Chandigarh, Oct 26 (IANS): The Punjab government would come up with a new industrial policy under 'Make in Punjab' initiative to encourage local industry by providing incentives for its growth, Deputy Chief Minister Sukhbir Singh Badal said on Monday.

Addressing industrialists here, Badal said the state government was committed to attracting new industries and reviving the existing ones.

"My sole aim is to provide congenial atmosphere, liberal policies and online facilities to entrepreneurs for the overall progress of Punjab as well as generating job opportunities for the youth," he said.

The deputy chief minister said that under the new policy, Special Purpose Vehicles (SPVs) would be set up in each industrial area by January 1 next year.

The SPVs would collect taxes from industrial units and spend it on the development of the industrial areas.

"This unique mechanism will help in eliminating problems regarding basic amenities and other facilities in industrial focal points," he said.

Badal said that under existing labour rules, payments to industrial labour through cheques would be deferred by December 31 and alternative arrangements made in consultations with the labour department.

Providing relief to the industrialists, he announced that the excise department would scrutinise assessment cases of taxpayers pertaining to the last three years instead of five years and if any taxpayer was found at fault only then the scrutiny of taxes for five years would be done.

Announcing provision of value added tax retention and power incentives even for the expansion of existing units under the new industrial policy, Badal said the state government is formulating a new power policy in which existing units would also get cheaper power below Rs.5 per unit keeping in view their present consumption.

He announced exclusion of steel industry from the negative list, adding that exhibition halls would be set up soon in Ludhiana, Jalandhar and Amritsar.