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InvestPunjab InvestorGuide
InvestPunjab InvestorGuide
InvestPunjab InvestorGuide
INVESTOR'S
GUIDE
2
Advantage India
As per Bloomberg Report 2018, India is ranked 1st in terms of favoured investment destination based on factors such
as political stability, currency stability, quality of products, anti-corruption initiatives, low cost of production, strategic
location and respect for IPR. 90% of existing investors continue to invest in India.
1
International Monetary Fund; 2 Department of Industrial Policy and Promotion, Government of India;
3
http://pubdocs.worldbank.org/en/332341517441011666/PPP-brochure-2017-webformat-rev.pdf https://blogs.worldbank.org/opendata/category/tags/purchasing-
power-parity; 4 Lloyd's Register Marine & University of Strathclyde, Glasgow; 5Press Information Bureau, Government of India; 6United Nations Population Fund; 7British
Council; 8All India Management Association & The Boston Consulting Group; 9 Goldman Sachs Group; 10 Boston Consulting Group; 11 McKinsey Global Institute; 12 Ernest &
Young Emerging Markets Center; 13 World Bank; 14 World Economic Forum; 15 Government of India; 16 Press Information Bureau, Government of India; 17
https://www.investindia.gov.in/why-india;
3
Advantage Punjab
The State of Punjab is located in the northwest of
the country, bounded by Jammu & Kashmir and Pathankot
Hoshiarpur
Punjab has three major seasons and is drained by Tarn Taran Kapurthala
Firozpur Rupnagar
Ludhiana
Summer – April to June Moga
Mansa
Winter - December to February
(min temperature 5 °C /41 °F
at night in January).3
The culture of Punjab has its own unique fragrance. Hospitality is a living aspect of Punjabi culture,
which is shown even to the migratory birds that sojourn here. This is accompanied by the
entrepreneurial spirit of Punjabis that has made them pioneers in numerous fields. Widely
acknowledged as the cradle of civilization, it is a land of ethnic and religious diversity, having borne
and shaped a number of religious movements that include Sikhism and Sufism. Naturally replete
with fertile soils and rich water sources, it is rich in agriculture, and has continually contributed
towards the food security of the nation. Historically, Punjab has played host to a number of
ethnicities, including the Aryans, Persians, Greeks, Afghans and Mongols, thereby bestowed with a
rich tangible heritage. Reflecting this history are the countless heritage sites that dot the state:
impressive forts & palaces, ancient monuments, architectural marvels and many a battlefield.
Punjab is one of the High Performing4 states of the country on the basis of its economic evolution &
future potential. The state's GSDP (in INR) increased at a CAGR of 10.2% between 2011-12 and
2017-18 to INR 4.77 trillion (USD 74.09 billion). Hence with only 1.5% of land area, Punjab
contributes 3% to India's GDP. Being home to an estimated 1.6 lakhs registered MSME units the
state has a strong industrial base.
1 3
http://punjabtourism.gov.in/Downloads/Brochures/Visit_Punjab.pdf http://www.discoveredindia.com/punjab/the-green-granary-of-india/seasons.htm
2 4
http://punjabtourism.gov.in/Punjab.html#/about-punjab India's economic geography in 2025: States, Clusters and Cities. Report by McKinsey.
.
4
a. Factors of Production
Land Power
The State Government agency called Punjab Small Industries & The cost of power in Punjab is fixed at USD
Export Corporation (PSIEC) is responsible for the development 0.07/unit for 5 years for all industry in the State.
of industrial infrastructure, namely Industrial Focal Points (IFP) It is much lower in comparison to the average
at various towns and cities of Punjab. To support setting up of a power tariff in India which is USD 0.10/unit.
project in Punjab, PSIEC provides readily developed sites
5
equipped with common utility infrastructure and clear title of Other technical details regarding national grid
land. They allot government land as per the land allotment policy connectivity / sub-station – information will
in a transparent manner. Land may be rented on long term lease depend on the location identified for the project
basis for a period of 99 years or bought on free-hold basis. For and Invest Punjab office will facilitate in
private land options Invest Punjab office facilitates investors in providing the same.
identifying feasible land across the state.
Labour
No Lockouts Flexibility in Hiring 1st in Health Index Recorded Lowest Home to world
No Strikes in last 3 & Downsizing report of overall Cognizable Crime class institutions-
decades 24 Hrs Shifts performance by incidence amongst IIT, IIM, ISB,
(for men and Niti Ayog, Gol major industrial NIPER, NABI, IISER &
women) hubs of India PGIMER
68% of Punjab's population is in the working age group of 15-59 years7. The state has 26 Public & Pvt. universities,
238 Engineering colleges (AICTE approved), 181 Polytechnic institutes, 378 Industrial Training institutes &
numerous management & medical colleges as well.
5
http://vidyutpravah.in/state-data/punjab
6
http://social.niti.gov.in/hlt-ranking/hlt-state-ranking/Njc%253D by National Institute for Transforming India
7
https://www.investindia.gov.in/state/punjab
5
Infrastructure
Punjab ranks 2nd in India on ease of logistics as per the Govt. of India Logistics Ease Pathankot
across Different States Report. Punjab has the highest rail density in India at 45 km per
1000 sq. km compared to the 20 km per 1000 sq. km in India. Moreover, the
Eastern Dedicated Freight Corridor between Ludhiana in Punjab and Dankuni Amritsar
(near Kolkata) in West Bengal will allow double stack movement of cargo
thereby reducing logistics cost by 33%.
Further, the Eastern Corridor will meet the Western Dedicated Freight Jalandhar
Corridor (Delhi to Mumbai) at Dadri, about 200 kms from Punjab towards
south giving Punjab access to both the Eastern & Western coasts. In
Ludhiana
addition, there are 5 ICDs in Punjab along with a land & railway port in
Amritsar and numerous multi-modal logistics parks. 2 International Mohali
Largest producer of 1st in country with 92% Largest manufacturer of No. 1 in country in
basmati rice (2% of of India's bicycle parts Tractors (60% of India's machine & hand tools
world) & wheat & 75% of India's bicycle tractor parts) & production
Leading producer of production Agricultural Machinery 85% of India's sewing
horticulture crops machine production
Developing IT/ITeS
Textile Hub Pharma Cluster
Centre
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Punjab Bureau of Investment Promotion
(Invest Punjab) – A One Stop Solution
The Bureau has been established by the Government of Punjab as the single point of contact for facilitation of
investors who are looking to set up a business in Punjab. We are also a one stop office for regulatory clearances &
facilitating disbursement of fiscal incentives as the Bureau is vested with the powers of various member
departments.
Officers from 23 departments (such as Factories, Pollution Control Board, Power, Labour etc.) are available at Invest
Punjab. As the nodal agency, PBIP has been entrusted with the responsibility to ensure a smooth transition of the
project from proposal stage to implementation stage.
For more information please log on to the website: http://investpunjab.gov.in/
Services
Dedicated Relationship Facilitation for meetings Online Application
Site Visits
officer with govt departments Form (CAF)
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Setting Up a Business in
Punjab - Step by Step Guide
Step 1: Guidance
In case the investor already owns land then he will need to get a Detailed Project
Report prepared (depicting physical and financial projections relating to the unit) by a competent authority such as
Chartered Accountants. This is only required as a pre-requisite for disbursement of fiscal post operational incentives
for determination of FCI.
Assistance to Foreign Investors: Sector Officers at Invest Punjab are also assigned to each foreign investor once initial
contact is made through meeting/phone call/email etc. Post assignment, the Sector Officer provides dedicated and
tailored support to the foreign investor as required.
Land under Industrial Focal Points has already been developed by the government and is available on auction basis
through Punjab Small Industries & Export Corporation Limited (PSIEC). Other parcels of government land are also
available with the Housing & Urban Development Department, with Local Government and with Panchayati
Department. The land identification is done keeping in mind the regulatory requirements of the investor's unit activity
& investment plans. Post identification, the investor may purchase / lease the land parcel by approaching government
agencies like Punjab Bureau of Investment Promotion (www.investpunjab.gov.in), PSIEC (www.psiec.in), etc. or the
concerned Deputy Commissioner / General Manager, District Industries Centre for Government Land. The Dedicated
Relationship Manager shall assist the investor in completing the formalities pertaining to land identification &
allocation.
In case the investor's requirements do not match the available government land parcels, Invest Punjab will also
support the investor in locating private land suitable for their purposes. The entrepreneur may purchase this private
land directly (preferably in accordance with the zoning guidelines of the approved master plan of the State, depending
upon the line of activity).
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Step 3: Finance
If the project / business needs funds more than the funds available, the entrepreneur may approach Commercial
Banks/Financial Institutions to obtain required loan amount. The project / business set up with own funds/ unsecured
loans without any involvement from Commercial Banks / Financial Institutions etc. is treated as Self-Financed Unit.
Step 4: Registration
All industrial undertakings exempted from the requirements of industrial licensing under I (D&R) Act, 1951 and having
an investment of Rs 10 Crore or above in the 'manufacturing sector' and Rs. 5 Crore or above in the 'services sector',
including Existing Units, New undertaking (NU) and New Article (NA), are required to file an IEM, i.e. "Form IEM" in the
prescribed format 'Part A'. The application is to be made with Secretariat for Industrial Assistance, Department of
Industrial Policy & Promotion, Ministry of Commerce & Industry, Udyog Bhawan, New Delhi on the following portal
- https://services.dipp.gov.in/lms/login. Said link is also available on www.investpunjab.gov.in
The Department issues Acknowledgement for 'Part A' through its portal followed by delivery of physical copy through
post.
Step 5: Approvals
Statutory regulatory approvals & clearances need to
be obtained from the Competent Authorities
through the Invest Punjab Business First Portal
(www.investpunjab.gov.in & www.pbindustries.go-
v.in). The approvals should be obtained as follows:
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3. After submission of CAF, the earlier Dedicated Relationship Manager would be tagged on the basis of Fixed
Capital Investment (FCI) of the Project. The Entrepreneur may get in touch with the Relationship Manager
through the 'Communications' module present on the Portal itself
4. Know the regulatory clearances that you need to obtain from the 'Know Your Approvals' wizard by filling in
your project details. Additionally, list of comprehensive pre-establishment / pre-operation clearances
required by your industry may be found on the Invest Punjab Business First Portal at
http://www.investpunjab.gov.in/Static/ComprehensiveListofTheStatutoryClearances
Civil construction should be started after obtaining all the requisite approvals from the competent authorities and
orders for machinery should be placed.
Commercial Production should be commenced after completing civil construction, erection of machinery and taking
requisite operative approvals.
Once commercial production starts, all Industrial undertakings which had filed IEM Part A previously are required to
report commencement of commercial production file Industrial Entrepreneurs Memorandum (IEM) Part-B with
Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Udyog Bhawan, New Delhi at -
https://services.dipp.gov.in/lms/login. A copy of the related IEM Acknowledgement is required to be attached while
filing this information on the portal. Like 'Part A' Acknowledgement of IEM, the Department also issues
Acknowledgement for 'Part B' through its portal followed by delivery of physical copy through post.
For availing Incentives by Punjab Government, Form-CCP has to be applied on the Invest Punjab Business First portal
to obtain commencement of commercial production certificate.
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Step 8: Incentives
Government of Punjab, under its Industrial & Business Development Policy 2017 has announced various Incentives
for new units and for existing units carrying out expansion, diversification and modernization. Incentives are available
for the following types of units:
Anchor Units
Early Bird Units
Thrust Sector Units
Border Zone units
Large Units
MSME Units
Sick Units
Startups
Copy of policy is available at
http://investpunjab.gov.in/Content/documents/Notifications/Industrial_and_Business_Development_Policy_
2017.pdf
Incentive Common Application Form (iCAF) needs to be filled on Invest Punjab Business First Portal for availing
Incentives. The incentives are granted by a quick two stage online verification process by a Scrutiny Committee &
the competent Approval Committee.
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Investment Opportunities
Our Priority Sectors:
Investment
S.No Sector Advantage Punjab
Opportunities
1. Agro & Food Ÿ Agriculture & allied sectors account for approx. Food Processing, Milk
Processing 21% of Punjab's GSDP against an all India average processing, Agribiotech
of 14% & Micro Irrigation
Ÿ Highest per capita availability of milk in India Techniques,
Ÿ Occupies 40% share in India's total warehousing & Warehouses and Silos,
storage capacity Cold Storage
Ÿ Ranks 2nd in production of cereals in India Infrastructure &
Ÿ Largest producer of honey in India Packaging
Ÿ High productivity of citrus fruits, animal husbandry
& fisheries
Ÿ High mechanized farming
Ÿ Three Food Parks
Ÿ Reimbursement of Market Fee, RDS, State Taxes
and Fees on raw material
2. Textile & Ÿ Punjab has emerged as 2nd largest cotton and Apparel & Garment and
Apparel blended yarn producer in the country. Technical textiles
Manufacturing Ÿ Ranked 4th in Spinning Capacity (5.75% of total) manufacturing
Ÿ Hub for hosiery production
Ÿ Ludhiana is the biggest textile manufacturing
cluster in North India.
Ÿ Availability of trained human capital especially
women workforce
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4. Pharma/ Ÿ Strong Reasech and Development ecosystem in Vaccines, Newer
Life Sciences the Pharma/ Life sciences sector. Therapies,
Ÿ Home to finest Pharma/Life sciences R&D centers Bioinformatics, Bio
such as National Institute for Pharma Education & chips, Recombinant
Research, All India Institute of Medical Sciences, therapeutics, Nano
Indian Institute of Science Education & Research medicines etc
and Homi Bhabha Cancer Hospital and Research
Centre, Mohali
Ÿ The State is coming up with a dedicated Bio
medical/ Pharma/ Life science Park in Knowledge
City.
Ÿ The park will be well equipped with Plug and Play
Infrastructure, Common facilities/utilities: Quality
testing & certification, incubation facility, CETP,
STP, convention center, library, guest house, fiber
optic Connectivity etc.
5. IT/ITeS Ÿ Lower Land cost (as compared to neighboring Website & Applications
States) Development, BPO,
Ÿ Dedicated IT city in Mohali with best in class Cloud Hosting,
infrastructure Electronic Chip
Ÿ Cost advantage of ~ 20% ~ 30% relative to other Manufacturing, Smart
IT hubs in terms of cost of living & operations Solutions - IoT,
Ÿ 50% top up CAPEX support for New Units in Surveillance systems,
EMC's (M-Sip of GOI) Software Development
Centre etc.
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Industrial Centres in Punjab
Amritsar
Agri & Food Processing
Yarn & Textiles
Tourism
Mohali
Medi City
Biotech Park
IT & ITeS
ESDM
Education & Research
Institutes
Automobile
Jalandhar IMC Rajpura
Agricultural Implements
Sports Goods
Wooden Furniture
Leather Tanning
Surgical Instrument
Ludhiana
Auto components
Bicycle & components
Hand tools & machine tools
Hosiery Bathinda
Food Park Petroleum & Chemicals
High-Tech Cycle Valley Agri & Food Processing
14
SECTOR CELLS
Nodal officer Sector Team Members Contact
Apparels & Made-ups, Technical Ms. Dipti Bansal L : +91 172 2776033
Textiles, Aerospace, MRO & Defense, Mr. Sunil Juneja M : +91 9815455532
Tourism and Hospitality, NRSE Power Ms. Nisha Rani Email:
Projects, Media & Entertainment, arunjit.sidhu@investpu
Education, Retail & E-commerce, Skill njab.gov.in
Development Centres
Mr. Arunjit Singh Sidhu
Food Processing Industries, Logistics, Mr. Ankur Chaudhary L: +91 172 2776034
Bicycle & Bicycle Components, Medical Ms. Nisha Rani M: +91 9646118909
Equipment Mr Bikramjit Singh Email:
sanjeev.gupta@invest
punjab.gov.in
Mr. T L Khosla
Invest Punjab Business First Cases Ms. Bhanu Priya L: +91 172 2715344
-Manufacturing, Chemical and M: +91 9814446550
Petrochemicals Email:
satishmohangoel@gmai
l.com
Mr. S M Goal
E- Vehicles, Auto & Auto Components, Mr. Harshbir Sandhu L: +91 172 2776023
Industry 4.0 bases Mr. Hemraj Sharma M: +91 9216955545
Mr. Ashok Singh Email:
gaurav.khanna@inves
tpunjab.gov.in
Mr. Gaurav Khanna
Electronics, IT& ITeS, Startups/ Mr. Rakesh Kumar L: +91 172 2776070
Incubation Centres/Accelerators Ms. Amanpreet Kaur M: +91 9814792553
Email:
dsdhillon2553@rediff
mail.com
Mr. Deepinder Dhillon
Contact Details
Government of Punjab Phone. +91-172-2776001, Fax. +91-172-2776003
Punjab Bureau of Investment Promotion Email. info@investpunjab.gov.in
Invest Punjab, Udyog Bhawan, Sector 17, Website: www.investpunjab.gov.in
Chandigarh - 160017 - INDIA