Department of Industries

Department of Industries

Punjab is an economy where the basis for competitiveness is the intellectual capital and capability to absorb, process and apply knowledge. We have a strong technological base both in public and private sector and a vibrant entrepreneurial culture that thrives on creativity, nimbleness and good business sense. Industries remain an integral component of the State economy, with capabilities in the entire manufacturing value chain, from R&D and design to marketing and sales. Punjab is building successful partnerships with foreign firms, strengthening domestic capabilities and forging strategic linkages. The industrial work force should be cost-competitive, motivated, and highly productive with world-class capabilities in industrial and business management, technology, R & D, production and services, and international market development. The Department of Industries & Commerce ensures that the State stays on the path of its industrial progress.

Punjab Strengths

In Comparison to Other States of India, Punjab has Distinct Advantages for Investment:

  • Dynamic and productive people with over-whelming zest for hard labour. Highly educated and professional work force with abundance of skilled workers.
  • Visionary, responsive and dedicated administrative set-up committed to free enterprise and the state's development
  • High purchasing power. Punjab has the highest per capita income in India.
  • Availability of abundant, stable and cheap power and water supply.
  • Conducive and harmonious industrial relations.
  • Strong infrastructure including transportation and telecommunication with international linking.
  • Strong agricultural and well developed small/medium scale industrial base.
  • Fully developed export base.
  • Well developed financial services- banks, financial institutions and stock exchange.
  • Peaceful and congenial environment.

Punjab Tops in These Fields:

  • 1.5% of Geographical area 22% Wheat, 12 % Rice and 12 % Cotton (show in a Pie Chart)
  • Punjab consumes 10 % of fertilizer consumption of India, one third of all the tractors of India plough fields in Punjab.
  • Contributes 37.9 % of central pool of rice and 56.6 % of central pool of wheat
  • Record yield of 42.07 quintals per hectare of wheat
  • Per Capita eggs availability highest in India, 30 for India and 126 for Punjab.
  • 896 gm per capita milk availability is highest in India
  • Per hectare fish production is highest, 41qtls vis a vis 21 quintals per hectare for India
  • Highest number of vehicles per thousand population: - Motor vehicles –77, Tractors – 55
  • Highest cropping intensity in the country
  • Highest net area irrigated
  • Highest yield rate per hectare
  • Highest contribution of wheat and rice to the national pool
  • Highest consumption of fertilizers
  • Highest number of tube wells
  • Highest number of small scale industries per capita

Best Infrastructure in India:

  • Infrastructure rating by Centre for Monitoring Indian Economy of Punjab is 191.4 against the national average of 100
  • Highest per capita consumption of power in India -- 806 kWh, About 2 times the national average. Even then the State Government is not complacent and keeping the expected increase in demand in view has taken major decision to expedite the new power projects. 500 MW Power Plant has been awarded to a private company which will operate it on BOO basis. Two units of Guru Hargobind Thermal Plant of 210 MW each have been commissioned and it has been banned to further expand this thermal plant with two more units and 452.4 MW will be available from Ranjit Sagar Dam & 168 MW has been planned from it in Shahpurkandi.. Besides that State Government is encouraging captive power generation by industry.
  • Excellent network of 1000 Km of National highways, out of which around 200 km of best 6 lane road with grade separation, and 95 km road length per sq km of area is highest in India.
  • A big network of State highways and rural link roads making all villages approachable by all weather road
  • Well connected to all parts of India by fast speed trains
  • Connected to New Delhi by 4 pairs of high speed Shatabdi trains(3 hours from Chandigarh. 4 hours from Ludhiana)
  • Dense telecommunications network: even small villages have ISD connections
  • Airports at Chandigarh, Amritsar and Ludhiana
  • Cities of Punjab provide best of big and small cities. All facilities of metro available without congestion and pollution, small and well planned residential colonies of Amritsar , Jalandhar, Ludhiana, Mohali and, Patiala can match best in India.
  • Inland Container Depots or, Container Freight Station near all major industrial clusters
  • Excellent educational and health facility available all over state.
  • Highest number of banks per capita – 15 banks for every 10,000 people
  • Excellent Financial Infrastructure available in Public and Private Sector.

Land of Opportunities

Punjab- Land of Boundless Opportunities:

Enterprise and endeavor, these two words symbolize the essential spirit of the People of Punjab. Combined with these qualities its average growth rate of 10%, 58% Literacy rate and highest per capita income in country makes it a land of boundless opportunity. Today Punjab offers distinct advantage for investment and industry. The recent liberalization of the Indian economy, has pitch forked Punjab in to the global business mainstream. Heralding this change are more and more entrepreneurs, industrialists and investors with vision, from across the globe. Punjab is determined to achieve an annual industrial rate of growth of 12 per cent during the '90s. Going by the availability of raw materials and the thrust areas identified by the government, investment opportunities are in the following areas:

  • Processing of major and minor crops
  • Industries based on agricultural waste/ residue (wheat/ paddy straw, paddy husk)
  • Processing of fruits and vegetables
  • Dairy or Poultry based units
  • Leather and Sports Goods.
  • Meat processing
  • Textiles
  • Electronics & Telecommunications
  • Information Technology
  • Infrastructure Modernization
  • on and Development
  • Automobiles and Farm machinery
  • Engineering industries related to agriculture & food processing, including ancillary units
  • Chemical industries, including Drugs and Pharmaceuticals
  • Export oriented units

Opportunities in Agri-Business:

Food is vital to India’s prosperity. Successful harvesting of green revolution by Punjab was a step in recognition of that. The same spirit is now ready to dominate the food industry of India. Punjab is a land of boundless opportunity for agro based industry.4.2 million hectare sown area with 186% cropping intensity and 100% assured irrigation makes Punjab granary of India. 24.86 million tons of food grain production and 9.85 million live stock and 15.3 million poultry population Punjab is most suitable for agri business. Apart food grain large quantity of fruits and vegetables is available for processing.

Fruits and Vegetables production in Punjab:

Kinnow/Orange 2,22,456 Mts Potato 1,167,000 Mts
Mango 58,380 Mts Root Crops 2,63,000 Mts
Grape 36,666 Mts Tomato 1,75,000 Mts
Pear 43,780 Mts Cabbage 32,700 Mts
Peach 17,745 Mts Cauliflower 85,000 Mts
Lichi 11,580 Mts Brinjal 35,000 Mts

National Productivity Council of India after a survey found that in Punjab availability of crop residue is of the order of 31.5 million tons. The major crop residue are rice straw, wheat straw and cotton stalk. In addition to that industrial residue/by product such as rice husk and bagasse is also available. Approximately 2 million tons of these two products are generated every year.

Keeping these things in mind Punjab offers tremendous investment potential in agro based projects in following area:

  • processing of major and minor crops
  • processing of fruits and vegetables
  • processing of crop and agro industrial residue
  • Poultry and animal husbandry
  • Dairy and milk processing

Projects on offer:

Sr. No. Name of the Project Capacity Estimated Cost
(Rs. in Crores)
1. Integrated Corn Processing Plant To process initially 300 TGPD and later 500 TPD of corn. 9500
2. Integrated Paper Manufacturing Plant To produce high quality coated and uncoated papers, block-board, plywood, etc. at a capacity of 2,40,0000 MT per annum of finished products. 145000
3. Integrated Oilseeds Processing Plant To produce top quality edible oil, animal feed, chemicals, and high value food items with a capacity to mfr. 500 TPD. 5000
4. Integrated Milk Processing To manufacture pasteurized milk, cheese, paneer, khoya, butter, SMP and ghee. Capacity of the project is to process 325000 litres of milk per day. 3500
5. Integrated Cane Processing Project Comprising 2500 TCD cane crushing unit, 350 lac litres per annum of cane juice based ethanol unit. 10000
6. Integrated Rice Processing Project Comprising of 80 TPH rice mill, 9 TPH rice noodles plant, 0.5 TPH rice crispies plant, 0.5 TPH puffed rice plant, 2.0 TPH flaked rice plant, 1.5 TPH rice flour mill, 1.0 TPH instant rice plant, 0.5 TPH solvent extraction plant, 5.5 TPH oil refining plant, 15 TPH cattle feed plant and 8.8 MW power generation plant 18000
7. Spice Oil and Oleoresin extraction Unit 3 TPD initially and going 214 TPD capacity in a year, 10 of its operation. 3500
8. Integrated Grain Based Distillery Project To produce 20000 liters per day ENA plant, IMFL bottling unit of 5000-6000 bottles per hour capacity and maturation/ageing unit for own whisky 4500
9. Integrated Vegetable Processing Plant To produce canned/ bottled frozen, dehydrated and pickled vegetables mainly for export 3100
10. Wheat Processing Project To produce high pasta foods based on durum wheat. 9000
11. Integrated Potato Based Alcohol Project To produce over 50000 litres per day of vodka. The project would process about 70000 tonnes pf potatoes per annum. 2300
12. Integrated Potato Processing facility To manufacture 2 MTs per hour of French fries and 500 kgs per hour of potato flakes. The facility will process approximately 20000 tonnes per annum of potatoes. 2000
13. Integrated Poultry Processing Project To produce whole chicken, cut portion and value added products like nuggets, formed boneless product. Captive feed mill of 10 Ms per hour capacity. The annual requirement of maize for the feed mill works out to 15000 tonnes 3000
14. Setting Up of a Malting Unit 20000 MTs per annum capacity and a brewery of 2 lac hecto litres per annum to manufacture premium quality malt, malt extracts and beer. 3500
Total 221900

Electronics & IT Industry:

With 21st century just round the corner Importance of electronics and computer industry can’t be overemphasized. Punjab Government realized it quite early and targeted this sector through their policy planning. A string of training and testing institutions in this field was established in collaboration with Government of India. Government of Punjab has decided to give special package of incentive to this sector of Industry. For assisting industry in this sector Punjab Government established Punjab Infotech . In 1976 Punjab Infotech (Earlier ECP) began groundwork for future development by setting up an Electronics Township of Punjab (ELTOP) in phase VIII of Mohali near Chandigarh. Spread over 200 acres ELTOP has become one of the largest conglomerates of electronics and communication industries in India.

An Earth Station has been set up at Mohali providing International data transfer facility to the Software units in this area.

As part of expansion program for software exports Government of India has approved setting up a Information Technology Park at Mohali. ITP will have:

  • Satellite Earth Station to provide high bandwidth international connectivity
  • Software Technology Park
  • Electronics Hardware Technology Park
  • Indian Institute of Information Technology (IIIT)
  • Developed plots and sites for IT/Electronics units

Organization Structure

Organization Structure

Industrial Promotion Policy, 2013 - Fiscal Incentives PPT file that opens in new window. To know how to open PPT file refer Help section located at bottom of the site.

For more information, you can visit website : External website that opens in a new window

Go to Navigation