Reacting to the draft ‘Punjab Industrial and Business Development Policy-2022’, the industry in Punjab has shown anguish over the proposed hike in power tariff and groundwater extraction charges.
The Punjab industries department put the draft policy in the public domain for feedback from stakeholders and it termed the power tariff hike and water extraction charges as “excessive” in the present competitive business environment.
The State Government proposed to provide power to industry at a variable tariff of Rs. 5.50 per unit – up from Rs. 5 earlier, for five years with an annual increase of 3 per cent.
CII has suggested to the Government to keep the power tariff at Rs. 5.25 per unit with a maximum of 1.5 per cent annual increase thereafter with the formula proposed in policy, as the increase of 10 per cent in tariff will be “very steep.”
Punjab state chapter of PHD Chamber of Commerce and Industry (PHDCCI), Punjab Factory Association and Textile Manufacturers have also submitted their suggestions opposing the proposed hike.
The industry has also termed the proposed groundwater charges as high, stating that these will render it “uncompetitive.” It said that a 50 per cent rebate on these charges should be given for new investments to all MSMEs, thrust sectors and large and anchor units.
Regarding the employment generation subsidy under which only directly recruited employees of Punjab domicile will be considered, industry has said that it is impossible in a state like Punjab to get all workers of state domicile.
Industry bodies have suggested restricting domicile condition to 25 per cent of the total employees, besides seeking a defined subsidy reimbursement mechanism and payment after filing quarterly returns.
Bharat Tex Special Report 2026 
