Punjab Newspaper

Focus on making Punjab the Food Processing State
“The focus of the new industrial policy would be to adopt such measures as would give the much needed impetus to Punjab economy”, said Sh Shri S S Channy, IAS, Principal Secretary, Department of Industries & Commerce, Government of Punjab.


He was speaking at an interactive session regarding the New Industrial Policy of Punjab organized with PHD Chamber members to seek inputs on the draft industrial policy to make it proactive and industry friendly. Other Govt officials of Punjab Government including Sh V K Janjua, Director, Industries, Sh R K Verma, MD, Infotech, Sh SS Rajput, MD, PSIEC, and Sh V N Mathur, Chief coordinator, Udhyog Sahayak were also present there.
“The new Industrial Policy of the state should be proactive to minimize the adverse consequences of global economic slow down and promote industrial growth above the 11th plan target of 8% as suggested by the Planning Commission.” said Sh Satish Bagrodia, President, PHD Chamber. He said “Focus on best of physical infrastructure coupled with discretion free and friendly state administration shall play a crucial role to determine investment decisions.”
Sh Rajiv Bali, Chairman, Punjab Committee, PHD Chamber, said an aggressive Public Private Partnership was required for better and smooth connectivity, while demanding more focal points, time bound clearances, dedicated rail freight corridor from Delhi to Amritsar, and infrastructure for exhibitions and expositions. Sh Bali stressed the need for much better infrastructure to overcome locational cost.
Sh Bali asked the government to allow land use changes to improve business activity in the state. He also called for budgetary support for Human Resource Skills Initiatives of the industry to meet the requirement of HR competence.
While laying emphasis on Human Resource Development, Sh Bali said it was another area which could pull Punjab economy from the present state. A special conscious effort to industrialise the border area districts was also underlined.
While mentioning administrative apathy and delays; perceived indifference to the needs of business; multiple clearances for business; and deep seated corruption as major impediments in recovery and growth of the Industrial Sector in Punjab, Sh Amarjit Goyal emphasised that keeping in view, the rich agricultural base of Punjab, agro based food processing industries, dairy development along with development of land banks can help the recovery and growth of the Industrial Sector in Punjab. Logistics, cold chains, distribution chains, and modern retail mechanism for food processing industry is the need of the hour. Sh Goyal said the government should review the free electricity scheme. “It is high time to unbundle PSEB to control T&D losses and thefts.” Likewise, he said, Open Access to Power should be permitted with rational wheeling charges. Reliable and good quality electricity for IT based industry is the basic need for the industry to grow. There should be some concrete provision in the New Industrial Policy of Punjab for uninterrupted power supply to the Industry of Punjab and also cross-subsidisation of power so that the Industry of the state which is already passing through a great recession, could survive.
While deliberating on the issue, Sh R S Sachdeva, Co-Chairman, Punjab Committee, PHD Chamber, said, “There is need for review of the standard package of incentives and conditions for Integrated Industrial Park projects. This policy was announced nearly a year ago and hence its impact for attracting new investments be considered.” He added that there should be exemption of Stamp Duty and registration charges for transfer of land for industrial use; exemption of Electricity Duty on the electricity charges for a period of 5 years; and State may consider allowing conversion of 50% VAT payable into interest free loan for a period of 7 years in backward areas/border areas repayable after 5 years from the date of grant of interest from loan as in Haryana (Notification issued on 27 November 2008) to ttract new investments. Also, It was requested that the Punjab Government should keep a provision in the New Industrial Policy of Punjab, for allotment of Land for Common Facility Centre (CFC) and Research and Development Centre for the Clusters on subsidized prices so that the Common Facility Centres and Research and Development Centres could be established by the cluster organizations.
Sh Sachdeva added that a fresh Modernization Scheme should be announced in the new Industrial Policy of Punjab under which Modernization Subsidy and other incentives should be provided to the SME Sector, so that the small scale units could take the benefit of the scheme. The Govt may also provide support for market development including initiatives for creation of ‘Made in Punjab’ brand by SMEs. This can be done through setting up of Exposition/ Exhibition Centres thus providing marketing support to SMEs. The New Industrial Policy of Punjab may also include in its purview, interest subsidy, venture capital assistance and Quality Certification for SMEs and industries in nascent stage in order to help them get established. Support may be provided for developing ancillary and auxiliary industries for value addition. Efforts should be made to attract auto manufacturing units to Punjab, he said.
Captains of Industry from all over Punjab participated in the interactive session.