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...................................................................................................................22 Contact Information.....21 Doing Business in Punjab......................................................................................................11 Infrastructure for savings and borrowings................ 9 Infrastructure ....11 Medical & Health Care Facilities................................................................................................13 Policy Framework ....................................................17 Agro-Based Industries ................................................................................................................................................................................................................................................... 9 Labour Force .........................................................Select indicators ......22 Appendix .............................................................. 6 Punjab’s economic performance ...........................................................................................Economic prosperity ........ 8 Investments..................................................................................20 IT & Electronics Industry ................................................................................................................................17 Textile Industry ...............................................................................................................................................................................................................................12 Physical Infrastructure ...................18 Light Engineering Goods ...............................................................PUNJAB PAGE 3 Table of Contents Table of Contents Executive Summary ........................................................................................................................................ 7 Industrial centres in Punjab................ 5 Economic Overview of the State .......................................................................................................19 Chemicals & Chemical Products .............................................................................. 4 Punjab .. 7 Industrial performance.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................12 Key Nodal Agencies ............................................................................................................................................. 6 People ......................10 Industrial infrastructure ...........................................................20 Retail & Entertainment .......................................................10 Educational Infrastructure ............................. 8 Punjab’s contribution in India’s exports .......................................................................................................................................................................................................................................................................................................................22 A report by ICRA for IBEF .........................................................................................................................................................................19 Automotive & Auto Components Industry ........................................15 Key industries and players ....
such as power. and food and apparel sectors. lesser number of regulations and speedy clearance of new projects. Historically.72 billion. A key characteristic of Punjab’s industry has been the dominance of small-scale industrial (SSI) units numbering over 200. bridges and power generation is also being ramped up. Ludhiana. The banking and ﬁnancial services sector has a strong network across the state to facilitate savings and disperse credit. Impetus is being given to the development of medium and large enterprises. is a strong contributor to the state’s economy with a 21 per cent share in manufacturing output. respectively. This sector is dominated by the bicycle industry. The textiles industry covers the entire value chain – from raw material to the ﬁnished products stage. Industrial parks have been established for new units in the IT. is also known as the ‘cycle capital’ of the country. The state is a major contributor to the wheat and rice pool in the country. The Land Allotment Policy. the industrial hub of Punjab and home to two of the largest bicycle companies in India. Punjab also ranks well on social indicators like literacy and health. Maximum investments have come into the manufacturing sector. Another important . Chemicals and metals are the two other important sectors in the state. The steps taken so far in implementing appropriate policies and creation of physical infrastructure have ensured over eight per cent per annum economic growth since 1999-00.outstanding investments in Punjab as of quarter ending March 2007 were $13. including proﬁtability and where to locate plants and other units. In particular. ITeS and biotechnology. It has leveraged its large agricultural base to establish a strong position in agri-business.Executive Summary Regulatory framework segment. electricity and construction. The state is committed to create an attractive investment climate for investors. the automobile industry. . telecom. water supply. encompassing all the factors affecting business decisions. agro-processing. Punjab has also been strong in two industry sectors – textiles and light engineering goods. hand tools. has facilitated the allotment of existing and new plots of land in various industrial focal points and semi developed/ developed land under the ‘Offthe-Shelf’ scheme for industry-related activities. hospitals and educational institutions. It requires a Composite Application Form from entrepreneurs and assists in getting clearance from various departments within the stipulated time period. integrity of public services. sewing machines and machine tools. retail. 2002. The government has set up industrial parks. and retail and entertainment. A special cell. operation and exit of ﬁrms. The state has a fairly well-developed education system that provides skilled workers to industry. guidance and information to investors about policies and programmes of the state. signiﬁcant projects have been coming up in IT. The state’s Industrial Policy 2003 aims at infrastructure development. Governance and regulatory framework in terms of rules and regulations governing entry. The light engineering goods industry. biotech. and Provision of incentives and access to credit. urban infrastructure. Punjab derives competitive advantage from the fact that it is the second-largest producer of cotton and blended-yarn and the third-largest producer of mill-made fabrics in India. infrastructure. is dominated by producers of tractors and auto components. Factors inﬂuencing investment climate include: • • Availability and ease of use of factor inputs such as land and labour. • • Punjab ushered in the ‘Green Revolution’ and the ‘White Revolution’ in the country with its contribution to agriculture and milk production. The state is at the forefront in attracting investments . followed by services. which includes bicycles and bicycle parts. stability in regulation. Speciﬁc policies have also been announced to give a thrust to sunrise industries like IT. Physical & Social Infrastructure Resources/Input Investment Climate of a State Incentives to Industry ‘Investment climate’ is a broad concept. Food processing is becoming a thrust area for leading corporates and agri-procurement through contract farming is on the rise. A good investment climate provides opportunities and incentives for ﬁrms to invest productively and create jobs.000. has been established to facilitate setting up of new industrial units. thus playing a key role in ensuring sustained growth and poverty reduction. It also provides escort services. Udyog Sahayak. special economic zones and industry clusters. of which almost 50 per cent is under implementation. Availability of adequate physical and social infrastructure. Infrastructure related to roads. law and order and investment facilitation.
362 Summer (April to June) Rainy season (July to September).Bicycles and bicycle parts . Metals.37% 484 20.4 7 49 (Source: UNDP Human Development report 2004) Industry Key industries having business potential Agri-procurement and processing.Sports goods . Automotive and parts and sports goods.Paper and paper products .PUNJAB PAGE 5 Punjab . electronic items.Light engineering goods .Automotive (mainly tractors) and auto components . Chemicals.7 % 26.Pharmaceuticals . Light Engineering Goods.Textiles Source: Economic Survey of Punjab (2005-06) Average Rainfall in 2004 (in mm) Number of districts Number of towns (as per 2001 Census) Number of inhabited villages (as per 2001 Census) People Main religions State Language Population (in million) (2001-Census) Share of urban population State’s share in India’s population Population density (per sq km) Growth in population between 1991 and 2001 Sex ratio (females per 1000 males) Literacy rate Birth rate in 2003 (per thousand persons) Death rate in 2003 (per thousand persons) Infant mortality rate (per thousand live births) Sikhism. sewing machines and parts .278 Key industries in Punjab .Chemical products .358 33.1% 941 69. Hinduism Punjabi 24.Select indicators Capital Land and Climate Geographical Area (sq km) Climate Chandigarh 50.Food products .92% 2.Metal and alloy products . machine tools. Winter (October to March) 375.2 17 145 12. . Textiles.hand tools.
2005-06 • • • • • The net sown area of the state increased from 40. have shown signiﬁcant increase in contribution to the GSDP over the years. fertilisers.5 50 7.5 per cent share of GSDP in 2004-05.1 per cent of the GSDP in 2004-05.7% 60 70 36.35 per cent to the workforce. with heavy investment in irrigation. highyielding varieties of seeds as well as increased usage of tractors in farming.000 hectares in 2000-2001. The secondary and tertiary sectors. storage. the state holds an important position on the industrial front also. The state’s share in India’s population is 2. Punjab is amongst the richest states in India. hotels and restaurants. In fact. Today.76 16. secondary (comprising manufacturing. The structural composition of the state’s economy has witnessed a transformation over the last few years. Despite this.5% 30 40 23.2 per cent for allIndia. up from 32.4 per cent between 1999-00 and 2004-05. growth in the sector. having grown at a CAGR of 7. The state has greatly beneﬁted from mechanisation.2 per cent between n Primary Sector n Secondary Sector n Tertiary Sector Source: Economic Survey of Punjab.5 80 5.9% 90 100 The gross state domestic product (GSDP) of Punjab grew at a compound annual growth rate (CAGR) of 8. Punjab contributes 21. The word `Punjab’ is derived from two Persian words: Panj (ﬁve) and ab (waters or rivers) and means the land of ﬁve rivers (prior to Partition. construction and electricity.3 per cent between 1999-00 and 2004-05. increasing from $13. gas and water supply) and tertiary (comprising trade. the Ravi. which has a roughly one-third share in the secondary sector. This has been driven mainly by the growth in production of crops like rice and wheat.1 per cent in 1989-90. 2005-06 Percentage distribution of GSDP 2000 2005 0 CAGR% 10 40. This has been driven by growth in all three sectors – primary (comprising agriculture and livestock.1 20 9. as compared to only 41. chemicals. The cumulative effect of the Green Revolution is evident: The ‘Green Revolution’ in the state was followed by the ‘White Revolution’.67 14.5 per cent share in GSDP in 2004-05. grew at a CAGR of 16. This growth has been driven by increased construction activities for private dwellings as well as for infrastructure development. the construction sector in Punjab. the state is still known for ushering in the ‘Green Revolution’ in India. The tertiary sector accounted for a 39. particularly agriculture.57 19. Punjab’s economic performance Punjab’s GSDP US$ billion 2000 2001 2002 2003 2004 2005 0 2 4 6 8 10 12 14 16 18 13. storage and communication.10 13.10 billion in 1999-00 to $19. Today almost 98 per cent of the gross cropped area in Punjab is irrigated. The primary sector accounted for 37. transport. the Sutlej. 3. a result of the increased emphasis on livestock farming.4 per cent to rice production in the country. . the Chenab and the Jhelum ﬂowed through the state).16 18. ﬁnancial services. The secondary sector accounted for a 23.55 billion in 2004-05. Transport. The cropping intensity in the state is the highest in the country.5 per cent to the total bank deposits in the country.Economic Overview of the State With a gross domestic product of $19. driven by increased activity in sub-sectors like transport. communication and ﬁnancial services. in the last few years has been above the all-India average.3 39.6 per cent to wheat production and 12. real estate and related services.55 billion in 2004-05. This sector has witnessed the highest growth rate vis-à-vis the primary and secondary sectors. while it contributes 4. because of which the production of milk has multiplied manifold over the years. public administration and other services).1 per cent in 1990. the Beas. grew at 15. as compared to 46.000 hectares in 1970-71 to 42.2 37. mining and quarrying). ﬁshing.55 20 CAGR 8. in particular.3% Source: Economic Survey of Punjab. storage and communication. Even though the share of the agricultural sector has declined over the years. forestry and logging.7 per cent since 1999-00.37 per cent. Predominance of the agricultural sector has characterised the economy of Punjab.41 per cent to value-addition from industry and 3.5 23. with a 20 per cent share in the tertiary sector. The entire area under wheat and almost 98 per cent of the area under rice are covered by high-yielding varieties.
8 Large & Medium Industries 600 7.60 1. twowheelers and television are indicators of consumer aspirations. Having grown from $488. as compared to the allIndia ﬁgure of 19.5 22.667 >US$ 6.2 12. agriculture-related industries like farm machinery manufacturing came up. Distribution of households by income (Per cent) Urban The annual income of households in Punjab is also an important indicator of the economic prosperity of people.1 US$ 1. The main focus in the 1970s was on industries like <US$ 1. respectively.8 per cent of rural.34 per cent. while the all-India ﬁgure is only 18 per cent.3% Working units(No.667 n Punjab n All India Source:The Market Skyline of India 2006 by Indicus Analytics Distribution of households by income (Per cent) Rural <US$ 1667 10.07 935 n Punjab n All-India Source:The Market Skyline of India 2006 by Indicus Analytics Source: Economic Survey of Punjab (2005-06) . 34.667 and above.2% Small Scale Units 204.6 per cent of Punjab’s urban households and 18 per cent of rural households ﬁgure in the highest income category of $6.667 4. Only 4. it is substantially higher than the all-India ﬁgure of $514. grew at a CAGR of 12.22 7.1 per cent in the same period.8 18. as compared to 12.1 16. People . A comparison of asset ownership by households in Punjab vis-à-vis all-India ﬁgures shows that consumers in Punjab are way ahead in terms of their consumption pattern.6 49.2 Parameter US$ 1668-3330 32.2 per cent of Punjab’s urban households and 10.668-3.2 39.2 per cent of rural households ﬁgure in the lowest income category of less than $1.330 22.066 5.0 34. as compared to the all-India averages of only 22.1 per cent of all-India urban households and 46.2 46.331 -6. comprising 16 per cent of the tertiary sector. In the 1950s.51 248.1 39.2.0 4.PUNJAB PAGE 7 1999-00 and 2004-05. A comparison of distribution of households by various income categories in Punjab vis-à-vis the all-India ﬁgures shows that the share of households in higher income categories in Punjab is more.0 26. For example. Assets like four-wheelers. The estimated percentage of population in Punjab below the poverty line in 2006-07 was only two per cent. For example. nine per cent of Punjab’s households own a four-wheeler as compared to the all-India ﬁgure of four per cent.55 9. Another factor that points towards the economic well being of the people in Punjab is the ownership of physical assets like vehicles and consumer electronics.Economic prosperity The per capita income in Punjab is amongst the highest in the country. Industrial performance Industrial development in Punjab has taken place in phases.6 22.7 0 5 10 15 20 25 30 35 40 US$ 3.7 per cent and 4. while in the 1960s with the beginning of the ‘Green Revolution’.) Production (US$ billion) CAGR of production (2000-05) US$ 3331 -6667 >US$ 6667 0 5 10 15 20 25 30 35 40 50 Fixed investment (US$ billion) Employment (‘000 number) 4. Similarly. the bicycle-parts and hosiery industries took roots.667.1 in 2000 to $679. 40 per cent of Punjab’s households own a two-wheeler. This holds true both for urban as well as rural households.2 in 2005.6 per cent. while ﬁnancial services.
paper and paper products and chemicals. The telecommunication and IT industries have dominated investments in the services sector. machine tools. There are about 275 mills operational in the area. bicycles and bicycle parts and auto components. pump parts. outstanding investments in Punjab as of quarter ended March 2007 were $13. ball bearings. Punjab . soaps. electronic goods. SSI units in the state are increasingly getting linked to large-scale industries as ancillaries.7 Agricultural implements.72 billion. electrical components 6. hand tools. producing different types of structurals. Foreign direct investment (FDI) from non-resident Indians is also signiﬁcant. electricity and construction. footwear. Ferozpur. switch & switch-gears. edible and non-edible oils and sugar. agricultural implements. printing machinery. hand tools and sewing machines. 21 per cent of industrial units and about 30 per cent of industrial workforce of the state. SSI units dominate the state’s economy. vanaspati. electronic components. Amritsar.7 Agricultural implements. electronic goods. electrical goods. The district of Ludhiana leads in industrialisation. leather tanneries. pharmaceuticals. brassware 3. paper & paper board 10. Mohali is home to the IT and ITES sectors as well as electronics manufacturing. is a cluster for rolling and re-rolling mills. pharmaceuticals. the number of industrial units grew ﬁve times and investment and production went up 18 times. electric fans. plastic goods 11. sports goods and sewing machines. The industrial sector has shown impressive growth since 1980. oil engines. the key industries that have attracted investments are textiles. sports goods. light engineering products like machines tools. chemicals. textiles. Road construction comprises the major chunk of investments coming into infrastructure.8 Steel re-rolling. pipe ﬁttings. Jalandhar is known mainly for leather goods.7 Bicycle & bicycle parts. followed by services. The top 10 districts constitute 90% of production District Ludhiana Patiala Roop Nagar Amritsar Sangrur Bathinda Jalandhar Fatehgarh Sahib Gurdaspur & Mansa Hoshiarpur Others* Total Share in production (%) Industries 32. bakery machinery 8. In the manufacturing sector. Industrial centres in Punjab The main industrial centres in Punjab are Ludhiana. of which almost 50 per cent is under implementation. radio & transistors. ﬂour mills 5. Moga. leather goods. Between 1980 and 2000. bus body building. chemicals 6.auto-parts and electronic items and during the 1980s the focus was on resource-based industries like food processing. machine tools. 60 per cent of exports and 21 per cent investment of the industrial sector. Kapurthala. as a result of which their production process is getting more modernised. Maximum investments have come into the manufacturing sector. conduit pipes.and large-scale sectors. milk products.6 Rosine & turpentine oil. Mandi Gobindgarh. sewing machine parts. Investments in Punjab The state is at the forefront in attracting investments in the country. pharmaceutical. sewing machine parts.0 Surgical instruments. agricultural implements. sports goods.1 Automobile parts.7 100 *Others include Faridkot. machine tools. textiles. food products. cycle parts. paints. tractors parts. employment increased three times. sewing machine parts. rods. Mandi Gobindgarh and Mohali. Between 1999-00 and 2004-05. plates and ﬂats. Punjab is witnessing rapid growth in the production of engineering goods. chilled rolls 6. accounting for 47 per cent of production. sewing machines & parts.9 Textiles. tractors & parts. also called the “Steel Town of Punjab”. automobile parts. enamelled copper wire . followed by investments in construction of housing projects and commercial complexes and shopping malls. automobile parts. including tyres and tubes. It has the largest number of large and medium units. paper and paper packaging. sugar. hand tools. accounting for more than 32 per cent of the industrial output. pressure cookers. agricultural implements. paints. agricultural implements. rubber goods. truck body building 3. an essential link in the supply chain of the iron and steel industry. Nawanshehar Source: Director of Industries. castings. publications.0 Cotton ginning and processing. rubber goods 4. According to estimates by the Centre for Monitoring Indian Economy (CMIE). Jalandhar. pharmaceuticals.7 Agricultural implements. Muktsar. The district is a major exporter of textiles. the output from the SSI sector witnessed a higher growth rate as compared to the output of medium. while Amritsar has been strong in food processing and textiles.
as compared to 0. while non-fatal injuries per thousand .5% 14. Labour relations in the state are cordial as compared to other leading industrial states in the country.18 at an all-India level.561 49.7% 48.947 378.19 as compared to 8. MBD Group. more than 85 per cent were main workers.169 49. Punjab.13 million comprised the workforce. even though unemployment has come down since 2000.537 Man days Lost 36. thus having the lowest number of man days lost. hand tools. Textiles have the largest share in the total exports. Of this.80 billion in 2006-07. Labour Force in Punjab As per Census 2001. of the total population of 24.3% workers were 0. Fatal injuries per thousand workers employed were only 0. at a CAGR of 26. Comparison of industrial disputes across States during 2006 State Disputes 10 14 15 19 22 Workers involved 2.021 168. In 2006. auto spares and rice.36 million in the state. Omaxe. out of the 418 industrial disputes (strikes and lock-outs) in the country.482 434. Easy availability of workforce (both skilled and unskilled) is a major advantage that the state offers. Punjab reported only 10. DLF and Emaar MGF. Parsavnath Developers. Punjab’s contribution to India’s exports Exports from Punjab have grown from $1.75 billion in 2004-05 to $2. Some of the major investments under implementation in the real estate sector are by leading corporates like the Ansal Group.48 at the national level.000 educated youth were unemployed in 2005.05 in 2001. followed by cycles and cycle parts. Punjab has a safe working environment.405 14.PUNJAB PAGE 9 Breakup of investments by sector 0.944 84.7 per cent.091 7. which also includes the fourlaning of the stretch.0% Punjab Maharashtra Haryana Karnataka Gujarat Source: Indiastat n Manufacturing n Electricity n Irrigation n Services n Construction Source: CMIE The upgradation of the Jalandhar-Amritsar National Highway-1 (NH-1) by IVRCL Infrastructures & Projects Ltd is the most important road project in Punjab. These ﬁve product categories constitute more than 70 per cent of the exports from Punjab. making it an attractive destination for investment. 9. nearly 315.4% 22. According to estimates by the Director of Employment.234 239.
It has two dedicated international Ku band earth stations and more than 63 mbps bandwidth. On completion of the required formalities of LOI within the admissible time period. Its recommendations are placed before an allotment committee under the chairmanship of the Minister of Industries & Commerce.500 sq yds. The application for land allotment is made to the Udyog Sahayak (Industrial Facilitation Cell) by the promoter along with the detailed project report and building plans. Government of India. It comprises a 100. the Udyog Sahayak places the applications before a sub-committee. In the event of failure to start commercial production within the admissible/ extended period. the state has notiﬁed the Land Allotment Policy. qualiﬁcation and experience of the project promoters and FDI involved. Reservation for plots is also provided for export-oriented units and non-resident Indians.500 sq yds and two acres and all plots measuring above two acres. for allotment of existing and new plots of land in various industrial focal points and semi developed/ developed land under the ‘Off-the-Shelf’ scheme for industry-related activities.VSNL is already operating an international gateway in Jalandhar. The amount over and above thereof is refunded to the applicant. • Industry Clusters Punjab is promoting the growth of speciﬁc industries through a planned cluster development approach. a joint initiative of an NRI group and Punjab Agro Industries Corporation. • Place ﬁrm order for the purchase of plant and machinery. After scrutiny.Various national and international companies like Quark City. under exceptional circumstances. On completion of these requirements. textiles in Ludhiana and sports goods and leather goods in Jalandhar. after which the allottee has to ensure that commercial production commences within a period of three years form the date of offer of possession. a letter of intent (LOI) is issued by the concerned developing agency to the applicant.000 sq ft cold chain facility and a clean zone handling complex for horticultural produce. • Make application for power connection. impact on the environment. who is required to get the project appraised for its techno-economic feasibility from ﬁnancial institutions/ scheduled commercial banks or other public sector consultants within four months of issue of LOI. and Punjab Infotech. apart from fulﬁlling certain pre-requisites like obtaining consent from the Punjab Pollution Control Board. After its approval. has set up a 25-acre Food Park in Fatehgarh Sahib district. Mohali ELTOP has been promoted by the Punjab Information & Communication Technology Corporation Ltd (Punjab Infotech) . 2002. the allotment of plot is cancelled and the amount equivalent to the earnest money deposited by the applicant is forfeited by the developing agency along with the paid/ payable extension fee.a state undertaking .000 and 2. the allottee can apply to the agency seeking extension in time period for commencement of commercial production for an additional six months upon payment of extension fee (ﬁxed at 6. Tata Group. ITES and electronics industries. IT Park facilities are also being planned in Ludhiana and Jalandhar by the state government. The clusters identiﬁed for development are for bicycles and bicycle parts in Ludhiana. employment generated. promoted jointly by the Department of Information Technology. Semi-Conductor Complex and IDS Infotech have their ofﬁces in Mohali. Mohali also has a Software Technology Park of India (STPI) unit. Reliance. technology involved. • Get the consent of ﬁnancial institution/ banks to advance loan for the proposed project or in case of self ﬁnancing. 30 per cent of plots measuring between 2. • IT Parks A STPI centre with a satellite earth station at Patiala has been approved by the Government of India. However. The state is committed to develop Mohali as the IT hub of north India. The scheme covers 15 per cent of all plots measuring between 1.5 per cent of the cost of plot).Infrastructure in Punjab Industrial infrastructure To accelerate the pace of industrialisation. if any. which examines them from the point of view of land requirement. export earnings. submit proof of own sources. Besides facilitating land allotment. a food testing laboratory and a grading and packag- . Dell. steel re-rolling industry in Mandi Gobindgarh. possession of the plot/ land is offered by the concerned developing agency. This is supported by an automated nursery. viability of the project.for the promotion and growth of the IT. The applicant is further required to take the following steps within one year from the offer of possession: • Start construction of building and incur expenditure up to 30 per cent of the cost of civil works. the state has already built sector-speciﬁc infrastructure as follows: • Electronics Township (ELTOP). the land is allotted. Infosys. • Food Park Project Punjab Agri Food Parks Ltd (PAFPL).
• Punjab Agricultural University. Ludhiana. with the condition that units shall pay peak load charges. is also under development. The state is encouraging private sector participation in the areas of technical and vocational education. and the Central Institute of Hand Tools. The state has already achieved the target of one primary school within a kilometre’s radius of each inhabited village.000 metric tonnes capacity. SEZ status has been granted to Quark City in Mohali to promote IT and Electronics industries. o Exemption from sales tax on ﬁnished goods sold within the country for a period of ﬁve years and on exports. This is one of India’s largest and most sophisticated integrated vegetable and fruit processing complex and is supported by a frozen storage facility and a cold storage facility.000 sq yds. electricity duty (restricted to ﬁve per cent of basic electricity duty. with additional ﬁve per cent payable towards social cess) on power purchased from the State Electricity Board and for consumption within SEZ. 440 primary health centres and 1. o Exemption from sales tax on purchase of machinery and materials used for establishing the park and individual units.PUNJAB PAGE 11 ing house. Covering over 90 per cent cases of non-hospital care and over two-thirds of the cases of hospitalised care.480 dispensaries/ clinics.has set up a premier superspeciality facility in the state. Ludhiana. exhibits better health ratios as compared to the national average. Fortis Healthcare from the promoters of Ranbaxy . • Biotech Park The Punjab State Council for Science and Technology has set up a Biotech Park at Dera Bassi near Chandigarh in public-private partnership with Beckons Industries. each having 5. • The state is home to two prominent engineering colleges. as per the Government of India’s policy. There is a vast network of institutions for imparting higher education. healthcare and environment. stamp duty and registration fee (excluding the three per cent surcharge for Social Welfare Fund) on ﬁrst sale of land in SEZ and education/ infrastructure/ any other cess. In Punjab. The company has also initiated . have played a major role in training manpower for the hand tools industry. is a world-class institute involved in agricultural research.000 students joining primary schools every year and over 230. • Apparel Park Punjab Small Industry and Export Corporation Ltd and the Association of Textile Industry are jointly establishing an integrated textile park at Doraha in Ludhiana district. SEZs are considered to be deemed foreign territory for tariff and trade operations.000 studying up to Class 8. octroi. which will offer enterprise development support for biotech companies. purchase tax. education and consultancy. being amongst the more prosperous ones in the country. A Biotech Incubator will be an integral component of this park. all SEZs get exemption from payment of taxes like sales tax / VAT. and Thapar Engineering College. is expected to promote establishment of large. The proposal includes the following: o Exemption from stamp duty and registration fee for ﬁrst sale. o Exemption from payment of electricity duty for a period of ﬁve years and zero duty on own generation of electricity by the Apparel Park. Ranbaxy’s SEZ at SAS Nagar. private health services dominate curative health. • Central Tool Room. while inprinciple approval has been given to seven. oriented towards export promotion. especially technical education. to conduct research work in the areas of agriculture. • Special Economic Zones (SEZs) Development of SEZs. o Freezing of electricity tariff by the Punjab State Electricity Board for a period of ﬁve years. Formal approvals have been given to six more SEZs. Jalandhar. PAFPL has also set up a model farm. Phase 1 is being developed over an area of 92 acres at a cost of over $105 million. A special package is proposed to be extended to this park under the Mega Project Scheme of the Department of Industries & Commerce. The private sector is the major provider of health services in Punjab. self-contained areas supported by world-class infrastructure. which raises seedlings to be provided to farmers.Various incentives are provided under the Biotech Policy for setting up business units in the park. with about 360. with no time limit. Punjab is home to various leading higher education institutions. The ﬁrst cluster in this park would comprise 10-15 industrial units in agri-biotech and health care sectors. Patiala. Pushpa Gujral Science City in Jalandhar. Medical & Health Care Facilities Punjab has 205 hospitals. having 115 industrial plots with an area between 625-10. The state. National Institute of Technology. • The government has decided to set up the National Institute of Biotechnology. • It has an international level science centre. Educational Infrastructure The state has a strong primary education network. Jalandhar. Mohali.
the average population served by a bank ofﬁce is 9.230 3. Statistical Abstract of India talks with the Punjab Government for setting up a medical city project. As part of this initiative. which increased to 4. Apollo Hospitals has also commissioned a state-ofthe-art SPS Apollo Hospital in Ludhiana with 65 beds.425 .4 All-India The per capita credit in the state is the fourth highest in the country. The state government is laying stress on widening.6 7 49 1. at $683 in Punjab. The per capita consumption of electricity in the state is currently at 940 kWh.536 24. Bathinda and Rajpura. and is the second highest in the country. Infrastructure for savings and borrowings Infrastructure for collection of savings and disbursal of credit is very strong in the state.000 beds.486 12. The road density in Punjab is 1. Punjab has an air cargo complex at Amritsar. The state is also attractive in terms of the number of ﬁnancial institutions. which is higher than the national average of 7.176 20. Road Road transport has been vital in the economic progress of Punjab.960 2. The main railway routes passing through Punjab are Amritsar-Ambala-Delhi.68 km per sq km. The state is the ﬁrst in the country to have 100 per cent connectivity with rural areas with metalled roads.21 km per sq km. Ludhiana. It proposes to construct express highways for speedier vehicular trafﬁc. even in rural areas. Physical Infrastructure Transport Punjab’s infrastructure in terms of rail.049 MW. with the railway line length in the state at 2.0 64.Comparison of health indicators Punjab Population served per Doctor Population served per medical institution Birth rate* Death rate* Infant mortality rate** Male Female * Per thousand persons ** Per thousand live births Life expectancy at birth (years) 69. 1. Europe and North America. strengthening and expansion of the existing road network. Projects have been taken in a big way for the upgradation of Chandigarh-Ludhiana. The per capita bank deposit. Ferozepur-Ludhiana-Ambala. Zirakpur-Patiala. Civil Aviation The state has a domestic airport at Chandigarh and an international airport at Amritsar. next only to Maharashtra. It plans to set up a 350-bedded multi-specialty hospital in the state in the near future. the Middle East. a corridor of Chandigarh-Ludhiana highway is proposed to be taken up.098 km. Railways Punjab is well connected by rail network. which is also one of the major reasons for its contribution to the Green Revolution. with ﬂights connecting to countries in Asia. As per CMIE estimates . Power The total installed power capacity in 1990-91 was 3.8 8.even in comparison with other developed states like Maharashtra. road and transport network is amongst the best in the country. Tamil Nadu and Karnataka.757 838 87 5 .8 72.460 MW in 2005-06.1 63 Source: Statistical Abstract of Punjab. Financial institutions in Punjab Co-operative societies Primary agricultural credit societies Post ofﬁce saving banks Indian commercial banks Co-operative banks Primary agriculture development banks Foreign banks Source: Reserve Bank of India 21. The all-India average stands at 16. SriganganagarAmbala-Delhi. The state provides a conducive environment for trade and cargo export within and outside India. Pathankot-RupnagarFatehgarh Sahib and Sriganganagar-Bathinda-Narwana.amongst the healthiest in the country . is much above the all-India average of $463. Amritsar. A new domestic airport is to be set up at Halwara (Ludhiana).1 65. Ropar-Nawanshahar and Jagraon-Nakodar highways.607 26. which will set up several hospitals with a total of at least 1.152 persons. It scores 210 against a national average of 100 in the Infrastructure Index of the National Council of Applied Economic Research (NCAER).985 3. an inland container depot at Ludhiana and container freight stations at Jalandhar.
05 million CDMA mobile users as on 30th June 2006. The decisions of the state board are ﬁnal and binding.960 post ofﬁces. Superintending Engineer/ Executive Engineer of PSEB. Labour Department. chaired by the deputy commissioner. The state board. District Single Window Clearance Committee for each district in the state. has powers to grant exemption/ relaxation from any of the provisions/ rules of the Punjab Industrial Facilitation Act. Directorate of Industries District Industry Centre Purpose Composition Act as District level committee for Single Window Clearance .3 kWh. 2005 and other state laws relating to industrial development. Punjab State Industrial Development Corporation. has powers to grant exemption/ relaxation from any of the provisions/ rules of the Punjab Industrial Facilitation Act.Convened by the General Manager. Punjab Finance Corporation. Key Nodal Agencies for Single Window Clearance Udyog Sahayak Purpose State-level Nodal Agency for Single Window Clearance . two thermal power plants have recently been announced at Talwandi Sabo in district Mansa and Nabha in district Patiala. Pollution Control Board. The agriculture and the industrial sectors in Punjab are power intensive sectors. developing captive power plants and adopting non-conventional sources for power generation. District Industries Centre and includes Environmental Engineer of Punjab Pollution Control Board. while in the CDMA domain the key players are Reliance and Tata. Punjab Agro Industries Corporation. chaired by the chief secretary. 380 telegraph ofﬁces and 1. District Ofﬁcer of Housing and Urban Development Authority and the Assistant Director of Factories . The main players in the GSM segment are Bharti Airtel. Telecom According to the Cellular Operators Association of India (COAI) and the Association of Basic Telephone Operators. 3. The state has 3. The empowered committee on Industrial Facilitation. Punjab Small Industries and Export Corporation. All the inhabited villages in the state have already been electriﬁed. BSNL has a strong subscriber base among ﬁxed line users. Punjab Infotech. the state government approved 23. 2005 and other laws relating to industrial development. and with principal secretaries of concerned departments as members. The senior-most ofﬁcers of concerned departments in the district are members of the committee. Spice and Hutchison Essar.200 MW. reducing transmission and distribution losses. In order to achieve self-sufﬁciency in power. In 2006-07. To meet the growing demand for power.Ofﬁcers from the Punjab State Electricity Board. The state also has abundant non-conventional energy sources of biomass and solar energy. for speedy implementation of industrial projects by providing single point clearances to entrepreneurs.1 per cent of its budget outlay to be spent on the energy sector. and forwards cases to an empowered committee.71 million GSM mobile users and 1. which reviews and monitors the processing of applications with the competent authority and the applicant. which have contributed in improving connectivity.Handles a Composite Application Form from entrepreneurs and assists in getting clearance from various departments within the stipulated time period . It has also notiﬁed each District Industry Centre to act as a District Level Nodal Agency to provide ofﬁcial support or any other relevant information to the district committee and forward applications complete in all respects for clearances to the concerned competent authority. guidance and information to investors about policies and programmes of the state.528 telephone exchanges. The decisions of the empowered committee are ﬁnal and binding on the district committees and the competent authorities.Provides sanctions/clearances for setting up small scale industrial units in the state . with the chief minister as its chairman and ministers as members. Key Nodal Agencies The Government of Punjab enacted the Punjab Industrial Facilitation Act 2005. the Punjab Circle had 4. the government is focusing on maximising utilisation of existing capacities.It also provides escort services.PUNJAB PAGE 13 nearly 2.5 times the all-India per capita consumption of 390. monitored by Empowered Committee Composition . each having a capacity of 1. 2. The state government has implemented the following three-tier single window clearance structure: 1. The state government has notiﬁed the Udyog Sahayak of the Directorate of Industries as the State Level Nodal Agency.
It has already set up 38 industrial focal points and a Trade Information Centre at Chandigarh for offering information services related to international trade. • Grant of concessions to multiplexes under Industrial Policy 2003. PFC provides loans up to a limit set up by the State Financial Corporation Act. agro parks. to facilitate the approval of various projects for the development of export infrastructure like export-oriented parks. WTO and its new regime and problems relating to central excise and custom duties. handles a Composite Application Form from entrepreneurs and assists in getting clearance from various departments within the stipulated time period. Ofﬁcers from the Punjab State Electricity Board (PSEB). . It regularly conducts seminars on export procedures and documentation. The committee is convened by the general manager. PAIC assists investors in obtaining all the necessary approvals for new projects and facilitates contract farming in the state. expansion of existing units and revival of sick concerns in the state. Udyog Sahayak. District Industries Centre. District level Single Window Committee The single window committee. ICI (paints) and HPCL– Saudi Aramco (mega project for gas). machinery. and reservation of land plots for export-oriented units. Labour Department. To implement the provisions regarding approval of industrial parks and projects as laid down under the Industrial Policy 2003. functioning at the district level. Punjab Finance Corporation (PFC) PFC provides medium and long-term loans for new industrial units. Punjab Infotech. Punjab State Industrial Development Corporation Ltd (PSIDC) PSIDC promotes large and medium scale projects in the state and provides escort services. It has been instrumental in facilitating projects of Godrej-GE (white goods).Udyog Sahayak (Industrial Facilitation Cell) for single window clearance The special cell. It also acts as an infrastructure developer and ﬁnancial facilitator. Punjab Small Industries and Export Corporation. 1995. A state level export promotion committee (SLEPC) was constituted under the chairmanship of the chief secretary. from the provisions of Punjab Apartment and Property Regulation Act. an empowered committee headed by the chief secretary has been constituted. Punjab Agro Industries Corporation (PAIC) PAIC acts as the promoter for agro-based industries in Punjab and provides inputs such as fertilisers. Its members include the environmental engineer of Punjab Pollution Control Board. These members procure the requisite clearances from their respective departments and provide guidance to entrepreneurs to facilitate timely implementation of their projects. set up to facilitate the establishment of new industrial units. Punjab State Industrial Development Corporation. estates. is chaired by the deputy commissioner. It is also responsible for setting up industrial focal points. seeds and pesticides to farmers. The committee considers the following approvals: • Exemption to industrial parks. superintending engineer/ executive engineer of PSEB. IT Parks. • Speciﬁc industrial project under the Industrial Policy 2003. Century Textiles (pulp and paper). Gujarat Ambuja (cement). • Special incentives for projects related to tourism under the Tourism Policy. Pollution Control Board. • Amendments/ modiﬁcations in the deﬁnition of ITES/ Electronics/ Biotech units covered under Industrial Policy 2003. Punjab Finance Corporation. district ofﬁcer of Housing and Urban Development Authority and the assistant director of factories. Punjab Agro Industries Corporation and Directorate of Industries have been positioned at the Udyog Sahayak. 1951. It provides sanctions/ clearances for setting up SSI units in the state. Punjab Small Industry and Export Corporation Ltd (PSIEC) PSIEC focuses on the development of SSIs in the state and promotion of exports.
Automatic clearance for sugar industry units for co-power generation. use of non-conventional sources of energy. Reduction in electricity duty to half the existing rate for mega textile projects for a period of ﬁve years and full waiver of electricity duty for a period of seven years for mega textile projects in the districts of Patiala.Load 101-500 KW: 12 weeks . developed mainly through private sector participation. no market fee and rural tax on commodities other than wheat and paddy. The key initiatives taken under the IT Policy 2001 are: • . Incentives to agro-based industries like permission for direct purchase of agricultural products from farmers. Setting up of new educational and training institutes for making skilled technical workforce available to the industry. exemption to private investors from the Punjab Apartment and Property Regulation Act 1995. electricity duty exemption for captive power generated for self-use.Load upto 20 KW: 8 weeks .Load from 20-100 KW: 12 weeks .Department of Sponsorship for Raw Industries Materials and inputs.2 weeks . Easy and quick clearance for projects through one-time settlement schemes and Udyog Sahayak. and exemption from payment of stamp duty on the ﬁrst sale/ transfer of developed infrastructure by the developer. with provisions to offer ﬂexible labour regime for these units.Load above 500 KW: 90 days Site approval/ environmental clearance Adequacy Certiﬁcate No Objection Certiﬁcate . Mansa. Constitution of the empowered committee to grant special privileges for projects of signiﬁcance. An Apparel Training and Design Centre has been set up in Ludhiana and participation of the private sector is being encouraged to strengthen apparel-related courses of Industrial Training Institutes and Polytechnics in the state.4 weeks . The key initiatives under this policy include: • State-level monitoring committees set up to oversee the implementation of the industrial policy in a time-bound manner. Muktsar and Ferozepur.Pollution Control Board . including permission for power generation for captive use. Bathinda. contribute to exports and to encourage textile clusters so as to improve business processes. • • • • • • • IT Policy 2001 The state government has devised an action plan to harness the potential beneﬁts offered by IT.8 weeks . setting up of distilleries and sale of power to other industries.Udyog Sahayak • • Implementation of VAT and replacement of octroi and entry tax with a single point local area development tax. Faridkot. Moga. Power sector reforms. The thrust areas are: • Maximum investment to be attracted under the Technology Upgradation Fund Scheme (TUFS) of the Central Government. apparel parks and integrated textile parks.Department of Environment . lesser number of regulations and speedy clearance of new projects.Investment incentive: 4 weeks . Assistance in land acquisition by the state government for setting up of mega textile units. Textile Policy 2006 The government initiated Textile Policy 2006 to facilitate and promote the growth of the industry.PUNJAB PAGE 15 Policy Framework Concerned Agencies and time estimates for starting business in Punjab Service/Facility Concerned Agency Timelines . Land Allotment Incentives . Enhancement of competitiveness of existing industrial units through capital subsidy and freight subsidy.Green Category: 15 days .60 days . Revival of sick industrial units through various subsidies. • Industrial Policy 2003 The Industrial Policy 2003 aims at infrastructure development. with assistance from the Government of India as well as private sector participation.Sales Tax exemption: 1 week . Infrastructure development through private sector participation by setting up Special Purpose Vehicles (SPVs). Creation of sound infrastructure in the form of textile clusters.Other incentives: 2 weeks Sanction of Loan Release of Power Connection . The state government has announced various investment friendly policies and initiatives.PSEB .4 weeks . minimal sales tax on packaging materials. Special incentives for industries proposed to be set up in border areas.30 days . Sangrur.Red Category: 30 days • • • Industrial License . having all necessary facilities at one place. achieve global standards in product quality.PFC/PSIDC .
crop diversiﬁcation and organic farming in the state. The thrust of this policy is on the following: • Power generation though small/ micro hydro projects. Implementation of e-governance projects in collaboration with the private sector. A 20-year prospective plan for development of tourism in the state has also been developed. • Setting up of the Punjab Tourism and Heritage Promotion Board under the chairmanship of the chief minister to accelerate the development of tourism industry in an autonomous way. in a time-bound manner through a single window mechanism within a period of 60 days. Setting up of agri-clinics and agri-business centres throughout the state to serve as nodal centres for information dissemination and kisan call centres to provide immediate and ﬁrst-hand information to farmers. Provision for purchase of electricity in whole or part (as required by the power producer) by Punjab State Electricity Board to ensure full utilisation of NRSE. The state has developed a Tourism Master Plan that emphasises on developing physical infrastructure such as access roads. Monitoring the implementation of IT projects in government departments by an Empowered Committee on Computerisation (ECC). Provision of government land. which will act as a biotechnology development centre to meet R&D. Clearances for all projects related to NRSE. which also acts as a single window clearance agency for expeditious implementation of IT projects. Setting up of a Venture Capital Fund dedicated to the IT Industry. permission to operate in three shifts and employ women in all shifts. having a target of 3-4 million Internet connections in the state by the end of 2008. reducing use of chemicals and improving food quality and nutrient contents. chemical and fertilisers and power generation from bio mass. tourist information centres and restoration of old monuments. besides holding craft fairs and cultural festivals. paper. Creation of Punjab Biotech Promotion Board (PBPB) to attract investment in the biotech sector. both at the school and college level.• • • • • • • Launch of a massive programme for rural and urban connectivity by setting up a “Punjab Wide Area Network”. Promotion of IT education among students. pilot scale testing and validation requirements of the industry. • Setting up of casinos of international standard for foreign tourists and ensuring adequate safety for them. • • • • • . The key highlights of the policy are: • • Creation of public awareness through workshops and training sessions on application of clean biotech technologies. human resource development grant for ﬁve years. The Tourism Policy focuses on: • Single window clearance facility for approving tourism-related projects in the state. for setting up NRSE Tourism Policy 2003 Punjab’s Tourism Policy focuses on developing hospitality-related infrastructure with private sector participation. Exemption of octroi on energy generation and NRSE devices/ equipment/ machinery for NRSE power projects. hotels. Fiscal sops like investment incentive at 30 per cent of the ﬁxed capital investment. educationists and government ofﬁcials. • Land allotment to entrepreneurs on easy terms for developing hotels on selective basis. exemption from payment of stamp duty for a period of three years. Provision for setting up a Biotechnology Institute. Promotion of public-private partnership (PPP) in agriculture extension. Regular monitoring of the implementation of the provisions of IT Policy by an IT Vision Group comprising top leaders of the industry. cogeneration of power in industries like sugar. projects at a nominal lease rent of rupee one per sq m for a period of 33 years. Tourism was declared as an industry in Punjab way back in 1996. Maintenance of a Renewable Energy Corpus Fund by the Punjab Energy Development Agency to assist and undertake activities towards commercialisation of NRSE projects and programmes. Biotech Policy Punjab has the potential to facilitate the growth of the biotech industry for improving crop yield through genetically improved plants. exemption from land and building tax. agricultural waste and solar energy. exemption from electricity duty for a period of ﬁve years. • • • New & Renewable Source of Energy (NRSE) Policy 2006 Punjab formulated the NRSE Policy 2006 to develop and promote new technologies based on renewable sources of energy and focus on energy conservation measures. if available. The government has set up a 17-member Biotechnology Council with the active involvement of experts to facilitate faster transfer of biotechnology to farmers.
Kit Kat. Milkybar. Milkmaid. Organic farming is gaining widespread recognition in the state. hybrid basmati and sunﬂower. The company started milk collection in Moga in 1961 and has expanded its operations to a network of more than 85. Pepsi Foods. bought by the contract farmers so that there are no disputes with the farmers. Mysore. Switzerland. whereby PAIC purchases the agriculture produce from farmers at a predetermined price on behalf of private buyers. IT and Telecom. whose industrial output was $2. Extension agencies of leading companies like Escorts. • Provision of soft loans for new tourism projects and expansion of existing ones by PFC and PSIDC. The state offers various incentives for the promotion of organic farming. Agro-Based Industries Punjab offers immense potential for agro-based industries. the state The prominent players in the food processing industry in the state are Nestle. o No house tax for the ﬁrst ﬁve years for new projects of classiﬁed hotels and restaurants and amusement parks that involve an investment of more than $43. to set up a demonstration.000 farmers. including free-of-cost consultancy and a 100 per cent subsidy on certiﬁcation fee charged by internationally accredited agencies. Nestle Milk. Two pre-cooling-cum-cold stores have also been set up. with prominent brand names such as Nescafe.PUNJAB PAGE 17 • Incentives to tourism-related projects like o Stamp duty at six per cent. In many households it has transformed dairying into a pure. Nestle India Nestle India is a subsidiary of Nestle SA. stand-alone commercial farming business. • Treatment of tourism projects at par with other industrial projects for availing incentives. As a boost to agriculture and agro-based industries. SGS International. waxing and grading centres with a capacity of ﬁve metric tonnes per hour for the kinnow fruit. The value of output of the agro-based industry grew at a CAGR of more than eight per cent between 2000-01 and 2004-05. Maggi. Chambal Agritech and Hindustan Lever have signed agreements with farmers to provide extension services and assured buyback of agri produce.500 litre . Internationally renowned certifying agency. o Lower road tax on tourist transport as compared to other states. Key industries and players in Punjab Industry attractiveness matrix High IT & Electronics Biotech Textiles Food processing Retail Policy thrust Medium Chemicals Metals Auto components Light engineering Low Medium Factor advantage High Punjab has a mix of industries .600 acres registering for organic farming of various crops. Godrej Agrovet and Cremica Foods. contributing nearly 20 per cent to the manufacturing output and about 14 per cent to employment in the state. Nestle Fresh ‘n’ Natural Dahi and Nestle Jeera Raita. exporters and the government. PAGREXCO has set up ﬁve mechanical sorting.000-2. the UB group for malting barley and Advanta India for hyola (high-breed rapeseeds mustard). o No entertainment tax on amusement parks that involve an investment of more than $43. Nestea. Nestle has been implementing a programme for installing farm-cooling tanks of 1. The Central Food Technology Research Institute. MILKFED. automotive and auto components. Bar-One. whenever felt necessary. PAGREXCO has taken about 600 acres government farmland on lease in the Ropar district. which have driven growth in the state’s economy. Notable contract farming agreements include those with the Tata Group for basmati rice. has set up an extension centre at Ludhiana for the development of the food processing industry. production and training centre for organic farming. Mahindra Shubhlabh. textile. government has launched a contract farming scheme.44 billion.000 for ﬁve years from the date of commencement of the policy. expenditure tax and service tax on the hospitality industry. Since 1995. light engineering goods. DCM. Pepsi Foods. With initiatives from the Punjab Agriculture Export Corporation (PAGREXCO). o No luxury tax. Milo.000. the beginning of 2005 saw 1. has been deployed to ascertain the quality of produce.agro-based. Other crops being promoted under this scheme include maize.086 farmers with about 5.
cheese. Cremica Foods Cremica Foods was established in 1978 as a small backyard enterprise for ice creammaking. Currently. through a special scheme Nestle is making available milking machines to those farmers who keep more than 20 cows and supply over 200 litres of milk per day. The company has planned an investment of $22 million for this processing unit as well as for the expansion of its rural retail initiative. butter. Pepsi and PAIC have together set up a greenhouse at the Agriculture Research & Development Centre. grocery. postal services and pharmacy. inclusive of its export turnover of $115 mil- MILKFED The Punjab State Cooperative Milk Producers’ Federation Ltd.capacity at the primary agency level. its 100 per cent fruit juice brand. Godrej Agrovet Ltd Godrej Agrovet Ltd. Ready availability of raw material gives Punjab a competitive advantage in the textile sector. Cafe Coffee Day and Barista. The company has also committed funds to develop a comprehensive agro-technology programme with the Punjab Agricultural University. has signed a Memorandum of Understanding (MoU) with the Punjab Government to set up a manufacturing plant for its Real Good brand of fresh. Aadhaar. The sector had revenues of over $2. a strong network of about 6. Pepsi has deployed the agri-research team of Tropicana. buttermilk. also known as MILKFED. The company is one of the largest employers in the region. The city is home to well-known textile companies like Trident.000 milk producers’ cooperative societies and about 36. biscuits. Abhishek Industries Abhishek Industries is part of the Ludhiana-based Trident Group. writing and printing paper and chemicals. footwear.75 billion in 2004-05. It is investing $66 million in its textile business and $155 million in paper and co-generation of power in the state. Nahar Exports and Nahar Industrial Enterprises. two cattle feed factories and a seed processing factory. toppings. It is the second largest producer of cotton and blended yarn and the third largest producer of mill-made fabrics in India.5 million. The latter aims at setting up retail stores in rural areas. Indian Railways and Canteen Stores Department (Indian Army). candies and gourmet ice creams. market their produce and to provide technical inputs for enhancement of milk production.Vardhman Group and Nahar Group. Its famous Verka brand of dairy products includes milk. kitchenware and home appliances to value-added services including banking. has been involved with the development and promotion of contract farming in Punjab.000 milk producer members. toffees. to source oranges from the state for making juice. a subsidiary of Godrej Industries. curd. to produce chillies. Nahar Group Ludhiana-based Nahar Group’s portfolio comprises spinning. fabrics and hosiery garments. and it also supplies to leading retail chains in the US and Europe. The company has internationally certiﬁed production facilities and has established itself as a leading supplier to global and Indian food giants like McDonalds. bread. stabiliser blends. Today it is a widely diversiﬁed food products company with sales of $25 million in 2005-06. Pizza Hut. It is a leading supplier of terry towels to Wal-Mart and JC Penny. Nahar Spinning Mills. chilled chicken. as well as institutional customers like Jet Airways. Indian snack foods. knitting. United Nations (World Food Programme). The Group had a turnover of $450 million in 2005-06. milk powder. contributing over 21 per cent to manufacturing output and 24 per cent to industrial employment in the state. It has a turnover of $14. apparel. while the remaining amount is adjusted with the dues accruing from the sale of milk. ice creams and ghee. Jalandhar. Its products are exported to 37 countries. to encourage and commercialise citrus cultivation. syrups. including exports of $250 million. furniture. Ludhiana district is often dubbed as the “Manchester of India”. The sector’s output showed an impressive CAGR of over eight per cent between 2000-01 and 2004-05. The farmers have to pay upfront a part of the cost of the machine. basmati rice and groundnuts. providing an array of services from provision of food items. Textile Industry Punjab’s textile industry is strong on all aspects of the value chain – from the raw material stage to ﬁnished products (garments/ made-ups). came into existence in 1973 to provide remunerative prices to milk producers. Pepsi Foods Pepsi Foods. which has business interests in textiles (terry towels and yarn). buns. mayonnaise. Its products include sauces. . potato. 10 milk plants. it has four companies – Oswal Woollen Mills. a part of PepsiCo USA.
comprising lathes. Africa and America. The company started exports to Africa and the Middle-East in 1963. It sells tractors under the Sonalika and CLASS brands. pullers. vices. Canada. It has invested signiﬁcantly in backward integration and has facilities for manufacturing almost all the parts needed for bicycles. It is home to one of the world’s largest bicycle companies. Hong Kong. It produces cotton yarn. through International Tractors Ltd. The units cater to both the original equipment manufactures and replacement markets. Hand tools like wrenches. screw drivers. Hero Cycles Ltd. covering 120 cotton farmers and a cultivated area of 1. GNA Group is a key player in the auto component space. more than 50 per cent of its bicycle exports are to Europe and America. hand drills. pliers and spanners are mainly manufactured in Ludhiana and Jalandhar. The company has three milling units. Bangladesh. It has a marketing . Sewing machines and their parts are manufactured in Jalandhar. Punjab is also strong in tractor production with about seven per cent of the country’s tractors being produced in the state. of which two are situated at Barnala in Punjab. hand tools. Light Engineering Goods The light engineering goods industry. It produces about 1. The products range from simple items like nuts and bolts to complex ones like shafts. It manufactures over 5. It is amongst the largest producers and exporters of yarns and grey woven fabrics. The company has entered into a strategic alliance with YANMAR of Japan for joint manufacturing of tractors in India.6 million cycles per annum. It has a state-of-art manufacturing facility at Hoshiarpur. It manufactures 37. acrylic yarn and polyester viscose yarn. Both companies are located in Ludhiana. Sonalika Group The Sonalika Group. It is involved in cotton contract farming in the state. The other major producer of bicycles is Avon Cycles. It had a nearly 21 per cent share in manufacturing output and more than 25 per cent share in industrial employment in 2004-05. Automotive & Auto Components Industry The automotive and auto component industry is dominated by SSI units. sewing threads and acrylic ﬁbre. International Tractors Ltd (Sonalika Group) and Punjab Tractors Ltd (Swaraj Enterprises) are located in Punjab.000 tractors per annum in a broad range from 30HP to 90HP. Zimbabwe. The Engineering Exports Promotion Council awarded Hero Cycles with the best exporter award for the last 28 years in succession.241 acres. A co-generation power project with a capacity of 17 MW will be set up at the park. Two leading tractor manufacturers. Korea and Europe. radiators and axles. Senegal and Ghana. Its tractors are also exported to South Africa. which includes bicycle and bicycle parts.5 million bicycles per annum and exports to more than 80 countries. Avon Cycles Avon Cycles is another leading bicycle manufacturer. sewing machines and machine tools. Europe. Sri Lanka. The company is developing a range of electric bikes and scooters. The machine tools industry. It is also the largest producer of tyre cord yarns and the second largest producer of sewing threads in the country. hammers. Punjab accounts for 15 per cent of bicycle production and 80 per cent of bicycle parts production in India. is concentrated in Batala and Ludhiana. The Nahar Group plans to enter the retail sector in the state. drilling machines and special purpose machines for different industries. Japan. Vardhman Group The Ludhiana-based Vardhman Group is one of the largest textile conglomerates in India with interests in specialised yarns. The World Bank has recognised the company as a role model in vendor development based on a worldwide study. shapers. is another major sector in Punjab. milling machines. Hero Cycles Hero Cycles is part of the Hero Group and amongst the world’s largest producers of bicycles. Algeria. fabrics.PUNJAB PAGE 19 lion. to manufacture high-end bicycles. The company has tied up with National Bicycle Industries. Malwa Group The Malwa Group is amongst the top-10 textile groups in India. Avon is recognised by the Government of India as a `Golden Trading House`. Zambia. The group plans to invest $233 million for a 550-acre integrated textile park near Lalru in Patiala district. It has also ventured into production of readymade garments for well-known international brands. The company has a strong presence in Japan. The company exports all types of yarn to countries in Asia. Many units with superior technology and high product quality also export their products. Oswal Woollen Mills is associated with popular brands like Monte Carlo and Canterbury. is one of the top ﬁve tractor manufacturers in India. Australia. Today. including steel balls. a part of Matsushita Group.
Hindustan Petroleum Corporation Ltd (HPCL) HPCL is one of India’s largest oil reﬁning and marketing companies. Tractors and Farm Equipment Ltd and Escorts Tractors. The India Development Centre (IDC) at Mohali is Quark’s largest R&D centre worldwide. Quark Quark. GNA has the largest integrated plant of its kind in Asia for manufacturing auto components. with a corpus of $4. Maruti Udyog. the joint venture. Several large IT companies. It is setting up a reﬁnery project in Bhatinda in the form of a joint venture with Mittal Investments.5 million in 2005-06. GNA Group The GNA Group.000 sq ft centre. Swaraj Mazda. hydraulic lift shafts. Ashok Leyland. funded jointly by PSIDC. The Guru Gobind Singh Reﬁnery Ltd.500 persons. The park will also provide beneﬁts of an export processing zone (EPZ) tailored especially for software and hardware units. Dell Inc Dell Inc launched its third customer contact centre in India at Quark City in Mohali. industrial electronic equipment. rice transplanters. . The Mohali centre provides employment to 1. currently under development at Mohali.arrangement with Tata International for development of select South American and African markets for sale of tractors. NFL is actively promoting the use of bio-fertilisers in the state and manufactures neem-coated urea at its plant at Bathinda. brake S-cam shafts and forgings for use in all types of light.200 SSI units have been set up in the electronics hardware segment. as part of the Government of Punjab’s disinvestment process. These produce personal computers. is a leading auto component player. a global IT giant. The Nangal unit has a production capacity of 778. Mohali has been developed as an IT and ITES hub. is part of the global network of 50 centres Dell operates around the world to provide technical support and customer care to its customers. mini buses and ambulances. National Fertiliser Ltd (NFL) NFL is the second largest producer of nitrogenous fertilisers in the country. the company has a strong presence in the replacement market. with state-ofthe-art facilities. including Quark. steering components. Punjab Infotech. light commercial trucks. over 1. with a contribution of more than ﬁve per cent to the entire segment in India. The company was promoted by PSIDC as the country’s ﬁrst large-scale. television sets. It has two manufacturing units at Bathinda and Nangal. It also manufactures harvester combines. The Electronic Test & Development Centre at Mohali provides testing facilities. Quark has a product line that ties together traditional print publishing and content management for publishing and non-publishing enterprises. Luxembourg. radios. is a leader in desktop publishing for workgroups and enterprises.75 million. J. Software exports from the state were worth $44.8 million. which is likely to double. propeller shaft assemblies. Punjab Tractors Mohali-based Punjab Tractors manufactures and sells tractors under the brand name Swaraj. The state has launched an IT-dedicated venture capital fund. wheel spanners. It includes petrochemicals. will cater to the infrastructure requirements of the IT industry and other knowledge-driven companies. automotive seatings and components. crosses. Chemicals & Chemical Products Chemical-related industry is another sector with promising prospects in Punjab. forklifts. In 2003. while the Bathinda plant has a capacity of 511. The project is expected to be completed by September 2010. IT & Electronics Industry Punjab’s IT Policy and the incentives offered to the IT industry are aimed at promoting the state as an attractive destination. operate out of Punjab. diesel engines. Eicher Motors. PFC and SIDBI. Over the past few years. Quark Business Park.000 tonnes.000 tonnes of urea. electronic instruments. tools and components. with plants in Jalandhar and Hoshiarpur. manufacturing rear axle shafts and U. Future growth in this sector is expected to be determined by the Hindustan Petroleum Corporation Ltd reﬁnery project as well as fertiliser production in the state. Besides supplying to automobile majors like Tata Motors. The 180. a majority stake in PTL was sold to UKbased CDC Group Plc. will have a capacity of nine million metric tonnes per annum for processing downstream chemicals. chemicals and fertilisers. Dell and Infosys. totally indigenous project to manufacture tractors. It was set up in 1998 with an investment of $17. medium and heavy vehicles.
From only two malls having 270. Jalandhar. Fun Republic and DT Cinemas plan to have their multiplexes/ cinemas in various cities.000 sq ft of space in 2006. Retail & Entertainment Punjab has witnessed signiﬁcant investments in the retail sector in the past few years.PUNJAB PAGE 21 Infosys Technologies Infosys Technologies is one India’s leading software services ﬁrms providing consulting and IT services to clients globally. over 33 malls are expected to be operational by end-2008. with gross leasable space of 15. which will be a one stopshop for shoppers. Ludhiana and Mohali. . Mohali and Amritsar are fast emerging as prominent retail destinations. Patiala. The DLF Group plans to develop retail malls. has announced the development of 60 malls and multiplexes in Punjab with an investment of $450 million. Delhi. Key players like PVR.2 million sq ft. Waves. The company has nine development centres across the country. Sound infrastructure and high disposable incomes of households are the prime factors encouraging the fast growth of the retail sector. with the one at Mohali set up in 2001. collaborative software engineering. and distributed project management. Spirit Global Constructions. Jalandhar and Ludhiana. ofﬁce productivity. Omaxe is setting up a wedding mall in Patiala. Adlabs. Shringar. The Mohali centre is equipped with latest technologies and solutions for enterprise networking. More than 200 projects in retail and location-based entertainment have been approved by the empowered committee under fast-track clearance. an SEZ and shopping centres in Amritsar. Ludhiana. The Ansal Group has planned an investment of over $33 million to develop luxury malls in Jalandhar.
Mohali.2709297 Email: pfcchd@sify. email@example.com weeks . Jalandhar) .85 cents per kWh . 2709295. Sector 17-B. Sector 31A Chandigarh.PSEB . Amritsar. Chandigarh 160017 Tel: +91 . 2709298.org Tel: +91 172 2602365 Source: Udyog Sahayak. 2722931.Other incentives: 2 weeks Sanction of Loan Release of Power Connection .com Punjab Small Industry and Export Corporation Ltd 18 Himalaya Marg. Block No.Udyog Sahayak Contact Information Udyog Sahayak (Industrial Facilitation Cell).US$ 150 to US$ 475 per month for a 2. 2709296.Agricultural Land: US$ 6 to US$ 30 (available for use for industrial purposes) Hotel costs** Cost of ofﬁce space*** Cost of residential space*** .4 weeks . 2715344. Punjab Government Website Cost Estimates The following are broadly the costs involved in conducting business in Punjab: Key cost elements in Punjab Cost Parameter Cost of land per sq mt* Cost Estimates .Department of Environment . 91-172-2776992 E-mail: firstname.lastname@example.org weeks .psiec.60 days .in .Load above 500 KW: 90 days Site approval/ environmental clearance Adequacy Certiﬁcate No Objection Certiﬁcate . Sector 17.30 days .6 43.7 45. 160030 Web: http://www. 2715320. 2702791 Fax: 91-172-2704145. Land Allotment Incentives .3 48. 2704805.in Punjab Finance Corporation 95-98. 2722934.Load upto 20 KW: 8 weeks . Website: www.Government Land: US$ 28 (upcoming industrial areas) to US$ 77 (key industrial areas of Ludhiana. Concerned Agencies and time estimates for starting business in Punjab Service/Facility Concerned Agency Timelines .US$ 105 to US$ 120 per room per night .Investment incentive: 4 weeks .in. Email: psidc@chd. Directorate of Industries.net. 2722945.6 48.com Confederation of Indian Industry (CII) Regional ofﬁce. 2722932 Fax No. 3 Dakshin Marg. Chandigarh 160017 Tel: 0172-2702401.Department of Industrial License Industries Sponsorship for Raw Materials and inputs.Red Category: 30 days .in Punjab State Industrial Development Corporation 18 Himalaya Marg. 2702301-05 Fax: 0172-2702039 E-mail: psiec@chd. Punjab **Source: Leading hotels in the state ***Source: Discussions with property dealers ****Source: Punjab State Electricity Regulatory Commission *****Source: Punjab Water Supply and Sewerage Board 2003 2004 2005 2006 2007 . Udyog Bhawan.Commercial & Industrial use: 8. 2702425 Fax: +91 -172 . 46. Chandigarh 160017 Telephone: 91-172-2715270.nic.04 45.Green Category: 15 days .PFC/PSIDC .Commercial & Industrial: 18 cents per 1000 litres Power cost**** Cost of water***** Appendix Exchanges rates used Year 2000 2001 2002 One USD is equivalent to Rs. Bank Square.gov. Chandigarh 160017 Tel : 91-172-2702881-84.Pollution Control Board .Sales Tax exemption: 1 week .2 45 42 *Source: Chief Coordinator Udyog Sahayak.172 . Sector 17.Load 101-500 KW: 12 weeks .8 weeks .Load from 20-100 KW: 12 weeks .35-50 cents per square foot per month .2708420.000 square feet house (Rates depend on the type of structure and location) .ciionline. Sector 17. Udyog Bhawan. Udyog Bhawan. 18 Himalaya Marg.Doing Business in Punjab Punjab’s single-window clearance facility under the Udyog Sahayak has ﬁxed time limits for key sanctions by respective departments as shown in the table below.nic.
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