Punjab approves new business development policy

Chandigarh, Oct 16 (IANS) Faced with the daunting task of reviving economic and industrial activity in the state, the Punjab Cabinet on Monday approved a new business development policy, paving the way for fixing of industrial power tariff at Rs 5 per unit and a one-time settlement of industrial loans.

Under the new 'Industrial and Business Development Policy-2017', the industrial power tariff is proposed to be made effective from November 1 and will be applicable for five years. It will apply for the existing and new industries.

"Besides providing for incentives for expansion, modernisation and upgradation of existing units at par with new units, the new policy envisages a one-time settlement for industries against loans taken from the Punjab State Industrial Development Corporation, the Punjab Financial Corporation and the Punjab Agro Industries Corporation Ltd," a state government spokesman said.

The meeting was chaired by Chief Minister Amarinder Singh.

"The One Time Settlement (OTS) Policy, 2017, would help in releasing the blocked industrial investments and assets to put the same into productive use so as to revive the existing industries in Punjab," the spokesman added.

"It will also result in reducing the burden of litigation of these corporations and generate revenues for their developmental activities."

Power Minister Rana Gurjit Singh abstained from discussion on the one-time settlement of loans as his company would also benefit from the move, said the spokesman.

Under the new industrial policy, industrial infrastructure development will be on priority agenda under the provisions, which provide for development of border districts, extreme border zone and 'Kandi' areas.

He said that the new policy is aimed at promoting ease of doing business to attract investment in Punjab.