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POLITICAL ENVIRONMENT

It is a government idea of how best to promote the nationalinterest, considering its own resources and political philosophy.

The way government control's and restricts a company's activitiesby encouraging and offering support or by discouraging and

banning or restricting its activities depending on the government

Example :

India, the government has changed numerous times since 1945 buthowever much of the government policies remain hostile to foreign

investments . India's environment ministry has rejected a proposal by Vedanta

Resources to mine the aluminium ore in the eastern state of Orissa.

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Legal environment includes flexibility and adaptability of lawand other legal rules governing the business.

It may include the exact rulings and decision of the courts.

EXAMPLE : In 1992, the Supreme Court ordered the closure of a number

of tanneries in Kanpur as they were polluting river Ganga.

In August 1993 several foundries around the Taj Mahal were

ordered to be closed down because of air-pollution caused by

them had adverse impact on the whiteness of Taj Mahal.

LEGAL ENVIRONMENT

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Politics in Punjab is dominated by mainly two parties. Shiromani Akali Dal

Indian National Congress

The state follows a unicameral system of government i.e. it has only

one house the Punjab Legislative Assembly (Vidhan Sabha) consists of

117 members.

The head of the state is the Governor, appointed by the President of

India.

The Chief Minister is headed by a group of ministers with independent

power.

The Chief Minister is the head of government and is vested with most

of the executive powers.

Currently,Prakash Singh Badal is the CM of Punjab.

POLITICS IN PUNJAB

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POLITICAL ENVIRONMENT OF BUSINESS IN PUNJAB

Three-tier single-window clearance mechanismThe single-window clearance mechanism (SWM) has been established under the Punjab

Industrial Facilitation Act, 2005, with the following three-tier structure to grant

exemption/relaxation from any of the provisions/rules of the act:

Body Chaired by

State Board Chief Minister of Punjab

Empowered Committee Chief Secretary

District Single WindowClearance Committee

Deputy Commissioner

SWM structure in Punjab

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KEY NODAL AGENCIES FOR SINGLE WINDOW CLEARANCE

Level Nodal agency Composition

State-level Udyog

Sahayak

Officers from the Punjab State Electricity Board (PSEB), Punjab

Pollution Control Board (PPCB), Punjab Infotech, PSIDC, PFC,

PSIEC, Department ofLabour, PAIC and Directorate of

Industries.

The agency handles the composite application form received

from entrepreneurs and assists in obtaining clearances from

various departments within the stipulated time period. It also

provides guidance and information to investors about policies

and programmes; it is monitored by an empowered

committee.

District-level DistrictIndustry

Centre

The DIC is headed by the General Manager at the district level

and includes the environmental engineer of the PPCB, the

superintending engineer/executive engineer of PSEB, the

district officer of the Housing and Urban Development

Authority and the assistant director of factories from the

Directorate of Factories. The DIC provides sanctions and

clearances for setting up SSI units in the state.

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STATE POLICIES FAVOURING BUSINESS

Industrial Policy, 2009Aim: To establish synergy between the agriculture and industrial

sectors, rejuvenate small scale sector and attract more

investments in the large scale sector.

Agro Industrial Policy, 2009

Aim: To make Punjab the destination of choice for investors andprocessors, both global and domestic.

IT/Knowledge Industry Policy, 2009

Aim: To create an enabling environment for IT and knowledge-

based industry by focusing on creation of necessary infrastructure,

development of human capital, proactive engagement with

investors and effective policy implementation.

New and Renewable Sources of Energy (NRSE) Policy, 2006

Aim: To focus on energy conservation and other new technology-

based renewable sources of energy.

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Special Economic Zone (SEZ) Act, 2009

Aim: To promote SEZs in the state, providing unique incentives to

infrastructure developers.The Act provides for the establishment of SEZs to promote and set up

self-contained large industrial townships, with world-classinfrastructure to

accelerate and facilitate both public and private sector participation.

Land Allotment Policy, 2002

Aim: To accelerate the pace of growth of industry in the state and providequick availability of land to the entrepreneurs.

Notification Textile Policy, 2006

Aim: To facilitate and promote the growth of the textile industry, achieve

global standards in product quality, contribute more to exports and

encourage textile clusters

Tourism Policy, 2003

Aim: To promote tourism and develop hospitality infrastructure with private

sector participation. Tourism was declared an industry in Punjab in 1996.