Section 8

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Additional/Joint/Deputy Director ( Technical Branch) Member-Secretary 16.20.5 Procedure i The unit shall apply in the proscribed format Y on the web portal along with required documents. The State Level Scrutiny Committee after proper screening is to select eligible MSME in order of merit for the consideration of the State Award Selection Committee. ii The certification under ZED scheme shall be given a significant weightage in the evaluation criteria. iii The Awardees should not be considered for the same Award in the subsequent 5 year(s). 139 iv State Award Selection Committee before approving the names for State Awards would institute such inquiries as may be necessary that the entrepreneur has been abiding by all statutory requirements in vogue, is maintaining the proper documentation and is also not involved in any economic/other offence for which enquiry/legal action is pending. The MSE status of the enterprise for the Award year be specifically verified and certified keeping in view the investment limit permissible in Plant & Machinery as also other norms in vogue and in accordance with the provisions contained in the Micro, Small and Medium Enterprises Development (MSMED) Act. 2006. v A Committee consisting of the GM, DIC and In-charge of the Quality marking centre in the respective district shall visit the MSE to verify the information furnished in the application form including details of technology, performance, quality, MSE status, growth rate/trend etc. and prepare a report for consideration of SASC. vi SASC will select the awardees on the basis of merit and its decision will be final. 140 Chapter 17: Non-Fiscal Incentives 17.1. General Provision The State would issue separate notifications in line with the provisions of the policy regarding various non-fiscal incentives. The notification would inter-alia lay down in detail, eligibility criteria, terms and conditions, amongst other relevant modalities for availing the incentives. In case of any conflict or contradiction in the provisions contained in the policy and notification issued in this regard, the provisions of notification shall prevail for all intent and purposes. The Concerned Department while issuing relevant notification will ensure that there are aligned with the provisions made under this Policy. 17.2. Department of Housing and Urban Development 17.2.1. Exemption from the Provisions of PAPRA All Industrial Parks including Textile, Food, IT, Electronics etc. approved by the State or Central Government exempted under the IBDP 2017 shall continue to be exempted from the provisions of Punjab Apartment and Property Regulation Act (PAPRA) 1995, in accordance with the powers vested with the State Government under Section 44 of the Act subject to condition the conditions that Section 5(11), Section 32, and Section 36 to 39 shall remain applicable. 17.2.2. Logistic Park in sector 102 SAS Nagar Proposed Transport Nagar in SAS Nagar shall be developed as state of the Art Logistic Park. 17.2.3. Relaxation in Building Bye Laws: - The Building Bye-laws including ECS, Parking, Ground Coverage and FAR shall be liberalized for Garment/Hosiery Industry, Sports Goods Industry 17.2.4. IT/ITES/Knowledge Parks 17.2.4.1. Minimum area required for plotted Park will be 10 acre subject to provisions of the relevant Master Plan. The Park will be allowed maximum of 10% commercial, 30% residential component and remaining 60% for IT/ITES/Knowledge Industry. However, the provisions of the respective Master Plan with regard to minimum area requirement shall be adhered. 17.2.4.1 To promote Green building by Industry, state will formulate separate guidelines. 17.2.5 Tourism Sector 17.2.5.1 Heritage hotels situated on narrow roads in urban areas which arrange for a dedicated alternative parking on a 40/60 feet wide road and provide for the park and ride system 141 from hotel to parking place, shall be permitted to operate. Similarly, heritage hotels situated on narrow roads in Rural and Panchayat/Rural Areas will be permitted to operate. The same shall be applicable for existing heritage buildings proposed to be used as Heritage hotels 17.2.5.2 The State will declare Old City area in prominent cities like Amritsar, Ludhiana, Jalandhar, Patiala etc. where area is not available for parking vehicles. Hotel constructions which are of 20 years or above shall be exempted from parking places. The State will provide dedicated alternative parking and park and ride system from hotel to parking place and a congestion charge can be levied on all such hotels. 17.2.6 Retail Service Industry The State will review norms for infrastructure development for Retail and work towards providing following: 17.2.6.1 The retail projects will be allowed FAR of 1:3 in the state. 17.2.6.2 The retail project will be allowed to set up the Recreation Ground (RG) area for the customers. 17.2.6.3 The retail project will be allowed larger number of car parks in retail development without FAR implications. 17.2.6.4 The restriction on building heights will be relaxed subject to air safety norms. 17.2.7 Shifting of Industries from residential areas or other non-conforming zones A large number of industrial units are currently operating in the areas earmarked for residential usage or other non-conforming zones as per approved Master Plan and they were required to shift their units within stipulated time limit from such areas. The State will encourage these units to move to the approved industrial zones/industrial estates by providing following: 17.2.7.1 The existing site will be allowed for permissible usage as per master plan without any CLU charges 17.2.7.2 Shifting of electricity connection without any additional charges. 17.2.7.3 Shifting of municipal services without any additional charges. 17.2.7.4 No CLU, EDC or License Fee on the new industrial site 17.2.7.5 After shifting to new location, type of such industry may change 17.2.8 Infrastructure in Industrial zone under the Master Plans 142 50% of the EDC Collection from Industry set up in Industrial Zone shall be utilized for development of Infrastructure like Roads, Power lines/Transformers, water, sewerage etc. A Committee under the chairman ship of PSIC shall monitor the Utlisation of EDC in these Industrial zones. 17.3 Department of Labour 17.3.1 The State will allow women employees to work in night shifts subject to the employer providing the necessary security and other requisite arrangements for its women employees. 17.3.2 The State would allow permission to the companies to have 24*7 operations to run in three shifts, subject to approved precautionary measures taken to ensure the safety of employees, particularly women. 17.3.3 In order to promote the retail industry in Punjab, and generate employment opportunities for local youth, the State will provide following relaxation: 17.3.3.1 Retail enterprises shall be allowed to stay open 365 days a year provided employees are given compulsory weekly offs without any deduction of benefits 17.3.3.2 Retail enterprises and warehouses shall be allowed to stay open 24*7 in 3 shifts 17.3.3.3 Women employees shall be allowed to work in night shifts till 11 pm provided the employer provides necessary security and arranges to ensure women employees reach home safe. 17.4 Department of Transport The State would grant exemption from motor vehicle tax on buses plied by the Industry for its employees. 17.5 Department of Food and Civil Supplies In order to promote retail service industry in the State, the following will be provided: 17.5.1 Food and Grocery business retail (only perishable goods) operating in Punjab shall be included under “Essential Services”. 17.5.2 Stocking limits for essential commodities under Essential Commodities Act will be reviewed for retail enterprises. 17.5.3 To Boost export, certified star rated export house shall be included under Essential Services. 17.6 Department of Industries & Commerce/Punjab Small Industries & Export Corporation 143 17.6.1 The services given by PSIEC to the allottees shall be made online with notified timelines for each service including verification of Commercial Production through GM, DIC. 17.6.2 Under the EoDB initiatives, the powers exercised by PSIEC for estate management shall be delegated to GM, DICs for estate related work wherever feasible. 144 Chapter 18: Stakeholder Engagement and Policy Implementation Unit 18.1. Stakeholder Engagement 18.1.1. 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. Following are the key Stakeholders in the implementation of the Policy: (i) Various State Government Departments (ii) Various Central Government Departments (iii) Key Industry leaders from the State and outside (iv) Industry Associations at National, State and District level (v) Private Sector Players in Infrastructure, Skills, Research, Technology etc. (vi) Reputed Government or other Institutions in any area of Industrial Development (vii) Academic Institutions (viii) Development Agencies (ix) Civil Society 18.1.2. The State will involve various stakeholders in the roll out and implementation of the policy in the following manner: (i) Updating all the stakeholders about the policy provisions, operational guidelines and amendments from time to time (ii) Updating all the stakeholders about the progress on implementation (iii) Involve key stakeholders in the apex review and monitoring mechanism (iv) Involve key stakeholders at the district in the district level review and monitoring mechanism (v) Specific Partnerships on various initiatives and events (vi) Specific Partnerships on projects 18.1.3 The State will prepare a detailed Stakeholder engagement plan identifying the key stakeholders and their involvement in achieving the objectives of the policy. 145 18.2 Strategic Plan and Performance Indicators The State has prepared a strategic plan and performance indicators in line with the vision, mission and goals of the Policy. The Plan and performance indicators will be finalized within three months of notification of the policy and will be duly notified. The plan will create a baseline for measurement of performance for the implementation of the Policy. 18.3 Policy Implementation Unit The State realizes the importance of effective implementation of this policy, and therefore, has setup a Policy Implementation Unit (PIU) vide Notification no. 1503 dated 13.11.2017 cutting across all the strategic pillars and sector specific activities. The key activities of PIU shall be: i. To create awareness about the policy amongst the stakeholders ii. To prepare a detailed policy implementation plan with clearly defined timelines and responsibilities for each of the strategic pillar: a. Infrastructure b. Power c. MSME d. Startup and Entrepreneurship e. Skill Development f. Ease of Doing Business g. Fiscal and Non-Fiscal Incentives h. Stakeholder Engagement iii. To prepare a detailed policy implementation plan with clearly defined timelines and responsibilities for sector specific strategies for various manufacturing and service industry sectors. iv. To prepare a detailed policy implementation plan with clearly defined timelines and responsibilities for availing assistance under various Central Government schemes for infrastructure as well unit level assistance from various Ministries such as MSME, DIPP, MEITY, MoFPI etc. 146 v. To assist the State in restructuring institutional support for the implementation of the policy and build capacity of the institutions for investment promotion and industrial development. vi. To prepare concept note, pre-feasibility and other relevant reports for implementation of the policy. vii. To assist the State in selection of various project specific agencies for implementation, wherever required. viii. To assist in weekly, monthly, quarterly and yearly review of the implementation of the policy as per the governance mechanism ix. Develop a comprehensive dashboard to track policy implementation x. To assist in review of various policy areas in view of the best practices at national and international level. xi. To carry out impact analysis of the Policy on economic growth, job creation and other important economic indicators in order to maximise results of public investments of Govt. of Punjab for industrial and business development in the State and make forecasts for resources required. 18.3.2 The PIU will be strengthened under the aegis of the Department of Industries and Commerce and will be supported by Knowledge Partners, Experts and Professional Consultants as may be required for smooth implementation of the Policy. 18.4 Governance Mechanism for Implementation of the Policy 18.4.1 Punjab Industrial and Business Development Board i The State has constituted vide notification no. 1483 dated 13.11.2017, the Punjab Industrial and Business Development Board under the Chairmanship of Chief Minister and comprising of other Ministers, Chief Secretary and Administrative Secretaries of relevant departments under IBDP 2017 and same shall continue for this Policy too. ii The Board has been empowered to take all the necessary decisions for the smooth implementation of the policy including but not limited a To interpret and relax any provision of the Policy b To frame, amend, relax, interpret any guidelines or schemes under the Policy c To review the progress of initiatives under various strategic pillars of the Policy namely Infrastructure, Power, MSME, Startup, Skill Development, Ease of Doing Business, Fiscal and non-Fiscal incentives by different departments and agencies 147 and give suitable directions towards achieving the vision, mission, goals and objectives envisaged in the policy. d To review various measures for enhancing ease of doing business in the State and particularly ensure setting up of Business First portal for providing online services to the businesses in the State and issue necessary directions to the departments and agencies. e To review the performance of departments and agencies in availing and utilising grants from Central Government under various schemes and programs and resolve difficulties, if any. f Approval and sanction, on behalf of the Government, of any fiscal incentives or other benefits to an investment proposal or project, falling outside the policies of the Government of Punjab by way of amendment of, addition to, exception to such policy; including relaxation of rules and regulations and provisions of legal, institutional and financial dispensation, as may be the case. g No formal examination of proposals put up to the Board will be necessary either in the Administrative Department or in the Finance Department and decisions of the Board would be conveyed to the concerned department. h All decisions taken by the Board shall be considered directives of the government. i Without prejudice to the above, to generally take up any other issue related with industrial development and economic growth of the State and issue necessary guidelines and directions. iii The Board will further have a committee on “Revival of Industry and Fiscal Incentives” under the Chairman of the Board and comprising of such other members as may be notified in this regard to consider and approve proposals for revival of industry and fiscal incentives as may be required to be approved by the Board. 18.4.2 Executive Committee i The State has constituted vide notification no. 1498 dated 13.11.2017, an Executive Committee under the Chairmanship of Chief Secretary and comprising of relevant Administrative Secretaries under IBDP 2017 and same shall continue for this Policy too. ii The Executive Committee discharge the following functions: a To review the progress of implementation of the policy and follow up on the decisions taken by the Board b To review and resolve the inter-departmental issues 148 c To review the progress of various initiatives for Ease of Doing Business d To review the progress of issues pending with Central Government and utilization of funds under various schemes of Central Government and resolving issues if any. e To discharge any other function or power, which may be assigned by the Board 18.4.3 Sectoral Committees i Sectoral Committees under Administrative Secretary, Industries & Commerce and comprising of concerned HODs/Heads of relevant implementing/Executing agencies have been notified vide no. 1493 dated 13.11.2017 under IBDP-2017 and same shall continue for this policy. ii The Sectoral Committees will review and follow up on the decisions of Implementation Council and Steering Committee and resolve operational problems in the implementation of the Policy: a Infrastructure & Power b MSMEs, Startup & Skills c Ease of Doing Business, Fiscal and non-Fiscal incentives d Sectoral roadmaps for manufacturing and service sector 18.4.4 The PIU will support these committees in proper review, issue resolution and expeditious implementation of the policy. 149 Annexure - A Net GST formula in accordance with Clause No. 12.26 a) Definition: Net SGST to be considered for Reimbursement means that the eligible unit will be entitled to get reimbursement of SGST amount paid through cash ledger against the output liability of SGST on sale of eligible products. The eligible unit shall first have to utilize all the eligible ITC available in its Credit Ledger maintained on the common portal, including eligible ITC of IGST as provided under Section 49 of the Punjab Goods & Services Tax Act, 2017 as may be amended from time to time, before adjusting the SGST amount through Cash Ledger. b) The quantum of ‘net SGST’ shall be computed as under: - If A= (Net CGST +Net SGST) 2 1) If GST rate is up to 10% Incentive amount=100% of A 2) If GST rate is more than 10% and up to 15% Incentive amount= 75% of A 3) If GST rate is more than 15 % and up to 20% Incentive amount = 50% of A 4) If GST rate is more than 20% Incentive amount= 25% of A Provided that A) In the case of a unit with multiple outputs having more than one GST rate the incentive amount as above shall be calculated pro rata to the respective sales (value as defined in GST law) of eligible outputs; and B) if the amount calculated as above is less than 2.5% of the FCI in any particular year the unit will be entitled to get such difference as the additional amount of incentive subject to the fact that it has been able to achieve sales of three times of the FCI. For example if the GST incentive for a unit with FCI worth Rs 100 cr and sales of Rs 310 cr in a FY comes to Rs 1 crore in a FY, the unit shall be able to get an additional amount of Rs 1.5 cr as incentive. The unit operating for a part of the year in the year of commencement of business or in the terminal year of the incentive period will get the amount on pro rata basis with the requirement of sales being three times of FCI also applying on a pro rata basis. Provided, for 150 anchor units engaged in manufacturing of Food Products (Division 10 of National Industrial Classification 2008 in terms of Clause 3.1.1 of Detailed Schemes & Operational Guidelines-2018) except paddy/rice processing units, the aforesaid incentive shall be available if it has been able to achieve sales (including Inter-state Supply on which GST has been paid) of one time of the FCI for the units having a FCI of upto 200 Crore and of 0.5 time of the FCI for the units having a FCI of more than Rs. 200 Crore subject to minimum turnover of Rs. 200 Crores. For example; (i). if the GST incentive for a anchor unit engaged in manufacturing of Food Products (Division 10 of National Industrial Classification 2008 in terms of Clause 3.1.1 of Detailed Schemes & Operational Guidelines-2018) except for Paddy / Rice processing unit with FCI worth Rs. 200 crore and sales of Rs. 210 crore in a FY comes to Rs. 2 crore in a FY, the unit shall be able to get an additional amount of Rs. 3 crore as incentive. (ii). if the GST incentive for a anchor unit engaged in manufacturing of Food Products (Division 10 of National Industrial Classification 2008 in terms of Clause 3.1.1 of Detailed Schemes & Operational Guidelines-2018) except for Paddy / Rice processing unit with FCI worth Rs. 300 crore and sales of Rs. 150 crore (0.5 times of Rs.300 crore but less than minimum turnover of Rs.200 crore) in a FY comes to Rs. 3 crore then the unit will not be able to get any additional incentive of Rs. 4.5 crore as incentive, however if the GST incentive for a unit with FCI worth Rs. 300 crore and sales of Rs. 200 crore in a FY comes to Rs. 3 crore then unit will get additional amount of Rs. 4.5 crore as incentive. c) Overall quantum and/or period for claim of incentives shall remain same as defined in Chapter – 12 of IBDP-2022 (as amended from time to time) for the respective category. Availing of incentives up to the overall ceiling i.e. 200%/ 125% / 100% of FCI, as applicable shall depend upon the capacity utilization of the unit during the eligibility period. d) Separate registration by eligible unit under GST: Eligible unit shall have to obtain a separate registration under GST Act for manufacturing of eligible products only. The 151 eligible unit shall not carry out any trading activity or any services not relating to eligible products from its place of business. The eligible unit shall have to obtain a separate registration, if the unit carries out trading activity or any services not relating to eligible products. e) Where the eligible unit engages in trading activity or any services relating to eligible products, it shall be liable to maintain separate accounts/records for trading for services related to eligible products. f) Beyond the above formulation, following terms and conditions shall be applicable: - a) In case of Units which have opted for Composition Levy Us 10 of the Punjab GST Act 2017, the incentives shall be the amount paid by such Unit to the State, as per the returns filed by the Unit. b) The incentive shall exclude any refunds entitled to be obtained by the taxpayer for any reason including on exports, or deemed exports. c) The incentive shall not apply to Tax liable to be revised on account of any credit note issued to the recipient (buyer). d) The incentive shall not apply to any tax that may become payable due to any show-cause notice issued by the department on grounds of collusion, fraud, misrepresentation and other similar grounds mentioned in the GST law requiring penal action. e) The incentive shall not be given in respect of any tax credits which the tax payer has failed to avail on any grounds whatsoever (like late filing of prescribed return or the fraudulent conduct of his supplier etc.) f) The amount of input tax credit available in the electronic credit ledger of the registered person on account of integrated tax shall first be utilized towards payment of integrated tax and the amount remaining, if any, shall be utilized equally towards the payment of Central tax and State tax. g) The utilization of ITC shall be regulated on the following lines: - The amount of input tax credit available in the electronic credit ledger of the registered person on account of- 152