Chandigarh, March 7: The Punjab Cabinet, in a meeting chaired by Chief Minister Bhagwant Mann on Saturday, affirmed the Punjab Industrial and Business Development Policy 2026. This comprehensive framework, supported by 24 sector-specific policies, was declared as a significant step to invite both new investments and the expansion of existing units across the state.
Under the new policy, investors have been granted the liberty to choose from 20 different incentive options to build their own customised packages. The government has introduced a fixed capital subsidy of Rs 20 crore for setting up Zero Liquid Discharge systems and Rs 7.50 crore for switching to paddy straw-based boilers. Furthermore, the eligibility period for investors has been extended from the existing 7-10 years to a period of 10-15 years.
Existing exemptions for SGST, stamp duty, electricity duty, and employment generation subsidies are maintained under the new rules. Additional support now includes freight subsidies, marketing assistance, and support for Research and Development facilities. The state has identified nine priority sectors, including food processing, textiles, electric vehicles, and defence, which are eligible for an additional 25 percent incentive. Similar benefits will also be extended to all industrial units established in border districts and the Kandi region.
The policy was developed after extensive consultation with stakeholders across various sectors. It aims to streamline industrial growth by offering diverse support systems, such as quality certification and patent registration, while exempting units from canal water user charges.
