Punjab seeks incentives from Finance Commission for industrial development

Amritsar, July 23

Punjab has sought a special package of incentives for rapid industrial development in its border districts, equivalent to those offered to Jammu and Kashmir (J&K) in order to control the flight of capital from the state.

In a presentation before the 16th Finance Commission, led by its Chairman Dr Arvind Panagariya, who were in the holy city on Tuesday, they were apprised that the industry-friendly ecosystem of Punjab required the necessary support to ensure development at an accelerated pace.

Among other features of the presentation, one-time compensation was sought for mitigating the economic losses incurred due to the trade embargo at Attari-Wagah border, along with annual compensation until its reopening. A dedicated Special Economic Export Zone to enhance the export of agri-products and Basmati rice was also sought.

To salvage the industrial sector, freight subsidy was sought to offset high logistics cost for industries, particularly in border districts. Similarly, a Production-Linked Incentive (PLI) scheme was advocated to promote diversification, competitiveness and generate employment opportunities in the agriculture sector. Subsidised interest rates on term loans and working capital to stimulate industrial growth, competitiveness, modernisation and expansion was also sought. Special tax benefits, akin to those provided to hill states, to support the border industry, were sought too.

Industrialists conveyed to the Finance Commission the need for giving incentives to boost the MSMEs in the state apart from ensuring a robust infrastructure at ports to avoid delay in shipping consignments to Punjab, good medical infrastructure in the form of hospitals in Majha and Doaba, ESI hospitals in every city and One Nation-One Tariff policy. Director of a Jalandhar-based industrial unit Mukil Verma highlighted the need for giving much needed boost to the sports industry.

Cabinet Ministers Harpal Singh Cheema, Kuldeep Singh Dhaliwal, Harbhajan Singh ETO and Laljit Singh Bhullar honoured Dr Arvind Panagariya on the occasion.