









 • 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
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
 Fertile and productive
Growing demand 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.
Advantage
Punjab
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.
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.
PPP: Public-Private Partnership, GSDP - Gross Domestic State Product
 • 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.
• Establish PHCs and specialty
hospitals covering wider
areas. Transport
• Establish medical and nursing
institutions to produce
qualified healthcare Health
professionals.
Vision
2022
• Computerise government Investment
departments and adopt e- promotion
governance to enhance the
ease of doing business.
Agriculture
• Attract investments from agro-
based and service sector
industries.
• Diversify into other crops after
considering their global market
demand.
• Adopt technology in all areas of
agriculture and encourage
organic farming.
• 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.
• Encourage SMEs through
adequate financing and policy
Education initiatives to increase
employment.
• Set up an SEZ in each region
Industries and develop backward and
border areas.
• Check the diversion of
Environment
agriculture/forest land for
urbanisation and
industrialisation.
Infrastructure • Ensure that industries adopt
eco-friendly technologies and
rainwater harvesting.
• 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. 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 Chandigarh
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, Ludhiana, Jalandhar, Bhatinda, Mohali, Pathankot Source: Government of Punjab website, www.punjabgovt.nic.in,
and Patiala 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-
28.2
14.
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.
48.5 46.4 46.6
CAGR 44.3
Between 2004-05 and 2013-14, NSDP increased at a 37.2
14.1%*
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
Punjab‟s per capita GSDP expanded at a CAGR of 12.1* 1,708 1,849 1,762 1,733
12.1%*
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$)

The state‟s per capita NSDP rose at a CAGR of 12.1* per CAGR
1,556
12.1%* 1,525 1,640 1,537
cent between 2004-05 and 2013–14.
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% 27.4%
manufacturing, construction and electricity as well as 11.9%
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
anticipated to total US$ 4.3 billion*. Principal items
(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 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 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
7,019 7,056
The Punjab Energy Development Agency (PEDA) is the
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 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

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.
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
 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 Bathinda 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
Hoshiarpur 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

National Agri-Food Biotechnology Institute (NABI), Primary: 1.44

Dropout rate
Mohali. Upper primary: 1.45

Indian School of Business (ISB), Mohali.

Postgraduate Institute of Medical Education and
Research (PGIMER), Chandigarh.
Indian Institute of Technology, Ropar.
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

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
Electronics Township
(ELTOP), Mohali
Industry clusters
Food Park Project, Sirhind,
Fatehgarh Sahib District
Apparel Park, Doraha,
Ludhiana
Biotech Park, Dera Bassi,
Chandigarh
IT and electronics;
SEZ, Mohali
Primary industry Description
Set up by Punjab Information and Communication Technology Corporation
Electronics Limited (Punjab Infotech) for the promotion and growth of the electronics
industry in the state.
Clusters identified for bicycles and bicycle parts (Ludhiana), steel re-rolling
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
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
Textiles Industry and Export Corporation Limited and the Association of Textile
Industry.
Has all the basic facilities including water, electricity, R&D lab and sewage
Biotech
treatment facility, etc.
SEZ status granted to QuarkCity in Mohali to promote IT and electronics
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
• Jagjit Industries Ltd
cent. Around 98 per cent of the cultivable area is under
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
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.
Some of the key players
• Infosys Ltd
• JCT Electronics Ltd
• Punjab Communications Ltd
• APLAB Ltd
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
such as telecommunication, IT, retail banking, retail fuel-dispensing as well as power control
APLAB Ltd
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
Batala 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
• SML ISUZU Ltd
comprises SSI units.
• 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 Limited, formerly known as Swaraj Mazda, based in Nawanshahar, Punjab, is a
SML ISUZU Ltd
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,
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.
Some of the key players
• Hindustan Petroleum Corporation Ltd
• National Fertilisers Ltd
• Punjab Chemicals and Crop Protection Ltd
• Punjab Alkalies & Chemicals Ltd
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 District Single Window Clearance

Empowered Committee: This committee is chaired 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
Punjab Small Industry and Export
Corporation Limited
(PSIEC)
Punjab Finance Corporation
(PFC)
Punjab Agro Industries Corporation
(PAIC)
Punjab State Industrial Development
Corporation Limited
(PSIDC)
Description
• Focuses on the development of SSI units and promotion of exports.
• Responsible for setting up industrial focal points.
• 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).
• 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.
• 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.
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: psiec_chd@yahoo.co.in

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: psidc@rediffmail.com, psidcltd@yahoo.co.in
 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

• Enhance the contribution of secondary and tertiary sectors in the state‟s growth.
Objectives
• Ensure overall development of the state by providing incentives to less developed zones.

Read more

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
Objective
the total installed power capacity in the state by 2022.

Read more

Industrial Policy, 2009

• To establish synergy between the agriculture and industrial sectors, rejuvenate the small scale
Objective
industries and attract more investments in the large scale industries.

Read more
Agro-Industrial Policy, 2009

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

Read more

IT/Knowledge Industrial Policy, 2009

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

Objective
creating the necessary infrastructure, developing human capital, proactively engaging with
investors and ensuring effective policy implementation.
Read more

Special Economic Zone (SEZ) Act, 2009

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

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

Read more
Land Allotment Policy, 2009

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

Read more

Notification Textile Policy, 2006

• To facilitate and promote the growth of the textile industry, achieve global standards in product
Objective
quality, contribute more to exports and encourage textile clusters.

Read more

Tourism Policy, 2003

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

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The
same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any
medium by electronic means and whether or not transiently or incidentally to some other use of this presentation),
modified or in any manner communicated to any third party except with the written approval of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this
presentation to ensure that the information is accurate to the best of Aranca and IBEF‟s knowledge and belief, the
content is not to be construed in any manner whatsoever as a substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in
this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of
any reliance placed on this presentation.

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on
the part of the user due to any reliance placed or guidance taken from any portion of this presentation.