Why in news:

• Having received 2,295 investment proposals amounting to Rs 41,043 crore in the last 11 months, the state government of Punjab is gearing up to attract investment by creating a land bank, including 20 industrial clusters and 15 industrial parks.

Key Points:

• The state Finance Minister Harpal Singh Cheema while presenting the budget announced that the government envisages developing 20 rural industrial clusters and 15 industrial parks in order to accelerate the growth of MSMEs. Emphasis will also be put on start-ups and innovation by providing the best ecosystem for ease of doing business in the state.
• In addition to this, the Greater Mohali Area Development Authority (GMADA) is developing a new urban estate on an area of 1,600 acres at Sahibzada Ajit Singh Nagar for the development of residential, commercial and industrial plots.
• Further, in order to boost the secondary sector, manufacturing of electric vehicles, auto components, sports goods, hand tools, agricultural machinery and equipment, paper-based packaging units, shredding-based management units and one district one product have been included in the category of the “thrust sector” for the purpose of higher fiscal incentives.
• In addition to these measures, the state government would continue providing support to the industry and an outlay of Rs 3,751 crore had been provisioned for FY 2023-24 i.e. an increase of 19% over Financial Year 2022-23 (BE). For capital subsidy to industrial units, Rs 75 crore and for industrial focal points, an initial amount of Rs 50 crore has been proposed for FY 2023-24. Further, an amount of Rs 2,700 crore has been provided for providing subsidised power to the industrial units.