The Punjab Cabinet on Saturday gave its consent to the Punjab Industrial and Business Development Policy, 2026, which offers a plethora of fiscal and non-fiscal incentives to those willing to set up new industrial units here.
Related news: Punjab’s new industrial policy to come up for Cabinet nod this week
The approval for the Cabinet policy was given in a meeting presided over by Chief Minister Bhagwant Mann. This is an overarching policy supported by 24 sector-specific policies, developed after consultation with stakeholders in each of the 24 sectors.
The policy will be applicable not only to new investors but also to those undertaking modernisation and expansion of their existing units.
For the first time, under the new policy, investors will have the liberty to choose from 20 different incentive options to build their own customised incentive package, also, a fixed capital subsidy of Rs 20 crore for setting up Zero Liquid Discharge systems and Rs 7.50 crore for switching to paddy straw-based boilers has been introduced.
The other incentives include freight subsidy, marketing assistance, support for Research and Development facilities, an NSE Emerge platform, quality certification, patent registration, vendor development programs, and exemption from canal water user charges.
The exemptions in SGST, stamp duty, electricity duty, and employment generation subsidy, given to investors previously, will also continue. The investor eligibility period has been extended from 7-10 to 10-15 years.
The policy has identified nine priority sectors: food processing, sports goods, textiles and allied industries, agro-waste processing, auto and auto components, electronics and semiconductors, IT, electric vehicles, and defence and aerospace. These sectors will receive an additional 25 per cent incentive, as will all industries coming up in border districts and the Kandi region.
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