Punjab to form 22 sector-specific panels to draft new industrial policy
Industry and commerce minister Sanjeev Arora announced that the primary task of each committee will be to assess the current industrial climate in their respective sectors and provide recommendations for the new policy. These recommendations will include both fiscal and non-fiscal incentives, taking into account the state's unique structural and fiscal context. Each committee, headed by experts in the relevant sector, must submit their written recommendations within 45 days of the notification, Arora added.
The state government had released its 'Industrial and Business Development Policy 2022' in February 2023.
According to Arora, there will be three committees for the textile sector—spinning and weaving, apparel manufacturing, and dyeing and finishing—along with separate committees for sectors like IT, machine tools, sports and leather goods, auto components, heavy machinery, bicycles, electric vehicles (EV), renewable energy, food processing, steel and rolling mills, logistics and warehousing, tourism, pharmaceuticals, healthcare, start-ups, retail, and electronic systems design and manufacturing. Each committee will consist of 8-10 industry members and will initially operate for two years from the date of notification.
Arora also met with representatives from major industry associations across the state, where he promised policy reforms to support existing industries and attract new investments.
Finance minister Harpal Singh Cheema and Aam Aadmi Party Rajya Sabha member Vikramjit Singh Sahney were also present.
During the meeting, industry representatives expressed gratitude for the government's long-pending one-time settlement policy, which allows the resolution of industrial plot dues in focal points with an 8% interest rate. They also raised critical issues, including the urgent need to revamp focal points and industrial zones, capping high mortgage and hypothecation fees for industrial loans, reducing the GST on bicycles from 12% to 5%, rationalising wheeling charges for solar power transmission and providing dry port container facilities for rice exporters in Amritsar.
Arora assured the industry leaders that these matters would be addressed on a priority basis within a time-bound period of 45 days. Cheema also committed to raising the GST issue on bicycles at the next GST Council meeting and reviewing the discontinuation of the 2.5% fiscal incentive withdrawn in 2018.
Sahney emphasised the need for faster infrastructure development in the Rajpura Industrial Zone and invited industrialists to set up units there.
Representatives from CII, PHD Chamber of Commerce, FICO, CICU, Basmati Rice Exporters Association, United Cycle Parts Manufacturers Association, Hosiery Knitwear Association, Plywood Manufacturers Association, Dhandari Industrial Welfare Association, Dera Bassi Industries Association, and Mohali Industrial Association were present at the meeting.
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