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Area (geographical) : 5.04 Million ha
Net sown area : 4.2 Million ha (84% of state’s area)
Irrigated area : 4.07 Million ha (98%)
Canals : 1.12 Million ha (27%)
Tube-wells : 2.95 Million ha (71%) through 1.33 Million Tube-wells
Cropping intensity : 204%
Cropping Pattern : Rice-Wheat; Cotton-Wheat; and Maize-Wheat
During 2012-13, Punjab produced a 28.49 Million MTs of food grains
Agriculture sector in Punjab: An overview
Punjab produces
about 11% of
country’s and 2% of
world’s rice
• Highest productivity of wheat (4693 kg./ha), Rice (3828 kg./ha), Cotton (736 kg./ha), Maize (3414 kg/ha)
• Productivity of Animal Products: Milk (crossbred cows: 10.95 kg./animal/day, Buffalo: 8.59 kg./animal/day), Eggs (131 eggs per capita per annum), Inland fish (6560 kg./ha)
• With only 1.53 % of country’s area, Punjab produces:
18-20 % wheat (over 16 Million Tonnes)
11-12 % rice (over 11 Million Tonnes)
10% cotton (over 1.8 Million Bales)
45% mushrooms (over 70,000 Tonnes)
26% honey (over 14,000 Tonnes)
10% milk (over 9.4 Million Tonnes).
75% kinnow (a citrus fruit) (about 1 Million Tonnes)
One of largest flower seed growers (600 ha under seed preparation /cultivation)
Highlights of Productivity - Agriculture & Allied Sectors
• Number of Tractors per hectare: 10 (highest in the country)
• Availability of power per hectare: 2.5KW
• 85% of paddy and 75% of wheat harvested by combines (highest in the country)
• 750,000 hectares is under resource conservation technologies
• Highest number of laser land levelers in the country (5,500 units)
• Agricultural machinery is manufactured/ fabricated within the State by a large number of SMEs and 8-9
large sized units
Highly Mechanized Agriculture
• Wheat is processed by 75 units (avg. capacity 100 TPD) producing primary products like wheatflour, semolina, fine flour, etc. Bakery products (5 units) and vital wheat gluten (1 unit) are alsomanufactured.
• Rice: over 3,000 small sized paddy shelling units as well as more than 20 state-of-the-artintegrated paddy/basmati shelling and parboiling units. Basmati rice is exported to Middle Eastand EU nations.
• Sugarcane: 16 sugar mills with total crushing capacity of 47,000 TPD. Some mills also cleanseindustrial/ potable alcohol.
• Cotton: over 120 large/medium sized spinning units manufacturing cotton yarn/fabric andreadymade garments for domestic/export markets.
• Fruits & vegetables processing industry is evolving at a good pace. The supporting infrastructurelike cold chain, on-farm cold stores & grading/sorting centres are being established
Agro/Food Processing Industry Scenario
• Milk: over 40 units manufacturing pasteurized milk, skimmed milk powder, clarified butter, ice-creams,
cottage cheese, etc. Nestle, Glaxo SmithKline and Verka are some of the key players.
• Abattoirs: 4 modern abattoirs are involved in processing of male buffalo meat, goat, lamb and chicken
meat. Buffalo meat is mainly exported to Middle East countries.
• There are about 300 small scale wood processing units manufacturing block boards and furniture.
• There are number of oil seeds and oil refining units producing mainly rice bran edible oil. These units
also refine/blend edible oil imported from Indonesia, Thailand & Europe, etc.
Agro/Food Processing Industry Scenario
• Two state-of--the-art multi fruit & vegetable processing plants set up in public sector inHoshiarpur & Abohar to process 800 TPD of citrus and 400 TPD of pulpy fruits/ vegetables(tomatoes, pear, guava, pomegranate, mango, litchi, watermelon, onion, etc.)
• Only plant in India to debitter fruit juices such as Kinnow etc.
Agro/Food Processing Industry Scenario
• Plenty of food grains, fruits and vegetables present opportunities for
• Fertilizers, pesticides, tissue culture, micro irrigation techniques, high quality seed production, etc.;
• Secondary & tertiary levels of processing of food grains, their storage in silos.
• Cold chain infrastructure and Supply chain for processed/fresh F&V.
• Opportunities also exist for processing of animal products viz. goat/ pig/chicks/male buffalo meat, fish, milk, etc.
• To facilitate industry in ensuring back-end supplies of raw material, Contract Farming Act, 2013 has been enacted
and APMC Act is being amended.
Opportunities and Enabling Infrastructure
Power : Punjab had a total available capacity of 5,872 MW during 2012-13 and envisions to be a
power surplus state by FY15 (11484 MW)
Human Capital: Punjab has a skilled and literate manpower with 76.7% literacy rate, 102 engineering
colleges and 136 polytechnics.
World renowned Punjab Agricultural University, Ludhiana; National Agri-Food Biotechnology Institute,
Mohali & Borlaug Institute for South Asia, Ladhowal contribute in education and research in agriculture
and agri-food sector.
Industrial plots of sizes (250-10000 sq.yds) available for allotment at various Focal Points. For larger
chunks, entrepreneurs will be assisted to locate and acquire suitable lands.
Opportunities & Enabling Infrastructure
Development of Agro/Food Processing Sector is key thrust area.
Thrust on crop diversification for bringing more area under Maize, Cotton, Pulses,
Basmati, Sugarcane, Fodder, Fruits & Vegetables and Agro Forestry.
Agro Industrial & Food Processing Policy, 2013 envisages special package of incentives
for fixed capital investment from Rs 1 Crore to above Rs.100 Crores.
Agro/Food Processing Sector – Govt. Initiatives
Govt. plans to set up a Mega Food Park with an investment of over Rs.135 Cr. near
Ludhiana where common infrastructure will be created to facilitate investment in food
processing sector in the Park.
Incentive/ Maximum
Eligibility Period
VAT & CSTElectricity
Duty for all
ranges of
investment
Stamp Duty
for all ranges
of investment
Property Tax
for all ranges
of invest
ment
Mandi Fees for all ranges
of investment Rs.1 Cr. to
below Rs.25
Cr.
Rs. 25 Cr. to
below Rs.100
Cr.
Rs.100 Cr.
and above
Incentive
80% VAT+
75% CST
85% VAT+
80% CST
90% VAT+
85% CST 100%
100%
(exemption/
refund)
100%
Mandi fee, Rural
Development Fund and
ID cess exempted on
purchase of basmati,
wheat, maize and fruits &
vegetables for processing
in the State
Maximum
cumulative quantum
of incentive 80% of FCI 85% of FCI 90% of FCI 100% of FCI - - -
Max. Period
(years)
10 10 12
10/12
depending on
investment.
One time
10/12
depending on
investment. -
Summary
The maximum limit of sum of all incentives that can be availed
shall be upto
100% of FCI.
Agro/Food Processing Policy, 2013
VAT: Value added TaxCST: Central Sales TaxFCI: Fixed Capital Investment
Minimum transactions
Lowest transaction cost
Certainty of Outcomes
Freedom to adopt Business Practices
Ease Of Doing Business Optimally Requires
Transparent & Speedy Interface
Clear Outcomes
Each Investor serviced independently & Completely
We are the service interface of the Regulator- A First in India
We At INVEST PUNJAB Offer
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Punjab Bureau of Investment Promotion
• Single office
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I N V E S T O R
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Incentives Desk
CEOAddl.CEO
Final Project Approval
Member Officers from various departments are vested with the powers to grant approvals
Backend Processing
Punjab Bureau Of Investment Promotion
Agro Projects In Punjab Bureau Of Investment Promotion
Rice Sheller's
18 Projects
Capacity:
150 MT Per Hour
Investment:
Rs.600 Cr
33 %projects are of
Agro & Food Processing Sector
FEATURES
• Paperless processing
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banking
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finance, consultancy etc
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updates
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Contact us
Punjab Bureau of Investment Promotion
5th Floor, Udyog Bhawan
Sector 17, Himalaya Marg
Chandigarh [UT]
Email:
Telephone: 0172-5256494
www.investpunjab.gov.in
www.progressivepunjab.gov.in
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