Punjab announces incentive package for sugar complexes

CHANDIGARH : The Punjab Government Wednesday notified the new package of concessions for integrated sugar complexes to be setup in the border region of the state.

Disclosing this here Wednesday Tikshan Sud Industry and Commerce Minister said that the policy was aimed to give impetus industrialization of border region with special focus on sugar industry.

He said that as Punjab was net importer of sugar with consumption exceeding demand, this policy is set to reverse the trend. He said that policy aims to encourage integrated sugar complexes to make them financially viable projects.

The Industry Minister said taht package was available for Sugar Complex with minimum Fixed Capital Investment of Rs.200 crore, comprising of a Sugar Mill with minimum capacity of 3000 TCD, Power Generation Unit of minimum 15 MW, a Distillery of 30 KL. He said that Brewery , second distillery (optional and if requested) that may be grain based or sugar cane based ethanol distillery, would be entitled for these concessions in addition to the incentives admissible to the mega projects i.e. stamp duty exemption on purchase of land and exemption from electricity duty upto 5% for 5 years concessions .

Giving the details of the package Sud said that package includes 100% exemption from Electricity Duty on export of Power from the Power Generation Unit for a period of 10 years from the date of production. It also provided PML quota of 150% (instead of normal quota of 100%) the Distillery. He said that it has been provided in the package that in addition to the allocation of villages within the radius of 7.5 Kms. of such complexes as per normal policy of the Agriculture Department, allocation of remaining area within two sugar mills will be done keeping in mind the capacity of each sugar mill.

The Minister said that a Similar package has been extended to Integrated Sugar Complexes outside the border areas with the modification that the concession of electricity duty on export of power would be limited to 50% of the applicable duty. He said that other terms and conditions would remain the same.

Focusing on big investment in the Sugar Industry Sud said that to attract the large scale investments in this sector in the state, the Sugar Complexes with minimum Fixed Capital Investment of not less than Rs.400 crore comprising of Sugar Mill of minimum capacity of 5,000 TCD set up in the border districts of the state , would be also be given following concessions in addition to the incentives admissible to the mega projects i.e. stamp duty exemption on purchase of land and exemption from electricity duty upto 5% for 5 years.

He said that for such projects package included 100% exemption from electricity duty on export of power from the Power Generation Unit for a period of 10 years from the date of production besides exemption of LOI fee for D-2 fees and bottling plant fees. He said that for such projects permission would be granted for L-1 distribution for own brand of beer manufactured in the Sugar Complex in the State. This would also include separate PML quota for the distilleries / bottling plants to the extent of 200% (This will be restricted to 2 distilleries in the Complex), instead of normal quota of 100%.

Sud said that for such projects country liquor quota would be released on completion of bottling plant subject to the condition that work on the distillery has been completed to the extent of 75% minimum. He said that with these companies there would be agreement to buy- back power with PSPCL for minimum period of 5 years or they will sell power wherever they like by paying requisite charges as approved by PSERC and allocation of villages for such within the radius of 7.5 Kms. of such Complexes as per normal Policy of the Agriculture Department. These projects would be granted minimum 4 years for the implementation of the project from the date of signing the Agreement for mega project.

He said that similar package has been extended to such Sugar Complexes set up outside the border areas with the modification that the concession of electricity duty on export of power will be limited to 50% of the applicable duty.

At present Punjab is a net importer of Sugar as the consumption exceeds production within the State in spite of a good cane crop. By setting up such complexes Punjab will become a Sugar exporting state. Sud said that besides providing large scale employment, such complexes will promote agriculture and also affiliated industry such as transport etc, in the state, especially in the Border Districts.

source: punjabnewsline