Frequently Asked Questions

Who are we and how do we operate?

Punjab Bureau of Investment Promotion (PBIP) is the single point of contact for regulatory clearances and fiscal incentives approvals from Government of Punjab for investors who are looking to set up a business in Punjab. As the nodal agency, we ensure a smooth transition of the project from the proposal stage up to the implementation stage. We provide necessary assistance for regulatory clearances from different departments and fiscal incentives approvals, as applicable under FIIP-2013.

Who can approach us?

Any entrepreneur/ project proponent/ company/society looking to set up a business in Punjab with an investment above INR 1 Crore.

How can I approach PBIP?

The project proposal can be submitted to the bureau in a common application form giving basic details of project under consideration and the bureau will provide ongoing assistance in obtaining relevant regulatory clearances and/or fiscal approvals, wherever applicable.

Who are the member departments of PBIP?

The following are the member departments of PBIP:

  • Punjab Pollution Control Board
  • Excise and Taxation
  • Labour
  • Factories
  • Industries (Boilers)
  • Housing and Urban Development (Town and Country Planning)
  • Local Government
  • Forests and Wildlife
  • Power (PSPCL)
  • Revenue
     

Do I need to approach any other department, in addition to PBIP to complete my approval process?

No, we are the single point of contact between the investor and the administrative departments and will facilitate the approval process.

What is FIIP (R) - 2013? What are the main fiscal incentives for making investment in Punjab?

FIIP (R) - 2013 refers to the package of Fiscal Incentives for Industrial Promotion applicable to investments in specific sectors as mentioned in the policy. Depending upon the Fixed Capital Investment (FCI) slab & sector of investment, different incentives like VAT & CST incentive, Electricity Duty exemption, Stamp Duty exemption, Property Tax incentives, Mandi Fees (For Agro & Food Processing Sector) are available for different eligibility period.

What industries are covered under FIIP (R) - 2013 for availing incentives ?

FIIP (R) - 2013 covers the following sectors

  • Manufacturing
  • Integrated Textiles
  • Electronics, Hardware and IT
  • Agro Industrial and Food Processing
  • Tourism
  • Health and Biosciences

However we welcome all categories of industry and investments for assistance in getting regulatory clearances.

What is meant by FCI (Fixed Capital Investment) for the purpose of Incentives?

Fixed Capital Investment (FCI) for the purpose of incentives shall mean investment incurred or to be incurred on building, plant, machinery and equipment only. building (excluding land), plant, machinery and equipment (excluding vehicles).”

In case the land has already been purchased/leased, how the stamp duty exemption can be availed?

Refund of stamp duty shall be allowed for all registration of land which has been purchased/leased up to 3 years prior to the date of submission of application form by the same entity.  The refund, however, will be given only after the date of commencement of production.

Is Electricity Duty exemption available on captive power exported to entities other than PSPCL?

No, the Electricity Duty exemption is available on captive power exported to PSPCL only.

Am I eligible for property tax exemption?

You are eligible for this incentive if your unit is within industrial focal points, industrial estates and approved industrial parks.

When will the incentives will start flowing to the entrepreneur?

Incentives will be available to the entrepreneurs from the date of commencement of production.

What is the maximum limit of availing the incentives?

The maximum limit of the sum of all incentives (VAT, CST, Electricity Duty, Stamp Duty, Property Tax, and Market Fee) as provided in FIIP-2013 that can be availed under this notification shall not exceed 100% of Fixed Capital Investment (FCI), proportioned appropriately and approved by PBIP.

Are the fiscal incentives also available to the existing units for their expansion activity?

Yes, the fiscal incentives are available for the expansion of the existing projects subjected to certain conditions. Projects which undertake expansion shall satisfy the following conditions:

  • There shall be a minimum 50% increase in the Fixed Capital Investment (original value without depreciation) for all projects with original investment of INR 100 crore or less subject to the condition that the minimum increase in the FCI would be INR 1 crore.
  • For projects with original investment above INR 100 crore the minimum expansion in FCI shall be 25% subject to a lower limit of INR 50 crore.
  • Such projects undertaking expansion shall be eligible only for 50% of the incentives of the slab in which the expansion project falls under the FIIP-2013. 
  • Such expansion shall have to be carried out after the cut-off date of 01-04-2013 meaning thereby that the unit shall make the requisite investments only after 01-04-2013 as expansion of the existing project.

Are there any category of industrial sectors which are not covered under FIIP (R) -2013 Policy?

Yes, the negative list of industries/sectors which shall not be eligible for incentives under this policy are as under:

  • Manufacturing/packing of alcoholic or aerated/carbonated products including Distilleries, Breweries, Wineries, Bottling Plants and Canning Plants except units manufacturing agro based food products directly from the agricultural/horticulture produce purchased from within the State.
  • Manufacturing of Tobacco products including Cigars, Cigarettes and Gutka
  • Brick/ Tile Kilns
  • Manufacturing of Cement
  • Vanaspati Ghee Mills
  • Rice Shellers with FCI of less than Rs 10 Cr.
  • Refining of Petroleum Products
  • Manufacturing of Fertilizers

Does PBIP provide information on availability of land to the investor? Also, can PBIP guide me on specific information such as which industry / areas to invest in?

We are here to guide you through your investment process and would be happy to help. Please contact the bureau office to set up a meeting so we may understand your requirements and provide appropriate guidance to ensure a smooth transition for your project.

Is quantum of fiscal incentives equally available in whole of Punjab?

Fiscal Incentives are available in whole of Punjab but the quantum of the fiscal incentives are zone specific as detailed in the policy.

Is a MoU (Memorandum of Understanding) compulsory for investing in Punjab?

A MoU is not compulsory for investing in Punjab, but we encourage you to sign a MoU so we may start addressing your concerns at an earlier stage.

What will be the status of Mega Projects covered under Industrial Policy 2003 and Industrial Policy 2009, Sunset Clauses?

  • A Unit/project that had applied but had not been approved under Industrial Policy-2003 or Industrial Policy-2009 may apply afresh under this Package.
  • All Units/projects approved under Industrial Policy-2003 or Industrial Policy-2009 which did not sign an agreement with the Nodal Department till the date of notification of this Package, may apply afresh under this Package.
  • All projects approved under Industrial Policy-2003 or Industrial Policy-2009 including all Mega projects which have commenced commercial production/operations before 05.12.2013 will continue to be governed under the respective previous policy, including all mega projects in the sectors of manufacturing, multiplexes, hotels, agro, housing or any mega/super-mega industrial park(s) and all other mega residuals.
  • A Unit which has availed any incentive under Industrial Policy-2003 shall not be eligible to apply under this Package.

What will be the status of Mega Projects covered under Industrial Policy 2003?

For Industrial Policy-2003:

All Units which had signed an agreement under Industrial Policy-2003 but have not commenced Commercial Production/Operations till the date of notification of this Package (05-12-2013) shall continue to be governed under that policy by the Department of Industries & Commerce. They are given one time extension up to six months from the notification of this package, to commence Commercial Production/Operations to claim incentives under Industrial Policy- 2003, subject to all extant conditions of the Department of Industries & Commerce.
Units that do not commence Commercial Production /Operations during this extension period shall not be eligible for any incentives under Industrial Policy-2003.
However, an extension in the implementation period already granted to a Unit by the competent authority will continue to apply.

What will be the status of Mega Projects covered under Industrial Policy, 2009 and other projects which have come into production on or after 1.4.2013?

Mega Projects approved under Industrial Policy 2009 and other projects which will come into commercial production on or after 01-04-2013 will be governed by the following:

For Industrial Policy-2009

All Units that have been approved and had signed an agreement under Industrial Policy-2009 but have not commenced Commercial Production/Operations till the date of 01.04.2013, may apply afresh under this Package or continue to be governed under Industrial Policy-2009. Units which opt to be governed under Industrial Policy-2009 shall continue to be governed under that policy by the Department of Industries & Commerce. They are allowed extension up to one year from the notification of this package, to commence Commercial Production/Operations to claim incentive under Industrial Policy- 2009. Units that do not commence Commercial Production /Operations during this extension period shall not be eligible for any incentives under Industrial Policy- 2009 subject to all extant conditions of the Department of Industries & Commerce. However, an extension in the implementation period already granted to a Unit by the competent authority will continue to apply. Further, Units which opt to be governed under this Package shall apply afresh to the Bureau. FCI, as defined in this Package, invested from the date of submission of the application by the Unit under Industrial Policy-2009 will be considered for granting incentives under this Package. As regards new incentives provided under this Package, namely VAT/CST retention and Property Tax exemption such Units shall be given only 50% of the incentives under this Package. However the maximum limit of the sum of all fiscal incentives availed shall not exceed 50% of FCI under Industrial Policy-2009 and this package, in accordance with zones applicable.