The Aam Aadmi Party (AAP) authorities on Friday unveiled its draft industrial policy-2022, including new thrust areas and contemporary fiscal incentives for micro, small, medium enterprises (MSMEs), incubators and startups whereas proposing a rise in energy tariff.

The Draft Punjab Industrial and Business Development Policy-2022 formulated by the industries and commerce division after detailed deliberations and session with entrepreneurs and industrial associations from the state, has been shared with business and put in public area for feedback and suggestions of stakeholders to make it extra business and investor-friendly.

The 133-page coverage doc was made public the day the state authorities introduced that chief minister Bhagwant Mann would embark on an eight-day tour to Germany from September 11 to woo buyers to the state. “This is the first time comments are being invited from the industry on the proposed policy. The stakeholders can give their suggestions within 15 days,” stated director, industries and start, Sibin C.

3% annual hike proposed in energy tariff

In the draft coverage, the state authorities has proposed to offer energy to business at a variable tariff of 5.50 per KV for 5 years with an annual improve of three per cent. “There shall be no increase in the existing fixed tariff. This variable tariff will be reduced during non-peak night hours. This tariff will be applicable to all manufacturing units,” it reads. The state has a two-part tariff – mounted and variable. In the 2017 industrial coverage, the variable tariff was frozen at 5 per KV for 5 years. The current coverage is ready to lapse subsequent month.

New belief sectors added to propel progress

Auto, auto elements, electrical autos, textiles, together with attire and made-ups and technical textiles, sports activities items together with health tools, hand instruments, agricultural equipment and tools, machine instruments and paper-based packaging items have, together with round financial system items engaged in shredding of auto autos and auto components, manufacturing of bio-diesel and waste administration resulting in usable product, has been added as new thrust areas for extra incentives.

The merchandise recognized by the state authorities underneath the ‘One District One Product” Scheme will also be categorized as thrust sector in their respective districts and qualify for additional benefits, including better access to finance, infrastructure, technology and market.

For MSMEs, the draft policy has proposed 50% of fixed capital investment subject to ceiling of 50 lakh per unit, interest subsidy at 5% subject to maximum of 5 lakh per year for five years and 25% of the cost of public issue expenses (access to finance), 100% exemption from electricity duty for 7 years (access to infrastructure), 75% of cost of ERP software subject to maximum of 5 lakh for first 5,000 units, 75% reimbursement of expenses incurred for energy, water and safety audit (access to technology), reimbursement of 50% of the cost of onboarding on e-commerce platform (access to market) etc. Scale-up funding and stamp duty reimbursement have been proposed for startups and incubators. The policy also includes additional fiscal incentives for industrial parks (minimum of 25 acres), mega (investment between 1,500 and 2500 crore) and ultra-mega (above) 2,500 crore) tasks.