Rules Formulated Under Industrial Policy
DEPARTMENT OF INDUSTRIES AND COMMERCE
Notification 1st June, 1996 No. Inc. 11/15/43/96-5/IB/4176- Whereas, with a view to promoting growth of Industry in the State, Government of Punjab have notified the "Industrial Policy 1996" vide No. 15/43/96-5/IB/2238, dated 20th March, 1996 which, inter-alia, provides for the grant of various incentives for new industrial units that come into production or undertake expansion on or after the 1st April, 1996.

Now, therefore, to implement the scheme of incentives set out in the aforesaid Industrial Policy, the Governor of Punjab is pleased to notify the following rules to be known as a "Punjab Industrial Incentive Code under the Industrial Policy, 1996."

1. Short Time
These rules may be called the "Punjab Industrial Incentive Code under the Industries Policy, 1996."

2.Definitions
2.1 "Government" means the Government of Punjab in the Department of Industries & Commerce.
2.2 'Director' means the Director of Industries, Punjab.
2.3 'District Officer' means the General Manager of District Industries Centre or any other officer nominated or designated by the Government/Director to perform the duties of the district officer, for the purpose of these rules.
2.4 'The New Unit' means a unit that has come into commercial production on or after the 1st of April, 1996 and has been set up by installing plant and machinery at an independent and distinctly separate area, may be in the same premises, irrespective of the fact that the new unit in the same line of manufacture as the existing one, owned by the same management. Independent manufacturing units set up by the same company under the same brand name and same constitution shall be treated as separate entities for the purpose of availing Sales Tax concessions and other incentives as admissible in the Policy.
2.5 'Expansion' means at least 50% increase in the fixed capital investment or a minimum of 50% increase in the installed capacity as recorded in the industrial license/certificate of Department of Industries.
2.6 'Corporation' means any State owned corporation assigned the task of development of industry in Punjab by the State Government.
2.7 'Fixed Capital Investment' means investment made on land, building, plant & machinery and other items as indicated below by a new unit or an existing unit undertaking expansion:

• Cost of Generator set.
  
• Any amount paid by the unit to PSEB for installation of private transformer.
  
• Actual cost of weigh-bridge and laboratory equipment.
  
• Actual cost of Dies, Moulds, Jigs and fixtures and material handling equipments.
  
• Preliminary expenditure to the extent not written off.

2.8 'Plant & Machinery' means new plant and machinery installed by the unit for the manufacture of items for which it is set up or installed for undertaking expansion, provided that the old or re-conditioned plant and machinery directly imported and installed by a unit shall also be deemed to be new plant and machinery. Actual cost of plant and machinery will include the basic price of plant and machinery which, in case of imported machinery, will include charges from the port of arrival till destination and installation charges in addition to the C.I.F. value of such plant and machinery, provided that the freight and installation charges would be limited to 10% of the basic price.
2.9 'Effective Steps' would mean taking of any one of the following steps by an industrial unit:

• that more than half of the factory building for the project has been constructed.
  
• that a firm order has been placed for more than half of the capital issued for the industrial unit.
  
• that 60% or more of the capital issued for the industrial unit has been paid up.
  
• that Term Loan has either been sanctioned for its project, or an application for the same is under consideration of the all India/State Level financial Institutions/Banks.

2.10 'Commercial Production' means commencement of commercial sale of product for which the unit has been set up.
2.11 'Financial year' means the year beginning from 1st April to 31st March.
2.12 'Areas' means different category of areas as mentioned in Annexure-I.
2.13 'No incentives items' means items included in Annexure -II & III.
2.14 'Municipal limits' means the limits notified by the Municipal and financial Corporations, municipal Councils or the Nagar Panchyat in the State from time to time.