Punjab cabinet approves special incentives for mega, ultra mega projects to attract investment

Chandigarh (Punjab) [India], January 2 (ANI): In a bid to boost the state’s economy and catapult employment generation, the Punjab Cabinet led by Chief Minister Charanjit Singh Channi on Saturday approved a special package of incentives for new Mega and Ultra Mega Projects to attract huge investment in these projects across the state.
According to a spokesperson of the Chief Minister’s Office, projects with a fixed capital investment of Rs 1500 to Rs 2500 crore with a minimum contract demand of 20 MVA shall be treated as Mega Projects and projects with a fixed capital investment of above Rs 2500 crore and minimum contract demand of 30 MVA shall be treated as Ultra Mega Projects.
Under the special package, a special power tariff for four years to Mega Projects and five years to new Ultra Mega Projects will be provided from the date of release of permanent power connection, the CMO informed.
Similarly, as per the CMO, the incentive of Net Goods and Services Tax (GST) Reimbursement shall be available at the rate of 100 per cent of Net GST with a cap of 200 per cent of the Food Corporation of India (FCI) to be availed over a maximum period of 17 years for Mega Projects and 20 years for Ultra Mega Projects.
“This special package of incentive shall be available to only those units which shall file their Common Application Form (CAF) before October 17, 2022, and shall attain commercial production within three years (Mega Projects) and four years (Ultra Mega Projects) from date of submission of CAF,” the spokesperson said.
“With the aforesaid special package of incentive, the state would be in a better position to attract the Mega and Ultra Megaprojects which would be helpful in creating an industrial ecosystem in Punjab thereby promoting the development of many ancillary industries and will boost the industrial environment and economy at the same time providing numerous employment opportunities,” he added.
In another significant decision, the Cabinet also gave nod to waive off pending arrears of electricity bills of all Gausalas in Punjab. (ANI)