CHANDIGARH: The Punjab government has approved significant industrial reforms, including amendments to facilitate the conversion of leasehold industrial plots and sheds into freehold status, as announced by Cabinet Minister Sanjeev Arora on Tuesday.
Arora, responsible for industries, commerce, investment promotion, power, and local government portfolios, noted that the cabinet has also sanctioned the rationalization of post-allotment services for freehold plot holders.
The reforms, developed through collaboration with industry stakeholders, are intended to enhance the ease of doing business and foster a transparent and investor-friendly industrial environment.
The conversion fee has been set at 5%, with a full exemption from stamp duty for conversions finalized by April 30, 2026.
Relief measures include cases where the unearned increase clause does not apply, and some recurring charges have been replaced by a one-time fee.
Additionally, annual renewal charges for multiple services have been eliminated.
Pending transfer and conversion cases will be addressed promptly, with a one-time stamp duty waiver introduced to encourage early conversions.
Documentation processes have been streamlined, now allowing bank letters for mortgaged lease deeds.
Clarification has been given regarding the unearned increase clause. No charge will be imposed where the clause is absent from the title documents in cases of family transfers, inheritance, or if plots were converted to freehold prior to the notification.
In a pivotal move, services under the Punjab State Industrial Export Corporation (PSIEC) have been categorized into mandatory and optional, with 18 services now classified as optional.
Notarized affidavits have been substituted with self-declarations, and additional powers have been granted to estate officers to expedite approvals.
The cabinet has also approved the Punjab Common Infrastructure (Regulation and Maintenance) Amendment Bill, 2026, aimed at optimizing industrial infrastructure management.
A cohesive system will be established for the management of industrial zones, including focal points, estates, and clusters.
Service charges will be merged with property taxes in municipal areas, eliminating double taxation and alleviating the financial burden on industries.
Service fees will be collected through electricity bills by the Punjab State Power Corporation Limited.
Special Purpose Vehicles (SPVs), led by industrial stakeholders, will be formed for infrastructure management, equipped with a defined governance structure and accountability mechanisms.
Under the financial framework, 90% of funds will be allocated to SPVs for maintenance, while 10% will go to the competent authority for infrastructure improvements.
The government will maintain the authority to audit and oversee SPVs and to take action against any non-compliant entities.
Arora emphasized that these reforms are designed to lessen the compliance burden, enhance transparency, and position Punjab as a competitive and investor-friendly destination for industry.
