The move is aimed at incentivising local manufacturing by encouraging public procurement, which would also enhance income and employment generation in the state.
It is in line with the state government's focus on promoting 'Make in Punjab' as a key component of its industrial development focus, a government spokesperson said.
The Cabinet also approved enactment of the Punjab Rights of Persons with Disabilities Rules 2019 in order to respect dignity and ensure effective participation of persons with disabilities in the mainstream of society.
The Cabinet also waived the setting up of private market yard for availing exemption from payment of two per cent over and above the minimum support price.
The decision is in line with the government's efforts to promote ease of doing business to boost the industrial development.
The move will incentivise the direct purchase of farmers' produce by food processing units, said the spokesperson after the Cabinet meeting, where amendment to Clause 10.11.3 of the Industrial and Business Development Policy of 2017 was also approved.
The anchor units were extended the incentive from the condition of the license issued by Punjab Agriculture Marketing Board for setting up the private market yard.
The Cabinet decided to extend the setting up of medium small enterprises facilitation councils in all the districts across the state.
Currently, they exist in only seven districts Ludhiana, Jalandhar, Amritsar, Mohali, Patiala, Bathinda and Sangrur.
( With inputs from IANS )