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The
Industrial Policy 2003 notified by the Punjab Govt. recognizes agro-base
industry as a thrust area and provides a special package of incentives.
- Special
package of Incentives for development of new/expansion of agri mega projects
having fixed Capital investment of Rs. 25 crores and above. PAIC provides
secretarial support to the Govt.All applications in this regard may be
submitted to PAIC, Projects Division.
- For
development of border area, state government will provide capital subsidy 30%
of the fixed capital Investment upto maximum of Rs. 30 lacs per unit to New
Small Scale Industrial Units except those in negative list.
State
Govt. will facilitate development and growth of Sugar Industry by:
1. Automatic clearance for
manufacture of ethanol.
2. Automatic clearance for setting
up of distilleries.
3. Co-generation of Electricity
will be allowed in Sugar Industry, Willing of surplus power so generated will
also be allowed to other Industries/PSEB.
DEFINITION
OF AGRO & FOOD PROCESSING INDUSTRY
For the purpose of this
policy, Agro-Food Processing Industries would mean an activity involved in
the production of value added/high end products from primary
agricultural/horticultural crops including floriculture & vegetables and
their residues available in the state. It will also include cultivation of
processing/superior quality and high yielding varieties of all kinds of crop
and their post harvest operations such as cleaning, grading, packaging,
storage, transportation, marketing etc. The extent of value addition should
be at least 50% of the basic value. However, this will not include rice,
pulse and cereal mills, decorticating, expelling, crushing, roasting and
frying of oil seeds, preparing of bread other than by mechanized bakery,
refining and hydrogenation of edible oils, including manufacture of
Vanaspati. It will further include the non-molasses based alcohol plants
INCENTIVES
- 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 unit,
no Rural output tax shall be charged.
- As regards wheat, the
concessions regarding market fee given in the department of agriculture
notification No. G.S.R. 96/P.A.23/61/S.43/Amd.(58)/2001, dated
11.09.2001 shall be retained.
- 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
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 Rs.50.00 crore.
NEGATIVE
LIST OF INDUSTRIES
- Rice, Pulse and Cereal
Mills.
- Mere Bottling of Aerated
Waters, Soft Drinks and Alcoholic Drinks.
- Decorating, Expelling,
Crushing, Roasting and Frying of Oil Seeds.
- Wire Drawing of steel and
Stainless Steel and Bright Bars Manufacturing.
- Bricks and Brick Tiles,
excluding Ceramics, Vitreous and PVC Tiles.
- Conduit Pipes and manually
welded furniture, expect ERW and Seamless Pipes.
- Lime Kiln.
- Stone Crushers.
- Bus/Truck Body and Cargo
Boxes Manufacturing.
- Refining and hydrogenation
of edible oils, including manufacture of Vanaspati.
- Distilleries &
Breweries.
- Tobacco & Gutka.
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