The CM further asserted that the definition of fixed capital investment has been expanded, which will increase the base on which incentives are calculated. (Express File Photo)The new industrial policy for 2026 will accelerate industrial growth, attract large-scale investment and generate employment across Punjab, Chief Minister Bhagwant Mann Saturday said, while claiming that his government has changed the ‘fixed menu’ policy that other states have for investors.“Every other state in India hands investors a fixed menu and says take it or leave it, but Punjab has changed that. Now an investor can pick up to 20 incentives and build a package around their own business model,” Mann said.The CM said different industries have different operational realities and cost structures. “Pharmaceutical companies need different support than an EV manufacturer, a data centre has different costs than a textile plant. The new policy acknowledges that and builds around it.” He said the framework allows investors to optimise incentives according to their sector, cost structure, and scale of operations. “The incentive package can be optimised for their specific cost structure, their specific sector and their specific scale. That is money on the table that wasn’t there before,” he said.He was addressing a gathering after unveiling the Industrial & Business Development Policy 2026.Highlighting that Punjab is already witnessing record investment, Mann said that for the first time in Punjab’s history, the government has introduced a capital subsidy.“If someone is planning a Rs 100-crore plant, without capital subsidy… is their risk. With capital subsidy, the government co-invests a portion upfront and their capital at risk drops.” He added that this significantly improves investment economics.“This means the same revenue with lower investment. Punjab is the first state in the country to offer that.” Mann further observed that most industrial policies in other states are largely designed to attract new investors while existing businesses often receive little attention.Story continues below this ad“Most industrial policies in other states are drafted for outsiders with new investors, greenfield projects and companies being wooed from other states. Businesses already operating, already paying taxes and already employing people are usually an afterthought.” He said the new policy corrects this imbalance by extending incentives to modernisation and expansion projects as well.The CM also highlighted that the policy provides long-term stability to investors through an extended incentive period. “Incentive support has been extended up to 15 years whereas most state policies run 5-10 years. This is a big boon for heavy industry, semiconductors, pharmaceuticals, data centres and others as these are not businesses that return profit in a year or two but are decade-long commitments.” Explaining the financial significance of this provision, he said, “Fifteen years change the net present value, along with the total present value of all future incentives dramatically. For capital-intensive sectors this could be the single most important number in the entire policy.”The CM further asserted that the definition of fixed capital investment has been expanded, which will increase the base on which incentives are calculated.Mann said the policy promotes inclusive employment practices. “Punjab has made inclusion a financial decision, not just a social one by ensuring higher Employment Generation Subsidy for businesses employing women, SC/ST and persons with disabilities workers and for IT/ITeS units.” © The Indian Express Pvt LtdTags:Punjab CM