Punjab Logistics Subsidy 2023 – Full Benefits & Policy Highlights

Written by CA Anand Daga
on July 21, 2025
10:59 am

Punjab Logistics Subsidy 2023: Key Highlights

The Punjab Logistics Subsidy 2023 is a game-changer for the state’s industrial and logistics ecosystem. Aligned with the government’s broader agenda of boosting economic growth, reducing supply chain inefficiencies, and making Punjab a logistics hub, this policy lays the foundation for a cost-effective, technology-enabled, and investment-friendly environment.

The Punjab New Logistics and Logistics Park Policy focuses on fiscal incentives, infrastructure development, multi-modal logistics integration, and employment generation. Let’s explore how businesses can benefit from this opportunity-rich environment under the Punjab Logistics Subsidy Scheme 2023.

Objective of Punjab Logistics and Logistics Park Policy

The objective of this integrated logistics policy is to develop a robust and efficient logistics ecosystem in the state. By focusing on reducing overall logistics costs and promoting ease of doing business, the policy seeks to make Punjab a logistics hub catering to both domestic and international trade.

Through Multi-Modal Logistics Parks (MMLPs), cold chains, warehouses, and silos, the government aims to provide end-to-end logistics support to critical sectors such as agriculture, pharmaceuticals, and manufacturing.

Fiscal Incentives Under Punjab Logistics Subsidy 2023

To make Punjab an attractive investment destination, the policy introduces substantial financial incentives aimed at reducing project costs and operational barriers.

1. SGST Reimbursement

100% SGST reimbursement on intra-state sales for 10 years
For anchor units (high-investment projects): 15 years
Cap of 125% (or 200% for anchor units) of Fixed Capital Investment (FCI)

This reimbursement directly enhances cost-efficiency and reduces the financial burden on logistics developers.

2. Electricity Duty Exemption

100% exemption from electricity duty for 10 years
15 years for anchor units

This exemption significantly lowers operational costs, especially for high-energy-consuming infrastructure like automated warehouses and cold storage.

3. Stamp Duty Reimbursement

100% reimbursement on stamp duty for purchase/lease of logistics land/buildings

As one of the major upfront costs in infrastructure projects, this benefit allows faster and more affordable setup.

4. Exemption from CLU and EDC

Full exemption from Change of Land Use (CLU) and External Development Charges (EDC)

Applicable to logistics zones within logistics parks and standalone logistics projects such as warehouses and truck terminals.

5. Property Tax Exemption

Complete exemption from municipal property tax for 10 years

This tax relief makes long-term logistics projects significantly more viable and financially sustainable.

6. Employment Generation Subsidy

To promote inclusive employment in Punjab:

₹36,000/year for hiring general category employees
₹48,000/year for hiring women, SC, BC, and OBC employees

Applicable for 5 years, this wage subsidy encourages local workforce development and lowers HR costs for logistics firms.

7. Trucker Parks and Wayside Amenities

Projects that develop trucker facilities near industrial belts and highways receive:

100% exemption from CLU and EDC charges
Reimbursement of stamp duty

This encourages the setup of rest areas, fueling points, repair hubs, and food courts, directly improving driver and logistics staff welfare.

8. Special Benefits for Border Districts

The policy prioritizes equitable development through incentives in border districts like Gurdaspur, Pathankot, and Fazilka.

100% exemption from CLU and EDC for eligible warehouses
Land must be at least 1 hectare with 80 ft. road access

This ensures that even remotely located zones receive investments and infrastructure upgrades.

9. Cold Chain and Refrigerated Transport Support

To develop Punjab’s cold chain network:

50% waiver on motor vehicle tax for first 1,000 non-electric refrigerated vehicles registered in Punjab

This directly reduces acquisition costs for cold transport fleets handling milk, pharmaceuticals, dairy, and frozen foods.

10. Additional Support and Fast-track Approvals

Under the Punjab Logistics Subsidy Scheme 2023:

Fast-track, single-window clearances
Priority land allocation in industrial zones
Alignment with Punjab’s broader Industrial Policy, opening doors to more subsidies (interest, capital, electricity)

Special Incentives for Anchor Units

The anchor unit classification includes projects with:

Fixed Capital Investment of ₹100 crore or more
250+ direct employees

These projects receive:

15-year SGST and electricity duty benefits
Higher wage subsidy
Full CLU and EDC waiver
Preferential treatment from government agencies

This is designed to attract large-scale logistics and warehousing players to the state.

Focus Areas of Punjab Logistics and Logistics Park Policy

The Punjab Logistics Park Policy PDF identifies five key development areas:

1. Multi-Modal Logistics Parks (MMLPs)

Facilities connecting road, rail, and air for seamless cargo flow, reduced handling time, and integrated cold storage, warehousing, and cargo handling solutions.

2. Integrated Logistics Parks

Shared-use parks offering cost-effective access to core logistics facilities like warehouses, truck terminals, and packaging units.

3. Cold Chain Infrastructure

Punjab, being a leading agri-state, emphasizes developing cold storages and temperature-controlled logistics, supporting perishable agri- and pharma supply chains.

4. Agri-Logistics Development

Development of grain silos, sorting and packaging centers, and agri-warehouses to minimize post-harvest losses and increase farmer income.

5. Warehousing Expansion

Encouragement for bonded, automated, and specialized warehouses in e-commerce, food processing, and pharmaceuticals.

Conclusion

The Punjab Logistics Subsidy 2023 offers a rare combination of fiscal incentives, infrastructural upgrades, and administrative ease for logistics investors. Backed by Punjab’s new Logistics and Logistics Park Policy, this scheme positions the state as a frontrunner in building a modern, inclusive, and investment-ready logistics ecosystem.

Investors, developers, and businesses looking to expand or start in logistics should review the Punjab Logistics Park Policy PDF and explore partnerships with Punjab logistics subsidy consultants to fast-track their project approvals and incentive claims.