With new industrial policy in offing, AAP in Punjab aims to attract Rs 5 lakh crore in next five years

With new industrial policy in offing, AAP in Punjab aims to attract Rs 5 lakh crore in next five years

The Rising Panjab Bureau

With an aim to attract Rs. five lakh crore of investment in next five 5 years, the Aam Aadmi Party (AAP) government in Punjab recently unveiled its draft industrial policy-2022.

Although, the target seems to be very aggressive considering the past investment in the state, however, the current government is banking on conducive environment, effective single window system, micro, small, medium enterprises (MSMEs), incubators and start-ups to achieve this target.

Secondly, the state government is of the view that since the Draft Punjab Industrial and Business Development Policy-2022 formulated after detailed deliberations and consultation with stakeholders and industrial associations from the state, so it has taken care of the main points of the industry. Further to make it more industry centric, it has shared the policy with industry and put in public domain for comments and suggestion of stakeholders to make it more investor friendly. The new policy is likely to be notified by October 17, this year.

The draft policy has provision for fiscal and non-fiscal incentives for new as well as existing units across all category of units like MSME, large, anchor, border districts, border zone, thrust sectors, private industrial parks and sick units.

Whether the state government achieve the target or not, only time will tell.  However, there are certain incentives and interventions proposed in the draft policy which might act as catalyst in attracting investment. Let’s have a look:

Affordable Power

The policy proposes 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 tariff for 5 years. This would not only benefit the new industry in Punjab, but will also help in reviving the existing industry of Punjab, which has always been the State’s pillar of strength. Industry shall be allowed to buy power from the energy exchange as per the charges fixed by the regulator.

Focus on MSMEs

MSMEs in Punjab will have dedicated divisions and requisite competencies to provide necessary assistance to MSME units in Access to Finance/Credit, Access to Technology, Access to Market, Access to Skills and other needs of the Sector. The organization will be assisted by professional agencies in delivering various services to its stakeholders.

Setting up Industrial Parks

The policy will also facilitate the development of at least 15 industrial parks in the state. It also aims to attract at least one anchor unit in various manufacturing and service industry sectors.

Study of clusters

The draft policy also envisages to carry out in-depth study of 10 clusters every year for specific interventions to increase their competitiveness. It also envisages to upgrade and set up common facility centres in five clusters every year, to upgrade and set up 10 technology centres in the State.

Boost to Start-Ups

The policy will facilitate 1000 start-ups in five years and will facilitate setting up of 10 incubation centres/ accelerators in the state particularly focusing on digital manufacturing, life sciences (biotechnology), agro & food processing and Information Technology.

Linkages with Educational Institutes

It will also help to build strong linkages with all the major educational institutions, to facilitate setting up of 50 Entrepreneurship Development Centres in colleges, to set up one Skill University in the State, to set up one Skill centre for each identified industrial cluster and to set up advance skilling centre on hi-tech manufacturing, design and IT skills for five identified sectors.

Focus on job creation

The policy aims to attract Rs 5 lakh crore of investment in five years, increase the share of secondary sector in GSDP to 30 per cent and tertiary sector to 62 per cent and increase the employability of the youth through skilling and increase employment opportunities in the state.