What are the State Government's initiatives for promoting IT investments?
The State Government accords a very high priority to the development of industry in general and IT/Knowledge Sector Industry in particular. The Information Technology (IT) sector has been listed as a thrust area in Punjab's new Industrial Policy. The State Government endeavors to continuously strive for progress and performance to further accelerate the growth of IT industry in the State through:
- Development of ICT specific infrastructure for set up of IT industry in Kapurthala, Ropar, Rajpura and Rail Majra by the government as well as promoting the development of private IT Parks and SEZs in the State.
- Creating a pool of employable workforce.
- Formulation and implementation of investment friendly policies.
- Initiation of a "Single Window Service" to provide a conducive business environment to both existing and potential investors.
What is the present IT investment scenario in the State?
IT/Knowledge Industry has been identified as a sunshine sector in Punjab. Punjab has been steadily acquiring strong national footprint as far as the services sector is concerned. Mohali is the key IT and Electronics hub in the state of Punjab. 304 units are registered with STPI Mohali with export to the tune of Rs. 725 crore in 2008-09. Most of the companies in Punjab which are registered with STPI Mohali are focused on the business of e-commerce, medical transcription, system software development and providing web based applications. Major players like HCL Info systems, Quark, Dell and First Source have their presence in the State. Some of the other major IT companies are also likely to make their foray in the state. For more details click here. What are the requirements for notification, registration and approval for setting up an IT unit in Punjab?
What is procedure? In an attempt to detail out the clearances and approval mechanism required for establishing an IT/Knowledge Industry unit/ Park/ SEZ, a guide for IT investors has been prepared by Punjab Infotech which provides details on notification, registration and approval of setting up an IT unit in the State with the aid of clear and lucid flowcharts. The time lines for processing and disposal for various clearances required for setting up of IT/Knowledge Industry Units/Parks/SEZ by Department of Industries and Commerce, Punjab are also liad down in the guide. The procedural details for notification, registration and approval of investment are available in Chapter 3 of 'Doing Business in Punjab'. For more details click here. Is there any agency that would facilitate procedural clearances for an IT investor in the State?
Punjab Infotech (Punjab Information & Communication Technology Corporation Pvt. Ltd.) was set up in 1976 under the aegis of Department of Industries & Commerce as the nodal agency for the promotion of IT/Knowledge Industry in the State. It has been acting as the prime mover in the State as an institutional entrepreneur through policy formulation, infrastructure creation and marketing the state as a preferred investment destination. In the recently notified IT/ Knowledge Industry Policy, 2009, Punjab Infotech has been designated as a Single Window facilitator for IT investors, which effectively means that Punjab Infotech would facilitate obtaining clearances and avail incentives for the IT investors as per the policy from various departments within the stipulated time period.
What is the procedure for setting up an IT SEZ?
Punjab is the sixth state in India to announce its Special Economic Zones Act, which intends to provide a major boost the development of SEZs in the State. In order to make the clearance of projects more convenient and hassle free, the state government has made a single-tier approval system for setting up of the IT SEZ instead of two-tier process. A project approval committee headed by the chief secretary, along with administrative secretaries concerned will look after all the SEZ proposals in Punjab. The committee will give in-principle approval, if land is not in possession of the developer and will grant final approval after land possession. After approval by the committee, the proposal will be sent to the Centre. For more details click here. What is the Procedure for setting up of mega projects including IT/Knowledge Industry Parks?
For setting up of a mega project an application has to be submitted to Punjab InfoTech, Department of Industries. The detailed guidelines are available at http://www.punjabgovt.nic.in/INDUSTRY/megaproject.htm
Acts and Policies
Is there a State SEZ Act? What are its main features?
The Punjab State SEZ Act was enacted on 11th August, 2009 to promote special economic zones (SEZs) in the State. It is the 6th State in the country to enact the SEZ act which has been initiated to fulfill the growing demands of infrastructure investors. SEZ Policy is designed to provide a comprehensive framework for establishment, operation and sustainability of SEZs in the State of Punjab. The major unique features of the policy are:
- Permission of generation of electricity in or outside the SEZ for units located in the SEZ.
- Exemption from stamp duty, registration fee and Social Security Cess on purchase of land for SEZ and on first transfer or lease of immovable property within SEZ.
- Allocation and transfer of land within SEZ by way of sale or lease.
The detailed text of the policy is available at Punjab Infotech website and Punjab Government official website at the following link. For more details click here. How is Punjab IT Policy encouraging and facilitating Investors?
IT Policy 2009 aims at creation of an ecosystem for the IT and knowledge industry by providing package of policy measures and incentives, which will make Punjab one of the most attractive investment destinations in the IT/ knowledge industry sector. To accelerate the growth of the IT industry, institutions offering specialized education and training for the IT and knowledge industry such as finishing schools, entrepreneurship development cells, incubation centres, institutes of higher learning and other knowledge industries, which are part of an IT park/knowledge park, would be eligible for the benefits under this policy on par with IT units. Following are the facilities /Concession to encourage the investors in IT Policy, 2009 of State of Punjab
- Exemption from clearance from Pollution Control Board.
- Exemption from inspection under various Labour Laws.
- Exemption from Punjab Apartment and Regulation Act (PAPRA).
- Power Tariff charged at industrial rate irrespective of their location/zoning.
- Electricity duty exemption to Captive power units installed by IT units.
- Electricity duty exemption to IT/Knowledge units for 5 years.
- IT Parks/units will be exempted from statutory power cuts, restriction of peak load hours and weekly off power cuts.
- IT units/parks would be charged based on the actual units consumed.
- VAT on all IT products rationalized to be at par with the minimum floor rate of 4%.
- Exemptions from stamp duty and registration fee for land transfer/allotted by PICTCL.
- 100% Stamp Duty exemption (first sale transaction) on purchase/lease of built up office space within constructed IT Park.
- 100% Stamp Duty reimbursement on land acquired by developer for building IT Park or IT units developing their own campuses.
- IT Units/Parks will have permissible FAR of 300% on gross area of the project.
- IT Units can be set up in Residential, Commercial, Institutional, Industrial or Agriculture Use Zone notified under the Master Plan.
- IT Park can also be set up in above areas except for Residential Use Zone.
- No CLU charges and EDC to be levied on any component of Integrated IT Park.
Further details of the all fiscal/non fiscal incentives offered by the State to promote the investments in the IT sector can be referred from the Industrial Policy from the below link. For more details click here.
Support Infrastructure
What is the availability of land in the state. Can I get the facility of fully built up premises for Plug and play the operations like incubation centre?
What are approximate rates for both particularly in Mohali? In an effort to provide world class infrastructure to IT/Knowledge Industry units wanting to set up their base in Punjab, the Government is developing IT SEZ/ IT Parks and facilitating the private developers. Punjab Infotech is also setting up an Incubation Centre in Mohali with 10,000 sq ft. built up space. Apart from this approxmately 10,00000 sq ft built up space is also available in Mohali. Setting up of IT Parks/SEZ at the following locations:Rajpura, Roopnagar, Jalandhar, Kapurthala and Sneta(Mohali) is in progress. Rates of land in the state are very competitive as compared to other states with same kind of infrastructure.
What is the power infrastructure provided by the State to the IT investors?
The State Government is conscious of the fact that adequate, assured and reliable power is key to the growth of Industry. The State Government is taking initiatives to increase the total power availability to 8640 MW by 2011-12 and further to 16,275 MW by 2016-17 thereby making Punjab a power surplus State. The IT units and IT Parks notified by Punjab Infotech will be exempted from the purview of statutory power cuts, restriction of peak load hours and weekly off power cut towards provision for uninterrupted power supply. IT units/Knowledge industrial units would be entitled for 100% exemption from electricity duty for 5 years from the date of release of connection from PSEB. In addition, the State is offering uninterrupted power supply to the IT sector setting up their base in Punjab. For more details click here. What is the transport infrastructure provided by the State?
Punjab is among the best States in the country in terms of rail, road and transport network.. It scores 210 against a national average of 100 in the infrastructure index of NCAER. Mohali-Chandigarh and Amritsar are connected to rest of India by super-fast trains and domestic flights. The State is internationally connected through airports in Delhi and Amritsar (Raja Sansi Airport). An international civil terminal is being set up in Mohali, along with the upgradation of the existing Raga Sansi airport to International Standards. Apart from these, domestic flights would soon be commenced from Ludhiana, Pathankot and Bhathinda. In addition the State continues to strengthen and upgrade the state highways and district roads throughout the length and breadth of the State.
What is the scenario of telecommunication infrastructure in the State?
Punjab has reliable, cost effective telecom infrastructure with adequate built-in redundancy. Presence of multiple telecom service providers offering high-speed telecommunication links with several levels of built in redundancy for all IT and BT parks. The state already has multiple private and government providers of telecom facilities like VSNL, STPI, BSNL, IDEA, HITL, Reliance and Bharti. In order to attract telecom service providers to Punjab and encourage existing ones to expand their operations, Government of Punjab has already notified free Right of the Way (RoW) Policy allowing any entrepreneur holding the necessary licenses of ISP or telecom operator from Department of Telecommunications (DOT), to lay optic fibre along the state highways, roads, district roads, municipal areas and link-roads free of any license fees or special charge. Besides this, Establishment of dedicated STPI satellite earth station operational at Mohali, another in Jalandhar by VSNL and one proposed in Patiala. Extensive Optic Fiber Density (OFC) Network of 25,000 route km has been laid out with nodes in all towns/ villages with more than 5,000 populations. For more details click here.
Human Resources
What is the scenario of technical education in the State?
Human Resource Development has been identified as one of the main pillars to support the exponential growth of any state based on knowledge and service sector based economy. To ensure the availability of high quality manpower in IT/Knowledge Industry and Electronics industry in Punjab, about 25,680 engineering graduates are generated annually from 67 Engineering Institutions in Punjab out of which about 16691 are in the field of I.T, Computer Science & Engineering and Electronics. About 6000 diploma level skilled manpower is generated annually from 51 polytechnics in Punjab in the field of IT, Computer Science & Engineering and Electronics. In addition to this, Punjab Infotech, through its CAL-C training partner Centers spread over whole of Punjab generate over 1,500 IT trained manpower annually in the area of Software and Hardware. Punjab has been awarded as the best state for the past two consecutive years in areas like technical education, infrastructure development, agriculture, consumer market. For more details click here. What are the initiatives taken by the State Government for promotion of technical education in the State?
In order to provide quality and trained employable workforce to the IT companies setting up their operations in the State, the Governemnt is undertaking a number of initiatives like:
- Proposed Knowledge City at Mohali (381 acres) comprising of established IISER, NIPER and proposed NABI, ISB & IINST*
- Setting up of IIT Gyan Jyoti Centre of Excellence initiated by Punjab Technical University at Mohali.
- Establishment of Indian Institute of Technology at Roopnagar
- Implementation of NAC & NAC-Tech** programme in the state by NASSCOM.
- Implemented GTT *** programme in the state offering domain specific courses
- 10% free seats to poor meritorious students in private technical Institutes
- For more details click here.
How is the State Government facilitating Venture Capital funding if needed be?
Government of Punjab has created Punjab Venture Capital Fund with a corpus of Rs. 20 crore contributed by SIDBI and various state corporations. The fund has already mobilized contributions to the tune of Rs. 5 crore and the management of the fund is going to be entrusted to private partner. The corpus of the fund will be enhanced to the 50 crores.
How does the State Government encourage the organizations for obtaining quality certification?
The Government will reimburse 20% of expenditure incurred by the IT software company for obtaining quality certifications for SEI CMM (Software Engineering Institute - Capability Maturity Model) Level 2 upwards, subject to maximum ceiling of Rs. 4 lakhs. Similar reimbursement will be made for ITeS Companies for achieving COPC (Customer Operation Performance Centre) and eSCM (Esourcing Capability Model) certification. |
