The North News
Chandigarh, July 9
The Punjab government has announced sweeping reforms in its industrial land use and conversion policies, fulfilling two of the twelve promises made during the “Udyog Kranti” initiative less than a month ago.
Ministers Sanjeev Arora (Industries and Commerce) and Hardeep Singh Mundian (Housing and Urban Development) unveiled two key notifications aimed at creating a more business-friendly environment and accelerating investment in the state.
One of the most significant reforms allows the conversion of leasehold industrial plots and sheds into freehold, a long-standing demand from industrialists. The new mechanism, under the Punjab Small Industries and Export Corporation (PSIEC), sets conversion fees at 20% of the Current Reserve Price (CRP) or Collector Rate, whichever is higher—with substantial remissions offered for original allottees.
The government clarified that all outstanding dues must be cleared, and the land must be free of legal encumbrances to qualify. Notably, transfer fees and separate charges for unearned increases have been waived, further simplifying the process.
In parallel, amendments to Punjab’s Conversion Policy allow industrial plots to be used for hospitals, hotels, industrial parks, and other facilities, addressing concerns raised by industry stakeholders. The amended policy introduces flexible land-use permissions tied to road width, plot size, and conversion charges, ranging from 10% to 50% depending on usage.
“These reforms reflect the government’s commitment to ease of doing business and our intent to make Punjab a preferred investment destination,” said Minister Mundian.
Officials said the changes will not only streamline transactions but also reduce litigation, boost industrial expansion, and generate employment opportunities, particularly in underdeveloped areas.
The government has pledged to implement the remaining “Udyog Kranti” reforms in a phased and time-bound manner.
