Chandigarh, Sept 10 (KNN) The Punjab government on Friday put forward its draft industrial policy-2022 for comments and suggestions of stakeholders to make it more industry and investor-friendly.

The state government in the policy has provided fresh fiscal incentives for micro, small, medium enterprises (MSMEs), incubators and startups while proposing an increase in power tariff.

It proposes to provide power to industry at a variable tariff of Rs 5.50 per KV for five years with an annual increase 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.

For MSMEs, the draft policy has proposed 50 per cent of fixed capital investment subject to ceiling of Rs 50 lakh per unit, interest subsidy at 5 per cent subject to a maximum of Rs 5 lakh per year for five years and 25 per cent of the cost of public issue expenses (access to finance), 100 per cent exemption from electricity duty for 7 years (access to infrastructure), 75 per cent of the cost of ERP software subject to a maximum of Rs 5 lakh for first 5,000 units, 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 Rs 1,500 and Rs 2500 crore) and ultra-mega (above Rs 2,500 crore) projects.

Other sectors added in the policy to propel growth include, auto, auto components, electrical vehicles, textiles, including apparel and made-ups and technical textiles, sports goods including fitness equipment, hand tools, agricultural machinery and equipment, machine tools and paper-based packaging units have, along with circular economy units engaged in the shredding of auto vehicles and auto parts, manufacturing of bio-diesel and waste management leading to usable product.

With the aim to woo investors to the state, chief minister Bhagwant Mann would embark on an eight-day tour to Germany from September 11.  (KNN Bureau)