Punjab Seeks Incentives for Border District Development - 16th Finance Commission

Amritsar, Jul 23 (PTI) The Punjab government on Tuesday sought incentives for rapid industrial development in border districts.

A demand in this regard was made before the 16th Financial Commission, led by chairman Arvind Panagariya here, an official release said.

Punjab Additional Chief Secretary (Industries and Commerce) Tejveer Singh outlined the eco-system of Punjab, needing requisite support to ensure development at an accelerated pace across the industrial spectrum, the release said.

"A one-time compensation was sought for mitigating economic losses incurred due to the trade embargo through the Attari-Wagah border, along with annual compensation until its reopening," it said.

Besides, a dedicated special economic export zone to enhance exports of agri-products and basmati rice was also sought.

To salvage the industrial sector, freight subsidy was sought to offset high logistics costs for industries, particularly in border districts, said the statement.

Similarly, a production-linked incentive (PLI) scheme to promote diversification, competitiveness, and employment opportunities in the agricultural sector, subsidized interest rates on term loans and working capital to stimulate industrial growth, competitiveness, modernization, and expansion was also sought.

Special tax benefits, akin to those provided to hill states, to support the border industry were sought too, it said.

Industrialists from multiple sectors, on the occasion, conveyed to the Finance Commission the need for giving incentives for boosting the micro, small and medium enterprises in the state, apart from ensuring a robust infrastructure at the ports to avoid delay in shipping consignments to Punjab and good medical infrastructure in the form of hospitals in Majha and Doaba regions.

The 16th Finance Commission (FC is visiting Punjab, which is the third state after Himachal Pradesh and Chhattisgarh.

The mandate of the FC, which is formed every five years, is to make recommendations for the proportion of distribution of central taxes between the Centre and the states.