Rs 3 cr for IT consultants,Rs 14 lakh for ads,new policy old wine in costlier bottle

Here’s a look at what changed between the old and new policies.

No change of land use (CLU) for new industry:There were no CLU permission and charges for industry before 2007. These were imposed by the SAD-BJP Government after coming to power; the new policy has only rolled it back.

Outsourcing of inspections:The provision existed in the old industrial policy,but could not be implemented in the state so far.

Environment clearances:The consent period for pollution certification was reduced to one year from the earlier five-year provision. The Government is now again trying to increase it to three years. The reclassification of industry on the basis of the level of pollution into red,orange and,and not investment,has been done as per international grading system. However,placed between red (highly polluting) and green (non-polluting),the third category of orange cannot be followed as it is and the Punjab Pollution Control Board is yet to work out specific parameters to modify it according to the state’s requirements. In fact,most state industries blame the PPCB for harassment and excessive controls.

Uninterrupted power supply to continuous process industry:Long power cuts and load restrictions are the bane for industry in Punjab. The promise of uninterrupted supply is too good to be true at least till the mega power plants come up or the state makes adequate power agreements to fill the widening demand-supply gap.

VAT reforms:It aims to address the two most important irritants for industries — harassment at information collection centres (ICC) and value added tax (VAT) refunds. However,the new provision of sample checking of one per cent vehicles passing through ICCs is not only fraught with operational difficulties but can also turn out to be a bigger sore point for those checked. It will also add to more evasion of tax and flouting of rules. The provision of VAT refund within 60 days,which presently runs into even two years,is also difficult to implement. Unlike income tax refunds,the traders are issued vouchers for treasury to claim VAT refunds. But there is no money in the treasury and refunds take several months,if not years,say industrialists.

Agro policy:With focus on the promotion of agro industry,the new policy has come up with new provisions for assisting centres of excellence,international certifications and patent registrations. However,most subsidies on marketing and export of fruits,vegetables and flowers and import of seeds and planting material for horticulture existed in the previous policy and have been made a part of the new policy.

Single window clearance:It was in force in the last two policies too. The success of the provision of a composite form for online clearance from departments will depend on the cooperation of other state departments. Deemed approval and punishment clause for delays could help expedite the process but not when objections are filed by other departments. “We have written to all departments to issue the necessary notifications within three weeks to implement the new policy and the same will be reviewed at the level of the chief secretary,” said Principal Secretary,Industries,S S Channy.

Tomorrow:Mega industrial projects: 18 during Badal Govt,125 in previous regime