Chandigarh, March 7: The Punjab Cabinet affirmed its consent to the Punjab Industrial and Business Development Policy 2026 during a meeting presided over by Chief Minister Bhagwant Mann on Saturday. This overarching policy, which was developed following extensive consultations across 24 specific sectors, offers a wide array of fiscal and non-fiscal incentives designed to attract new industrial units to the state.
The new framework introduces a significant shift in how incentives are structured, allowing investors the liberty to choose from 20 different options to build a customised package that suits their specific needs. This flexibility extends beyond new players, as the policy also covers those looking to modernise or expand existing units. To further support sustainable practices, the government has introduced a fixed capital subsidy of Rs 20 crore for Zero Liquid Discharge systems and Rs 7.50 crore for industries switching to paddy straw-based boilers.
According to the policy details, the eligibility period for investors has been extended from the previous 7-10 years to a more robust 10-15 years. Traditional benefits such as exemptions in SGST, stamp duty, and electricity duty will continue alongside an employment generation subsidy. New additions to the support system include freight subsidies, marketing assistance, and dedicated support for Research and Development facilities.
The state has identified nine priority sectors including food processing, electronics and semiconductors, IT, and electric vehicles. These high-priority areas, along with any industries established in border districts or the Kandi region, are set to receive an additional 25 percent incentive. The policy also outlines support for patent registration, quality certification, and participation in the NSE Emerge platform to help local businesses scale.
