In a significant move to support industrialists, the Punjab Cabinet, led by Chief Minister Bhagwant Singh Mann, has approved the introduction of a landmark One-Time Settlement (OTS) scheme. This initiative aims to resolve industrial disputes that have been pending for over four decades, offering long-awaited relief to businesses across the state.
The decision was taken during a Council of Ministers meeting held at the Chief Minister’s official residence. According to a spokesperson from the Chief Minister’s Office, the OTS scheme will help industrialists settle disputes related to increased land costs and overdue principal payments. This step ensures a fair and transparent resolution of long-standing issues. The scheme is expected to benefit approximately 1,145 industrialists in Punjab, enabling them to clear outstanding dues, reinvest in their businesses, and contribute to economic growth and job creation. Since these industries employ thousands of workers, the financial relief provided under the scheme will help stabilize businesses, prevent closures, and generate new employment opportunities.
The scheme applies to defaulter plot holders whose original allotments were made on or before January 1, 2020, addressing long-pending cases effectively. It covers industrial plots, sheds, and residential plots located in Industrial Focal Points developed by the Punjab State Industries Export Corporation (PSIEC). To provide substantial financial relief, the government is allowing defaulters to clear their dues with a simple interest rate of just 8% while granting a 100% waiver on penal interest.
Additionally, plot holders whose allotments were previously canceled now have the opportunity to reclaim them by paying their outstanding dues, giving businesses a fresh chance to restart and expand. By eliminating financial burdens and legal complications, the scheme will enable industries to modernize and grow. The revenue collected through the initiative will be reinvested in improving industrial infrastructure, including upgrading focal points and developing new industrial parks, further strengthening Punjab’s industrial landscape.
To ensure a seamless process, PSIEC will establish a special virtual help desk to assist industry promoters in availing themselves of the scheme. This initiative reinforces Punjab’s image as an industry-friendly state, attracting new investments and fostering a business-conducive environment. The deadline to avail of the scheme is December 31, 2025, providing ample time for defaulters to settle their outstanding dues. The move is expected to accelerate industrial growth, strengthen Punjab’s economy, and reaffirm the government’s commitment to supporting businesses and employment generation.
Cabinet Approves Policy for Surrender of Industrial Park Layout Plans
The Punjab Cabinet has also approved a policy allowing the surrender of layout plans for industrial park projects. Under this policy, promoters must clear outstanding statutory charges imposed by the Competent Authority at the time of project approval. The decision addresses the lack of an existing policy on the surrender of layouts for projects developed under the Industrial Park Policy dated June 19, 2019.
Amendment to Punjab Public Service Commission (PPSC) Regulation Act
Additionally, the Cabinet has granted approval to amend Clause 5(1) of the Punjab State Public Service Commission (Condition of Service) Regulation Act, facilitating the appointment of the commission’s chairman and members.