Aranca Research, Directorate of Economics & Statistics-Source: Statistical Abstract Punjab 2012, PHD Chamber, Aranca Research, Directorate of Economics & Statistics- *4th Advanced

Source: Statistical Abstract Punjab 2012, PHD Chamber,

Aranca Research, Directorate of Economics & Statistics-

*4th Advanced estimates

Granary of India

• Punjab‟s fertile and productive soil has accorded it the status of „Granary of India‟ and the

„Bread basket of India‟. Occupying only 1.5 per cent of India‟s geographical area, the state

accounts for about 17 per cent* of the country‟s wheat production and 11 per cent of rice

production. This makes it suitable for agro-based industries, dairy farming and products,

and other food processing industries.

Textile hub

• Punjab has emerged as a key hub for textile-based industries including yarn, readymade

garments and hosiery. With the development of apparel parks, favourable textile policy

and other incentives for the creation of textile infrastructure, the state offers opportunities

for investment.

Best infrastructure

facilities

• Punjab ranks first in India in terms of infrastructure facilities offered. Punjab‟s road, rail and

air transport network, connectivity, construction of bridges and infrastructure facilities are

among the best.

Conducive business

environment

• Based on a World Bank study conducted in 2009, Punjab is considered the best place to

do business in India. It was ranked the third most attractive destination in India for new

investments in 2012-13. The state‟s policies, incentives for investors and overall macro-

economic factors encourage investment.

PPP: Public-Private Partnership, GSDP - Gross Domestic State Product

Growing demand Policy and fiscal incentives

• Punjab offers industries with a wide range of fiscal and policy incentives under the Industrial Policy 2009 and 2013.

• The state has policies to offer sector-specific incentives to sectors such as Information Technology (IT), SEZ and food parks.

Strong infrastructure

• Punjab has a well developed social and industrial infrastructure. Its transport network is one of the best in India, with easy access to key markets such as the Delhi-NCR region.

• Punjab has witnessed impressive growth in the number of clusters and hubs, with the establishment of several PPPs.

High economic

growth

• The average GSDP growth rate for the state of Punjab was about 14.1 per cent between 2004-05 and 2013-14.

• The state provides investment opportunities in sectors such as textiles, agro-based industries, IT & ITeS, automotive and auto components, sports goods and light engineering goods.

Advantage

Punjab

Fertile and productive land

• The confluence of five rivers makes Punjab‟s agricultural land rich and productive. Approximately 85 per cent of the state‟s land is under cultivation compared with the national average of 40 per cent.

• Punjab is one of the largest wheat and rice producers in India. It is also a leading exporter of rice, including

the well known Basmati variety.

Vision

2022

Agriculture

Education

Infrastructure

Transport

Industries Health

Investment

promotion

• Diversify into other crops after

considering their global market

demand.

• Adopt technology in all areas of

agriculture and encourage

organic farming.

• Adopt a mix of energy sources

for power generation and at least

one captive nuclear power plant.

• Build international airports in

each of the regions of Majha,

Malwa and Doaba.

• Provide quality education to all

people, even in rural areas, by

building one school after every 2 km.

• Aim to provide education with

practical knowledge through

workshops and industrial visits.

• Connect all major towns by

developing four-lane and six-

lane highways.

• Establish Bus Rapid

Transport Systems (BRTS) in

all major cities in the state.

• Encourage SMEs through

adequate financing and policy

initiatives to increase

employment.

• Set up an SEZ in each region

and develop backward and

border areas.

• Establish PHCs and specialty

hospitals covering wider

areas.

• Establish medical and nursing

institutions to produce

qualified healthcare

professionals.

• Computerise government

departments and adopt e-

governance to enhance the

ease of doing business.

• Attract investments from agro-

based and service sector

industries.

Environment • Check the diversion of

agriculture/forest land for

urbanisation and

industrialisation.

• Ensure that industries adopt

eco-friendly technologies and

rainwater harvesting.

Source: Confederation of Indian Industry

SME: Small and Medium Enterprises,

PHS: Primary Health Centres

The state is bordered by the Pakistani province of Punjab to

its west, Jammu & Kashmir in the north, Himachal Pradesh

in the northeast, Haryana in the south and southeast, and

Rajasthan in the southwest.

The most commonly spoken language of the state is

Punjabi. Hindi and English are the other widely used

languages.

Amritsar, Ludhiana, Jalandhar, Bhatinda, Mohali, Pathankot

and Patiala are some of the major cities in the state.

The state has three major seasons – summer (April-June),

rainy season (July-September) and winter (October-March).

Due to the presence of large rivers, most of the state is a

fertile plain. The state has three major rivers flowing through

it: Ravi, Beas and Satluj.

Source: Government of Punjab website, www.punjabgovt.nic.in,

Census 2011

Parameters Punjab

Capital Chandigarh

Geographical area (sq km) 50,362

Administrative districts (No) 22

Population density (persons per sq km)* 551

Total population (million)* 27.7

Male population (million)* 14.6

Female population (million)* 13.1

Sex ratio (females per 1,000 males)* 895

Literacy rate (%)* 75.8

*Calculated in Indian Rupee terms, **As of March 2014 indiastat.com,

***Includes only operational airports, ,****As of December 2014

Parameter Punjab All states Source

Economy

GSDP as a percentage of all states‟ GSDP 3.0 100.0 Planning Commission Databook, current prices,

October 2014

Average GSDP growth rate(%)* 11.18 11.54 Planning Commission Databook, current prices,

October 2014

Per capita GSDP (US$) 1,733.2 1,833.24**** Planning Commission Databook, current prices,

October 2014

Physical Infrastructure

Installed power capacity (MW) 10,255.7 258,701.5 Central Electricity Authority, as of January 2015

Wireless subscribers (No) 30,615,363 952,344,219 Telecom Regulatory Authority of India,

as of January 2015

Broadband subscribers (No) 1,546,150** 94,490,000 Ministry of Communications & Information

Technology, as of January 2015

National Highway length (Km) 2,136.2 96,260 Ministry of Road Transport & Highways,

as of January 2015

Airports (No) 3*** 125 Airports Authority of India

PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System,

*Includes Chandigarh, Punjab, Himachal Pradesh and Haryana

Parameter Punjab All states Source

Social Indicators

Literacy rate (%) 75.8 74.0 Census 2011

Birth rate (per 1,000 population) (2013) 15.7 21.4 SRS Bulletin (www.censusindia.gov.in),

September 2014

Ease of Doing Business

FDI equity inflows (US$ million) 1,331* 243,228 Department of Industrial Policy & Promotion,

April 2000 to January 2015

Outstanding investments (US$ billion) 35.9 2,414.2 CMIE (2013-14)

Industrial Infrastructure

PPP projects (No) 42 1,339 www.pppindiadatabase.com

SEZs (No) 2 347 Notified as of March 2015, www.sezindia.nic.in

Punjab‟s gross state domestic product (GSDP) was US$

52.6 billion at current prices in 2013-14 as against US$ 21.6

billion in 2004-05.

The state‟s GSDP increased at a compound annual growth

rate (CAGR) of 14.1* per cent between 2004-05 and 2013-

14.

Source: Planning Commission Databook, December 2014

*In Indian rupee terms

GSDP of Punjab at current prices (in US$ billion)

21.6 24.6 28.2

37.8 37.7 41.6

49.6 54.7 52.5

52.6

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

201

2-2

01

3

201

3-2

01

4

CAGR

14.1%*

Punjab‟s net state domestic product (NSDP) at current

prices was US$ 46.6 billion in 2013-14 as against US$ 19.2

billion in 2004-05.

Between 2004-05 and 2013-14, NSDP increased at a

CAGR of 14.1* per cent.



NSDP of Punjab at current prices (in US$ billion)

19.2 21.7

25.0

33.7 33.6 37.2

44.3

48.5 46.4 46.6

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

201

2-2

01

3

201

3-2

01

4

CAGR

14.1%*

The state‟s per capita GSDP at current prices was US$

1,733.2 in 2013-14, up from US$ 830.7 in 2004-05.

Punjab‟s per capita GSDP expanded at a CAGR of 12.1*

per cent between 2004-05 and 2013-14.



GSDP per capita of Punjab at current prices

(in US$)

831 929 1,044

1,376 1,348 1,461

1,708 1,849 1,762 1,733

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

201

2-2

01

3

201

3-2

01

4

CAGR

12.1%*

Punjab‟s per capita NSDP at current prices was US$

1,536.8 in 2013-14 compared with US$ 738.7 in 2004-05.

The state‟s per capita NSDP rose at a CAGR of 12.1* per

cent between 2004-05 and 2013–14.


*In Indian Rupee terms

NSDP per capita of Punjab at current prices

(in US$)

739 820 928

1,226 1,199 1,303

1,525 1,640 1,556

1,537

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

201

2-2

01

3

201

3-2

01

4

CAGR

12.1%*

With a CAGR of 15.9 per cent*, the tertiary sector has been

the fastest growing among the three sectors – primary,

secondary and tertiary – from 2004-05 to 2013-14 and is

also the largest contributor to Punjab‟s economy,

contributing 49.2 per cent to the state‟s GSDP. The growth

was driven by trade, hotels, real estate, finance, insurance,

communications, transport and other services.

The secondary sector rose at a CAGR of 13.4 per cent*

between 2004-05 and 2013-14, driven by increasing

manufacturing, construction and electricity as well as

improved gas and water supply.

The primary sector expanded at a CAGR of 11.9 per cent*

between 2004-05 and 2013-14.


*In Indian Rupee terms

GSDP composition by sector

32.7% 27.4%

24.7% 23.3%

42.6% 49.2%

2004–2005 2013–2014

Primary sector Secondary sector Tertiary sector

CAGR*

11.9%

15.9%

13.4%

Source: Economic Survey of Punjab 2013-14,

National Horticulture Board, Final Production 2013-14,

Directorate of Economics & Statistics,

Department of Agriculture & Cooperation, Government of India

*000 tonnes/bales; ^Provisional, **Estimated, ***Targeted, ^Provisional

Crop

Annual production –

2013-14

(„000 metric tonnes)

Wheat 16,300**

Rice 10,815**

Sugarcane 560**

Cotton 1,635*

Maize 790***

Barley 60***

Gram 5^

Total oilseeds 119**

Total pulses 49**

Total food grain 27,801**

Total fruits 1,541

Total vegetables 3,936

Punjab‟s total food grain production for 2013-14 is

estimated to be around 27.8 million metric tonnes*.

Wheat is the major crop produced by the state, covering

almost half of the cropped area. In 2013-14, estimated

wheat production stood at 16.3 million metric tonnes.

Punjab is the second-largest wheat producer in India; its

wheat and rice contribution to the central pool is estimated

at 43.4 per cent and 29.3 per cent, respectively, in 2013-14.

In 2013-14, Punjab‟s total fruit production was 1.54 million

metric tonnes.

According to the Department of Industrial Policy &

Promotion (DIPP), cumulative FDI inflows from April 2000 to

January 2015 amounted to US$ 1,331 million*.

In 2013-14, outstanding investments in the state were US$

35.9 billion.

In 2013-14, the services sector maintained its highest share

of outstanding investments, accounting for about 40.7 per

cent. It was followed by the electricity sector with a share of

about 35.8 per cent and construction & real estate with

about 16.4 per cent.

Source: CMIE, Department of Industrial Policy & Promotion (DIPP)

*Includes Chandigarh, Punjab, Himachal Pradesh and Haryana

Break-up of outstanding investments by sector

(2013-14)

6%

36%

41%

1%

16% Manufacturing

Electricity

Services

Irrigation

Construction & Realestate

Total exports of industrial goods from Punjab were valued at

US$ 4.4 billion in 2012-13. Exports during 2013-14 are

anticipated to total US$ 4.3 billion*.

In 2011-12, the state‟s principal export items were yarns

and textiles, hosiery and readymade garments, rice, sports

goods, bicycles and bicycle parts.

Ludhiana, Jalandhar and Patiala accounted for around 91.9

per cent of Punjab‟s total exports of industrial goods in

2011-12.

Source: Statistical Abstract Punjab, 2013

Economic Survey of Punjab 2013-14, *Projected

Punjab‟s exports (US$ billion)

Principal items Exports 2011-12

(US$ million)

Yarn and textile 1,390.8

Hosiery and readymade

garments 670.5

Rice 461.0

Sports goods 353.2

Bicycle and parts 273.7

Engineering goods 187.1

Electrical switch gears and

electrical accessories 139.1

Auto parts 138.7

Food products 64.7

Machine tools/hand tools 49.4

3.4

3.8

4.4 4.4 4.3

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014*

Punjab‟s government had estimated total receipts of US$

17,217.9* million and planned total expenditure of US$

11,665.9* million for 2014-15.

The state‟s tax and non-tax revenue was estimated to be

US$ 2,744.7* million and US$ 1,070.0* million, respectively,

for 2014-15.

Capital expenditure for 2014-15 was anticipated to be US$

836.2* million.

Expenditure on public order & safety affairs was projected

to be US$ 1,887.0* million for 2014-15, while for economic

affairs, it was estimated at US$ 1,196.0* million.

Highlights of development program for 2014-15:

An amount of US$ 706.7* million was earmarked for

programmes related to urban development.

The state has allocated US$ 285.3* million for water

supply and sanitation projects, and US$ 592.9* for

irrigation.

A total provision of US$ 517.8* million was made for

health & family planning for the state.

Source: Finance Department, Government of Punjab,

White Paper Budget 2014-15

*Figures converted at an assumed exchange rate of INR 60 per US$

Annual Budget

(Estimates in US$ million)*

2014-15

Revenue receipts 17,217.9

Revenue expenditure 11,665.9

Revenue A/C surplus 5,552.0

Capital receipts 405.6

Capital expenditure 836.2

Capital A/C deficit 430.6

Punjab is well connected to its four neighbouring states and

the rest of India through 12 National Highways (NH).

The state‟s highways account for about 2.3 per cent of the

total national highway network in India.

Punjab Roadways was established in 1948, with a fleet of

13 buses. Punjab and East Punjab States Union (PEPSU)

Road Transport Corporation, set up in October 1956,

controls the road transport services in the state.

Under the 12th Five-Year Plan, an outlay of US$ 15 million

has been allotted to strengthening Punjab‟s road network

and infrastructure. Of this, the Annual Plan 2013–14

awarded US$ 3.5 million for developing national and state

highways.

Source: Ministry of Road Transport & Highways, Department of Planning, Government of Punjab,

Economic Survey of Punjab 2012-13

*As of March, 2012

Road type Road length (km)

National Highways 2,136.2

State Highways 1,477*

Major district roads 2,107

Rural roads 58,688

Source: Maps of India

The railways play a major role in the state, connecting major

industrial units in the oil refining, cement, fertiliser, thermal

power and manufacturing sectors to suppliers and markets.

Punjab‟s railway network spans about 2,156 km. It falls

under the jurisdiction of Northern Railways that spreads

across Punjab, Jammu & Kashmir, Haryana, Himachal

Pradesh, Uttarakhand, Uttar Pradesh, Delhi and

Chandigarh.

The main inter-state railway routes are Amritsar-Ambala-

Delhi, Sri Ganganagar-Ambala-Delhi, Ferozpur-Ludhiana-

Ambala, Pathankot-Roopnagar-Fatehgarh Sahib and Sri

Ganganagar-Bhatinda-Narwana.

The state government is planning a metro rail project in

Ludhiana on Public-Private Partnership (PPP) basis.

Punjab is likely to get five new trains as announced under

the Union Budget 2014-15.

Source: Maps of India

Punjab has three domestic airports in Chandigarh, Ludhiana

and Pathankot.

International flights operate from the Sri Guru Ram Dass

Jee International Airport at Amritsar.

New airports have been proposed at Mohali, Bhatinda and

Ludhiana. They are at various stages of approvals and

completion. Mohali airport is being elevated to the status of

an international airport.

Approval from the Indian Air Force (IAF) is awaited to kick-

start construction of the new international airport in Mohali.

The new greenfield Ludhiana Airport is proposed to be

developed as an aerotropolis (a modern-age concept of a

township-oriented airport similar to the Singapore and

Frankfurt models), with a total outlay of US$ 3.8 billion.

The Punjab government plans to build a new airport at

Adampur district to serve the people of the Doaba region. International airport

Domestic airport

As of January 2015, Punjab had total installed power

generation capacity of 10,255.7 MW. It consisted of 5,041.4

MW under state utilities, 1,992.7 MW under central utilities

and 3,221.6 MW under private sector.

Of the total installed capacity, 6,634.80 MW was contributed

by thermal power, 3,090.08 MW by hydropower, 322.80 MW

by renewable power and nuclear power contributed 208.04

MW to total capacity.

The Punjab Energy Development Agency (PEDA) is the

nodal organisation for renewable energy development in the

state.

In April 2010, the Government of Punjab unbundled Punjab

State Electricity Board (PSEB) into two companies: Punjab

State Power Corporation Limited (PSPCL) and Punjab State

Transmission Corporation Limited (PSTCL).

The state of Punjab had 100 per cent village electrification

as of March 2014.

Source: Central Electricity Authority

*As of January 2015

Installed power capacity (MW)

7,019 7,056

7,509

8,354

10,256

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015*

The 12th Five-Year Plan allocated US$ 4.2 billion to Punjab‟s power sector, almost three times the outlay under the 11th

Five-Year Plan. This is aimed at making the sector self reliant to meet the growing demand from consumers across the

manufacturing, agriculture and services sectors.

The Annual Plan 2013-14 allocated US$ 532.3 million to strengthening the power generation system.

Punjab has been focusing on maximising the use of existing capacities, reducing Transmission and Distribution (T&D)

losses, developing captive power plants and adopting non-conventional sources for power generation.

In 2011-12, Punjab‟s per capita electricity consumption was 1,225 kWh.

The 540 MW Goindwal Sahib thermal power project awarded to the GVK Power Group in the private sector achieved

financial closure in 2010. In August 2010, GVK proposed to expand plant capacity by 1,320 MW, which is under

consideration by the state government.

Two thermal power plants are to be constructed in the state. The first plant, which would be located at Talwandi Sabo in the

Mansa district, would have total generation capacity of 2,640 MW and would be developed by Sterlite Energy Limited (SEL)

on a Build-Own-Operate (BOO) basis. The second plant, located at Nalash village in the Patiala district, would have a total

capacity of 1,320 MW and would be developed by Nabha Power Limited, a subsidiary of the engineering company, Larsen

& Toubro (L&T).

Source: Statistical Abstract Punjab 2012

Telecom infrastructure

Wireless connections (January 2015) 30,615,363

Wire-line connections (January 2015) 1,145,346

Broadband subscribers 1,546,150^

Post offices 3,850**

Telephone exchanges 1,496**

Source: Telecom Regulatory Authority of India, India Post, Department of

Telecommunications Annual Report 2012-13, March 2014 press release,

Statistical Abstract Punjab 2013, Economic Survey of Punjab 2013-14

*Tele-density: Number of telephone connections per hundred individuals; **As of

March 2013, ^As of March 2014 indiastat.com

According to the Telecom Regulatory Authority of India

(TRAI), Punjab telecom circle had 30.62 million wireless

subscribers and 1.15 million wire-line subscribers, as of

January 2015.

The tele-density* in the state was 107.23 per cent,

significantly higher than the national average of 75.23 per

cent, as of March 2014.

As of March 2013, the state had 1,496 telephone

exchanges.

The state had 3,850 post offices as of March 2013. Major telecom operators in Punjab

Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Idea Cellular

Vodafone Essar

Reliance Communications

Tata Teleservices

Aircel Limited

In 2011, Punjab ranked 8th among the urbanised states in

India, with 37.49 per cent urbanisation rate.

For 2005-14, the Government of India had allocated US$

368.9 million to Punjab for 24 projects under the Jawaharlal

Nehru National Urban Renewal Mission (JNNURM).

Under the Urban Infrastructure and Governance (UIG)

programme, five additional projects have been sanctioned

and are in transition phase.

The JNNURM program was extended for two years i.e.

2012-14. An outlay of US$ 1,407 million was allocated

under the 12th Five-Year Plan.

Some of the key areas of development are roads and

flyovers, water supply, sewerage and solid-waste

management.

Chandigarh – The original planned city

• Chandigarh, the joint capital city of Haryana and

Punjab, was developed as a planned city. It is also a

union territory.

• Today, it has expanded in terms of industry as well

as population.

• Chandigarh still remains a model for many other

Indian cities in terms of civic amenities.

• It has one of the best electricity distribution systems

in India. The Union Ministry of Power selected it as

one of the few model distribution centres in the

country.

• The Municipal Corporation of Chandigarh is

responsible for its urban infrastructure facilities

including water supply, sewerage, roads, slum

development, fire service, environment, city

beautification and house tax.

Source: JNNURM; Ministry of Urban Development, Government of India;

Department of Planning, Government of Punjab

Project name Sector PPP type

Total project

cost

(US$ million)

Stage

Panipat-Jalandhar Road BOT-Toll 379.6 Construction

Amritsar-Pathankot Road BOT-Toll 117 Construction

Zirakpur-Parwanoo Road BOT-Toll 78.8 Construction

Kurali-Kiratpur NH-21 Road BOT-Toll 51.3 Construction

Ambala-Zirakpur Road BOT-Toll 49.4 In operation

Jalandhar-Amritsar Road BOT-Toll 43.6 Construction

Amritsar-Wagha Border Road BOT-Annuity 34.2 Construction

Upgrading, operating and maintaining Ferozepur-Fazilka road Road BOT-Toll 17.4 Construction

Developing the Bhawanigarh-Nabha-Gobindgarh road project Road BOT-Toll 11.6 Construction

Greenfield super specialty hospital at Mohali Healthcare DBFOT 16.4 Construction

Greenfield super specialty hospital at Bathinda Healthcare DBFOT 22 Construction

Development of bus terminal cum commercial complex at

Mohali

Urban

development BOT-Annuity 29 In operation

Source: pppindiadatabase.com, data as of January 2011,

BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer

SEZs with formal approval

Name/Developer Area Primary industry

QuarkCity India Private Limited (Notified) Mohali IT

Ranbaxy Laboratories Limited (Notified) Mohali Pharmaceuticals

Lark Projects Private Limited Mohali Electronic hardware and software including ITeS

Sukhmani Towers Private Limited Nenetpur and Jawaharpur IT/ITeS

Sukhm Infrastructure Private Limited Mohali IT

ATS Estates (P) Limited Patiala IT/ITeS

Shipra Estate Limited Mohali IT/ITeS

Ishan Developers & Infrastructure Private Limited Amritsar Textiles

Chandigarh Administration Chandigarh Electronics and IT/ITeS

Chandigarh Administration Chandigarh IT/ITeS

Source: www.sezindia.nic.in

Source: Department of Planning, Annual Plan 2012–13, Government of Punjab, Economic Survey of Punjab 2013-14,

University Grants Commission, Annual Report, 2011-12, *As of September 2012

Punjab has a literacy rate of 75.8 per cent according to the

final data of Census 2011; male literacy rate is 80.4 per cent

and female literacy rate is 70.7 per cent. At 85.4 per cent,

Hoshiarpur district has the highest literacy rate in Punjab.

Literacy rate in Punjab‟s urban areas is 83.2 per cent and in

rural areas is 71.4 per cent (based on the 2011 Census).

The state had 102 engineering colleges and 127

polytechnic colleges as of 2011-12.

As of September 2012, the state had 10 universities. Panjab

University is more than a 100 years old and is well regarded

globally.

The Punjab Agricultural University in Ludhiana is

well known for its contribution to education, research and

extension services in the field of agriculture.

The state government is planning to set up an Indian

Institute of Information Technology (IIIT) in Kapurthala.

Category Literacy rate (%)

Overall 75.8

Male 80.4

Female 70.7

Higher education infrastructure (2011-12)

Universities 10*

Arts, commerce, home science

and science colleges 238*

Engineering colleges 102

Polytechnic colleges 127

Management institutions 124

Position of elementary and secondary education

(2011-12)*

Primary schools 15,334

Middle schools 5,730

High/senior secondary schools 8,882

Major educational institutes in Punjab are:

Indian Institute of Science Education and Research

(IISER), Mohali.

Institute of Nano Science and Technology (INSE),

Mohali.

National Agri-Food Biotechnology Institute (NABI),

Mohali.

Indian School of Business (ISB), Mohali.

Postgraduate Institute of Medical Education and

Research (PGIMER), Chandigarh.

Indian Institute of Technology, Ropar.

University Business School, Chandigarh.

Punjab Agricultural University, Ludhiana.

National Institute of Technology, Jalandhar.

Punjab‟s primary education statistics (2012-13)

Net Enrolment Ratio (NER) Primary: 89.0

Upper primary: 70.3

Gross Enrolment Ratio

(GER)

Primary: 111.2

Upper primary: 96.7

Dropout rate Primary: 1.44

Upper primary: 1.45

Source: Department of Planning, Government of Punjab,

University Grants Commission

GER: Gross Enrolment Ratio – Number of students enrolled in school

at different grade levels; NER: Enrolment of the official age-group level

education as a percentage of corresponding population,

National University of Education Planning and Administration

Source: Department of Planning, Government of Punjab

*GER - Gross Enrolment Ratio: Number of students enrolled in school at different grade levels,

**NER - Enrolment of the official age-group level education as a percentage of corresponding population

Punjab ranked third among all Indian states on the education development index in 2011-12, up from seventh position in

2010-11.

In the 12th Five-Year Plan, the state was allocated US$ 1.8 billion to develop its education system.

Major thrust areas under the 12th Five-Year Plan are:

Improving the quality of school education.

Achieving 100 per cent GER* and NER** as well as a zero dropout rate.

Implementing the Right to Free and Compulsory Education Act.

Overall development of government schools and higher institutions.

The Annual Plan 2013-14 allocated US$ 259 million to education, 10 per cent more than the previous annual plan. This

outlay would be used to recruit more teachers and develop schools.

Health indicators of Punjab (2013)

Population served per doctor 1,207^

Birth rate* 15.7

Death rate* 6.7

Infant mortality rate** 26.0

Life expectancy at birth (years)

Male (2011-15) 69.7

Female (2011-15) 72.8

The public healthcare infrastructure of the state has a three-

tier structure comprising hospitals, primary health centres

and sub-centres, health units and community health

centres.

During 2011–12, the average radius served per healthcare

institution was 2.68 km.

Around 90.0 per cent of non-hospital healthcare and 67.0

per cent of hospital care cases are handled by private

healthcare services.

The Punjab government sanctioned US$ 85.9 million for the

health sector under the Annual Plan 2013-14. Health infrastructure (as of 2013)

Hospitals 98

Primary health centres 427

Ayurvedic and unani institutions 529

Homoeopathic institutions 111

Community health centres 150

Dispensaries 1,438

Source: Sample Registration System (SRS) Bulletin, September 2014, (www.censusindia.gov.in),

Department of Planning, Government of Punjab; Economic Survey of Punjab 2013-14, Statistical Abstract Punjab 2013

*Per thousand persons; **Per thousand live births, ^As of 2011-12

Hockey and wrestling are the prominent sports in Punjab.

The state has a number of sports stadiums and clubs in

Chandigarh, Mohali, Amritsar, Jalandhar and other parts of

the state.

A multi-purpose sports stadium to host national as well as

international sports is expected to be completed by the end

of June 2013.

The state has a scheme for having a stadium at the block-

level, with indoor facilities for wrestling, boxing, judo, weight

lifting, etc. Construction of such facilities has been

completed in 12 blocks.

The Golden Temple, Jalianwala Bagh and the Wagah

Border (with Pakistan) at Amritsar are among the state‟s

main tourist destinations.

During January–September 2014, 17.9 million tourists

visited the state, including 11.1 million tourists to Amritsar.

In 2013, the number of hotels and hotel rooms in Punjab

stood at 448 and 10,845, respectively.

Hotel infrastructure in Punjab (2010)

Category No of hotels Total rooms

5 Star 4 543

4 Star 7 358

3 Star 55 1,588

2 Star 44 717

1 Star 2 29

Source: Department of Sports, Department of Tourism,

Government of Punjab

Name and location Primary industry Description

Electronics Township

(ELTOP), Mohali Electronics

Set up by Punjab Information and Communication Technology Corporation

Limited (Punjab Infotech) for the promotion and growth of the electronics

industry in the state.

Industry clusters Industry specific

Clusters identified for bicycles and bicycle parts (Ludhiana), steel re-rolling

(Mandi Gobindgarh), textiles (Ludhiana), sports and leather goods

(Jalandhar), and woollens (Amritsar).

Food Park Project, Sirhind,

Fatehgarh Sahib District Agro-processing

Joint initiative of a Non-Resident Indian (NRI) group and Punjab Agro

Industries Corporation; spread over 25 acres and one of India's largest and

most sophisticated integrated vegetable and fruit processing complexes

with support facilities for an annual capacity of over 5,000 million tonnes

(MT) frozen storage facility and 5,000 MT cold storage facility.

Apparel Park, Doraha,

Ludhiana Textiles

Integrated textile park with 115 plots jointly developed by Punjab Small

Industry and Export Corporation Limited and the Association of Textile

Industry.

Biotech Park, Dera Bassi,

Chandigarh Biotech

Has all the basic facilities including water, electricity, R&D lab and sewage

treatment facility, etc.

SEZ, Mohali IT and electronics;

pharmaceuticals

SEZ status granted to QuarkCity in Mohali to promote IT and electronics

sectors and to Ranbaxy‟s SEZ at SAS Nagar, Mohali.

In 2013-14, Punjab is estimated to have had 160,460 industrial units, of which approximately 460 were large and medium

industries, while the remaining were small-scale industries.

Through the 12th Five-Year Plan, the government envisaged an investment outlay of US$ 437.7 million that includes the

following major focus areas:

Protecting and promoting small scale units, which form an integral part of the state‟s industrial landscape.

Developing industrial clusters, mega projects and SEZs.

Special packages to develop the IT and knowledge-based, agro-based and food processing industries.

In the Annual Plan 2013-14, the Punjab government allocated an outlay of US$ 52.5 million. More than 85 per cent of this

allocation is for the development of the Guru Gobind Singh Oil Refinery at Bhatinda.

Source: Department of Planning, Government of Punjab,

Economic Survey of Punjab 2013-14

The resources, policy incentives, infrastructure and climate

in the state support investments in sectors such as agro-

based industries, food products, light engineering goods,

automotives, chemicals, sports goods, textiles,

pharmaceuticals, paper and paper products, metal and alloy

products.

Punjab State Industrial Development Corporation Ltd

(PSIDC) and Punjab Small Industry and Export Corporation

(PSIEC) are responsible for developing industrial

infrastructure in the state. Punjab Agro Industries

Corporation (PAIC) is responsible for developing agro-

based units.

The state government has set up “Udyog Sahayak” as the

state-level nodal agency and District Industry Centres (DIC)

as the district-level committee for single-window clearance

of industrial projects.

The Government of Punjab is promoting the development of

several Special Economic Zones (SEZs) across Punjab for

pharmaceuticals, textiles, electronic hardware and IT/ITeS.

Key industries in Punjab

• Tractors and auto components

• Agro-based industries

• Bicycles and bicycle parts

• Chemical products

• Food products

• Light engineering goods

• Metal and alloy products

• Pharmaceuticals

• Paper and paper products

• Sports goods

• Textiles

• IT and electronics

The agriculture sector contributed around 27.4 per cent to

the state‟s GSDP in 2013-14.

Approximately 82 per cent of the state‟s land is under

cultivation compared with the national average of 40 per

cent. Around 98 per cent of the cultivable area is under

assured irrigation.

Of the total manufacturing output in 2012-13, manufacturing

of food products emerged as the largest contributor,

accounting for approximately 22.9 per cent of output.

The state government has actively promoted contract

farming. Notable contract farming agreements include those

with the Tata Group for basmati rice, the UB Group for

malting barley and Advanta India for hyola (hybrid

rapeseeds and mustard). Crops being promoted include

maize, hybrid basmati and sunflower.

Some of the key players

• Nestle India

• MILKFED

• Jagjit Industries Ltd

• Markfed

Source: Statistical Abstract Punjab 2013

Organic farming is a thrust area with initiatives from the Punjab Agriculture Export Corporation (PAGREXCO). Several

incentives are offered to promote organic farming in the state, including free-of-cost consultancy and a 100 per cent subsidy

on certification of produce by internationally accredited agencies.

Since the 1980s, Punjab Agro Industries Corporation (PAIC) has been encouraging private investment in the agro-

processing sector by identifying technically feasible and economically viable projects, and inviting financial collaborations for

implementation in the joint sector.

Punjab Agri Export Corporation provides a 25-30 per cent subsidy on waxing/grading, packaging, freight for distant

marketing and export of fresh and processed vegetables.

The Government of Punjab encourages the development of food parks and mega projects to facilitate the establishment of

food processing infrastructure. Until May 2012, 63 projects were approved under the mega projects policy.

Punjab Agro Industries Corporation Limited (PAIC) is authorised to promote food and agro processing industries in financial

collaboration with private investors. PAIC contributes 11-26 per cent of the equity capital required to develop such projects.

In 2013-14, the state is projected to have produced 27.8 million metric tonnes of food grains.

Incentives under the Industrial Promotion Policy, 2013

Value Added Tax (VAT) and Central Sales Tax (CST) incentives based on the following eligibility criteria:

Fixed Capital Investment (FCI) between US$ 0.2 million and US$ 4.1 million.

• 80 per cent exemption on VAT for 10 years.

• 75 per cent exemption on CST for 10 years.

FCI between US$ 4.1 million and US$ 16.6 million.



FCI of more than US$ 16.6 million.



100 per cent exemption from electricity duty on power for 10-12 years based on eligibility criteria.

100 per cent exemption from stamp duty on purchase/lease of land.

100 per cent exemption from property tax for 10-12 years based on eligibility criteria.

Exemption from mandi fee, rural development fund and infrastructure development cess on basmati, maize, wheat, fruits

and vegetables applicable on purchases made within the state for processing.

Source: Department of Industry, Government of Punjab

Nestle India

MilkFed

Jagatjit Industries Ltd (JIL)

Markfed

• A subsidiary of Nestle SA, Switzerland, the company started milk collection in Moga, Punjab, in

1961 and has expanded operations to a network of more than 85,000 farmers. The company

has its processing unit in Moga.

• Nestlé's famous brands include Nescafe, Maggi, Milkibar, Kit-Kat, Bar One, Milkmaid, Nestea,

etc. The company recorded revenues of US$ 1.6 billion in 2013. In April 2014, Nestle India

showed interest to invest US$ 81.2 million for expanding and modernising its Punjab unit.

• MILKFED (The Punjab State Cooperative Milk Producers' Federation Ltd) was formed in 1973

with the objectives of providing remunerative prices to milk producers in the state, marketing

their produce and providing technical inputs for the enhancement of milk production. It reported

a turnover of US$ 356.1 million in 2012-13. The company has a strong network of about 7,370

milk producers‟ cooperative societies at the village level, 12 milk plants and two cattle-feed

factories.

• It is well known for the Verka brand of dairy products, including milk, butter, buttermilk, cheese,

curd, milk powder, ice cream, ghee, etc.

• JIL was founded in 1944 in Kapurthala under the patronage of Maharaja Jagatjit Singh. The

company manufactures and markets alcoholic beverages, malt, malt extract, malted milk foods,

milk powder, ghee, glass and pet containers. The company recorded revenues of US$ 227.4

million in 2013-14.

• Markfed began operations in 1954 with 13 members and a share capital of US$ 6,000. It has

grown to be among the largest marketing cooperatives in Asia with an annual business turnover

of around US$ 3.8 billion with nearly 2,710 employees and 20 industrial units.

• Punjab Markfed is a marketing federation of over 3,069 societies. The cooperative has won

recognition and many awards from the Government of India in several areas of excellence;

Markfed represents the interests of over a million farmers in the state.

Punjab‟s IT policy and the incentives offered to the IT

industry are aimed at promoting Punjab as an attractive

destination for the industry. Mohali has been developed as

an IT and ITeS hub in the state.

In 2012-13, software exports (made by registered units

through STPI) from the state were around US$ 394.7

million.

Punjab Infotech is the nodal agency for the promotion and

development of the electronics, telecommunication and IT

industries within the state.

The state has launched a venture capital fund, with a

corpus of nearly US$ 4.3 million, for the IT industry. It has

been funded jointly by Punjab State Industrial Development

Corporation (PSIDC), Punjab Infotech, Punjab Financial

Corporation (PFC) and the Small Industries Development

Bank of India (SIDBI).

The electronic test and development centre at Mohali

provides testing facilities to electronics industries.

The Government of Punjab has allocated 2.72 acres of land

for setting up a new STPI centre at Amritsar.

The Industrial Policy 2009 includes special incentives and

concessions by the Punjab Government to facilitate growth

of the state‟s IT and ITeS industry.

Infrastructure development: Development of IT

Parks/SEZs, IT estates and IT corridors

Other incentives: Duty exemptions, exemption from

statutory power cuts, 100 per cent stamp duty

reimbursement, exemption from the land use zoning

regulation and special incentives for mega projects

Electronics Township of Punjab (ELTOP) is situated on a

290-acre site in Mohali. This township is one of the fastest

emerging centres for electronic production in India.


• Infosys Ltd

• JCT Electronics Ltd

• Punjab Communications Ltd

• APLAB Ltd

STPI: Software Technology Parks of India

Incentives under the Industrial Promotion Policy 2013:


Minimum FCI of US$ 0.2 million in the districts of Mohali and Amritsar.

• 80 per cent exemption from VAT on new units for 10 years from the commencement of production

• 80 per cent exemption on CST on all IT products for 10 years.

• Cumulative limit of VAT/CST at 80 per cent of FCI.

FCI of minimum US$ 0.8 million:

• 80 per cent exemption from VAT on new units for 10 years from the commencement of production.

• 80 per cent exemption on CST on all electronic hardware products for 10 years.


Exemption from electricity duty on power during eligible period, priority in sanctioning and servicing of electric power-related

issues based on eligibility criteria.

100 per cent exemption from stamp duty for IT/ITeS/knowledge units and electronics hardware manufacturers/developers

on sale/lease/sale cum lease.

Exemption from property tax for 10 years from the date of approval, based on eligibility criteria.


FCI: Fixed Capital Investment


Units notified by the Department of Technology, Government of Punjab would not require NOC/Clearance from the

Punjab Pollution Control Board (PPCB) to receive an electricity connection from Punjab State Power Corporation

Limited (PSPCL).

50 per cent exemption from market fee, rural development fund and infrastructure development cess on purchase of

cotton during the eligible period.

Exemption from inspection under labour laws.

Preferential market access to electronic hardware manufacturers.


Infosys Ltd

JCT Electronics Ltd

(JCTEL)

Punjab Communications

Ltd

APLAB Ltd

• Infosys, which recorded revenues of US$ 8.3 billion in 2013-14, has thirty two development

centres across the country, with one in Mohali, set up in 2001. The Mohali centre is equipped

with the latest technology and solutions for enterprise networking, office productivity,

collaborative software engineering and distributed project management. In February 2014,

Infosys announced that it would set up an IT unit at Mohali by investing US$ 87.4 million; the

unit would provide employment to 15,000 youth.

• JCT Electronics is a flagship company of the Thapar Group, one of India‟s large industrial

conglomerates. JCTEL manufactures colour picture tubes for television sets and has a

production capacity of around 5.2 million units annually. The company's plants are located at

Vadodara (Gujarat) and Mohali (Punjab). It recorded revenues of around US$ 7.8 million in

2013-14.

• Puncom is India's premier telecom and IT equipment and solution provider. The company

recorded revenues of around US$ 3.5 million in 2013-14. Broadly, the company's activities

cover areas such as telecom equipment manufacturing, IT and software solutions, turnkey

projects as well as repair and maintenance. It has a manufacturing facility at Mohali near

Chandigarh.

• APLAB Ltd is a public enterprise incorporated in 1962 to provide solutions to business sectors

such as telecommunication, IT, retail banking, retail fuel-dispensing as well as power control

and conditioning. Its electronic products have markets, globally. The company has four

independent product divisions: test and measurement equipment, power conversion and

Uninterrupted Power Systems (UPS), self-service terminals for banking, and self service

terminals for petroleum sectors. In Punjab, the company has presence in Chandigarh,

Ludhiana, Amritsar and Jalandhar. It recorded revenues of US$ 15.8 million in 2013-14.

The textile sector in the state is strong on all aspects of the

value chain, i.e., from the raw material stage to the finished

products (garments) stage.

Punjab produces about 70 per cent of the best quality

cotton produced in India.

Punjab is among the largest producers of cotton and

blended yarn as well as mill-made fabrics in India. Ludhiana

is often referred to as the „Manchester of India‟.

In 2013-14, Punjab's cotton production stood at 2.1 million

bales, with projection of 1.4 million bales for 2014-15.

The textile industry accounted for approximately 19 per cent

of the total industrial production and contributes about 38

per cent of the total exports from Punjab in 2011–12.

In 2011-12, production of yarn in Punjab stood at 655

million kg; export of yarn and textiles was valued at

approximately US$ 1,390.8 million. Exports of hosiery and

readymade garments stood at US$ 521.4 million.

Punjab was the second largest cotton and blended yarn

producer in the country during 2011-12. Source: Annual Plan 2013-14, Government of Punjab

The state‟s textile policy provides incentives such as

development of clusters, benefits under the central

government‟s Technology Upgradation Fund Scheme

(TUFS), electricity at reduced rates, and government

support in the acquisition of land for textile mills.

The state has four mega textiles parks under

implementation:

Ludhiana Integrated Textile Park, Ludhiana.

Lotus Integrated Textile Park, Barnala.

Punjab Apparel Park, Ludhiana.

Rhythm Textile & Apparel Park, Nawanshehar.


• Nahar Group

• Vardhman Group

• JCT Limited

• Prince Textile Mills



FCI between US$ 27.6 million and US$ 82.9 million.




FCI of more than US$ 82.9 million.




100 per cent exemption from stamp duty on purchase/lease of land.

100 per cent exemption from property tax for 11 or 13 years, based on eligibility criteria, commencing after the date of

production.

50 per cent exemption from market fee, rural development fund and infrastructure development cess on purchasing cotton

during the eligible period.


FCI: Fixed Capital Investment

Nahar Group of

Companies

Vardhman Group

• The Nahar Group of companies is also known as the OWM Group. The group‟s portfolio

comprises spinning, knitting, fabrics and hosiery garments. It operates seven firms: Oswal

Woollen Mills Ltd, Nahar Spinning Mills Ltd, Nahar Industrial Enterprises Ltd, Nahar Poly Films

Ltd, Monte Carlo Fashion Ltd, Cotton County Retail Ltd and Nahar Capital & Financial Services

Ltd. Most of its manufacturing facilities are located at Ludhiana and Mohali. In 2013, the

company had announced plans to invest US$ 276.2 million for increasing its spinning and

denim capacity in Punjab. The group generated total operating income of US$ 1,046.9 million

during 2013-14.

• Vardhman Textiles Limited, formerly Mahavir Spinning Mills Limited, is a large textile producer

in India. The company operates in five segments: yarn, sewing thread, steel, fibre and fabric.

The yarn segment comprises production of various types of yarns (cotton, manmade fibres and

blends) and yarn processing activities. The company‟s subsidiaries include Vardhman Holding

Limited, Vardhman Textiles Limited, VMT Spinning Company Limited, VTL Investments Limited,

Vardhman Acrylics Limited, Vardhman Yarn & Threads Limited, Vardhman Nisshinbo Garments

Company Limited and Vardhman Special Steels Limited. The company has its corporate office

at Ludhiana, yarn manufacturing units at Ludhiana, Hoshiarpur and Malerkotla and dyeing units

at Ludhiana and Hoshiarpur. The company recorded revenues of US$ 1,045.6 million in 2013-

14.

JCT Ltd

Prince Textile Mills

• JCT Limited, one of the leading manufacturers of textiles and filament yarn, is the flagship

company of the Thapar group. It has operations in two distinct businesses: cotton, synthetic and

blended textiles, and nylon filament yarn. The company achieved total revenues of US$ 79.1

million during the six months ended March 31, 2014.

• JCT Limited offers a range of materials including 100 per cent cotton, 100 per cent polyester,

100 per cent nylon as well as various blends such as cotton-polyester, cotton-nylon and

polyester-viscose, single and plied yarns (both with counts ranging from 6s to 100s) as well as

cotton lycra and Dupont US-approved (polyester-cotton) lycra stretch material. The company

has an integrated textile facility at Phagwara, Punjab.

• Prince Textile Mills, based in Ludhiana, was established in 1990 for high-quality Pashmina

products. The company offers a wide range of hand-woven shawls and scarves of different

lengths.

• The company has a manufacturing facility at Ludhiana, Punjab.

The light engineering goods industry in Punjab includes

bicycle and bicycle parts, hand tools, sewing machines and

machine tools.

The industry accounted for approximately 21 per cent share

of the state‟s manufacturing output during 2012 and a 25

per cent share in industrial employment in the state.

In 2012, the state accounted for around 15.0 per cent of the

bicycle production and 80.0 per cent of bicycle parts

production in India. The industry is primarily located in

Ludhiana.

Hand tools such as wrenches, hand drills, pullers, vices,

hammers, screw drivers, pliers, spanners, etc., are

manufactured mainly in Ludhiana and Jalandhar. Sewing

machines and their parts are mostly manufactured in

Jalandhar.

The machine tools industry comprising lathes, shapers,

milling machines, drilling machines and special purpose

machines for different industries is mainly concentrated in

Batala and Ludhiana.


• Hero Cycles

• Avon Cycles

• Accurate (India)

Hero Cycles

Avon Cycles

Accurate (India)

• A part of the Hero Group and among the world‟s largest producers of bicycles, the company„s

annual bicycle production is 19,500 cycles per day. It started exporting to Africa and the Middle

East in 1963. Today, more than 50 per cent of its bicycle exports are to Europe and the US. It

has tied up with National Bicycle Industries, a part of the Matsushita Group, Japan, to

manufacture high-end bicycles. It has a manufacturing unit in Ludhiana. In 2012-13, the annual

turnover for the company was US$ 521.4 million.

• Avon Cycles is another leading bicycle manufacturer in India. It has invested significantly in

backward integration and has facilities for making almost all parts that are needed for bicycles,

including steel balls. It produces about two million bicycles per annum and exports to more than

80 countries. It has manufacturing units in Ludhiana. The company is recognised by the

Government of India as a „Golden Trading House‟. It is engaged in the development of a range

of electrically powered bikes.

• Accurate (India) is a manufacturer and exporter of oil mill machinery, spares and scaffolding

fittings. The company has its office at Simlapuri in Ludhiana.

The automotive industry in Punjab is dominated by farm and

light commercial vehicle manufacturers such as

International Tractors, Punjab Tractors and Swaraj Mazda.

The auto component industry in Punjab predominantly

comprises SSI units.

The auto components produced range from simple items

such as nuts and bolts to complex ones such as shafts,

radiators and axles.

Manufacturing units cater to both original equipment

manufacturers and replacement markets, some also export

to offshore destinations.

The state‟s tractor production is very high. It has a tractor

density of 82 per 1,000 ha, as compared to the world

average of 17.4.

A majority of auto parts manufacturers are concentrated in

Ludhiana, Jalandhar, Hoshiarpur and Phagwara.

In 2012–13, exports of auto parts from Punjab was valued

at US$ 138.7 million.


• International Tractors Ltd

• Swaraj Engines Ltd

• SML ISUZU Ltd

• Pabla Bearings Ltd

International Tractors

Ltd

SML ISUZU Ltd

Swaraj Engines Ltd

PABLA Bearings Ltd

• International Tractors is among the top three tractor manufacturers in India; the company has a

facility at Hoshiarpur. It sells tractors under the brand name „Sonalika‟. It exports to several

countries including South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh, Algeria,

Zambia, Senegal, Ghana, etc. It has a strategic alliance with YANMAR, Japan, for

manufacturing tractors in India and a marketing arrangement with Tata International for exports

to select South American and African markets. In 2012-13, the company recorded revenues of

US$ 536.0 million.

• SML ISUZU Limited, formerly known as Swaraj Mazda, based in Nawanshahar, Punjab, is a

light commercial vehicle manufacturer. The company manufactures vehicles for goods and

passenger applications. In the passenger carrier category, the company offers non-air

conditioned and air-conditioned bus models with capacity ranging from 10-41 seats. The

company registered revenues of US$ 147.0 million in and sold 9,760 vehicles in 2013-14.

• Swaraj Engines Limited (SEL) is a Punjab-based company manufacturing engines for Punjab

Tractors Ltd (PTL). It manufactures diesel engines, diesel engine components and spare parts.

The company is also a supplier of hi-tech engine components to SML ISUZU Limited. The

company‟s engine business constitutes approximately 95.0 per cent of its product revenue. The

remaining 5.0 per cent is contributed by the hi-tech engine components supplied to SML ISUZU

for the assembly of commercial vehicle engines. The company recorded revenues of US$ 100.9

million in 2013-14.

• Pabla is a leading manufacturer and exporter of superior quality bearings, agricultural

machinery bearings, home appliances bearings, auto bearings, two-wheeler auto bearings, four-

wheeler auto bearings, etc. The company is based in Ludhiana, Punjab. Its major markets

include India, Indonesia, Sri Lanka, Egypt, Europe, Middle East, Bangladesh, Thailand and

Singapore.

Industrial activity in the petrochemicals and fertiliser

categories includes refining, petrochemicals, chemicals,

fertilisers and other related products and distribution.

This sector is expected to grow with the expansion of

Hindustan Petroleum Corporation Ltd refinery project from

current capacity of 9 MMTPA to 11.2 MMTPA as well as the

increasing production of fertilisers in the state.


• Hindustan Petroleum Corporation Ltd

• National Fertilisers Ltd

• Punjab Chemicals and Crop Protection Ltd

• Punjab Alkalies & Chemicals Ltd

Hindustan Petroleum

Corp Ltd (HPCL)

National Fertilizer Ltd

Punjab Chemicals and

Crop Protection Ltd

Punjab Alkalies &

Chemicals Ltd

• HPCL is a Fortune 500 company. It recorded an annual turnover of US$ 38.8 billion in 2013-14.

• HPCL-Mittal Energy Limited (HMEL), a joint venture company of HPCL with Mittal Energy

Investments Pte Limited, has set up a state-of-the-art, 9 million metric tonnes per annum

(MMTPA) refinery at Bathinda in Punjab. Production at this refinery started in January 2012.

• NFL is one of the largest producers of nitrogenous fertilisers in the country. It is actively

promoting the use of bio-fertilisers in the state and produces neem-coated urea at its facility in

Bhatinda. The company recorded revenues of US$ 1.3 billion in 2013-14.

• Punjab Chemicals and Crop Protection Limited is engaged in the business of agrochemicals; it

manufactures technical grade pesticides, herbicides, fungicides and biocides, as well as their

formulations. The company has presence in both domestic and international markets. It has its

registered office in Chandigarh and recorded revenues of US$ 85.3 million in 2013-14.

• Punjab Alkalies & Chemicals Limited‟s three principal products include caustic soda lye,

chlorine and hydrochloric acid. Its plant is located at Naya Nangal in Punjab. The company

registered revenues of US$ 44.4 million in 2013-14.

Deputy

Commissioner District Single Window Clearance

Committee

The Single-Window Clearance Mechanism (SWM) has

been established under the Punjab Industrial Facilitation

Act, 2005, with the following three-tier structure to grant

exemption/relaxation from any of the provisions/rules of the

act:

District Single-Window Clearance Committee:

Instituted in each district of the state, the committee

is chaired by the Deputy Commissioner and has the

senior-most officers of district departments as its

members.

Empowered Committee: This committee is chaired

by the Chief Secretary to the Government of Punjab

and has the principal secretaries of state

departments as its members.

State Board: The board has the Chief Minister of

Punjab as its chairman and ministers of state

departments as its members.

Single-Window Clearance Mechanism in Punjab

Chief Secretary

Chief Minister of

Punjab

State Board

Empowered Committee


Level Nodal agency Composition & role

State-level Udyog Sahayak

The agency members include officers from the Punjab State Electricity Board (PSEB),

Punjab Pollution Control Board (PPCB), Punjab Infotech, PSIDC, PFC, PSIEC,

Department of Labour, PAIC and the Directorate of Industries.

The agency handles the composite application forms received from entrepreneurs and

assists in obtaining clearances from various departments within the stipulated time period.

It also provides guidance and information to investors about policies and programmes; it is

monitored by an empowered committee.

District-level DIC

The DIC is headed by the general manager at the district level and includes the

environmental engineer of the PPCB, the superintending engineer/executive engineer of

PSEB, the district officer of the Housing and Urban Development Authority and the

assistant director of factories from the Directorate of Factories. The DIC provides sanctions

and clearances for setting up small scale industrial units in the state.


PSIDC: Punjab State Industrial Development Corporation Ltd, PFC: Punjab Financial Corporation,

PSIEC: Punjab Small Industries & Export Corporation Limited, PAIC: Punjab Agro Industries Corporation Limited

Agency Description

Punjab Small Industry and Export

Corporation Limited

(PSIEC)

• Focuses on the development of SSI units and promotion of exports. • Responsible for setting up industrial focal points.

Punjab Finance Corporation

(PFC)

• Provides medium and long term loans for setting up new industrial units, expanding existing units and reviving sick units in the state (loan limits set by the State Financial Corporation Act, 1951).

Punjab Agro Industries Corporation

(PAIC)

• Acts as the promoter for agro-based industries in Punjab and provides inputs such as fertilisers, machinery, seeds and pesticides to farmers.

• Assists investors in obtaining all necessary approvals for new projects and facilitates contract farming.

Punjab State Industrial Development

Corporation Limited

(PSIDC)

• Promotes large- and medium-scale projects in the state.

• Provides escort services, especially for industrial ventures, and has been instrumental in facilitating the projects of Godrej-GE (white goods), Century Textiles (pulp and paper), Gujarat Ambuja (cement), ICI (paints) and HPCL-Saudi Aramco (mega project for gas).

• Acts as an infrastructure developer and financial facilitator.


Agency Contact information

Punjab Small Industry and Export Corporation Limited

(PSIEC)

Udyog Bhawan 18, Himalaya Marg, Sector-17/A

Chandigarh-160017 Phone: 91-172-2704756, 2704865

Fax: 91-172-2702039 E-mail: [email protected]

Punjab State Industrial Development Corporation Limited

(PSIDC)

Udyog Bhawan 18, Himalaya Marg, Sector-17

Chandigarh-160 017 Phone: 91-172-2702 881-84, 2702 791

Fax: 91-172-2704 145 E-mail: [email protected], [email protected]

Service or facility Agency Timelines

Industrial License

Sponsorship for raw materials and inputs

Land allotment

Department of Industries

2 weeks

4 weeks

4 weeks

Incentives Udyog Sahayak

Sales tax exemption: 1 week

Investment incentive: 4 weeks

Other incentives: 2 weeks

Sanction of loan PFC/PSIDC 8 weeks

Release of power connection PSEB

Load up to 20 kW: 8 weeks

Load from 21–100 kW: 12 weeks

Load from 101–500 kW: 12 weeks

Load above 500 kW: 90 days

Site approval/environmental clearance

Adequacy certificate

No-objection certificate

Department of Environment,

Pollution Control Board

60 days

30 days

Green category: 15 days

Red category: 30 days


Cost parameter Cost estimate

Industrial land (per sq ft) US$ 15–115

Office space rent (per sq ft per month) US 50 cents to US$ 2.3

Power cost (per kWh) Industrial: US 9.3 cents to US 10.4 cents

Labour cost (minimum wages per day)

Agriculture: US$ 3.1

Non-agriculture:

Unskilled: US$ 3.0

Semi-skilled: US$ 3.1–3.2

Skilled: US$ 3.3–3.5

Highly skilled: US$ 3.8–3.9

Water Commercial and industrial: US 15.7 cents per 1,000 litres

Source: Ministry of Labour and Employment, Government of India, Punjab State

Electricity Regulatory Commission, Industry sources

New and Renewable Sources of Energy (NRSE) Policy, 2012

• To maximise and improve the share of new and renewable sources of energy to 10 per cent of

the total installed power capacity in the state by 2022.

Read more

Objective

Industrial Promotion Policy, 2013

• Enhance the contribution of secondary and tertiary sectors in the state‟s growth.

• Ensure overall development of the state by providing incentives to less developed zones.

Read more

Objectives

Industrial Policy, 2009

• To establish synergy between the agriculture and industrial sectors, rejuvenate the small scale

industries and attract more investments in the large scale industries.

Read more

Objective

http://peda.gov.in/eng/Data/pdfs/policies_acts.pdf

http://www.pbindustries.gov.in/downloads/Fiscal incentives 03-jun-13.ppt

http://pbindustries.gov.in/pdf/Industrial_Policy_2009__48 - 06 Oct2009.pdf

IT/Knowledge Industrial Policy, 2009

• To create an enabling environment for IT and knowledge-based industries by focusing on

creating the necessary infrastructure, developing human capital, proactively engaging with

investors and ensuring effective policy implementation. Read more

Objective

Agro-Industrial Policy, 2009

• To make Punjab the destination of choice for investors and processors, globally as well as

domestically.

Read more

Objective

Special Economic Zone (SEZ) Act, 2009

• To promote SEZs in the state by providing unique incentives to infrastructure developers.

• To promote and set up self-contained large industrial townships.

Read more

Objectives

http://www.punjabinfotech.gov.in/images/PICTC/Docs/policy1.pdf

http://www.pbindustries.gov.in/pdf/Industrial_Policy_2009__48 - 06 Oct2009.pdf

http://www.pbindustries.gov.in/pdf/THE PUNJAB SPECIAL ECONOMIC ZONES ACT, 2009.pdf

Notification Textile Policy, 2006

• To facilitate and promote the growth of the textile industry, achieve global standards in product

quality, contribute more to exports and encourage textile clusters.

Read more

Objective

Land Allotment Policy, 2009

• To accelerate the pace of growth of industry in the state and make the process of land acquisition

quicker for entrepreneurs.

Read more

Objective

Tourism Policy, 2003

• To promote tourism and develop hospitality infrastructure with private sector participation

(Tourism was declared to be an industry in Punjab in 1996).

Read more

Objective

http://www.pbindustries.gov.in/Notifications/Textile Policy 2006.pdf

http://www.pbindustries.gov.in/downloads/notification _2008.pdf

http://www.pbindustries.gov.in/downloads/PUNJAB_TOURISM.pdf

Fiscal Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 46.88

2012-13 54.31

2013-14 60.28

2014-15* 60.6

Average exchange rates

*Average for the first three quarters

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Documents

Aranca Research, Directorate of Economics & Statistics-Source: Statistical Abstract Punjab 2012, PHD Chamber, Aranca Research, Directorate of Economics & Statistics- *4th Advanced