Cabinet approves package to woo ultra-mega projects

Tribune News Service

Chandigarh, January 1

The Punjab Cabinet led by Chief Minister Charanjit Singh Channi on Saturday approved a special package of incentives for new mega and ultra-mega projects to attract investment across the state.

According to a spokesperson for the Chief Minister’s Office, projects with fixed capital investment of Rs 1,500 to Rs 2,500 crore with a minimum contract demand of 20 MVA would be treated as mega projects and those with fixed capital investment of above Rs 2,500 crore and minimum contract demand of 30 MVA would come under the ultra-mega project category.

Under the special package, a special power tariff for four years would be provided to mega projects and five years to new ultra mega projects from the date of release of the permanent power connection.

Similarly, the incentive of net goods and services tax (GST) reimbursement would be available at the rate of 100 per cent of the net GST with a cap of 200 per cent of the FCI to be availed over a maximum period of 17 years for mega projects and 20 years for ultra-mega projects.

This special package of incentive would be available only to those units that had file their common application form (CAF) before October 17, 2022, and attained commercial production within three years for mega and four years for ultra-mega projects from the date of submission of common application form.

With the special package, the state would be in a better position to attract big projects to help create an industrial ecosystem and thereby promote the development of ancillary industries and boost the economy, besides generating employment, the spokesperson said.

In another decision, the Cabinet gave its appoval to waiver of pending arrears of electricity bills of all gaushalas in Punjab.