In a major move to support industrial growth, the Punjab Cabinet, led by CM Bhagwant Singh Mann, has approved key changes to the state’s conversion policy. These amendments will now allow industrial plots to be repurposed for uses such as hospitals, hotels, industrial parks, and other approved activities.
This important decision was made during a Cabinet meeting held at the Chief Minister’s official residence. A spokesperson from the Chief Minister’s Office shared that earlier versions of the conversion policy were introduced in 2008, 2016, and 2021. However, industrial bodies had raised objections to certain restrictive conditions in the 2021 policy. Responding to these concerns, a committee was formed to review the feedback and suggested new guidelines specifically for freehold plots. Under the revised policy, a 12.5% conversion fee based on the industrial reserve price will be charged.
Leasehold-to-Freehold Policy for Industrial Plots/Sheds
The Cabinet also cleared a new policy enabling the conversion of leasehold industrial plots and sheds—particularly those managed by PSIEC—into freehold. Previously, complex lease conditions made property transfers difficult. The new rules aim to simplify estate management, boost business convenience, reduce legal disputes, and increase state revenue.
Changes to MSE Facilitation Council Rules – 2021
Amendments were also approved for the MSE Facilitation Council Rules – 2021, under the MSME Development Act, 2006. While district-level councils are chaired by Deputy Commissioners, delays in payment recovery were observed. Now, in line with central guidelines, unpaid award amounts will be recovered as arrears of land revenue under the Punjab Land Revenue Act, 1887.
Amendments in Water Resources Department JE Rules
The Cabinet also revised the recruitment rules for Junior Engineers (Group-B) in the Water Resources Department. Previously, 15% of JE posts were reserved for departmental promotions, including 10% for roles like Junior Draftsmen and Surveyors. With the latest change, Canal Patwaris and Revenue Clerks who possess the required diploma or degree in Civil, Mechanical, or Electrical Engineering and have relevant experience will also be eligible for promotion. This move aims to bring skilled and experienced staff into the department while encouraging higher education among employees.
Merger of Directorates in Finance Department
To improve administrative functioning and reduce expenses, the Cabinet approved the merger of several directorates within the Finance Department. The Directorates of Small Savings, Banking & Finance, and Lotteries will now operate as a single body: Directorate of Small Savings, Banking, and Lotteries. Similarly, DPED and DFREI will be unified as the Directorate of Public Enterprises and Financial Resources. Additionally, the Directorates of Treasury & Accounts, Pensions, and NPS will be consolidated into the Directorate of Treasury & Accounts, Pension, and NPS. This restructuring is estimated to save the state nearly ₹2.64 crore annually.
Creation of Posts for State SNA Treasury in Chandigarh
To operationalize the State SNA Treasury in Chandigarh—required for handling Centrally Sponsored Schemes through the SNA SPARSH system—the Cabinet sanctioned the creation of nine new posts. These include one District Treasury Officer, one Treasury Officer, two Senior Assistants, four Clerks, and one Peon, aligning with Government of India guidelines.