Punjab Government Seeks Incentives for Border District Industrial Growth

The Punjab government has requested incentives from the 16th Financial Commission to boost industrial development in border districts. Key demands include compensation for trade embargo losses, a special economic export zone, freight subsidies, a PLI scheme, and tax benefits. Industrialists emphasized the need for robust infrastructure.

The Punjab government on Tuesday petitioned the 16th Financial Commission for incentives to catalyze industrial growth in border districts, an official release stated.

Punjab's Additional Chief Secretary for Industries and Commerce, Tejveer Singh, highlighted the need for ecosystem support to accelerate development across the industrial spectrum.

The government sought one-time compensation for economic losses due to the Attari-Wagah border trade embargo and annual compensation until its reopening. A dedicated special economic export zone was also proposed.

The request included freight subsidies to alleviate high logistics costs and a production-linked incentive scheme to enhance diversification, competitiveness, and employment in agriculture. Subsidized interest rates on loans were also sought to stimulate industrial growth and modernization.

Further, the government asked for special tax benefits similar to those given to hill states to back the border industry. Industrialists pressed for infrastructure improvements at ports and better medical facilities in the Majha and Doaba regions.

The mandate of the 16th Financial Commission, which visits Punjab following trips to Himachal Pradesh and Chhattisgarh, is to recommend the distribution of central taxes between the Centre and the states.