why SVR is important for warehousing projects in Punjab.

How the SVR Helps You Build a Profitable Warehouse in Punjab

Welcome to this complete guide on using Punjab’s fiscal incentives to grow your commercial warehousing business. The Subsidy Viability Report (SVR) is a powerful tool for entrepreneurs and investors looking to set up or expand warehouses in the state. Think of it as a roadmap that helps you navigate subsidies, make smarter investment decisions, reduce costs, and maximize returns.

By leveraging the SVR, investors can align their projects with Punjab’s Integrated Logistics & Logistics Park Policy, 2023, ensuring both operational efficiency and financial gains.

Why Invest in Commercial Warehousing in Punjab?

India’s commercial warehousing sector is growing rapidly. Punjab stands out due to proactive policies, strategic location, and strong logistics performance. Here’s why it’s a hotspot for investment:

Key Drivers of Demand:

Impact of GST: Goods and Services Tax has streamlined logistics, encouraging centralized storage and boosting demand for modern warehouses.
Infrastructure Development: New highways and expressways make transportation faster and cheaper, expanding the need for warehouses even in tier-2 and tier-3 cities.
E-commerce Growth: Online shopping demands large fulfillment centers. Consumers now expect same-day or next-day delivery, creating a need for strategically located warehouses.
State Policy Support: Punjab’s 2023 Logistics Policy offers financial assistance and incentives, positioning warehousing as a key industry.
Logistics Leadership: Punjab earned an Achiever Status in the LEADS 2023 report, proving its efficiency among landlocked states.

SVR: Your Guide to Fiscal Incentives

The Subsidy Viability Report (SVR) gives a clear picture of the financial benefits under Punjab’s policy. Warehousing is a “Thrust Sector,” meaning businesses can access significant incentives that reduce both capital and operational costs.

Key Fiscal Incentives:

Sr. No.	Fiscal Incentive	Benefit	Details
1	Investment Subsidy (SGST Reimbursement)	100% SGST reimbursement for 10 years, up to 125% of Fixed Capital Investment (FCI)	Paid on intra-state sales
2	Electricity Duty Exemption	100% exemption for 10 years	-
3	Stamp Duty Exemption/Reimbursement	100% exemption or reimbursement on land/building purchase/lease	-
4	CLU/EDC Exemption	100% exemption	Change in Land Use & External Development Charges
5	Property Tax Exemption	100% exemption for 10 years	From the date of commercial production

Understanding Key Terms:

FCI (Fixed Capital Investment): Includes land, building, plant, machinery, and equipment. Land cost considered up to 10% of FCI for subsidy.
Net SGST: SGST paid against output liability on eligible products, reimbursable under the subsidy.

Special Incentives:

Existing Units Expansion: Projects adding ≥50% additional FCI qualify for extra benefits.
Border District Projects: Warehouses in districts like Ferozepur, Gurdaspur, Amritsar, and Tarn Taran get 100% CLU & EDC exemption.

Beneficiaries and Strategic Planning

The SVR benefits a wide range of stakeholders:

Traders & Commercial Agents: Reduce rental expenses or earn rental income by subletting space.
Manufacturers & Food Processing Units: Build private storage for raw materials and finished goods.
Logistics Providers (3PL & SCM): Expand operations to Punjab and enjoy grants.
Investors & Builders: Develop warehouses for fixed rental income.

Tips to Maximize Profitability Using SVR:

Pre-Project Assessment: Conduct SVR analysis before starting. It ensures alignment with investment patterns and subsidy rules.
Focus on FCI Calculation: Keep precise records of all capital expenditures for maximum subsidy.
Registration & Documentation: Register on the Invest Punjab Business Portal, submit the CAF, and relevant incentive forms (ICAF).
Timely Applications:
- SGST Investment Subsidy: Apply within 12 months of financial year closing.
- Electricity Duty Exemption: Apply within 3 months of commercial production start.

The SVR acts as a strategic guide, helping investors identify profitable opportunities, optimize fiscal benefits, and contribute to Punjab’s vision of becoming a logistics powerhouse.

How KIP Can Help You

Navigating Punjab’s warehousing subsidies and fiscal incentives can feel complex, but KIP is here to simplify the process. We help investors, developers, and logistics professionals make informed decisions and maximize profitability.

Here’s how KIP adds value:

Expert SVR Analysis: We break down the Subsidy Viability Report, highlighting the most profitable opportunities for your warehouse project.
Project Planning & Advisory: From land selection to capital investment planning, our team ensures your project aligns with Punjab’s policies and subsidy schemes.
Application Assistance: We guide you through all registrations, forms (CAF, ICAF), and timelines for SGST reimbursement, electricity duty exemption, and other fiscal incentives.
Financial Structuring & ROI Optimization: KIP helps structure your finances efficiently, reducing costs and improving returns on investment.
Compliance & Documentation Support: We ensure all legal and policy requirements are met, so your project benefits fully from government incentives