaining NOC/ consent of Punjab Pollution Control Board (PPCB) provided that where the number of workers in such industry is more than 300 and there exists no sewerage facility, no exemption shall be available.
  
• All IT, ITES, Electronics and Biotech units are allowed to self-certify the full observance of the provisions of law in respect of the following Acts and Rules instead of the statutory inspections/ verification reports by the concerned Departments in respect of the acts laid down by law.
  

Three shifts operation

General permission has been granted to all IT Software Industry and IT Enabled Service Industry and electronics industry as well as the Biotech Industry to operate in three shifts and also employ the ladies staff on such jobs subject to the conditions notified.

Infrastructure incentives and facilitations

Land / office space offered to IT, ITES, Electronics and Biotech units at a reasonable / discounted price worked out by the Government for each IT and BT Park subject to certain considerations.

Exemption from Stamp Duty and Registration Fee

Property transaction in connection with setting up of IT & ITES and Biotech Parks, Complexes shall be exempted from payment of stamp duty for period of three years. The maximum registration fee charged from these units shall not be more than US$ 21. 6768. There shall be no stamp duty on lease and financial instruments of units located in such notified areas during the setting up of these parks and thereafter for a period of three years. Thereafter a stamp duty of 2% would be chargeable on such transactions.

Relaxation of FSI

Government of Punjab would offer relaxation of FSI (Floor Spacing Index) in the towns to the extent of 50% for IT & ITES and BT Parks, Complexes and electronics / Biotech estates as authorized by the Department of Industries & Commerce, Government of Punjab or Punjab Information and communication Technology Corporation Limited (Punjab InfoTech)

Exemption from land and building tax

The portion of the commercial buildings which are fully dedicated to IT, ITES, Electronics and Biotech Industry will be exempted from the property tax for a period of 5 years. In case of change of use of building prior to 5 years such exemption would automatically be revoked.

Investment Incentive in the Biotechnology Sector

• Minimum floor level of Sales Tax rates.
  
• No restriction on movement of capital equipment.
  
• Rationalisation of Octroi.
  
• Power at Industrial Power Tariff.
  
• Exemption from Electricity Duty for five years.
  
• No power cuts or restrictions on peak load hours.
  
• Exemption on property transactions from Stamp Duty and Registration Fee for three years.
  
• Relaxation in Floor Spacing Index to the extent of 50%.
  
• Exemption from Land and Building Tax. The above Package of Incentives will be valid for a period of three years and subject to review thereafter.
  

Investment Opportunities

• Agriculture
  
• Dairy and Poultry based units
  
• Meat Processing
  
• Leather Industry
  
• Sports goods
  
• Textiles Hosiery and Woollens
  
• Light Engineering goods
  
• Biotechnology
  
• Electronics and Telecommunications
  
• Information Technology
  
• Automobiles
  
• Engineering industries relating to agriculture and food processing
  
• Ancillary units
  
• Chemical Industries (Including drugs and Pharmaceuticals)
  
• Export Oriented Units

Policy Framework

Industrial Policy 2003

Objectives of the Policy

The new Industrial Policy has following broad objectives:

• Create a conducive investment climate through infrastructure creation, reduced regulations and general facilitation.
  
• Rejuvenate and make competitive existing industry, particularly in the small-scale sector through improved technology, product quality and marketing.
  
• Create a special thrust in the areas where Punjab has an edge in terms of cost and competitiveness

Main Planks of the Industrial Policy

• Hassle free dealing with government.
  
• Power sector reforms.
  
• One time settlement scheme.
  
• Industry and business friendly tax administration.
  
• Enhancement of competitiveness of the existing Industry.
  
• Revival of sick Small Scale Industrial (SSI) Units.
  
• Redefining role of PSIDC, PFC and PSIEC.
  
• Industrial infrastructure development.
  
• Measures for attracting new investment
  
  Full text of the policy
  

Notification Textile Policy 2006

The objectives of this Policy are following:-

a). Facilitate the Textile Industry of Punjab to attain and sustain a pre-eminent global standing;
b). The Industry equips itself to withstand pressure of import penetration and maintains a dominant presence in the domestic market;
c) Facilitate cluster formulation to promote collective efficiency of textile units by improving their business processes and support systems.

To achieve above objectives, the policy intends to work on following thrust areas

a) Technology up-gradation;
b) Enhancement of productivity;
c) Quality consciousness;
d) Cluster development;
e) Strengthening of raw-material base;
f) Integrated human resource development; and
g) Special benefits to Textile Industry.

Full text of the policy

IT Policy

Objectives of the Policy

• Improve the overall economy of Punjab by generating more jobs,
  as well as domestic and export revenues and ensuring even spread
  of such benefits to one and all.
• Creation of high value Employment potential through Human
  resource development in IT and related areas along with the IT
  industry and business.
• Make Punjab a favoured industry destination for attracting investment from outside the state by facilitating the creation of world class infrastructure, institutional framework and an enabling environment
• Provide citizen-centered Governance, which is efficient, low cost effective, transparent, friendly, affordable, convenient and ensures full accountability of employees. The government would empower Citizen through deployment of IT and e-governance.
• Make the State of Punjab globally competitive in the new Globalized, Privatized and Liberalized economy and Changing business environment of the new millennium.
• Turn the state into a smart & intelligent state and a knowledge society through IT education and e-Governance by promoting knowledge as the key resource for economic progress of individuals & institutions.

Full text of the policy

Tourism Policy 2003

Objectives of the Policy

• To promote Tourism in the state of Punjab in such a way that it will contribute to the generation of employment, economic growth and particularly bringing the tourist closer to the culture of Punjab.
  
• To develop places of interest in Punjab as tourist destinations. Patiala and kapurthala will be developed for culture and heritage, while Anandpur Sahib and Amritsar as religious centres.
  
• To promote private sector participation in the development of tourism with Government facilitation to develop necessary infrastructure in the state.
  
• To position Punjab on the Tourist Map of India for tapping the untapped potential of various heritage monuments in Punjab.
  
• To implement Tourist Master Plan prepared by government of India for development of sustainable tourism.
  
• To provide quality service to all domestic and international tourists.
  
• To diversify and expand marketing of Tourist potential of the state along with preserving the cultural monuments against any kind of decay.
  
• To encourage people's participation through tourism promotion to provide economic benefits to the people through such participation. And to encourage involvement of NGOs like INTACH and other heritage societies by providing them support, assistance and making use of their expertise for development of tourism.

Key strategies of this policy

• Government will act as a facilitator/catalyst by providing support infrastructure facilities such as wayside amenities, tourist information centres, facility for holding/managing craft melas, transportation services and a platform for managing a calendar of events.
  
• To provide basic infrastructure viz. roads, aviation services, rail, water services through joint government - private sector initiative.
  
• To involve private sector in strengthening/up-gradation of museums, heritage and cultural sites in the state of Punjab.
  
• To manage and implement the tourism master plan.
  
• Restoration of monuments, ancient palaces, forts and introduction of a heritage holiday scheme.
  
• Utilizing the services of consultants in planning and execution of 20 years perspective plan for development of sustainable tourism in Punjab.
  
• Awareness campaign for the public to create a favourable ambience and affinity toward Tourism.
  
• Efforts will be made to coordinate preservation, conservation and upkeep of old buildings with all departments including ASI, Waqf Board, Municipal Corporation etc. Revival of traditional buildings and art would also be supported.
  
  Full text of the policy

Useful Web links

• Government of Punjab
• Department of Industries
• Punjab - Government department
• Punjab - Dept of Information Technology