Punjab-march-2015.pdf

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Punjab‟s fertile and productive soil has accorded it the status of „Granary of India‟ and the „Bread basket of India‟. Occupying only 1.5 per cent of India‟s geographical area, the state accounts for about 17 per cent* of the country‟s wheat production and 11 per cent of rice production. This makes it suitable for agro-based industries, dairy farming and products, and other food processing industries.

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Punjab has emerged as a key hub for textile-based industries including yarn, readymade garments and hosiery. With the development of apparel parks, favourable textile policy and other incentives for the creation of textile infrastructure, the state offers opportunities for investment.

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Punjab ranks first in India in terms of infrastructure facilities offered. Punjab‟s road, rail and air transport network, connectivity, construction of bridges and infrastructure facilities are among the best.

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Based on a World Bank study conducted in 2009, Punjab is considered the best place to do business in India. It was ranked the third most attractive destination in India for new investments in 2012-13. The state‟s policies, incentives for investors and overall macroeconomic factors encourage investment.

Granary of India

Textile hub

Best infrastructure facilities

Conducive business environment

Source: Statistical Abstract Punjab 2012, PHD Chamber, Aranca Research, Directorate of Economics & Statistics*4th Advanced estimates

Fertile and productive Growing demand land •

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The confluence of five rivers makes Punjab‟s agricultural land rich and productive. Approximately 85 per cent of the state‟s land is under cultivation compared with the national average of 40 per cent. Punjab is one of the largest wheat and rice producers in India. It is also a leading exporter of rice, including the well known Basmati variety.

High economic growth •

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Policy and fiscal incentives •

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Punjab offers industries with a wide range of fiscal and policy incentives under the Industrial Policy 2009 and 2013. The state has policies to offer sectorspecific incentives to sectors such as Information Technology (IT), SEZ and food parks.

Advantage Punjab

The average GSDP growth rate for the state of Punjab was about 14.1 per cent between 2004-05 and 201314. The state provides investment opportunities in sectors such as textiles, agro-based industries, IT & ITeS, automotive and auto components, sports goods and light engineering goods.

Strong infrastructure •

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Punjab has a well developed social and industrial infrastructure. Its transport network is one of the best in India, with easy access to key markets such as the Delhi-NCR region. Punjab has witnessed impressive growth in the number of clusters and hubs, with the establishment of several PPPs.

PPP: Public-Private Partnership, GSDP - Gross Domestic State Product

Connect all major towns by developing four-lane and sixlane highways. Establish Bus Rapid Transport Systems (BRTS) in all major cities in the state.

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Establish PHCs and specialty hospitals covering wider areas. Establish medical and nursing institutions to produce qualified healthcare professionals. Computerise government departments and adopt egovernance to enhance the ease of doing business. Attract investments from agrobased and service sector industries. •

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Provide quality education to all people, even in rural areas, by building one school after every 2 km. Aim to provide education with practical knowledge through workshops and industrial visits. •

Transport

Education •

Health

Industries

Vision 2022

Investment promotion

Environment

Agriculture

Diversify into other crops after considering their global market demand. Adopt technology in all areas of agriculture and encourage organic farming.

Infrastructure

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Encourage SMEs through adequate financing and policy initiatives to increase employment. Set up an SEZ in each region and develop backward and border areas. Check the diversion of agriculture/forest land for urbanisation and industrialisation. Ensure that industries adopt eco-friendly technologies and rainwater harvesting.

Adopt a mix of energy sources for power generation and at least one captive nuclear power plant. Build international airports in each of the regions of Majha, Source: Confederation of Indian Industry Malwa and Doaba. SME: Small and Medium Enterprises, PHS: Primary Health Centres

The state has three major seasons – summer (April-June), rainy season (July-September) and winter (October-March). Due to the presence of large rivers, most of the state is a fertile plain. The state has three major rivers flowing through it: Ravi, Beas and Satluj.

Parameters Capital

The state is bordered by the Pakistani province of Punjab to its west, Jammu & Kashmir in the north, Himachal Pradesh in the northeast, Haryana in the south and southeast, and Rajasthan in the southwest. The most commonly spoken language of the state is Punjabi. Hindi and English are the other widely used languages. Amritsar, Ludhiana, Jalandhar, Bhatinda, Mohali, Pathankot and Patiala are some of the major cities in the state.

Punjab Chandigarh

Geographical area (sq km)

50,362

Administrative districts (No)

22

Population density (persons per sq km)*

551

Total population (million)*

27.7

Male population (million)*

14.6

Female population (million)*

13.1

Sex ratio (females per 1,000 males)*

895

Literacy rate (%)*

75.8

Source: Government of Punjab website, www.punjabgovt.nic.in, Census 2011

Parameter

Punjab

All states

Source

3.0

100.0

Planning Commission Databook, current prices, October 2014

11.18

11.54

Planning Commission Databook, current prices, October 2014

1,733.2

1,833.24****

Planning Commission Databook, current prices, October 2014

10,255.7

258,701.5

Central Electricity Authority, as of January 2015

Wireless subscribers (No)

30,615,363

952,344,219

Telecom Regulatory Authority of India, as of January 2015

Broadband subscribers (No)

1,546,150**

94,490,000

Ministry of Communications & Information Technology, as of January 2015

2,136.2

96,260

Ministry of Road Transport & Highways, as of January 2015

3***

125

Airports Authority of India

Economy GSDP as a percentage of all states‟ GSDP

Average GSDP growth rate(%)* Per capita GSDP (US$)

Physical Infrastructure Installed power capacity (MW)

National Highway length (Km) Airports (No)

*Calculated in Indian Rupee terms, **As of March 2014 indiastat.com, ***Includes only operational airports, ,****As of December 2014

Parameter

Punjab

All states

Source

Literacy rate (%)

75.8

74.0

Census 2011

Birth rate (per 1,000 population) (2013)

15.7

21.4

SRS Bulletin (www.censusindia.gov.in), September 2014

1,331*

243,228

Department of Industrial Policy & Promotion, April 2000 to January 2015

35.9

2,414.2

CMIE (2013-14)

PPP projects (No)

42

1,339

www.pppindiadatabase.com

SEZs (No)

2

347

Notified as of March 2015, www.sezindia.nic.in

Social Indicators

Ease of Doing Business FDI equity inflows (US$ million) Outstanding investments (US$ billion)

Industrial Infrastructure

PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System, *Includes Chandigarh, Punjab, Himachal Pradesh and Haryana

54.7 52.5 49.6

CAGR 14.1%*

37.8

52.6

37.7 41.6

28.2

2013-2014

2012-2013

2011-2012

2010-2011

2009-2010

2008-2009

2007-2008

2006-2007

21.6 24.6

2005-2006

The state‟s GSDP increased at a compound annual growth rate (CAGR) of 14.1* per cent between 2004-05 and 201314.

GSDP of Punjab at current prices (in US$ billion)

2004-2005

Punjab‟s gross state domestic product (GSDP) was US$ 52.6 billion at current prices in 2013-14 as against US$ 21.6 billion in 2004-05.

Source: Planning Commission Databook, December 2014 *In Indian rupee terms

2012-2013

2013-2014

33.7

33.6

2007-2008

2008-2009

2010-2011

25.0

2009-2010

21.7

46.6

37.2

2006-2007

2004-2005

19.2

46.4

44.3

CAGR 14.1%*

Between 2004-05 and 2013-14, NSDP increased at a CAGR of 14.1* per cent.

48.5

2011-2012

NSDP of Punjab at current prices (in US$ billion)

2005-2006

Punjab‟s net state domestic product (NSDP) at current prices was US$ 46.6 billion in 2013-14 as against US$ 19.2 billion in 2004-05.

Source: Planning Commission Databook, December 2014 *In Indian rupee terms

The state‟s per capita GSDP at current prices was US$ 1,733.2 in 2013-14, up from US$ 830.7 in 2004-05.

GSDP per capita of Punjab at current prices (in US$) CAGR 12.1%* 1,376

1,348

2008-2009

1,708 1,849 1,762 1,733

2007-2008

Punjab‟s per capita GSDP expanded at a CAGR of 12.1* per cent between 2004-05 and 2013-14.

1,461

929 1,044

2013-2014

2012-2013

2011-2012

2010-2011

2009-2010

2006-2007

2005-2006

2004-2005

831

Source: Planning Commission Databook, December 2014 *In Indian rupee terms

Punjab‟s per capita NSDP at current prices was US$ 1,536.8 in 2013-14 compared with US$ 738.7 in 2004-05.

NSDP per capita of Punjab at current prices (in US$) CAGR 12.1%*

1,525 1,640 1,226 1,199

1,537

2013-2014

2012-2013

2011-2012

2010-2011

2008-2009

2007-2008

928

2006-2007

820

2005-2006

2004-2005

739

1,556

1,303

2009-2010

The state‟s per capita NSDP rose at a CAGR of 12.1* per cent between 2004-05 and 2013–14.

Source: Planning Commission Databook, December 2014 *In Indian Rupee terms

With a CAGR of 15.9 per cent*, the tertiary sector has been the fastest growing among the three sectors – primary, secondary and tertiary – from 2004-05 to 2013-14 and is also the largest contributor to Punjab‟s economy, contributing 49.2 per cent to the state‟s GSDP. The growth was driven by trade, hotels, real estate, finance, insurance, communications, transport and other services.

GSDP composition by sector CAGR* 42.6%

24.7%

The secondary sector rose at a CAGR of 13.4 per cent* between 2004-05 and 2013-14, driven by increasing manufacturing, construction and electricity as well as improved gas and water supply.

49.2% 15.9%

32.7%

13.4%

23.3%

11.9%

27.4%

2004–2005

The primary sector expanded at a CAGR of 11.9 per cent* between 2004-05 and 2013-14.

Primary sector

2013–2014 Secondary sector

Tertiary sector

Source: Planning Commission Databook, December 2014 *In Indian Rupee terms

Punjab‟s total food grain production for 2013-14 is estimated to be around 27.8 million metric tonnes*.

Crop Wheat is the major crop produced by the state, covering almost half of the cropped area. In 2013-14, estimated wheat production stood at 16.3 million metric tonnes. Punjab is the second-largest wheat producer in India; its wheat and rice contribution to the central pool is estimated at 43.4 per cent and 29.3 per cent, respectively, in 2013-14. In 2013-14, Punjab‟s total fruit production was 1.54 million metric tonnes.

Annual production – 2013-14 („000 metric tonnes)

Wheat

16,300**

Rice

10,815**

Sugarcane

560**

Cotton

1,635*

Maize

790***

Barley

60***

Gram

5^

Total oilseeds

119**

Total pulses

49**

Total food grain

27,801**

Total fruits

1,541

Total vegetables

3,936

Source: Economic Survey of Punjab 2013-14, National Horticulture Board, Final Production 2013-14, Directorate of Economics & Statistics, Department of Agriculture & Cooperation, Government of India *000 tonnes/bales; ^Provisional, **Estimated, ***Targeted, ^Provisional

According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows from April 2000 to January 2015 amounted to US$ 1,331 million*.

In 2013-14, outstanding investments in the state were US$ 35.9 billion.

Break-up of outstanding investments by sector (2013-14)

16%

6%

Manufacturing

1% Electricity

In 2013-14, the services sector maintained its highest share of outstanding investments, accounting for about 40.7 per cent. It was followed by the electricity sector with a share of about 35.8 per cent and construction & real estate with about 16.4 per cent.

36%

Services Irrigation

41%

Construction & Real estate

Source: CMIE, Department of Industrial Policy & Promotion (DIPP) *Includes Chandigarh, Punjab, Himachal Pradesh and Haryana

Total exports of industrial goods from Punjab were valued at US$ 4.4 billion in 2012-13. Exports during 2013-14 are anticipated to total US$ 4.3 billion*.

Principal items

Exports 2011-12 (US$ million)

In 2011-12, the state‟s principal export items were yarns and textiles, hosiery and readymade garments, rice, sports goods, bicycles and bicycle parts.

Yarn and textile Hosiery and readymade garments

670.5

Ludhiana, Jalandhar and Patiala accounted for around 91.9 per cent of Punjab‟s total exports of industrial goods in 2011-12.

Rice

461.0

Sports goods

353.2

Bicycle and parts

273.7

Engineering goods

187.1

Electrical switch gears and electrical accessories

139.1

Auto parts

138.7

Food products

64.7

Machine tools/hand tools

49.4

Punjab‟s exports (US$ billion) 4.4

4.4

4.3

3.8 3.4

2009-2010

2010-2011

2011-2012

2012-2013

2013-2014*

1,390.8

Source: Statistical Abstract Punjab, 2013 Economic Survey of Punjab 2013-14, *Projected

Punjab‟s government had estimated total receipts of US$ 17,217.9* million and planned total expenditure of US$ 11,665.9* million for 2014-15. The state‟s tax and non-tax revenue was estimated to be US$ 2,744.7* million and US$ 1,070.0* million, respectively, for 2014-15. Capital expenditure for 2014-15 was anticipated to be US$ 836.2* million. Expenditure on public order & safety affairs was projected to be US$ 1,887.0* million for 2014-15, while for economic affairs, it was estimated at US$ 1,196.0* million.

Annual Budget (Estimates in US$ million)* 2014-15 Revenue receipts

17,217.9

Revenue expenditure

11,665.9

Revenue A/C surplus

5,552.0

Capital receipts

405.6

Capital expenditure

836.2

Capital A/C deficit

430.6

Highlights of development program for 2014-15: An amount of US$ 706.7* million was earmarked for programmes related to urban development. The state has allocated US$ 285.3* million for water supply and sanitation projects, and US$ 592.9* for irrigation. A total provision of US$ 517.8* million was made for health & family planning for the state.

Source: Finance Department, Government of Punjab, White Paper Budget 2014-15 *Figures converted at an assumed exchange rate of INR 60 per US$

Punjab is well connected to its four neighbouring states and the rest of India through 12 National Highways (NH). The state‟s highways account for about 2.3 per cent of the total national highway network in India. Punjab Roadways was established in 1948, with a fleet of 13 buses. Punjab and East Punjab States Union (PEPSU) Road Transport Corporation, set up in October 1956, controls the road transport services in the state. Under the 12th Five-Year Plan, an outlay of US$ 15 million has been allotted to strengthening Punjab‟s road network and infrastructure. Of this, the Annual Plan 2013–14 awarded US$ 3.5 million for developing national and state highways.

Source: Maps of India

Road type

Road length (km)

National Highways

2,136.2

State Highways

1,477*

Major district roads

2,107

Rural roads

58,688

Source: Ministry of Road Transport & Highways, Department of Planning, Government of Punjab, Economic Survey of Punjab 2012-13 *As of March, 2012

The railways play a major role in the state, connecting major industrial units in the oil refining, cement, fertiliser, thermal power and manufacturing sectors to suppliers and markets.

Punjab‟s railway network spans about 2,156 km. It falls under the jurisdiction of Northern Railways that spreads across Punjab, Jammu & Kashmir, Haryana, Himachal Pradesh, Uttarakhand, Uttar Pradesh, Delhi and Chandigarh. The main inter-state railway routes are Amritsar-AmbalaDelhi, Sri Ganganagar-Ambala-Delhi, Ferozpur-LudhianaAmbala, Pathankot-Roopnagar-Fatehgarh Sahib and Sri Ganganagar-Bhatinda-Narwana. The state government is planning a metro rail project in Ludhiana on Public-Private Partnership (PPP) basis. Punjab is likely to get five new trains as announced under the Union Budget 2014-15.

Source: Maps of India

Punjab has three domestic airports in Chandigarh, Ludhiana and Pathankot. International flights operate from the Sri Guru Ram Dass Jee International Airport at Amritsar. New airports have been proposed at Mohali, Bhatinda and Ludhiana. They are at various stages of approvals and completion. Mohali airport is being elevated to the status of an international airport. Approval from the Indian Air Force (IAF) is awaited to kickstart construction of the new international airport in Mohali. The new greenfield Ludhiana Airport is proposed to be developed as an aerotropolis (a modern-age concept of a township-oriented airport similar to the Singapore and Frankfurt models), with a total outlay of US$ 3.8 billion. The Punjab government plans to build a new airport at Adampur district to serve the people of the Doaba region. International airport Domestic airport

As of January 2015, Punjab had total installed power generation capacity of 10,255.7 MW. It consisted of 5,041.4 MW under state utilities, 1,992.7 MW under central utilities and 3,221.6 MW under private sector.

Installed power capacity (MW) 10,256

Of the total installed capacity, 6,634.80 MW was contributed by thermal power, 3,090.08 MW by hydropower, 322.80 MW by renewable power and nuclear power contributed 208.04 MW to total capacity.

8,354 7,509

The Punjab Energy Development Agency (PEDA) is the nodal organisation for renewable energy development in the state.

7,019

2010-2011

In April 2010, the Government of Punjab unbundled Punjab State Electricity Board (PSEB) into two companies: Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (PSTCL). The state of Punjab had 100 per cent village electrification as of March 2014.

7,056

2011-2012

2012-2013

2013-2014

2014-2015*

Source: Central Electricity Authority *As of January 2015

The 12th Five-Year Plan allocated US$ 4.2 billion to Punjab‟s power sector, almost three times the outlay under the 11th Five-Year Plan. This is aimed at making the sector self reliant to meet the growing demand from consumers across the manufacturing, agriculture and services sectors.

The Annual Plan 2013-14 allocated US$ 532.3 million to strengthening the power generation system. Punjab has been focusing on maximising the use of existing capacities, reducing Transmission and Distribution (T&D) losses, developing captive power plants and adopting non-conventional sources for power generation. In 2011-12, Punjab‟s per capita electricity consumption was 1,225 kWh. The 540 MW Goindwal Sahib thermal power project awarded to the GVK Power Group in the private sector achieved financial closure in 2010. In August 2010, GVK proposed to expand plant capacity by 1,320 MW, which is under consideration by the state government. Two thermal power plants are to be constructed in the state. The first plant, which would be located at Talwandi Sabo in the Mansa district, would have total generation capacity of 2,640 MW and would be developed by Sterlite Energy Limited (SEL) on a Build-Own-Operate (BOO) basis. The second plant, located at Nalash village in the Patiala district, would have a total capacity of 1,320 MW and would be developed by Nabha Power Limited, a subsidiary of the engineering company, Larsen & Toubro (L&T). Source: Statistical Abstract Punjab 2012

According to the Telecom Regulatory Authority of India (TRAI), Punjab telecom circle had 30.62 million wireless subscribers and 1.15 million wire-line subscribers, as of January 2015. The tele-density* in the state was 107.23 per cent, significantly higher than the national average of 75.23 per cent, as of March 2014.

Telecom infrastructure Wireless connections (January 2015)

30,615,363

Wire-line connections (January 2015)

1,145,346

Broadband subscribers

1,546,150^

Post offices

3,850**

Telephone exchanges

1,496**

As of March 2013, the state had 1,496 telephone exchanges.

Major telecom operators in Punjab The state had 3,850 post offices as of March 2013. Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel Idea Cellular Vodafone Essar Reliance Communications Tata Teleservices Aircel Limited Source: Telecom Regulatory Authority of India, India Post, Department of Telecommunications Annual Report 2012-13, March 2014 press release, Statistical Abstract Punjab 2013, Economic Survey of Punjab 2013-14 *Tele-density: Number of telephone connections per hundred individuals; **As of March 2013, ^As of March 2014 indiastat.com

In 2011, Punjab ranked 8th among the urbanised states in India, with 37.49 per cent urbanisation rate. For 2005-14, the Government of India had allocated US$ 368.9 million to Punjab for 24 projects under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Under the Urban Infrastructure and Governance (UIG) programme, five additional projects have been sanctioned and are in transition phase. The JNNURM program was extended for two years i.e. 2012-14. An outlay of US$ 1,407 million was allocated under the 12th Five-Year Plan. Some of the key areas of development are roads and flyovers, water supply, sewerage and solid-waste management.

Chandigarh – The original planned city •

Chandigarh, the joint capital city of Haryana and Punjab, was developed as a planned city. It is also a union territory.

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Today, it has expanded in terms of industry as well as population.

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Chandigarh still remains a model for many other Indian cities in terms of civic amenities.

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It has one of the best electricity distribution systems in India. The Union Ministry of Power selected it as one of the few model distribution centres in the country.

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The Municipal Corporation of Chandigarh is responsible for its urban infrastructure facilities including water supply, sewerage, roads, slum development, fire service, environment, city beautification and house tax.

Source: JNNURM; Ministry of Urban Development, Government of India; Department of Planning, Government of Punjab

Sector

PPP type

Total project cost (US$ million)

Stage

Panipat-Jalandhar

Road

BOT-Toll

379.6

Construction

Amritsar-Pathankot

Road

BOT-Toll

117

Construction

Zirakpur-Parwanoo

Road

BOT-Toll

78.8

Construction

Kurali-Kiratpur NH-21

Road

BOT-Toll

51.3

Construction

Ambala-Zirakpur

Road

BOT-Toll

49.4

In operation

Jalandhar-Amritsar

Road

BOT-Toll

43.6

Construction

Amritsar-Wagha Border

Road

BOT-Annuity

34.2

Construction

Upgrading, operating and maintaining Ferozepur-Fazilka road

Road

BOT-Toll

17.4

Construction

Developing the Bhawanigarh-Nabha-Gobindgarh road project

Road

BOT-Toll

11.6

Construction

Greenfield super specialty hospital at Mohali

Healthcare

DBFOT

16.4

Construction

Greenfield super specialty hospital at Bathinda

Healthcare

DBFOT

22

Construction

Urban development

BOT-Annuity

29

In operation

Project name

Development of bus terminal cum commercial complex at Mohali

Source: pppindiadatabase.com, data as of January 2011, BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer

SEZs with formal approval Name/Developer

Area

Primary industry

QuarkCity India Private Limited (Notified)

Mohali

IT

Ranbaxy Laboratories Limited (Notified)

Mohali

Pharmaceuticals

Lark Projects Private Limited

Mohali

Electronic hardware and software including ITeS

Nenetpur and Jawaharpur

IT/ITeS

Sukhm Infrastructure Private Limited

Mohali

IT

ATS Estates (P) Limited

Patiala

IT/ITeS

Shipra Estate Limited

Mohali

IT/ITeS

Amritsar

Textiles

Chandigarh Administration

Chandigarh

Electronics and IT/ITeS

Chandigarh Administration

Chandigarh

IT/ITeS

Sukhmani Towers Private Limited

Ishan Developers & Infrastructure Private Limited

Source: www.sezindia.nic.in

Punjab has a literacy rate of 75.8 per cent according to the final data of Census 2011; male literacy rate is 80.4 per cent and female literacy rate is 70.7 per cent. At 85.4 per cent, Hoshiarpur district has the highest literacy rate in Punjab. Literacy rate in Punjab‟s urban areas is 83.2 per cent and in rural areas is 71.4 per cent (based on the 2011 Census).

Category

Literacy rate (%)

Overall

75.8

Male

80.4

Female

70.7

Higher education infrastructure (2011-12) The state had 102 engineering polytechnic colleges as of 2011-12.

colleges

and

127

As of September 2012, the state had 10 universities. Panjab University is more than a 100 years old and is well regarded globally. The Punjab Agricultural University in Ludhiana is well known for its contribution to education, research and extension services in the field of agriculture. The state government is planning to set up an Indian Institute of Information Technology (IIIT) in Kapurthala.

Universities

10*

Arts, commerce, home science and science colleges

238*

Engineering colleges

102

Polytechnic colleges

127

Management institutions

124

Position of elementary and secondary education (2011-12)* Primary schools

15,334

Middle schools

5,730

High/senior secondary schools

8,882

Source: Department of Planning, Annual Plan 2012–13, Government of Punjab, Economic Survey of Punjab 2013-14, University Grants Commission, Annual Report, 2011-12, *As of September 2012

Major educational institutes in Punjab are:

Punjab‟s primary education statistics (2012-13)

Indian Institute of Science Education and Research (IISER), Mohali.

Net Enrolment Ratio (NER)

Primary: 89.0 Upper primary: 70.3

Institute of Nano Science and Technology (INSE), Mohali.

Gross Enrolment Ratio (GER)

Primary: 111.2 Upper primary: 96.7

National Agri-Food Biotechnology Institute (NABI), Mohali.

Dropout rate

Primary: 1.44 Upper primary: 1.45

Indian School of Business (ISB), Mohali. Postgraduate Institute of Medical Education and Research (PGIMER), Chandigarh. Indian Institute of Technology, Ropar. University Business School, Chandigarh. Punjab Agricultural University, Ludhiana. National Institute of Technology, Jalandhar.

Source: Department of Planning, Government of Punjab, University Grants Commission GER: Gross Enrolment Ratio – Number of students enrolled in school at different grade levels; NER: Enrolment of the official age-group level education as a percentage of corresponding population, National University of Education Planning and Administration

Punjab ranked third among all Indian states on the education development index in 2011-12, up from seventh position in 2010-11. In the 12th Five-Year Plan, the state was allocated US$ 1.8 billion to develop its education system. Major thrust areas under the 12th Five-Year Plan are: Improving the quality of school education. Achieving 100 per cent GER* and NER** as well as a zero dropout rate. Implementing the Right to Free and Compulsory Education Act. Overall development of government schools and higher institutions. The Annual Plan 2013-14 allocated US$ 259 million to education, 10 per cent more than the previous annual plan. This outlay would be used to recruit more teachers and develop schools.

Source: Department of Planning, Government of Punjab *GER - Gross Enrolment Ratio: Number of students enrolled in school at different grade levels, **NER - Enrolment of the official age-group level education as a percentage of corresponding population

The public healthcare infrastructure of the state has a threetier structure comprising hospitals, primary health centres and sub-centres, health units and community health centres. During 2011–12, the average radius served per healthcare institution was 2.68 km. Around 90.0 per cent of non-hospital healthcare and 67.0 per cent of hospital care cases are handled by private healthcare services.

Health indicators of Punjab (2013) Population served per doctor

1,207^

Birth rate*

15.7

Death rate*

6.7

Infant mortality rate**

26.0

Life expectancy at birth (years) Male (2011-15)

69.7

Female (2011-15)

72.8

The Punjab government sanctioned US$ 85.9 million for the health sector under the Annual Plan 2013-14.

Health infrastructure (as of 2013) Hospitals

98

Primary health centres

427

Ayurvedic and unani institutions

529

Homoeopathic institutions

111

Community health centres

150

Dispensaries

1,438

Source: Sample Registration System (SRS) Bulletin, September 2014, (www.censusindia.gov.in), Department of Planning, Government of Punjab; Economic Survey of Punjab 2013-14, Statistical Abstract Punjab 2013 *Per thousand persons; **Per thousand live births, ^As of 2011-12

Hockey and wrestling are the prominent sports in Punjab. The state has a number of sports stadiums and clubs in Chandigarh, Mohali, Amritsar, Jalandhar and other parts of the state. A multi-purpose sports stadium to host national as well as international sports is expected to be completed by the end of June 2013. The state has a scheme for having a stadium at the blocklevel, with indoor facilities for wrestling, boxing, judo, weight lifting, etc. Construction of such facilities has been completed in 12 blocks. The Golden Temple, Jalianwala Bagh and the Wagah Border (with Pakistan) at Amritsar are among the state‟s main tourist destinations. During January–September 2014, 17.9 million tourists visited the state, including 11.1 million tourists to Amritsar. In 2013, the number of hotels and hotel rooms in Punjab stood at 448 and 10,845, respectively.

Hotel infrastructure in Punjab (2010) Category

No of hotels

Total rooms

5 Star

4

543

4 Star

7

358

3 Star

55

1,588

2 Star

44

717

1 Star

2

29

Source: Department of Sports, Department of Tourism, Government of Punjab

Name and location Electronics Township (ELTOP), Mohali

Industry clusters

Food Park Project, Sirhind, Fatehgarh Sahib District

Primary industry

Description

Electronics

Set up by Punjab Information and Communication Technology Corporation Limited (Punjab Infotech) for the promotion and growth of the electronics industry in the state.

Industry specific

Clusters identified for bicycles and bicycle parts (Ludhiana), steel re-rolling (Mandi Gobindgarh), textiles (Ludhiana), sports and leather goods (Jalandhar), and woollens (Amritsar).

Agro-processing

Joint initiative of a Non-Resident Indian (NRI) group and Punjab Agro Industries Corporation; spread over 25 acres and one of India's largest and most sophisticated integrated vegetable and fruit processing complexes with support facilities for an annual capacity of over 5,000 million tonnes (MT) frozen storage facility and 5,000 MT cold storage facility.

Apparel Park, Doraha, Ludhiana

Textiles

Integrated textile park with 115 plots jointly developed by Punjab Small Industry and Export Corporation Limited and the Association of Textile Industry.

Biotech Park, Dera Bassi, Chandigarh

Biotech

Has all the basic facilities including water, electricity, R&D lab and sewage treatment facility, etc.

SEZ, Mohali

IT and electronics; pharmaceuticals

SEZ status granted to QuarkCity in Mohali to promote IT and electronics sectors and to Ranbaxy‟s SEZ at SAS Nagar, Mohali.

In 2013-14, Punjab is estimated to have had 160,460 industrial units, of which approximately 460 were large and medium industries, while the remaining were small-scale industries. Through the 12th Five-Year Plan, the government envisaged an investment outlay of US$ 437.7 million that includes the following major focus areas: Protecting and promoting small scale units, which form an integral part of the state‟s industrial landscape. Developing industrial clusters, mega projects and SEZs. Special packages to develop the IT and knowledge-based, agro-based and food processing industries. In the Annual Plan 2013-14, the Punjab government allocated an outlay of US$ 52.5 million. More than 85 per cent of this allocation is for the development of the Guru Gobind Singh Oil Refinery at Bhatinda.

Source: Department of Planning, Government of Punjab, Economic Survey of Punjab 2013-14

The resources, policy incentives, infrastructure and climate in the state support investments in sectors such as agrobased industries, food products, light engineering goods, automotives, chemicals, sports goods, textiles, pharmaceuticals, paper and paper products, metal and alloy products.

Key industries in Punjab • • •

•

Punjab State Industrial Development Corporation Ltd (PSIDC) and Punjab Small Industry and Export Corporation (PSIEC) are responsible for developing industrial infrastructure in the state. Punjab Agro Industries Corporation (PAIC) is responsible for developing agrobased units.

•

The state government has set up “Udyog Sahayak” as the state-level nodal agency and District Industry Centres (DIC) as the district-level committee for single-window clearance of industrial projects.

•

The Government of Punjab is promoting the development of several Special Economic Zones (SEZs) across Punjab for pharmaceuticals, textiles, electronic hardware and IT/ITeS.

• • • • •

•

Tractors and auto components Agro-based industries Bicycles and bicycle parts Chemical products Food products Light engineering goods Metal and alloy products Pharmaceuticals Paper and paper products Sports goods Textiles IT and electronics

The agriculture sector contributed around 27.4 per cent to the state‟s GSDP in 2013-14. Approximately 82 per cent of the state‟s land is under cultivation compared with the national average of 40 per cent. Around 98 per cent of the cultivable area is under assured irrigation. Of the total manufacturing output in 2012-13, manufacturing of food products emerged as the largest contributor, accounting for approximately 22.9 per cent of output. The state government has actively promoted contract farming. Notable contract farming agreements include those with the Tata Group for basmati rice, the UB Group for malting barley and Advanta India for hyola (hybrid rapeseeds and mustard). Crops being promoted include maize, hybrid basmati and sunflower.

Some of the key players • • • •

Nestle India MILKFED Jagjit Industries Ltd Markfed

Source: Statistical Abstract Punjab 2013

Organic farming is a thrust area with initiatives from the Punjab Agriculture Export Corporation (PAGREXCO). Several incentives are offered to promote organic farming in the state, including free-of-cost consultancy and a 100 per cent subsidy on certification of produce by internationally accredited agencies.

Since the 1980s, Punjab Agro Industries Corporation (PAIC) has been encouraging private investment in the agroprocessing sector by identifying technically feasible and economically viable projects, and inviting financial collaborations for implementation in the joint sector. Punjab Agri Export Corporation provides a 25-30 per cent subsidy on waxing/grading, packaging, freight for distant marketing and export of fresh and processed vegetables. The Government of Punjab encourages the development of food parks and mega projects to facilitate the establishment of food processing infrastructure. Until May 2012, 63 projects were approved under the mega projects policy. Punjab Agro Industries Corporation Limited (PAIC) is authorised to promote food and agro processing industries in financial collaboration with private investors. PAIC contributes 11-26 per cent of the equity capital required to develop such projects. In 2013-14, the state is projected to have produced 27.8 million metric tonnes of food grains.

Incentives under the Industrial Promotion Policy, 2013 Value Added Tax (VAT) and Central Sales Tax (CST) incentives based on the following eligibility criteria: Fixed Capital Investment (FCI) between US$ 0.2 million and US$ 4.1 million. •

80 per cent exemption on VAT for 10 years.

•

75 per cent exemption on CST for 10 years.

FCI between US$ 4.1 million and US$ 16.6 million. •

85 per cent exemption on VAT for 10 years.

•

80 per cent exemption on CST for 10 years.

FCI of more than US$ 16.6 million. •

90 per cent exemption on VAT for 12 years.

•

85 per cent exemption on CST for 12 years.

100 per cent exemption from electricity duty on power for 10-12 years based on eligibility criteria. 100 per cent exemption from stamp duty on purchase/lease of land.

100 per cent exemption from property tax for 10-12 years based on eligibility criteria. Exemption from mandi fee, rural development fund and infrastructure development cess on basmati, maize, wheat, fruits and vegetables applicable on purchases made within the state for processing. Source: Department of Industry, Government of Punjab

Nestle India

•

A subsidiary of Nestle SA, Switzerland, the company started milk collection in Moga, Punjab, in 1961 and has expanded operations to a network of more than 85,000 farmers. The company has its processing unit in Moga. • Nestlé's famous brands include Nescafe, Maggi, Milkibar, Kit-Kat, Bar One, Milkmaid, Nestea, etc. The company recorded revenues of US$ 1.6 billion in 2013. In April 2014, Nestle India showed interest to invest US$ 81.2 million for expanding and modernising its Punjab unit. •

MilkFed

Jagatjit Industries Ltd (JIL)

MILKFED (The Punjab State Cooperative Milk Producers' Federation Ltd) was formed in 1973 with the objectives of providing remunerative prices to milk producers in the state, marketing their produce and providing technical inputs for the enhancement of milk production. It reported a turnover of US$ 356.1 million in 2012-13. The company has a strong network of about 7,370 milk producers‟ cooperative societies at the village level, 12 milk plants and two cattle-feed factories. • It is well known for the Verka brand of dairy products, including milk, butter, buttermilk, cheese, curd, milk powder, ice cream, ghee, etc. •

•

Markfed

JIL was founded in 1944 in Kapurthala under the patronage of Maharaja Jagatjit Singh. The company manufactures and markets alcoholic beverages, malt, malt extract, malted milk foods, milk powder, ghee, glass and pet containers. The company recorded revenues of US$ 227.4 million in 2013-14.

Markfed began operations in 1954 with 13 members and a share capital of US$ 6,000. It has grown to be among the largest marketing cooperatives in Asia with an annual business turnover of around US$ 3.8 billion with nearly 2,710 employees and 20 industrial units. • Punjab Markfed is a marketing federation of over 3,069 societies. The cooperative has won recognition and many awards from the Government of India in several areas of excellence; Markfed represents the interests of over a million farmers in the state.

Punjab‟s IT policy and the incentives offered to the IT industry are aimed at promoting Punjab as an attractive destination for the industry. Mohali has been developed as an IT and ITeS hub in the state.

The Industrial Policy 2009 includes special incentives and concessions by the Punjab Government to facilitate growth of the state‟s IT and ITeS industry.

Infrastructure development: Development of IT Parks/SEZs, IT estates and IT corridors

In 2012-13, software exports (made by registered units through STPI) from the state were around US$ 394.7 million.

Other incentives: Duty exemptions, exemption from statutory power cuts, 100 per cent stamp duty reimbursement, exemption from the land use zoning regulation and special incentives for mega projects

Punjab Infotech is the nodal agency for the promotion and development of the electronics, telecommunication and IT industries within the state. The state has launched a venture capital fund, with a corpus of nearly US$ 4.3 million, for the IT industry. It has been funded jointly by Punjab State Industrial Development Corporation (PSIDC), Punjab Infotech, Punjab Financial Corporation (PFC) and the Small Industries Development Bank of India (SIDBI). The electronic test and development centre at Mohali provides testing facilities to electronics industries.

Electronics Township of Punjab (ELTOP) is situated on a 290-acre site in Mohali. This township is one of the fastest emerging centres for electronic production in India.

Some of the key players • • • •

The Government of Punjab has allocated 2.72 acres of land for setting up a new STPI centre at Amritsar.

Infosys Ltd JCT Electronics Ltd Punjab Communications Ltd APLAB Ltd

STPI: Software Technology Parks of India

Incentives under the Industrial Promotion Policy 2013: Value Added Tax (VAT) and Central Sales Tax (CST) incentives based on the following eligibility criteria: Minimum FCI of US$ 0.2 million in the districts of Mohali and Amritsar. •

80 per cent exemption from VAT on new units for 10 years from the commencement of production

•

80 per cent exemption on CST on all IT products for 10 years.

•

Cumulative limit of VAT/CST at 80 per cent of FCI.

FCI of minimum US$ 0.8 million: •

80 per cent exemption from VAT on new units for 10 years from the commencement of production.

•

80 per cent exemption on CST on all electronic hardware products for 10 years.

•

Cumulative limit of VAT/CST at 80 per cent of FCI.

Exemption from electricity duty on power during eligible period, priority in sanctioning and servicing of electric power-related issues based on eligibility criteria. 100 per cent exemption from stamp duty for IT/ITeS/knowledge units and electronics hardware manufacturers/developers on sale/lease/sale cum lease. Exemption from property tax for 10 years from the date of approval, based on eligibility criteria. Source: Department of Industry, Government of Punjab FCI: Fixed Capital Investment

Incentives under the Industrial Promotion Policy 2013: Units notified by the Department of Technology, Government of Punjab would not require NOC/Clearance from the Punjab Pollution Control Board (PPCB) to receive an electricity connection from Punjab State Power Corporation Limited (PSPCL). 50 per cent exemption from market fee, rural development fund and infrastructure development cess on purchase of cotton during the eligible period. Exemption from inspection under labour laws. Preferential market access to electronic hardware manufacturers. Source: Department of Industry, Government of Punjab

•

Infosys, which recorded revenues of US$ 8.3 billion in 2013-14, has thirty two development centres across the country, with one in Mohali, set up in 2001. The Mohali centre is equipped with the latest technology and solutions for enterprise networking, office productivity, collaborative software engineering and distributed project management. In February 2014, Infosys announced that it would set up an IT unit at Mohali by investing US$ 87.4 million; the unit would provide employment to 15,000 youth.

JCT Electronics Ltd (JCTEL)

•

JCT Electronics is a flagship company of the Thapar Group, one of India‟s large industrial conglomerates. JCTEL manufactures colour picture tubes for television sets and has a production capacity of around 5.2 million units annually. The company's plants are located at Vadodara (Gujarat) and Mohali (Punjab). It recorded revenues of around US$ 7.8 million in 2013-14.

Punjab Communications Ltd

•

Puncom is India's premier telecom and IT equipment and solution provider. The company recorded revenues of around US$ 3.5 million in 2013-14. Broadly, the company's activities cover areas such as telecom equipment manufacturing, IT and software solutions, turnkey projects as well as repair and maintenance. It has a manufacturing facility at Mohali near Chandigarh.

•

APLAB Ltd is a public enterprise incorporated in 1962 to provide solutions to business sectors such as telecommunication, IT, retail banking, retail fuel-dispensing as well as power control and conditioning. Its electronic products have markets, globally. The company has four independent product divisions: test and measurement equipment, power conversion and Uninterrupted Power Systems (UPS), self-service terminals for banking, and self service terminals for petroleum sectors. In Punjab, the company has presence in Chandigarh, Ludhiana, Amritsar and Jalandhar. It recorded revenues of US$ 15.8 million in 2013-14.

Infosys Ltd

APLAB Ltd

The textile sector in the state is strong on all aspects of the value chain, i.e., from the raw material stage to the finished products (garments) stage. Punjab produces about 70 per cent of the best quality cotton produced in India. Punjab is among the largest producers of cotton and blended yarn as well as mill-made fabrics in India. Ludhiana is often referred to as the „Manchester of India‟.

The state‟s textile policy provides incentives such as development of clusters, benefits under the central government‟s Technology Upgradation Fund Scheme (TUFS), electricity at reduced rates, and government support in the acquisition of land for textile mills. The state has implementation:

four

mega

textiles

parks

under

Ludhiana Integrated Textile Park, Ludhiana.

In 2013-14, Punjab's cotton production stood at 2.1 million bales, with projection of 1.4 million bales for 2014-15.

Lotus Integrated Textile Park, Barnala. Punjab Apparel Park, Ludhiana.

The textile industry accounted for approximately 19 per cent of the total industrial production and contributes about 38 per cent of the total exports from Punjab in 2011–12. In 2011-12, production of yarn in Punjab stood at 655 million kg; export of yarn and textiles was valued at approximately US$ 1,390.8 million. Exports of hosiery and readymade garments stood at US$ 521.4 million. Punjab was the second largest cotton and blended yarn producer in the country during 2011-12.

Rhythm Textile & Apparel Park, Nawanshehar.

Some of the key players • • • •

Nahar Group Vardhman Group JCT Limited Prince Textile Mills Source: Annual Plan 2013-14, Government of Punjab

Incentives under the Industrial Promotion Policy 2013: Value Added Tax (VAT) and Central Sales Tax (CST) incentives based on the following eligibility criteria: FCI between US$ 27.6 million and US$ 82.9 million. •

80 per cent exemption on VAT for 11 years.

•

80 per cent exemption on CST for 11 years.

•

Cumulative limit of VAT/CST at 80 per cent of FCI.

FCI of more than US$ 82.9 million. •

90 per cent exemption on VAT for 13 years.

•

80 per cent exemption on CST for 13 years.

•

Cumulative limit of VAT/CST at 90 per cent of FCI.

100 per cent exemption from stamp duty on purchase/lease of land. 100 per cent exemption from property tax for 11 or 13 years, based on eligibility criteria, commencing after the date of production. 50 per cent exemption from market fee, rural development fund and infrastructure development cess on purchasing cotton during the eligible period. Source: Department of Industry, Government of Punjab FCI: Fixed Capital Investment

Nahar Group of Companies

Vardhman Group

•

The Nahar Group of companies is also known as the OWM Group. The group‟s portfolio comprises spinning, knitting, fabrics and hosiery garments. It operates seven firms: Oswal Woollen Mills Ltd, Nahar Spinning Mills Ltd, Nahar Industrial Enterprises Ltd, Nahar Poly Films Ltd, Monte Carlo Fashion Ltd, Cotton County Retail Ltd and Nahar Capital & Financial Services Ltd. Most of its manufacturing facilities are located at Ludhiana and Mohali. In 2013, the company had announced plans to invest US$ 276.2 million for increasing its spinning and denim capacity in Punjab. The group generated total operating income of US$ 1,046.9 million during 2013-14.

•

Vardhman Textiles Limited, formerly Mahavir Spinning Mills Limited, is a large textile producer in India. The company operates in five segments: yarn, sewing thread, steel, fibre and fabric. The yarn segment comprises production of various types of yarns (cotton, manmade fibres and blends) and yarn processing activities. The company‟s subsidiaries include Vardhman Holding Limited, Vardhman Textiles Limited, VMT Spinning Company Limited, VTL Investments Limited, Vardhman Acrylics Limited, Vardhman Yarn & Threads Limited, Vardhman Nisshinbo Garments Company Limited and Vardhman Special Steels Limited. The company has its corporate office at Ludhiana, yarn manufacturing units at Ludhiana, Hoshiarpur and Malerkotla and dyeing units at Ludhiana and Hoshiarpur. The company recorded revenues of US$ 1,045.6 million in 201314.

•

JCT Ltd

Prince Textile Mills

JCT Limited, one of the leading manufacturers of textiles and filament yarn, is the flagship company of the Thapar group. It has operations in two distinct businesses: cotton, synthetic and blended textiles, and nylon filament yarn. The company achieved total revenues of US$ 79.1 million during the six months ended March 31, 2014. • JCT Limited offers a range of materials including 100 per cent cotton, 100 per cent polyester, 100 per cent nylon as well as various blends such as cotton-polyester, cotton-nylon and polyester-viscose, single and plied yarns (both with counts ranging from 6s to 100s) as well as cotton lycra and Dupont US-approved (polyester-cotton) lycra stretch material. The company has an integrated textile facility at Phagwara, Punjab. •

Prince Textile Mills, based in Ludhiana, was established in 1990 for high-quality Pashmina products. The company offers a wide range of hand-woven shawls and scarves of different lengths. • The company has a manufacturing facility at Ludhiana, Punjab.

The light engineering goods industry in Punjab includes bicycle and bicycle parts, hand tools, sewing machines and machine tools. The industry accounted for approximately 21 per cent share of the state‟s manufacturing output during 2012 and a 25 per cent share in industrial employment in the state. In 2012, the state accounted for around 15.0 per cent of the bicycle production and 80.0 per cent of bicycle parts production in India. The industry is primarily located in Ludhiana. Hand tools such as wrenches, hand drills, pullers, vices, hammers, screw drivers, pliers, spanners, etc., are manufactured mainly in Ludhiana and Jalandhar. Sewing machines and their parts are mostly manufactured in Jalandhar. The machine tools industry comprising lathes, shapers, milling machines, drilling machines and special purpose machines for different industries is mainly concentrated in Batala and Ludhiana.

Some of the key players • • •

Hero Cycles Avon Cycles Accurate (India)

•

A part of the Hero Group and among the world‟s largest producers of bicycles, the company„s annual bicycle production is 19,500 cycles per day. It started exporting to Africa and the Middle East in 1963. Today, more than 50 per cent of its bicycle exports are to Europe and the US. It has tied up with National Bicycle Industries, a part of the Matsushita Group, Japan, to manufacture high-end bicycles. It has a manufacturing unit in Ludhiana. In 2012-13, the annual turnover for the company was US$ 521.4 million.

•

Avon Cycles is another leading bicycle manufacturer in India. It has invested significantly in backward integration and has facilities for making almost all parts that are needed for bicycles, including steel balls. It produces about two million bicycles per annum and exports to more than 80 countries. It has manufacturing units in Ludhiana. The company is recognised by the Government of India as a „Golden Trading House‟. It is engaged in the development of a range of electrically powered bikes.

•

Accurate (India) is a manufacturer and exporter of oil mill machinery, spares and scaffolding fittings. The company has its office at Simlapuri in Ludhiana.

Hero Cycles

Avon Cycles

Accurate (India)

The automotive industry in Punjab is dominated by farm and light commercial vehicle manufacturers such as International Tractors, Punjab Tractors and Swaraj Mazda. The auto component industry in Punjab predominantly comprises SSI units.

Some of the key players • • • •

The auto components produced range from simple items such as nuts and bolts to complex ones such as shafts, radiators and axles. Manufacturing units cater to both original equipment manufacturers and replacement markets, some also export to offshore destinations. The state‟s tractor production is very high. It has a tractor density of 82 per 1,000 ha, as compared to the world average of 17.4. A majority of auto parts manufacturers are concentrated in Ludhiana, Jalandhar, Hoshiarpur and Phagwara. In 2012–13, exports of auto parts from Punjab was valued at US$ 138.7 million.

International Tractors Ltd Swaraj Engines Ltd SML ISUZU Ltd Pabla Bearings Ltd

International Tractors Ltd

SML ISUZU Ltd

•

International Tractors is among the top three tractor manufacturers in India; the company has a facility at Hoshiarpur. It sells tractors under the brand name „Sonalika‟. It exports to several countries including South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh, Algeria, Zambia, Senegal, Ghana, etc. It has a strategic alliance with YANMAR, Japan, for manufacturing tractors in India and a marketing arrangement with Tata International for exports to select South American and African markets. In 2012-13, the company recorded revenues of US$ 536.0 million.

•

SML ISUZU Limited, formerly known as Swaraj Mazda, based in Nawanshahar, Punjab, is a light commercial vehicle manufacturer. The company manufactures vehicles for goods and passenger applications. In the passenger carrier category, the company offers non-air conditioned and air-conditioned bus models with capacity ranging from 10-41 seats. The company registered revenues of US$ 147.0 million in and sold 9,760 vehicles in 2013-14.

•

Swaraj Engines Limited (SEL) is a Punjab-based company manufacturing engines for Punjab Tractors Ltd (PTL). It manufactures diesel engines, diesel engine components and spare parts. The company is also a supplier of hi-tech engine components to SML ISUZU Limited. The company‟s engine business constitutes approximately 95.0 per cent of its product revenue. The remaining 5.0 per cent is contributed by the hi-tech engine components supplied to SML ISUZU for the assembly of commercial vehicle engines. The company recorded revenues of US$ 100.9 million in 2013-14.

•

Pabla is a leading manufacturer and exporter of superior quality bearings, agricultural machinery bearings, home appliances bearings, auto bearings, two-wheeler auto bearings, fourwheeler auto bearings, etc. The company is based in Ludhiana, Punjab. Its major markets include India, Indonesia, Sri Lanka, Egypt, Europe, Middle East, Bangladesh, Thailand and Singapore.

Swaraj Engines Ltd

PABLA Bearings Ltd

Industrial activity in the petrochemicals and fertiliser categories includes refining, petrochemicals, chemicals, fertilisers and other related products and distribution.

Some of the key players •

This sector is expected to grow with the expansion of Hindustan Petroleum Corporation Ltd refinery project from current capacity of 9 MMTPA to 11.2 MMTPA as well as the increasing production of fertilisers in the state.

• • •

Hindustan Petroleum Corporation Ltd National Fertilisers Ltd Punjab Chemicals and Crop Protection Ltd Punjab Alkalies & Chemicals Ltd

Hindustan Petroleum Corp Ltd (HPCL)

• •

National Fertilizer Ltd

HPCL is a Fortune 500 company. It recorded an annual turnover of US$ 38.8 billion in 2013-14. HPCL-Mittal Energy Limited (HMEL), a joint venture company of HPCL with Mittal Energy Investments Pte Limited, has set up a state-of-the-art, 9 million metric tonnes per annum (MMTPA) refinery at Bathinda in Punjab. Production at this refinery started in January 2012.

•

NFL is one of the largest producers of nitrogenous fertilisers in the country. It is actively promoting the use of bio-fertilisers in the state and produces neem-coated urea at its facility in Bhatinda. The company recorded revenues of US$ 1.3 billion in 2013-14.

Punjab Chemicals and Crop Protection Ltd

•

Punjab Chemicals and Crop Protection Limited is engaged in the business of agrochemicals; it manufactures technical grade pesticides, herbicides, fungicides and biocides, as well as their formulations. The company has presence in both domestic and international markets. It has its registered office in Chandigarh and recorded revenues of US$ 85.3 million in 2013-14.

Punjab Alkalies & Chemicals Ltd

•

Punjab Alkalies & Chemicals Limited‟s three principal products include caustic soda lye, chlorine and hydrochloric acid. Its plant is located at Naya Nangal in Punjab. The company registered revenues of US$ 44.4 million in 2013-14.

The Single-Window Clearance Mechanism (SWM) has been established under the Punjab Industrial Facilitation Act, 2005, with the following three-tier structure to grant exemption/relaxation from any of the provisions/rules of the act: District Single-Window Clearance Committee: Instituted in each district of the state, the committee is chaired by the Deputy Commissioner and has the senior-most officers of district departments as its members. Empowered Committee: This committee is chaired by the Chief Secretary to the Government of Punjab and has the principal secretaries of state departments as its members. State Board: The board has the Chief Minister of Punjab as its chairman and ministers of state departments as its members.

Single-Window Clearance Mechanism in Punjab

Chief Minister of Punjab

Chief Secretary

Deputy Commissioner

State Board

Empowered Committee

District Single Window Clearance Committee

Source: Department of Industry, Government of Punjab

Level

Nodal agency

Composition & role The agency members include officers from the Punjab State Electricity Board (PSEB), Punjab Pollution Control Board (PPCB), Punjab Infotech, PSIDC, PFC, PSIEC, Department of Labour, PAIC and the Directorate of Industries.

State-level

District-level

Udyog Sahayak

DIC

The agency handles the composite application forms received from entrepreneurs and assists in obtaining clearances from various departments within the stipulated time period. It also provides guidance and information to investors about policies and programmes; it is monitored by an empowered committee. The DIC is headed by the general manager at the district level and includes the environmental engineer of the PPCB, the superintending engineer/executive engineer of PSEB, the district officer of the Housing and Urban Development Authority and the assistant director of factories from the Directorate of Factories. The DIC provides sanctions and clearances for setting up small scale industrial units in the state.

Source: Department of Industry, Government of Punjab PSIDC: Punjab State Industrial Development Corporation Ltd, PFC: Punjab Financial Corporation, PSIEC: Punjab Small Industries & Export Corporation Limited, PAIC: Punjab Agro Industries Corporation Limited

Agency Punjab Small Industry and Export Corporation Limited (PSIEC)

Punjab Finance Corporation (PFC)

Punjab Agro Industries Corporation (PAIC)

Punjab State Industrial Development Corporation Limited (PSIDC)

Description •

Focuses on the development of SSI units and promotion of exports.

•

Responsible for setting up industrial focal points.

•

Provides medium and long term loans for setting up new industrial units, expanding existing units and reviving sick units in the state (loan limits set by the State Financial Corporation Act, 1951).

•

Acts as the promoter for agro-based industries in Punjab and provides inputs such as fertilisers, machinery, seeds and pesticides to farmers.

•

Assists investors in obtaining all necessary approvals for new projects and facilitates contract farming.

•

Promotes large- and medium-scale projects in the state.

•

Provides escort services, especially for industrial ventures, and has been instrumental in facilitating the projects of Godrej-GE (white goods), Century Textiles (pulp and paper), Gujarat Ambuja (cement), ICI (paints) and HPCLSaudi Aramco (mega project for gas).

•

Acts as an infrastructure developer and financial facilitator.

Source: Department of Industry, Government of Punjab

Agency

Contact information

Punjab Small Industry and Export Corporation Limited (PSIEC)

Udyog Bhawan 18, Himalaya Marg, Sector-17/A Chandigarh-160017 Phone: 91-172-2704756, 2704865 Fax: 91-172-2702039 E-mail: [email protected]

Punjab State Industrial Development Corporation Limited (PSIDC)

Udyog Bhawan 18, Himalaya Marg, Sector-17 Chandigarh-160 017 Phone: 91-172-2702 881-84, 2702 791 Fax: 91-172-2704 145 E-mail: [email protected], [email protected]

Service or facility Industrial License Sponsorship for raw materials and inputs Land allotment

Incentives

Sanction of loan

Release of power connection

Site approval/environmental clearance Adequacy certificate No-objection certificate

Agency

Timelines

Department of Industries

2 weeks 4 weeks 4 weeks

Udyog Sahayak

Sales tax exemption: 1 week Investment incentive: 4 weeks Other incentives: 2 weeks

PFC/PSIDC

8 weeks

PSEB

Load up to 20 kW: 8 weeks Load from 21–100 kW: 12 weeks Load from 101–500 kW: 12 weeks Load above 500 kW: 90 days

Department of Environment, Pollution Control Board

60 days 30 days Green category: 15 days Red category: 30 days

Source: Department of Industry, Government of Punjab

Cost parameter

Cost estimate

Industrial land (per sq ft)

US$ 15–115

Office space rent (per sq ft per month)

US 50 cents to US$ 2.3

Power cost (per kWh)

Industrial: US 9.3 cents to US 10.4 cents

Labour cost (minimum wages per day)

Agriculture: US$ 3.1 Non-agriculture: Unskilled: US$ 3.0 Semi-skilled: US$ 3.1–3.2 Skilled: US$ 3.3–3.5 Highly skilled: US$ 3.8–3.9

Water

Commercial and industrial: US 15.7 cents per 1,000 litres

Source: Ministry of Labour and Employment, Government of India, Punjab State Electricity Regulatory Commission, Industry sources

Industrial Promotion Policy, 2013

Objectives

• •

Enhance the contribution of secondary and tertiary sectors in the state‟s growth. Ensure overall development of the state by providing incentives to less developed zones.

Read more

New and Renewable Sources of Energy (NRSE) Policy, 2012 Objective

•

To maximise and improve the share of new and renewable sources of energy to 10 per cent of the total installed power capacity in the state by 2022.

Read more

Industrial Policy, 2009 Objective

•

To establish synergy between the agriculture and industrial sectors, rejuvenate the small scale industries and attract more investments in the large scale industries.

Read more

Agro-Industrial Policy, 2009

Objective

•

To make Punjab the destination of choice for investors and processors, globally as well as domestically.

Read more

IT/Knowledge Industrial Policy, 2009 Objective

•

To create an enabling environment for IT and knowledge-based industries by focusing on creating the necessary infrastructure, developing human capital, proactively engaging with investors and ensuring effective policy implementation.

Read more

Special Economic Zone (SEZ) Act, 2009 Objectives

• •

To promote SEZs in the state by providing unique incentives to infrastructure developers. To promote and set up self-contained large industrial townships.

Read more

Land Allotment Policy, 2009

Objective

•

To accelerate the pace of growth of industry in the state and make the process of land acquisition quicker for entrepreneurs.

Read more

Notification Textile Policy, 2006 Objective

•

To facilitate and promote the growth of the textile industry, achieve global standards in product quality, contribute more to exports and encourage textile clusters.

Read more

Tourism Policy, 2003 Objective

•

To promote tourism and develop hospitality infrastructure with private sector participation (Tourism was declared to be an industry in Punjab in 1996).

Read more

Average exchange rates

Fiscal Year

INR equivalent of one US$

2004-05

44.81

2005-06

44.14

2006-07

45.14

2007-08

40.27

2008-09

46.14

2009-10

47.42

2010-11

45.62

2011-12

46.88

2012-13

54.31

2013-14

60.28

2014-15*

60.6 *Average for the first three quarters

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