         • ‟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 Granary of India 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.

• 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 Textile hub and other incentives for the creation of textile infrastructure, the state offers opportunities for investment.

• Punjab ranks first in India in terms of infrastructure facilities offered. Punjab‟s road, rail and Best infrastructure air transport network, connectivity, construction of bridges and infrastructure facilities are facilities among the best.

• Based on a World Bank study conducted in 2009, Punjab is considered the best place to Conducive business do business in India. It was ranked the third most attractive destination in India for new environment investments in 2012-13. The state‟s policies, incentives for investors and overall macro- economic factors encourage investment.

Source: Statistical Abstract Punjab 2012, PHD Chamber, Aranca Research, Directorate of Economics & Statistics- *4th Advanced estimates FertileGrowing and productive demand land Policy and fiscal incentives • The confluence of five rivers makes • Punjab offers industries with a wide Punjab‟s agricultural land rich and range of fiscal and policy incentives productive. Approximately 85 per cent under the Industrial Policy 2009 and of the state‟s land is under cultivation 2013. compared with the national average of • The state has policies to offer sector- 40 per cent. specific incentives to sectors such as • Punjab is one of the largest wheat Information Technology (IT), SEZ and and rice producers in India. It is also a food parks. leading exporter of rice, including the well known Basmati variety. Advantage Punjab High economic Strong infrastructure

growth • Punjab has a well developed social • The average GSDP growth rate for and industrial infrastructure. Its the state of Punjab was about 14.1 transport network is one of the best in per cent between 2004-05 and 2013- India, with easy access to key markets 14. such as the Delhi-NCR region. • • The state provides investment Punjab has witnessed impressive opportunities in sectors such as growth in the number of clusters and textiles, agro-based industries, IT & hubs, with the establishment of several ITeS, automotive and auto PPPs. components, sports goods and light engineering goods.

PPP: Public-Private Partnership, GSDP - Gross Domestic State Product • Connect all major towns by • Provide quality education to all developing four-lane and six- people, even in rural areas, by lane highways. building one school after every 2 km. • Establish Bus Rapid • Aim to provide education with Transport Systems (BRTS) in practical knowledge through all major cities in the state. workshops and industrial visits.

• Establish PHCs and specialty • Encourage SMEs through hospitals covering wider adequate financing and policy areas. Transport Education initiatives to increase • Establish medical and nursing employment. institutions to produce • Set up an SEZ in each region qualified healthcare Health Industries and develop backward and professionals. Vision border areas. 2022 Investment • Check the diversion of • Computerise government Environment departments and adopt e- promotion agriculture/forest land for governance to enhance the urbanisation and ease of doing business. industrialisation. Agriculture Infrastructure • Attract investments from agro- • Ensure that industries adopt based and service sector eco-friendly technologies and industries. rainwater harvesting.

• Diversify into other crops after considering their global market • Adopt a mix of energy sources demand. for power generation and at least • Adopt technology in all areas of one captive nuclear power plant. agriculture and encourage • Build international airports in organic farming. each of the regions of Majha, Malwa and Doaba. Source: Confederation of Indian Industry SME: Small and Medium Enterprises, PHS: Primary Health Centres 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.

Parameters Punjab

Capital Geographical area (sq km) 50,362 Administrative districts (No) 22 Population density (persons per sq km)* 551 The state is bordered by the Pakistani province of Punjab to its west, Jammu & Kashmir in the north, Himachal Pradesh Total population (million)* 27.7 in the northeast, Haryana in the south and southeast, and Male population (million)* 14.6 Rajasthan in the southwest. Female population (million)* 13.1

The most commonly spoken language of the state is Sex ratio (females per 1,000 males)* 895 Punjabi. Hindi and English are the other widely used languages. Literacy rate (%)* 75.8

Amritsar, , , Bhatinda, , Source: Government of Punjab website, www.punjabgovt.nic.in, and are some of the major cities in the state. Census 2011 Parameter Punjab All states Source

Economy Planning Commission Databook, current prices, GSDP as a percentage of all states‟ GSDP 3.0 100.0 October 2014 Planning Commission Databook, current prices, Average GSDP growth rate(%)* 11.18 11.54 October 2014 Planning Commission Databook, current prices, Per capita GSDP (US$) 1,733.2 1,833.24**** October 2014 Physical Infrastructure

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

Telecom Regulatory Authority of India, Wireless subscribers (No) 30,615,363 952,344,219 as of January 2015 Ministry of Communications & Information Broadband subscribers (No) 1,546,150** 94,490,000 Technology, as of January 2015 Ministry of Road Transport & Highways, National Highway length (Km) 2,136.2 96,260 as of January 2015

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

*Calculated in Indian Rupee terms, **As of March 2014 indiastat.com, ***Includes only operational airports, ,****As of December 2014 Parameter Punjab All states Source

Social Indicators

Literacy rate (%) 75.8 74.0 Census 2011

SRS Bulletin (www.censusindia.gov.in), Birth rate (per 1,000 population) (2013) 15.7 21.4 September 2014 Ease of Doing Business

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

PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System, *Includes Chandigarh, Punjab, Himachal Pradesh and Haryana Punjab‟s gross state domestic product (GSDP) was US$ GSDP of Punjab at current prices (in US$ billion) 52.6 billion at current prices in 2013-14 as against US$ 21.6 54.7 52.5 billion in 2004-05. 49.6 52.6 CAGR 37.8 The state‟s GSDP increased at a compound annual growth 14.1%* 37.7 41.6 rate (CAGR) of 14.1* per cent between 2004-05 and 2013- 14. 28.2

21.6 24.6

2005-2006 2004-2005 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Source: Planning Commission Databook, December 2014 *In Indian rupee terms Punjab‟s net state domestic product (NSDP) at current NSDP of Punjab at current prices (in US$ billion) prices was US$ 46.6 billion in 2013-14 as against US$ 19.2 billion in 2004-05. 46.4 46.6 48.5 44.3 Between 2004-05 and 2013-14, NSDP increased at a CAGR 14.1%* 37.2 CAGR of 14.1* per cent. 33.7 33.6 25.0 21.7

19.2

2005-2006 2004-2005 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Source: Planning Commission Databook, December 2014 *In Indian rupee terms The state‟s per capita GSDP at current prices was US$ GSDP per capita of Punjab at current prices 1,733.2 in 2013-14, up from US$ 830.7 in 2004-05. (in US$)

CAGR 1,849 1,762 1,733 Punjab‟s per capita GSDP expanded at a CAGR of 12.1* 12.1%* 1,708 per cent between 2004-05 and 2013-14. 1,461 1,376 1,348

929 1,044

831

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Source: Planning Commission Databook, December 2014 *In Indian rupee terms Punjab‟s per capita NSDP at current prices was US$ NSDP per capita of Punjab at current prices 1,536.8 in 2013-14 compared with US$ 738.7 in 2004-05. (in US$)

CAGR The state‟s per capita NSDP rose at a CAGR of 12.1* per 1,556 cent between 2004-05 and 2013–14. 12.1%* 1,525 1,640 1,537 1,303 1,226 1,199 928

739 820

2005-2006 2004-2005 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Source: Planning Commission Databook, December 2014 *In Indian Rupee terms With a CAGR of 15.9 per cent*, the tertiary sector has been GSDP composition by sector 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, CAGR* contributing 49.2 per cent to the state‟s GSDP. The growth 42.6% 49.2% was driven by trade, hotels, real estate, finance, insurance, 15.9% communications, transport and other services. 24.7% 13.4% 23.3% The secondary sector rose at a CAGR of 13.4 per cent* between 2004-05 and 2013-14, driven by increasing 32.7% manufacturing, construction and electricity as well as 11.9% 27.4% improved gas and water supply. 2004–2005 2013–2014 The primary sector expanded at a CAGR of 11.9 per cent* Primary sector Secondary sector Tertiary sector between 2004-05 and 2013-14.

Source: Planning Commission Databook, December 2014 *In Indian Rupee terms Punjab‟s total food grain production for 2013-14 is estimated to be around 27.8 million metric tonnes*. Annual production – Crop 2013-14 Wheat is the major crop produced by the state, covering („000 metric tonnes) almost half of the cropped area. In 2013-14, estimated Wheat 16,300** wheat production stood at 16.3 million metric tonnes. Rice 10,815**

Punjab is the second-largest wheat producer in India; its Sugarcane 560** wheat and rice contribution to the central pool is estimated Cotton 1,635* at 43.4 per cent and 29.3 per cent, respectively, in 2013-14. Maize 790*** In 2013-14, Punjab‟s total fruit production was 1.54 million Barley 60*** metric tonnes. Gram 5^ Total oilseeds 119** Total pulses 49** Total food grain 27,801** Total fruits 1,541 Total vegetables 3,936

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 According to the Department of Industrial Policy & Break-up of outstanding investments by sector Promotion (DIPP), cumulative FDI inflows from April 2000 to (2013-14) January 2015 amounted to US$ 1,331 million*.

In 2013-14, outstanding investments in the state were US$ 6% 35.9 billion. 16% Manufacturing 1%

Electricity In 2013-14, the services sector maintained its highest share of outstanding investments, accounting for about 40.7 per 36% Services cent. It was followed by the electricity sector with a share of about 35.8 per cent and construction & real estate with Irrigation about 16.4 per cent. 41% Construction & Real estate

Source: CMIE, Department of Industrial Policy & Promotion (DIPP) *Includes Chandigarh, Punjab, Himachal Pradesh and Haryana Total exports of industrial goods from Punjab were valued at US$ 4.4 billion in 2012-13. Exports during 2013-14 are Exports 2011-12 Principal items anticipated to total US$ 4.3 billion*. (US$ million)

In 2011-12, the state‟s principal export items were yarns Yarn and textile 1,390.8 and textiles, hosiery and readymade garments, rice, sports Hosiery and readymade goods, bicycles and bicycle parts. 670.5 garments

Ludhiana, Jalandhar and Patiala accounted for around 91.9 Rice 461.0 per cent of Punjab‟s total exports of industrial goods in 2011-12. Sports goods 353.2

Punjab‟s exports (US$ billion) Bicycle and parts 273.7 Engineering goods 187.1 4.4 4.4 4.3 Electrical switch gears and 3.8 139.1 electrical accessories 3.4 Auto parts 138.7

Food products 64.7

Machine tools/hand tools 49.4

Source: Statistical Abstract Punjab, 2013 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014* Economic Survey of Punjab 2013-14, *Projected Punjab‟s government had estimated total receipts of US$ 17,217.9* million and planned total expenditure of US$ Annual Budget 11,665.9* million for 2014-15. (Estimates in US$ million)*

The state‟s tax and non-tax revenue was estimated to be 2014-15 US$ 2,744.7* million and US$ 1,070.0* million, respectively, for 2014-15. Revenue receipts 17,217.9

Capital expenditure for 2014-15 was anticipated to be US$ Revenue expenditure 11,665.9 836.2* million. Revenue A/C surplus 5,552.0 Expenditure on public order & safety affairs was projected to be US$ 1,887.0* million for 2014-15, while for economic Capital receipts 405.6 affairs, it was estimated at US$ 1,196.0* million. Capital expenditure 836.2 Highlights of development program for 2014-15: Capital A/C deficit 430.6 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 Source: Finance Department, Government of Punjab, White Paper Budget 2014-15 supply and sanitation projects, and US$ 592.9* for *Figures converted at an assumed exchange rate of INR 60 per US$ irrigation.

A total provision of US$ 517.8* million was made for health & family planning for the state. 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.

Road type Road length (km) National Highways 2,136.2 State Highways 1,477* Source: Maps of India Major district roads 2,107 Rural roads 58,688

Source: Ministry of Road Transport & Highways, Department of Planning, Government of Punjab, Economic Survey of Punjab 2012-13 *As of March, 2012 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 -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 Installed power capacity (MW) 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. 10,256

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 8,354 MW to total capacity. 7,509 7,056 The Punjab Energy Development Agency (PEDA) is the 7,019 nodal organisation for renewable energy development in the state. 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015* In April 2010, the Government of Punjab unbundled Punjab State Electricity Board (PSEB) into two companies: Punjab Source: Central Electricity Authority State Power Corporation Limited (PSPCL) and Punjab State *As of January 2015 Transmission Corporation Limited (PSTCL).

The state of Punjab had 100 per cent village electrification as of March 2014. 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 , 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 According to the Telecom Regulatory Authority of India (TRAI), Punjab telecom circle had 30.62 million wireless Telecom infrastructure subscribers and 1.15 million wire-line subscribers, as of Wireless connections (January 2015) 30,615,363 January 2015. Wire-line connections (January 2015) 1,145,346 The tele-density* in the state was 107.23 per cent, Broadband subscribers 1,546,150^ significantly higher than the national average of 75.23 per Post offices 3,850** cent, as of March 2014. Telephone exchanges 1,496** As of March 2013, the state had 1,496 telephone exchanges. Major telecom operators in Punjab The state had 3,850 post offices as of March 2013. Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel Idea Cellular Vodafone Essar Reliance Communications Tata Teleservices Aircel Limited

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 In 2011, Punjab ranked 8th among the urbanised states in India, with 37.49 per cent urbanisation rate. Chandigarh – The original planned city

For 2005-14, the Government of India had allocated US$ • Chandigarh, the joint capital city of Haryana and 368.9 million to Punjab for 24 projects under the Jawaharlal Punjab, was developed as a planned city. It is also a Nehru National Urban Renewal Mission (JNNURM). union territory.

• Today, it has expanded in terms of industry as well Under the Urban Infrastructure and Governance (UIG) as population. programme, five additional projects have been sanctioned and are in transition phase. • Chandigarh still remains a model for many other Indian cities in terms of civic amenities. The JNNURM program was extended for two years i.e. • 2012-14. An outlay of US$ 1,407 million was allocated It has one of the best electricity distribution systems under the 12th Five-Year Plan. in India. The Union Ministry of Power selected it as one of the few model distribution centres in the country. Some of the key areas of development are roads and flyovers, water supply, sewerage and solid-waste • The Municipal Corporation of Chandigarh is management. 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 Total project Project name Sector PPP type cost Stage (US$ million) 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 Healthcare DBFOT 22 Construction Development of bus terminal cum commercial complex at Urban BOT-Annuity 29 In operation Mohali development

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 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 Category Literacy rate (%) and female literacy rate is 70.7 per cent. At 85.4 per cent, Overall 75.8 district has the highest literacy rate in Punjab. Male 80.4 Literacy rate in Punjab‟s urban areas is 83.2 per cent and in Female 70.7 rural areas is 71.4 per cent (based on the 2011 Census). Higher education infrastructure (2011-12) The state had 102 engineering colleges and 127 Universities 10* polytechnic colleges as of 2011-12. Arts, commerce, home science 238* As of September 2012, the state had 10 universities. Panjab and science colleges University is more than a 100 years old and is well regarded Engineering colleges 102 globally. Polytechnic colleges 127

The Punjab Agricultural University in Ludhiana is Management institutions 124 well known for its contribution to education, research and extension services in the field of agriculture. Position of elementary and secondary education (2011-12)* The state government is planning to set up an Indian Institute of Information Technology (IIIT) in Kapurthala. Primary schools 15,334 Middle schools 5,730 High/senior secondary schools 8,882

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 Major educational institutes in Punjab are: Punjab‟s primary education statistics (2012-13) Indian Institute of Science Education and Research Primary: 89.0 (IISER), Mohali. Net Enrolment Ratio (NER) Upper primary: 70.3

Institute of Nano Science and Technology (INSE), Gross Enrolment Ratio Primary: 111.2 Mohali. (GER) Upper primary: 96.7

Primary: 1.44 National Agri-Food Biotechnology Institute (NABI), Dropout rate Mohali. Upper primary: 1.45

Indian School of Business (ISB), Mohali. Source: Department of Planning, Government of Punjab, University Grants Commission Postgraduate Institute of Medical Education and GER: Gross Enrolment Ratio – Number of students enrolled in school Research (PGIMER), Chandigarh. 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 Indian Institute of Technology, Ropar.

University Business School, Chandigarh.

Punjab Agricultural University, Ludhiana.

National Institute of Technology, Jalandhar. 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.

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 The public healthcare infrastructure of the state has a three- tier structure comprising hospitals, primary health centres Health indicators of Punjab (2013) and sub-centres, health units and community health Population served per doctor 1,207^ centres. Birth rate* 15.7 During 2011–12, the average radius served per healthcare Death rate* 6.7 institution was 2.68 km. Infant mortality rate** 26.0

Around 90.0 per cent of non-hospital healthcare and 67.0 Life expectancy at birth (years) per cent of hospital care cases are handled by private Male (2011-15) 69.7 healthcare services. Female (2011-15) 72.8 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. Hotel infrastructure in Punjab (2010)

The state has a number of sports stadiums and clubs in Category No of hotels Total rooms Chandigarh, Mohali, Amritsar, Jalandhar and other parts of the state. 5 Star 4 543

4 Star 7 358 A multi-purpose sports stadium to host national as well as international sports is expected to be completed by the end 3 Star 55 1,588 of June 2013. 2 Star 44 717

The state has a scheme for having a stadium at the block- 1 Star 2 29 level, with indoor facilities for wrestling, boxing, judo, weight lifting, etc. Construction of such facilities has been completed in 12 blocks. Source: Department of Sports, Department of Tourism, Government of Punjab 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.

Name and location Primary industry Description

Set up by Punjab Information and Communication Technology Corporation Electronics Township Electronics Limited (Punjab Infotech) for the promotion and growth of the electronics (ELTOP), Mohali industry in the state.

Clusters identified for bicycles and bicycle parts (Ludhiana), steel re-rolling Industry clusters Industry specific (Mandi Gobindgarh), textiles (Ludhiana), sports and leather goods (Jalandhar), and woollens (Amritsar).

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 Food Park Project, Sirhind, Agro-processing 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.

Integrated textile park with 115 plots jointly developed by Punjab Small Apparel Park, Doraha, Textiles Industry and Export Corporation Limited and the Association of Textile Ludhiana Industry.

Biotech Park, Dera Bassi, Has all the basic facilities including water, electricity, R&D lab and sewage Biotech Chandigarh treatment facility, etc.

IT and electronics; SEZ status granted to QuarkCity in Mohali to promote IT and electronics SEZ, Mohali pharmaceuticals 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- Key industries in Punjab based industries, food products, light engineering goods, automotives, chemicals, sports goods, textiles, • Tractors and auto components pharmaceuticals, paper and paper products, metal and alloy • Agro-based industries products. • Bicycles and bicycle parts • Chemical products Punjab State Industrial Development Corporation Ltd • Food products (PSIDC) and Punjab Small Industry and Export Corporation • Light engineering goods (PSIEC) are responsible for developing industrial • Metal and alloy products infrastructure in the state. Punjab Agro Industries • Pharmaceuticals Corporation (PAIC) is responsible for developing agro- • Paper and paper products based units. • Sports goods

• Textiles The state government has set up “Udyog Sahayak” as the state-level nodal agency and District Industry Centres (DIC) • IT and electronics 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. The agriculture sector contributed around 27.4 per cent to the state‟s GSDP in 2013-14. Some of the key players

• Nestle India Approximately 82 per cent of the state‟s land is under • MILKFED cultivation compared with the national average of 40 per cent. Around 98 per cent of the cultivable area is under • Jagjit Industries Ltd assured irrigation. • Markfed

Of the total manufacturing output in 2012-13, manufacturing of food products emerged as the largest contributor, Source: Statistical Abstract Punjab 2013 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. 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.

• 85 per cent exemption on VAT for 10 years.

• 80 per cent exemption on CST for 10 years.

FCI of more than US$ 16.6 million.

• 90 per cent exemption on VAT for 12 years.

• 85 per cent exemption on CST for 12 years.

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 • 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 MilkFed 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.

Jagatjit Industries Ltd (JIL) • 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 Markfed 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 The Industrial Policy 2009 includes special incentives and industry are aimed at promoting Punjab as an attractive concessions by the Punjab Government to facilitate growth destination for the industry. Mohali has been developed as of the state‟s IT and ITeS industry. an IT and ITeS hub in the state. Infrastructure development: Development of IT In 2012-13, software exports (made by registered units Parks/SEZs, IT estates and IT corridors through STPI) from the state were around US$ 394.7 million. Other incentives: Duty exemptions, exemption from statutory power cuts, 100 per cent stamp duty Punjab Infotech is the nodal agency for the promotion and reimbursement, exemption from the land use zoning development of the electronics, telecommunication and IT regulation and special incentives for mega projects industries within the state. Electronics Township of Punjab (ELTOP) is situated on a The state has launched a venture capital fund, with a 290-acre site in Mohali. This township is one of the fastest corpus of nearly US$ 4.3 million, for the IT industry. It has emerging centres for electronic production in India. been funded jointly by Punjab State Industrial Development Corporation (PSIDC), Punjab Infotech, Punjab Financial Corporation (PFC) and the Small Industries Development Some of the key players Bank of India (SIDBI). • Infosys Ltd

• JCT Electronics Ltd The electronic test and development centre at Mohali provides testing facilities to electronics industries. • Punjab Communications Ltd • APLAB Ltd The Government of Punjab has allocated 2.72 acres of land for setting up a new STPI centre at Amritsar. STPI: Software Technology Parks of India Incentives under the Industrial Promotion Policy 2013:

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

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.

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

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.

Source: Department of Industry, Government of Punjab FCI: Fixed Capital Investment Incentives under the Industrial Promotion Policy 2013:

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.

Source: Department of Industry, Government of Punjab • Infosys, which recorded revenues of US$ 8.3 billion in 2013-14, has thirty two development Infosys Ltd 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 Ltd • JCT Electronics is a flagship company of the Thapar Group, one of India‟s large industrial (JCTEL) 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.

Punjab Communications • Puncom is India's premier telecom and IT equipment and solution provider. The company Ltd 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 APLAB Ltd 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 The state‟s textile policy provides incentives such as value chain, i.e., from the raw material stage to the finished development of clusters, benefits under the central products (garments) stage. government‟s Technology Upgradation Fund Scheme (TUFS), electricity at reduced rates, and government Punjab produces about 70 per cent of the best quality support in the acquisition of land for textile mills. cotton produced in India. The state has four mega textiles parks under Punjab is among the largest producers of cotton and implementation: blended yarn as well as mill-made fabrics in India. Ludhiana is often referred to as the „Manchester of India‟. Ludhiana Integrated Textile Park, Ludhiana.

In 2013-14, Punjab's cotton production stood at 2.1 million Lotus Integrated Textile Park, Barnala. bales, with projection of 1.4 million bales for 2014-15. Punjab Apparel Park, Ludhiana. The textile industry accounted for approximately 19 per cent of the total industrial production and contributes about 38 Rhythm Textile & Apparel Park, Nawanshehar. per cent of the total exports from Punjab in 2011–12.

In 2011-12, production of yarn in Punjab stood at 655 Some of the key players million kg; export of yarn and textiles was valued at • Nahar Group approximately US$ 1,390.8 million. Exports of hosiery and • Vardhman Group readymade garments stood at US$ 521.4 million. • JCT Limited Punjab was the second largest cotton and blended yarn • Prince Textile Mills producer in the country during 2011-12. Source: Annual Plan 2013-14, Government of Punjab Incentives under the Industrial Promotion Policy 2013:

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

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

• 80 per cent exemption on VAT for 11 years.

• 80 per cent exemption on CST for 11 years.

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

FCI of more than US$ 82.9 million.

• 90 per cent exemption on VAT for 13 years.

• 80 per cent exemption on CST for 13 years.

• Cumulative limit of VAT/CST at 90 per cent of FCI.

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. Source: Department of Industry, Government of Punjab FCI: Fixed Capital Investment Nahar Group of • The Nahar Group of companies is also known as the OWM Group. The group‟s portfolio Companies 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 Vardhman Group 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 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 JCT Ltd 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 • 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 Some of the key players machine tools. • Hero Cycles

• Avon Cycles The industry accounted for approximately 21 per cent share of the state‟s manufacturing output during 2012 and a 25 • Accurate (India) 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 and Ludhiana. • A part of the Hero Group and among the world‟s largest producers of bicycles, the company„s Hero Cycles 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 Avon Cycles 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) • 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 Some of the key players International Tractors, Punjab Tractors and Swaraj Mazda. • International Tractors Ltd

• Swaraj Engines Ltd The auto component industry in Punjab predominantly comprises SSI units. • SML ISUZU Ltd • Pabla Bearings Ltd 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 is among the top three tractor manufacturers in India; the company has a International Tractors facility at Hoshiarpur. It sells tractors under the brand name „Sonalika‟. It exports to several Ltd 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 Ltd • 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 Swaraj Engines Ltd 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 Bearings Ltd • 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, Some of the key players fertilisers and other related products and distribution. • Hindustan Petroleum Corporation Ltd This sector is expected to grow with the expansion of • National Fertilisers Ltd Hindustan Petroleum Corporation Ltd refinery project from • Punjab Chemicals and Crop Protection Ltd current capacity of 9 MMTPA to 11.2 MMTPA as well as the • Punjab Alkalies & Chemicals Ltd increasing production of fertilisers in the state. Hindustan Petroleum Corp Ltd (HPCL) • 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.

National Fertilizer Ltd • 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 • Punjab Chemicals and Crop Protection Limited is engaged in the business of agrochemicals; it Crop Protection Ltd 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 Ltd • 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. The Single-Window Clearance Mechanism (SWM) has Single-Window Clearance Mechanism in Punjab 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: Chief Minister of State Punjab Board District Single-Window Clearance Committee: Instituted in each district of the state, the committee is chaired by the Deputy Commissioner and has the Chief Secretary Empowered Committee senior-most officers of district departments as its members.

Deputy Empowered Committee: This committee is chaired District Single Window Clearance Commissioner Committee by the Chief Secretary to the Government of Punjab and has the principal secretaries of state departments as its members.

Source: Department of Industry, Government of Punjab State Board: The board has the Chief Minister of Punjab as its chairman and ministers of state departments as its members. Level Nodal agency Composition & role

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.

State-level Udyog Sahayak 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.

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 District-level DIC 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.

Source: Department of Industry, Government of Punjab 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 • Focuses on the development of SSI units and promotion of exports. Corporation Limited (PSIEC) • Responsible for setting up industrial focal points.

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

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

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

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

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

• Acts as an infrastructure developer and financial facilitator.

Source: Department of Industry, Government of Punjab Agency Contact information

Udyog Bhawan 18, Himalaya Marg, Sector-17/A Punjab Small Industry and Export Corporation Limited Chandigarh-160017 (PSIEC) Phone: 91-172-2704756, 2704865 Fax: 91-172-2702039 E-mail: [email protected]

Udyog Bhawan 18, Himalaya Marg, Sector-17 Punjab State Industrial Development Corporation Limited Chandigarh-160 017 (PSIDC) 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 2 weeks Sponsorship for raw materials and inputs Department of Industries 4 weeks Land allotment 4 weeks

Sales tax exemption: 1 week Incentives Udyog Sahayak Investment incentive: 4 weeks Other incentives: 2 weeks

Sanction of loan PFC/PSIDC 8 weeks

Load up to 20 kW: 8 weeks Load from 21–100 kW: 12 weeks Release of power connection PSEB Load from 101–500 kW: 12 weeks Load above 500 kW: 90 days

60 days Site approval/environmental clearance Department of Environment, 30 days Adequacy certificate Pollution Control Board Green category: 15 days No-objection certificate Red category: 30 days

Source: Department of Industry, Government of Punjab 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

Agriculture: US$ 3.1 Non-agriculture: Unskilled: US$ 3.0 Labour cost (minimum wages per day) 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 Industrial Promotion Policy, 2013

Objectives • 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

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

Objective • 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

Industrial Policy, 2009

Objective • 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 Agro-Industrial Policy, 2009

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

Read more

IT/Knowledge Industrial Policy, 2009

Objective • 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

Special Economic Zone (SEZ) Act, 2009

Objectives • 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 Land Allotment Policy, 2009

Objective • To accelerate the pace of growth of industry in the state and make the process of land acquisition quicker for entrepreneurs.

Read more

Notification Textile Policy, 2006

Objective • 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

Tourism Policy, 2003

Objective • To promote tourism and develop hospitality infrastructure with private sector participation (Tourism was declared to be an industry in Punjab in 1996).

Read more Average exchange rates

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 for the first three quarters India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF.

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