New industrial policy still in works, delay irks industry

CHANDIGARH: A month after the previous industrial policy ended, the new industrial and business development policy of the Aam Aadmi Party (AAP) government is still in the works even though it started the consultation process six months ago.

The draft ‘Punjab Industrial and Business Development Policy-2022’, which included several new thrust areas and fresh fiscal and non-fiscal incentives for MSMEs, services sector and employment opportunities for locals, was put in the public domain on September 9 for feedback from industry and other stakeholders, but it has not been finalised so far.

The industries and commerce department, which framed the draft policy after detailed deliberations with industry associations and entrepreneurs, had also circulated the policy draft to 15 departments and boards for their comments as several of the proposed incentives and concessions have financial ramifications for them. Of these, eight including revenue, local government, housing and urban development, excise taxation, and water resources departments, Punjab Pollution Control Board, Bureau of Investment Promotion and Skill Development Mission have sent their observations whereas those of agriculture, finance, and health departments are awaited, said an officer privy to the matter.

The draft policy, according to sources, was also sent to the state vigilance for its observations. “The new industrial policy is in the works. Once the comments are received, a meeting will be held at the highest level in the government before the proposed policy is put up before the cabinet for approval,” said the officer said who did not want to be named. The previous industrial policy, framed by the then Congress government in 2017, ended on October 17, 2022.

The delay has not gone well with some industry bodies whose representatives were called for a meeting with CM Bhagwant Mann on November 10, but it got postponed at the last minute. The fresh date is still not decided. PHDCCI chair, Punjab chapter, RS Sachdeva said the state government should incorporate their (industry’s) suggestions, and quickly finalise and notify the new policy. An office-bearer of another industry body said the delay was unnecessary. “The government had made all the right noises about creating a conducive environment for industry initially, but needs to back it with prompt policy interventions,” said a industrialist, requesting anonymity.

Badish Jindal, chairman of Federation of Punjab Small Industries Association (FOPSIA), however, said the state government should think about helping the existing industrial units, several of which are shutting down or struggling to stay afloat, instead of just focusing on and offering incentives for new investments.

“If they continue with the policies of their predecessors, more and more industries will either close down or move out of the state,” he said.

The government had made all the right noises about creating a conducive environment for industry initially, but needs to back it with prompt policy interventions A PUNJAB-BASED INDUSTRIALIST