Punjab Govt woos semiconductor, EV firms with special incentives

With a focus on promoting hi-tech industry, the Punjab Government is now wooing semiconductor, electric vehicles (EV) and steel manufacturers, besides heavy industry.

The state government prepares to unveil its master industrial policy and several sectoral industrial policies in January. Special fiscal and non-fiscal incentives are being finalised for these industries in consultation with Ernst & Young and the Punjab Development Commission.

Talking to The Tribune, state Industry Minister Sanjeev Arora said top semiconductor manufacturers were vying with each other for the modernisation of Semi-Conductor Laboratory, Mohali. “Players like Isuzu and Murugappa group have shown keen interest in setting up facilities for manufacturing light commercial electric vehicles. In days to come, MoUs will be signed and a new era of industrialisation is set to be ushered in Punjab,” he said.

The state government would offer them incentives like exemption from electricity duty, production-linked incentives, subsidy on fixed capital investment, refund on SGST, amongst others.

“Each sector will get incentives. We are in the process of doing benchmarking for each incentive vis-à-vis other states. What Punjab offers to the industry will be much better than any other state. Even the construction of labour colonies will be considered while giving fixed capital subsidy. The state already has built a reputation as the best in terms of ease of doing business,” he said. All incentives would be announced before the Invest Punjab Summit, scheduled between March 14 and 16, he added.

Arora said while they wooed the large industries, the micro, small and medium enterprises (MSMEs) were being equally welcomed in the state. “These form the backbone of the state industry and we are offering these same incentives as large industrial units in the same sector,” he added.